Exhibit 10.21
CONSENTANDOMNIBUSAMENDMENT
ThisCONSENTANDOMNIBUSAMENDMENT(the“Amendment”),datedasofJune 13, 2025, is executed by Natixis, New York Branch, in its capacity as the administrative agent for the Lenders (as defined below) (together with its successors, designees and assigns in such capacity, “Administrative Agent”), Natixis, New York Branch, in its capacity as the collateral agentfortheSecuredParties(togetherwithitssuccessors,designeesandassignsinsuchcapacity, “Collateral Agent”), U.S. Bank National Association, a national banking association, as the securities intermediary (in such capacity, the “Depositary”), MN8 DevCo 3 LLC, a Delaware limited liability company (the “Devco Borrower”), MN8 Bleeker LLC, a Delaware limited liability company (the “Opco Borrower”, and together with the Devco Borrower, the “Borrowers”), American Beech Solar LLC, a North Carolina limited liability company (the “American Beech Project Company”), Bluebird Solar LLC, a Kentucky limited liability company (the “Bluebird Project Company”), Bluebird Solar Investments LLC, a Kentucky limited liability company (“Bluebird Solar Investments”), Prairie Solar Holdings LLC, a Delawarelimitedliabilitycompany(“PrairieSolarHoldings”),PrairieSolar1,LLC,aDelaware limitedliabilitycompany(the“PrairieProjectCompany”),MN8FMGClassBLLC,aDelaware limited liability company (the “Class B Member (Bluebird)”), MN8 FMG LLC, a Delaware limited liability company (the “HoldCo (Bluebird)” and collectively with the Borrowers, American Beech Project Company, Bluebird Project Company, Bluebird Solar Investments, Prairie Solar Holdings, Prairie Project Company and Class B Member (Bluebird), the “Borrower Entities”),andtheLenderspartyhereto.Capitalizedtermsusedbutnototherwisedefinedherein shall have the meanings ascribed to such terms in the Credit Agreement (as defined below).
RECITALS
A.WHEREAS,theBorrowershaveenteredintothatcertainCreditAgreement,dated asofDecember31,2024,asamendedbythatcertainFirstAmendmenttoCreditAgreement,dated asofMay6,2025andthatcertainSecondAmendmenttoCreditAgreement,datedJune12,2025 (the “Existing Credit Agreement”), with the financial institutions from time to time party thereto as lenders (the “Lenders”) and as issuers of letters of credit, Administrative Agent, Collateral Agent, and the other agents and persons from time to time party thereto.
B.WHEREAS,theBorrowerEntitieshaveenteredintothatcertainGuaranty,Pledge and Security Agreement (the “Existing Security Agreement”), dated as of December 31, 2024, with the Collateral Agentand the other persons from time to time party thereto.
C.WHEREAS, certain Borrower Entities have entered into that certain Depositary Agreement (the “Existing Depositary Agreement”), dated as of January 22, 2025, with the Collateral Agent, the Administrative Agent and the Depositary.
D.WHEREAS, the applicable Project Group Members wish to enter into (or cause theirAffiliatestoenterinto)(i)thatcertainDevelopmentandPurchaseAgreementbyandbetween HoldCo (Bluebird) and Devco Borrower, substantially in the form attached hereto as Exhibit A(the “Development and Purchase Agreement”), (ii) that certain Amended and Restated Limited LiabilityCompanyAgreementofHoldCo(Bluebird)byandbetweenClassBMember(Bluebird)
andAffiliatedFMInsuranceCompany,aRhodeIslandinsurancecompany(the“TaxEquity Investor”), substantially in the form attached hereto as Exhibit B(the “LLCA”), (iii) that certain GuarantybytheSponsorinfavoroftheTaxEquityInvestorandHoldCo(Bluebird),substantially intheformattachedheretoasExhibitC(the“SponsorGuaranty”),and(iv)thatcertainInterparty Agreement (Tax Equity Investor) by and among the Tax Equity Investor, the Administrative Agent, the Collateral Agent, the Opco Borrower, the Bluebird Project Company, the Class B Member(Bluebird)andtheHoldCo(Bluebird),substantiallyintheformattachedheretoasExhibitD(the“InterpartyAgreement”andtogetherwiththeDevelopmentandPurchaseAgreement,the LLCA and the Sponsor Guaranty, the “Bluebird Tax Equity Documents”).
E.WHEREAS,MN8EnergyLLC(the“Sponsor”)hasenteredintothatcertainEquity Contribution Agreement with the Administrative Agent and Collateral Agent (the “Equity Contribution Agreement”).
F.WHEREAS, in connection with the execution of the Bluebird Tax Equity Documents, the Borrowers wish to amend certain provisions of the Credit Agreement.
G.WHEREAS,pursuanttoSection7.24andSection8.18oftheCreditAgreementthe consentofallLendersisrequiredfortheapplicableProjectGroupMemberstoenterintotheTax Equity Documents.
H.WHEREAS, subject to certain exceptions, Section 12.20 of the Credit Agreement permits any provision of the Credit Agreement to be amended or waived if such amendment or waiver is in writing and signed by the Borrower and the Required Lenders.
I.WHEREAS, Section 7.02 of the Security Agreement permits any provision of the Security Agreement to be amended if such amendment is in writing and signed by the Borrower Entities and the Collateral Agent.
J.WHEREAS,Section8.4oftheDepositaryAgreementpermitsanyprovisionofthe Depositary Agreement to be amended if such amendment is in writing and signed by the Borrowers, the Depositary, the Administrative Agent and the Collateral Agent (acting at the direction of the Administrative Agent).
K.WHEREAS, the Borrowers request that (i) the Lenders consent to the execution anddeliverybythepartiestheretooftheTaxEquityDocumentsontheAmendmentEffectiveDate and (ii) the Lenders, the Issuing Banks, the Administrative Agent and the Collateral Agent agree to amend the Credit Agreementand the Security Agreement as set forth below.
L.WHEREAS,theundersignedLendersconstitutingallLendershaveagreedtosuch consents and amendments to the Credit Agreement and the Security Agreement, subject to the terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows:
CONSENTANDAMENDMENT
1.Consent and Agreement.
(a)Effective as of the Amendment Effective Date, the undersigned Lenders (constituting all Lenders) consent to the applicable Project Group Members (and their Affiliates) enteringintotheBluebirdTaxEquityDocuments,and(ii)approvetheupdatedBaseCaseModel.
(b)Effective as of the Amendment Effective Date, the Borrowers and the undersignedLenders(constitutingallLenders)agreethat(i)upontheexecutionoftheTaxEquity Documents, (x) the Tax Equity Effective Date under the Credit Agreement has occurred with respect to the Bluebird Project, (y) without limitation of the definition of Tax Equity Documents, the Bluebird Tax Equity Documents shall constitute Tax Equity Documents with respect to the BluebirdProjectand(z)theMaximumAmount(Bluebird)(asdefinedintheEquityContribution Agreement)hasbeenreducedto$0and(ii)theUpdatedBaseCaseModelshallconstitutetheBase Case Model.
2.Amendment.EffectiveasoftheAmendmentEffectiveDate,theBorrowerEntities, the Administrative Agent, the Collateral Agent, the Issuing Banks, the Depositary (solely with respecttoSection2(e)below)andtheundersignedLendersconstitutingallLendersherebyagree as follows:
(a)The Existing Credit Agreement is amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlinedtext(indicatedtextuallyinthesamemannerasthefollowingexample:double-underlinedtext)assetforthinthepagesoftheCreditAgreementattachedasExhibitEhereto(the ExistingCreditAgreement,assoamendedandasmaybefurtheramended,amendedandrestated, modified or supplemented from time to time, the “Credit Agreement”).
(b)Exhibit F-2A (Form of Borrowing Date Certificate) to the Existing Credit Agreement is hereby amended and restated in its entirety as set forth in Exhibit Fhereto.
(c)Schedule6.1(d)(ConsentstoCollateralAssignment)totheExistingCredit Agreement is hereby amended and restated in its entirety as set forth in Exhibit Ghereto.
(d)The Existing Security Agreement is amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlinedtext(indicatedtextuallyinthesamemannerasthefollowingexample:double-underlined text) as set forth in the pages of the Security Agreement attached as Exhibit Hhereto (the Existing Security Agreement, as so amended and as may be further amended, amended and restated, modified or supplemented from time to time, the “Security Agreement”).
(e)The Existing Depositary Agreement is amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlinedtext(indicatedtextuallyinthesamemannerasthefollowingexample:double-underlinedtext)assetforthinthepagesoftheDepositaryAgreementattachedasExhibitIhereto (theExistingDepositaryAgreement,assoamendedandasmaybefurtheramended,amendedand restated, modified or supplemented from time to time, the “Depositary Agreement”).
3.RepresentationsandWarranties.TheBorrowersandGrantorsherebyrepresentand warrant that:
(a)NoDefaultorEventofDefaulthasoccurredandiscontinuingasofthedate hereof or would result from the execution, delivery of performance of the Amendment.
(b)Each representation and warranty set forth in Article 5 of the Credit AgreementandinArticleIIIoftheSecurityAgreementistrueandcorrectinallmaterialrespects as of the Amendment Effective Date (or, if stated to have been made on or as of an earlier date, were true and correct in all material respects on or as of such earlier date); provided that, to the extent that any such representations and warranties are qualified by materiality, such representations and warranties are true and correct in all respects on and as of the Amendment EffectiveDate(or,ifstatedtohavebeenmadeonorasofanearlierdate,weretrueandcorrectin all respects on or as of such earlier date).
(c)Each Borrower Entity is duly organized and validly existing, has all requisitecorporate,limitedliabilitycompanyorpartnership(asapplicable)powerandauthorityto execute,deliverandperformthisAmendment,theCreditAgreementandtheSecurityAgreement. Each Borrower Entity is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
(d)EachofthisAmendment,theCreditAgreementandtheSecurityAgreement (a)has been duly authorized, executed and delivered by each Borrower Entity; and (b)when executed and delivered by each Borrower Entity and each of the other parties thereto will be the legal, valid and binding obligation of such Borrower Entity, enforceable against such Borrower Entityinaccordancewithitsterms,exceptastheenforceabilitythereofmaybelimitedby (i)applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii)general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
(e)The execution, delivery and performance by each Borrower Entity of each of this Amendment, the Credit Agreement and the Security Agreement do not and, to the Knowledge of such Borrower Entity, will not (a)violate any Applicable Law or Governmental Approval in any material respect, (b)violate any provision of the Organizational Documents of such Borrower Entity, (c)violate or result in a material default under any material Project Document or material indenture, agreement or other instrument binding upon such Borrower Entity or such Borrower Entity’s assets, or give rise to a right thereunder to require any material payment to be made by such Borrower Entity or (d)except for the Liens created pursuant to the
CreditDocuments,resultinthecreationorimpositionofanyLienonanyassetofsuchBorrower Entity.
4.Effectiveness.This Amendment shall be effective on the date (the “Amendment Effective Date”) on which each of the following conditions shall have been satisfied to the satisfaction of the Administrative Agent and all the Lenders:
(a)Receipt by the Administrative Agent of an executed counterpart of this AmendmentfromeachoftheBorrowers,allLenders,theAdministrativeAgentandtheCollateral Agent (which may include a copy transmitted by facsimile or PDF or other electronic method).
(b)Delivery to the Administrative Agent of copies of certified true, complete and correct executed copies of the Tax Equity Documents substantially in the applicable forms attachedheretoasExhibitA,ExhibitB,ExhibitCandExhibitD,allofwhichshallbeinfullforce and effect on the Amendment Effective Date, as certified by the Borrowers.
(c)Each of the Effective Date (under and as defined in the Development and Purchase Agreement) and the Effective Date (under and as defined in the LLCA) shall have occurred, as certified by the Borrowers.
(d)Delivery to the Administrative Agent of an officer’s certificate from each Borrower, the Bluebird Project Company, the Class B Member (Bluebird) and the HoldCo (Bluebird),datedasoftheAmendmentEffectiveDate,certifyingasto(A)eachentity’scertificate of good standing in its state of incorporation or formation, dated as of a recent date, (B) each entity’s certificate of formation and operating agreement as then in effect and (C) a certificate of another responsible officer as to the incumbency and specimen signature of the natural persons authorized to execute and deliver each Tax Equity Document to which such entity is a party and, with respect to the Borrowers, this Amendment.
(e)Delivery to the Administrative Agent of a certificate of status, good standing or equivalent, as applicable, for the jurisdiction of formation of each Borrower, the Bluebird Project Company, the Class B Member (Bluebird) and the HoldCo (Bluebird) as of the Amendment Effective Date.
(f)Delivery to the Administrative Agent of opinions, in form and substance reasonably satisfactory to the Administrative Agent and all Lenders and dated as of the Amendment Effective Date, of: (i) Akin Gump Strauss Hauer & Feld LLP, special counsel to the Tax Equity Investor, addressing customary enforceability matters with respect to the Interparty Agreement and (ii) Morris James LLP, a Delaware counsel to the Loan Parties, addressing customary enforceability matters with respect to the LLCA.
(g)Delivery to the Administrative Agent of the Appraisal (as defined in the Development and Purchase Agreement) in form and substance reasonably acceptable to the Administrative Agent and all Lenders.
(h)DeliverytotheAdministrativeAgentoftheTitlePolicyandthePreliminary Survey (each as defined in the Development and Purchase Agreement) in form and substance reasonably acceptable to the Administrative Agent and all Lenders.
(i)Delivery to the Administrative Agent of an updated Base Case Model (the “UpdatedBaseCaseModel”),informandsubstancereasonablyacceptabletotheAdministrative Agent and all Lenders.
(j)Delivery to the Collateral Agent of the original physical membership interest certificates representing (i) all issued and outstanding “Class B” membership interests in theHoldCo(Bluebird)heldbytheClassBMember(Bluebird)and(ii)allissuedandoutstanding membership interests in the Bluebird Project Company held by the HoldCo (Bluebird).
(k)Paymentofallfees,costsandotherexpenses(includingallreasonablyout-of-pocketcosts,feesandexpenses(includinglegalexpenses))andallotheramountsthendueand payable by the Borrowers pursuant to the Credit Agreement.
(l)TherepresentationsandwarrantiessetforthinSection3aretrueandcorrect in all material respects as of the Amendment Effective Date; provided that, to the extent that any such representations and warranties are qualified by materiality, such representations and warranties are true and correct in all respects on and as of the Amendment Effective Date.
(m)NoDefaultorEventofDefaulthasoccurredandiscontinuingasofthedate hereof or would result from the execution, deliver and performance of this Amendment.
5.Post-Amendment Effective Date Covenant. The Borrowers and Grantors hereby covenant to, within three (3) days after the Amendment Effective Date, deliver to the Administrative Agent a certificate of status, good standing or equivalent, as applicable, for the jurisdiction of formation of the Tax Equity Investor.
6.Reaffirmation of Security. Each Loan Party party hereto hereby (a) acknowledges and agrees that each of the Credit Documents to which it is a party or otherwise bound shall continueinfullforceandeffectandthatallofitspaymentobligations,guarantees,pledges,grants of security interests and other obligations, as applicable, under and subject to the terms of such Credit Documents shall be valid and enforceable and shall not be impaired or limited by the executionoreffectivenessofthisAmendmentoranyofthetransactionscontemplatedherebyand (b)confirmsthesecurityinterestsintheCollateralgrantedbyitpursuanttotheapplicableSecurity Documents in favor of the Collateral Agent for the benefit of the Secured Parties pursuant to the Security Documents.
7.CreditDocument.ThisAmendmentconstitutesa“CreditDocument”forpurposes of the Credit Agreement. From and after the Amendment Effective Date, all references to the Credit Agreement in the Credit Documents shall be deemed to refer to the Credit Agreement as amendedbythisAmendment.FromandaftertheAmendmentEffectiveDate,allreferencestothe Security Agreement in the Credit Documents shall be deemed to refer to the Security Agreement as amended by this Amendment.
8.Governing Law.This Amendment, and the rights and duties of the parties hereto, shall be construed and governed in accordance with the laws of the State of New York.
9.Miscellaneous.Sections 12.27 (Governing Law), Sections 12.28 (Severability of Provisions), 12.35 (Limitation on Liability), 12.31 (Submission to Jurisdiction; Waiver of Jury Trial), 12.33 (Confidentiality) and 1.2 (Interpretation) of the Credit Agreement are hereby incorporated herein by reference, mutatis mutandis.
10.Headings.AllheadingsinthisAmendmentareincludedonlyforconvenienceand easeofreferenceandshallnotbeconsideredintheconstructionandinterpretationofanyprovision hereof.
11.Binding Nature and Effect.This Amendment shall be binding upon and inure to the benefit of each party hereto and their respective successors and permitted assigns.
12.Counterparts.ThisAmendmentmaybeexecutedinmultiplecounterparts,eachof which shall be deemed an original for all purposes, but all of which together shall constitute one and the same instrument.
13.Electronic Execution.This Amendment shall be valid, binding, and enforceable against a party only when executed and delivered by an authorized individual on behalf of the party by means of (i) any electronic signature permitted by the federal Electronic Signatures in GlobalandNationalCommerceAct,stateenactmentsoftheUniformElectronicTransactionsAct, and/or any other relevant electronic signatures law, including relevant provisions of the UCC (collectively, “Signature Law”); (ii) an original manual signature; or (iii) a faxed, scanned, or photocopied manual signature.Each electronic signature or faxed, scanned, or photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature.Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature,orotherelectronicsignature,ofanypartyandshallhavenodutytoinvestigate,confirm or otherwise verify the validity or authenticity thereof.For avoidance of doubt, original manual signaturesshallbeusedforexecutionorindorsementofwritingswhenrequiredundertheUCCor other Signature Law due to the character or intended character of the writings.
14.No Modification; No Other Matters.Except as expressly provided for herein, the terms and conditions of the Operative Documents shall continue unchanged and shall remain in fullforceandeffect.Theconsentandamendmentgrantedhereinshallapplysolelytothematters setforthhereinandtotheextentexpresslysetforthhereinandsuchconsentandamendmentshall not be deemed or construed as an amendment, waiver or consent of any other matters, nor shall such consent and amendment apply to any other matters.Except as expressly provided herein, nothing herein shall be construed as or deemed to be a waiver or consent by the Administrative Agent or any Lender of any past, present or future breach or non-compliance with any terms or provisions contained in any Credit Document, and nothing herein shall abrogate, prejudice, diminish or otherwise affect any powers, rights, remedies or obligations of any Person arising before the date of this Amendment.
15.DirectiontoAdministrativeAgent.EachoftheundersignedLendersherebydirects the Administrative Agent to, on the Amendment Effective Date, execute this Amendment.The Administrative Agent shall have all of the rights, privileges and immunities afforded to it as Administrative Agent under the Credit Agreement.
16.Direction to the Collateral Agent.Each of the undersigned Lenders and the Administrative Agent hereby directs the Collateral Agent to, on the Amendment Effective Date, executethisAmendmentandtheInterpartyAgreement.TheCollateralAgentshallhaveallofthe rights, privileges and immunities afforded to it as Collateral Agent under the Credit Agreement.
[SIGNATUREPAGESTOFOLLOW]
INWITNESSWHEREOF,theundersigned,bytheir officersthereuntodulyauthorized, have duly executed this Amendment as of the date first written above.
| MN8 DEVCO 3 LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
| MN8 BLEEKER LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
| AMERICAN BEECH SOLAR LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
| BLUEBIRD SOLAR LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
| BLUEBIRD SOLAR INVESTMENTS LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| PRAIRIE SOLAR HOLDINGS LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
| PRAIRIE SOLAR 1 LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
| MN8 FMG CLASS B LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory | ||||||||
| MN8 FMG LLC, | ||||||||
| By: | /s/ David Callen | |||||||
| Name: David Callen | ||||||||
| Title: Authorized Signatory |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| NATIXIS,NEWYORKBRANCH,asAdministrativeAgent | |||||||||||
| By: | /s/ Daniel Fahey | ||||||||||
| Name: | Daniel Fahey | ||||||||||
| Title: | Director | ||||||||||
| By: | /s/ Lisa Wong | ||||||||||
| Name: | Lisa Wong | ||||||||||
| Title: | Director |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| NATIXIS,NEWYORKBRANCH,asCollateralAgent | |||||||||||
| By: | /s/ Daniel Fahey | ||||||||||
| Name: | Daniel Fahey | ||||||||||
| Title: | Director | ||||||||||
| By: | /s/ Lisa Wong | ||||||||||
| Name: | Lisa Wong | ||||||||||
| Title: | Director |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| U.S.BANKNATIONAL ASSOCIATION,asthe Depositary | |||||||||||
| By: | /s/ Anjum Sarwar | ||||||||||
| Name: | Anjum Sarwar | ||||||||||
| Title: | VP |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| NATIXIS,NEWYORKBRANCH,asa Lender | |||||||||||
| By: | /s/ Bhuvan Jain | ||||||||||
| Name: | Bhuvan Jain | ||||||||||
| Title: | Executive Director | ||||||||||
| By: | /s/ Arlind Aliaj | ||||||||||
| Name: | Arlind Aliaj | ||||||||||
| Title: | Vice President |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| HSBC BANK USA N.A.,asa Lender | |||||||||||
| By: | /s/ Karun Chopra | ||||||||||
| Name: | Karun Chopra: 23341 | ||||||||||
| Title: | Director, HSBC Infrastructure Finance |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| SOCIETE GENERALE,asa Lender | |||||||||||
| By: | /s/ Stephania Vasilieva | ||||||||||
| Name: | Stephania Vasilieva | ||||||||||
| Title: | Vice-President |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
| ZIONS BANCORPORATION,asa Lender | |||||||||||
| By: | /s/ Jack Scanlon | ||||||||||
| Name: Jack Scanlon | |||||||||||
| Title: Authorized Signatory |
SIGNATURE PAGE TO MN8 CONSENT AND OMNIBUS AMENDMENT TO CREDIT AGREEMENT
EXHIBIT A
DevelopmentandPurchase Agreement
DEVELOPMENTANDPURCHASEAGREEMENT
by and between
MN8FMGLLC,
aDelawarelimitedliabilitycompany
and
MN8DEVCO3LLC,
aDelawarelimitedliabilitycompany
Dated as of June 13, 2025
DPA
MN8 FMG LLC
TABLEOFCONTENTS
| Page | |||||||||||
| ARTICLE 1 | |||||||||||
| DEFINED TERMS | 1 | ||||||||||
| 1.1 | Defined Terms. | 1 | |||||||||
| 1.2 | Construction. | 14 | |||||||||
| 1.3 | Conditions for Effectiveness | 15 | |||||||||
| ARTICLE 2 | |||||||||||
| PURCHASE OF PROJECT | 19 | ||||||||||
| 2.1 | Purchase of the Project Company. | 19 | |||||||||
| 2.2 | Completion of Project. | 20 | |||||||||
| 2.3 | Determination and Payment of Project Purchase Price | 21 | |||||||||
| 2.4 | Conditions Precedent to the Obligations of Purchaser – Purchase Date | 22 | |||||||||
| 2.5 | Conditions Precedent to the Obligations of Purchaser – Final Funding Payment Date | 28 | |||||||||
| 2.6 | Conditions Precedent to the Obligations of Seller | 34 | |||||||||
| ARTICLE 3 | |||||||||||
| REPRESENTATIONS, WARRANTIES AND COVENANTS | 34 | ||||||||||
| 3.1 | Representations, Warranties and Covenants of Seller | 34 | |||||||||
| 3.2 | Representations and Warranties of Purchaser | 44 | |||||||||
| 3.3 | No Other Seller Representations. | 45 | |||||||||
| 3.4 | Installation; Defects Warranty. | 45 | |||||||||
| 3.5 | Insurance | 46 | |||||||||
| 3.6 | Reporting. | 46 | |||||||||
| ARTICLE 4 | |||||||||||
| TERMINATION | 46 | ||||||||||
| 4.1 | Termination. | 46 | |||||||||
| 4.2 | Procedure and Effect of Termination. | 47 | |||||||||
| 4.3 | Indemnification by Seller | 47 | |||||||||
| 4.4 | Indemnification by Purchaser | 50 | |||||||||
| 4.5 | No Consequential Damages | 50 | |||||||||
| 4.6 | Indemnification Procedures. | 50 | |||||||||
DPA
MN8 FMG LLC
| ARTICLE 5 | |||||||||||
| SUBMISSION TO JURISDICTION | 51 | ||||||||||
| ARTICLE 6 | |||||||||||
| GENERAL PROVISIONS | 51 | ||||||||||
| 6.1 | Exhibits and Schedules. | 51 | |||||||||
| 6.2 | Amendment, Modification and Waiver | 52 | |||||||||
| 6.3 | Severability. | 52 | |||||||||
| 6.4 | Expenses. | 52 | |||||||||
| 6.5 | Parties in Interest | 52 | |||||||||
| 6.6 | Notices. | 52 | |||||||||
| 6.7 | Counterparts | 54 | |||||||||
| 6.8 | Entire Agreement | 54 | |||||||||
| 6.9 | Governing Law | 54 | |||||||||
| 6.10 | Public Announcements. | 54 | |||||||||
| 6.11 | Assignment. | 55 | |||||||||
| 6.12 | Relationship of Parties. | 55 | |||||||||
| 6.13 | Successors and Assigns. | 55 | |||||||||
| 6.14 | Access | 55 | |||||||||
| 6.15 | Joint Effort | 55 |
| Schedules: | |||||
| Schedule 1 | Project | ||||
| Schedule 2 | Form of Payment Request | ||||
| Schedule 3 | Form of Closing Notice and Certificate | ||||
| Schedule 3.1(j) | Permits | ||||
| Schedule 4 | Form of Completion Certificate | ||||
| Schedule 5 | Form of Assignment, Assumption and Transfer Agreement | ||||
| Schedule 6 | Project Documents | ||||
| Schedule 7 | [Reserved] | ||||
| Schedule 8 | Insurance Requirements | ||||
| Schedule 9 | Seller’s Knowledge Individuals | ||||
| Schedule 10 | [Reserved] | ||||
| Schedule 11 | Affiliate Transactions | ||||
| Schedule 12 | Offtake Agreement Defaults | ||||
| Schedule 13 | Form of Final Funding Payment Date Certificate | ||||
| Schedule 14 | Project Company Credit Support | ||||
iii
| Exhibits: | |||||
| Exhibit A | Form of Landowner Estoppel | ||||
| Exhibit B | Form of PPA Estoppel | ||||
| Exhibit C | Form of EPC Estoppel | ||||
| Exhibit D | Form of O&M Estoppel | ||||
| Exhibit E | Form of Asset Manager Estoppel | ||||
| Exhibit F | Form of Module Supplier Estoppel | ||||
| Exhibit G | Form of Substation EPC Estoppel | ||||
| Exhibit H | [Reserved] | ||||
| Exhibit I | Form of Energy Management Agreement Estoppel | ||||
| Exhibit J | Form of Independent Engineer Certificate – Purchase Date | ||||
| Exhibit K | Form of Independent Engineer Certificate – Final Funding Payment Date | ||||
| Exhibit L | Form of Start of Construction Certificate | ||||
| Exhibit M | Form of Title Policy Pro Forma | ||||
| Exhibit N-1 | Forms of IRB Assignments | ||||
| Exhibit N-2 | Form of IRB Bill of Sale | ||||
| Exhibit N-3 | Form of IRB Deed | ||||
| Exhibit N-4 | Form of IRB Lease | ||||
| Exhibit N-5 | Form of IRB PILOT Agreement | ||||
| Exhibit N-6 | Form of IRB Purchase Agreement |
iv
DEVELOPMENTANDPURCHASEAGREEMENT
ThisDEVELOPMENTANDPURCHASEAGREEMENTismadeandenteredintoasof June 13, 2025, by and between MN8 DevCo 3 LLC, a Delaware limited liability company (the “Seller”), and MN8 FMG LLC, a Delaware limited liability company (the “Purchaser”). The use of“Party”hereinmeanseitherSellerorPurchaser,and“Parties”meansbothSellerandPurchaser.
RECITALS
1.Sellerisinthebusinessofdevelopingsolarenergy generatingprojects.
2.Seller and its Affiliates are experienced in all aspects of developing solar energy generating projects, including the procurement of equipment and services for the design, engineering, installation, commissioning, construction and testing of utility-scale solar power plants.
3.Seller owns one hundred percent (100%) of the Project Company, and the Project Company owns one such solar power plant.
4.PurchaserdesiresthatSellerselltheProjectCompanytoPurchaser,andSeller desires to sell the Project Company to Purchaser.
5.In order to facilitate such purchase, the Parties wish to enter into this Agreement. NOW,THEREFORE,inconsiderationoftherespectiverepresentations,warranties,
covenants,agreementsandconditionshereinaftersetforth,andothergoodandvaluable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
ARTICLE 1
DEFINEDTERMS
1.1DefinedTerms.
Capitalized terms used herein and not otherwise defined herein shall have the respective meanings assigned to such terms in this Section 1.1of the LLC Agreement. As used herein, the following terms have the following meanings:
“Affiliate”means,withrespect toanyPerson, aPersonthat,directlyorindirectlythrough oneormoreintermediaries,Controls,isControlledbyorisundercommonControlwiththePerson specified;provided,however,thatPurchasershallnotbeconsideredtobeanAffiliateofSellerfor purposes of this Agreement.
“Agreement” means this Development and Purchase Agreement, together with all schedules and exhibits hereto, as amended, amended and restated, supplemented or otherwise modified from time to time.
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“Anti-Money Laundering Laws” means (a) the Uniting and Strengthening America by ProvidingAppropriateToolsRequiredtoInterceptandObstructTerrorism (USAPATRIOT)Act of 2001 and the Bank Secrecy Act; (b) Canadian laws related to money laundering, terrorism financing,oranyfinancialrecord-keeping,andreportingrequirementsrelatedthereto;and(c)any other Applicable Laws in any jurisdiction in which the Sponsor Party, the Project Company or theirAffiliatesarelocatedordoingbusinessthatrelatedtomoneylaundering,terrorismfinancing, or any financial record-keeping, and reporting requirements related thereto.
“Applicable Laws” means all applicable laws of any Governmental Authority, including, without limitation, laws relating to consumer leasing and protection and any ordinances, judgments, decrees, injunctions, writs and orders or like actions of any Governmental Authority and constitutions, treaties, codes, rules and regulations of any Governmental Authority.
“Applicable Model” means, prior to the Purchase Date, the Base Case Model, and thereaftertheBaseCaseModelasupdatedpursuanttoSection2.4(p)(ii),Section2.4(x),orSection2.5(l)(ii)of this Agreement or Section 4.1(b) or Section 6.1(b)(iii) of the LLC Agreement, or the True-Up Base Case Model delivered pursuant to Section 2.2(e)of this Agreement, as applicable.
“Appraisal” means an appraisal from Appraiser, in form and substance reasonably satisfactorytoInvestorandClassBMembers,fortheProjectshowingthefairmarketvalueofthe System, the System’s economic useful life and other customary conclusions, including a cost segregation analysis with respect to such System.
“Appraiser” means Marshall & Stevens Incorporated (to the extent engaged by Investor) oranother nationally recognized third-party appraiserthat (i) is qualified toappraise independent electric generating businesses, and (ii) reasonably acceptable to and engaged by Investor.
“As-Built ALTA Survey” means a survey for the Project site, substantially in the same formasthePreliminarySurvey,however,showingallfinalas-builtlocationsoftheimprovements comprising the Project, and in form and substance reasonably satisfactory to Purchaser, Investor and the Title Company.
“AssetManagementAgreement”meansthatcertainAssetManagementAgreementbyand amongAssetManager,PurchaserandtheProjectCompanytobeenteredintoafterthedatehereof but prior to Final Funding Payment Date.
“AssetManager”meansGSRPServicesLLC,Delawarelimitedliabilitycompany,orany successor thereto.
“Assets” means, with respect to any Person, all right, title and interest of such Person in land, properties, buildings, improvements, fixtures, foundations, assets and rights of any kind, whether tangible or intangible, real, personal or mixed, including contracts, equipment, systems, booksandrecords,proprietaryrights,intellectualproperty,Permits,rightsunderorpursuanttoall warranties, representations and guarantees, cash, accounts receivable, deposits and prepaid expenses.
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“Assignment,AssumptionandTransferAgreement”isdefinedinSection2.3(b)(2).
“BaseCaseModel”isdefinedin theLLC Agreement.
“BenefitPlan”meansanyemployeebenefitplan,asthattermisdefinedinSection3(3)of ERISA, or other material pension, bonus, profit sharing, stock option or other agreement or arrangement providing for employee remuneration or benefits, including a multi-employer plan, as that term is defined in Section 4001(a)(3) of ERISA.
“Books and Records” means minute books (or similar records), membership interest certificates, membership interest transfer ledgers and Charter Documents, in each case of or with respect to the Project Company.
“Business Day” means any day other than Saturday, Sunday and any other day on which banks in the State of New York are authorized to be closed.
“CapitalContribution”isdefinedintheLLCAgreement.
“ChangeinTaxLaw”means(a)anyamendmentorchangetotheCode,(b)anyamendment or change to the Treasury Regulations (including the issuance or promulgation of temporary regulations)thatappliesanewordifferentinterpretationoranalysisofanyprovisionoftheCode, any other applicable federal Tax statute, or any temporary or final Treasury Regulations promulgated thereunder, (c) any binding ruling or guidance of general applicability from the IRS or the U.S. Department of Treasury that applies, advances or articulates a new or different interpretation or analysis of any provision of the Code or any other applicable federal tax statute, and(d)anydecisionofafederalcourtthathasnotbeenreversedbyahigherfederalcourtinregard toU.S.federalincometaxlaw,ineachcaseof(a)through(d),thatwouldreasonablybeexpected tomateriallyadverselyaffectthefederalincometaxconsequencesshownor assumedintheBase CaseModel(butwithoutregardtoanyeffectontheClassAMember’scapacitytousetaxbenefits or realize actual tax savings therefrom, including as a result of a member-level limitation or imposition of any base erosion and anti-abuse tax or minimum tax).
“ChangeOrder”isdefinedinSection2.2(c).
“CharterDocuments”means,withrespecttoany Person,allformationand organizational documents and all limited liability company agreements, member agreements, charter, articles or constitutivedocumentsorsimilarcontracts relating totheownershiporgovernanceofsuchPerson.
“Circuit”hasthemeaningsetforthintheEPCContract.
“Class A Member” is defined in the LLC Agreement.
“ClassAMembershipInterest”isdefinedintheLLCAgreement.
“Class B Member” is defined in the LLC Agreement.
“ClosingDocuments”isdefinedinSection2.3(b).
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“ClosingExpenses”isdefinedintheLLCAgreement.
“ClosingNoticeandCertificate”isdefinedinSection2.3(b)(1).
“Code” means the Internal Revenue Code of1986, as amended, or any successor federal tax statute.
“Collateral Agent” is defined in the Credit Agreement.
“CommercialOperationDate”isdefinedintheOfftakeAgreement.
“CommissioningPlan”meansthatcertainCommissioningPlan,KY100Bluebird,Version 0.1, dated January 26, 2025, by EPC Contractor and noted as presented by Matt Nelson.
“Completion Certificate” means a certificate signed by an authorized officer of the Seller in substantially the form of Schedule 4.
“CompletionDeadline”meansDecember1,2025.
“Control” means, with respect to a Person, the possession, directly or indirectly, of the power to direct or cause the direction of such Person’s management or policies, whether through the ownership of voting securities, by contract or otherwise.
“CreditAgreement”isdefinedintheLLCAgreement.
“Easements”means,collectively,allagreementscreatinganeasementorsimilarservitude on real property granting the Project Company rights necessary to build and operate the Project.
“Effective Date” means the date on which this Agreement is executed and delivered by each of the Parties hereto and the conditions set forth in Section 1.3shall have been satisfied.
“Energy Community Adder” means the increase in credit rate related to energy communities described in Section 48(a)(14) of the Code.
“Energy Management Agreement” means that certain Energy Management Agreement, dated as of December 4, 2023, by and between the Project Company and Energy Manager.
“EnergyManager”meansTenaskaPowerServicesCo.
“Energy Property” is defined in Section 3.1(g)(2).
“Environmental Claim” means any suit, action, litigation, cause of action, complaint, petition, claim, audit, inquiry, written notice of violation or non-compliance, consent order, consent decree or proceeding before any Governmental Authority or arbitral body, or otherwise brought or made by a Governmental Authority or other third party (a)arising pursuant to any EnvironmentalLaw,(b)inconnectionwithanyactualorallegedviolationof,orliabilitypursuant to, any Environmental Law, (c)in connection with any Hazardous Substance, including the
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presence or Release of, or exposure to, any Hazardous Substance or (d)in connection with any actualorallegeddamage,injury,threatorharmto(i)healthorsafetyregulatedunderany EnvironmentalLaw,(ii)naturalresources,(iii)endangered,threatened,listedorprotectedspecies or habitat or (iv) the environment.
“EnvironmentalConsultant”meansCivil&EnvironmentalConsultants,Inc.,orsuchother environmental consultant approved by Investor.
“Environmental Law” means all Applicable Laws pertaining to the protection of the environment, public health and safety, human health or safety (to the extent it relates to the handlingofandexposuretoHazardousSubstances),orprotectionofnaturalresources,including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of1980(42U.S.C.§9601etseq.),theSuperfundAmendmentsandReauthorizationActof1986, the Emergency Planning and Community Right to Know Act (42 U.S.C. § 11001 et seq.), the Resource Conservation and Recovery Act of1976 (42 U.S.C. § 6901 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Federal Water Pollution Control Act (also known as the Clean Water Act) (33 U.S.C. § 1251 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f et seq.), the Endangered Species Act (16 U.S.C. § 1531 et seq.), the Migratory Bird Treaty Act (16 U.S.C. § 703 et seq.), the Bald and GoldenEagleProtectionAct(16U.S.C.§668etseq.),theOilPollutionActof1990(33U.S.C.§ 2701 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 5101 et seq.), and the Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.) to the extent that it relates to the handling of and exposure to hazardous or toxic materials or similar substances, and any similaroranalogousstateandlocalstatutesorregulationspromulgatedthereunder,anddecisional law of any Governmental Authority, as each of the foregoing may be amended or supplemented from time to time in the future, in each case to the extent applicable with respect to the property or operation to which application of the term “Environmental Law” relates.
“Environmental Report” means a Phase I Environmental Assessment, prepared in accordance with ASTM standards by the Environmental Consultant.
“EPCContract”meanstheEngineering,ProcurementandConstructionAgreement,dated August 25, 2023, by and between the Project Company and EPC Contractor, as amended by that certain Amendment No. 1 to Engineering, Procurement and Construction Agreement dated as of September 13, 2024 by and between the Project Company and EPC Contractor.
“EPCContractor”meansDEPCOMPower, Inc.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. “FairMarketValue”means,withrespecttoanyasset,thepriceatwhichtheassetwould changehandsbetweenawillingbuyerandawillingsellerasiftheassetwassoldinanarms-length transaction, neither being under any compulsion to buy or to sell, both having reasonable knowledge of the relevant facts, as determined by the Appraiser.
“FERC”meanstheFederalEnergyRegulatoryCommissionoranysuccessoragency.
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“Final Determination” means the earliest to occur of: (a)a decision, judgment, decree or otherorderbyanycourtofcompetentjurisdiction,whichdecision,judgment,decreeorotherorder has become final after all allowable appeals (other than appeals to the United States Supreme Court) by either party to the action have been exhausted or the time for filing such appeals has expired, (b)a closing agreement entered into (i) under Section7121 of the Code or any other settlementagreemententeredintoinconnectionwithanadministrativeorjudicialproceedingand (ii)with the written consent of the Seller (such consent not to be unreasonably withheld, conditionedordelayed),(c)theexpirationofthetimeforinstitutingsuitwithrespecttotheclaimed deficiency, or (d)the expiration of the time for instituting a claim for refund, or if such a claim was filed, the expiration of the time for instituting suit with respect thereto.
“Final Funding Payment” means an amount equal to the Fair Market Value of the Project asindicatedinthefinalAppraisaldeliveredpursuanttoSection2.5(w)lessanamountequaltothe sum of (A) the Funding Date Indebtedness plus (B) the Initial Funding Payment.
“FinalFundingPaymentDate”meansthedateonwhichtheFinalFundingPaymentisdue for the System as specified in the Payment Request.
“Final Funding Payment Date Certificate” means the certificate substantially in the form attached hereto as Schedule 13.
“Financing Documents” is defined in the LLC Agreement.
“Financing Parties” is defined in the LLC Agreement.
“FixedTaxAssumptions”isdefinedintheLLCAgreement.
“FPA” meanstheFederalPowerAct,as amended,and FERC’simplementingregulations thereunder.
“FundingDateIndebtedness”isdefinedinSection2.3(a).
“Funds Flow Memorandum” means the flow of funds memorandum dated as of the Purchase Date or the Final Funding Payment Date, as applicable, setting forth the amounts to be paid on or prior to such date, pursuant to Section 2.1, which memorandum shall be reasonably satisfactorytotheInvestorandshallincludetheexactamountstobepaidonorpriortosuchdate, and the Persons (and the account information related thereto) to whom such amounts are to be paid.
“GAAP”isdefinedintheLLC Agreement.
“Geotechnical Report” means, collectively (a) that certain Geotechnical Testing Report dated May 11, 2023 prepared by NOVA Engineering and Environmental, LLC for EPC Contractor, (b) that certain Report of Geotechnical Exploration dated January 2023 prepared by AmericanEngineers, Inc.,(c)thatcertainGeotechnicalEngineeringReportdated April28,2023, prepared by Terracon for Substation EPC Contractor,and (d) that certain Report of Geotechnical Exploration, dated October 2020, prepared by American Engineers Inc.
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“GoodUtilityPractice”isdefinedintheLLCAgreement.
“Government Incentive” means any pollution control allowance, carbon credit, REC or other government subsidy given to owners of solar power plants, not including the Tax Credits and MACRS Deductions.
“GovernmentalApproval”isdefinedintheLLCAgreement.
“Governmental Authority”means any foreign, federal, state, local or other governmental, regulatoryoradministrativeagency,court,commission,department,boardorothergovernmental subdivision, legislature, rulemaking board, tribunal, arbitrating body or other governmental authorityorindependentsystemoperator/regionaltransmissionorganizationalhavingjurisdiction or effective control over Seller, Purchaser or the System or the Project, including, without limitation,theKentuckyPublicServiceCommission,PJMInterconnection,L.L.C.,andtheNorth American Electric Reliability Corporation and any applicable regional entity.
“Guaranteed Commercial Operation Date” is defined in the Offtake Agreement.
“HazardousSubstances”meansanyhazardousortoxicmaterial,substanceorwaste, pollutantorcontaminantasdefinedorregulatedunderapplicableEnvironmentalLaws,including petroleum, petroleum distillates, petroleum products, natural gas, radon, asbestos or asbestos-containing materials, per- or polyfluoroalkyl substances, polychlorinated biphenyls and radioactive materials.
“Indebtedness”isdefinedintheLLCAgreement.
“IndemnifyingParty”isdefinedinSection4.6(a).
“Indemnitee” is defined in Section 4.6(a).
“IndependentAccountingFirm”isdefinedintheLLCAgreement.
“Independent Engineer” means Black & Veatch.
“Initial Capital Contribution” is defined in the LLC Agreement.
“InitialClassAFundingAmount”isdefinedintheLLCAgreement.
“InitialClassBFundingAmount”isdefinedintheLLCAgreement.
“Initial Funding Conditions Precedent” is defined in Section 2.4.
“InitialFundingPayment”meansanamountequaltothesumofthe(i)InitialClassA Funding Amount plus (ii) the Initial Class B Funding Amount.
“InsuranceConsultant”meansMandyMcNeilInternationalLimited.
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“Insurance Report” means that certain Insurance Report on Bluebird Solar, a 137 MWdc Solar PV Project, dated June 13, 2025, prepared by the Insurance Consultant.
“Interconnection Agreement” means, collectively, (a) that certain Interconnection Construction Service Agreement, dated as of January 19, 2021, by and among the Project Company,PJMInterconnection,L.L.C.,andEastKentuckyPowerCooperative,Inc.,and(b)that certain Interconnection Service Agreement, dated as of July 1, 2021, by and among the Project Company, PJM Interconnection, L.L.C., and East Kentucky Power Cooperative, Inc., each as amended by that certain Agreement to Amend among the parties dated as of June 27, 2023.
“Interparty Agreement” means that certain Interparty Agreement, dated as of June 13, 2025, by and among Affiliated FM Insurance Company, a Rhode Island insurance company (together with its successors, designees and permitted assigns), Natixis, New York Branch, in its capacityasadministrativeagentforthelenders(togetherwithitssuccessors,designeesandassigns in such capacity) and Natixis, as collateral agent for the Secured Parties (together with its successors, designees, and assigns in such capacity), MN8 Bleeker LLC, a Delaware limited liability company, Bluebird Solar LLC, a Kentucky limited liability company, MN8 FMG Class B LLC, a Delaware limited liability company, MN8 FMG LLC, a Delaware limited liability company, and MN8 DevCo 3 LLC, a Delaware limited liability company.
“Investor”isdefinedintheLLCAgreement.
“InvestorContributionCap”isdefinedintheLLCAgreement.
“IRBAssignments”means:(i)theAssignmentofOperatingContracts,Permits,Licenses, Warranties and Other Agreements; (ii)the Assignment of Lease Agreement; and (iii)the Assignment of Solar Ground Leases to be entered into substantially in the forms attached hereto as Exhibit N-1.
“IRBBillofSale”meanstheBillofSaleconveyingpersonalpropertytotheIRBIssuerin connection with the closing of the IRB Transaction, substantially in the form attached hereto as Exhibit N-2.
“IRBDeed”meanstheGeneralWarrantyDeedconveyinganyownedrealpropertytothe IRBIssuerinconnectionwiththeclosingoftheIRBTransaction,substantiallyintheformattached hereto as Exhibit N-3.
“IRBDocuments”meanstheIRBPurchaseAgreement,theIRBAssignments,theIRBBill of Sale, the IRB Deed, the IRB Lease and the IRB PILOT Agreement.
“IRBIssuer”meansCountyofHarrison,Kentucky.
“IRB Lease” means the Lease between the IRB Issuer, as landlord, and the Project Company, as tenant, of the assets transferred to the IRB Issuer in connection with the IRB Transaction, substantially in the form attached hereto as Exhibit N-4.
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“IRB PILOT Agreement” means the Payment in Lieu of Taxes Agreement between the Project Company and the IRB Issuer executed in connection with the IRB Transaction, substantially in the form attached hereto as Exhibit N-5.
“IRB Purchase Agreement” means the Bond Purchase Agreement by and among the IRB Issuer,theIRBSPV,asservicingagentandaspurchaser,andtheProjectCompany,tobeentered into in connection with the IRB Transaction, substantially in the form attached hereto as ExhibitN-6.
“IRBSPV”meansBluebirdSolarInvestmentsLLC,aKentuckylimitedliabilitycompany.
“IRB Transaction” means the issuance of the industrial revenue bonds not to exceed an aggregate principal amount of $220,000,000 as described in Ordinance 357. Series 2023, first approved by the Fiscal Court of Harrison County, Kentucky at its duly convened meeting on August22,2023,andapprovedatasecondreadingatitsdulyconvenedmeetingonSeptember12, 2023.
“IRS”meanstheInternalRevenueService.
“Leases” means, collectively, all agreements creating a leasehold estate in real property granting the Project Company rights necessary to build and operate the Project, including such agreements set forth on Schedule 6attached hereto.
“Lien” means with respect to any property of any Person, any mortgage, lien, pledge, charge, lease, easement, servitude, security interest, fiduciary or conditional assignment, sale or transfer or encumbrance of any kind in respect of such property of such Person. For purposes of thisAgreementandtheotherTransactionDocuments,aPersonshallbedeemedtoownsubjectto aLienany propertythatithasacquiredorholdssubjecttotheinterestofavendororlessorunder any conditional sale agreement, capital lease or other title retention agreement relating to such property.
“LLC Agreement” means that certain Amended and Restated Limited Liability Company Agreement of Purchaser, made and entered into as of the date hereof.
“Loss” means any claim (including Third Party Claims), demand, suit, loss, liability, damage, obligation, payment, charge, cost, fee, Tax, penalty or expense (including, without limitation,thecost and expenseof any action,suit,proceeding,assessment,judgment,settlement or compromise relating thereto and reasonable attorneys’ fees and reasonable disbursements in connection therewith).
“MACRS Deductions” means the accelerated cost recovery deductions assumed in the Base Case Model to be available to the Project Company in respect of the Project.
“Managing Member” is defined in the LLC Agreement.
“MaterialAdverseChange”isdefinedintheLLCAgreement.
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“Maximum Liability” is defined in the LLC Agreement.
“Mechanical Completion” means (i) with respect to a Circuit, “Circuit Mechanical Completion” as certified by the EPC Contractor in accordance with the EPC Contract, and “Mechanical Completion” as certified by the Substation EPC Contractor in accordance with the Substation EPC Contract.
“Member”isdefined intheLLC Agreement.
“ModuleSupplier”meansJinkoSolar(U.S.)Industries Inc.
“Module Supply Agreement” means, the Project Module Supply Agreement, dated as of May16,2023,byandbetweentheProjectCompanyandtheModuleSupplier,asamendedbythat certain First Amendment to Project Module Supply Agreement, dated as of January 17, 2024.
“MW”meansmegawatt.
“O&M Agreement” is defined in the LLC Agreement.
“O&MServiceProvider”isdefinedintheLLCAgreement.
“Offtake Agreement” means the Amended and Restated Virtual Power Purchase AgreementbetweentheProjectCompany,asseller,andtheOfftaker,asbuyer,datedOctober23, 2023.
“Offtaker”meansJ.Aron&Company,LLC.
“Ordinary Course of Business” means the ordinary conduct of business consistent with custom and practice for solar energy generating businesses in the United States (including with respect to quantity and frequency).
“Party”or“Parties”isdefinedinthePreamble.
“PaymentRequest”meansarequestforpaymentunderthisAgreementintheformattached hereto as Schedule 2.
“Performance Tests” means each and every test required to achieve “Substantial Completion” (as defined in the EPC Contract) and “Substantial Completion” (as defined in the Substation EPC Contract) of the Project.
“Permit”isdefinedinthe LLCAgreement.
“PermittedLiens”means(a)Liensfortaxesnotyetdueorthatarebeingcontestedingood faith by appropriate proceedings, to the extent adequate reserves have been made consistent with GAAP, (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, employees’, contractors’, operators’, vendors’ or other similar Liens or charges securing the payment of expensesnotyetdueandpayable(totheextentadequatereserveshavebeenmadeconsistentwith
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GAAP) that are incurred in the Ordinary Course of Business, (c) minor title imperfections, easements, rights-of-way, restrictions (including zoning restrictions), covenants, licenses, encroachments, protrusions and other similar charges or encumbrances on or with respect to real property that do not secure Indebtedness or materially interfere with the ordinary conduct of the Purchaser’sbusiness,orthedevelopmentoroperationoftheProject,(d)Liensincurredordeposits made in the Ordinary Course of Business in connection with workers’ compensation, unemployment or other social security or to secure performance of statutory obligations, surety bonds, performance bonds and other similar obligations, (e) Liens created by or pursuant to the Transaction Documents, Project Documents or Permits, (f) prior to the Final Funding Payment Date, Liens created by or pursuant to the Financing Documents, (g) Liens that are exceptions to theTitlePolicyProFormawhichhavereasonablybeenapprovedbyPurchaser(or,followingthe issuance thereof, the title insurance policy), (h) judgment Liens which do not involve immediate forfeiture of the Project and do not exceed $250,000 and for which adequate reserves have been made consistent with GAAP and which are being contested in good faith by appropriate proceedings,(i)Liensagainstdepositorsecuritiesaccountsinfavorofthebankorotherfinancial institution at which such accounts are held arising by operation of Applicable Law relating to bankers’ liens or right of set-off or similar rights and (j) any other Liens agreed to in writing by the Seller and the Purchaser.
“Person” means any individual, partnership, limited liability company, joint venture, corporation, trust, unincorporated organization or Governmental Authority.
“PIS Commissioning Activities” means each of the (i) synchronization of any portion of the Project with the power grid, (ii) closing of any circuits between any inverter and any solar modules, and (iii) activities described in Sections 5.2.3.3, 5.2.3.4, 5.2.4 or 5.2.5 of the Commissioning Plan.
“PlacedinService”isdefinedintheLLCAgreement.
“PlacedinServiceDate”meansthedatetheSystemisPlacedinService.
“Post-Closing Expenses” is defined in the LLC Agreement.
“Preliminary Survey” is defined in Section 1.3(s).
“Project”meanstheSystem,asfurtherdescribedinSchedule1,andallotherrelatedrights applicable thereto, including, without limitation, all parts and manufacturer’s warranties, and all PermitsandRealPropertyRightsnecessaryforaccessto andtheoperation oftheSystem, and,to theextentnottransferredtotheOfftaker,allrightspursuanttoanyrelatedGovernmentIncentives, consistent with the Offtake Agreement.
“ProjectCompany”meansBluebirdSolarLLC,aKentuckylimitedliabilitycompany.
“Project Document” means the Offtake Agreement, the O&M Agreement, the Asset Management Agreement, the EPC Contract, the Substation EPC Contract, the Module Supply Agreement, the IRB Documents, the Energy Management Agreement, all Real Property
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Documents, the Interconnection Agreement, any other interconnection or transmission-related agreements and any other written contract entered into after the date hereof that is listed in Schedule 6herein or is reasonably expected to have obligations, liabilities or revenues in excess of Two Hundred Fifty Thousand Dollars ($250,000) in any year.
“ProjectIndebtedness”meansalloutstandingindebtedness(includingaccruedandunpaid interest thereon) under the Financing Documents as of the Initial Funding Date.
“ProjectPurchasePrice”isdefinedinSection2.3(a).
“Proposed Change in Tax Law” means on or after the Effective Date, (a) any proposed federalincomeTaxlegislationthatis(i)passedbyeitherhouseoftheUnitedStatesCongressor (ii)reportedoutoftheHouseWaysandMeansCommitteeortheSenateFinanceCommitteeand, ineithercase,that(A)isreasonablylikelytobeenacted(takingintoaccount,forthispurpose,any publicly available information at thetimepublished, issued, disseminated,or otherwise officially sharedbyCongress,theExecutiveBranch,oranyotherrelevantGovernmentalAuthority),and (B)ifenactedwouldbeaChangeinTaxLaw,or(b)anyproposedTreasuryRegulationthatapplies anewordifferentinterpretationoranalysisofanyprovisionoftheCode,unless,inthecaseofthis clause(b),thereisnoreasonableexpectationofsuchproposedTreasuryRegulationbeingfinalized or issued.
“PUHCA” means the Public Utility Holding Company Act of 2005, as amended, and FERC’s implementing regulations thereunder.
“Purchase”meansthepurchaseoftheProjectCompanybythePurchaserpursuantto Section 2.1(a).
“PurchaseDate”meansthedatethattheInitialFundingPaymentismadebythePurchaser.
“Purchaser” is defined in the Preamble.
“PurchaserIndemnifiedParties”isdefinedinSection4.3(a).
“Real Property Documents” means each of the contracts or agreements constituting an estate or interest in any portion of the real property required to install and operate the Project, including, without limitation, the Leases, Easements and other agreements identified as Real Property Documents on Schedule 6.
“RealPropertyRights”isdefinedinSection3.1(n).
“REC” is defined in the LLC Agreement.
“RecapturePeriod”isdefinedintheLLCAgreement.
“Release”meansanyspilling,leaking,pumping,pouring,emitting,emptying,discharging, injecting,escaping,leaching,dumping,disposing,abandoningormigrating intotheenvironment.
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“Sanctioned Country” means, at any time, a country, region or territory that is itself the subjectortargetofanycomprehensiveSanctions(currently,Crimea,Cuba,Iran,NorthKoreaand Syria).
“SanctionedPerson”means,atanytime,(a)anyPersonlistedinanySanctions-relatedlist of designated Persons maintained by United States Department of Treasury Office of Foreign Assets Control, the U.S. Department of State, or any other Sanctions authority, (b) any Person located, organized or resident in a Sanctioned Country or (c) any Person owned, fifty percent (50%) or more, individually or in the aggregate, or controlled by any such Person or Persons described in the foregoing clause (a), such that such Person is subject to the same prohibitions or restrictions as set forth in clause (a).
“Sanctions” means economic or financial sanctions imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the United States DepartmentofTreasuryOfficeofForeignAssetsControlortheU.S.DepartmentofState;(b)the Canadian government; and (c) the relevant sanctions authorities in the European Union, United Kingdom and United Nations Security Council.
“Seller”isdefinedinthe Preamble.
“SellerIndemnifiedParties”isdefinedinSection 4.4.
“Seller’sKnowledge”means,withrespecttoSeller,theactualknowledge,afterreasonable inquiry, of the individuals listed on Schedule 9.
“Sponsor” is defined in the LLC Agreement.
“SponsorGuaranty”isdefinedintheLLCAgreement.
“Sponsor Member” is defined in the LLC Agreement.
“SponsorTransactionParties”isdefinedintheLLCAgreement.
“StartofConstructionCertificate”meansacertificatedeliveredbyanauthorizedofficerof Seller in the form attached hereto as Exhibit L.
“Subsidiary”isdefinedintheLLC Agreement.
“Substation”meansthe“Substation”asdefinedintheSubstationEPC Contract.
“Substation EPC Contract” means the HV Engineering, Procurement and Construction Agreement,datedasofDecember19,2023,byandbetweentheProjectCompanyandSubstation EPC Contractor.
“SubstationEPCContractor”meansRESSystem3,LLC.
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“SubdivisionApproval”meansapprovalbytheHarrisonCountyPlanningCommissionor itsPlanningDirectorof platsdepictingsubdividedleasedparcelsinaccordancewithKRS100.277.
“System” means the approximately 137 MWdc/100MWac solar project in Harrison County, Kentucky.
“TargetReturns”isdefinedintheLLCAgreement.
“Tax”or“Taxes”(andwithcorrelativemeaning“Taxable”and“Taxing”)isdefinedinthe LLC Agreement.
“TaxBenefits”isdefinedintheLLCAgreement.
“Tax Credits” is defined in the LLC Agreement.
“TCI Limit” is defined in the LLC Agreement.
“TCI Policy” is defined in the LLC Agreement.
“Tax Loss” is defined in Section 4.3(b).
“TaxReturn”isdefinedintheLLC Agreement.
“Term”meanstheperiodcommencingontheEffectiveDateandendingupontermination pursuant to ARTICLE 4.
“Third Party Claim” is defined in the LLC Agreement. “TitleCompany”meansStewartTitleGuarantyCompany.
“Title Policy” is defined in Section 1.3(s).
“TitlePolicyProForma”meansatitlepolicyproformaintheformattachedasExhibitM in respect of the Project.
“Transaction” means the transactions described in and contemplated by the Transaction Documents.
“Transaction Documents” means this Agreement, the LLC Agreement, the O&M Agreement,theAssetManagementAgreement,theInterpartyAgreement,theClosingNoticeand CertificateorothercertificatedeliveredpursuanttothisAgreement,theSponsorGuarantyandthe Assignment,AssumptionandTransferAgreementexecutedanddeliveredpursuanttothisAgreement.
“Transmission and Market Study Report” means that certain Congestion and Curtailment Assessment for Bluebird Solar Project, dated as of October 5, 2023, prepared by ICF Resources, LLC.
“TreasuryRegulations”isdefinedintheLLCAgreement.
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“True-Up Base Case Model” is defined in Section 2.2(e).
“UCC” is defined in the LLC Agreement.
“Warranty”isdefinedin Section3.4.
1.2Construction.
(a)As used in this Agreement and in any certificate or other documents made or delivered pursuant hereto or thereto, financial and accounting terms not defined in this Agreementorinanysuchcertificateorotherdocument,andfinancialandaccountingtermspartly defined in this Agreement or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them under GAAP. To the extent that the definitions of financial and accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions contained in this Agreement or in any such certificate or other document shall control.
(b)The words “hereof”, “herein”, “hereunder”, and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provisionofthisAgreement.ReferencestoaSectionorSchedulecontainedinthisAgreementare references to a Section or Schedule, as applicable, in this Agreement unless otherwise specified. The term “including” shall mean “including without limitation”.
(c)The definitions contained in this Agreement are applicable to the singular aswellasthepluralformsofsuchtermsandtothemasculineaswellastothefeminineandneuter genders of such terms.
(d)Anyagreement,instrumentorstatutedefinedorreferredtohereinorinany instrument or certificate delivered in connection herewith means such agreement, instrument or statuteasfromtimetotimeamended,amendedandrestated,supplementedorotherwisemodified and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein.
(e)AnyreferencestoaPersonarealsotoitssuccessorsandpermittedassigns.
(f)References to “days” shall mean calendar days, unless the term “Business Days”shallbeused.Unlessotherwisestated,ifanypaymentisdueonadaythatisnotaBusiness Day, such payment due date shall be extended to the next succeeding Business Day.
(g)References to documents or agreements to be “dated and released” as of a certain date shall only be released subject to the responsible party’s consent.
1.3ConditionsforEffectiveness.
The occurrence of the Effective Date is subject to the satisfaction of the conditions precedent set forth below (providedthat the execution of this Agreement by each Party and the delivery of such executed copy to each other Party evidences the satisfaction or waiver (by each
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Party)ofeachsuchcondition;provided,however,thatsuchexecutionshallnotactasawaiverof, or otherwise affect, any rights and remedies arising from any breach by any Party of its representations and warranties set forth herein or in any certificates delivered pursuant to this Agreement as of the Effective Date):
(a)(i) The Transaction Documents (other than (A) the Closing Notice and Certificate, the Completion Certificate and each officer or manager certificate to be delivered pursuant to Sections 2.4and 2.5, (B) the Assignment, Assumption and Transfer Agreement, and (C) the Interparty Agreement, in each case solely to the extent not executed as of the Effective Date),havebeenexecutedbyeachpartythereto,andareinfullforceandeffectandnodefaultor event of default has occurred and is continuing thereunder, and (ii) the Project Documents have been executed by each party thereto, and are in full force and effect and no default or event of default has occurred and is continuing thereunder;
(b)The Class B Member has paid or has caused to be paid in full all Closing Expenses of the Investor;
(c)Seller shall certify to Purchaser in a closing certificate, executed and delivered in escrow at least ten (10) Business Days prior to the Effective Date, to be dated and released as of the Effective Date (subject to Seller’s confirmation that the representations and warranties contained therein remain true and correct), that each of the representations and warranties in ARTICLE 3to be made by Seller on the Effective Date shall be true and correct of the date of execution of this Agreement;
(d)Seller has delivered to Investor and Purchaser at least ten (10) Business Days priorto theEffectiveDate, (i)the Start ofConstruction Certificate substantially in theform attached hereto as Exhibit L, which shall be executed and delivered in escrow at least ten (10) Business Days prior to the Effective Date,to be dated andreleasedas ofthe Effective Date and (ii)census data and all other factual information in its possession reasonably requested by the Investor in order for the Investor to substantiate the Project’s ability to qualify for the Energy Community Adderbased on theprojected datethat theProject will bePlaced in Service as ofthe Effective Date;
(e)Purchaserhasreceivedatleastten(10)BusinessDayspriortotheEffective Date, to be dated and executed as of the Effective Date, an insurance report prepared by the Insurance Consultant, in form and substance reasonably satisfactory to Investor (including satisfactory reliance provisions or, in the absence of reliance provisions, together with a separate relianceletteraddressedtoPurchaserandInvestorpermittingrelianceonsuchreportbyPurchaser and Investor, which reliance letter shall be executed and delivered in escrow at least ten (10) Business Days prior to the Purchase Date, to be dated and released as of the Purchase Date) and copies of insurance certificates evidencing compliance with the insurance requirements in the Transaction Documents and Project Documents;
(f)Investorhas receivedin escrow atleast ten (10) Business Dayspriortothe Effective Date, to be dated and released as of the Effective Date, an executed certificate of an authorized officer or signatory, as applicable, of Purchaser and each Sponsor Transaction Party,
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certifying that attached thereto is: (i) a certificate of good standing of such Person in its state of incorporationorformationdatedwithinfifteen(15)BusinessDayspriortotheEffectiveDate,(ii) atrueandcorrectcopyofsuchPerson’scertificateofincorporationorformationtogetherwiththe by-laws or operating agreement, as applicable, as in effect on the Effective Date (provided, that MN8 Energy LLC, a Delaware limited liability company, shall not be required to provide its operatingagreementsolongasInvestorreceivesalegalopinioninrespectofcorporatemattersof such entity in form and substance reasonably acceptable to Investor), and (iii) a certificate regardingtheincumbencyofeachofficerorsignatory(asapplicable)ofsuchPersonexecutingthe Transaction Documents to which such Person is a party, including a specimen signature of such Person;
(g)Investorhasreceivedinfinalagreedformatleastten(10)Business Days prior to the Effective Date, to be dated and executed as of the Effective Date, an opinion from(i)Holland&KnightLLP,ascounseltoSponsorandcertainofitsAffiliateswithrespectto corporatemattersandtheenforceabilityofeachoftheTransactionDocuments(otherthan(w)the LLC Agreement, (x) the Closing Notice and Certificate and any other certificate included in the definition of the Transaction Documents, (y) the Assignment, Assumption and Transfer Agreement,and(z)solelytotheextentnotexecutedasoftheEffectiveDate,anyotherTransaction Document to which a Sponsor Transaction Party is a party), (ii)Morris James LLP, as Delaware counseltoSponsorastotheenforceabilityoftheLLCAgreement,and(iii)Sturgill,Turner,Barker &MoloneyPLLCasKentuckycounsel toSponsorinrespectofstateandlocalenergyregulatory matters and federal, state and local permitting matters relating to the Project and with respect to corporatemattersconcerningtheProjectCompany,whichopinionsregardingeachof(i)-(iii)shall be in form and substance reasonably satisfactory to Investor;
(h)Purchaser has received confirmation from Investor that Investor has received a tax opinion from Akin Gump Strauss Hauer & Feld LLP, which opinion shall be in form and substance reasonably satisfactory to Investor;
(i)At least ten (10) Business Days prior to the Effective Date, Purchaser has received confirmation from Investor that Investor has received financial projections and theBase CaseModelandsuchBaseCaseModelissatisfactorytoInvestor,togetherwithacompilation letterfromthe IndependentAccountingFirm,informandsubstancereasonablyacceptabletothe Investor, and an initial operating budget for the Purchaser;
(j)Purchaser has received a confirmation from Investor that, to the extent applicable, Investor has received all documentation and other information about the Seller that Investor shall have reasonably determined is required by regulatory authorities under applicable “know your customer” and Anti-Money Laundering Laws;
(k)Investorhasreceivedasummaryoftheleaseterms(includingrentpayment amounts) for the Lease with each site owner, prepared and certified as to accuracy by Seller;
(l)Investor shall have agreed on the form of opinion to be delivered by Rock Creek Energy Group, LLP pursuant to Section 2.4(ee);
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(m)Purchaser has received confirmation from Investor that Investor has received, at least ten (10) Business Days prior to the Effective Date, the most recent audited financial statements of the Sponsor and, to the extent reasonably available, any counterparty to any Transaction Document, excluding any counterparties to any Real Property Documents;
(n)Purchaser has received confirmation from Investor that Investor has received, at least ten (10) Business Days prior to the Effective Date, a draft Appraisal (including draft cost segregation analysis) for the Project;
(o)(i)allPermitslistedonPart IofSchedule3.1(j)areinfullforceand effect, all applicable regulatory or statutory appeal periods to file an administrative or judicial appeal under the Applicable Law pursuant to which such Permit was authorized have expired, and no actionsorproceedingsarependingchallenging thelegality,validityorenforceabilityofanysuch Permitsorthatattemptstomodifyinanymaterialmannertherequirementspertainingtoanysuch Permits; (ii) no event or circumstance has occurred that could reasonably be expected to have an adverse effect on the ability of the Project Company to secure all other Permits, Governmental Approvalsandthird-partyconsentsrequiredtobuildandoperatetheProjectwithinthetimeframes setforthintheProjectDocuments;and(iii)noeventorcircumstancehasoccurredthatreasonably casts doubt on the ability of the Seller to secure all other Permits, Governmental Approvals and third-partyconsentsrequiredtoperformitsobligationsundertheTransactionDocumentstowhich it is a party;
(p)Purchaser has received confirmation from the Investor that Investor has received,atleastten(10)BusinessDayspriortotheEffectiveDate,areportfromtheIndependent Engineer,informandsubstancereasonablysatisfactorytoInvestor(includingsatisfactoryreliance provisions or, in the absence of reliance provisions, together with a separate reliance letter addressedtoPurchaserandInvestorpermittingrelianceonsuchreportbyPurchaserandInvestor), which shall be executed and delivered in escrow at least ten (10) Business Days prior to the Effective Date, to be dated and released as of the Effective Date;
(q)PurchaserhasreceivedacopyoftheEnvironmentalReportwithrespectto theProjectinformandsubstancereasonablysatisfactorytoPurchaseranddatednomorethanone hundred eighty (180) days prior to the Effective Date (including satisfactory reliance provisions or, in the absence of reliance provisions, together with a separate reliance letter addressed to Purchaser and Investor permitting reliance on such report by Purchaser and Investor, which reliance letter shall be executed and delivered in escrow at least ten (10) Business Days prior to the Effective Date, to be dated and released as of the Effective Date);
(r)Purchaser has received confirmation from Investor that Investor has received, at least ten (10) Business Days prior to the Effective Date, satisfactory copies of (i) the GeotechnicalReport,(ii)theTransmissionandMarketStudyReport,and(iii)allothercustomary environmental site reports (including, wetlands, hydrology and historical architecture and archeological investigation, and threatened and endangered species assessment) prepared with respect to the Project;
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(s)Purchaser and Investor shall have received (i) the owner’s policy of title insurance in substantially the form of the Title Policy Pro Forma (the “Title Policy”), (ii) a preliminary ALTA/NSPS Land Title Survey of the Project (A) showing each tract of land referenced in theTitlePolicy, thelocation ofall exceptions to titleshown on theTitlePolicy that are capable of being plotted (or otherwise stating that the exception is “not plottable” and the reason), and the proposed location of all Project improvements, (B) prepared by a land surveyor duly licensed and registered in the State of Kentucky, (C) including, if applicable, Table A Items 1, 2, 3, 4, 6(a), 7(a), 7(b)(1), 8, 11(a), 13, 14, 16, 17, 18 and 19, (D) prepared in accordance with the “2021 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys” jointly established and adopted by the American Land Title Association and the National Society of Professional Surveyors effective February 23, 2021, and (E) certified to Project Company, Purchaser,InvestorandtheTitleCompany,(the“PreliminarySurvey”),and(iii)iftheTitlePolicy shows a mortgagee’s lien on the Project site, Purchaser shall have received a non-disturbance agreement or similar assurance from the holder of such mortgage either in such mortgagee’s standard form or in such other form as reasonably satisfactory to the Purchaser;
(t)Satisfactory completion of diligence by the Investor (including, but not limited to the Project Documents and the financial condition and credit quality of the Sponsor);
(u)None of the Circuits has been Placed in Service and Investor has received evidence to the reasonable satisfaction of the Investor that the Project is expected to be Placed in Service before the Completion Deadline;
(v)SellershallhavemadeavailabletoPurchaserandtheInvestor,atleastten (10)BusinessDaysprior totheEffectiveDate,the following:
(1)a copy of all current and final engineering stamped design plans,structural calculations and site plans;
(2)anyconsents,approvalsandfilingsreferencedpursuantto Section3.1(d);
(3)anyPermitsreferencedpursuanttoSection3.1(j);and
(4)trueandcorrectcopiesofallProjectDocuments(includingall amendments thereto);
(w)Investor has received evidence that Sponsor Member has contributed the TCI Premium Estimate to Purchaser in accordance with Section 3.12(d) of the LLC Agreement;
(x)[Reserved];and
(y)Investorhasreceived,at leastten(10)BusinessDayspriortotheEffective Date, recent searches of the UCC filing offices for each of the jurisdictions in which UCC financing statements would be filed in respect of the membership interests of the Purchaser and the Project Company and the assets of the Project, and corresponding judgment and tax lien
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searches, in each case dated within twenty (20) Business Days prior to the Effective Date and in form and substance reasonably satisfactory to the Investor.
ARTICLE 2
PURCHASEOFPROJECT
2.1PurchaseoftheProjectCompany.
(a)Purchase. Subject to the terms and conditions hereof, Purchaser shall purchase from Seller, subject to the provisions of this ARTICLE 2, all right, title and interest of SellerinthemembershipinterestsintheProjectCompany.Theconsummationofthepurchase of theProjectCompanyand thepaymentoftheInitialFundingPaymentshall takeplacepursuantto thisAgreementonthePurchaseDate,subjecttoalloftheconditionsinSection2.4andSection2.6havingbeensatisfied.ThepaymentoftheFinalFundingPaymentshalltakeplacepursuanttothis Agreement on the Final Funding Payment Date, subject to all of the conditions in Section2.5for the Project having been satisfied.
(b)PaymentRequests;FundingPayments.TheSellershallprovideaPayment Request atleast ten(10)Business Dayspriortotheanticipated InitialFundingPaymentDateand atleastten(10)BusinessDayspriortotheanticipatedFinalFundingPaymentDate.EachPayment RequestshalllisttheProjectPurchasePriceandtheInitialFundingPaymentortheFinalFunding Payment, as applicable.
(c)Title. Subject to Section2.2, on the Purchase Date, (i) Seller, hereby sells, conveys, assigns, transfers and delivers to Purchaser all of Seller’s right, title and interest in and obligationswithrespect toonehundredpercent(100%)ofits membershipinterestsintheProject Companyand(ii)PurchaserpurchasesandPurchaserassumesallofSeller’sright,title,interestin and obligations with respect to such membership interests. Notwithstanding the foregoing, Seller shall cause the Project Company to comply in all material respects with the Project Company’s obligations under the Offtake Agreement until the Commercial Operation Date thereunder has occurred.
(d)PowerofAttorney.EffectiveasofthePurchaseDate,Purchasershallcause theProject Company to grant Sellerthe necessary authority to (i)perform such obligations under theProjectDocumentsasProjectCompany’srepresentativeand(ii)makedrawsunderthe Financing Documents to pay for project costs, as necessary.
(e)Risk of Loss. From and after the Purchase Date, as between the Seller and Purchaser, allriskofloss ordamagetotheProject acquireddirectlyfromSellershallbeborneby Purchaser; providedthat the passing of the risk of loss shall not, in any respect, excuse the Seller fromcompletingconstructionoftheProjectorperforminganyofitsobligationsundertheOfftake Agreement or the Transaction Documents or relieve Seller of its obligations to reimburse Purchaser for Losses resulting from the actions of Seller or its Affiliates.
(f)TransferofRECsand Government Incentives. Fortheavoidanceofdoubt, all Government Incentives associated with the installation, ownership, use or operation of the
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Project will remain property of the Project Company after sale of the Project Company to Purchaser, except to the extent transferred by the Project Company to Offtaker under the Offtake Agreement.
2.2CompletionofProject.
SelleroritsAffiliatesshallcompletetheconstructionoftheProjectasfollows:
(a)System Installation. Seller or its Affiliates shall design, procure the materials for and take such other steps as are required for the permitting, construction, testing, interconnecting and completion of the System in accordance with the EPC Contract and the Substation EPC Contract and shall cause the System to be Placed in Service without further compensationorreimbursementfromPurchaser,otherthanpaymentoftheProjectPurchasePrice. Sellershall causethe construction oftheSystem to beconsistent with the Offtake Agreement, all manufacturer and design specifications and warranties relating to the System, Good Utility PracticeandallApplicableLawsandPermits.ThePartiesacknowledgeandagreethattheProject Company has entered into the EPC Contract with the EPC Contractor to construct and install the System.UntilthePurchaseDate,SellershallcausetheProjectCompanytopayallamountsowed totheEPCContractorinconnectionwiththeInstallationoftheSystemonatimelybasisandshall hold Purchaser harmless against any claims asserted by such parties whether before or after the transfer of title to Purchaser.
(b)PerformanceTests.SellershallcausethePerformanceTestsfortheProject tobeperformedinaccordancewiththeEPCContract.Uponreasonablerequest,Sellershallmake available all Performance Test results to Purchaser. If the System fails to pass the Performance Tests, then Seller shall take corrective actions and repeat the Performance Tests until the System successfully completes the Performance Tests.
(c)Change Orders under EPC Contract and Substation EPC Contract. FollowingthePurchaseDateandpriortothePlacedinServiceDateoftheSystem,Sellermaynot agreetochangeordersunderoramendmentstotheEPCContractortheSubstationEPCContract, in each case relating to the size, layout or design of the System (such order, a “Change Order”). Change Orders that could reasonably be expected to materially adversely affect the Project shall requiretheapprovalofPurchaser(nottobeunreasonablywithheldordelayed).Sellershall describe the economic impact of all Change Orders.
(d)Completion Certificate. On or before submitting a Payment Request with respect to the Final Funding Payment, Seller shall deliver to Purchaser a Completion Certificate substantially in the form attached hereto as Schedule 4.
(e)True-Up Base Case Model. As soon as reasonably practicable (but in no eventlaterthanten(10) BusinessDays)followingthelaterofthedatethattheProjectisPlacedin Service and delivery of the final Appraisal pursuant to Section 2.5(q), Seller shall deliver to Purchaser a revised Base Case Model that reflects the actual Placed in Service Date and the final Project Purchase Price, in form and substance reasonably satisfactory to Investor (the “True-UpBase Case Model”).
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(f)Amendments. Seller will not amend, replace or terminate any Project Document or the organizational documents of the Project Company if such amendment, replacementorterminationwouldconstituteaMajorDecision(asdefinedintheLLCAgreement) after the Purchase Date, except with the consent of the Investor.
2.3DeterminationandPaymentofProjectPurchasePrice.
(a)Determination of Project Purchase Price. The price for the Project (the “Project Purchase Price”) shall be the Fair Market Value of the Project as indicated in the Appraisal. For tax purposes and all other purposes, the Project Purchase Price shall be paid by a combinationof(i)theassumptionoftheProjectIndebtednessand(ii)assetforthinSections2.3(b)and2.3(c), cashpayment inanamountequaltotheProjectPurchasePricelessthesumof(A)the Project Indebtedness,(B) anyamountsthataredueandpayabletoany applicablecounterpartyin connectionwithanyoftheProjectDocumentsasofthePurchaseDatetotheextentnottakeninto accountinthecalculationofFairMarketValueoftheProjectintheAppraisaland(C)anyamounts paid to any applicable counterparty in connection with any of the Project Documents after the Purchase Datethrough theFinal Funding Payment Date, which, in the case ofthis clause (C), for purposes of calculating the Project Purchase Price on the Effective Date and the Purchase Date, shall be based on an estimate of such amounts expected to be payable after the Purchase Date through the Final Funding Payment Date as mutually agreed by Purchaser and Seller, and for purposes of the Final Funding Payment, Project Indebtedness shall be based on such actual amounts ((A) through (C), collectively, the “Funding Date Indebtedness”). For purposes of the FinalFundingPayment,theProjectPurchasePriceshallbeadjustedpursuanttothefinalAppraisal delivered pursuant to Section 2.5(w).
(b)PurchaseDate;PaymentofInitialFundingPayment.Subjecttosatisfaction of the conditions set forth in Section2.4, on the Purchase Date, the Initial Funding Payment for the Project shall be payable by Purchaser to an account designated by Seller and in accordance withtheFinancingDocuments.ThePurchaseDateshalloccurnolaterthanten(10)BusinessDays afterthedateonwhichalloftheInitialFundingConditionsPrecedenthavebeensatisfied.Seller shall deliver or cause to be delivered to Purchaser the following documents (collectively, the “Closing Documents”):
(1)anotice,whichshallbedeliveredinescrowatleastten(10)Business DayspriortothePurchaseDate,tobedatedandreleasedasofthePurchase Date(subject to Seller’s confirmation that the representations and warranties contained therein remain true and correct), substantially in the form of Schedule 3(the “Closing Notice andCertificate”);
(2)an Assignment, Assumption and Transfer Agreement, which shall be delivered in escrow at least ten (10) Business Days prior to the Purchase Date, to be dated and released as of the Purchase Date, substantially in the form of Schedule 5(the “Assignment, Assumption and Transfer Agreement”) and executed by Seller and Purchaser; and
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(3)onorpriortothePurchaseDate,anIRSFormW-9executedby Seller.
(c)PaymentofFinalFundingPayment.Subjecttosatisfactionoftheconditions set forth in Section2.5, on the Final Funding Payment Date (providedthat the Completion Deadline has not yet occurred), the Final Funding Payment shall be payable for the Project to an account designated by Seller and in accordance with the Financing Documents so long as a Completion Certificate has been delivered pursuant to Section2.2(d). The Seller shall send a Payment Request at least ten (10) Business Days prior to the anticipated Final Funding Payment Date.TheFinalFunding PaymentDateshalloccurnolaterthanten(10)BusinessDaysafterthe date on which all of the conditions set forth in Section 2.5have been satisfied.
2.4ConditionsPrecedenttotheObligationsofPurchaser–PurchaseDate.
TheobligationsofPurchasertoconsummatethePurchaseoftheProjectshallbesubjectto the satisfaction of each of the following conditions precedent (collectively, “Initial FundingConditionsPrecedent”)toPurchaser’s reasonable satisfaction(ortotheextentnotsatisfied,waived by Purchaser in writing) on or before the Purchase Date for the Project:
(a)(i) Seller shall certify to Purchaser and Investor in the Closing Notice and CertificatethateachoftherepresentationsandwarrantiesofSellerinARTICLE3thatisqualified astomaterialityorbyMaterialAdverseChangeshallbetrueandcorrect,andsuchrepresentations that are not so qualified shall be true and correct in all material respects, in each case as of the Purchase Date (provided that, with respect to representations and warranties that relate to a previousdate,suchrepresentationsandwarrantiesshallbemadeonlyasofsuchpreviousdate),in accordancewithSection2.3(b)(1)above;and(ii)Purchasershallhavereceivedconfirmationfrom InvestorthattheClassBMember(initscapacityasClassBMemberandManagingMember)has certified to Investor that each ofthe representations andwarrantiesof ClassB Member inArticle 3oftheLLCAgreementthatisqualifiedastomaterialityorbyMaterialAdverseChangeshallbe true and correct, and such representations that are not so qualified shall be true and correct in all material respects, in each case as of the Purchase Date (provided that, with respect to representations and warranties that relate to a previous date, such representations and warranties shallbemadeonlyasofsuchpreviousdate),andsuchcertificatehasbeenexecutedanddelivered in escrow at least ten (10) Business Days prior to the Purchase Date, to be dated and released as of the Purchase Date;
(b)SellershallcertifytoPurchaserintheClosingNoticeandCertificatethat (i) no condemnation is pending or, to Seller’s Knowledge, threatened with respect the Project or any portion thereof material to the ownership or operation of the Project and (ii) no unrepaired casualty exists with respect to the Project or any portion thereof material to the ownership or operation of the Project;
(c)Seller has delivered to Purchaser the Closing Documents for the Purchase of the Project, which shall be executed and delivered in escrow at least ten (10) Business Days prior to the Purchase Date, to be dated and released as of the Purchase Date;
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(d)No Change Order is pending in respect of the Project, except for those ChangeOrdersthatcouldnotreasonablybeexpectedtocause(i)theSubstantialCompletionDate to occur after the Completion Deadline or (ii) the Commercial Operation Date to occur after the Guaranteed Commercial Operation Date;
(e)Purchaser has received confirmation from Investor that Investor has received a draft Appraisal (including draft cost segregation analysis) for the Project, which shall be in agreed form at least ten (10) Business Days prior to the Purchase Date;
(f)(i) The Independent Engineer has delivered a certificate reasonably acceptabletoPurchaserandInvestorandsubstantiallyintheformattached heretoasExhibitJ, to be executed and delivered in escrow at least 10 Business Days prior to the Purchase Date, to be datedand released asofthePurchaseDatecertifyingthat:(A)atleastone(1)Circuithasreached CircuitMechanicalCompletion;(B)theSubstationhasreachedMechanicalCompletion;and (C)theProjectisexpectedtoreach“SubstantialCompletion”(asdefinedintheEPCContract)by the Completion Deadline; and (ii) the Purchaser has received a Circuit Mechanical Completion certification for at least one (1) Circuit from the EPC Contractor and a Mechanical Completion certification from the Substation EPC Contractor, in each case with respect to this clause (ii) reasonably acceptable to Purchaser and Investor;
(g)All major equipment components of the Project (including all solar modules,inverters,rackingandtrackerequipment,transformersandbalanceofplantcomponents) have been delivered to the Project site;
(h)[Reserved];
(i)TheOfftakershallnothavemadeanypaymentfordeliveryofpowerunder the Offtake Agreement in respect of the Project as of the Purchase Date and no energy has been exported by the Project as of the Purchase Date;
(j)Seller shall certify to Purchaser in the Closing Notice and Certificate that Seller is in material compliance with this Agreement and that Seller and its Affiliates, as applicable, have complied in all material respects with each applicable Project Document;
(k)The sale and transfer of the membership interests in the Project Company shallnotcausePurchaserorInvestororanyoftheirdirectorindirectownersto:(i)becomesubject to, or not exempt from, regulation (A) as a “public utility” under the FPA, or (B) as a “holding company” under PUHCA, except solely with respect to one or more “exempt wholesale generators,”“foreignutilitycompany,”and/or“qualifyingfacilities”asthosetermsaredefinedin FERC’s regulations; or (ii) require the prior approval of FERC pursuant to the FPA or the Kentucky Public Service Commission pursuant to Applicable Law;
(l)No prior approval of any Governmental Authority is required for the sale and transfer of the membership interests in the Project Company from Seller to the Purchaser;
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(m)No Material AdverseChange(otherthan aChangein Tax Law)relating to theProject,theProjectCompany,PurchaserortheInvestor’smembershipinterestinthePurchaser has occurred and is continuing;
(n)(i) The Transaction Documents are in full force and effect and no material breach, default or event of default (or any event that with notice or lapse of time or both would become a material breach, default or event of default) (including with respect to any reporting requirements)hasoccurredthereunder, (ii)theProjectDocumentsareinfull force andeffect and no material breach, default or event of default (or any event that with notice or lapse of time or both would become a material breach, default or event of default) (including with respect to any reporting requirements) has occurred thereunder, and (iii) there has been no material amendment to any Project Document entered into since the Effective Date other than such amendments that have been permitted by, or approved by Investor in accordance with, the LLC Agreement;
(o)Atleastten(10)BusinessDayspriortothePurchaseDate,Sellershallhave made available to Purchaser and the Investor the following:
(1)a copy of the System design plan, substantially similar to the final engineering stamped design plan, structural calculations and site plans;
(2)anyconsents,approvalsandfilingsreferencedpursuantto Section3.1(d);
(3)anyPermitsreferencedpursuanttoSection3.1(j)andtheresultsof anyandallinspectionsand/orapprovalsrelatedthereto;and
(4)true and correct copies of all Project Documents (including all amendmentsthereto)togetherwithanupdate,ifapplicable,toSchedule6listingallProject Documents of the Project;
(p)Either(i)therehasbeennoChangeinTaxLaworProposedChangeinTax Law since the Effective Date, or (ii) if there has been such a Change in Tax Law or Proposed Change in Tax Law, the Base Case Model shall have been updated to Investor’s reasonable satisfaction to reflect any such Change in Tax Law or Proposed Change in Tax Law;
(q)At least ten (10) Business Days prior to the Purchase Date, Purchaser and Investor have received recent searches of the UCC filing offices for each of the jurisdictions in which UCC financing statements would be filed in respect of the membership interests of the PurchaserandtheProjectCompanyandtheassetsoftheProject,andcorrespondingjudgmentand tax lien searches, in each casedated within twenty (20)Business Days priorto thePurchaseDate and in form and substance reasonably satisfactory to Purchaser and Investor;
(r)As of the Purchase Date, the insurance required to be procured and maintainedpursuanttoSchedule8shallremaininfullforceandeffectandPurchaserandInvestor have received true, correct and complete copies of all insurance certificates from the insurance brokerin respectoftheinsurancepoliciessetout inSchedule8that arerequiredtobeinplaceon
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the Purchase Date, or such other evidence reasonably satisfactory to Purchaser and the Investor thatsuchinsurancepoliciesareinfullforceandeffect;thefinalformsoftheinsurancecertificates shall be provided to Investor at least ten (10) Business Days prior to the Purchase Date;
(s)eachofPurchaserandInvestorhasreceivedcustomaryestoppelcertificates from (i) each counterparty to the Real Property Documents, no earlier than thirty (30) days prior to the Purchase Date, (ii) Offtaker, (iii) EPC Contractor, (iv) O&M Service Provider, (v) Asset Manager, (vi) Module Supplier, (vii)Substation EPC Contractor, and (viii) Energy Manager, in each case substantially in the form attached as Exhibits A, B, C, D, E, F, G and Irespectively, or otherwiseinformandsubstancereasonablyacceptabletotheInvestor,andeachestoppeldescribed in clauses (ii)through (v) shall bedelivered in escrowat least ten (10)Business Days priorto the Purchase Date, to be dated and released as of the Purchase Date; provided, for the avoidance of doubt, that any exceptions or scheduled disclosures included in any estoppel certificate shall be subject to Investor’s approval and acceptance in its reasonable discretion;
(t)[Reserved];
(u)Ifapplicable,Investorshallhavebeenreimbursed(orwillbereimbursedas set forth in the Funds Flow Memorandum) for all Post-Closing Expenses incurred prior to the Purchase Date;
(v)Purchaser has received confirmation from Investor that Investor has received, at least ten (10) Business Days prior to the Purchase Date, the most recent audited financial statements of the Sponsor and, to the extent reasonably available, any counterparty to any Transaction Document, excluding any counterparty to a Real Property Document;
(w)Purchaser and Investor shall have received in escrow at least ten (10) BusinessDayspriortothePurchaseDateanexecutedcertificateofanauthorizedsignatory,tobe dated and released as of the Purchase Date, attaching (i) certified copies of all organizational documents, including a certificate of formation and amended and restated limited liability company agreement, of the Project Company (including, if certificated, all membership interest certificates evidencing ownership in such Project Company), and (ii) a good standing certificate from the state of its formation;
(x)The Base Case Model for the Project has been updated at least ten (10) BusinessDayspriortothePurchaseDateandsuchupdatedBaseCaseModelreflectsachievement of the Target Returns and is reasonably satisfactory to the Investor;
(y)SincetheEffectiveDate,thereshallhavebeennochangeinApplicableLaw or proposed change in Applicable Law (other than a Change in Tax Law or Proposed Change in TaxLaw)thatmateriallyimpactstheProject,theProjectCompany,thePurchaserortheInvestor’s membership interest in the Purchaser (other than any change in Applicable Law affecting the Investor or its Affiliates independent of their indirect ownership of the Project);
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(z)Nomaterialadversechangeshallhaveoccurredwithrespecttothefinancial condition or credit quality of the Sponsor that would reasonably be expected to materially adversely affect its ability to perform its obligations under the Sponsor Guaranty;
(aa)No Bankruptcy has occurred with respect to Sponsor, Purchaser, Class B Member or the Project Company;
(bb)Nomaterialadversechangeshallhaveoccurredwithrespecttothefinancial condition or credit quality of the Offtaker that would reasonably be expected to materially adversely affect its ability to perform its obligations under the Offtake Agreement;
(cc)To the extent the Environmental Report delivered as of the Effective Date is not dated within one hundred eighty (180) days of the Purchase Date, Purchaser and Investor have received, at least ten (10) Business Days prior to the Purchase Date, a bring-down of the Environmental Report with respect to the Project, in form and substance reasonably satisfactory to Purchaser (including satisfactory reliance provisions or, in the absence of reliance provisions, togetherwithaseparaterelianceletteraddressedtoPurchaserand Investor permittingrelianceon such report by Purchaser and Investor, which reliance letter shall be executed and delivered in escrow at least ten (10) Business Days prior to the Purchase Date, to be dated and released as of the Purchase Date);
(dd)If, since the Effective Date, there has been (i) the execution of a new TransactionDocumentorProjectDocument,(ii)amaterialchangeinanyTransactionDocument, Project Document, Applicable Law or the site or (iii) any dispute related to the Project, then Investor has received bring-downs of any report (including the Transmission and Market Study Report) or legal opinions provided pursuant to Section 1.3, in each case, which shall be in final agreed form at least ten (10) Business Days prior to the Purchase Date, and with respect to the reliance letters (if applicable) and opinions, shall be executed and delivered as of the Purchase Date;
(ee)Purchaser and Investor have received (i) an opinion from Rock Creek EnergyGroup,LLP,ascounseltoSponsorinrespectoffederalenergyregulatorymattersrelating totheProjectinsubstantiallytheformagreedpursuanttoSection1.3(l),orotherwiseinformand substance reasonably acceptable to Investor, and (ii) an opinion from Sturgill, Turner, Barker & Moloney PLLC, as Kentucky counsel to Sponsor, in respect of Kentucky local matters (such as enforceabilityandothercustomarymattersrelatedtotheIRBDocuments),eachofwhichshallbe infinalagreedformatleastten(10)BusinessDayspriortothePurchaseDate(andprovidedthere are no material changes following delivery into escrow that would impact the opinion) and executed and delivered as of the Purchase Date;
(ff)Seller has delivered, at least ten (10) Business Days prior to the Purchase Date, conditional lien waivers executed by (i) EPC Contractor, (ii) each subcontractor of EPC Contractor that is party to a subcontract requiring more than Two Hundred Thousand Dollars ($200,000) in payments, which shall cover any labor, materials, supplies or services done, performed or furnished at, for or to the System for amounts then due and payable for which payment has not yet been made by Project Company (or been made too recently to obtain an
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unconditional partial lien waiver), (iii) the Substation EPC Contractor and (iv) the Module Supplier;
(gg)AllPermitslistedonPartIofSchedule3.1(j)areinfullforceandeffect,all applicableregulatoryorstatutoryappealperiodsto filean administrativeor judicial appealunder theApplicableLawpursuanttowhichsuchPermitwasauthorizedhaveexpired,andnoactionsor proceedingsarependingchallengingthelegality,validityorenforceabilityofanysuchPermitsor that attempts to modify in any material manner the requirements pertaining to any such Permits;
(hh)There are no pending claims, disputes, suits, actions (including, without limitation, non-judicial real or personal property foreclosure actions), arbitrations, legal, administrativeorotherproceedingsofanynatureagainstSponsorTransactionParty,thePurchaser or any counterparty to a Transaction Document or Project Document seeking to enjoin the performanceofsuchPersonundersuchdocumentorotherwiseaffectingtheProject,thePurchaser, ortheInvestor’sinteresttherein(butexcludinganysuchactionaffectingInvestororitsAffiliates independent of its or their indirect ownership of the Project);
(ii) Except for Permitted Liens, there are no Liens on the Project, the Project Company or the Purchaser;
(jj)Investor shall have received a Funds Flow Memorandum in substantially final form delivered in escrow at least ten (10) Business Days prior to the Purchase Date, which shallincludetheportionoftheInitialFundingPaymenttobepaidbytheInvestorthatshallnotbe subject to change so long as the Purchase Date occurs within fifteen (15) Business Days of the date that Investor has received such Flow of Funds Memorandum, to be released in final form as of the Purchase Date; provided, that, any updates to any payor or payee in the Funds Flow Memorandum shall be provided to Investor at least one (1) Business Day prior to the Purchase Date;
(kk) Eachof theMembersshallhavemade theirInitial CapitalContributionsto thePurchaser;
(ll) PurchaserhasreceivedconfirmationfromInvestorthatInvestorhas received each of the following, in each case in form and substance reasonably satisfactory to Investor: (i) a tax opinion from Akin Gump Strauss Hauer & Feld LLP concluding thatthe amountspaidorincurredinconnectionwiththeProjectthatareidentifiedintheAppraisalas includedin“energyproperty”asaresultoftheapplicationofSection48(a)(8)oftheCodeshould satisfytherequirementsofSection48(a)(8)oftheCodeandProposedTreasuryRegulation§1.48-14(g), and (ii) a bringdown of the report of the Independent Engineer or a certificate from the Independent Engineer concluding that (i) no solar inverter within the Project has nameplate capacity greater than 5.0 MWac (as measured by the manufacturer based on a steady state basis and during continuous operation under standard conditions), and (ii) each such inverter and all equipment, including solar modules, associated with feeding electrical current into such inverter (collectively,a“Unit”)arenotfunctionallyinterdependentwith,cangenerateandexportpowerto the grid independent of, any other Unit and regardless of the status of any other Unit; and
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(mm)NoneoftheCircuitshasbeenPlacedinServiceandnoPISCommissioning Activities have occurred.
2.5ConditionsPrecedenttotheObligationsofPurchaser–FinalFundingPayment Date.
The obligations of Purchaser to make, on the Final Funding Payment Date, the Final Funding Payment in respect of the Project shall be subject to the satisfaction of each of the followingconditionsprecedenttoPurchaser’sreasonablesatisfaction(ortotheextentnotsatisfied, waived by Purchaser in writing on the Final Funding Payment Date):
(a)Each of theconditions precedent set forth in Sections 2.4(k), 2.4(n), 2.4(o)(except for clause (1)), 2.4(r)(as of the Final Funding Payment Date), 2.4(v), 2.4(w), 2.4(z), 2.4(aa), 2.4(bb), 2.4(dd), 2.4(hh), 2.4(ii),are satisfied as of the Final Funding Payment Date (and eachreferencetothePurchaseDateshallbedeemedtorefertotheFinal FundingPaymentDate);
(b)(i) Seller shall certify to Purchaser in the Final Funding Payment Date Certificate that (A) each of the representations and warranties of Seller in ARTICLE 3that is qualified as to materiality or by Material Adverse Change shall be true and correct, and such representations that are not so qualified shall be true and correct in all material respects as of the Final Funding Payment Date (provided that, with respect to representations and warranties that relate to a previous date, such representations and warranties shall be made only as of such previousdate),(B)nocondemnationispendingor,toSeller’sKnowledge,threatenedwithrespect the Project, or any portion thereof material to the ownership or operation of the Project, (C) no unrepaired casualty exists with respect to the Project or any portion thereof material to the ownershiporoperationoftheProject,and(D)SellerisinmaterialcompliancewiththisAgreement and that Seller and its Affiliates, as applicable, have complied in all material respects with each applicableProjectDocument;suchFinalFundingPaymentDateCertificateshallbeexecutedand deliveredinescrowatleastten(10)BusinessDayspriortotheFinalFundingPaymentDate,tobe datedandreleasedasoftheFinalFundingPaymentDate(subjecttoSeller’sconfirmationthatthe representationsandwarrantiescontainedthereinremaintrueandcorrect);and(ii)Purchasershall have received confirmation from Investor that the Class B Member (in its capacity as Class B Member and Managing Member) has certified to Investor that each of the representations and warrantiesofClassBMemberinArticle3oftheLLCAgreementthatisqualifiedastomateriality or by Material Adverse Change shall be true and correct, and such representations that are not so qualifiedshallbetrueandcorrectinallmaterialrespects,ineachcaseasoftheFinalFunding Payment Date (provided that, with respect to representations and warranties that relate to a previous date, such representations and warranties shall be made only as of such previous date), and such certificate has been executed and delivered in escrow at least ten (10) Business Days priortotheFinalFundingPaymentDate,tobedatedandreleasedasoftheFinalFundingPayment Date;
(c)Sellershalldeliver,withrespecttotheSystem:(i)acertificationfromSeller thatnoamountspayablebyProjectCompanyundertheEPCContractortheSupplyContractsare thenpastdueand thatall amountsrequiredto achieve“Final Completion”(asdefinedintheEPC Contract) of the Project have been paid in full or Seller has caused the Project Company to make
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appropriate reserves in respect of such amount to be paid (including with respect to amounts subject to any dispute), which certification shall be executed and delivered in escrow at least ten (10) Business Days prior to the Final Funding Payment Date, to be dated and released as of the Final Funding Payment Date; (ii) at least ten (10) Business Days prior to the Final Funding Payment Date, conditional lien waivers executed by EPC Contractor, each subcontractor of EPC Contractor that is party to a subcontract requiring more than Two Hundred Thousand Dollars ($200,000) in payments (to the extent required bythe EPC Contract), Substation EPC Contractor and the Module Supplier, which shall cover any labor, materials, supplies or services done, performed or furnished at, for or to the System for amounts then due and payable for which payment has not yet been made by Project Company (or been made too recently to obtain an unconditionalpartiallienwaiver);providedthat,ifanysuchlienwaiversareissuedinconnection withinvoicesissuedwithinten(10)BusinessDayspriortotheFinalFundingPaymentDate,Seller shall provide copies of such lien waivers as soon as practicable after receipt thereof; and (iii) at leastten(10)BusinessDayspriortotheFinalFundingPaymentDate,unconditionallienwaivers or other proof of payment to EPC Contractor or the Module Supplier, as applicable, for any payments in respect of which conditional lien waivers were submitted thirty (30) or more days prior to the date that is ten (10) Business Days prior to the Final Funding Payment Date;
(d)The System has passed the Performance Tests and has been Placed in Serviceandshallhavecommencedregular,dailyandcontinuousoperations,and,atleastten(10) Business Days prior to the Final Funding Payment Date, the Investor shall have received a copy oftheletterorotherwrittenconfirmationfromtheTransmissionProvider(assuchtermisdefined in the Interconnection Agreement) or the Interconnected Transmission Owner (as such term is defined in the Interconnection Agreement) authorizing operation of and export of energy by the Project at the full rated capacity and the commencement of interconnection service under the Interconnection Agreement;
(e)Seller has delivered to Purchaser and Investor a Completion Certificate substantiallyintheform attachedheretoas Schedule4,tobeexecutedand deliveredinescrowat leastten(10)BusinessDayspriortotheFinalFundingPaymentDate,tobedatedandreleasedas of the Final Funding Payment Date;
(f)Seller has delivered to Purchaser and Investor at least ten (10) Business DayspriortotheFinalFundingPaymentDateevidencereasonablysatisfactorytoInvestorthatall warranties issues by each manufacturer or supplier of modules and inverters have been assigned to the Project Company, solely to the extent such warranties by their terms do not automatically runtothebenefitofthePersonthatownstheapplicableequipmentorthesystemintowhichsuch equipment is incorporated.
(g)IftherehasbeenanychangeinfactsorprojectionsrelatingtotheProject’s beginning of construction strategy, Seller shall have delivered to Purchaser and Investor, at least ten (10) Business Days prior to the Final Funding Payment Date, a revised Start of Construction Certificateincludingdocumentationandotherevidencethat,notwithstandingsuchchangeinfacts orprojections,constructionontheProjectbeganpriortoJanuary29,2023,suchthattheProjectis
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eligible for the 5x multiplier of tax credits without satisfying the prevailing wage and apprenticeship requirements;
(h)(i) The Transaction Documents are in full force and effect and no material breach, default or event of default (or any event that with notice or lapse of time or both would become a material breach, default or event of default) by any Sponsor Transaction Party or, to Seller’sKnowledge,anyotherpartytotheTransactionDocumentshasoccurredandiscontinuing thereunder, (ii) the Project Documents are in full force and effect and no material breach, default orevent ofdefault (oranyeventthat withnoticeorlapse oftimeorbothwouldbecomeabreach, defaultoreventofdefault)(includingwithrespecttoanyreportingrequirements)byanySponsor Transaction Party or, to Seller’s Knowledge, any other party to the Transaction Documents or ProjectDocumentshasoccurredandiscontinuingthereunder,and(iii)therehasbeennomaterial amendment to any Project Document entered into since the Purchase Date other than such amendments that have been permitted by, or approved by Investor in accordance with, the LLC Agreement;
(i)All Permits, Governmental Approvals and other local utility approvals required for ownership, development, construction, operation and ordinary maintenance of the Project(i)havebeenissued,(ii)areinfullforceandeffect,(iii)arenotsubjecttoanypendingor, to Seller’s Knowledge, threatened proceedings that challengethelegality, validity orenforceability of such Permits, Governmental Approvals or other approvals, or that attempts to modify their requirements in any material and adverse manner, and (iv) if there is an appeal period for appeal by any other Person, specified by a statute or rule promulgated by any Governmental Authority, such appeal period has expired, other than, in each case, such Permits, Governmental Approvals andotherlocalutilityapprovalsinPartIIIofSchedule3.1(j)thatareministerialinnatureandcan reasonably be expected to be obtained in due course on commercially reasonable terms and conditions when needed, as reasonably approved by the Purchaser and Investor;
(j)No Material AdverseChange(otherthan aChangein Tax Law)relating to theProject,theProjectCompany,thePurchaser, ClassBMember,orSponsororon theabilityof any of the foregoing to perform its obligations under the Transaction Documents or Project Documents to which it is a party has occurred and is continuing;
(k)TheInitialFundingPaymentfortheProjecthas beenpreviouslymade;
(l)Either(i)therehasbeennoChangeinTaxLaworProposedChangeinTax LawsincethePurchase DatefortheProjector(ii)iftherehasbeensuch a ChangeinTax Lawor Proposed Change in Tax Law, the Base Case Model shall have been updated to reflect any such Change in Tax Law or Proposed Change in Tax Law to Purchaser and Investor’s reasonable satisfaction;
(m)Each of Purchaser and Investor has received (i) a bring-down of the report of the Independent Engineer, (ii) if requested by Investor, a bring-down of the Transmission and Market Study Report and (iii) if requested by the Investor and the Environmental Report is dated morethanone hundred eighty(180)daysprior to theFinal Funding PaymentDate,abring-down of the Environmental Report with respect to the Project in form and substance reasonably
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satisfactory to Purchaser, in each case at least ten (10) Business Days prior to the Final Funding Payment Date and including satisfactory reliance provisions or, in the absence of reliance provisions,togetherwithaseparaterelianceletteraddressedtoPurchaserandInvestorpermitting reliance on such report by Purchaser and Investor (which reliance letter will be executed and deliveredinescrowatleastten(10)BusinessDayspriortotheFinalFundingPaymentDate,tobe dated and released on the Final Funding Payment Date);
(n)SubstantialCompletion(asdefinedintheEPCContractandtheSubstation EPC Contract, as applicable) has occurred under the EPC Contract and the Substation EPC Contract, as applicable, and Purchaser has received (i) Substantial Completion certification reasonablyacceptabletoPurchaserandInvestorfromeachofEPCContractorandSubstationEPC Contractor, and (ii) a certificate delivered by the Independent Engineer in a form reasonably acceptable to Purchaser and substantially inthe form of Exhibit Kattached hereto to be executed and delivered in escrow at least 10 Business Days prior to the Purchase Date, to be dated and released as of the Purchase Date, certifying that (A) “Substantial Completion” (as defined in the EPCContract)and“SubstantialCompletion”(asdefinedintheSubstationEPCContract)hasbeen achievedpriortotheCompletionDeadline,and(B)theCommercialOperationDatehasoccurred;
(o)anAs-BuiltALTASurvey,informandsubstancereasonablyacceptableto PurchaserandInvestor,fortheProjectisreasonablyexpectedtobecomeavailablewithinsixty (60)daysafterthe FinalFundingPaymentDate;
(p)Purchaser and Investorshallhavereceived,atleast ten(10)BusinessDays prior to the Final Funding Payment Date, a date down endorsement of the Title Policy delivered fortheProjectpursuanttoSection2.4(s)whichshallshownonewmattersofrecordandshowthat the standard survey exception has been removed;
(q)EachofPurchaserandInvestorhasreceived,atleastten(10)BusinessDays priortotheFinalFundingPaymentDate,afinalAppraisalandfinalcostsegregationanalysisthat includes the final costs associated with the Project and Purchase Price allocation, in each case reasonably satisfactory to the Investor;
(r)If applicable, Investor shall have been reimbursed for all Post-Closing Expenses incurred in respect of the Project;
(s)If requested by Investor, Purchaser has received, at least ten (10) Business DayspriortotheFinalFundingPaymentDate,abring-downoftheinsurancereportdelivered pursuant to Section 1.3(d)and detailing any material changes, in form and substance reasonably satisfactory to Investor (including satisfactory reliance provisions or, in the absence of reliance provisions,togetherwithaseparaterelianceletteraddressedtoPurchaserandInvestorpermitting reliance on such report by Purchaser and Investor, which reliance letter shall be executed and deliveredinescrowatleastten(10)BusinessDayspriortotheFinalFundingPaymentDate,tobe dated and released on the Final Funding Payment Date) and insurance certificates from the insurance broker in respect of the insurance policies set out in Schedule 8or such other evidence reasonably satisfactory to the Investor that such insurance policies are in full force and effect;
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(t)Purchaser has received estoppel certificates from (i) if the Final Funding Payment Date occurs more than sixty (60) days after the Purchase Date, the each counterparty to theReal Property Documents, no earlierthan thirty (30)days priorto the Final Funding Payment Date, (ii) Offtaker, (iii) EPC Contractor, (iv) O&M Service Provider, (v) Asset Manager, (vi) Module Supplier, (vii) Substation EPC Contractor and (viii) the Energy Manager, in each case substantiallyintheformattached asExhibitsA,B,C,D,E,F,Gand I,respectively,orotherwise informandsubstancereasonablyacceptabletotheInvestor,andeachestoppeldescribedinclauses (ii) through (viii) shall be executed and delivered in escrow at least ten (10) Business Days prior totheFinalFundingPaymentDate,tobedatedandreleasedontheFinalFundingPaymentDate; providedthat,fortheavoidanceofdoubt,thatanyexceptionsorscheduleddisclosuresincludedin any estoppel certificate shall be subject to Investor’s approval and acceptance in its reasonable discretion;
(u)Bring-downs of each opinion delivered pursuant to Section 1.3or Section2.4,providedthatataxopinionshallonlyberequiredifachangeinApplicableLaw,aChangein TaxLaworachangeinfactsoutsideofthecontrolofInvestoranditsAffiliateshasoccurredsince the Purchase Date (including any changes or guidance related to the qualification for the Energy CommunityAdderorforSection48(a)(8)oftheCode);providedfurtherthatabring-downofany opinions related to federal, state and local energy regulatory, land use, environmental and permitting matters shall be required only if the most recent opinion delivered, as applicable, identified any outstanding actions to be taken by any Sponsor Transaction Party (such as making a filing or notice or obtaining a permit, license or approval) or there has been a change in fact or law relevant to such opinion; and providedfurther that no bring-down of any opinion related to corporate or enforceability matters shall be required except as may be reasonably requested in connectionwithanyamendmenttothisAgreement,theLLCAgreementortheSponsorGuaranty. Each such opinion will be in final agreed form at least ten (10) Business Days prior to the Final Funding Payment Date, to be executed and delivered on the Final Funding Payment Date;
(v)SincethePurchaseDate,thereshallhavebeennochangeinApplicableLaw or proposed change in Applicable Law (other than a Change in Tax Law or Proposed Change in Tax Law) that materially, negatively impacts the Project, the Project Company, the Purchaser or theInvestor’s interest therein (specifically excluding any changein Applicable Law affecting the Investor or its Affiliates independent of its indirect ownership of the Project), except for such changes where the anticipated economic consequences have been accounted for in the update to the Base Case Model;
(w)Purchaser has received confirmation that Investor received evidence reasonably acceptable to Investor that (i) all amounts outstanding under the Construction Loan Facility (as defined in the Financing Documents) shall have been fully repaid or converted to SponsorMember-levelback-leveredtermdebt(orwillhavebeenfullyrepaiduponthePurchaser’s payment on such date) and all related construction financing liens shall have been terminated (or willhavebeenterminateduponPurchaser’spaymentonsuchdate)and(ii)allTaxEquityBridge Loans (as defined in the Financing Documents) shall have been fully repaid (or will have been fully repaid upon the Purchaser’s payment on such date) and all related financing liens in respect
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of such Tax Equity Bridge Loans shall have been terminated (or will have been terminated upon Purchaser’s payment on such date);
(x)The Base Case Model for the Project has been updated for any change in fact (excluding actual production results) or advisor inputs (e.g., production estimates of the IndependentEngineer),butspecificallyexcludinganymerchantcurveupdates,sincethePurchase Date, and such updated Base Case Model reflects achievement of the Target Returns;
(y)At least ten (10) Business Days prior to the Final Funding Payment Date, Purchaser and Investor have received recent searches of the UCC filing offices for each of the jurisdictions in which UCC financing statements would be filed in respect of the membership interests of the Purchaser and the assets of the Project, and corresponding judgment and tax lien searches,ineachcasedatedwithintwenty(20)BusinessDayspriortotheFinalPaymentFunding Date and in form and substance reasonably satisfactory to the Purchaser;
(z)At least ten (10) Business Days prior to the Final Funding Payment Date, Investor shall have received a Funds Flow Memorandum in substantially final form delivered in escrow, which shall include the portion of the Final Funding Payment to be paid by the Investor thatshallnotbesubjecttochangesolongastheFinalFundingPaymentDateoccurswithinfifteen (15)BusinessDaysasofthedatethatInvestorhasreceivedsuchFlowofFundsMemorandum,to bereleasedinfinalformasoftheFinalFundingPaymentDate;provided,that,anyupdatestoany payor or payee in the Funds Flow Memorandum shall be provided to Investor at least one (1) Business Day prior to the Final Funding Payment Date;
(aa) TheSubdivisionApprovalhasbeenobtained;
(bb)The TCI Limit has been increased to an amount equal to the sum of the developmentfeereflectedinthefinalAppraisaldeliveredpursuanttoSection2.5(q)plus $6,600,000,andInvestorhasreceivedevidencereasonablysatisfactorytoit(whichevidencemay be in the form of written receipt or other acknowledgement from the insurer) that Purchaser has paidthepremiumthereoninfull(includinganyincreasedpremiumresultingfromtheincreasein the TCI Limit contemplated hereby);
(cc)Purchaser and Investor have received a status letter from PJM Interconnection, L.L.C. describing the status of certain milestones and requirements pursuant to the Interconnection Agreement, in form and substance reasonably satisfactory to Investor;
(dd) The TCI Policy has been issued for the full TCI Limit and remains in full force and effect; and
(ee) ThePunchlistAmounthasbeendepositedintotheProjectCompletion Account, as reflected in the Funds Flow Memorandum.
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2.6ConditionsPrecedenttotheObligationsofSeller.
TheobligationsofSellertoconsummatethePurchaseoftheProjectshallbesubjecttothe satisfaction of each of the following conditions precedent for the Project:
(a)Each of the representations and warranties of Purchaser in Section3.2that is qualified as to materiality or by Material Adverse Change shall be true and correct, and such representations that are not so qualified shall be true and correct in all material respects, in each case as of the Purchase Date;
(b)Allconsents,approvalsandfilingsthenrequiredtobeobtainedormadeby Purchaser to execute, deliver and perform the Transaction Documents to which it is a party shall have been obtained or made and shall be in full force and effect as of the Purchase Date;
(c)Purchaser has executed and delivered the Assignment, Assumption and Transfer Agreement;
ARTICLE3
REPRESENTATIONS,WARRANTIESANDCOVENANTS
3.1Representations,WarrantiesandCovenantsofSeller.
Seller represents, warrants and covenants to Purchaser as follows as of the Effective Date andwarrantsandcovenantstoPurchaserasfollowsasofthePurchaseDateandtheFinalFunding PaymentDate(providedthatwithrespecttorepresentationsandwarrantiesthatrelatetoaspecific date, such representations and warranties shall be made only as of such date) that:
(a)OrganizationandGoodStanding.Sellerisalimitedliabilitycompany,duly formed, validly existing and in good standing under the laws of the state of its formation and has all requisite power and authority to own, lease and operate its business as currently conducted. Seller is duly qualified to do business and is in good standing under the laws of each jurisdiction thatitsbusiness,ascurrentlybeingconducted,shallrequireittobesoqualified,exceptwherethe failuretobesoqualifiedwouldnotreasonablybeexpectedtoresultinaMaterialAdverseChange or have a material adverse effect on the Project.
(b)Authorization, Execution and Enforceability. Seller has full power and authority to execute and deliver this Agreement and the Transaction Documents to which it is a party and to consummate the Transactions contemplated thereby. The execution and delivery by Seller of this Agreement and the Transaction Documents to which it is a party and the consummationbySelleroftheTransactionscontemplatedtherebyhavebeendulyandvalidly authorizedbyallnecessarycompanyactionrequiredonthepartofSeller,andthisAgreementhas been duly and validly executed and delivered by Seller. This Agreement and each Transaction Document to which it is a party constitutes the legal, valid and binding agreement of Seller, enforceableagainstSellerinaccordancewithitsterms(assumingdueauthorization,executionand delivery by Purchaser), except as enforcement may be limited by applicable bankruptcy,
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insolvency,reorganization,moratoriumorsimilarlawsaffectingcreditors’rightsgenerallyandby generalprinciplesofequity(regardlessofwhetherconsideredinaproceedinginequityoratlaw).
(c)No Violation. The execution and delivery by Seller of this Agreement and the Transaction Documents to which it is a party does not, and the performance by Seller of its obligations hereunder and thereunder shall not (i)violate any laws, statutes, rules, regulations, ordinances, judgments, settlements, orders, decrees, injunctions and writs of any Governmental Authority having jurisdiction, (ii)conflict with or cause a breach of any provision in the charter, bylaws or other organizational document of Seller, or (iii)cause a breach of, constitute a default under, cause the acceleration of, create in any counterparty the right to accelerate, terminate, modify or cancel, or require any authorization, consent, waiver or approval under any contract, note, bond, mortgage, indenture, agreement, license, intellectual property licenses or rights, instrument,decree,judgmentorotherarrangementtowhichSellerisapartyorunderwhichSeller is bound or to which any of its Assets is subject (or result in the imposition of a Lien upon any such Assets), including indirect ownership of such Assets through its Subsidiary, as applicable, except in the case of clauses(i)or (iii)as would not, individually or in the aggregate result in a Material Adverse Change or have a material adverse effect on the Project.
(d)Consent. All estoppels, consents, approvals, filings and any other documents then required to be obtained or made by Seller to execute, deliver and perform this AgreementandtheTransactionDocumentstowhichitisapartyhavebeenvalidlyissuedandare final and are in full force and effect, other than those where failure to be obtained would not reasonably be expected to cause a Material Adverse Change.
(e)Legal Proceedings. There are no pending or, to Seller’s Knowledge, threatened claims, disputes, governmental investigations, suits, actions (including, without limitation, non-judicial real or personal property foreclosure actions), arbitrations, legal, administrativeorotherproceedingsofanynature, domesticorforeign,criminalorcivil,atlawor inequity,byoragainstSellerortheProjectCompanywhichquestionstheenforceabilityorvalidity ofthisAgreement,theTransactionDocumentsorProjectDocumentstowhichit(oritsSubsidiary, as applicable) is a party or the ability of Seller to consummate the Transactions contemplated thereby or would reasonably be expected to materially impede the planned use of the Project or theparticipationoftheInvestorintheTransactionorotherwisereasonablyexpectedtoresultina material adverse change on theProject; providedthat theforegoing representation, as it relates to legal proceedings involving the Offtaker or any other counterparty to any Transaction Document or Project Document, is made only to Seller’s Knowledge.
(f)NoDefault;RighttoTerminate.
(1)Seller(ortheProjectCompany,asapplicable)hasnotbreachedany provisionof,ordefaultedunderthetermsof,thisAgreementoranyoftheother Transaction Documents to which it is a party that remains uncured and no event or circumstance has occurred that would, with notice or passage of time, result in such a breach or default, other than those breaches or defaults that would not reasonably be expectedtocauseaMaterialAdverseChange.TheProjectCompanyhasnotbreachedany provision of, or defaulted under the terms of the Project Documents to which it is a party
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thatremainsuncuredandnoeventorcircumstancehasoccurredthatwould,withnoticeor passageoftime,resultinsuchabreachordefaultthatwouldgivethenon-defaultingparty a right to terminate such Project Document, except (other than with respect to any Real PropertyDocuments,theOfftakeAgreement,theEPCContract,theO&MAgreementand the Asset Management Agreement) if termination of such Project Document would not reasonably be expected to cause a Material Adverse Change. The consummation of the Transactions contemplated by this Agreement would not give Seller or, to Seller’s Knowledge, a counterparty to aProject Document theright to terminate or alterthe terms of such Transaction Document or Project Document, respectively, or a right to claim damages thereunder.
(2)The Project Company (or its Affiliates, as applicable) has entered intotheProjectDocuments,andtoSeller’sKnowledge,eachProjectDocumentconstitutes thelegal,validandbindingagreementofthecounterpartythereto,enforceableagainstthe such counterparty in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether consideredinaproceedinginequityoratlaw).TheProjectshallbeinstalledandoperated solely at the Project site.
(3)Other than as disclosed on Schedule 12 hereto and approved by Investor and Purchaser, neither the Project Company nor, to Seller’s Knowledge, the Offtakerhasmateriallybreachedanyprovisionof,ormateriallydefaultedundertheterms oftheOfftakeAgreementthatremainsuncured,andnoeventorcircumstancehasoccurred thatwould,withthepassageoftime,resultinsuchamaterialbreachordefault.TheProject Company is not a party to any contract, instrument, commitment, agreement or other legallybindingarrangementwiththeOfftakerinrelationtotheSystemsortheProjectother than the Offtake Agreement.
(g)Taxes.
(1)Seller (a)has not taken a position on any federal, state or local Tax report,TaxfilingorTax Returnthatisinconsistentwiththeoriginaluseby Purchaser,for federal income tax purposes, of the System or any property that is part of the System (except to the extent permitted pursuant to the LLC Agreement) or (b)except due to Seller’s direct or indirect ownership of Purchaser, has not claimed with respect to the System or any property that is part of such System on any Tax report, Tax filing or Tax Return, any depreciation or amortization deductions, Tax Credits or any other tax credits or deductions that are available with respect to the System or any property that is part of theSystem.Sellercovenantsthat,fromandaftertheEffectiveDate,it(a) willnottakea position on any federal, state or local Tax report, Tax filing or Tax Return that is inconsistent with the original use by Purchaser, for federal income tax purposes, of the System or any property that is part of the System(except to the extent permitted pursuant to the LLC Agreement) or (b)except due to Seller’s direct or indirect ownership of Purchaser, will not claim with respect to the System or any property that is part of such
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System on any Tax report, Tax filing or Tax Return, any depreciation or amortization deductions,TaxCreditsoranyothertaxcreditsordeductionsthatareavailablewithrespect to the System or any property that is part of the System.
(2)Except to theextent shown on theAppraisal, allof thecomponents of the Project constitute “energy property” within the meaning of Section 48(a)(3)(A)(i) (such non-excepted components, the “Energy Property”) and for purposes of calculating theTaxCreditsavailabletoPurchaser,theCompany’sinitialU.S.federalincometaxbasis intheEnergyPropertyequalstheFairMarketValueasshownontheAppraisal(asrevised as of the Final Funding Payment Date). For purposes of calculating depreciation for U.S. federal income tax purposes, such initial basis shall be reduced by 50% of the amount of the Company’s Tax Credits with respect to the Energy Property.
(3)TheSystemisnotexpectedtobeusedprimarilytogenerate energy for the purpose of heating a swimming pool.
(4)OnthePurchaseDate,(i)noportionoftheEnergyPropertyhasbeen Placed in Service or generated and exported any electricity, (ii) no PIS Commissioning Activities have occurred, (iii) no portion of the Project has generated and exported any electricity and (iv) no letter or other written confirmation has been issued by the Transmission Provider or the Interconnected Transmission Owner (as each such term is defined in the Interconnection Agreement) authorizing daily and regular commercial operationofandexportofenergybytheProject.OntheFinal FundingPaymentDate,the ProjecthasbeenPlacedinService.TheCommissioningPlanisthemostrecentversionof such document, and the Project will be commissioned in accordance with the Commissioning Plan.
(5)As of the Purchase Date, no Person has claimed with respect to the Project or any property that is part of the Project, on any Tax Return, any depreciation or amortization deductions, including for purposes of calculating estimated taxes.
(6)The Offtaker is not related to the Purchaser within the meaning of Section 267 or 707(b) (other than as a result of any relationship between the Class A Member and the Offtaker).
(7)Noelectionhasbeenmade,andnoagreementwiththeOfftakerhas been entered into to makean election, underSection 50(d)(5) oftheCodeto pass through the available Tax Credits to the Offtaker.
(8)ExcepttotheextentrequiredbyApplicableLaworfollowingaFinal Determination,Sellershall,andshallcauseitsAffiliatesto,reportinall taxdocuments, filingsandstatementsthattheamountrealizedonthesaleoftheProjecttoPurchaseristhe Project Purchase Price. (For the avoidance of doubt, this does not include Seller’s accounting statements.)
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(9)The Base Case Model reflects all sales, use, property, ad valorem, franchise andsimilarTaxesthat iscurrentlycontemplatedtobeimposedon(orotherwise payable by or required to be collected by) the Project Company or the Project.
(10)The Project is not “tax-exempt bond financed property” within the meaningofSection168(g)oftheCodeandnoportionoftheEnergyPropertyisorhasever beenfinanced(directlyorindirectly)byanobligationtheinterestonwhichisexemptfrom federal income tax under Section 103(a) of the Code.
(11)WithrespecttotheProjectCompanyasofthePurchaseDate,Seller has timely filed all necessary Tax Returns, all such Tax Returns were true, correct and complete in all respects and has paid all Taxes shown as owing on any such Tax Returns.
(12)WithrespecttotheProjectCompanyasofthePurchaseDate,Seller has not: (i)requested (or had requested on its behalf) any extension of time within which tofileanyTaxReturn,(ii)executed(orhadexecutedonitsbehalf)anyoutstandingwaivers of the statute of limitations for any Taxes or any Tax Return, (iii)granted any powers of attorney with respect to any Tax matteror(iv)received or requested any written ruling of a Taxing authority with respect to Taxes or entered into any other written agreement with a Taxing authority relating to Taxes.
(13)WithrespecttotheProjectCompanyasofthePurchaseDate,Seller haswithheldandpaidallTaxesrequiredtohavebeenwithheldandpaidinconnectionwith anyamountspaidorowingtoanyemployee,independentcontractor,creditororotherthird party, and all Forms W-2 and 1099 required with respect thereto have been properly completed and timely filed.
(14)WithrespecttotheProjectCompanyasofthePurchaseDate:(i)the Project Company is and has been disregarded as an entity separate from its owner for federalincometaxpurposesatalltimessinceitsdateofformation,(ii)noelectionhasbeen made by Seller for the Project Company to be treated as an association taxable as a corporationforfederalincometaxpurposes,(iii)theProjectCompanyisnotapartytoany Tax indemnity, allocation or sharing agreement (other than any Tax indemnities that are partofcontractsenteredintointheordinarycourseofbusinessthatarenotprimarilyrelated to Taxes), (iv) no claim has been made by a Taxing authority, in a jurisdiction where the ProjectCompanydoesnotfileTaxReturns,thattheProjectCompanyisormaybesubject to taxation by that jurisdiction, and (v) there are no Liens for Taxes that Seller or Project Companyisrequiredtopay(otherthanTaxesnotyetdueandpayable)upontheProjector the Project Company.
(15)Therepresentations,warrantiesandcovenantscontainedintheStart of Construction Certificate are true, correct and complete.
(16)NopropertythatispartoftheSystemis“importedproperty”within the meaning of Section 168(g)(6) of the Code.
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(17)The System is comprised of new “section 38 property” within the meaning of Treas. Reg. 1.48-1 and no portion of the Energy Property constitutes “used components of a unit of energy property” within the meaning of Proposed Treasury Regulation § 1.48-14(a).
(18)Sellerisanaccrualbasistaxpayer.
(19)NoneoftheSelleroritsAffiliateshastakenanypositiononafederal income tax return that would be inconsistent with treating the Project as a single project for purposes of Section 7.01(2) of IRS Notice 2018-59.
(20)TheProjectisanticipatedtobeplacedinserviceforFederalincome tax purposes prior to December 1, 2025.
(21)No portion of the Energy Property constitutes “dual use property” with the meaning of Proposed Treasury Regulation Section 1.48-14(b).
(22)No portion of the Energy Property constitutes “an addition or modification to an existing energy property” within the meaning of Proposed Treasury Regulations § 1.48-9(f)(1).
(23)All of the Energy Property is used exclusively for a “qualifying purpose” within the meaning of Proposed Treasury Regulations § 1.48-14(d), and the amountthatwouldhavebeenexpendedfortheEnergyPropertyiftheEnergyPropertywas not used for a qualifying purpose is $0.
(24)All of the amounts paid or incurred in connection with the Project identifiedintheAppraisalasincludedin“energyproperty”asaresultoftheapplicationof Section 48(a)(8) of the Code satisfy the requirements of Section 48(a)(8) of the Code and Proposed Treasury Regulation § 1.48-14(g).Without limiting the generality of the foregoing,theProjectiscomprisedofthirtytwo(32)“unitsofenergyproperty”withinthe meaning of Proposed Treasury Regulation § 1.48-9(f)(2) that satisfy the Five-Megawatt Limitation described in Proposed Treasury Regulation § 1.48-14(g)(3).
(h)CompliancewithApplicableLaws.Seller (orits Subsidiary,asapplicable) and, to Seller’s Knowledge, EPC Contractor and O&M Service Provider (and all subcontractors oftheforegoing),areincomplianceinallmaterialrespectswithallApplicableLawswithrespect todeveloping,constructing,leasing,installing,operatingandmaintainingtheProject(withrespect to the Effective Date only, except for obtaining the Subdivision Approval), and the entering into, and performance of obligations under, the Offtake Agreement.
(i)Information. The written information furnished by Seller to Purchaser and/orInvestor,theirrespectiveconsultants,advisorsandattorneys,andtheIndependent Accounting Firm in connection with the Project or any Sponsor Transaction Party (including written information provided by Seller or the Project Company in any certificate or report delivered pursuant to the Transaction Documents or the Offtake Agreement), when taken as a
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whole,containsnountruestatementofmaterialfactasofthedatesuchinformationwasprovided, anddoesnotomitanymaterialfactnecessarytomakesuchinformationnotmisleadinginlightof thecircumstancesunderwhichitisprovided;providedthat,norepresentationorwarrantyismade withrespectto(i)anyprojectedfinancialinformationorotherforward-lookingstatement(except that such projections and the Base Case Model were made and prepared in good faith), (ii) conclusions contained in any third-party reports, except as specifically represented in Section3.1(g)(2),(iii)descriptionsofcounterpartiestotheProjectDocuments otherthanAffiliates ofthe Selleror(iv)thetaxconsequencesofaninvestmenttothePurchaser,itsmembers,theInvestoror its Affiliates, other than as may be specifically set forth in the LLC Agreement.
(j)Permits.WithrespecttothePurchaseDateandtheFinalFundingPayment Date, all Permits required under the Offtake Agreement or otherwise to own, site, develop, construct, install and test the System, sell the Project Company to Purchaser, sell power at wholesale and RECs from the Project to the Offtaker, and to operate and maintain the Project (includingPermitsrequiredpursuanttoEnvironmentalLaws)including,whereapplicable,written authorization from the local utility for parallel operation, are listed on Schedule 3.1(j). Part Iof Schedule 3.1(j)lists all such Permits that have been obtained by the Project Company as of the Purchase Date and the Final Funding Payment Date. As of the Purchase Date, Part IIofSchedule3.1(j)listsallsuchPermitsthatarerequiredpriortotheFinalFundingPaymentDatebut not prior to the Purchase Date and have not been obtained by the Project Company. All Permits listedonSchedule3.1(j)havebeenobtainedonorbeforethePurchaseDateandtheFinalFunding PaymentDate(otherthan,asofthePurchaseDate,thosePermitslistedonPartIIof Schedule3.1(j)),otherthansuchPermitsthatareofaministerialornon-discretionarynature,can reasonably be expected to be obtained in due course on commercially reasonable terms and conditionswhenneeded,andarenotrequiredtobeobtainedpriortothePurchaseDateortheFinal Funding Payment DateunderApplicableLaw. As ofthe Final Funding Payment Date, Part IIIof Schedule 3.1(j)lists all Permits that are ministerial in nature that have not been obtained and can reasonably be expected to be obtained in due course on commercially reasonably terms and conditions when needed. The Project Company has obtained all Permits required by Applicable Laws (including Environmental Laws) based on the current stage of development of the Project (with respect to the Effective Date only, except for obtaining the Subdivision Approval). All Permits that have been obtained are in full force and effect, are not in breach in any material respect,andarenotthesubjectofanypending,ortoSeller’sKnowledge,threatenedadverseaction orproceedingthatchallengesthelegality,validityorenforceabilityofsuchPermitsorthatattempts tomodifytheirrequirementsinanymaterialandadversemanner,and(unlessnotedin Schedule3.1(j)and accepted by Purchaser and Investor) all applicable regulatory or statutory appeal periods to file an administrative or judicial appeal under the Applicable Law pursuant to which such Permit was authorized (and not generally applicable appeal periods under the federal Administrative Procedures Act or any state analogue thereof) have expired. Assuming all applicable consents have been obtained, the Transactions contemplated by the Transaction Documents will not adversely affect the validity of such Permits. Neither Seller nor any of its AffiliateshasreceivedwrittennoticefromanyGovernmentalAuthorityregardinganyrevocation, withdrawal,suspension,cancellationorterminationofanyPermitthatisnecessaryforthelocation, development, construction or operation of the Project.
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(k)Warranties. On the Purchase Date, all warranties relating to the modules, trackers,invertersandtransformersfromanymanufacturerofanypartthereofshallbeinfullforce and effect in all material respects and shall have been assigned to the Project Company (to be effective as of “Final Completion” (as defined in the EPC Contract)).
(l)Title.(i)AsofthePurchaseDate,immediatelypriortotheexecutionofthe Assignment, Assumption and Transfer Agreement, (A) Seller has good title to, and is the owner of,onehundredpercent(100%)oftheissuedandoutstandingmembershipinterestsintheProject Company, (B) the Project is free and clear of all Liens other than Permitted Liens, and (C) legal title and ownership of the membership interests in the Project Company shall, on the Purchase Date,uponconsummationofthePurchasethereofpursuanttothisAgreement,passtoandremain with Purchaser, free and clear of all Liens (other than liens created pursuant to subsection (f) of thedefinitionofPermittedLiens);and(ii)onorbeforetheFinalFundingPaymentDate,legaltitle andownershipoftheProjectshallhavepassedtotheProjectCompany,freeandclearofallLiens (otherthanPermittedLiens).OtherthanPurchaser’srightshereunder,noPersonholdsanyoption, warrant or other right (including conversion or preemptive rights, preferential rights to purchase, rights of first refusal, rights of reversion, and repurchase rights) to acquire, directly or indirectly, the membership interests in the Project Company.
(m)Intellectual Property. Seller (or the Project Company) owns or has a valid licensetoallintellectual propertythatisreasonablynecessarytoinstall,operate andmaintainthe Project.Thereareno pendingclaims, actions,judicial orotheradversaryproceedings concerning any item of such intellectual property, and, to Seller’s Knowledge, no such action or proceeding is threatened, except in each case where such action or proceeding would not reasonably be expected to cause a Material Adverse Change.
(n)RealPropertyRights.AllofSeller’s(ortheProjectCompany’s)rightsand interests in real property contained in the Real Property Documents (the “Real Property Rights”) aresufficientforthesiting,development,constructionandoperationoftheProjectandforthefull performanceandenforcementbysuchPerson,andfromandafterthePurchaseDatebyPurchaser (oritsSubsidiary,ifapplicable),ofitsrights,remediesandobligationswithrespecttotheProject. ThegrantingoftheRealPropertyRightsundersuchRealPropertyDocumentsandtheassignment of such rights to Purchaser (or its Subsidiary, if applicable) in connection with the sale of the ProjectareinaccordancewiththeapplicableRealPropertyDocumentandanyapprovalorconsent requiredtherebyhasbeenobtained.NeitherSellernoritsSubsidiary(ifapplicable),nor,toSeller’s Knowledge, the Offtaker have been informed in writing by any owner of the real property associatedwithsuchRealPropertyRightsthatSeller(oritsSubsidiary)isinmaterialbreachofits obligations relating to such Real Property Rights or that such Real Property Rights have been or are being repudiated, challenged or terminated.
(o)Environmental Matters. (i) Seller and its Affiliates have complied and are incomplianceinallmaterialrespectswithallEnvironmentalLawswithrespecttotheProject,(ii) neitherSelleroritsAffiliateshaveReleasedorarrangedfororpermittedthedisposalofany Hazardous Substances in amannerthat has given orwould reasonably beexpected to giveriseto any material liabilities, including any remedial or cleanup obligations, by Seller or its Affiliates
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pursuanttoEnvironmentalLaws,(iii)toSeller’sKnowledge,theProjectdoesnotinvolvepremises whereHazardousSubstanceshavebeenReleasedinamannerthathasgivenorwouldreasonably be expected to give rise to any material liabilities, including remedial or cleanup obligations, by Seller or its Affiliates pursuant to Environmental Laws, (iv) none of Seller or its Affiliates or the Project Company has received written notice from any Person of an actual or potential violation of or liability under any Environmental Laws with respect to the Project, which remains pending or unresolved or is the source of ongoing material obligations or requirements that will require unbudgeted capital expenditures or materially increase the Project’s operating budget or could reasonablyresultinaMaterialAdverseChange,(v)therearenopendingor,toSeller’sKnowledge, threatenedEnvironmentalClaimsor,toSeller’sKnowledge,investigationsbyanyGovernmental Authority with respect to the Project Company or the Project, (vi) the Project Company is not subject to any material order of any Governmental Authority with respect to the Project or the Project site arising under Environmental Laws which is either the source of ongoing material obligationsorrequirementsthatwillrequireunbudgetedcapitalexpendituresormaterialincrease theProject’soperatingbudgetorcouldreasonablyresultinaMaterialAdverseChange,(vii)Seller has made available to Buyer complete copies of all material environmental studies, reports, assessments, and data regarding the Project and the Project Site and all material correspondence with Governmental Authorities concerning any actual or alleged non-compliance with EnvironmentalLaworanyeventorcircumstancethathasresultedorcouldreasonablybeexpected to result in a material liability or material adverse effect on the Project or the Project site in its possession or control, (viii) the Project Company has not, either expressly or by operation of Applicable Law, assumed or undertaken any material liability, including any obligation for corrective or remedial action, of any other Person relating to Environmental Laws, and (viii) the Project Company has maintained at all times during its ownership of the Project all financial assurances (including any bonds, letters of credit, insurance or trust accounts) as required under EnvironmentalLawfortheownership,development,operationandmaintenanceoftheProjectand Schedule 14contains a list of all financial assurances and accruals that the Project Company is required to maintain.
(p)NoCondemnation.Nocondemnationispendingor,toSeller’sKnowledge, threatened in writing with respect to the Project, or any portion thereof material to the ownership or operation of the Project, and no unrepaired casualty exists with respect to the Project or any portion thereof material to the ownership or operation of the Project or the sale of electricity therefrom.
(q)EnergyRegulatoryMatters.
(1)The sale of the Project Company to Purchaser will not (i) cause Purchaser, Investor or any of their direct or indirect owners to become subject to, or not exempt from, regulation (A) as a “public utility” under the FPA, or (B) as a “holding company” under PUHCA, except solely with respect to one or more “exempt wholesale generators,”“foreignutilitycompany,”and/or“qualifyingfacilities”asthosetermsare defined in FERC’s regulations; or (ii) require the prior approval of FERC pursuant to the FPA or the Kentucky Public Service Commission pursuant to Applicable Law;
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(2)The Project Company will be an “exempt wholesale generator” pursuantto18C.F.R.§366.1ofFERC’sregulationsandProjectCompanyshallhavefiled or will file with FERC a notice of self-certification of exempt wholesale generator status pursuant to 18 C.F.R. § 366.7(a) of FERC’s regulations, or have obtained or will obtain fromFERCadetermination,pursuantto18C.F.R.§366.7(b)ofFERC’sregulations,with respecttosuchstatus,ineachcaseonorbeforethedateonwhichtheSystemfirstgenerates testpower.TheProjectCompanywillobtainfromFERCauthorizationtomakewholesale sales of electric energy, capacity and certain ancillary services at market-based rates, togetherwithblanketauthorizationsandwaivers oftherequirementsoftheFPAtypically granted by FERC to entities with such market-based rate authorization, including, but not limitedto,blanketauthorizationtoissuesecuritiesandassumeliabilitiesunderSection204 oftheFPA,withsuchauthorizationsandwaiverstobecomeeffectiveonorbeforethedate on which the System first generates test power.
(r)Sanctions and Anti-Money Laundering: No part of the proceeds from the Capital Contributions (A) will be, directly or knowingly indirectly, used or otherwise lent, contributed, or otherwise made available, to any Person, (x) to fund any activity, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, in each case, to the extent such activity, business ortransaction would beprohibited by Sanctions, or(y)in any other mannerthatwouldresultinaviolationofSanctionsbyanypartyhereto;(B)willbeused,directly orknowinglyindirectly,inviolationofAnti-MoneyLaunderingLaws;or(C)willbeused,directly or knowingly indirectly, in furtherance of an offer, payment, promise to pay or authorization of the payment or giving of money, or anything else of value, to any Person in violation of Anti-Money Laundering Laws.
(s)Employees; ERISA. The Project Company does not nor has ever had any employees or any responsibility for any liabilities or obligations in connection with any Benefit Plan.The Project Company does not maintain or participate in, and has not, at any time in the past,sponsored,maintainedorparticipatedin,anyBenefitPlansubjecttoSection412oftheCode or Title IV of ERISA.
(t)Affiliate Transactions. Schedule 11 contains a list of all contracts entered into between the Project Company and any Affiliate of Seller or otherwise between any two or more of Seller and its Affiliates with respect to the Project.
(u)Books and Records. True and complete copies of the Books and Records have been provided to Purchaser.
(v)Brokers. Neither Seller nor any of its Affiliates has engaged any broker, finderoragentinconnectionwiththetransactionscontemplatedbythisAgreementthatcouldgive rise to any claim against Purchaser, the Project Company or any of Purchaser’s Affiliates for any brokerageorfinder’scommission,feeorsimilarcompensationinconnectionwiththetransactions contemplated by this Agreement.
(w)ConductofBusiness.NeitherSellernortheProjectCompanyhasconducted any business other than in connection with the development, construction, ownership, operation
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andmaintenanceoftheProjectandotheractivitiesincidentalorrelatedtheretoand,inthecaseof Seller, ownership of the Project Company.
(x)DISCLAIMERS. EXCEPT AS OTHERWISE AGREED BY SELLER (INCLUDING IN SECTION3.4) AND EXCEPT FOR THE REPRESENTATIONS AND WARRANTIESSETFORTHINTHISARTICLE3,AND IN ANY WRITTENCERTIFICATE OR NOTICE DELIVERED PURSUANT TO THIS AGREEMENT, THE SYSTEM IS BEING DELIVERED BY SELLER TO PURCHASER “AS IS, WHERE IS” AND SELLER EXPRESSLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, AS TO LIABILITIES, OPERATIONS OF THE SYSTEM OR PROJECT, VALUE OR QUALITY OF THE SYSTEM OR PROJECT OR THE PROSPECTS (FINANCIALANDOTHERWISE), RISKS ANDOTHER INCIDENTS OFTHE SYSTEM OR PROJECT. EXCEPT AS OTHERWISE AGREED BY SELLER AND EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE 3, AND IN ANY CERTIFICATE OR CLOSING NOTICE AND CERTIFICATE DELIVERED PURSUANT TO THIS AGREEMENT, SELLER SPECIFICALLY DISCLAIMS ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY, USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO SELLER OR THE SYSTEM OR PROJECT, OR ANY PART THEREOF.
3.2RepresentationsandWarrantiesofPurchaser.
Purchaserrepresentsandwarrants,withrespecttoitself,toSellerasfollowsasofthe Effective Date, Purchase Date and the Final Funding Payment Date:
(a)Organization,GoodStanding,Etc.Purchaserisalimitedliabilitycompany duly formed, validly existing and in good standing under the laws of the State of Delaware, and has the requisite limited liability company power and authority to own, lease and operate its properties and to carry on its business as being conducted on the date hereof.
(b)Authorization,ExecutionandEnforceability.Purchaserhasfullpowerand authority to execute and deliver the Transaction Documents to which it is a party and to consummate the Transactions contemplated thereby. The execution and delivery by Purchaser of the Transaction Documents to which it is a party and the consummation by Purchaser of the Transactions contemplated thereby have been duly and validly authorized by all necessary companyactionrequiredonthepartofPurchaser,andtheTransactionDocumentsexecutedatthe timethisrepresentationismade,havebeendulyandvalidlyexecutedanddeliveredbyPurchaser. EachoftheTransactionDocuments(assumingdueauthorization,executionanddeliverybySeller) to which Purchaser is a party constitutes the legal, valid and binding agreement of Purchaser, enforceableagainstPurchaserinaccordancewithitsterms,exceptasenforcementmaybelimited byapplicablebankruptcy,insolvency,reorganization,moratoriumorsimilarlawsaffecting creditors’rightsgenerallyandbygeneralprinciplesofequity(regardlessofwhetherconsideredin a proceeding in equity or at law).
(c)No Violation. The execution and delivery by Purchaser of this Agreement and the other Transaction Documents to which Purchaser is a party do not, and the performance
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by Purchaser of Purchaser’s obligations hereunder and thereunder shall not, (i)violate any laws, statutes, rules, regulations, ordinances, judgments, settlements, orders, decrees, injunctions and writsofanyGovernmentalAuthorityhavingjurisdictionoverPurchaser,(ii)conflictwithorcause abreachofanyprovisioninthecharter,bylawsorotherorganizationaldocumentofPurchaser,or (iii)causeabreachof,constituteadefaultunder,causetheaccelerationof,createinanypartythe right to accelerate, terminate, modify or cancel, or require any authorization, consent, waiver or approvalunderanycontract,license,instrument,decree,judgmentorotherarrangementtowhich PurchaserisapartyorunderwhichitisboundortowhichanyofitsAssetsaresubjectexcept(in thecaseofthis clause(iii))forany that would not materially impairor be reasonably expected to materiallyimpairtheabilityofPurchasertomeetorperformitsobligationsundertheTransaction Documents.
(d)Legal Proceedings. There is no pending or, to Purchaser’s knowledge, threatened litigation, claim, action, suit, proceeding or governmental investigation against Purchaser or which seeks the issuance of an order restraining, enjoining or otherwise prohibiting or making illegal the consummation of any of the Transactions contemplated by this Agreement, other than any such instance that would not materially impair or be reasonably expected to materiallyimpairtheabilityofPurchasertomeetorperformitsobligationsundertheTransaction Documents.
3.3NoOtherSellerRepresentations.
Without limiting the foregoing, except with respect to the representations and warranties of Seller set forth in this ARTICLE 3, in any certificate or notice delivered pursuant to this Agreement or expressly set forth as representations and warranties in the other Transaction Documents, Seller makes no additional representation or warranties.
3.4Installation;DefectsWarranty.
Sellerwarrantsthat(a)theSystemandSeller’sconstructionoftheSystemshallconsistof new and unused equipment and parts in good quality and condition and either (i)the warranties fortheProjectshall,bytheirterms,runtothebenefitoftheProjectCompanyorsuchotherPerson that owns such equipment or the solar energy generating system into which such equipment is incorporated or (ii)Seller shall transfer or cause to be transferred the manufacturers’ warranties fortheProjecttoPurchaser,tobeeffectiveasoforpriorto “FinalCompletion”(asdefinedinthe EPCContract),and(b)theInstallationshallbefreefrommaterialdefectsindesign,materialsand workmanship under normal operating conditions (the “Warranty”); provided, however, that this Warranty shall not include any warranty statements beyond the scope of this Warranty. Upon a breachoftheWarranty,theSellerwill,uponnoticefromPurchaser,O&MServiceProviderorthe OfftakerofaWarrantyclaim,atSeller’ssoleoption,eitherrepairorreplaceanydefectivepartsor construction,includingbycausingtheEPCContractor,itssubcontractorsoramanufacturerto repair or replace such defective parts or construction. The Seller shall have reasonable access to the Project site to the extent permitted by the Offtake Agreement, as necessary to perform its WarrantyobligationsunderthisAgreement.ThisWarrantyappliessolelytotheSystem anddoes not include site work, including but not limited to, grading and landscape maintenance, if
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applicable;provided,however,theSellershall,atitsexpense,repairanydamagetotheProjectsite caused by Seller or its Affiliates.
3.5Insurance.
Until the Purchase Date, Seller will procure and maintain, or cause the Project Company toprocureandmaintain,atnodirectcosttothePurchaser,insurancesubstantiallyinthetypesand amounts listed in Schedule 8attached hereto covering the activities of its employees and representatives and the EPC Contractor in connection with this Agreement.
3.6Reporting.
Until the Final Funding Payment Date, Seller will provide to Purchaser each report providedbySellerpursuanttoSection5.4oftheCreditAgreementpromptlyuponprovidingsuch report thereunder.
ARTICLE 4
TERMINATION
4.1Termination.
(a)TheobligationstopurchaseandselltheProjectunderthisAgreementshall automatically terminate on the Completion Deadline. No such termination shall diminish, terminate or suspend the Parties’ other rights and obligations under this Agreement.
(b)Without limiting Seller’s or Purchaser’s ability to exercise any right or remedy to which it is entitled hereunder or under any other Transaction Documents, this Agreement may be terminated at any time:
(1)by the non-defaulting Party if the other Party voluntarily commences bankruptcy, insolvency, reorganization, stay, moratorium or similar debtor-relief proceedings, or makes an assignment for the benefit of creditors;
(2)by the non-defaulting Party if insolvency, receivership, reorganization,bankruptcyorsimilarproceedingsshallhavebeencommencedagainstthe otherPartyandsuchproceedingsremainundismissedorunstayedforaperiodofsixty (60)days;
(3)by Seller or Purchaser, upon prior written notice to the other Party, in the event Seller (withrespect to a termination by Purchaser) or Purchaser (with respect to atermination by Seller)is in material breach of arepresentation, warranty, covenant or provisioncontainedinthisAgreement,andsuchbreachshallnotberemediableor,if remediable,shallcontinueunremediedforaperiodequalto(i)twenty(20)BusinessDays (provided,that suchperiodshallbeextendedtoninety(90)daysso longassuchbreachis remediableandthedefaultingPartyisdiligentlypursuingthecureofsuchbreach)or,(ii)if such breach can be cured by making a payment, five (5) Business Days;
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(4)automaticallyandwithoutfurtheractionbyeither Partyonthedate on which the LLC Agreement is terminated; and
(5)bythemutualwrittenconsentofSellerandPurchaser.
4.2ProcedureandEffectofTermination.
(a)ThePartydesiringtoterminatethisAgreementpursuanttoSection4.1shall give written notice of such termination to the other Party in accordance with Section6.6, specifying the provision pursuant to which such termination is affected.
(b)If this Agreement is terminated pursuant to Section4.1(b)by Seller, Purchaser,orwiththeconsentofSellerandPurchaser,thenthisAgreementshallbeterminatedin its entirety as of the date of such termination with no liability on the part of any Party hereto; provided, however, that (i)Section 3.4, this Section4.2, Sections 4.3and 4.4, ARTICLE 5and ARTICLE 6shall survive the termination and (ii)no such termination shall relieve any Party of any liability or damages resulting from any breach by that Party of this Agreement or affect the rights oftheotherParty to indemnification forsuch breach norshall any such termination relieve any Party of any obligations that arose pursuant to this Agreement prior to such termination.
(c)If this Agreement is terminated (other than by Seller pursuant to Section4.1(b)(3))after the Purchase Date but prior to when the Final Funding Payment is made by Purchaser, then Seller shall reimburse the Initial Funding Payment to Purchaser within five (5) Business Days following such termination.
4.3IndemnificationbySeller.
(a)ExceptwithrespecttoanyTaxLoss,Sellershalldefend,indemnify andholdharmlessPurchaser,itsdirectorindirectequityowners(includingInvestor),theAffiliates of each (specifically including any Subsidiary of Purchaser), and its and their respective officers, directors, employees and agents (“Purchaser Indemnified Parties”) from and against any Losses resultingfrom(i)aSponsorTransactionParty’sbreachofanyrepresentation,warrantyorcovenant underthisAgreementortheotherTransactionDocuments,(ii)anyviolationofanyEnvironmental LawbytheSelleroritsAffiliatesrelatedtotheProjectortheinstallationthereofor(iii)theProject not having obtained the Subdivision Approval. In no event shall the aggregate liability of Seller under this Agreement with respect to the Purchaser Indemnified Parties and of the Class B Members under the LLC Agreement with respect to the Investor Indemnified Parties collectively exceedtheMaximumLiability;providedthattheMaximumLiabilitylimitationshallnotapplyto Lossesresulting,directlyorindirectly,from(x)thefraud,grossnegligenceorwillfulmisconduct of Seller or any Sponsor Transaction Party, (y)any Third Party Claims, or (z) breaches of the representationsand warrantiesinSections3.1(a), 3.1(b),3.1(c)(i),3.1(c)(ii),and3.1(l);provided, further, that in no event will Seller be responsible for any such Losses of Purchaser or any Purchaser IndemnifiedPartytotheextentcausedbyaPurchaser IndemnifiedParty’sfraud,gross negligence or willful misconduct.
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(b)If as a result of the breach or inaccuracy of a representation, warranty or covenant of Seller in this Agreement, any Purchaser Indemnified Party loses the benefit of, does nothavetherighttoclaim,suffersadisallowanceordeferralof,orissubjecttorecaptureofallor any portion of the Tax Credits or MACRS Deductions assumed in the Applicable Model, or is required to include amounts in gross income in amounts greater than assumed in the Applicable Model,ortheTaxCreditswithrespecttotheProjectarenot claimableinthetaxyearreflectedin theBaseCaseModeldeliveredpursuanttoSection2.4(p)(iftheFinalFundingPaymentDatehas not occurred)or2.5(x)(iftheFinal Funding Payment Datehas occurred), in each case regardless ofwhethersuch inabilitytoclaimsuch Tax Creditsinsuchyearistheresultofchanged facts and circumstancesoristheresultofadeterminationbytheIRS,(eacha“TaxLoss”),thenSellershall indemnify the Purchaser for such Tax Loss in the amount determined pursuant to Section4.3(c), providedthatSeller’sobligationshallbereducedbytheamountofanyTaxBenefitsuchPurchaser Indemnified Party realizes or is reasonably expected to realize as a result of such Tax Loss and that such Purchaser Indemnified Party would not have realized but for such Tax Loss. Notwithstanding the previous sentence, Seller will not be required to indemnify the Purchaser to theextentaTaxLossisattributableto(i)thegrossnegligenceorwillfulmisconductofaPurchaser IndemnifiedPartyoritsAffiliates,(ii)thebreachofanyrepresentationorwarrantybyaPurchaser IndemnifiedPartyoritsAffiliatesintheTransactionDocuments,(iii)aChangeinApplicableLaw (includingaChangeinTaxLaw)occurringafterdeliveryoftheTrue-UpBaseCaseModel,(iv)the inaccuracy ofany Fixed Tax Assumptions that results in thereduction, disallowance or recapture of any portion of the Tax Credits or MACRS Deductions allocated to the Class A Member under the LLC Agreement, unless they are incorrect due to a breach by the Seller of any of its representations, warranties or covenants in this Agreement, or (v) a transfer of the Class A Membership Interests.
(c)(1) Seller shall pay Purchaser upon a Final Determination the amount of any Tax Loss for which Seller is liable under Section 4.3(b), plus any related interest, fines, additions and penalties. For the avoidance of doubt, it is understood and agreed that the calculation of the amount payable pursuant to this Section4.3(c)(1)shall take into account any adjustmentsinotherTaxBenefitsasaresultofthepaymentmadepursuanttothisSection4.3(c)(1)and any U.S.federal incometax savings realized by thePurchaser Indemnified Parties as aresult of the Tax Loss or the payment pursuant to this Section 4.3(c)(1).
(2)ForTaxreportingpurposes,tothemaximumextentpermittedbythe Code,eachPartywillagreetotreatallamountspaidpursuanttothisSection4.3asanon-Taxable reimbursement of Project Purchase Price. To the extent any such payment is includableasincomeofaPurchaserIndemnifiedPartyasdeterminedasaresultofaFinal Determination, by agreement of the Parties or, if there is no Final Determination or agreement, by an opinion of a nationally-recognized Tax counsel selected jointly by Purchaser Indemnified Party and Seller that such amount is “more likely than not” includableasincomeofthePurchaserIndemnifiedParty,theamountofthepaymentshall be increased by the amount of any U.S.federal income tax required to be paid by the Purchaser Indemnified Party upon the receipt or accrual of the payment. For purposes of calculating the amount required to be paid and any resulting U.S. federal income tax savings if a payment pursuant to this Section4.3is includable as income of a Purchaser
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Indemnified Party, (A)each Purchaser Indemnified Party shall be deemed to havepaid or to be required to pay U.S.federal income taxes for the relevant periods at the maximum marginal federal income rates generally applicable to C-corporations whose taxable year is the calendar year in the taxable years in question, and (B)it will be assumed that each Purchaser Indemnified Party will have sufficient taxable income for U.S.federal income taxpurposes tofullyutilizeonacurrentbasis anyTaxBenefitsresultingfrom aTaxLoss or the events giving rise thereto.
(d)All claims by a Purchaser Indemnified Party for indemnification pursuant to this Agreement resulting from breaches of representations or warranties in any Transaction DocumentshallbeforeverbarredunlesstheSellerisnotifiedwithintwenty-four(24)monthsafter thedatesuchrepresentationorwarranty wasmade; providedthat,notwithstandingtheforegoing, (i) the representations and warranties in Section 3.1(g)shall survive until ninety (90) days following the expiration of the applicable statute of limitations (taking into account any waivers or extensions thereof), (ii) the representations and warranties in Sections 3.1(a), 3.1(b), 3.1(c)(i), 3.1(c)(ii),and3.1(l)shallsurviveindefinitelyand(iii)therepresentationsandwarrantiesinSection3.1(o)shall survive until the date that is sixty (60) days following the expiration of the longest statute of limitations applicable to such claim.
(e)No claim for indemnification may be made with respect to any Losses of the Purchaser Indemnified Parties (other than with respect to Third Party Claims, fraud, gross negligence, willful misconduct) until the aggregate amount of such Losses sought by (or previously sought by) the Purchaser Indemnified Parties under this Agreement and all other Transaction Documents exceeds One Hundred Thousand Dollars ($100,000) in the aggregate; providedthat such threshold shall not apply to any indemnification claims made with respect to anyTaxLoss;providedfurther,thatoncesuchthresholdamountofclaims(otherthanwithrespect to any claims for Tax Loss which shall have no threshold) has been reached, then the Purchaser Indemnified Parties and their Affiliates shall have the right to be indemnified with respect to all suchclaims,includingamountsthatwerenotpreviouslypaidbecausesuchthresholdhadnotbeen reached. Claims for indemnification under this Agreement and the other Transaction Documents shall not be duplicative of one another and shall not allow for duplicative recoveries.
4.4IndemnificationbyPurchaser.
Purchaser shall defend, indemnify and hold harmless Seller, its Affiliates and their respectivemembers,officers,directors,employeesandagents(“SellerIndemnifiedParties”)from andagainstanyLossesarisingunderorrelatingtoPurchaser’sperformanceornonperformanceof Purchaser’sobligationsunderthisAgreement.InnoeventshalltheaggregateliabilityofPurchaser under this Agreement with respect to Seller Indemnified Parties exceed one hundred percent (100%)ofthetotalProjectPurchasePrice;providedthattheLossesresulting,directlyorindirectly, from(i)the fraud,grossnegligenceor willfulmisconductof thePurchaseror (ii)anyThirdParty Claimsshallnotbesubjecttosuchindemnitycap;provided,further,thatinnoeventwillPurchaser be responsible for any such Losses of Seller to the extent caused by Seller Indemnified Party’s fraud, gross negligence or willful misconduct.
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4.5NoConsequentialDamages.
EXCEPT AS MAY BE EXPRESSLY PROVIDED HEREIN AND EXCEPT FOR INDEMNIFIED THIRD PARTY CLAIMS PURSUANT TO SECTION4.3OR SECTION4.4, AS APPLICABLE, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTYUNDERTHISAGREEMENTOROTHERWISEFORCONSEQUENTIAL,SPECIAL, INCIDENTAL,EXEMPLARY,STATUTORYORPUNITIVEDAMAGESARISINGOUTOF OR RELATED TO THIS AGREEMENT WHETHER ANY ACTION OR CLAIM IS BASED ON WARRANTY, CONTRACT, TORT OR OTHERWISE; PROVIDEDTHAT A LOSS OR INABILITY TO CLAIM TAX CREDITS OR OTHER ADVERSE TAX CONSEQUENCES SHALL NOT BE TREATED AS CONSEQUENTIAL, SPECIAL, INCIDENTAL, EXEMPLARY, STATUTORY OR PUNITIVE DAMAGES.
4.6IndemnificationProcedures.
(a)ExceptwithrespecttoaTaxLoss,eachofSeller’sobligationsinSection4.3and Purchaser’s obligations in Section4.4above (each, as applicable, the “Indemnifying Party”) withrespecttoanyThirdPartyClaimarecontingentuponSellerIndemnifiedPartiesorPurchaser IndemnifiedParties(each,asapplicable,the“Indemnitee”),promptlynotifyingtheIndemnifying Partyinwritingofsuchclaimandpromptlytenderingthecontrolofthedefenseandsettlementof any such claim to the Indemnifying Party at the Indemnifying Party’s expense and with the Indemnifying Party’s choice of counsel. In connection with the foregoing, the indemnification obligationofIndemnifyingPartytotheIndemniteeshallbereducedifandtotheextentthefailure of an Indemnitee to provide such notice and tender of control actually prejudices the outcome of any such claim; providedthat the foregoing shall not apply so long as the Managing Member of Purchaser is an Affiliate of Seller. The Indemnitee shall also cooperate with the Indemnifying Party,attheIndemnifyingParty’sexpense,indefendingorsettlingsuchclaimandtheIndemnitee mayjoinindefensewithcounselofitschoiceatitsownexpense.AnIndemnifyingPartymaynot, without the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed) of an Indemnitee, settle, compromise or consent to the entry of any judgment regarding a Third Party Claim, the defense of which has been assumed by the Indemnifying Party unless suchsettlement,compromiseorconsent(i)doesnotcontainanyadmissionorstatementsuggesting any wrongdoing or liability on behalf of the Indemnitee; and (ii)does not contain any equitable order,judgment orterm thatinanymanneraffects,restrainsorinterfereswiththebusinessofthe Indemnitee or any of the Indemnitee’s Affiliates. An Indemnitee may not settle, compromise or consent to the entry of any judgment regarding any Third Party Claim for which indemnification is sought and the defense of which has not been assumed by the Indemnifying Party without the prior written consent of the Indemnifying Party, such consent not to be unreasonably withheld, conditioned or delayed.
(b)In the case of indemnification in respect of a Tax Loss, Seller shall pay to Purchaseranyrequiredindemnitywithinten(10)daysofPurchaser’snoticetoSellerofsuchTax Loss accompanied by a written statement describing in reasonable detail such Tax Loss and the computation of the amount so payable. Any dispute regarding the amount payable pursuant to Section4.3(c)(1)in respect of such Tax Loss shall be resolved pursuant to the dispute resolution
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procedures described in Section11.11(c)of the LLC Agreement revised mutatis mutandis to reflect Seller and Purchaser hereunder instead of Managing Member and the Disputing Member, as those terms are defined in the LLC Agreement.
ARTICLE 5
SUBMISSIONTOJURISDICTION
THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN NEW YORK COUNTYINTHESTATEOFNEWYORK.EACHPARTYHEREBYWAIVESANYRIGHT ITMAYHAVETOASSERTTHEDOCTRINEOFFORUMNONCONVENIENSORSIMILAR DOCTRINE OR TO OBJECT TO VENUE WITH RESPECT TO ANY PROCEEDING BROUGHT IN ACCORDANCE WITH THIS SECTION. EACH PARTY HERETO IRREVOCABLYANDUNCONDITIONALLYWAIVESTRIALBYJURYINANYACTION, SUIT OR PROCEEDING RELATING TO A DISPUTE AND FOR ANY COUNTERCLAIM WITHRESPECTTHERETO.EACHPARTYACKNOWLEDGESTHATITANDTHEOTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. EACH PARTY HEREBY AUTHORIZES AND ACCEPTS SERVICE OF PROCESS SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST IT AS CONTEMPLATED BY THIS ARTICLE 5BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, TO ITS ADDRESS FOR THE GIVING OF NOTICES AS SET FORTH IN SECTION6.6. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.
ARTICLE 6
GENERALPROVISIONS
6.1ExhibitsandSchedules.
AllExhibitsandSchedulesattachedheretoareincorporatedhereinbyreference.
6.2Amendment,ModificationandWaiver.
ThisAgreementmaynotbeamendedormodifiedexceptbyaninstrumentinwritingsigned bythePartyagainstwhichenforcementofsuchamendmentormodificationissought.Anyfailure ofSellerorPurchasertocomplywithanyobligation,covenant,agreementorconditioncontained hereinmaybewaivedonlyifsetforthinaninstrumentinwritingsignedbythePartytobebound thereby,butsuchwaiverorfailuretoinsistuponstrictcompliancewithsuchobligation,covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any other failure.
EachParty’srightsandremediesunderthisAgreementareintendedtobedistinct,separate and cumulative and no such right or remedy therein or herein mentioned, whether exercised by such Party or not, is intended to be an exclusion or a waiver of any of the others.
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6.3Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Applicable Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as theeconomicorlegal substance of the Transactions contemplated herein are not affected in any manner materially adverse to any Party.
6.4Expenses.
With the exception of the Closing Expenses and the Post-Closing Expenses, each Party shall be responsible for all of its own legal costs, fees and expenses in connection with the TransactionscontemplatedbythisAgreementandtheotherTransactionDocumentstowhichitis a party.
6.5PartiesinInterest.
This Agreement shall be binding upon and, except as provided below, inure solely to the benefit of each Party and their successors and permitted assigns, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement, unless otherwise expressly set forth herein.
6.6Notices.
All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, by a nationally recognized overnight courier or by electronic mail transmission ormailed by registered or certified mail to theParties at the following addresses (or at such other address for a Party as shall be specified by like notice):
(a)If to the Seller, to:
MN8DevCo3LLC
c/oMN8EnergyLLC
1155AvenueoftheAmericas,27thFloor
New York, NY 10036
Attn:Legal
Email:notices@mn8energy.com
withacopy(whichshallnotconstitutenotice)to:
Holland & Knight LLP
811 Main St, Suite2500
Houston,TX77002
Attn:RamSunkaraand MadeleineTan
Email:Ram.Sunkara@hklaw.com;Madeleine.Tan@hklaw.com
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(b)IftoPurchaser,to:
MN8FMGLLC
c/oMN8EnergyLLC
1155AvenueoftheAmericas,27thFloor
New York, NY 10036
Attn:Legal
Email:notices@mn8energy.com
and:
AffiliatedFMInsuranceCompany
270 Central Avenue
P.O.Box 7500
Johnston, RI02919
Attn:PamelaGriffing,StaffSeniorVicePresident,ChiefTaxOfficer
Withcopiesto:
BlueCurrentCapitalPartners,LLC
1792 Brookhaven Court
Auburn,AL36830
Attn: Bryan Mills
Email:bmills@bluecurrentcp.com&
and:
AkinGumpStraussHauer&FeldLLP
2001 K Street, N.W.
Washington,DC20006
Attn: Shariff Barakat
Email:sbarakat@akingump.com
All notices and other communications given in accordance herewith shall bedeemed given (i)on the date of delivery, if hand delivered, (ii)on the date of receipt, if sent by electronic mail, or if such date is not a Business Day, the next Business Day following the date of receipt, providedsendercananddoesprovideevidenceofsuccessfultransmission,(iii)onthefifth(5th)Business Dayafterthedateofmailing,ifmailedbyregisteredorcertifiedmail,returnreceiptrequested,or (iv)onthesecond(2nd)BusinessDayafterthedateofsending,ifsentbyanationallyrecognized overnightcourier;providedthatanoticegiveninaccordancewiththisSection6.6butreceivedon any day other than a Business Day or after5:00 p.m. New York time, on a Business Day in the place of receipt shall be deemed given on the next Business Day in that place.
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6.7Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.
6.8EntireAgreement.
ThisAgreementconstitutestheentireagreementamongthePartiesandsupersedesallprior agreements, letters of intent and understandings, both written and oral, among the Parties with respect to the subject matter hereof.
6.9GoverningLaw.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCEWITHTHELAWSOFTHESTATEOFNEWYORK,UNITEDSTATES OF AMERICA, WITHOUT REFERENCE TO CONFLICTS OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
6.10Public Announcements.
The Parties agree that neither may, except to the extent required by applicable law, any governmental, judicial or regulatory authority or agreements or regulations of any stock or commodities exchange (and then only with as much prior written notice to and/or consultation with the other Party as is practical under the circumstances), issue any press release or make any other public announcements that references the other Party (or any of its direct or indirect equity owner’s)withoutthepriorwrittenconsentofsuchotherPartyandtheInvestor.NeitherPartyshall make any kind of public announcement that references any equity ownership of the Investor without the prior written consent of the Investor.
6.11Assignment.
Neither Party shall assign this Agreement without the prior written consent of the other Party, in its sole discretion. Any attempted assignment of this Agreement other than in strict accordance with this Section 6.11shall be null and void and of no force or effect.
6.12RelationshipofParties.
ThisAgreementdoesnotconstituteajointventure,associationorpartnershipbetweenthe Parties.Noexpressorimpliedterm,provisionorconditionofthisAgreementshallcreate,orshall be deemed to create, an agency, joint venture, partnership or any fiduciary relationship between the Parties.
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6.13SuccessorsandAssigns.
This Agreement shall inure to the benefit of each Party and each Party’s successors and permittedassigns, andshall bebindingupon and enforceable against each Partyand eachParty’s successors and permitted assigns.
6.14Access.
PurchaserherebygrantsSelleranditsauthorizedagents,employeesandAffiliatestheright toaccessanytheProjectforthepurposeofSellerperformingitsobligationsunderthisAgreement and the Offtake Agreement. Seller hereby accepts such access rights, and further accepts the conditionsatthesiteoftheProjectasitexists,andacknowledgesthatPurchaserhasnoobligation to grant Seller additional access rights orto changethe conditions at theProject site. Such access rights granted pursuant to this Agreement will automatically expire immediately upon the termination or expiration of this Agreement.
6.15JointEffort.
Preparation of this Agreement has been a joint effort of the Parties and the resulting document shall not be construed more severely against one of the Parties than against the other. AnyruleofconstructionthatambiguitiesaretoberesolvedagainstthedraftingPartyshallnotbe employed in the interpretation of this Agreement, or any amendments hereto.
[Remainderofpageintentionallyleftblank]
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IN WITNESS WHEREOF, each Party hereto has caused this Agreement to be signed on its behalf as of the date first written above.
| SELLER: | ||||||||
| MN8 DEVCO 3 LLC,aDelawarelimitedliability company | ||||||||
| By: | ||||||||
| Name: [ó] | ||||||||
| Title: [ó] | ||||||||
| PURCHASER: | ||||||||
| MN8 FMG LLC,a Delaware limited liability company | ||||||||
| By: | ||||||||
| Name: [ó] | ||||||||
| Title: [ó] |
Signature Page to DPA
MN8 FMG LLC
EXHIBIT E
AmendedCreditAgreement
CREDITAGREEMENT
DATEDASOFDecember31,2024
AMONG
MN8DEVCO3LLC
asDevcoBorrower,
MN8BLEEKERLLC
asOpcoBorrower,
THELCISSUERSPARTYHERETOFROMTIMETOTIME,
THE LENDERS PARTY HERETO FROM TIME TO TIME,
NATIXIS, NEW YORK BRANCH,
asAdministrativeAgent,
NATIXIS,NEWYORKBRANCH,
asCollateralAgent
and
NATIXIS,NEWYORKBRANCH,
asCoordinatingLeadArranger,SoleBookrunnerandStructuringAgent,
______________________________________________________
AMERICANBEECHPROJECT,comprisinganapproximately196MWDC,140MWACsolar photovoltaic energy project located in Halifax County, North Carolina,
BLUEBIRDPROJECT,comprisinganapproximately137.6MWDC,100MWACsolar photovoltaic energy project located in Harrison County, Kentucky
and
PRAIRIEPROJECT,comprisinganapproximately183MWDC,135MWACsolarenergy photovoltaic project located in Champaign County, Illinois.
TABLEOFCONTENTS
| SECTION | HEADING | PAGE | ||||||
| SECTION 1. DEFINITIONS; INTERPRETATION | 1 | |||||||
| Section 1.1. | Definitions | 1 | ||||||
| Section 1.2. | Interpretation | 65 | ||||||
| Section 1.3. | Change in GAAP | 65 | ||||||
| Section 1.4. | Letter of Credit Amounts | 66 | ||||||
| Section 1.5. | Divisions | 66 | ||||||
| Section 1.6. | Project Sale; Permitted Tax Equity Arrangement | 66 | ||||||
| SECTION 2. THE CREDIT FACILITIES | 67 | |||||||
| Section 2.1. | Construction Loan Facility | 67 | ||||||
| Section 2.2. | Bridge Loan Facility | 68 | ||||||
| Section 2.3. | Upsize Bridge Loan Facility | 69 | ||||||
| Section 2.4. | Letter of Credit Facility | 70 | ||||||
| Section 2.5. | Applicable Interest Rates | 76 | ||||||
| Section 2.6. | Deemed Borrowings; LC Loans; Type | 77 | ||||||
| Section 2.7. | Manner of Borrowing Loans, Designating Applicable Interest Rates and Construction Loan Funding | 77 | ||||||
| Section 2.8. | Prepayments | 78 | ||||||
| Section 2.9. | Default Rate | 83 | ||||||
| Section 2.10. | Evidence of Indebtedness | 83 | ||||||
| Section 2.11. | Funding Indemnity | 84 | ||||||
| Section 2.12. | Total Commitments | 84 | ||||||
| Section 2.13. | Substitution of Lenders | 87 | ||||||
| Section 2.14. | Defaulting Lenders | 87 | ||||||
| SECTION 3. FEES | 90 | |||||||
| Section 3.1. | Fees | 90 | ||||||
| SECTION 4. PLACE AND APPLICATION OF PAYMENTS | 92 | |||||||
| Section 4.1. | Place and Application of Payments | 92 | ||||||
| Section 4.2. | Pro Rata Treatment | 93 | ||||||
| SECTION 5. REPRESENTATIONS AND WARRANTIES | 93 | |||||||
| Section 5.1. | Organization, Powers | 94 |
i
| Section 5.2. | Authorization, Enforceability | 94 | ||||||
| Section 5.3. | Disclosure | 94 | ||||||
| Section 5.4. | Financial Condition; No Material Adverse Effect | 95 | ||||||
| Section 5.5. | No Conflicts | 95 | ||||||
| Section 5.6. | Applicable Laws | 95 | ||||||
| Section 5.7. | Existing Defaults | 95 | ||||||
| Section 5.8. | Environmental Matters; Equator Principles | 95 | ||||||
| Section 5.9. | Litigation | 96 | ||||||
| Section 5.10. | Default | 96 | ||||||
| Section 5.11. | Taxes | 96 | ||||||
| Section 5.12. | Permits | 98 | ||||||
| Section 5.13. | Intellectual Property | 99 | ||||||
| Section 5.14. | Insurance | 99 | ||||||
| Section 5.15. | Project Documents | 99 | ||||||
| Section 5.16. | Compliance with Employee Benefit Plan | 100 | ||||||
| Section 5.17. | Business, Indebtedness, Contracts, Etc | 100 | ||||||
| Section 5.18. | Margin Regulations | 100 | ||||||
| Section 5.19. | Foreign Assets Control Regulations, Etc | 101 | ||||||
| Section 5.20. | Status | 101 | ||||||
| Section 5.21. | Offices, Locations of Collateral | 102 | ||||||
| Section 5.22. | Bank Accounts | 102 | ||||||
| Section 5.23. | Solvency | 102 | ||||||
| Section 5.24. | Title and Liens | 102 | ||||||
| Section 5.25. | Project Budgets; Project Schedules | 103 | ||||||
| Section 5.26. | Collateral | 103 | ||||||
| Section 5.27. | Ownership of Equity Interests | 103 | ||||||
| Section 5.28. | Completion | 104 | ||||||
| Section 5.29. | Collective Bargaining Agreement; Labor Disputes; Acts of God | 104 | ||||||
| Section 5.30. | Flood Compliance | 105 | ||||||
| SECTION 6. | CONDITIONS PRECEDENT | 105 | ||||||
| Section 6.1. | Conditions Precedent to the Financial Closing Date | 105 | ||||||
| Section 6.2. | Conditions Precedent to Each Construction Loan Borrowing, each Bridge Loan Borrowing | 112 | ||||||
| Section 6.3. | Conditions Precedent to each LC Credit Event | 114 | ||||||
| Section 6.4. | No Approval of Work | 115 | ||||||
| SECTION 7. AFFIRMATIVE COVENANTS | 115 | |||||||
| Section 7.1. | Compliance with Applicable Laws and Governmental Approvals | 115 | ||||||
| Section 7.2. | Insurance | 115 |
ii
| Section 7.3. | Taxes | 116 | ||||||
| Section 7.4. | Maintenance of Existence | 117 | ||||||
| Section 7.5. | Use of Proceeds and Project Revenues | 117 | ||||||
| Section 7.6. | Books and Records; Inspection | 117 | ||||||
| Section 7.7. | Preservation of Rights; Further Assurances | 118 | ||||||
| Section 7.8. | Financial Statements; Reporting Requirements | 119 | ||||||
| Section 7.9. | Notices of Material Events | 120 | ||||||
| Section 7.10. | Delivery of Certain Documents | 122 | ||||||
| Section 7.11. | Electronic Delivery | 123 | ||||||
| Section 7.12. | Beneficial Ownership Certification | 124 | ||||||
| Section 7.13. | Regulatory Status | 124 | ||||||
| Section 7.14. | Operation of Project | 124 | ||||||
| Section 7.15. | Construction of Project; Completion | 124 | ||||||
| Section 7.16. | Special Proceeds | 124 | ||||||
| Section 7.17. | Hedging Requirements | 126 | ||||||
| Section 7.18. | Annual Operating Budget | 126 | ||||||
| Section 7.19. | Event of Eminent Domain | 127 | ||||||
| Section 7.20. | Equator Principles | 127 | ||||||
| Section 7.21. | TC Structure Documents | 128 | ||||||
| Section 7.22. | Tax Credit Transfer Documents | 129 | ||||||
| Section 7.23. | Tax Returns of Each HoldCo | 130 | ||||||
| Section 7.24. | Tax Equity Documents | 130 | ||||||
| Section 7.25. | Post-Closing Covenants | 131 | ||||||
| Section 7.26. | Distributions | 133 | ||||||
| Section 7.27. | Change in Tax Law or Proposed Change in Tax Law | 133 | ||||||
| SECTION 8. NEGATIVE COVENANTS | 134 | |||||||
| Section 8.1. | Indebtedness | 134 | ||||||
| Section 8.2. | Liens | 134 | ||||||
| Section 8.3. | Transactions with Affiliates | 134 | ||||||
| Section 8.4. | Fundamental Change | 134 | ||||||
| Section 8.5. | Line of Business | 135 | ||||||
| Section 8.6. | Anti-Corruption, Anti-Money Laundering and Sanctions | 135 | ||||||
| Section 8.7. | Restricted Payments | 135 | ||||||
| Section 8.8. | Investments | 136 | ||||||
| Section 8.9. | Disposition of Property | 136 | ||||||
| Section 8.10. | Hedging Agreements | 136 | ||||||
| Section 8.11. | Regulations | 136 | ||||||
| Section 8.12. | Additional Project Documents | 136 | ||||||
| Section 8.13. | Amendments; Change Orders | 137 |
iii
| Section 8.14. | Name and Location; Fiscal Year; Accounting Changes | 137 | ||||||
| Section 8.15. | Use of Site | 137 | ||||||
| Section 8.16. | Hazardous Materials | 138 | ||||||
| Section 8.17. | Borrower Accounts | 138 | ||||||
| Section 8.18. | Tax Equity Documents | 138 | ||||||
| Section 8.19. | Partnership; Subsidiaries | 138 | ||||||
| Section 8.20. | Federal Income Tax Matters | 138 | ||||||
| Section 8.21. | Title Policies | 139 | ||||||
| SECTION 9. EVENTS OF DEFAULT AND REMEDIES | 139 | |||||||
| Section 9.1. | Events of Default | 139 | ||||||
| Section 9.2. | Remedies | 144 | ||||||
| Section 9.3. | Liquidation Waterfall | 146 | ||||||
| SECTION 10. CHANGE IN CIRCUMSTANCES | 147 | |||||||
| Section 10.1. | Change of Law | 147 | ||||||
| Section 10.2. | Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, Compounded SOFR | 148 | ||||||
| Section 10.3. | Increased Cost and Reduced Return | 148 | ||||||
| Section 10.4. | Lending Offices | 150 | ||||||
| SECTION 11. THE AGENTS | 150 | |||||||
| Section 11.1. | Appointment and Authorization of the Agents | 150 | ||||||
| Section 11.2. | Agents and Their Affiliates | 151 | ||||||
| Section 11.3. | Action by Agents | 152 | ||||||
| Section 11.4. | Liability of Administrative Agent; Credit Decision | 153 | ||||||
| Section 11.5. | Indemnity | 155 | ||||||
| Section 11.6. | Resignation of Agent and Successor Agent | 156 | ||||||
| Section 11.7. | [Reserved] | 157 | ||||||
| Section 11.8. | Designation of Additional Agents | 157 | ||||||
| Section 11.9. | Erroneous Payments to Administrative Agent | 157 | ||||||
| Section 11.10. | Independent Consultants | 158 | ||||||
| Section 11.11. | Collateral Agent | 159 | ||||||
| SECTION 12. MISCELLANEOUS | 162 | |||||||
| Section 12.1. | Payments Free of Withholding Taxes | 162 | ||||||
| Section 12.2. | Payment of Other Taxes by the Borrower | 162 | ||||||
| Section 12.3. | Indemnification by the Borrower | 162 | ||||||
| Section 12.4. | Evidence of Payments | 162 |
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| Section 12.5. | Status of Lender | 162 | ||||||
| Section 12.6. | Status of the Administrative Agent | 165 | ||||||
| Section 12.7. | Treatment of Certain Refunds | 165 | ||||||
| Section 12.8. | Defined Term | 166 | ||||||
| Section 12.9. | Survival | 166 | ||||||
| Section 12.10. | No Waiver, Cumulative Remedies | 166 | ||||||
| Section 12.11. | Non-Business Days | 166 | ||||||
| Section 12.12. | Survival of Representations | 166 | ||||||
| Section 12.13. | Survival of Indemnities | 166 | ||||||
| Section 12.14. | Sharing of Set-Off | 166 | ||||||
| Section 12.15. | Notices | 167 | ||||||
| Section 12.16. | Counterparts | 168 | ||||||
| Section 12.17. | Successors and Assigns | 169 | ||||||
| Section 12.18. | Participants | 169 | ||||||
| Section 12.19. | Assignments | 170 | ||||||
| Section 12.20. | Amendments | 172 | ||||||
| Section 12.21. | Non-Recourse | 176 | ||||||
| Section 12.22. | Borrower Liability | 177 | ||||||
| Section 12.23. | Headings | 177 | ||||||
| Section 12.24. | Costs and Expenses; Indemnification | 177 | ||||||
| Section 12.25. | Set-off | 179 | ||||||
| Section 12.26. | Entire Agreement | 179 | ||||||
| Section 12.27. | Governing Law | 180 | ||||||
| Section 12.28. | Severability of Provisions | 180 | ||||||
| Section 12.29. | Construction | 180 | ||||||
| Section 12.30. | Lenders’ Obligations Several | 180 | ||||||
| Section 12.31. | Submission to Jurisdiction; Waiver of Jury Trial | 180 | ||||||
| Section 12.32. | USA PATRIOT ACT | 181 | ||||||
| Section 12.33. | Confidentiality | 181 | ||||||
| Section 12.34. | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 182 | ||||||
| Section 12.35. | Limitations on Liability | 182 | ||||||
| Section 12.36. | Acknowledgment Regarding Any Supported QFCs Acknowledgment | 183 | ||||||
| Section 12.37. | Keepwell | 184 | ||||||
| Section 12.38. | Co-Borrower Relationship | 184 |
| EXHIBIT A-1 | — | Form of Notice of Construction Loan Borrowing | ||||||
| EXHIBIT A-2 | — | Form of Notice of Bridge Loan Borrowing | ||||||
| EXHIBIT A-3 | — | Form of Notice of Upsize Bridge Borrowing | ||||||
| EXHIBIT A-4 | — | Form of Notice of Continuation/Conversion |
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| EXHIBIT A-5 | — | Form of Notice of Issuance | ||||||
| EXHIBIT B-1 | — | [Reserved] | ||||||
| EXHIBIT B-2 | — | [Reserved] | ||||||
| EXHIBIT B-3 | — | [Reserved] | ||||||
| EXHIBIT B-4 | — | [Reserved] | ||||||
| EXHIBIT B-5 | — | Form of LC Participating Certificate | ||||||
| EXHIBIT C-1 | — | Form of Construction Loan Note | ||||||
| EXHIBIT C-2 | — | Form of Bridge Loan Note | ||||||
| EXHIBIT C-3 | — | Form of Upsize Bridge Loan Note | ||||||
| EXHIBIT C-4 | — | Form of LC Note | ||||||
| EXHIBIT D-1 | — | U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) | ||||||
| EXHIBIT D-2 | — | U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) | ||||||
| EXHIBIT D-3 | — | U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes) | ||||||
| EXHIBIT D-4 | — | U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes) | ||||||
| EXHIBIT E | — | Form of Assignment and Acceptance | ||||||
| EXHIBIT F-1A | — | Form of IE Reliance Letter (Financial Closing Date) | ||||||
| EXHIBIT F-1B | — | [Reserved] | ||||||
| EXHIBIT F-1C | — | Form of IC Certificate | ||||||
| EXHIBIT F-1D | — | [Reserved] | ||||||
| EXHIBIT F-1E | — | [Reserved] | ||||||
| EXHIBIT F-1F | — | [Reserved] | ||||||
| EXHIBIT F-2A | — | Form of Borrowing Date Certificate | ||||||
| EXHIBIT F-2B | — | Form of IE Drawdown Certificate | ||||||
| EXHIBIT F-2C | — | [Reserved] | ||||||
| EXHIBIT G-1 | — | [Reserved] | ||||||
| EXHIBIT G-2 | — | [Reserved] | ||||||
| EXHIBIT H | — | [Reserved] | ||||||
| EXHIBIT I-1 | — | Project Budgets | ||||||
| EXHIBIT I-2 | — | Project Schedules | ||||||
| EXHIBIT J-1 | — | Base Case Model | ||||||
| EXHIBIT K | — | [Reserved] | ||||||
| EXHIBIT L | — | [Reserved] | ||||||
| EXHIBIT M | — | Form of American Beech Beginning of Construction Certificate | ||||||
| EXHIBIT N | — | Form of Bluebird Beginning of Construction Certificate | ||||||
| EXHIBIT O | — | Form of Prairie Beginning of Construction Certificate | ||||||
| EXHIBIT P | — | [Reserved] | ||||||
| EXHIBIT Q | — | Form of Bluebird Project Energy Community Adder Certificate |
vi
| EXHIBIT R | — | Form of Prairie Project Energy Community Adder Certificate | ||||||
| SCHEDULE 1.1(a) | — | Commitments | ||||||
| SCHEDULE 1.1(b) | — | Permitted Liens | ||||||
| SCHEDULE 1.1(c) | — | Cumulative Compounded Rate Formula | ||||||
| SCHEDULE 5.5 | — | No Conflicts | ||||||
| SCHEDULE 5.9 | — | Litigation | ||||||
| SCHEDULE 5.12 | — | Permits | ||||||
| SCHEDULE 5.17 | — | Indebtedness | ||||||
| SCHEDULE 5.24 | — | Real Property Documents | ||||||
| SCHEDULE 5.29 | — | Casualty and Force Majeure Events | ||||||
| SCHEDULE 6.1(d) | — | Consents to Collateral Assignment | ||||||
| SCHEDULE 7.2 | — | Insurance | ||||||
| SCHEDULE 8.3 | — | Affiliate Transactions | ||||||
| SCHEDULE 12.22(a) | — | Project Commitments | ||||||
| SCHEDULE A | — | [Reserved] | ||||||
| SCHEDULE B | — | IRB Documents |
vii
CREDITAGREEMENT
This Credit Agreement (this“Agreement”) is entered into as of December 31, 2024, by and among (i)MN8 DEVCO 3 LLC, a Delaware limited liability company (the “Devco Borrower”), (ii) MN8 BLEEKER LLC, a Delaware limited liability company (the“Opco Borrower”),(iii)NATIXIS,NEWYORKBRANCH,asadministrativeagentfortheLenders(in suchcapacity,togetherwithanysuccessoradministrativeagentappointedpursuanttoSection11in such capacity, the“Administrative Agent”), (iv) NATIXIS, NEW YORK BRANCH, as collateral agent for the Secured Parties (in such capacity, together with its successors and permitted assigns in such capacity, the “Collateral Agent”) and (v)THE LC ISSUERS AND LENDERS FROM TIME TO TIME PARTY HERETO.All capitalized terms used herein without definition shall have the same meanings herein as such terms are defined in Section1.1hereof.
PreliminaryStatement
WHEREAS,theBorrower(asdefinedbelow)has,subjecttothetermsandconditionsset forthinthisAgreement,requestedthattheLenders(asdefinedbelow)provide(a)aconstruction loan facility and (b)a bridge loan facility, which will be used to support the construction of the Projects (as defined below), subject to certain limitations set forth herein;
WHEREAS, the Borrower has, subject to the terms and conditions set forth in this Agreement,requestedthat(a)theLCIssuer(asdefinedbelow)committoissuecertainLettersof Credit (as defined below)from time to time, ineachcase, subject to theterms and conditions set forth herein, and (b) the Lenders commit to make LC Loans (as defined below) to the Borrower in order to fund anydrawings on anysuch Letters of Credit issued hereunder; and
WHEREAS, the Lenders and the LC Issuers are willing to provide the above-referenced extensions of credit to the Borrower on the terms and subject to the conditions set forth herein.
Now, therefore, in consideration of the mutual agreements set forth herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
SECTION1.DEFINITIONS;INTERPRETATION.
Section 1.1. Definitions.The followingtermswhenusedhereinshallhavethe following meanings:
“Acceptable Bank” means anybank or trust companywhich isorganized orislicensed as a branch or agency under the laws of the United States of America, Canada or any state or provincethereofwhichhasacombinedcapitalandsurplusandundividedprofitsofatleast $1,000,000,000 and has outstanding unguaranteed and unsecured long-term indebtedness which is rated “BBB+” or better by S&P or “Baa1” or better by Moody’s.
1
“AcceptableLCIssuingBank”meansanybankortrustcompanywhichisorganizedor is licensed as a branch or agencyunder the laws of the United States of America, Canada or any state or province thereof which has a combined capital and surplus and undivided profits of at least $1,000,000,000 and has outstanding unguaranteed and unsecured long-term indebtedness which is rated “A-” or better by S&P or “A3” or better by Moody’s.
“Additional Project Document” means any contract or agreement entered into by (or assigned to) anyProject Group Member after the Financial Closing Date that either (a)replaces or is entered into in substitution of an existing Project Document, (b) contains obligations the performance or non-performance of which could be reasonably expected to have a Material Adverse Effect or (c) could reasonablybe expected to havepayments to or bytheProject Group Membersoravalueinexcessof$3,000,000intheaggregateoverthetermofsuchcontractor $500,000 per year, and in each case other than Tax Credit Transfer Documents or Tax Equity Documents.
“AdministrativeAgent”isdefinedinthepreambleofthisAgreement.
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.
“AffectedFinancialInstitution”means(a)anyEEAFinancialInstitutionor(b)any U.K.FinancialInstitution.
“AffectedLender”isdefinedinSection2.13hereof.
“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectlythrough one or more intermediaries, Controls or is Controlled byor is under common Control with the Person specified.
“AgentIndemnitee”isdefinedinSection11.5hereof.
“Agents”means,collectively,theAdministrativeAgentandtheCollateralAgent.
“Agreement”isdefinedinthepreambleofthisAgreement.
“ALTA Survey” shall mean the Bluebird Survey, the American Beech Survey and the Prairie Survey.
“AlternateBaseRate”shallmean,foranyday,arateperannumequaltothegreatestof (a)the Base Rate in effect on such day, (b)the sum of the Federal Funds Rate in effect on such dayplus one half of one percent (0.5%), (c)the sum of Term SOFR in effect on such day(or, if such day is not a Business Day, the immediately preceding Business Day) plus one percent (1.0%) and (d) the Floor.Any change in the Alternate Base Rate shall be effective from and including the effective date of such change in the Base Rate, the Federal Funds Rate or Term SOFR, respectively.
“OmnibusAmendmentEffectiveDate”means[ ],2025.
2
“AmericanBeechEPCContract”meansthatcertainPVEngineering,Procurementand ConstructionAgreement,datedasofSeptember24,2024,byandbetweenAmericanBeech Project Company and Pure Power Contractors, LLC, as supplemented by that certain Limited NoticetoProceed,datedasofJanuary24,2024,thatcertainLimitedNoticetoProceed#2,dated as of May 31, 2024, that certain Limited Notice to Proceed #3, dated as of June 24, 2024, that certain Limited Notice to Proceed #4, dated as of August 8,2024,that certain Limited Noticeto Proceed #5,dated as of August 14, 2024 and that certain Limited Notice toProceed#6,datedas of October 10, 2024.
“American Beech HV BOP Agreement” means that certain HV Balance of Plant Agreement, dated as of September27,2024,byandbetween American BeechProjectCompany and RES America Construction Inc, as supplemented bythat certain Limited Notice to Proceed, dated as of April 23,2024, that certain Amended andRestated Limited Notice toProceed,dated as of June 6,2024, that certainSecond Amended andRestated Limited NoticetoProceed,dated as of August12,2024,andthatcertainThirdAmendedandRestated LimitedNoticetoProceed, dated as of August 30, 2024.
“American Beech Interconnection Construction Service Agreement” means that certainInterconnectionConstructionServiceAgreement,datedasofMay2,2022,byandamong PJM Interconnection, L.L.C., American Beech Project Company, and Virginia Electric and Power Company, as amended bythat certain Agreement to Amend,dated as ofMay4,2023, by and among PJM Interconnection, L.L.C., American Beech Project Company, and Virginia Electric and Power Company.
“American Beech Interconnection Service Agreement” means that certain Interconnection Service Agreement, dated as of March 25, 2022, by and among PJM Interconnection, L.L.C., American Beech Project Company, and Virginia Electric and Power Company, as amended by that certain Agreement to Amend, dated as of May 4, 2023, by and among PJM Interconnection, L.L.C., American Beech Project Company, and Virginia Electric and Power Company.
“American Beech JV Operating Agreement” means that certain Second Amended and Restated Limited Liability Company Agreement of AC1 ASOA LLC, dated as of January 10, 2023, between American Beech Project Company, Edgecombe AC1 ASOA LLC, and Halifax CountySolarLLC,asamendedbythatcertainAmendmenttotheSecondAmendedandRestated Limited LiabilityCompanyAgreement of AC1 ASOA LLC, dated as of April 14, 2023.
“American Beech JV Operating Agreement Guaranty” means that certain Guaranty, dated as of December 17, 2024, issued by the Sponsor in favor of JVCo.
“AmericanBeechModuleSupplierParentGuaranty”meansthatcertainSellerParent Guaranty,datedasofMay16,2024,issuedbyJinkoSolarCo.,Ltd.,infavorofAmericanBeech Project Company.
“American Beech Module Supply Agreements” means, collectively, (a)that certain Project Module SupplyAgreement, dated as of May16, 2024, byand between American Beech
3
Project Company, and Jinko Solar (U.S.) Industries Inc., as amended by that certain First Amendment to Project Module Supply Agreement, dated as of September 24, 2024, by and betweenAmericanBeechProjectCompany andJinkoSolar(U.S.)IndustriesInc.and(b)that certainProjectModuleSupplyAgreement,datedasofSeptember27,2024,byandbetween American Beech Project Company and Jinko Solar (U.S.) Industries Inc.
“American Beech Mortgage” means that certain Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing (North Carolina) from American Beech ProjectCompanytoChicagoTitleInsuranceCompany,aFloridacorporation,asTrusteeforthe benefit of Collateral Agent.
“AmericanBeech PCSSkidandCommissioningPurchaseOrder”meansthatcertain Purchase Order No. P-0284-6245 for PCS Skids and Commissioning, dated as of July17,2024, by and between American Beech Project Company and Sungrow USA Corporation.
“American Beech Power Purchase Agreement” means that certain Renewable Energy Purchase Agreement, dated as of February 1, 2024, by and between American Beech Project Company and Microsoft Corporation.
“AmericanBeechProject”meanstheapproximately196MWsolarphotovoltaicenergy project located in Halifax County, North Carolina.
“American Beech Project Beginning of Construction Certificate” means that certain certificate in the form attached as Exhibit Mhereto.
“American Beech Project Company” means American Beech Solar LLC, a North Carolina limited liability company.
“AmericanBeechSite”meanstherealpropertydescribedonExhibitAoftheAmerican Beech Pro Forma.
“AmericanBeechTitlePolicy”isdefinedinSection7.25(d)hereof.
“American Beech Tracker Supply Agreement” means that certain Tracker Supply Agreement, dated as of September 6, 2024, by and between American Beech Project Company and Nextracker, LLC.
“American Beech Transformer Purchase Agreement” means that certain Purchase Order No. P-0234-911, dated as of August 16, 2019, by and between Virginia Transformer Corporation and American Beech Project Company ( as assignee of BayWa r.e. Solar Projects LLC pursuant to that certain Assignment and Assumption Agreement, dated as of October 20, 2024,byandbetweenBayWar.e.SolarProjectsLLCandAmericanBeechProjectCompany),as amended by that certain Change Order No. 1, dated February 28, 2020, and that certain Change Order No. 2, dated September 12, 2024.
“American Beech Warehouse Agreements” means, collectively, (a)the Warehousing ServicesAgreement,datedSeptember30,2024,betweenAmericanBeechProjectCompanyand
4
Hellmann Worldwide Logistics, (b)the Warehouse Services Agreement, dated September 30, 2024, between American Beech Project Company and Premier Global Logistics, and (c)the Logistics and Warehouse Services Agreement, dated September 30, 2024, between American Beech Project Company and Weida Freight System, Inc.
“Ancillary Services” means services and products related to the attributes of electricity and to the capacity to generate electricity, including black start services, reactive supply and voltage control from generation or other sources, regulation and frequency response service, energyimbalanceservice,operatingreserve-spinningreserveservice,operatingreserve-supplemental reserve service, generator imbalance service, and other ancillary energy services,ineachcase,asacceptedorapprovedby(a)FERCunderOrderNo.888or890or (b)anydulyauthorizedandoperatingRegionalTransmissionOrganization,IndependentSystem Operator or balancing authority.
“AmericanBeechSurvey”isdefinedinSection6.1(q)hereof.
“Annual Operating Budget” means, with respect to a Project, an operating budget containing information substantially in the form provided in the tabs labeled “Bluebird Schedule” (with respect to the BluebirdProject), “American Beech Schedule” (with respect to the American BeechProject) and “Prairie Schedule” (with respect to the PrairieProject) in the Base Case Model, to be prepared by the Borrower.
“Anti-Corruption Laws” means any laws, rules or regulations of any jurisdiction relatingtoorconcerningthepreventionorprohibitionofbriberyorcorruption,includingthe U.S.ForeignCorruptPracticesActof1977,asamended,andtheUKBriberyAct2010.
“Anti-Money Laundering Laws” means any laws, rules or regulations of any jurisdiction relating to or concerning the prevention or prohibition of money laundering or terrorism, including the U.S. Currency and Foreign Transactions Reporting Act of 1970 (commonly known as the U.S. Bank Secrecy Act), as amended by the PATRIOT Act.
“Applicable Law” means any constitution, statute, law, rule, regulation, ordinance, judgment, order, decree or Governmental Approval, or any published directive or requirement which has the force of law, or other governmental restriction which has the force of law, or any determination by, or interpretation of any of the foregoing by, anyjudicial authority, applicable to and/or binding on a given Person, as the context may require, whether in effect as of the Financial Closing Date or thereafter and, in each case, as amended (includingall Environmental Laws and anyof the foregoing pertaining to land use or zoning restrictions).
5
“Applicable Margin” means, for any day, as to anySOFR Loan or Base Rate Loan, as the case maybe, the applicable percentages per annum set forth in the table below:
| TimePeriod | SOFRLoan | BaseRateLoan | ||||||
| Uptothefirstanniversaryofthe Financial Closing Date. | 1.250% | 0.250% | ||||||
| Fromandafterthefirstanniversary of the Financial Closing. | 1.375% | 0.375% |
“Applicable Permit” means, at any time, any material Permit, including any Environmental Permit, land use approval, siting or building permit, decision or authorization given by any Governmental Authority, that is (a) required to be obtained and necessary at such given time in light of the stage of development, construction or operation of any Project (to the extent required by Applicable Law or the Operative Documents) to occupy the applicable Site and construct, test, interconnect, operate, maintain, or own such Project as contemplated by the applicable Operative Documents, and for the applicable Project Company to sell electricity and renewable energy credits therefrom, in each case, in accordance with all Applicable Laws and/or (b) listed on Schedule 5.12; providedthat, as of the date of each Credit Event after the Financial Closing Date, the Borrower shall supplement Schedule 5.12with any additional Applicable Permits that previously were not, but as of the date of such Credit Event are, required to be disclosed pursuant to clause (a)above.
“Application”isdefinedinSection2.4(b)(i)hereof.
“ApprovedFund”meansanyFundthatisadministeredormanagedby(a)aLender, (b)an Affiliate of a Lender or (c)an entity or an Affiliate of an entity that administers or manages a Lender.
“AssetDisposition”means,withrespecttoanyPerson,anysale,assignment,transferor other disposition bysuch Person of anypersonal or real propertyowned bysuch Person.
“Asset Disposition Proceeds” means, with respect to any Asset Disposition, the Net Cash Proceeds actuallyreceived bythe Borrower in connection with such Asset Disposition.
“AssignmentandAcceptance”meansanassignmentandacceptanceagreemententered into bya Lender and an assignee (with the consent of anypartythe consent of which is required bySection12.19hereof), and accepted bythe Administrative Agent, insubstantiallytheform of Exhibit Eor any other form approved by the Administrative Agent.
“Authorized Officer” means, with respect to any Person, the chief executive officer, president, chief financial officer, general counsel, principal accounting officer, treasurer, assistant treasurer, secretary, assistant secretary or any vice president of such Person, or the equivalent position of such Person provided pursuant to the applicable Organizational
6
Documents,orsuchotherofficerorrepresentative(orindividualholdingadesignatedauthorized office) specifically authorized by such Person’s managing member, board of directors, management committee or equivalent governing body.
“Available Bridge Loan Commitment” means, at any time, the Total Bridge Loan Commitment at such time minus the aggregate principal amount of all Bridge Loans made or deemed made hereunder.
“AvailableConstructionFunds”means,atanytime,thesumof,withoutduplication, (a)the aggregate amount of Available Construction Loan Commitments at such time, (b)the aggregate amount of Available Bridge Loan Commitments at such time, (c)the aggregate amountofAvailableUpsizeBridgeLoanCommitmentsatsuchtime,(d)anyamountsondeposit atsuchtimeintheBorrowerAccountsthatareavailableforpaymentofProjectCosts,and (e)anyliquidated damages, insurance proceeds,or warrantypaymentsunderProject Documents received bytheBorrower,anyProjectCompany,oranAffiliateofanyProjectCompany(except to the extent such amounts are required to be applied to prepayLoans hereunder).
“Available Construction Loan Commitment” means, at any time, the Total Construction Loan Commitment at such time minus the aggregate principal amount of all Construction Loans made or deemed made hereunder.
“Available LC Commitment” means, at any time, the LC Commitment at such time, minus the aggregatestated amounts ofanyLetters ofCreditissuedandoutstandingatsuchtime, minustheaggregateamountofanyunpaidReimbursementObligationsinrespectofsuchLetters of Credit, minus the aggregate principal amount of all LC Loans made or deemed made in connection with any Letters of Credit hereunder.
“Available LC Loan Commitment” means, at any time, the aggregate amount of the LCLoanCommitmentsatsuchtimeminustheaggregateprincipalamountofallLCLoansmade or deemed made hereunder, as maybe increased at anytime pursuant to Section 2.4(c)(ii).
“AvailableTenor”means,asofany dateofdeterminationandwithrespecttothe then-current Benchmark, as applicable, (x)if such Benchmark is a term rate, anytenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y)otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 12.20(b)(iv).
“Available Upsize Bridge Loan Commitment” means, at any time, the Total Upsize Bridge Loan Commitment at such time minus the aggregate principal amount of all Upsize Bridge Loans made or deemed made hereunder.
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“Back-LeverageDate”meansthedateonwhichCompletionandSCFundingDatehave occurred with respect to a Project.
“Bail-In Action” means the exercise of anyWrite-DownandConversionPowers bythe applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation” means, (a)with respect to any EEA Member Country implementingArticle55ofDirective2014/59/EUoftheEuropeanParliamentandoftheCouncil of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule; and (b) withrespect to theUnitedKingdom,Part IoftheUnitedKingdomBankingAct 2009(as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
“Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978 of the United States of America, as amended and as the same may be further amended, and any other Applicable Laws with respect to bankruptcy, insolvency or reorganization that are successors thereto.
“Bankruptcy Default” means an Event of Default occurring under Section9.1(k)with respect to any Project Group Member.
“Base Case Model” means the financial model as of the Financial Closing Date referenced in Exhibit J-1, as updated pursuant to Section 7.21, Section 7.22or Section 7.24.
“Base Rate” means for anydaythe rate of interest, per annum, announced or otherwise established by the Administrative Agent from time to time as its prime commercial rate, or its equivalent, in effect at its principal office in New York City, on such day and notified to the Borrower, with any change in the Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate (it being acknowledged and agreed that such rate may not be the Administrative Agent’s best or lowest rate).
“BaseRateLoan”meansaLoanbearinginterestataratespecifiedinSection2.5(a)hereof.
“BaseRateTermSOFRDeterminationDay”isdefinedinthedefinitionof“Term SOFR”.
“Beginning of Construction Certificate” means each of the American Beech Project Beginning of Construction Certificate, the Bluebird Project Beginning of Construction Certificate and the Prairie Project Beginning of Construction Certificate.
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“Beginning of Construction Requirements” means beginning of construction requirements as provided under Notice 2018-59.
“Benchmark” means, initially, Compounded SOFR; provided that if a Benchmark Transition Event has occurred with respect to Compounded SOFR or the then-current Benchmark, then “Benchmark”means the applicable BenchmarkReplacement tothe extentthat suchBenchmarkReplacementhasreplacedsuchpriorbenchmarkratepursuantto Section 12.20(b)(i).
“Benchmark Replacement” means, with respect to any Benchmark Transition Event, the sum of: (a)the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i)any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Bodyor (ii)anyevolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicatedcreditfacilitiesatsuchtimeand(b)therelatedBenchmarkReplacementAdjustment; provided that, if such Benchmark Replacement (after giving effect to the related Benchmark ReplacementAdjustment)wouldbelessthantheFloor,suchBenchmarkReplacement(after givingeffecttotherelatedBenchmarkReplacementAdjustment)willbedeemedtobetheFloor for the purposes of this Agreement and the other Credit Documents.
“BenchmarkReplacementAdjustment”means,withrespecttoanyreplacementofthe then-currentBenchmarkwithanUnadjustedBenchmarkReplacement,thespreadadjustment,or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a)any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Bodyor (b)anyevolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.
“Benchmark Replacement Conforming Changes” means, with respect to either the use or administration of Compounded SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Alternate Base Rate,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of “Interest Period” or anysimilar or analogous definition (or the addition of a conceptof “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section12.20(b)and other technical, administrative or operational matters) that the Administrative Agent decides (except upon and during the occurrence of an Event of Default, in consultation with the Borrower) may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and
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administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such marketpracticeisnotadministrativelyfeasibleoriftheAdministrativeAgentdeterminesthatno market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Credit Documents).
“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:
(a)inthecaseofclause(a)or(b)ofthedefinitionof“BenchmarkTransitionEvent”, the later of (i)the date of the public statement or publication of information referenced therein and (ii)the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof); and
(b)in the case of clause(c)of the definition of “Benchmark Transition Event”, the firstdateonwhichsuchBenchmark(orthepublishedcomponentusedinthecalculationthereof) has been or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (orsuch component thereof) have been determined and announced by the regulatory supervisor for the administratorofsuchBenchmark(orsuchcomponentthereof)tobenon-representative;provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause(c)and even if such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.
For the avoidance of doubt, if the then-current Benchmark is a term rate, the“Benchmark Replacement Date” will be deemed to haveoccurred inthe caseof clause(a)or (b)with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Transition Event” means the occurrence of one or more ofthe following events with respect to the then-current Benchmark:
(a)a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcingthat such administrator has ceased or will cease to providesuch Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; provided that, at the time ofsuchstatementorpublication,thereisnosuccessoradministratorthatwillcontinuetoprovide suchBenchmark(orsuchcomponentthereof)or,ifsuchBenchmarkisatermrate,anyAvailable Tenor of such Benchmark (or such component thereof);
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(b)a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, the SOFR Administrator, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator ofsuch Benchmark (orsuch component)has ceased or will ceaseto provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmarkis atermrate,anyAvailableTenorofsuchBenchmark(orsuchcomponentthereof); or
(c)a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such Benchmark (or such componentthereof)or, ifsuch Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.
For the avoidance of doubt, if the then-current Benchmark is a term rate, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statementorpublicationofinformationsetforthabovehasoccurredwithrespecttoeach then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Unavailability Period” means, the period (if any) (a)beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacementhas replacedthethen-current Benchmark for allpurposeshereunder andunderany Credit Document in accordance with Section12.20(b)and (b)ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Credit Document in accordance with Section 12.20(b).
“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation, which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial OwnersofLegalEntityCustomerspublishedjointly,inMay2018,bytheLoanSyndicationsand Trading Association and Securities Industry and Financial Markets Association.
“BeneficialOwnershipRegulation”means31C.F.R.§1010.230.
“BHCActAffiliate”isdefinedinSection12.36(b)hereof.
“Bluebird Development and Purchase Agreement” means the Development andPurchaseAgreement,datedasoftheOmnibusAmendmentEffectiveDate,byandbetweenHoldco (Bluebird) and Devco Borrower.
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“Bluebird Energy Management Agreement” means the Energy Management Agreement, dated as of December 4, 2023, by and between Bluebird Project Company and Tenaska Power Services Co.
“Bluebird EPC Contract” means that certain Engineering, Procurement and Construction Agreement, dated as of August 25, 2023, by and between Bluebird Project Company and DEPCOM Power, Inc., as amended by that certain Amendment No. 1 to Engineering, Procurement and Construction Agreement, dated as of September 13, 2024, that certainChangeOrderNo. 1,datedas ofJuly17,2024,thatcertainChangeOrderNo.2,datedas of February 6, 2024, , that certain Change Order No. 4, dated as of February 14, 2024, that certain Change Order No. 5, that certain Change Order No. 8, dated as of April 10, 2024, that certainChange Order No. 9,dated as ofApril 24,2024,thatcertainChangeOrderNo.11,dated as of April 30, 2024, that certain Change Order No. 12, dated as of May 17, 2024, that certain Change Order No. 13, dated as of June 4, 2024, that certain Change Order No. 14, dated as of September 13, 2024, that certain Change Order No. 15, dated as of August 15, 2024,that certain Change Order No. 18, dated as of August 6, 2024, that certain Change Order No. 19, dated as of August 6, 2024,that certain Change Order No. 23, dated as of September 6, 2024, that certainChange Order No. 24,dated as ofSeptember6,2024,thatcertainChangeOrderNo. 26, dated as of November 6, 2024, that certain Change Order No. 27, dated as of November 19, 2024,thatcertainChangeOrderNo.31,datedasofNovember20,2024,assupplementedby that certain Limited Notice to Proceed No. 1, dated as of November 14, 2022, that certain Limited Notice to Proceed No. 2, dated as of February 20, 2023, that certain Limited Notice to Proceed No. 3, dated as of July 27, 2023 (as further amended, restated, amended and restated, supplemented or otherwise modified from time to time).
“Bluebird HV EPC Contract” means that certain HV Engineering, Procurement and Construction Agreement, dated as of December 19, 2023, by and between Bluebird Project Company and RES System 3, LLC, as amended by Change Order No. 01, dated as of February 16,2024,ChangeOrderNo.2,datedasofAugust8,2024,ChangeOrderNo.3,datedasofJune 19,2024,ChangeOrderNo.4,datedasofAugust5,2024,ChangeOrderNo.5,datedasof August 12, 2024, Change Order No. 6, dated as of August 12, 2024, and Change Order No. 7, dated as of October 16, 2024, and as supplement by Limited Notice to Proceed, dated as of February 4, 2023, First Amended & Restated Limited Notice to Proceed, dated as of March 9, 2023, Amendment to the First Amended &Restated Limited NoticetoProceeddated as ofMay 3, 2023, Second Amended & Restated Limited Notice to Proceed, dated as of June 1, 2023, Third Amended & Restated Limited Notice to Proceed, dated as of August 8, 2023, and Fourth Amended & Restated Limited Notice to Proceed, dated as of October 27, 2023 (as further amended, restated, amended and restated, supplemented or otherwise modified from time to time).
“Bluebird Interconnection Construction Service Agreement” means that certain Interconnection Construction Service Agreement, dated as of January 19, 2021, by and among PJMInterconnection,L.L.C.,BluebirdProjectCompany,andEastKentuckyPowerCooperative, Inc., as amended bythat certain Agreement to Amend, dated as of June 27, 2023, byand among
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PJMInterconnection,L.L.C.,BluebirdProjectCompany,andEastKentuckyPowerCooperative, Inc.
“Bluebird Interconnection Service Agreement” means that certain Interconnection Service Agreement, dated as of July 1, 2021, by and among PJM Interconnection, L.L.C., Bluebird Project Company, and East Kentucky Power Cooperative, Inc., as amended by that certain Agreement to Amend, dated as of June 27, 2023, by and among PJM Interconnection, L.L.C., Bluebird Project Company, and East Kentucky Power Cooperative, Inc.
“BluebirdInverterSupplyAgreement”meansthatcertainPurchaseOrder(P-0235-4918), dated as of September 1, 2023, by and between Bluebird Project Company and SungrowUSACorporation,asamendedbyChangeOrder#1,datedSeptember22,2023,Change Order#2,datedOctober18,2023,ChangeOrder#3,datedApril10,2024,ChangeOrder#4, datedJuly12,2024,ChangeOrder#5,datedAugust12,2024,ChangeOrder#6,dated September 20, 2024, Change Order #7, dated September 20, 2024, and Change Order #8, dated December 5, 2024, entered into pursuant to that certain Master Supply Agreement, dated as of April 21, 2023, byand between BayWa r.e. Solar Projects LLC and Sungrow USA Corporation.
“BluebirdModuleBuyerParentGuaranty”meansthatcertainBuyerParentGuaranty, dated as of June 6, 2023, issued byBayWa r.e. AG, in favor of Jinko Solar (U.S.) Industries Inc.
“Bluebird Module Supplier Parent Guaranty” means that certain Seller Parent Guaranty,datedasofJune13,2023,issuedbyJinkoSolarCo.,Ltd.,infavorofBluebirdProject Company.
“Bluebird Module Supply Agreement” meansthat certain Project Module Supply Agreement No. MCUSGT22Q303, dated as of May 16, 2023, by and between Bluebird Project Companyand JinkoSolar (U.S.) Industries Inc., as amended bythat certain First Amendment to Project Module Supply Agreement, dated as of January 17, 2024, by and between Bluebird Project Company and Jinko Solar (U.S.) Industries Inc., and as amended bythat certain Second Amendment to Project Module Supply Agreement, dated as of June 4, 2024, by and between Bluebird Project Company and Jinko Solar (U.S.) Industries Inc.
“Bluebird Mortgage” means that certain Leasehold and Easement Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing (Kentucky) from Bluebird Project Company to the Collateral Agent.
“Bluebird Power Purchase Agreement” means that certain Amended and Restated Virtual Power Purchase Agreement, dated as of October 23, 2023, by and between Bluebird Project Company and J. Aron & Company LLC.
“Bluebird Project”meansthe approximately137MWsolarphotovoltaicenergyproject located in Harrison County, Kentucky.
“Bluebird Project Beginning of Construction Certificate” means that certain certificate in the form attached as Exhibit Nhereto.
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“Bluebird Project Company” means Bluebird Solar LLC, a Kentucky limited liability company.
“Bluebird Project Energy Community Adder Certificate” means that certain certificate in the form attached as Exhibit Qhereto.
“BluebirdSite”meanstherealpropertydescribedonExhibitAoftheBluebirdPro Forma.
“BluebirdSolarInvestments”meansBluebirdSolarInvestmentsLLC,aKentucky limited liabilitycompany.
“BluebirdTitlePolicy”isdefinedinSection6.1(q)hereof.
“Bluebird Transformer Purchase Agreement” means that certain Purchase Order No. P-0288-911,datedasofAugust23,2019,byandbetweenVirginiaTransformerCorporationand Bluebird Project Company (as assignee of BayWa r.e. Solar Projects LLC, pursuant to that certain Assignment and Assumption Agreement, dated as of September 11, 2023, by and between BayWa r.e. Solar Projects LLC and Bluebird Project Company).
“BluebirdSurvey”isdefinedinSection6.1(q)hereof.
“Borrower” means, (a) prior to the date on which the Back-Leverage Date for all Projectsshallhaveoccurred,collectively,theDevcoBorrowerandtheOpcoBorrower,andeach, a “Borrower”, and (b) from and after the date on which theBack-Leverage Date for all Projects shall have occurred, the Opco Borrower.
“BorrowerAccounts”meanstheCollateralAccountsandtheRevenueAccount.
“Borrowing”meansaborrowingbytheBorrowerofaLoan.
“BorrowingDateCertificate”isdefinedinSection6.2(a)(ii)hereof.
“Bridge Lender” means any Lender with (a)an obligation to advance Bridge Loans in an aggregate principal amount not to exceed such Lender’s Bridge Loan Commitment or (b)an outstanding Bridge Loan.
“Bridge Loan Amount” means the Bridge Loan Amount (American Beech), the Bridge Loan Amount (Bluebird) or the Bridge Loan Amount (Prairie), as applicable.
“Bridge Loan Amount (American Beech)” means the portion of the Bridge Loan Commitments allocable to the American Beech Project, which principal amount is equal to Fifty-One Million, Four Hundred Fifteen Thousand, Three Hundred Sixty-Two Dollars ($51,415,362).
“Bridge Loan Amount (Bluebird)” means the portion of the Bridge Loan Commitments allocable to the Bluebird Project, which principal amount is equal to Fifty-Six Million, One Hundred Forty-Two Thousand, Five Hundred Twenty-One Dollars ($56,142,521).
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“Bridge Loan Amount (Prairie)” means the portion of the Bridge Loan Commitments allocable to the Prairie Project, which principal amount is equal to Sixty-Five Million Seven Hundred Eighty Thousand Two Hundred Nineteen Dollars ($65,780,219).
“BridgeLoanAvailabilityPeriod”meanstheperiodfrom(andincluding)theFinancial Closing Date through (and including) the Bridge Loan Maturity Date.
“Bridge Loan Commitment” means, at any time with respect to each Lender, such Lender’s Proportionate Share of the Total Bridge Loan Commitment at such time.
“BridgeLoanCommitmentFees”isdefinedinSection3.1(a)(ii)hereof.
“BridgeLoanFacility”isdefinedinSection2.2(a)hereof.
“BridgeLoanMaturityDate”meanstheearliertooccurof(a)July1,2026and(b)the date of any acceleration of the Bridge Loans following an Event of Default.
“BridgeLoanNote”isdefinedinSection2.10(d)hereof.
“BridgeLoans”means,collectively,eachbridgeloanmadepursuantto arequestbythe Borrower under Section2.2and each drawing on the Bridge Loan Commitments deemed made pursuant to Section 2.5(d).
“BusinessDay”meansanydaythatisnotaSaturday,Sundayorotherdaythatisalegal holiday under the laws of the State of New York or is a day on which banking institutions in such state are authorized or required by Applicable Law to close.
“Capital Lease” means, at any time with respect to any Person, any lease of any property of such Person as lessee that should, in accordance with GAAP, be classified and accounted for as a capital lease on a consolidated balance sheet of such Person.
“Capital Lease Obligations” means, as of any date, the amount of the obligations of a Person as lessee under a Capital Lease that, in accordance with GAAP, would appear on a balance sheet of such lessee in respect of such Capital Lease, incurred or created or assumed as part of the acquisition, construction or improvements of anyfixed or capital asset.
“Cash”meansmoney,currencyoracreditbalanceinanyaccount.
“Cash Equivalents” means any of the following, to the extent owned by the Borrower or any of their Subsidiaries:
(a)DollarsorCanadiandollars;
(b)readily marketable obligations issued or directly and fully guaranteed or insured by the government or any agency or instrumentality of (i)the United States or Canada, (ii)the United Kingdom, (iii)Switzerland or (iv)any member nation of the European Union rated “A” (or the equivalent thereof) or better by S&P and “A2” (or the equivalent thereof) or better by
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Moody’s, having average maturities of not more than twenty-four(24) months from the date of acquisitionthereof; providedthat thefullfaithandcredit ofsuchcountryorsuchmembernation of the European Union is pledged in support thereof;
(c)time deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that has combined capital and surplus of at least $250,000,000 or its equivalent (any such bank, an “Approved Bank”), in each case with average maturities of not more than twelve (12) months from the date of acquisition thereof;
(d)commercial paper and variable or fixed rate notes issued by an Approved Bank (orbytheparentcompanythereof)oranyvariableorfixedratenoteissuedby,orguaranteedby, acorporationrated“A-2”(ortheequivalentthereof)orbetterbyS&Por“P-2”(ortheequivalent thereof) orbetter byMoody’s, in each casewithaveragematurities of not morethan twelve (12) months from the date of acquisition thereof;
(e)repurchaseagreementsenteredintobyanyPersonwithanApprovedBank,abank or trust company or recognized securities dealer, in each case, having capital and surplus in excess of $250,000,000 or its equivalent for direct obligations issued by or fully guaranteed or insuredbythegovernmentoranyagencyorinstrumentalityof(i) theUnitedStates,(ii) the United Kingdom, (iii)Switzerland or (iv)any member nation of the European Union rated “A” (or the equivalent thereof) or better by S&P and “A2” (or the equivalent thereof) or better by Moody’s,inwhichsuchPersonshallhaveaperfectedfirstprioritysecurityinterest(subjecttono other Liens) or title to which shall have been transferred to such Person and having, on the date of purchase thereof, a fair market value of at least 100% of the amount of the repurchase obligations;
(f)marketableshort-termmoneymarketandsimilarhighlyliquidfundseither (i)having assetsinexcessof $250,000,000or itsequivalent,or (ii) having a rating of at least “A-2”or“P-2”fromeitherS&PorMoody’s(or,ifatanytimeneitherS&PnorMoody’sshallbe rating such obligations, an equivalent rating from another nationallyrecognized rating service);
(g)securities with average maturities of twelve(12) months or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, the United Kingdom, Switzerland, a member of the European Union or by any political subdivision or taxing authorityof anysuch state,member, commonwealth orterritoryhaving an Investment Grade Rating from either S&P or Moody’s (or the equivalent thereof);
(h)investments with average maturities of twelve(12) months or less from the date of acquisition in mutual funds rated “AAA-” (or the equivalent thereof) or better by S&P or “Aaa3” (or the equivalent thereof) or better by Moody’s;
(i)investments, classified in accordance with GAAP as current assets of the Borrower in money market investment programs that are registered under the Investment CompanyAct of 1940 or that are administered byfinancial institutionshaving capital of atleast $250,000,000 or its equivalent, and, in either case, the portfolios of which are limited such that
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substantially all of such investments are of the character, quality and maturity described in clauses (a)through (h)of this definition; and
(j)investment funds investing at least 90% of their assets in securities of the types described in clauses (a)through (i)above.
“Casualty Event” means an event that causes any property of any Project Company or alloranypartofanyProjecttobelost,damaged,destroyedorrenderedunfitforitsintendeduse for any reason whatsoever.
“CERCLA” means the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq.
“Change in Control” shall be deemed to have occurred if (i) the Sponsor ceases to legally and beneficially own and control, directly or indirectly, the power to direct or cause (subject, in each case, to the terms of any Tax Equity Arrangement or TC Structure Document) thedirectionofthemanagementandpoliciesofeachBorrowerandeachProjectCompanyor(ii) the Sponsor ceases to directly or indirectly own one hundred percent (100%) of the equity interests in eachBorrowerandeachProjectCompany(otherthanany“Class A”interestsowned by the applicable investor under a Tax Equity Arrangement or TC Structure Document and any equity interests sold or otherwise transferred in a Permitted Disposition under clause (k)of the definition of “Permitted Disposition”).
“CITL” means on or after the Financial Closing Date and (1) prior to the execution of any Tax Documents, (a) any amendment, modification, addition or change to U.S. federal income Tax law (including as a result of any issuance, promulgation and/or change in, or of, (i) temporary or final Treasury Regulations, (ii) applicable guidance, notice or announcement, in each case, published in written form by the U.S. Department of the Treasury, Internal Revenue Service or any other Governmental Authority or (iii) the interpretation of the Code or Treasury Regulations attributable to a decision by the United States Tax Court, a United States District Court, United States Court of Appeals or the United States Supreme Court) that has been enacted, promulgated or issued, as applicable, and (b) that materially and adversely affects the tax credits or tax depreciation benefits reasonably anticipated to be received by any Project, or prohibits or materiallyrestricts tax equityinvestment ortransfers oftax credits from anyProject under Section 6418 of the Code (or successor provision), or (2) after the execution of any Tax Documents, “CITL” or “Change in Tax Law” (or similar term) as defined in such Tax Documents.
“CITL/Proposed CITL Condition” means, with respect to anyProject, the satisfaction of one of the following:
(a)ACITLorProposedCITLhasnotyetoccurred;or
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(b)ACITLorProposedCITLhasoccurred,andoneofthefollowingissatisfied:
(i)TheCITLorProposedCITLrelatestoeliminationoftransferabilityoftax credits as provided under Section 6418 of the Code, but such Project is subject to approved Tax Equity Documents that do not require the availability of transferability to monetize the tax credits (i.e., not a hybrid tax equity arrangement);
(ii)The CITL or Proposed CITL relates to modification of tax depreciation benefits, but the approved Tax Documents for such Project are solely Tax Credit Transfer Documents or do not require the tax depreciation benefits to be monetized;
(iii)(x) If such Project has Tax Documents then in effect and the CITL or Proposed CITL reduces the amount payable pursuant to a then-existing Tax Documents (determined based on an updated Base Case Model reasonably satisfactory to the Lenders), the Borrowers shall take CITL Remedial Actions in an amount equal to (i) the proceeds previously expectedundersuchTaxDocumentspriortotheCITLorProposedCITLminus(ii)theproceeds now expected under such Tax Documents after taking into consideration solely the CITL or ProposedCITL(determinedbasedonanupdatedBaseCaseModelreasonablysatisfactorytothe Lenders); and (y) if such Project does not have a Tax Documents then in effect and the CITLor ProposedCITLreducestheBridgeLoanCommitmentsorUpsizeBridgeLoanCommitmentsfor such Project (determined based on an updated Base Case Model reasonably acceptable to the Lenders),theBorrowersshalltakeCITLRemedialActionsinanamountequaltosuchreduction (it being understood that such CITL Remedial Actions shall not be required to cover Upsize Bridge Loan Commitments to the extent that such commitments are already covered under the Equity Contribution Agreement); or
(iv)The Borrowers put in place a new or replacement Tax Documents approved by the Lenders in accordance with Sections 7.22, 7.23and/or 7.24for such Project such that (i) if such Project has Tax Documents then in place, the proceeds expected under the new or replacement Tax Documents are anticipated to equal or exceed the amounts previously expected under the applicable Tax Documents (prior to giving effect to such CITL or Proposed CITL) and (ii) if Project does not have Tax Documents then in place, the Bridge Loan Commitments and Upsize Bridge Loan Commitments for such Project reflected in a Base Case Model updated to reflect the new or replacement Tax Documents and reasonably acceptable to the Lenders exceed the sum of the then current Bridge Loan Commitments and Upsize Bridge Loan Commitments in respect of such Project.
“CITL Remedial Actions” means either (i) cause the Sponsor to make, or commit to make(pursuanttoanequitycontributionagreementinformandsubstancereasonablyacceptable totheLenders),additionalequitycontributions,whichareapplied,ortobeapplied,toprepaythe applicable Bridge Loans or Upsize Bridge Loans (or to payProject Costs to the extent that such Loans have not been drawn in the applicable amount at such time), or (ii) deliver a guaranty of the applicable Bridge Loans or Upsize Bridge Loans from the Sponsor in form and substance reasonably acceptable to the Lenders, in either case, in the amounts specified where this term is used.
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“Class” means, when used in respect of a Commitment, a Construction Loan Commitment, a Bridge Loan Commitment, an Upsize Bridge Loan Commitment, an LC Loan Commitment or an LC Commitment, as applicable.
“Class A Member” means, with respect to a Project subject to a Tax Equity Arrangement, the Tax Equity Investor, and, with respect to a Project subject to a Tax Credit Transfer Arrangement, a to-be-formed entity that will be either an affiliate of the Sponsor, an unrelated third party, or a partnership between an affiliate of the Sponsor and an unrelated third party.
“ClassAMemberPledgeAgreement”means,withrespecttoaProjectsubjecttoaTax Credit TransferArrangement,apledgeagreement,informandsubstancereasonablysatisfactory to the Required Lenders, to be entered into in connection with applicable TC Structure Documents byand between an applicable Class A Member Pledgor and the Collateral Agent.
“Class A Member Pledgor” means, with respect to a Project subject to a Tax Credit Transfer Arrangement, anyentitythat is a wholly-owned affiliate of the Sponsor that is partyto applicable TC Structure Documents as a Class A Member.
“ClassBMember(AmericanBeech)”meanseither(a)ato-be-formeddirect wholly-owned Subsidiary of a Borrower, which following the SC Funding Date in connection with the American Beech Project, owns one hundred percent (100%) of the “ClassB” membership interests in HoldCo (American Beech) or (b) the Class B Member (Bluebird) or Class B Member (Prairie).
“Class B Member (Bluebird)” means MN8 FMG Class B LLC, a Delaware limited liability company.
“Class B Member (Prairie)” means either (a) a to-be-formed direct wholly-owned Subsidiary of a Borrower, which following the HoldCo Effective Date in connection with the Prairie Project, owns one hundred percent (100%) of the “ClassB” membership interests in HoldCo (Prairie) or (b) the Class B Member (American Beech) or Class B Member (Bluebird).
“Class B Members” means the Class B Member (American Beech), the Class B Member (Bluebird) and the Class B Member (Prairie), and each, a “Class B Member”.
“Closing Date Distribution Payment” means a payment or Distribution by the Borrower to the Sponsor or its designee on the Financial Closing Date as set forth in the Funds FlowMemorandumdeliveredpursuanttoSection6.1(w),solelytoreimburseanyAffiliateofthe Borrowerforcashcontributions (orpurchaseprice)madebysuchAffiliateto,onbehalfof,orin respect of, the Borrower or any Project Company to fund or in respect of Project Costs (including, for the avoidance of doubt, the purchase price paid by the Sponsor and its Affiliates prior to the Financial Closing Date to acquire the Projects), as confirmed by the Independent Engineer, and consistent with the Base Case Model as of the Financial Closing Date; provided that after giving effect to the Closing Date Distribution Payment, the total Equity Contribution shall be equal to or greater than the Minimum Equity Commitment.
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“Code”meanstheInternalRevenueCodeof1986,asamended.
“Collateral”meansallrealandpersonalpropertythat,fromtimetotime,issubjecttoor is intended or required to become subject to the security interests or Liens granted or purported to be granted by any of the Security Documents.
“CollateralAccounts”hasthemeaningsetforthintheDepositaryAgreement.
“CollateralAgent”isdefinedinthepreambleofthisAgreement.
“Commitment” means, individually or collectively, as the context requires, a Construction Loan Commitment, a Bridge Loan Commitment, an Upsize Bridge Loan Commitment or an LC Commitment.
“CommitmentFees”means,collectively,ConstructionLoanCommitmentFees,Bridge Loan Commitment Fees and LC Commitment Fees.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Completion”means,withrespecttoaProject,theoccurrenceofeachofthefollowing: (a)such Project is interconnected under the applicable Interconnection Agreement, (b)Work Substantial Completion, (c)the Commercial Operation Date under and as defined in the applicable Power Purchase Agreement and (d)from and after the execution of the Tax Equity Documents or TCStructure Documents, as applicable, “substantial completion” andthe “placed in service date” (or such similar defined terms as are used in the relevant ECCAor, Tax Credit SaleAgreementorotherapplicableTaxEquityDocumentorTaxCreditTransferDocument(otherthan,fortheavoidanceofdoubt,anyTax Credit Transfer Agreement(Class A))), if applicable.
“CompoundedSOFR”isdefinedinSchedule1.1(c).
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Consent” means the consents to collateral assignment identified on Schedule6.1(d)(includingfrom and after each Project’s Tax Equity Closing Date or TC Structure Effective Date, as applicable, the Interparty Agreement applicable to such Project), by and among the Collateral Agent and the Persons identified therein and in form and substance reasonably satisfactory to the Required Lenders.
“Construction Account” has the meaning set forth in the Depositary Agreement.
“ConstructionContracts”meanstheEPCContracts,theHVContracts,theTransformer Purchase Agreements, the Tracker Supply Agreements and the Prairie Module Supply Agreements.
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“Construction Lender” means any Lender with (a)an obligation to advance Construction Loans in an aggregate principal amount not to exceed such Lender’s Construction Loan Commitment or (b) an outstanding Construction Loan.
“Construction Loan Amount” means the Construction Loan Amount (American Beech),theConstructionLoanAmount(Bluebird)ortheConstructionLoanAmount(Prairie),as applicable.
“Construction Loan Amount (American Beech)” means the portion of the Construction Loan Commitments allocable to the American Beech Project, which principal amountisequaltoOneHundredSevenMillion,NineHundredTwenty-FiveThousand, Forty-One Dollars ($107,925,041).
“Construction Loan Amount (Bluebird)” means the portion of the Construction Loan Commitments allocable to the Bluebird Project, which principal amount is equal to Fifty One Million Three Hundred Seventy Three Thousand Four Hundred Fifty Dollars ($51,373,450).
“Construction Loan Amount (Prairie)” means the portion of the Construction Loan Commitments allocable to the Prairie Project, which principal amount is equal to Fifty-One Million, Seven Hundred Fifty-Seven Thousand, Two Hundred Seventy-Five Dollars ($51,757,275).
“Construction Loan Availability Period” means the period from (and including) the Financial Closing Date through (and including) the Construction Loan Maturity Date.
“Construction Loan Commitment” means, at any time with respect to each Lender, such Lender’s Proportionate Share of the Total Construction Loan Commitment at such time.
“ConstructionLoanCommitmentFees”isdefinedinSection3.1(a)(i)hereof.
“ConstructionLoanFacility”isdefinedinSection2.1(a)hereof.
“ConstructionLoanMaturityDate”meanstheearliesttooccurof(a)July1,2026and (b) thedateofanyaccelerationoftheConstructionLoansfollowinganEventofDefault.
“ConstructionLoanNote”isdefinedinSection2.10(d)hereof.
“Construction Loans” means, collectively, each construction loan made pursuant to a request by the Borrower under Section2.1and each drawing on the Construction Loan Commitments deemed made pursuant to Section 2.5(d).
“Construction Management Agreements” means, collectively, the Construction Management Agreement (American Beech), the Construction Management Agreement (Bluebird), the Construction Management Agreement (Prairie), and each a “Construction Management Agreement”.
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“Construction Management Agreement (American Beech)” means, that certain Agreement, dated as of October 29, 2024, between the American Beech Project Company and BayWa r.e. Solar Projects LLC.
“Construction Management Agreement (Bluebird)” means, that certain Construction ManagementandAdministrativeServicesAgreement,datedasofOctober29,2024,betweenthe Bluebird Project Company and BayWa r.e. Solar Projects LLC.
“Construction Management Agreement (Prairie)” means, that certain Construction Management Agreement, dated as of October 29, 2024, between the Prairie Project Company and BayWa r.e. Solar Projects LLC.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.The terms “Controls”, “Controlled” and “Controlling” shall have corollary meanings.
“CoveredEntity”isdefinedinSection12.36(b)hereof.
“CoveredParty”isdefinedinSection12.36(a)hereof.
“CreditDocuments”meansthisAgreement,theNotes(ifany),theSecurityDocuments, the Fee Letters, the Permitted Hedging Agreements, the Letters of Credit, the Sponsor Equity Contribution Agreement and any other similar documents, agreements or instruments entered into in connection with any of the foregoing or with the transactions contemplated bythe Credit Documents.
“CreditEvent”meanstheFinancialClosingDateandeachBorrowing.
“Credit Rating” means, with respect to (a)a Person, the rating assigned by a Rating Agencytotheseniorlong-termunsecureddebtobligationsofsuchPersonor,ifsuchPersondoes nothaveseniorunsecuredlong-termdebtthatisratedbyaRatingAgency,theratingassignedby a Rating Agency as the corporate credit rating or issuer rating of such Person (in each case not supported byanythird partycredit enhancement) and (b) anySecurities, the ratingassigned bya Rating Agency to such Securities.In the event two Rating Agencies have assigned such Person a Credit Rating, the applicable Credit Ratingshall be thelower of the two and, in theevent more than two Rating Agencies have assigned such Person a Credit Rating, the applicable Credit Rating shall be the second highest of the ratings.
“Debt Service” means, for any period and as of any date of determination, (a)all Obligations payable by the Borrower during such period under this Agreement, including principalpaymentsandnetobligationsinrespectofPermittedHedgingAgreements,and(b)any interest, commitment fees and scheduled fees accrued on the Loans and the LC Obligations and payable during such period, other than fees paid on the Financial Closing Date, but in each case excluding Mandatory Prepayments, Optional Prepayments and the Obligations payable on the Construction Loan Maturity Date.
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“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the UnitedStatesorotherapplicablejurisdictionsfromtimetotimeineffectandaffectingtherights of creditors generally.
“Default” means any event or condition which upon the giving of notice, the lapse of time or both would, unless cured or waived, become an Event of Default.
“DefaultRate”isdefinedinSection2.9hereof.
“DefaultRight”isdefinedinSection12.36(b)hereof.
“DefaultingLender”shallmean,subjecttoSection2.14,anyLenderthat:
(a)has failed to (i)fund all or anyportion of its Loans within two(2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the AdministrativeAgentandtheBorrowerinwritingthatsuchfailureistheresultofsuchLender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii)pay to the Administrative Agent or any other Lender any other amount required to be paid byit hereunder (including in respect of its participation in Letters of Credit) within two (2) Business Days of the date when due;
(b)has notified the Borrower, the Administrative Agent or any other Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determinationthataconditionprecedenttofunding(whichconditionprecedent,togetherwith anyapplicabledefault,shallbespecificallyidentifiedinsuchwritingorpublicstatement)cannot be satisfied);
(c)has failed, within three(3) Business Days after written request by the AdministrativeAgentortheBorrower,toconfirminwritingtotheAdministrativeAgentandthe Borrower that it will comply with its prospective funding obligations hereunder (provided that suchLendershallceasetobeaDefaultingLenderpursuanttothisclause(c)uponreceiptofsuch written confirmation by the Administrative Agent and the Borrower); or
(d)has,orhasadirectorindirectparentcompanythathas,(i)becomethesubjectofa proceeding under any Debtor Relief Law, (ii)had appointed for it a receiver, custodian, conservator,trustee,administrator,assigneeforthebenefitofcreditorsorsimilarPersoncharged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatoryauthorityacting in such a capacity or (iii) become the subject of a Bail-In Action;
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provided that, a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of anyEquityInterest inthat Lenderor anydirect orindirectparentcompanythereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses(a)through (d)above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section2.14) upon delivery of written notice of such determination to the Borrower and each Lender.
“Depositary” means U.S. Bank, National Association, in its capacity as Depositary under the DepositaryAgreement, or its successor or assignee appointed pursuant totheterms of the Depositary Agreement.
“Depositary Agreement” means that certain Depositary Agreement, to be executed in accordance with Section 7.25, among certain of the Loan Parties, the Administrative Agent, the Collateral Agent and the Depositary.
“DevcoBorrower”hasthemeaninggiveninthepreamble.
“Devco Pledgor” means MN8 EnergyDevelopment CompanyLLC, a Delaware limited liability company.
“Development Period Security” means any letter of credit or surety bond provided in respect of any Project Document or Applicable Law that is returned to the Borrower or its affiliateupon theissuanceanddeliveryto theapplicablebeneficiarythereofof a LetterofCredit issued hereunder.
“Discharge Date” means the date on which this Agreement shall haveterminated (other thanthoseprovisionstheexpresslysurvivesuchtermination),allCommitmentsshallhavebeen terminated or fullyutilized, all Letters of Credit shall have been cancelled orterminated andthe principal of and interest on each Loan and all applicable fees and other expenses or amounts payable under this Agreement and all other Obligations (other than unasserted contingent payment obligations that expressly survive the termination of this Agreement) shall have been paid in full in cash.
“Disqualified Person” means (a) a “tax-exempt entity” as defined in Section 168(h)(2) of the Code (unless the exception under Section 168(h)(1)(D) or Section 168(h)(2)(B) of the Code applies) or “tax-exempt controlled entity” as defined in 168(h)(6)(F)(iii) of the Code (unlessanelectionisineffectunderSection168(h)(6)(F)(ii)oftheCode);(b)aPersondescribed in Section 50(b)(3) (unless such Person would be subject to tax under Section 511 of the Codeon all income from the HoldCo) or Section 50(b)(4) of the Code; (c) a Person whose ownership ofamembershipinterestwouldresultinadisallowanceorreductionofITCspursuanttoSection
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50(d) of the Code; or (d) any partnership or other pass-through entitywith anydirect or indirect owner described in clauses (a)-(c).
“Distribution” means, in respect of any Person: (a) dividends or other distributions or payments on Equity Interests of such Person (except distributions made in the form of Equity InterestsofsuchPerson);and(b)theredemptionoracquisitionofEquityInterestsofsuchPerson or of warrants, rights or other options to purchase such Equity Interests (except when made solely in exchange for Equity Interests of such Person).
“Dollars”or“U.S.$”or“$”meanslawfulmoneyoftheUnitedStatesofAmerica.
“ECCA” means, with respect to a Project subject to a Tax Equity Arrangement, the applicable Tax Equity ECCA, and, with respect to a Project subject to a Tax Credit Transfer Arrangement, the applicable TC ECCA.
“EEA Financial Institution” means (a)any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA ResolutionAuthority,(b)anyentityestablishedinanEEAMemberCountrywhichisaparentof an institution described in clause (a)of this definition, or (c) anyfinancial institution established inanEEAMemberCountrywhichisaSubsidiaryofaninstitutiondescribedinclauses(a)or(b)of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“Environmental Claim” means any and all obligations, liabilities, losses, administrative, regulatory or judicial actions, suits, demands, decrees, claims, liens, judgments, warning notices, notices of noncompliance or violation, investigations, proceedings, removal or remedial actions or orders, or damages (foreseeable and unforeseeable, including consequential and punitive damages), penalties, fees, out-of-pocket costs, expenses, disbursements, attorneys’ orconsultants’fees,arisingunderorrelatinginanywaytoanyEnvironmentalLiability, Environmental Law or any Governmental Approval issued under any Environmental Law (hereafter as used in this definition, “Claims”), including (a)any and all Claims by any Governmental Authority for enforcement, cleanup, removal, response, remedial or other actions or damages arising under or pursuant to any applicable Environmental Laws or Permits issued pursuant thereto, and (b)any and all Claims by any third party seeking damages, contribution, indemnification,costrecovery,compensationorinjunctivereliefresultingfromorrelatingtoany violation of applicable Environmental Laws or any Hazardous Materials or arising from alleged injuryorthreatofinjurytohealth,safetyortheenvironmentinconnectionwiththeReleaseofor exposure to Hazardous Materials.
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“Environmental Consultant” means, with respect to the American Beech Project, Kimley-Horn and Associates, Inc., with respect to the Bluebird Project, Civil & Environmental Consultants,Inc.,and,withrespecttothePrairieProject,SWCAEnvironmentalConsultants,or, in each case, its successor appointed pursuant to Section 11.10of this Agreement.
“Environmental Laws” means any and all Applicable Laws relating to pollution, the environment, endangered,threatenedorprotectedspecies,culturalandarchaeologicalresources, preservation or reclamation of natural resources, the management, Use, Release or threatened Release of, or exposure to, any Hazardous Material or to health and safety matters related to exposure to any Hazardous Material.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities, and includinganyLienfiledagainstanyrealpropertyinfavorofanyGovernmentalAuthority)ofany Project Group Member or any Project directly or indirectly resulting from or based upon (a) the violation of any Environmental Law, (b) the presence, generation, use, handling, transportation, storage,treatmentordisposalorarrangementfordisposalofanyHazardousMaterials, (c) exposuretoanyHazardousMaterials,(d)theReleaseorthreatenedReleaseofanyHazardous Materialsintotheenvironment,(e)thetakeofanyendangered,threatenedorprotectedspeciesor (f)any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“EnvironmentalPermit”meansanyPermitrequiredpursuanttoanyEnvironmental Law.
“EnvironmentalReports”meansthosecertainreportstitled(a)PhaseIEnvironmental Site Assessment for the Prairie Solar 1, LLC Project in Champaign County, Illinois, dated October 14, 2024, (b) Phase I Environmental Site Assessment for American Beech Solar Site, Undeveloped Tracts, Halifax County, North Carolina, dated October 7, 2024, and (c) Phase I Environmental Site Assessment for Bluebird Solar Properties, Russell Cave Road, Harrison County, Kentucky, dated July 31, 2024, each prepared by such Project’s Environmental Consultant and delivered to the Administrative Agent in accordance with this Agreement.
“EPC Contractors” means, collectively, (i) Pure Power Contractors, LLC a North Carolina limited liabilitycompany, in its capacityas contractor under the American Beech EPC Contract, or its successor and permitted assign appointed pursuant to the terms of the American BeechEPCContract,(ii)DEPCOMPower,Inc.,aDelawarecorporation,initscapacityas contractor under the Bluebird EPC Contract, or its successor and permitted assign appointed pursuanttothetermsoftheBluebirdEPCContract,and(iii)BayWar.e.PowerSolutions,Inc.,a California corporation, in its capacity as contractor under the Prairie EPC Contract, or its successor and permitted assign appointed pursuant to theterms of thePrairie EPC Contract, and each, an “EPC Contractor”.
“EPCContracts”means,collectively,theAmericanBeechEPCContract,theBluebird EPC Contract and the Prairie EPC Contract, and each, an “EPC Contract”.
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“Equator Principles” means the principles so entitled and described in “Equator Principles – A financial industry benchmark for determining, assessing and managing environmentalandsocialriskinprojects”andavailableat: https://equator-principles.com/wp-content/uploads/2020/05/The-Equator-Principles-July-2020-v 2.pdf.
“Equity Contribution” means an amount equal to (a)the sum of (i) any cash contribution to a Borrower or any Project CompanybyanyAffiliate of the Borrower (other than aProjectGroupMember)and(ii)ProjectCostspaidbyanAffiliateoftheBorrower(otherthana Project Group Member) without repayment obligations in support thereof by a Borrower or any Project Group Member less (b) Distributions made bythe Borrower (or anyother Project Group Member)toanyoftheBorrower’sAffiliatesasareimbursementofamountsdescribedinclauses(a)(i)or (a)(ii).As of the Financial Closing Date and after giving effect to the Closing Date Distribution Payment, the aggregate Equity Contributions are $175,943,282.
“Equity Interests” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including partnership interests and membership interests, and any and all warrants, rights or options to purchase or other arrangements or rights to acquire any of the foregoing.
“ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and regulations promulgated thereunder from time to time in effect.
“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with any Loan Party, is treated as a single employer under Section414(b) or (c) of the Code,or,solelyforpurposesofSection302ofERISAandSection412oftheCode,istreatedas a single employer under Section 414(b), (c), (m) or (o) of the Code.
“ERISA Event” means: (a)any of the events set forth in Section4043(c) of ERISA or the regulations issued thereunder, other than events for which the thirty(30) day notice period has been waived; (b) the failure of anyPlan to satisfythe minimum fundingstandard (as defined in Section412 of the Code or Section302 of ERISA), whether or not waived; (c)the filing pursuanttoSection412(c)oftheCodeorSection302(c)ofERISAofanapplicationforawaiver of the minimum fundingstandard with respect to anyPlan; (d) the incurrence byanyLoan Party or any of their ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e)the receipt by any Loan Party or any ERISA Affiliate from the PBGCoraplanadministratorofanynoticerelatingtoanintentiontoterminateanyPlanor Plans or to appoint a trustee to administer any Plan; (f)the incurrence by any Loan Partyor any of their ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; (g)the receipt by any Loan Party or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any Loan Party or any ERISA Affiliate of anynotice, concerning the imposition of liabilityto a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in PartI of SubtitleE of TitleIV of ERISA or a determination that a Multiemployer Plan is, or is expected to be, insolvent within the meaning of TitleIV of ERISA; or (h)the incurrence byany
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LoanPartyoranyERISAAffiliateofanyliabilitypursuanttoSection4063or4064ofERISAor acessationofoperationswithrespecttoaPlanwithinthemeaningofSection4062(e)ofERISA.
“ErroneousPayment”isdefinedinSection11.9(a)hereof.
“ErroneousPaymentNotice”isdefinedinSection11.9(b)hereof.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.
“EventofDefault”meansanyeventorconditionidentifiedassuchinSection 9.1hereof.
“EventofEminentDomain”meansanycompulsorytransfer,seizureortakingby condemnation, eminent domain or exercise of a similar power, or transfer under threat of such compulsorytransfer or taking, of anymaterial part of the Collateral, byanyagency,department, authority, commission, board, instrumentality or political subdivision of the state where each Project is physically located, the United States or another Governmental Authority having jurisdiction.
“EWG”meansan“exemptwholesalegenerator,”assuchtermisdefinedinSection 1262(6) of PUHCA and FERC’s implementing regulations at 18 C.F.R. Part 366.
“Excluded Swap Obligation” means, with respect to a guarantor, anySwap Obligation if, and to the extent that, all or a portion of the guaranty of, or the grant by such guarantor of a security interest to secure, such Swap Obligation (or any guarantythereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guaranty or the grant of such security interest becomes effective with respect to such Swap Obligation.If a SwapObligationarisesunderamasteragreementgoverningmorethanoneswap,suchexclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guaranty or security interest is or becomes illegal.
“Excluded Taxes” means anyof the following Taxes imposed on or withrespect to any Lender,anyLCIssuerortheAdministrativeAgentorrequiredtobewithheldordeductedfroma payment to any Lender, any LC Issuer or the Administrative Agent: (a)Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i)imposed as a result of such recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof), or (ii)that are Other Connection Taxes, (b)in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of the Lender with respect to an applicable interest in an Obligationpursuanttoalawineffecton(i)theFinancialClosingDate,(ii)thedateonwhichthe
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Lender acquires such interest or (iii)the date on which the Lender changes its lending office, except in each case to the extent that, pursuant to Section12.1or Section12.3, amounts with respect to such Taxes were payable either to the Lender’s assignor immediately before the LenderbecameapartyheretoortotheLenderimmediatelybeforeitchangeditslendingoffice, (c)Taxesattributabletotherecipient’sfailuretocomply withSection12.5orSection12.6,and (d) anywithholdingTaxesimposedunderFATCA.
“FATCA” or “Foreign Account Tax Compliance Act” means (a)Sections1471 through1474oftheCode,asofthedateofthisAgreement(oranyamendedorsuccessorversion that is substantivelycomparable and not materiallymore onerous to complywith), together with any current or future regulations or official interpretations thereof, (b)any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of the foregoing clause(a), and (c)any agreements entered into pursuant to Section 1471(b)(1) of the Code.
“Federal Funds Rate” means, for any day, the rate determined by the Administrative Agent to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to the Administrative Agent at approximately 10:00 a.m. (New York time) (or as soon thereafter as is practicable) on such day(or, if such dayis not a Business Day, on the immediately preceding Business Day) by three or more Federal funds brokers of recognized stranding selected by the Administrative Agent for sale to the Administrative Agent at face value of Federal funds in the secondarymarket in an amount equal or comparable to the principal amount owed to the Administrative Agent for which such rate is being determined.
“FederalReserveBoard”meanstheBoardofGovernorsoftheFederalReserveSystem of the United States of America.
“FeeLetters”means,collectively,(a)thatcertainMandateLetter,datedasofNovember 21,2024,byandbetweenMN8EnergyOperatingCompanyLLCandNatixis,NewYorkBranch and (b) that certain Fee Letter, dated as of the Financial Closing Date, by and between the Borrower, the Administrative Agent and the Collateral Agent.
“FERC”meanstheFederalEnergyRegulatoryCommission,andanysuccessorthereto.
“Financial Closing” means the satisfaction (or waiver in accordance with the terms hereof) of each of the conditions precedent listed in Section 6.1.
“FinancialClosingDate”meansthedateuponwhichFinancialClosingoccurs.
“Fitch”meansFitchRatings,Inc.
“Flood Documents” means (a) evidence as to whether any parcel which constitutes a portion ofanySiteand onwhichanimprovement islocated isaFloodHazardPropertypursuant to a “Life-of-Loan” FEMA Standard Flood Hazard Determination, and (b) if any parcel which constitutes a portion of the Sites and on which an improvement is located is a Flood Hazard
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Property, (i) evidence as to whether the community in which such parcel is located is participating in the National Flood Insurance Program; (ii) the Borrower’s written acknowledgment of receipt of written notification from Administrative Agent as to the fact that such parcel is a Flood Hazard Property and as to whether the community in which such Flood HazardPropertyislocatedisparticipatingintheNationalFloodInsuranceProgram;and (iii)evidence that Borrower has obtained the flood insurance required under Section7.2, which evidence may consist of an application for such insurance policy marked to show that the premium has been paid in full or accompanied byaseparate receipt from theinsuranceprovider indicatingthatthepremiumwaspaidinfull,adeclarationpageconfirmingthattheinsurancehas been issued, or a certificate of such insurance or copyof the policy itself.
“FloodHazard Property”meansanyparcelwhichconstitutes aportionofanySiteand on which an improvement is located to the extent such parcel is located in a Flood Zone.
“Flood Laws” means the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973, the National Flood Insurance Reform Act of 1994, the Biggert-Waters Flood Insurance Act of 2012 and all other Applicable Laws relating to flood insurance.
“Flood Zone” means an area as identified by the Federal Emergency Management Agency as an area having special flood or mud slide hazards.
“Floor”meansarateofinterestequalto0.00%.
“FPA” means the Federal Power Act, 16 U.S.C. § 791a, et seq., and FERC’s implementing regulations adopted thereunder, as amended, modified, supplemented or replaced from time to time.
“Fund” means any Person (other than a natural person) that is a bona fide diversified debt fund primarily engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinarycourse of its business.
“Funding Date Guaranty” means, with respect to each of the Projects (if and to the extent applicable), a guarantee or equity contribution agreement, to be executed by the Sponsor or Affiliate of the Sponsor reasonably satisfactory to all Lenders in favor of the applicable HoldCo under the applicable ECCA, in form and substance reasonably satisfactory to the Required Lenders.
“Funds Flow Memorandum” shall mean the memorandum setting forth the flow of funds on the Financial Closing Date.
“GAAP”meansgenerallyacceptedGAAPasineffectfromtimetotimeintheUnited States.
“Good-Faith Contest” means the contest of an item if (a)the item is diligently being contestedingoodfaithand,whenapplicable,byappropriateproceedingstimelyinstituted, (b)adequate reserves are established in accordance with GAAP with respect to the contested
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item (if and to the extent GAAP require the establishment of such reserves) and (c)during the period of such contest, the enforcement of anycontested item is effectivelystayed.
“Governmental Approval” means (a)any authorization, consent, approval, license, lease, ruling, permit, tariff, rate, certification, waiver, exemption, filing, variance, claim, order, judgmentordecreeof,byorwith,(b)anyrequirednoticeto,(c)anydeclarationoforwith,or (d)anyregistrationbyorwith,anyGovernmentalAuthority.
“Governmental Authority” means the government of any jurisdiction, or any political subdivision thereof, whether provincial, state or local, and any department, ministry, agency, authority,instrumentality,regulatorybody,court,centralbankorotherentitylawfullyexercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including FERC, NERC and any State PUC.
“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person in any manner, whether directly or indirectly,andincludinganyobligationoftheguarantor,directorindirect,(a)topurchaseorpay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supplyfunds for thepurchase of) anysecurityfor the payment thereof, (b)to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof or (c)as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtednessorobligation; providedthat,thetermGuaranteeshallnotincludeendorsementsfor collection or deposit in the ordinary course of business.
“Guaranteed Completion Date”means (a) with respecttotheAmericanBeechProject, the “Guaranteed Commercial Operation Date” as defined in the American Beech Power Purchase Agreement, (b) with respect to the Bluebird Project, the “Guaranteed Commercial Operation Date” as defined in the Bluebird Power Purchase Agreement, (c) with respect to the Prairie Project, the earliest “Guaranteed Commercial Operation Date” as defined in each Prairie Power Purchase Agreement.
“Hazardous Material” means (a)any petroleum or petroleum products, flammable materials,explosives,radioactivematerials,friableasbestos,ureaformaldehydefoaminsulation, per- and polyfluoroalkyl substances and transformers or other equipment that contain dielectric fluid containing polychlorinated biphenyls (PCBs) in regulated concentrations, (b)any chemicals, wastes, materials or substances which are now or hereafter become defined as or includedinthedefinitionof“hazardoussubstances,”“hazardouswastes,”“hazardousmaterials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants,” “contaminants,” “pollutants” or words of similar import under any Environmental Law,(c)anyotherchemical, waste, material orsubstance, exposure to which is now orhereafter prohibited,limitedorregulatedassuchunderanyEnvironmentalLaw,and(d)allother materials,substancesorwastesofanynaturewithrespecttowhichliabilityorstandardsof conduct are imposed under any Environmental Law.
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“Hedging Agreement” means any interest rate protection or swap agreement, foreign currencyexchange agreement, commodity(or other product) price protection agreement, power or energy swap agreement or other interest or currency exchange rate or commodity (or other product) or power or energy price hedging arrangement, including anyforward sale, put option, synthetic put option, floor, cap, collar or other arrangement entered into byanyPerson to hedge such Person’s exposure to movements in interest rates, exchange rates or the price of commodities, power, energy or other products.“Hedging Agreement” shall not include any type of Ancillary Service, alternative energycredit, renewable energycredit, energyor capacity sales agreement.
“Hedging Settlement Value” means in respect of anyone or more transactions under a Hedging Agreement, the ordinary course settlement amount(s) determined in accordance with such Hedging Agreement, other than any Hedging Termination Value.
“Hedging Termination Value” means in respect of any one or more Hedging Agreements, after taking into account the effect of anylegallyenforceable netting agreement or provisions relating to such Hedging Agreements, (a)for any date on or after the date such Hedging Agreements have been wholly or partially closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b)for any date prior to the date referenced in clause(a), the amount(s) determined as if such Hedging Agreements were to be wholly or partially closed out as of such date and termination value(s) determined in accordance therewith as of such date.
“HoldCo Effective Date” means, with respect to each Project, the date the relevant HoldCo LLCA becomes effective and applies to such Project following its contribution to the relevant HoldCo.
“HoldCo (American Beech)” means a to-be-formed indirect wholly-owned Subsidiary ofOpcoBorrower,whichfollowingtheHoldCoEffectiveDateinconnectionwiththeAmerican Beech Project, will own one hundred percent (100%) of the Equity Interests in the American Beech Project Company.
“HoldCo(Bluebird)”meansMN8FMGLLC,aDelawarelimitedliabilitycompanyand indirect wholly-owned Subsidiary of Opco Borrower, which following the HoldCo Effective DateinconnectionwiththeBluebirdProjectwillownonehundredpercent(100%)oftheEquity Interests in the Bluebird Project Company.
“HoldCo (Prairie)” means a to-be-formed indirect wholly-owned Subsidiary of Opco Borrower, which following the HoldCo Effective Date in connection with the Prairie Project, will own one hundred percent (100%) of the EquityInterests in the Prairie Project Company.
“HoldCo LLCA” means with respect to any Project, the amended or amended and restated limited liabilitycompanyagreement of the applicable HoldCo, expected to be executed on the date of the initial capital contribution related to a Project by the Class A Member(s) to such HoldCo under the Tax Equity ECCADocumentsor TC ECCAStructure Documents, as
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applicable,byandamongtheapplicableClassBMemberandClassAMember,whichisinform and substance reasonably satisfactory to all Lenders.
“HoldCos”meansHoldCo(AmericanBeech),HoldCo(Bluebird)andHoldCo(Prairie), and each, a “HoldCo”.
“HV Contracts” meanstheAmerican Beech HV BOP Agreement andtheBluebird HV EPC Contract, and each, an “HV Contract”.
“IFRS” means International Financial Reporting Standards issued by the IFRS Foundation and the International Accounting Standards Board, as in effect from time to time.
“Improvements” means all buildings, structures, fixtures, and other similar improvements now or hereafter situated on a Site.
“Indebtedness” of any Person means, without duplication: (a)all indebtedness of such Person for borrowed money or with respect to deposits or advances of any kind; (b)all obligations of such Person evidenced by bonds (other than surety, appeal, orperformancebonds to the extent that such surety, appeal or performance bonds do not constitute or result in the incurrence of reimbursement obligations payable by such Person), debentures, notes or similar instruments; (c)all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person; (d)all obligations of such Person in respect of the deferred purchase price of property or services (excluding trade and accounts payable and accrued expenses incurred in the ordinary course of business within one hundred eighty(180) days following the date they were incurred), if such purchase price is (i)due more than six (6)months from theincurrenceoftheobligation inrespectthereofor(ii)evidencedbya note or similar written instrument; (e)all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed; (f)all Guarantees by such Person of Indebtedness of others; (g)that portion of the obligations with respect to Capital Lease Obligations that is properlyclassified asa liability on a balance sheet in conformity with GAAP; (h)all obligations, contingent or otherwise,ofsuchPersonasanaccountpartyinrespectoflettersofcreditandlettersofguaranty supportingobligationswhichwouldotherwiseconstituteIndebtednesswithinthemeaningofthis definition (excluding, for the avoidance of doubt, letters of credit existing on the Financial ClosingDatewhichareanticipatedtobereplacedwithlettersofcreditunderthisAgreementand for which cash collateral in an amount at least equal to the face amount of such letter of credit has been provided to the issuing bank thereof); (i) amounts due and owing bysuch Person under all Hedging Agreements; and (j)all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances.The Indebtedness of anyPerson shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.Notwithstanding the foregoing: (x) any obligation arising from anyagreement providingfor indemnities, guarantees, earnouts or similar obligations (other than Guarantees of Indebtedness) incurred by any Person in connection with the acquisition or
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dispositionofassetsshallnotconstitute“Indebtedness”unlessanduntilsuchobligationbecomes due and payable or certain to be due and payable and (y)any Loan under this Agreement shall constitute “Indebtedness”.
“Indebtedness Proceeds” means, with respect to the incurrence or issuance of any Indebtedness by any Project Group Member (other than Permitted Indebtedness), the Net Cash Proceeds received by any of the Project Group Members in connection with such incurrence or issuance.
“Indemnified Taxes” means (a)Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Credit Document and (b)to the extent nototherwisedescribed in the foregoingclause(a),Other Taxes.
“Indemnitee”isdefinedinSection12.24(b)hereof.
“Independent Consultants” means, collectively, the Environmental Consultant, the Independent Engineer, the Insurance Consultant, and the Transmission Consultant.
“Independent Engineer” means Enertis Solar, Inc. or, as it relates to any Project, a successor appointed pursuant to Section 11.10of this Agreement.
“Independent Engineer’s Reports” means those certain reports titled (a) Independent EngineeringReviewforAmericanBeechSolarPhotovoltaicProject,datedDecember26,2024, (b) Independent Engineering Review for Prairie Solar Photovoltaic Project, dated December 26, 2024 , and (c) Independent Engineering Review for Bluebird Solar Photovoltaic Project, dated December26,2024 , eachprepared bysuchProject’s Independent Engineer anddeliveredtothe Administrative Agent in accordance with this Agreement.
“Independent System Operator” means an “ISO” as such term is defined in Section 3(28)oftheFPA,andanyentitydetermined bytheFERC tomeet theessentialcharacteristics of an IndependentSystem Operator asset forthin Order No.888, as amended (61FR21,540(May 10, 1996), FERC Stats. & Regs.P 31,036 (1996); order on reh’g, Order No. 888-A, 62 FR 12,274(Mar.14,1997),FERCStats.&Regs.P31,048(1997);orderonreh’g,OrderNo. 888-B,81FERC¶61,248(1997),orderonreh’g,OrderNo.888-C,82FERC61,046(1998), aff’dinrelevantpartsubnom.TransmissionAccessPolicyStudyGroup,etal.v.FERC,225F.3rd 667 (D.C. Cir. 2000), aff’d sub nom. New York v. FERC, 535 U.S. 1 (2002)).
“Information”meansallinformationreceivedfrom(oronbehalfof)theSponsororany of its Subsidiaries or any of their respective Affiliates or Related Parties relating to any of the foregoing or, in each case, anyof their respective assets, businesses, oroperations, or relating to any of the Operative Documents or the transactions contemplated thereby, other than any such information that is publicly available to the Administrative Agent, the Collateral Agent, any Lender or any LC Issuer on a nonconfidential basis prior to disclosure by the Sponsor or any of its Subsidiaries or any of their respective Affiliates or Related Parties other than as a result of a breach of Section 12.33by such Person or its Related Parties.AnyPerson required to maintain
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the confidentiality of Information as provided in Section 12.33shall be considered to have compliedwithitsobligationtodosoifsuchPersonhasexercisedthesamedegreeofcareto maintain the confidentiality of such Information as such Person would accord to its own confidentialinformationor,inthecaseoftheAdministrativeAgentandtheCollateralAgent,the confidential information of other customers in similar transactions.
“InsuranceConsultant”meansMoore-McneilLLCoritssuccessorappointedpursuant to Section 11.10of this Agreement.
“InsuranceRequirements”isdefinedinSchedule7.2attachedhereto.
“Interconnection Agreements” means, collectively, the American Beech Interconnection Construction Service Agreement, the American Beech Interconnection Service Agreement, the Bluebird Interconnection Construction Service Agreement, the Bluebird Interconnection Service Agreement and the Prairie Generator Interconnection Agreement, each an “Interconnection Agreement”.
“Interest Period” means, as to any SOFR Loan or SOFR Borrowing, the period commencing on the date of such SOFR Loan or SOFR Borrowing and ending on the following Quarterly Date; provided that (i)if any Interest Period would end on a day other than a U.S. Government Securities Business Day, such Interest Period shall be extended to the next succeeding U.S. Government Securities Business Day unless such next succeeding U.S. Government Securities Business Daywould fall in the next calendar month, in which case such InterestPeriodshallendonthenextprecedingU.S.GovernmentSecuritiesBusinessDay, (ii)anyInterest Period that commences on the last U.S. Government Securities Business Dayof a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last U.S. Government Securities Business Dayof the last calendar month of such Interest Period and (iii)no Interest Period shall extend beyond the Maturity Date. For purposes hereof, the date of a SOFR Loan or SOFR BorrowinginitiallyshallbethedateonwhichsuchSOFRLoanorSOFRBorrowingismadeand thereafter shall be theeffective date of the most recent conversion or continuation of such SOFR Loan or SOFR Borrowing.
“Interparty Agreement” means, with respect to each of the Projects, a customary consent and agreement or interpartyagreement among, inter alia, the relevantClass AMembers and the Collateral Agent, dated as of the applicable Tax Equity Closing Date or TC Structure Effective Date, in form and substance reasonablysatisfactoryto the Required Lenders.
“Inverter Supply Agreements” means, collectively,theAmerican BeechPCSSkid and Commissioning Purchase Order, the Bluebird Inverter Supply Agreement and the Prairie PCU Supply Agreement, and each, an “Inverter Supply Agreement”.
“Investment” means, for any Person: (a)the acquisition (whether for cash, property, servicesorsecuritiesorotherwise)ofcapitalstock,bonds,notes,debentures,partnershiporother ownership interests or other Securities of, or capital contribution to, any other Person or any agreement to make any such acquisition or contribution; (b)the making of any deposit with, or
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advance, loan, extension of credit to, or purchase or other acquisition of an interest in, anyother Person, but excluding anysuch advance, loan or extension of credit having a term not exceeding onehundredeighty(180)daysarisinginconnectionwiththesaleofinventoryorsuppliesby such Person in the ordinary course of business; or (c)the entering into of any Guarantee of IndebtednessofanyotherPerson.Notwithstandingtheforegoing,HedgingAgreementsshallnot constitute “Investments”.
“Investment Grade Rating” means, with reference to a Person or any Securities, that the Person has or the Securities have been assigned a Credit Rating of: (a)“BBB” or better by S&P, (b) “Baa2” or better byMoody’s, or (c) “BBB” or better byFitch.
“IRBDocuments”meanseachofthedocumentssetforthonScheduleB,insubstantially the form provided to the Administrative Agent and counsel on or prior to the Financial Closing Date.
“IRB Transaction” means the transactions expressly contemplated by the IRB Documents.
“IRS”meanstheUnitedStatesInternalRevenueService.
“ITC” means the investment tax credit applicable to energy property as defined in Section 48 of the Code, or any successor to such section.
“JVCo”meansAC1ASOALLC,aDelawarelimitedliabilitycompany.
“Knowledge” means, with respect to any Person, the actual knowledge of any chief executiveofficer,president,chieffinancialofficer,orprincipalaccountingofficerofsuchPerson or anyother officer or employee of such Person with responsibilityfor the matter in question.
“LCAvailabilityPeriod”isdefinedinSection2.4(a)(i)hereof.
“LCCommitment”isdefinedinSection2.4(a)(i)hereof.
“LCCommitmentFees”isdefinedinSection3.1(a)(iv)hereof.
“LC Credit Event” means (a)the issuance of, or extension of the expiration date or increase in the amount of, any Letter of Credit or (b)the extension or deemed extension of any LC Loan.
“LC Issuer” or “LC Issuing Bank” means Natixis, New York Branch, and its successors and assigns in such capacity.
“LC Lender” means any Lender with (a)an obligation to advance LC Loans in an aggregate principal amount not to exceed such Lender’s LC Loan Commitment or (b)an outstanding LC Loan.
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“LCLoan”meanstheLoansinrespectofLettersofCreditspecifiedinSection2.4(c)(ii)or, as the context may require, their principal amount from time to time outstanding, whether outstanding as a Base Rate Loan or SOFR Loan or otherwise (each of which is a Type of Loan hereunder).
“LCLoanCommitment”means,withrespecttoanyLender,theDollarcommitmentof such Lender, if any, to acquire participations in the Letters of Credit and make LC Loans pursuanttoSection2.4(c)(ii)inanaggregateprincipalamountnottoexceedtheamountsetforth under the heading “LC Loans” opposite such Lender’s name on Part B of Schedule 1.1(a), or in the Assignment and Acceptancepursuant to whichsuch Lendershall have assumed its LC Loan Commitment, as applicable, as such commitment maybereduced orincreasedfrom timeto time pursuant to assignments by or to such Lender under Section 12.19.
“LC Loan Maturity Date” means the earlier to occur of (a)July 1, 2026 and (b)the date of any acceleration of the LC Loans following an Event of Default.
“LCNote”isdefinedinSection2.10(d)hereof.
“LC Obligations” means as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate amount of all Reimbursement Obligations with respect to Letters of Credit, if any.
“Lenders”meansthebanksorotherfinancialinstitutionsfromtimetotimepartyhereto as lenders and as LC Issuers.
“Lending Office” is defined in Section 10.4hereof.
“Letter of Credit” is defined in Section 2.4(a)(i)hereof.
“LetterofCreditFee”isdefinedinSection3.1(b)hereof.
“Lien” means, with respect to any asset, (a)any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset and (b)the interest of a vendor or a lessor under any conditional sale agreement, Capital Lease or title retentionagreement(oranyfinancingleasehavingsubstantiallythesameeconomiceffectasany of the foregoing) relating to such asset.
“Loan”means an LCLoan, a Construction Loan, a Bridge Loan or an Upsize BridgeLoan, as the context requires.
“Loan Commitments” means the LC Loan Commitments, Construction Loan Commitments, the Bridge Loan Commitments or the Upsize Bridge Loan Commitments, as the context requires.
“LoanFacility”meanstheLCLoanCommitments,ConstructionLoanFacility,the Bridge Loan Facilityor the Upsize Bridge Loan Facility, as the context requires.
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“LoanParties”means,collectively,(a)theDevcoBorrowerandDevcoPledgor(ineach case, solelyprior to the Back-Leverage Dates for all Projects), (b) the Opco Borrower and Opco Pledgor,(c)PrairieHoldings,HoldCo(Prairie)andPrairieProjectCompany(ineachcase,solely prior to theBack-LeverageDatefor thePrairieProject), (d)Bluebird SolarInvestments, HoldCo (Bluebird) and Bluebird Project Company (in each case, solely prior to the Back-Leverage Date for the Bluebird Project), (e) HoldCo (American Beech) and American Beech Project Company (in each case, solely prior to the Back-Leverage Date for the American Beech Project), (f) each Class B Member.
“Loss Proceeds” means insurance proceeds, condemnation awards or other similar compensation, awards, damages and payments or relief (exclusive, in each case of proceeds of businessinterruptioninsuranceandotherpaymentsreceivedforinterruptionofoperationsduring the applicable period and the proceeds of workers’ compensation, employees’ liability and automobile liability insurance) in respect of any Casualty Event or Event of Eminent Domain.
“LossProceedsAccount”hasthemeaningsetforthintheDepositaryAgreement.
“Major Project Participants” means any Person (other than a Project Group Member) that is party to an Operative Document; provided that such Person shall cease to be a Major ProjectParticipantwhenallmaterialobligations(otherthanwithrespecttoconfidentialityorany contingent obligations (other than warrantyobligations) with respect to which no claim has then been asserted) of such Person under all Operative Documents to which it is a party have been performed and/or paid in full.
“MandatoryPrepayment”isdefinedinSection2.8(b)(i)hereof.
“Master Services Agreements” means, with respect to each Project, a Master Services Agreement in substantially the form provided to the Administrative Agent and counsel on or priorto theFinancialClosingDatewithsuchchangestheretoasarereasonablyacceptabletothe Administrative Agent, and each, a “Master Services Agreement”.
“Material Adverse Effect” means a material adverse effect on (a)the business, operations,affairs,financialcondition,assetsorpropertiesoftheBorrowerand/oranyProject, (b)theabilityoftheLoanPartiestoperformtheirmaterialobligationsundertheCredit Documentsor(c)thevalidityorenforceabilityofthisAgreementortheotherCreditDocuments.
“MaterialGovernmentalApprovals”meanstheGovernmentalApprovalsnecessaryor required for (a)the execution, delivery and performance by the Borrower of the Credit Documents or (b)the development, ownership, construction (as applicable), operation and maintenanceoftheProjectsinaccordancewithApplicableLaw,except,inthecaseofclause(b), forsuchGovernmentalApprovalsthefailureofwhichtoobtainormaintaincouldnotreasonably be expected to materially or adversely affect any Project.
“Material Indebtedness” means, at any time, any Indebtedness of the Borrower and their Subsidiaries which, individually or collectively, has an aggregate outstanding principal amount at such time in excess of two million Dollars($2,000,000) (other than (a)Indebtedness
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evidenced by any Credit Document, or (b)intercompany Indebtedness among the Borrower or among the Borrower and their Subsidiaries).
“MaturityDate”meanstheConstructionLoanMaturityDate,theBridgeLoanMaturity Date, the LC LoanMaturityDateand theUpsizeBridge LoanMaturityDate,as thecontext may require.
“MBRAuthority”meansanorderissuedbyFERC(a)granting,pursuanttoSection205 oftheFPAandFERC’sregulationsthereunder,authorizationtomakewholesalesalesofelectric energy,capacityand,totheextentapplicable,certainAncillaryServicesatnegotiated, market-based rates; (b) accepting a tariff for filing providing for such sales; and (c) granting the regulatorywaiversandexemptions,andtheblanketauthorizationscustomarilygrantedtoentities with MBR Authority, including blanket authorization for the issuance of securities and assumptionsofliabilitiesunderSection204oftheFPAandFERC’simplementingregulationsat 18 C.F.R. Part 34.
“Mechanical Completion Date” means the date on which, (a) with respect to the American Beech Project, “Project Mechanical Completion”, as defined in the American Beech EPC Contract, (b) with respect to the Bluebird Project, “Project Mechanical Completion” as definedintheBluebirdEPCContract,(c)withrespecttothePrairieProject,“ProjectMechanical Completion” as defined in the Prairie EPC Contract, occurs.
“MerchantCurve”meansmerchantenergycurvespreparedbyWoodMackenzieorany other Person reasonably satisfactory to the Administrative Agent.
“MinimumEquityCommitment”meansthegreaterof(i)20%oftheaggregateamount of Project Costs as set forth in the Base Case Model on the Financial Closing Date and (ii) the aggregate amount of Project Costs as set forth in the Base Case Model on the Financial Closing minus the aggregate Construction Loan Commitments, Bridge Loan Commitments and Upsize Bridge Loan Commitments; provided, that if anyProject is sold or transferred pursuant to clause (k) of the definition of “Permitted Disposition”, the Minimum Equity Commitment will be redetermined at such time based on an updated Base Case Model, reasonably satisfactory to the Administrative Agent, updated solely to reflect such sale or transfer and excluding the Project Costs, Project Revenues, Commitments and other items attributable to such Project.
“Module Supplier” means (a) with respect to the Bluebird Project and American Beech Project, Jinko Solar (U.S.) Industries Inc. and (b) with respect to the Prairie Project, Runergy USA Trading LLC.
“ModuleSupplierGuarantors”means,collectively,theguarantorsundertheAmerican Beech Module Supplier Parent Guarantyand the Bluebird Module Supplier Parent Guaranty.
“ModuleSupplyAgreements”means,collectively,theAmericanBeechModuleSupply Agreements, American Beech Module Supplier Parent Guaranty, Bluebird Module Supply Agreement, Bluebird Module Supplier Parent Guaranty, Bluebird Module Buyer Parent
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Guaranty,PrairieModuleSupplyAgreementandPrairieModulePurchaserParentGuaranty,and each, a “Module Supply Agreement”.
“Moody’s”meansMoody’sInvestorsService,Inc.
“Mortgages” means the American Beech Mortgage, the Bluebird Mortgage and the Prairie Mortgage.
“MortgagedProperty”hasthemeaningassignedtotheterm“Property”intheAmerican Beech Mortgage, Bluebird Mortgage and the Prairie Mortgage, as applicable.
“Multiemployer Plan” means a “multiemployer plan” as defined in Section4001(a)(3) of ERISA for which anyLoanPartyor anyERISA Affiliatehad anobligation to contributeover the five (5) preceding calendar years.
“NationalFloodInsuranceProgram”meanstheprogramcreatedpursuanttotheFlood Laws.
“NERC”meanstheNorthAmericanElectricReliabilityCorporationoranysuccessor, and any regional entity thereunder exercising delegated authority therefrom (or their respective successors).
“NetCashProceeds”means,asapplicable:
(a)with respect to any Asset Disposition, the excess, if any, of (i) the sum of Cash and Permitted Investments actually received by any Project Group Member in connection with such Asset Disposition (including any Cash or Permitted Investments received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but onlyas and when so received) and not diverted to the Class A Member pursuant to the terms of the applicable HoldCo LLCA over (ii) the sum of (A) the reasonable out of pocket costs, fees, commissions, premiums and expenses (including legal fees and expenses) incurred by the Loan Parties in connection with such Asset Disposition to the extent such amounts were not deducted in determining the amount referred to in clause(i), (B) federal, state, provincial, foreign and local Taxes reasonablyestimated to beactuallypayable bythe Loan Parties within thecurrent or theimmediatelysucceedingtaxyearasaresultofanygainrecognizedinconnectiontherewithto the extent such amounts were not deducted in determining the amount referred to in clause(i), and (C) any amounts due to the Lenders under Sections2.11and 10.3hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty) incurred by Borrower following application of Section2.8(c)in connection with a Mandatory Prepayment in connection with such Asset Disposition.
(b)with respect to the incurrence or issuance of any Indebtedness by any Project Group Member the excess, if any, of (i)the sumoftheCash andPermitted Investments actually received by any Project Group Member in connection with such incurrence or issuance and not divertedtotheClassAMemberpursuanttothetermsoftheapplicableHoldCoLLCAover (ii)the sum of (A)theunderwritingdiscounts and commissions orothersimilarpayments,other
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reasonable out of pocket costs, fees, commissions, premiums and expenses (includinglegal fees andexpenses)incurredbytheLoanPartiesinconnectionwithsuchincurrenceorissuancetothe extent such amounts were not deducted in determining the amount referred to in clause(i), and (B)any amounts due to the Lenders under Sections2.11and 10.3hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty) incurred by Borrower following application of Section2.8(c)in connection with a Mandatory Prepayment in connection with such incurrence or issuance of Indebtedness.
(c)withrespecttotheterminationofanyProjectDocument,theexcess,ifany,of (i) the sum of Cash and Permitted Investments actually received by any Project Group Member in connection with such termination and not diverted to the Class A Member pursuant to the terms of the applicable HoldCo LLCA over (ii) the sum of (A)the reasonable costs, fees, commissions, fees, premiums and expenses (including legal fees and expenses) incurred by the Loan Parties in connection with such termination to the extent such amounts were not deducted indeterminingtheamountreferredtoinclause(i),and(B)anyamountsduetotheLendersunder Sections 2.11and 10.3hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty) incurred by Borrower following application ofSection 2.8(c)in connection with a Mandatory Prepayment in connection with such termination of Project Documents.
(d)with respect to any Casualty Event or Event of Eminent Domain, the aggregate amount of Loss Proceeds actually received by any Project Group Member (including by distribution from its Subsidiary) in connection with such Casualty Event or Event of Eminent Domain, in cash or Cash Equivalents.
“Non-RecourseEntity”isdefinedinSection12.21hereof.
“Non-RecourseParty”isdefinedinSection12.21hereof.
“Note” means, collectively, the Construction Loan Notes, the Bridge Loan Notes, theUpsize Bridge Loan Notes and the LC Notes.
“NoticeofBorrowing”meansaNoticeofConstructionLoanBorrowing,Noticeof Bridge Loan Borrowing or a Notice of Upsize Bridge Loan Borrowing.
“Notice of Bridge Loan Borrowing” is defined in Section 2.2(b)hereof.
“NoticeofConstructionLoanBorrowing”isdefinedinSection2.1(b)hereof.
“Notice of Continuation/Conversion” is defined in Section 2.7(a)hereof.
“Notice of Issuance” is defined in Section 2.4(b)(i)hereof.
“NoticeofUpsizeBridgeLoanBorrowing”isdefinedinSection2.3(b)hereof.
“O&M Agreements” means, with respect to each Project, an Operations and Maintenance Agreement in substantially the form provided to the Administrative Agent and
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counsel on or prior to the Financial Closing Date with such changes thereto as are reasonably acceptable to the Administrative Agent, and each, a “O&M Agreement”.
“Obligations”means,(a)allobligationsoftheBorrowertopayprincipalandintereston the Loans; (b)until such time that they become Loans pursuant to Section2.4(c)(ii), all Reimbursement Obligations; (c)all fees and charges payable under this Agreement; and (d)all otherpaymentobligationsoftheBorrowerandtheotherLoanPartiesarisingunderorinrelation to anyCredit Document (including all obligations of the Borrower underthePermitted Hedging Agreements), in each case, whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired; provided, however, that Obligations shall not include any Excluded Swap Obligations.
“OFAC”meanstheOfficeofForeignAssetsControloftheUnitedStatesDepartmentof the Treasury.
“Officer’s Certificate” means a certificate of an Authorized Officer of each applicable Loan Party.
“OpcoBorrower”hasthemeaninggiveninthepreamble.
“OpcoPledgor”meansMN8PortfolioIVLLC,aDelawarelimitedliabilitycompany.
“Operating Costs” means, with respect to each Project, for any period, all actual cash maintenanceandoperationcostsandexpensesinrelationtosuchProjectpaidforsuchperiod,all costs and expenses of managing, administering and operating such Project, the costs of repairs and replacements for such period, all applicable federal, state and local taxes, including real estate taxes, paid for such period, insurance premiums and deductibles paid during such period, costs of any utilities and consumables for such period, payments under any lease paid for such period, payments pursuant to the agreements for themanagement, operation and maintenance of such Project (including, without limitation, pursuant to the applicable Project Documents) paid forsuchperiod,alllegal,accounting,audit,taxpreparationandotherprofessionalfees,costsand expenses with respect to such Project paid for such period, costs and expenses in connectionwith obtaining, transferring, maintaining or amending or otherwise incurred in connection with the requirements of anyApplicable Permits paid duringsuch period, and reasonable general and administrative expenses paid during such period, including payments to the Borrower’sAffiliates that are the counterparties to the applicable Project Documents (including, without limitation, any management fees under the Tax Equity Documents or TC Structure Documents, as applicable); provided, however, that Operating Costs shall not include (x) any non-cash charges, including depreciation or obsolescence charges or reserves therefor, amortization of intangibles or other bookkeeping entries of a similar nature and (y) interest charges and charges for the payment or amortization of principal of indebtedness of the Borrower (other than those relating to Permitted Indebtedness described in clauses (c), (d), (f)and (i)of the definition thereof).
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“Operative Document” means, individuallyor collectively, as the context mayrequire, the Credit Documents, the Project Documents, and, with respect to each Project, the applicable Tax Equity Documents, TC Structure Documents or Tax Credit Transfer Documents.
“OptionalPrepayment”isdefinedinSection2.8(a)hereof.
“Organizational Documents” means, as to any Person, the articles of incorporation, certificate of formation, bylaws, limited liability company agreement, operating agreement, partnership agreement or other organizational or governing documents of such Person.
“Original Project Document” means, individually or collectively, as the context may require,theAmericanBeechJVOperatingAgreement,AmericanBeechJVOperating Agreement Guaranty, the Module Supply Agreements, the Warehouse Agreements, the O&M Agreements,theBluebirdEnergyManagementAgreement,theMasterServicesAgreements,the EPC Contracts, the HV Contracts, the Transformer Purchase Agreements, the Tracker Supply Agreements,theInverterSupplyAgreements,theInterconnectionAgreements,theRealProperty Documents, the Construction Management Agreement, the Power Purchase Agreements, the Prairie Shared Facilities Agreement, and (once executed) the IRB Documents.
“Other Connection Taxes” means, with respect to any recipient, Taxes imposed as a resultofapresentorformerconnectionbetweenanyrecipientandthejurisdictionimposingsuch Tax (other than connections arising from the recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in anyLoan or Credit Document).
“Other Taxes” means all present or future stamp, court or documentary, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a securityinterest under, or otherwise with respect to, anyCredit Document, except anysuch Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.13(c)).
“Participant Register” is defined in Section 12.18hereof.
“Participating Interest” is defined in Section 2.4(e)(i)hereof.
“ParticipatingLCLender”isdefinedinSection2.4(e)(i)hereof.
“PATRIOT Act” is defined in Section 12.32hereof.
“Payment Date” means (a)as to any Base Rate Loan, each of the last Business Day in March, June, September and December in each year and (b)as to anySOFR Loan, the last U.S. Government Securities Business Day of each Interest Period therefor; provided that the first Payment Date shall be the last Business Day in March 2025.
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“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA.
“Permits” means anyaction, approval, consent, waiver, exemption, variance, franchise, approval,ruling,permit,certification,exemptionorder,authorization,rightorlicenseoforfrom, or filing for registration by or with, a Governmental Authority.
“PermittedDispositions”means:
(a)any sale, assignment, issuance, transfer or other disposition of any assets or property by and among the Project Group Members (other than any Transfer of ownership interests in any Project Group Member unless such Transfer is made in connection with a Permitted TE/TC Reorganization);
(b)anysale of energy, capacity, alternative energycredits, renewable energycredits, Ancillary Services or other products by a Project Group Member;
(c)thegrantingorexistenceofanyPermittedLien;
(d)anyCasualtyEventorEventofEminentDomain;
(e)any sale, assignment, transfer or other disposition of any assets, land (including land options) or property that (i)is determined by a Project Group Member to be worn-out, obsolete or not necessary in the business of such Project Group Member, (ii)is sold or transferredatfairmarketvalueand(iii)thathasavaluenotinexcessofonemillion Dollars($1,000,000)persaleorseriesofrelatedsalesandnotinexcessoftwomillion Dollars ($2,000,000) in the aggregate;
(f)anysale or other such disposition of property(other thanMortgagedProperty)so long as the property that is disposed is of equal or lesser value and utility than the property that replaces it (which replacement property shall constitute Collateral as shall be evidenced to the reasonable satisfaction of the Required Lenders) if the aggregate value of the property being replacedinoneoraseriesofrelatedtransactionsisnotinexcessoftenmillion Dollars ($10,000,000);
(g)the transfer or issuance of “Class A” interests (or equivalent) in any HoldCo to the relevant Class A Member in accordance with Tax Equity Documents or TC Structure Documents, as applicable;
(h)transactionspermittedpursuanttoSection8.4orSection8.8;
(i)any sale, assignment, transfer or other disposition of ITCs made in accordance with applicable Tax Credit Transfer Documents executed in accordance with Section 7.22or inaccordance with an Additional Project Document consented to by the Required Lenders;
(j)RestrictedPaymentsmadeinaccordancewithSection8.7;
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(k)so long no Event of Default (other than anyEvent of Default applicable solelyto theProjectbeingsoldortransferred)hasoccurredandiscontinuingandtheprepaymentrequired bySection2.8(b)(i)(8)is madesubstantiallyconcurrentlywith theconsummation ofsuch sale or transfer, sales or transfers (including transfers to Affiliates) of any Project, provided, that the American Beech Project shall not be permitted to be sold or transferred prior to the date on which the Mechanical Completion Date with respect to the Prairie Project has occurred; and
(l)any sale, assignment, issuance, transfer or other disposition of any assets or property of Bluebird Project Company to County of Harrison, Kentucky pursuant to the IRB Transaction, provided, that the Bluebird Project Company retains the right to control and use such assets and propertyas contemplated under the Project Documents and Credit Documents.
“PermittedEncumbrances”means the specific exemptions to coverage identified in ScheduleBtoeachTitlePolicy(ortheProFormaTitlePolicydeliveredontheFinancialClosing Date) and exceptions listed or described in the landowner estoppel certificates and reasonablyapproved (or accepted) by the Required Lenders.
“Permitted Hedging Agreement” means any Hedging Agreement, including with respect to interest rate hedging, entered into by a Borrower with a Permitted Hedging Counterparty that is entered into in the ordinary course of business and not for the purpose of speculation in accordance with Section 7.17.
“PermittedHedgingCounterparty”meansanyPerson(otherthantheBorrower)thatis the Administrative Agent, a Lender or any of their respective Affiliates at the time such Person enters into a Hedging Agreement with the Borrower.
“PermittedIndebtedness”means:
(a)IndebtednesspursuanttothisAgreement;
(b)Indebtedness pursuant to the Credit Documents (including obligations of the Borrower under Permitted Hedging Agreements);
(c)solely with respect to the Project Companies, trade accounts payable (other than for borrowed money) arising, and accrued expensesincurred,intheordinarycourseofbusiness, so long as such trade accounts payable or accrued expenses are (i)notmorethansixty(60)days past due or being contested in good faith by appropriate proceedings promptly instituted and diligently conducted and (ii) are covered by the applicable Project Budget;
(d)solelywithrespecttotheProjectCompanies,purchasemoneyorleaseobligations to the extent covered by the applicable Project Budget and incurred in the ordinary course of business, in an aggregate amount not to exceed two million Dollars ($2,000,000);
(e)unsecuredloansprovidedbyaBorrower,Class BMemberorClass AMemberto a HoldCo in accordance with the applicable HoldCo LLCA;
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(f)Indebtedness consisting of the financing of insurance premiums in the ordinary course of business, in an aggregate amount not to exceed five hundred thousand Dollars ($500,000);
(g)to the extent constituting Indebtedness, obligations under any Permit or Project Document (other than Indebtedness for borrowed money);
(h)any other unsecured Indebtedness (other than from an Affiliate of the Borrower) nottoexceedtwomillionDollars($2,000,000)inaggregateprincipalamount,ineachsuchcase, incurred for the purpose of working capital, operating reserves, to the extent necessary for the construction and operation of a Project, or for any other purpose not inconsistent with this Agreement;
(i)Indebtedness arising from the honoring bya bank or other financial institution of acheck,draft,paymentorderorotherdebitdrawn,presentedorissuedagainstinsufficientfunds in the ordinary course of business; provided that the Indebtedness described in this clause (i)is extinguished within fifteen (15) Business Days of its incurrence;
(j)IndebtednessexistingasoftheFinancialClosingDateandlistedonSchedule 5.17hereof; and
(k)to the extent constitutingIndebtedness, contingentobligationsunderorin respect of performance bonds, bid bonds, appeal bonds, surety bonds, financial assurances and completion guarantees and indemnification obligations, in each case incurred in the ordinary course of business and not in connection with Indebtedness for borrowed money.
“PermittedInvestments”means:
(a)investments in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extentsuchobligationsarebackedbythefullfaithandcreditoftheUnitedStatesofAmerica),in each case maturing in not more than three hundred sixty-five(365) days from the date of acquisition thereof;
(b)investments in certificates of deposit, bankers’ acceptances and time deposits maturingwithinthreehundredsixty-five(365)daysfromthedateofacquisitionthereofissuedor guaranteed by or placed with, and money market deposit accounts issued or offered by, any Acceptable Bank;
(c)investments in commercial paper, maturing in not more than three hundredsixty-five(365) days from the date of acquisition thereof, which are rated on the date of acquisition at least A-1 or P-1 by S&P or Moody’s, respectively;
(d)fullycollateralizedrepurchaseagreementswithatermofnotmorethanthirty(30) days for securities described in clause (a)above and entered into with an Acceptable Bank;
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(e)investments in money-market funds havingassetsof atleast$500,000,000 which investsolelyinsecuritiesdescribedin clauses(a)through (d)aboveandwhichhaveamaximum maturity of one(1) year or less after the date of acquisition; provided that, the average maturity date of the holdings in anysuch funds shall not exceed one hundred eighty(180) days;
(f)other short-term investments utilized in accordance with normal investment practices for cash management in investments of a type analogous to the foregoing; and
(g)investments bythe Bluebird Project Companyand Bluebird Solar Investments in each other or in or to County of Harrison, Kentuckypursuant to the IRB Transaction and investments by the American Beech Project Company in JVCo as required pursuant to the American Beech JV Operating Agreement (including all payments required thereby).
“PermittedLiens”means:
(a)LienscreatedpursuanttotheOperativeDocuments;
(b)Liens imposedbyanyGovernmental Authorityfor Taxesthat arenot yetdue and payable or that are the subject of a Good-Faith Contest;
(c)Liensinconnectionwithclauses(b)and(d)ofthedefinitionof“Permitted Indebtedness”;
(d)LiensexistingasoftheFinancialClosingDateandlistedonSchedule1.1(b)hereof;
(e)Liensconstitutingsurveyrestrictions,encumbrancesinthenatureofzoning restrictions, condemnations, easements, encroachments, covenants, rights-of-way, defects, mineral interests that appear of record, irregularities and rights or restrictions of record on the title or use of real property, in each case that (A) do not secure any monetary obligations, (B) would not materially detract from the value of the applicable property for the use as of the date hereof, (C) would not interfere in any material respect with the ordinary conduct of business of theBorrowerasconductedasofthedatehereoforascontemplatedbytheOperativeDocuments, (D)couldnotreasonablybeexpectedtoresultinamaterialchangetothescopeofanyProjector in asubstantialchangefrom thegeneralnatureofthebusiness inwhichanyProjectCompanyor the Borrower is engaged on the date of this Agreement or as contemplated by the Operative Documents, and (E) could not reasonablybe expected to result in a Material Adverse Effect;
(f)deposits or pledges to secure statutory obligations relating to worker’s compensation and/or unemployment insurance or other social security legislation;
(g)carriers’, warehousemen’s, mechanics’, workmen’s, materialmen’s, suppliers’, constructionorothersimilarLiensarisingintheordinarycourseofbusinessorintherestoration, repair or replacement of the Projects in accordance with this Agreement or in connection with the construction of the Projects that are (x)not past-due or (y)are being contested in good faith and that are adequatelybonded or in respect of which adequate reserves have been established;
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(h)judgment Liens or liens in favor of a Governmental Authority arising in connection with any condemnation or eminent domain proceeding by such Governmental Authority, which proceeding, in each case, does not otherwise constitute an Event of Default;
(i)Liens, deposits or pledges to secure obligations or performance of bids, leases, tenders, or contracts (other than for the repayment of borrowed money), or for purposes of like nature in the ordinary course of its business;
(j)customary rights of set-off, revocation, refund or chargeback under deposit agreements or under the UniformCommercial Code in favor of banks or other financial institutions wherethe Borrowermaintains deposits in theordinarycourse ofbusiness,whichare not created with the intention of effectively securing debt;
(k)Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods arising in the ordinary course of business;
(l)Liens solely from precautionary UniformCommercial Code financing statement filings with respect to operating leases;
(m)Liens securing payment of premiums on insurance to be paid in accordance with Section7.2; provided,however, that the amount ofsuch Lienshall not exceed the amount ofthe premium being financed at such time and related taxes, fees and assessments, and any recourse withrespecttosuch Lienshallbelimitedtotheinsuranceproceedsthatarepayableinrespectof such insurance premium which is being financed;
(n)Liens created pursuant to the Organizational Documents of any Project Group Member of any of its Subsidiaries (including any Tax Equity Documents or TC Structure Documents);
(o)exceptions listed or described in the landowner estoppel certificates and reasonably approved by the Required Lenders;
(p)PermittedEncumbrances;
(q)[Reserved];
(r)farm tenant leases that are legally or contractually subordinate to the applicable Real Property Documents; and
(s)LiensontheassetsoftheBluebirdProjectCompany (other thanfor borrowed money) pursuant to the IRB Documents.
“PermittedTE/TCReorganization”isdefinedinSection8.4hereof.
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“Person” means any natural person, firm, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority, state or agency of a state or any association, consortium or other entity.
“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of TitleIV of ERISA or Section412 of the Code or Section302 of ERISA,andinrespectofwhichanyLoanPartyoranyERISAAffiliateare(or,ifsuchplanwere terminated, would under Section4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.
“Pledge Agreement (Devco)” means that certain Pledge Agreement, dated as of the Financial Closing Date, duly executed by the Devco Pledgor and the Collateral Agent, as amended, restated, modified, renewed, extended, refunded, refinanced, replaced, supplemented or otherwise modified from time to time.
“Pledge Agreement (Opco)” means that certain Pledge Agreement, dated as of the Financial Closing Date, duly executed by the Opco Pledgor and the Collateral Agent, as amended, restated, modified, renewed, extended, refunded, refinanced, replaced, supplemented or otherwise modified from time to time.
“Pledge Agreements” means, collectively, the Pledge Agreement (Devco), the Pledge Agreement (Opco) and any Class A Member Pledge Agreement.
“Pledgor”means, (a)prior tothedateon whichthe Back-Leverage DateforallProjects hasoccurred, collectively,the DevcoPledgor andthe OpcoPledgor, and each, a“Pledgor”,and (b) from and after the date on which the Back-Leverage Date for all Projects has occurred, the Opco Pledgor.
“Power Purchase Agreements” means, collectively, the Bluebird Power Purchase Agreement, the American Beech Power Purchase Agreement, and the Prairie Power Purchase Agreements, and each, a “Power Purchase Agreement”.
“Power Purchasers” means (a) with respect to the American Beech Power Purchase Agreement, Microsoft Corporation, a corporation organized under the laws of Washington, (b) with respect totheBluebirdPowerPurchaseAgreement, J.Aron &CompanyLLC, aNewYork limited liability company, and (c) with respect to the Prairie Power Purchase Agreement, (i) Akamai Technologies, Inc., a Delaware corporation, (ii) City of Cambridge, a political subdivision and municipal electricityaggregate program, (iii) Wayfair LLC, a Delaware limited liability company and (iv) Teradyne, Inc., a Massachusetts corporation.
“PrairieEPCContract”meansthat certainEngineering,ProcurementandConstruction Agreement,datedasofOctober18,2024,byandbetweenPrairieProjectCompanyandBayWa r.e. Power Solutions, Inc., including that certain Limited Notice to Proceed, dated as of December 29, 2023, byand between Prairie Project Companyand BayWa r.e. Power Solutions, Inc.
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“Prairie Generator Interconnection Agreement” means that certain Generator Interconnection Agreement, dated as of October 24, 2022, by and among Prairie Project Companyand Ameren Services Companyas agent for Ameren Illinois Companyd/b/a/ Ameren Illinois and the Midcontinent Independent System Operator, Inc.
“Prairie Holdings” means Prairie Solar Holdings LLC, a Delaware limited liability company.
“Prairie Module Purchaser Parent Guaranty” means that certain Limited Guaranty, dated as of August 23, 2024, made byBayWa r.e. Solar Projects LLC in favor of RunergyUSA Trading LLC.
“Prairie Module Supply Agreement” means that certain Module Supply Agreement, dated as of May 24, 2024, by and between Prairie Project Companyand RunergyUSA Trading LLC.
“Prairie Mortgage” means that certain Leasehold and Easement Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing (Illinois) from Prairie Project Companyfor the benefit of Collateral Agent .
“Prairie PCU Supply Agreement” means that certain Supply Agreement dated September 18, 2024, between Prairie Project Company and GE Grid Solutions, LLC.
“Prairie Power Purchase Agreements” means, collectively, (a)that certain Renewable Energy Product Purchase Agreement, dated as of September 26, 2023, by and between Prairie Project Company and Akamai Technologies, Inc., a Delaware corporation, (b)that certain Renewable Energy Product Purchase Agreement, dated as of September 14, 2023, by and between Prairie Project Company and City of Cambridge, a political subdivision and municipal corporation of the Commonwealth of Massachusetts, (c) that certain Renewable Energy Product Purchase Agreement, dated as of December 16, 2022, by and between Prairie Project Company andTeradyne,Inc.,aMassachusettscorporation,asamendedbythatcertainFirstAmendmentto Renewable Energy Product Purchase Agreement, dated June 20, 2023, that certain Second AmendmenttoRenewableEnergyProductPurchaseAgreement,datedJuly21,2023,thatcertain Third Amendment to Renewable Energy Product Purchase Agreement, dated August 19, 2023, that certain Fourth Amendment to Renewable Energy Product Purchase Agreement, dated August 25, 2023, that certain Fifth Amendment To Renewable Energy Product Purchase Agreement, dated September 1, 2023, and that certain Sixth Amendment to Renewable Energy Product Purchase Agreement, dated September 8, 2023, and (d)that certain Renewable Energy Product Purchase Agreement, dated as of December 22, 2022, by and between Prairie Project Company and Wayfair LLC, a Delaware limited liability company, as amended by that certain First Amendment to Renewable Energy Product Purchase Agreement, dated June 16, 2023, that certain Second Amendment to Renewable Energy Product Purchase Agreement, dated July 21, 2023, that certain Third Amendment to Renewable Energy Product Purchase Agreement, dated August 19, 2023, that certain Fourth Amendment to Renewable Energy Product Purchase Agreement, dated August 31, 2023, and that certain Fifth Amendment To Renewable Energy
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Product Purchase Agreement, dated September 8, 2023, and each of the agreements in the foregoing clauses (a)through (d)individually, a “Prairie Power Purchase Agreement”.
“PrairieProject”meanstheapproximately183MWsolarphotovoltaicenergyproject located in Champaign County, Illinois.
“PrairieProjectBeginningofConstructionCertificate”meansthatcertaincertificate in the form attached as Exhibit Ohereto.
“PrairieProjectCompany”means,PrairieSolar1,LLC,aDelawarelimitedliability company.
“PrairieProjectEnergyCommunityAdderCertificate”meansthatcertaincertificate in the form attached as Exhibit Rhereto.
“Prairie Shared Facilities Agreement” means (a)that certain Consent Agreement, dated as of March 27, 2023, by and between Prairie Project Company and Little Prairie Solar LLC and (b)that certain Shared Facilities Agreement, dated as of August 21, 2024, by and between Prairie Project Company and Little Prairie Solar LLC.
“PrairieSite”meanstherealpropertydescribedonExhibitA-2ofthePrairieProForma.
“Prairie Title Policy” is defined in Section 7.25(d)hereof.
“PrairieTrackerPilePurchaseOrder” means thatcertain Purchase Order No. P0284-6259, dated September 5, 2024, by and between Prairie Project Company and Unimacts Global, LLC, as amended byChange Order No. 1, dated September 19, 2024.
“Prairie Tracker Supply Agreement” means that certain Tracker Master Supply Agreement, dated as of August 30, 2024, by and between Prairie Project Company and Array Tech, Inc., a New Mexico corporation.
“Prairie Transformer Purchase Agreement” means that certain Purchase Order No.P-0235-911,datedasofAugust23,2019,byandbetweenVirginiaTransformerCorporationand Prairie Project Company(as assignee of BayWa r.e.SolarProjects LLC,pursuant tothat certain Assignment and Assumption Agreement, dated as of September 11, 2023, by and between BayWa r.e. Solar Projects LLC and Prairie Project Company), as amended by that certain Change Order No. 1, dated February 28, 2020, and that certain Change Order No. 2, dated January 9, 2024.
“PrairieSurvey”isdefinedinSection6.1(q)hereof.
“PrairieWarehouseAgreement”meanstheWarehouseAgreement,datedasofOctober 3, 2024, between Prairie Project Company and C.H. Robinson Worldwide, Inc.
“PrepaymentDate”isdefinedinSection2.8(b)(ii)hereof.
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“Pro Forma Title Policy” means each of the Bluebird Pro Forma, the American Beech Pro Forma, and the Prairie Pro Forma.
“ProjectBudgets”isdefinedinSection6.1(n)hereof.
“Project Companies” means the American Beech Project Company, the Bluebird Project Company and the Prairie Project Company, and each, a “Project Company”.
“Project Completion Date” means, the earliest of (i)(a) with respect to the American BeechProject,May31,2026,(b)withrespecttotheBluebirdProject,December31,2025,and (c) with respect to the Prairie Project, June 30, 2026, (ii) sixty (60) days prior to the “Completion Deadline”, “Commitment Expiration Date” or similar term as defined in the Tax Equity Documents or TC Structure Documents, as applicable, for such Project (such date, the “Tax Document Deadline”), as such date is actuallyextended under the applicable Tax Equity Documents or TC Structure Documents and (iii) sixty (60) days prior to the Guaranteed Completion Date, for such Project, as such date is actuallyextendedunder the applicablePower Purchase Agreements.
“Project Costs” means, with respect to any Project, (a)the costs of developing, designing, engineering, equipping, procuring, constructing, starting up, commissioning, acquiringandtestingsuchProjectnecessarytocauseCompletiontooccurinaccordancewiththe applicable Project Documents (including costs and fees paid or payable to third parties (including any payments previously made to the original developer of such Project)), including the cost of all labor, services, materials, supplies, equipment, tools, transportation, supervision, storage, training, balance of plant contingency, demolition, site preparation, civil works, remediation and allocated overhead confirmed by the Independent Engineer in connection therewith; (b)the cost to the Borrower of constructingtheswitchingstation and feederlinesand substation interconnecting such Project to the applicable transmission system, interconnecting and synchronizing such Project to such system and completing any necessary or desirable transmission system upgrades; (c)all costs and expenses incurred prior to or during the Construction Loan Availability Period in respect of the Project Documents, including, without limitation, remediation costs and any payments and liquidated damages paid by or on behalf of Borrower or any of its Affiliates under the Project Documents and any other contract or agreement relating to the Projects (including the reimbursement of any such Project Costs paid by an Affiliate); (d)the cost of acquiring and using any fee, lease, easement and any other necessary interest in the applicable Site; (e)real and personal property taxes, ad valorem taxes, sales, use and excise taxes and insurance (including title insurance) premiums payable with respecttosuchProjectincurredpriortoorduringtheConstructionLoanAvailabilityPeriod; (f)all interest costs (including any net payments payable by the Borrower under the Permitted Hedging Agreements or any capitalized interest in respect of the Construction Loans or Bridge Loans) and fees (including any capitalized Commitment Fees in respect of the Construction Loans and Bridge Loans, and all fees, interest and otheramounts payable bytheBorrowerunder the Credit Documents, but excluding reimbursement obligations of the Borrower with respect to drawings under any letter of credit issued hereunder) in respect of the Obligations during the ConstructionLoanAvailabilityPeriod;(g)initialworkingcapitalrequirementsofsuchProjectas
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set forth in the applicable Project Budget; (h)the costs of acquiring Permits for such Project incurred prior to or during the Construction Loan Availability Period; (i)all general and administrative costs of the Borrower and its Subsidiaries attributable to such Project incurred prior to or during the Construction Loan AvailabilityPeriod as set forth in the applicable Project Budget; (j)the cost of establishing a spare parts inventory for such Project (if any); and (k)all other fees, costs and expenses incurred by the Borrower or any of its Affiliates relating to the development, construction, acquisition and closing of the financing (including any tax equity financing) ortax credit monetizationforsuchProject,otherthananydevelopmentfeepayableto the Sponsor or its Affiliates.For the avoidance of doubt, to the extent consistent with the foregoing, “Project Costs” shall include (i) all fees, costs, expenses and payments due under the applicable Power Purchase Agreement (including settlement payments) incurred prior to or during the Construction Loan Availability Period and (ii) financial, legal and consulting fees, costs and expenses as set forth in the applicable Project Budget.
“Project Document Proceeds” means Net Cash Proceeds in respect of the termination of any Project Document (other than in the case of IRB Documents, amounts paid by a Project Group Member).
“ProjectDocuments”meanstheOriginalProjectDocumentsandtheAdditionalProject Documents.
“ProjectEntity”meanstheBorrowerandeachHoldCo.
“ProjectGroupMember”means,collectively,eachBorrowerandtheirSubsidiaries.
“Project Revenues” means the sum of all cash (including by distribution or otherwise) received by the Borrower and its Subsidiaries derived from the indirect ownership or operation oftheProjects(otherthanNetCashProceeds(excluding,fortheavoidanceofdoubt,anycapital contributions made by a Class A Member pursuant to the Tax Equity Documents or the TC Structure Documents, any payment pursuant to the Tax Credit Transfer Documents, Net Cash Proceeds that constitute revenue replacements (including delay damages and business interruption)) and amounts required to be applied as a MandatoryPrepayment).
“ProjectSchedule”isdefinedinSection6.1(o)hereof.
“Projects” means the American Beech Project, the Bluebird Project and the Prairie Project, and each, a “Project”.
“Property” or “Properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.
“Proposed CITL” means on or after the Financial Closing Date and (1) prior to the execution of any Tax Documents, any (a) proposed Treasury Regulations or (b) proposed amendment, modification, addition or change to U.S. federalincome Tax lawthat is inthe form of (i) a bill passed or adopted by either house of the U.S. Congress, or (ii) a bill reported bythe House Ways and Means Committee or the Senate Finance Committee, in each case of the
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preceding clauses (a) – (b), (A) if it was issued as a final or temporary Treasury Regulation or became law would, in each case, be a CITL, and (B) such proposed Treasury Regulations or proposed legislation has a reasonable likelihood of being issued as a final or temporary Regulation or becoming law, as applicable (taking into account for this purpose any direct, written opposition or support issued, published, announced or otherwise publicly disseminated by Congress, the Executive Branch, the Internal Revenue Service, the U.S. Department of Treasury or any other relevant Governmental Authority), or (2) after the execution of any Tax Documents, “Proposed CITL”or “ProposedChangein Tax Law” (orsimilarterm) asdefined in such Tax Documents; provided, however, if, after the occurrence of clause (B), as a result of intervening events, the parties mutually agree that such Proposed CITL is no longer reasonably likelyto be issued or become law, such Proposed CITL shall cease to be a Proposed CITL.
“Proportionate Share” means, with respect to each Lender, the percentages set forth opposite such Lender’s name in the applicable part of Schedule1.1(a)corresponding to the applicable Loan Facility, as such Schedule may be amended from time to time and as such percentages maybemodified from time to time as a result oftransfers of LoanCommitments or Loans by a Lender.
“Prudent Industry Practices” means, with respect to any Person at any time, those practices, methods, equipment, specifications and standards of safety as are engaged in or approved by a significant portion of owners and operators of utility-scale solar photovoltaic generation facilities in the United States of a type and size similar tothe applicableProject(s) at such time as good, safe and prudent practices in connection with the construction, operation, maintenance, repair and use of electrical and other equipment, facilities and improvements of such utility-scale solar photovoltaic generation facility, with commensurate standards of safety, performance,dependability,efficiencyandeconomy.PrudentIndustryPracticesarenotintended to be limited to the optimum practices, methods or acts to the exclusion of all others, but ratherto be a spectrum of possible acceptable practices, methods or acts generally accepted in the United States utility-scale solar photovoltaic generation facility industry having due regard for, among other things, manufacturers’ warranties and the requirements of anyApplicable Law.
“PUHCA” means the Public Utility Holding Company Act of 2005 and FERC’s implementing regulations at 18C.F.R.Part366, as amended, modified, supplemented or replaced from time to time.
“QFC”isdefinedinSection12.36(b)hereof.
“QFCCreditSupport”isdefinedinSection12.36hereof.
“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such otherpersonasconstitutesan“eligiblecontractparticipant”undertheCommodityExchangeAct or any regulations promulgated thereunder and can cause another Person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
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“QuarterlyDate”meansthelastBusinessDayofeachcalendarquarter.
“Rating Agency” means anyof (a)S&P, Fitch, or Moody’s or(b) if at anytimenone of S&P,Fitch,orMoody’sshallberatingtheapplicableobligations,anyotherratingagencythat,at the time of its designation hereunder, is designated as a nationally recognized statistical rating organizationbytheU.S.SecuritiesandExchangeCommissionandhashaditsratingacceptedby the National Association of Insurance Commissioners in determining its equivalent rating designations for reporting and reservingpurposes and that is acceptable to theRequired Lenders (acting reasonably).
“RealProperty”meanstherealestateinterestsownedbyanyProjectCompanyinfeeor in which any Project Company holds a leasehold or sub-leasehold interest as a tenant, an easementorsub-easementrightasaneasementholder,arightofaccessoruseundera right-of-way, a license right as a licensee or otherwise occupies real property, in each case in respect of any Site.
“Real Property Documents”meansanyleases,subleases,easementsorsub-easements, license agreements, crossing agreements, mineral agreements, subordination agreements, letters of no objection or any other real property document pursuant to which the Project Companies have rights or obligations with respect to the Sites.
“Recipient”means,asapplicable,(a)theAdministrativeAgentand(b)anyLender.
“Regional Transmission Organization” means an “RTO” as such term is defined in Section 3(27) of the FPA, and FERC’s regulations at 18 C.F.R. § 35.34(b)(1).
“Register”isdefinedinSection12.19(d)hereof.
“ReimbursementObligation”isdefinedinSection2.4(c)(i)hereof.
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, brokers, trustees, administrators, managers, advisors and representatives, including accountants, auditors and legal counsel of such Person and of such Person’s Affiliates.
“Release” means, with respect to any Hazardous Materials, any release, spill, emission, leaking,pumping,injection,deposit,disposal,discharge,dispersal,leachingormigrationintothe indoor or outdoor environment, including the movement of Hazardous Materials throughambient air, soil, surface water, ground water, wetlands, land or subsurface strata.
“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York, or anysuccessor thereto.
“Replacement Obligor” means, with respect to anyPerson (other than anyLoan Party) party to an Operative Document (other than the Credit Documents), any other Person with relevant experience and/or creditworthiness, as applicable, reasonably satisfactory to the
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Required Lenders who, pursuant to any definitive agreement or definitive guaranty reasonably satisfactorytotheRequiredLenders,assumestheobligationsundersuchOperativeDocumenton terms and conditions no less favorable to the Borrower than those to which such Person being replaced is obligated pursuant to such Operative Document.
“Required Bridge Lenders” means, at any time, Lenders holding in the aggregate greaterthanfiftypercent(50%)ofthesumof(a)theAvailableBridgeLoanCommitmentsand (b)the aggregate unpaid and outstanding principal amount of the Bridge Loans.In determining the Required Bridge Lenders, for so long as not everyapplicable Lender is a Defaulting Lender, the Loans and Loan Commitments of any Defaulting Lender shall be disregarded at any time exceptthat(i)theLoanCommitmentofanyDefaultingLendermaynotbeincreasedorextended withouttheconsentofsuchLenderand(ii)anywaiver,amendmentormodificationrequiringthe consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adverselythan other affected Lenders shall require the consent of such Defaulting Lender; provided, that if there are two or more non-affiliated Lenders holding Bridge Loans or Bridge Loan Commitments, then the Required Bridge Lenders shall mean at least two (2) non-affiliated Lenders; provided, further that Loans and Commitments held by a Lender that is an Affiliate of the Borrower shall be disregarded in determining the Required Bridge Lenders.
“Required Construction Lenders” means, at any time, Lenders holding in the aggregate greater than fifty percent(50%) of the sum of (a)the Available Construction Loan Commitments, (b)the aggregate unpaid and outstanding principal amount of the Construction Loans, (c)the aggregate unpaid and outstanding principal amount of the LC Loans and (d)the Available LC Commitment then in effect.In determining the Required Construction Lenders, for so long as not every applicable Lender is a Defaulting Lender, the Loans and Loan Commitments of anyDefaulting Lendershall bedisregarded at anytimeexceptthat(i)theLoan Commitment of anyDefaulting Lender maynot beincreased or extended without the consent of suchLenderand(ii)anywaiver,amendmentormodificationrequiringtheconsentofallLenders oreachaffectedLenderthatbyitstermsaffectsanyDefaultingLendermoreadverselythanother affected Lenders shall require the consent of such Defaulting Lender; provided, that if there are two or more non-affiliated Lenders holding Construction Loans, Construction Loan Commitments, LC Loans or Available LC Commitments then the Required Construction Lenders shall mean at least two (2) non-affiliated Lenders; provided, further that Loans and Commitments held by a Lender that is an Affiliate of the Borrower shall be disregarded in determining the Required Construction Lenders.
“Required Lenders” means the Required Construction Lenders, the Required Bridge Lenders and the Required Upsize Bridge Lenders.
“Required Upsize Bridge Lenders” means, at any time, Lenders holding in the aggregate greater than fifty percent(50%) of the sum of (a)the Available Upsize Bridge Loan Commitments and (b)the aggregate unpaid and outstanding principal amount of the Upsize Bridge Loans.In determining the Required Upsize Bridge Lenders, for so long as not every applicable Lender is a Defaulting Lender, the Loans and Loan Commitments of any Defaulting Lender shall be disregarded at any time except that (i)the Loan Commitment of any Defaulting
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LendermaynotbeincreasedorextendedwithouttheconsentofsuchLenderand(ii)anywaiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects anyDefaulting Lender more adverselythan other affected Lendersshall require the consent of such Defaulting Lender; provided, that if there are two or more non-affiliated Lenders holding Upsize Bridge Loans or Upsize Bridge Loan Commitments, then the Required Upsize Bridge Lenders shall mean at least two (2) non-affiliated Lenders; provided, further that Loans and Commitments held by a Lender that is an Affiliate of the Borrower shall be disregarded in determining the Required Upsize Bridge Lenders.
“ResolutionAuthority”meansanEEAResolutionAuthorityor,withrespecttoany U.K.FinancialInstitution,aU.K.ResolutionAuthority.
“Restore” means to rebuild, repair, restore or replace all or anypartoftheProject.The term “Restoration” has a correlative meaning.
“Restricted Payment” means, with respect to any(a) Person, anyDistribution made by such Person, (b) any payment by such Person in respect of any Indebtedness that is owed to an Affiliate and (c) anypayment of management, development or similar fees to an Affiliate.
“RevenueAccount”hasthemeaningsetforthintheDepositaryAgreement.
“S&P”meansS&PGlobalRatings,adivisionofS&PGlobal,Inc.
“Same Day Funds” means with respect to disbursements and payments in Dollars, immediately available funds.
“Sanctioned Country” means a country, region or territory that is the subject of comprehensiveSanctionsbroadlyprohibitingdealingsin,withorinvolvingsuchcountry,region or territory(currently, Cuba, Iran, North Korea, Syria, the so-called Donetsk People’s Republic, the so-called Luhansk People’s Republic, and the Crimea region of Ukraine).
“Sanctioned Person” means any Person: (a) listed on any Sanctions-related list of designated Persons; (b) domiciled, organized or resident in, or that is any Governmental Authority of, any Sanctioned Country; (c) that is any governmental Authority of Venezuela; or (d) directly or indirectly owned (50% or more) or controlled by, or acting on behalf of, any Person described in the foregoing clause (a), (b), (c)or (d)otherwise the subject or target of Sanctions.
“Sanctions” means any and all economic and financial sanctions or trade embargoes imposed, administered or enforced by any Sanctions Authority.
“Sanctions Authority” means: (a)the United States (including OFAC and the U.S. DepartmentofState);(b)theUnitedNations;(c)theEuropeanUnionanditsmemberstates; (d) theUnitedKingdom(includingHisMajesty’sTreasury);and(e)Canada.
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“SC Funding Date” means, with respect to each Project, the “Final Funding PaymentDate”, “Substantial Completion Funding Date” or similar term as defined in the Tax Equity Documents or TC Structure Documents, as applicable, for such Project.
“SecuredParties”meanstheAgents,theConstructionLenders,theBridgeLenders,the Upsize Bridge Lenders, the LC Issuers, the LC Lenders and the Permitted Hedging Counterparties.
“Securities” or “Security” shall have the meaning specified in Section2(1) of the Securities Act.
“Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder from time to time in effect.
“Security Agreement” means that certain Guaranty, Pledge and Security Agreement, dated as of the Financial Closing Date, duly executed by the Devco Borrower, the Opco Borrower, the American Beech Project Company, the Bluebird Project Company, the Prairie Project Company, Prairie Holdings, Bluebird Solar Investments and the Collateral Agent, as amended, restated, modified, renewed, extended, refunded, refinanced, replaced, supplemented or otherwise modified from time to time.
“Security Documents” means, collectively, the Security Agreement, the Pledge Agreement, the Depositary Agreement, the American Beech Mortgage, the Bluebird Mortgage, thePrairieMortgage,theConsents,allUniformCommercialCodefinancingstatements,andany such other security agreement or instrument to be filed with respect to the Liens on personal property and fixtures of the grantor of the Liens created under such documents, and any other mortgages,deedsoftrust,securityagreements,pledgeagreementsoraccountcontrolagreements entered into after the Financial Closing Date and providing security interests in favor of the Secured Parties to secure the Borrower’s obligations under the Credit Documents.
“Sites”meanstheAmericanBeechSite,theBluebirdSiteandthePrairieSite,eacha “Site”.
“SOFR”meansarateequaltothesecuredovernightfinancingrateasadministeredby theSOFRAdministrator.
“SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).
“SOFR Borrowing” means, as to any Borrowing, the SOFR Loans comprising such Borrowing.
“SOFR Loan” means a Loan bearing interest at the rate per annum determined by reference to Compounded SOFR.
“Solvent” means, with respect tothe Borrower andtheirSubsidiaries, on a consolidated basis, that (a)the fair value of the assets of the Borrower and their Subsidiaries, on a
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consolidated basis, exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise; (b)the present fair saleable value of the property of the Borrower and theirSubsidiaries,on aconsolidatedbasis,isgreaterthantheamountthatwillberequiredtopay the probable liability, on a consolidated basis, of their debts and other liabilities, subordinated, contingent orotherwise, as suchdebts andotherliabilities become absolute andmatured;(c)the Borrower and their Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured; (d)the Borrower and their Subsidiaries, on a consolidated basis, are not engaged in, andarenotabouttoengagein,businessforwhichtheyhaveunreasonablysmallcapital;and the Borrower and their Subsidiaries are “solvent” within the meaning given that term and similar terms under the Bankruptcy Code and other applicable laws relating to fraudulent transfers and conveyances.For purposes of this definition, (i)“able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured (after giving effect to any Guarantee and credit support)” shall mean that the Borrower and their Subsidiaries, on a consolidated basis, will be able to generate enough cash from operations, asset dispositions or refinancings, or a combination thereof, to meet their obligations as theybecome due, and (ii)the amount of contingent liabilities at anytime shall be computedastheamountthat,inthelightofallthefactsandcircumstancesexistingatsuchtime, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standards No. 5).
“Sponsor”meansMN8EnergyLLC,aDelawarelimitedliabilitycompany.
“Sponsor Equity Contribution Agreement” means that certain Equity Contribution Agreement, dated as of the date hereof, among the Sponsor, the Administrative Agent and the Collateral Agent.
“State PUC” means (i) the Illinois Commerce Commission (ii) the Kentucky Public Service Commission, (iii) the Kentucky State Board on Electric Generation and Transmission Siting, or (iv) the North Carolina Utilities Commission, and their respective successors.
“SubjectPerson”isdefinedinSection9.1(k)(i)hereof.
“Subsidiary” means with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereofordinaryvotingpower to elect amajorityof theboard ofdirectors orotherpersons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of anyother class or classes of such corporation, partnership or other entityshall have ormight havevotingpower byreason of the happening of any contingency) is at the time directly or indirectly owned or Controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.
“Substantial Completion” means (a) with respect to the American Beech Project, the dateonwhichSubstantialCompletion(asdefinedintheAmericanBeechEPCContract)occurs,
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(b)withrespect to theBluebirdProject, thedateonwhichSubstantialCompletion(asdefined in the Bluebird EPC Contract) occurs and (c) with respect to the Prairie Project, the date on which Substantial Completion (as defined in the Prairie EPC Contract) occurs.
“SupportedQFC”isdefinedinSection12.36hereof.
“Swap Obligation” means, with respect to any guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.
“Tax” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings(includingbackupwithholding),assessments,feesorotherchargesimposedbyany Governmental Authority, including anyinterest, additions to tax or penalties applicable thereto.
“Tax Credit Buyer” means with respect to each Project, when subject to a Tax Credit Transfer Arrangement, the purchaser of the ITCs generated by such Project pursuant to the applicableTaxCreditTransferDocuments;providedthat,anysuchpurchaserisaPersonthat(a) (i) (A) has senior unsecured debt that has Investment Grade Rating; or (B) has its obligations undertheTax CreditTransferDocumentseither(1)guaranteed(suchguarantytobeinformand substance reasonablysatisfactoryto the Required Lenders) byan Affiliate with such Investment Grade Ratingor (2)backstopped by a letter of credit that is (X) in form and substance reasonably satisfactory to the Administrative Agent, (Y) non-recourse to the applicable Class B Member, applicable HoldCo or the applicable Project Company or any Collateral or Project GroupMember and (Z)issued byabankwhich isorganized orislicensedas abranch oragency under the laws of the United States of America or any state thereof that has a senior unsecured debtratingof“A-”orhigherbyS&Por“A3”orhigherbyMoody’sand(ii)isnotaDisqualified Person and is not, and is not an Affiliate of a Person that is, designated as a Sanctioned Person; or (b)is reasonablyacceptableto each Lender (with anyrequired consentofsuchLendersnotto be unreasonably withheld, conditioned or delayed).
“TaxCreditSaleAgreement”isdefinedinSection7.21(f)hereof.
“Tax CreditTransferAgreement(ClassA)”means,withrespecttoanyProject,tax credittransferpurchaseandsaleagreementprovidingforthesale,assignment,transferor other disposition solely of ITCs allocated to the Class A Member under a Tax EquityArrangement in respect of such Project.
“TaxCreditTransferArrangement”means,withrespecttoany Project,taxcredit transfer purchase and sale arrangement pursuant to Tax Credit Transfer Documents.
“Tax Credit Transfer Documents” is defined in Section 7.22(a)hereof.
“TaxCreditTransferEffectiveDate”isdefinedinSection7.22(a)hereof.
“Tax Documents” means, individually or collectively, as the context may require, theTax Equity Documents, TC Structure Documents and Tax Credit Transfer Documents.
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“TaxEquityArrangement”means,withrespecttoanyProject,ataxequity arrangement pursuant to Tax Equity Documents.
“Tax Equity Closing Date” means, with respect to anyProject, if it becomes subject to a Tax EquityArrangement, the date of the execution of the applicable HoldCo LLCA pursuantto the applicable Tax Equity ECCAand, if applicable, the applicable contribution agreement, assignmentagreementor,membershipinterestpurchaseagreement,developmentandpurchaseagreement or similar agreementin accordance with the terms of this Agreement.
“Tax Equity Documents” means, with respect to any Project subject to a Tax Equity Arrangement, collectively, the applicable Tax Equity ECCA, any guarantees entered into inconnection therewithand theotherapplicabledefinitiveagreementsexecuted ortobeexecuted bytherelevantTaxEquityInvestor(s)orProjectGroupMemberspursuanttosuchTaxEquity ECCA., including the HoldCo LLCA and, if applicable, the applicable contributionagreement,assignmentagreement,membershipinterestpurchaseagreement,developmentand purchase agreement or similar agreement (including, for theavoidance of doubt, withrespect to the Bluebird Project, the Bluebird Development and Purchase Agreement).
“TaxEquityEffectiveDate”isdefinedinSection7.24(a)hereof.
“Tax Equity ECCA” means, with respect to any Project subject to a Tax Equity Arrangement, an equity capital contribution agreement or similar tax equity commitment by a TaxEquityInvestor(whichmaybeincludedintheapplicableHoldCoLLCA),byandamong the applicable HoldCo, the applicable Class B Member and the relevant Tax EquityInvestor, in form and substance reasonably satisfactory to all Lenders.
“TaxEquityInvestor”meansathirdpartyequityinvestorthatisaPersonthat(a)(i) (A)has seniorunsecured debt that has InvestmentGradeRating; or(B)has itsobligationsunder the Tax Equity Documents guaranteed (such guaranty to be in form and substance reasonably satisfactoryto the Required Lenders)byan Affiliate withsuch Investment GradeRatingand (ii) isnotaDisqualifiedPersonandisnotanAffiliateofaPersonthatis,designatedasaSanctioned Person; (b) Affiliated FM Insurance Company a Rhode Island insurance company or (c) is reasonably acceptable to each Lender (with any required consent of such Lenders not to be unreasonably withheld, conditioned or delayed).
“TaxRelated Person”means aPerson(a)who isrelated(within themeaningofSection 45(e)(4) of the Code) to any Person purchasing electricity from a Project if such relationship would result in failure to satisfythe requirement that electricitybe sold to an “unrelated person” pursuant to Section 45(a)(2)(B) of the Code (but excluding any Person that so purchases electricity generated by such Project to the extent such Person resells the electricity to a third party that is not related to such Project within the meaning of Section 45(e)(4) of the Code), (b) who is related to anyPerson purchasingelectricityfrom aProject forpurposes of theapplication of Section 7701(e)(4) of the Code or the loss disallowance rules of Section 267(a) or Section 707(b)(1) of the Code, or (c) whose ownership would cause a Project, or anyportion thereof, to beclassifiedas“tax-exemptuseproperty”forpurposesofSection168oftheCode.Clause(a)of
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thisdefinitionisintendedtocomplywithSection4ofIRSNotice2008-60,I.R.B.2008-60(June 25, 2008), and shall be interpreted consistent with that provision.
“Tax Returns” means any return, declaration, report, claim for refund or information return or statement filed or required to be filed with any Governmental Authority relating to Taxes, including any amendment thereof or schedule thereto.
“TCECCA”isdefinedinSection7.21(a)hereof.
“TC Structure Deadline” is defined in Section 7.21(a)hereof.
“TCStructureDocuments”isdefinedinSection7.21(a)hereof.
“TCStructureEffectiveDate”isdefinedinSection7.21(a)hereof.
“Term SOFR” means, for anycalculation with respect to a Base Rate Loan on anyday, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the “Base Rate Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days priortosuchday,assuchrateispublishedbytheTermSOFRAdministrator;provided,however, that if as of 5:00 p.m. (New York City time) on any Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator, then Term SOFR will be theTerm SOFR ReferenceRatefor such tenoras published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Base Rate Term SOFR Determination Day.
“Term SOFR Administrator”meansCME GroupBenchmarkAdministration Limited(CBA) (or a successor administrator of the Term SOFR Reference Rate selected bythe Administrative Agent in its reasonable discretion).
“TermSOFRReferenceRate”meanstheforward-lookingtermratebasedonSOFR.
“Title Insurer” means, (a) with respect to the American Beech Title Policy, Chicago Title Insurance Company and (b) with respect to the Bluebird Title Policy and the Prairie Title Policy, Stewart Title Guaranty Company.
“Title Policies” means, the Bluebird Title Policy, the American Beech Title Policy and the Prairie Title Policy.
“TotalBridgeLoanCommitment”isdefinedinSection2.12(a)(ii)hereof.
“Total Construction Loan Commitment” is defined in Section 2.12(a)(i)hereof.
“Total Upsize Bridge Loan Commitment” is defined in Section 2.12(a)(iii)hereof.
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“TrackerSupplyAgreements”means,collectively,theAmericanBeechTracker SupplyAgreement,thePrairieTrackerSupplyAgreement,andthePrairieTrackerPilePurchase Order, and each, a “Tracker Supply Agreement”.
“Transfer” means any sale, assignment, transfer, conveyance, gift, exchange or other disposition, whether such disposition be voluntary, involuntary or by operation of Applicable Law, including a merger, consolidation or conversion of such entity.
“Transformer Purchase Agreements” means, collectively, the American Beech TransformerPurchaseAgreement,theBluebirdTransformerPurchaseAgreementandthePrairie Transformer Purchase Agreement, and each, a “Transformer Purchase Agreement”.
“Transmission Consultant” means, with respect to each Project, PowerGEM, LLC or its successor appointed pursuant to Section 11.10of this Agreement.
“Transmission Consultant’s Reports” means that certain report titled, “Congestion & BasisAnalysisSolarFacilitiesinPJMandMISO”,datedasofOctober16,2024,preparedbythe Transmission Consultant of each Project and delivered to the Administrative Agent in accordance with this Agreement.
“Type”, when used in reference to anyLoan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans constituting such Borrowing, is determined byreference to Compounded SOFR or the Alternate Base Rate.
“UCC” or “UniformCommercial Code” means the UniformCommercial Code as in effect in the State of New York (or, with respect to perfection or the effects of perfection, any other applicable jurisdiction).
“U.K. Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom PrudentialRegulationAuthority)oranypersonfallingwithinIFPRU11.6oftheFCAHandbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.
“U.K. Resolution Authority” means the Bank of England or any other public administrativeauthorityhavingresponsibilityfortheresolutionofanyU.K.FinancialInstitution.
“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.
“Upsize Bridge Lender” means any Lender with (a)an obligation to advance Upsize BridgeLoansin an aggregateprincipal amountnottoexceedsuchLender’sUpsizeBridgeLoan Commitment or (b) an outstanding Upsize Bridge Loan.
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“Upsize Bridge Loan Amount” means the Upsize Bridge Loan Amount (American Beech),theUpsizeBridgeLoanAmount(Bluebird)ortheUpsizeBridgeLoanAmount(Prairie), as applicable.
“Upsize Bridge Loan Amount (American Beech)” means the portion of the Upsize Bridge Loan Commitments allocable to the American Beech Project, which principal amount is equal to Seventy-Six Million, One Thousand, One Hundred Twelve Dollars ($76,001,112).
“Upsize Bridge Loan Amount (Bluebird)” means the portion of the Upsize Bridge LoanCommitmentsallocabletotheBluebirdProject,whichprincipalamountisequalto Forty-Six Million, One Hundred Fifty-Four Thousand, Three Hundred Ninety-Seven Dollars ($46,154,397).
“Upsize BridgeLoan Amount (Prairie)”meanstheportionofthe Upsize Bridge Loan Commitments allocable to the Prairie Project, which principal amount is equal to Fifty-Five Million, Ninety-Seven Thousand, One Hundred Eighteen Dollars ($55,097,118).
“Upsize Bridge Loan Availability Period” means the period from (and including) the Financial Closing Date through (and including) the Upsize Bridge Loan MaturityDate.
“Upsize Bridge Loan Commitment” means, at any time with respect to each Lender, such Lender’s Proportionate Share of the Total Upsize Bridge Loan Commitment at such time.
“UpsizeBridgeLoanCommitmentFees”isdefinedinSection3.1(a)(iii)hereof.
“UpsizeBridgeLoanFacility”isdefinedinSection2.3(a)hereof.
“UpsizeBridgeLoanMaturityDate”meanstheearliertooccurof(a)July1,2026and (b)thedateofanyaccelerationoftheUpsizeBridgeLoansfollowinganEventofDefault.
“UpsizeBridgeLoanNote”isdefinedinSection2.10(d)hereof.
“Upsize Bridge Loans” means, collectively, each bridge loan made pursuant to a request by the Borrower under Section2.3and each drawing on the Upsize Bridge Loan Commitments deemed made pursuant to Section 2.5(d).
“U.S.GovernmentSecuritiesBusinessDay”meansanydayexceptfor(a)aSaturday, (b)a Sunday or (c)a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.
“U.S.Person” meansa“UnitedStatesperson”as setforth inSection7701(a)(30)ofthe Code.
“U.S.SpecialResolutionRegimes”isdefinedinSection12.36hereof.
“U.S.TaxComplianceCertificate”isdefinedinSection12.5(b)(ii)(3)hereof.
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“Use”means,withrespecttoanyHazardousMaterialandwithrespecttoanyPerson,the generation, manufacture, processing, distribution, handling, use, treatment, recycling, storage, arrangement fordisposal ordisposalofsuchHazardousMaterialortransportationtoorfromthe assets or property of such Person of such Hazardous Material.
“Warehouse Agreements” means, collectively, the American Beech Warehouse Agreements and the Prairie Warehouse Agreement, and each, a “Warehouse Agreement”.
“Work Substantial Completion” means “Substantial Completion” as defined in each EPC Contract.
“Write-DownandConversionPowers”means,(a)withrespecttoanyEEAResolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time totimeundertheBail-InLegislationfortheapplicableEEAMemberCountry,whichwrite-down andconversionpowersaredescribedintheEUBail-InLegislationScheduleand(b)withrespect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any U.K. Financial Institution or anycontract or instrument under which that liabilityarises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it orto suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
Section 1.2. Interpretation.The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined.The words “hereof”, “herein”, and“hereunder”andwordsoflikeimportwhenusedinthisAgreementshallrefertothisAgreement asawholeandnottoanyparticularprovisionofthisAgreement. Thewords“include”, “includes”, and “including” shall be deemed to be followed by the phrase “without limitation”. AllreferencestotimeofdayhereinarereferencestoNewYork,NewYork,timeunless otherwise specifically provided.Where the character or amount of any asset or liabilityor item ofincomeorexpenseisrequiredtobedeterminedoranyconsolidationorotheraccounting computationisrequiredtobemadeforthepurposesofthisAgreement,itshallbedonein accordancewithGAAPexceptwheresuchprinciplesareinconsistentwiththespecific provisions of this Agreement.The words “renew” or “renewal” and variations thereof as used hereinwithrespecttoaLetterofCreditmeanstoextendthetermofsuchLetterofCreditorto reinstate an amount drawn under such Letter of Credit or both.Anyreference to anyagreement herein (a)shall include all exhibits, schedules and other attachments thereto and (b)shall mean, whether or not stated, such agreement as it may be amended, supplemented, restated, renewed, refunded, replaced or otherwise modified from time to time in accordance with the provisions thereof.
Section1.3. ChangeinGAAP.
(a)If, after the date of this Agreement, there shall occur any change in GAAP, including any change in the applicable GAAP elected by the Borrower in accordance with the definition thereof, from those used in the preparation of the financial statements required to be
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deliveredtotheAdministrativeAgentpursuanttoSection7.8hereofandsuchchangeshallresult in a change in the method of calculation of anystandard or term found in this Agreement, either the Borrower or the Required Lenders may by notice to the Administrative Agent and the Borrower, respectively, require that the Required Lenders and the Borrower negotiate in good faith to amend such covenants, standards, and terms so as equitably to reflect such change in GAAP, with the desired result being that the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be the same as if such change had not been made.No delay bytheBorrowerortheRequiredLendersinrequiringsuchnegotiationshalllimittheirrighttoso require such a negotiation at anytime after such a change in GAAP.
(b)Notwithstanding the foregoing, if the Borrower elects to change GAAP to IFRS with the consent of the Administrative Agent, the Borrower may elect, in its sole discretion, to continue to utilize GAAP for the purposes of making all calculations under this Agreement that are subject to GAAP and the request to the Administrative Agent required to change to IFRS shall set forth whether or not the Borrower intends to continue to use GAAP for purposes of making all calculations under this Agreement.In the event the Borrower elects to change to IFRS with the consent of the Administrative Agent for purposes of making calculations under thisAgreement,references inthisAgreementto astandardorruleunderGAAPshallbedeemed to refer to the most nearly comparable standard or rule under IFRS.
Section1.4. LetterofCreditAmounts.
(a)Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time (taking into account any reductions or increases of such stated amount implemented pursuant to the terms of such Letter of Credit).
(b)For purposes of computing the amount available to be drawn under anyLetter of Credit,theamountofsuchLetterofCreditshallbedeterminedinaccordancewiththis Section1.4.For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule3.14 of the International Standby Practices, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.
Section1.5.Divisions.For all purposes under the Credit Documents, in connection with any divisionorplanofdivisionunderDelawarelaw(oranycomparableeventunderadifferent jurisdiction’slaws),if(a)anyasset,right,obligationorliabilityofanyPersonbecomestheasset, right,obligationorliabilityofadifferentPerson,thenitshallbedeemedtohavebeentransferred from the original Person to the subsequent Person, and (b)if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its capital stock at such time.
Section 1.6. Project Sale; Permitted Tax Equity Arrangement.From and after the date of any Asset Disposition permitted pursuant to clause (k)of the definition of “Permitted Dispositions” and the prepayment contemplated thereunder, (a) the applicable transferred Subsidiaryshall cease to be a Subsidiaryand a Guarantor (if applicable), (b) the relevant Project
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shall be deemed not to be a Project, (c) the equityin and assets of such transferred Subsidiary and its Subsidiaries and other Investments shall be deemed not to be part of the Collateral (and anyLiensthereongrantedundertheSecurityDocumentsshallbeautomaticallyreleased),and(d) anybreaches, defaults or Events of Default under anyCredit Document that solelyrelate to such Subsidiaries or Project shall be deemed cured.
SECTION2.THECREDITFACILITIES.
Section 2.1. ConstructionLoanFacility.
(a)Availability.SubjecttothetermsandconditionssetforthinthisAgreement,each Lender severally agrees to advance to the Borrower from time to time during the Construction Loan AvailabilityPeriod such loans as theBorrowermayrequest underthis Section 2.1(a), inan aggregateprincipalamountnottoexceedsuchLender’sConstructionLoanCommitment (the“Construction Loan Facility”); provided that, after giving effect to the making of any Construction Loans, in no event shall the aggregate principal amount of all Construction Loans thenoutstandingexceedtheTotalConstructionLoanCommitment.BorrowingsofConstruction Loans shall be made not more frequently than twice per calendar month (which, for the avoidance of doubt, shall not include Borrowings of Construction Loans deemed made as contemplated by Section 2.5(d)).
(b)Notice of Borrowing.The Borrower shall request a Borrowing of Construction Loans (except Construction Loans deemed made as contemplated by Section2.5(d)) by delivering to the Administrative Agent written notice substantially in the form of Exhibit A-1, appropriatelycompletedanddulyexecutedbyanAuthorizedOfficeroftheBorrower(a“Notice of Construction Loan Borrowing”).The amount of such requested Borrowing shall be in a minimum amount of two hundred fifty thousand Dollars($250,000), except for the final Borrowing of Construction Loans (which may be in the amount of the then-Available Construction Loan Commitments), Construction Loans deemed made as contemplated by Section2.5(d)orasmayotherwisebeagreedtobyAdministrativeAgent.ForeachBorrowingof ConstructionLoanstheBorrowershallspecifywhethertheConstructionLoansaretobeusedfor the Bluebird Project, the American Beech Project or the Prairie Project. Each Borrowing of Construction Loans specified for the Bluebird Project (taken together with any outstanding Construction Loans with respect to the Bluebird Project)shall not exceed theConstruction Loan Amount (Bluebird), each Borrowing of Construction Loans specified for the American Beech Project (taken together with any outstanding Construction Loans with respect to the American BeechProject)shallnotexceedtheConstructionLoanAmount(AmericanBeech)andeach Borrowing of Construction Loans specified for the Prairie Project (taken together with any outstanding Construction Loans with respect to the Prairie Project) shall not exceed the Construction Loan Amount (Prairie). The Borrower shall deliver to Administrative Agent a Notice of Construction Loan Borrowing relating to each Borrowing of Construction Loans (except Construction Loans deemed made as contemplated by Section2.5(d)) (i)not later than 1:00 p.m., New York time, at least three (3)Business Days before the date of the requested BorrowingofaSOFRLoanor(ii)notlaterthan9:00a.m.,NewYorktime,atleastone (1)BusinessDaybeforethedateoftheBorrowingofaBaseRateLoan.IftheBorrowerchanges
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the date of a Borrowing from that which is set forth in such Notice of Construction Loan Borrowing, the Borrower shall reimburse the Lenders for anyamounts due to the Lendersunder Section2.11hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty).
(c)Construction Loan Principal Payments.The Borrower shall repay to the AdministrativeAgent,fortheaccountoftheapplicableLenders,infullontheConstructionLoan Maturity Date, the unpaid principal amount of (together with accrued and unpaid interest on) all Construction Loans made or deemed made by the Lenders, together with any remaining unpaid fees, costs and other amounts with respect thereto.
(d)Use of Construction Loan Proceeds.The Borrower shall use the proceeds of the Construction Loans solely in accordance with Section7.5.Any Available Construction Loan Commitment that remains on the Construction Loan Maturity Date after the Borrowing of Construction Loans on such date shall be automaticallyreduced to zero Dollars ($0).
Section2.2. BridgeLoanFacility.
(a)Availability.SubjecttothetermsandconditionssetforthinthisAgreement,each Lender severally agrees to advance to the Borrower from time to time during the Bridge Loan Availability Period such loans as the Borrower may request under this Section2.2(a), in an aggregateprincipal amount not to exceedsuch Lender’sBridge LoanCommitment(the“Bridge Loan Facility”); provided that, after giving effect to the making of any Bridge Loans, in no eventshall theaggregateprincipalamountofallBridgeLoansthenoutstandingexceedtheTotal Bridge LoanCommitment.Borrowings ofBridge Loansshall bemadenotmorefrequentlythan twice per calendar month (which, for the avoidance of doubt, shall not include Borrowings of BridgeLoansdeemedmadeascontemplatedbySection2.5(d)).Notwithstandinganythingtothe contrary herein, the Borrower shall not be permitted to borrow Bridge Loans unless the Construction Loan Commitments have been fully utilized or cancelled pursuant to this Agreement.
(b)Notice of Borrowing.The Borrower shall request a Borrowing of Bridge Loans (except Bridge Loans deemed made as contemplated by Section 2.5(d)) by delivering to the Administrative Agent written notice substantially in the form of Exhibit A-2, appropriately completed and duly executed by an Authorized Officer of the Borrower (a “Notice of Bridge LoanBorrowing”).TheamountofsuchrequestedBorrowingshallbeinaminimumamountof two hundred fifty thousand Dollars($250,000), except for the final Borrowing of Bridge Loans (which may be in the amount of the then-Available Bridge Loan Commitments), Bridge Loans deemedmadeascontemplatedbySection 2.5(d)orasmayotherwisebeagreedtoby Administrative Agent.For each Borrowingof Bridge Loansthe Borrowershallspecifywhether theBridgeLoansaretobeusedfortheBluebirdProject,theAmericanBeechProjectorthe PrairieProject.EachBorrowingofBridgeLoansspecifiedfortheBluebirdProject(taken togetherwithanyoutstandingBridgeLoanswithrespecttotheBluebirdProject)shallnot exceed the Bridge Loan Amount (Bluebird), each Borrowing of Bridge Loans specified for the American Beech Project (taken together with any outstanding Bridge Loans with respect to the American Beech Project) shall not exceedthe Bridge Loan Amount (American Beech) and each
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BorrowingofBridgeLoansspecifiedforthePrairieProject(takentogetherwithanyoutstanding BridgeLoanswithrespecttothePrairieProject)shallnotexceedtheBridgeLoanAmount (Prairie).TheBorrowershalldelivertotheAdministrativeAgentaNoticeofBridgeLoan Borrowingrelatingto each Bridge Loan (exceptBridgeLoansdeemedmadeascontemplatedby Section2.5(d))(i)notlaterthan1:00p.m.,NewYorktime,atleastthree(3)BusinessDays beforethedate of the requested Borrowingof aSOFR Loan or (ii)not laterthan9:00a.m.,New York time, at least one (1) Business Daybefore the date of the Borrowing of a Base Rate Loan. If the Borrower changes the date of a Borrowing from that which is set forth in such Notice of Bridge Loan Borrowing, the Borrower shall reimburse the Lenders for any amounts due to the LendersunderSection2.11hereof(includinganyassociatedHedgingTerminationValuesdueto the relevant Permitted Hedging Counterparty).
(c)BridgeLoanPrincipalPayments.TheBorrowershallrepaytotheAdministrative Agent, for the account of the applicable Lenders, in full on the Bridge Loan Maturity Date, the unpaid principal amount of (together with accrued and unpaid interest on) the Bridge Loans made or deemed made by the Lenders, together with all remaining unpaid fees, costs and other amounts with respect thereto.
(d)UseofBridgeLoanProceeds.TheBorrowershallusetheproceedsoftheBridge Loans solely in accordance with Section7.5.Any Available Bridge Loan Commitment that remains on the Bridge Loan Maturity Date after the Borrowing of Bridge Loans on such date shall be automatically reduced to zero Dollars ($0).
Section 2.3. UpsizeBridgeLoanFacility
(a)Availability. Subject to thetermsandconditions setforth inthisAgreement,each Lender severallyagrees to advance to the Borrower from time to time during the Upsize Bridge LoanAvailabilityPeriodsuchloansastheBorrowermayrequestunderthisSection2.3(a),inan aggregateprincipalamountnottoexceedsuchLender’sUpsizeBridgeLoanCommitment (the“Upsize Bridge Loan Facility”); provided that, after giving effect to the making of any Upsize Bridge Loans, in no event shall the aggregate principal amount of all Upsize Bridge Loans then outstanding exceed the Total Upsize Bridge Loan Commitment.Borrowings of Upsize Bridge Loans shall be made not more frequently than twice per calendar month (which, for the avoidance of doubt, shall not include Borrowings of Upsize Bridge Loans deemed made as contemplated by Section2.5(d)). Notwithstanding anything to the contrary herein, the Borrower shall not be permitted to borrow Upsize Bridge Loans unless the Construction Loan Commitments and the Bridge LoanCommitments havebeen fullyutilized or cancelledpursuant to this Agreement.
(b)Notice of Borrowing.The Borrower shall request a Borrowing of Upsize Bridge Loans (except Upsize Bridge Loans deemed made as contemplated by Section2.5(d)) by delivering to the Administrative Agent written notice substantially in the form of ExhibitA-3, appropriatelycompletedanddulyexecutedbyanAuthorizedOfficeroftheBorrower(a“Notice of Upsize Bridge Loan Borrowing”).The amount of such requested Borrowing shall be in a minimum amount of two hundred fifty thousand Dollars($250,000), except for the final Borrowing of Upsize Bridge Loans (which may be in the amount of the then-Available Upsize
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BridgeLoanCommitments),UpsizeBridgeLoansdeemedmadeascontemplatedbySection2.5(d)orasmayotherwisebeagreedtobyAdministrativeAgent.ForeachBorrowingof UpsizeBridge Loans theBorrowershallspecifywhethertheUpsizeBridge Loansaretobeused for the Bluebird Project, the American Beech Project or the Prairie Project. Each Borrowing of Upsize Bridge Loans specified for the Bluebird Project (taken together with any outstanding Upsize Bridge Loans with respect to the Bluebird Project) shall not exceed the Upsize Bridge Loan Amount (Bluebird), each Borrowing of Upsize Bridge Loans specified for the American Beech Project (taken together with any outstanding Upsize Bridge Loans with respect to the American Beech Project) shall not exceed the Upsize Bridge Loan Amount (American Beech) and each Borrowing of Bridge Loans specified for the Prairie Project (taken together with any outstanding Upsize Bridge Loans with respect to the Prairie Project) shall count towards the Upsize Bridge LoanAmount(Prairie).TheBorrowershalldeliverto theAdministrativeAgent a Notice of Upsize Bridge Loan Borrowing relating to each Upsize Bridge Loan (except Upsize Bridge Loansdeemed made as contemplated bySection2.5(d))(i)notlaterthan1:00p.m.,New York time, at least three (3)Business Days before the date of the requested Borrowing of a SOFR Loan or (ii) not later than 9:00 a.m., NewYork time, at least one(1)Business Daybefore thedateoftheBorrowingofaBaseRateLoan.IftheBorrowerchangesthedateofaBorrowing fromthatwhichissetforthinsuchNoticeofUpsizeBridgeLoanBorrowing,theBorrowershall reimburse the Lenders for any amounts due to the Lenders under Section2.11hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty).
(c)Upsize Bridge Loan Principal Payments.The Borrower shall repay to the Administrative Agent, for the account of the applicable Lenders, in full on the Upsize Bridge Loan Maturity Date, the unpaid principal amount of (together with accrued and unpaid interest on) the Upsize Bridge Loans made or deemed made bythe Lenders, together with all remaining unpaid fees, costs and other amounts with respect thereto.
(d)UseofUpsizeBridgeLoanProceeds.TheBorrowershallusetheproceedsofthe Upsize Bridge Loanssolelyin accordance with Section7.5.AnyAvailable Upsize Bridge Loan Commitment that remains on the Upsize Bridge Loan Maturity Date after the Borrowing of Upsize Bridge Loans on such date shall be automaticallyreduced to zero Dollars ($0).
Section 2.4. LetterofCreditFacility.
(a)LetterofCreditGeneralTerms.
(i)Subjecttothetermsandconditionshereof,fromtimetotimefromthe FinancialClosingDatethroughtheConstructionLoanMaturityDate(the“LC Availability Period”), and after submittal of an Application by the Borrower to the LC Issuer, such LC Issuer shall issue (or amend, renew or extend) a letter of credit (each, a “LetterofCredit”)intheamountequaltotheamountrequesteduptoanaggregate amountequaltofiftymillion,twohundredsixty-seventhousand,sevenhundred eighty-fiveDollars($50,267,785)(the“LCCommitment”),insuchformasthe Borrower, the LC Issuer and the beneficiary of the relevant Letter of Credit shall agree. TheaggregatestatedamountforallLettersofCreditoutstandingatany timewillnot
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result in (A)theaggregatestatedamountofall LettersofCreditissuedbyanyLC Issuer exceeding the total amount set forth in respect of such LC Issuer in Part B of Schedule 1.1(a)or(B)thesumof(1)theundrawnamountfortheoutstandingLettersofCredit,(2) theprincipalamountoftheoutstandingLCLoans,and(3)theamountofall Reimbursement Obligations outstanding in respect ofthe Letters ofCredit exceedingthe LC Commitment.
(ii)Unless otherwise agreed by the LC Issuer, each Letter of Credit issued as providedinthisSection2.4shallhaveanexpirationdate(orshallbecancellable)nolater than the earlier of (A)twelve(12) months after the date of issuance (provided that such expirationdateshallbesubjecttoautomaticextensionascontemplatedby Section 2.4(b)(iii)) and (B)the LC Loan Maturity Date.
(b)RequestingaLetterofCredit;Applications.
(i) TheBorrowershallprovideatleasttwo(2)BusinessDays’advance writtennotice,dulyexecutedbyanAuthorizedOfficeroftheBorrowerandintheformof Exhibit A-5(a “Notice of Issuance”), to the Administrative Agent and the LC Issuer of each request for the issuance of a Letter of Credit, and such Notice of Issuance shall be accompanied by an application to the LC Issuer (in such LC Issuer’s customary form of application for letters of credit, as provided to the Borrower from time to time) for such Letter of Credit properly completed and executed by the Borrower (each, an “Application”).Inthecaseofarequestforanextension(otherthananautomatic extension) or an amendment with respect to the stated amount of a Letter of Credit, the Borrowershallsubmittothe Administrative Agentandthe LC Issuer a duly executed NoticeofIssuancetotheAdministrativeAgentandsuchLCIssuer,ineachcase,together withanyapplicablefeesrequiredpursuanttothisAgreement. TheLCIssuershall promptlynotifytheAdministrativeAgentoftheissuanceofanyLetterofCreditso requested or an amendment with respect to the expiration or stated amount of a Letter of Credit.Each Notice of Issuance shall specify, among other things:
(1)thedateofissuance,amendment,renewalorextension(which shall be a Business Day);
(2)the date on which such Letter of Credit is to expire (which shallcomply with Section 2.4(a)(ii));
(3)thefaceamountofsuchLetterofCredit;
(4)thenameandaddressofthebeneficiarythereof;and
(5)such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit (including the form of a letter of credit, if any, required under the Project Documents).
(ii)Notwithstanding anything contained in any Notice of Issuance or Application to the contrary: (A)the Borrower shall pay fees in connection with each
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LetterofCreditassetforthinSection3.1;(B)exceptasotherwiseprovidedin Section2.8(b), unless an Event of Default exists, the LC Issuer will not call for the funding by the Borrower of any amount under a Letter of Credit before being presented with a drawing thereunder; (C)if a Letter of Credit is drawn, the terms of Section2.4(c)shall apply; and (D) the LC Issuer shall not be obligated to issue, amend or renew any Letter of Credit if any Lender (other than Lenders who are Affiliates of the LC Issuer) purchasing a Participating Interest in such Letter of Credit, at such time, is a Defaulting Lender hereunder, unless the LC Issuer has entered into satisfactory arrangements with the BorrowerorsuchotherLenderstoeliminatetheLC Issuer’sriskwithrespecttosuch Defaulting Lender, including by cash collateralizing each such Defaulting Lender’s Participating Interest.
(iii)If the LC Issuer issues anyLetter of Credit with an expiration date that is automaticallyextended,suchLetterofCreditshallautomaticallybeextendedunlesssuch LC Issuergivesnoticeofnon-renewalbeforesuch LetterofCreditisautomaticallysetto be extended in accordance with the terms of such Letter of Credit, which such notice shall onlybegivenwithout theconsent oftheBorrowerif(A)theexpirationdateofsuch Letter of Credit if so extended would be after the LC Loan Maturity Date, (B)the Commitments in respect of such Letter of Credit have been terminated, or (C)a Default or an Event of Default exists and is continuing.
(c)The Reimbursement Obligations.
(i)Upon receipt byan LC Issuer from the beneficiaryof anyLetter of Credit oranydraftforpaymentornoticeofdrawingundersuchLetterofCredit,suchLCIssuer shall promptly notify the Borrower and the Administrative Agent thereof.Subject to clause(ii)below, the Borrower shall reimburse the LC Issuer for all amounts drawn under a Letter of Credit that has been honored by such LC Issuer (a “Reimbursement Obligation”) by no later than 12:00 Noon (New York time) on the date that such LC Issuer honored the drawing; provided that the Borrower has been informed of such drawing at or before 11:30 a.m. (New York time) on the date when such drawing is honored and, if notice of such drawing is given to the Borrower after 11:30 a.m. (New York time) on thedate when suchdrawingishonored, such reimbursement shall bepaid by 12:00 Noon (New York time) on the following Business Day, in Same Day Funds at theAdministrativeAgent’sprincipalofficeinNewYork,NewYork,orsuchotheroffice as the Administrative Agent may designate in writing to the Borrower (and the Administrative Agent shall thereafter cause to be distributed to the applicable LC Issuer such amount(s) in like funds); provided, however, if such dayis not a Business Day, the date for such payment shall be extended to the next succeeding Business Day.
(ii)Upon the existence of any Reimbursement Obligation in respect of a Letter of Credit, unless the Administrative Agent is notified by the Borrower by 12:00 Noon(NewYorktime)onthedaythatsuchReimbursementObligationbecomesduethat it intends to repay such Reimbursement Obligation with funds not borrowed under this Agreement, so long as no Event of Default has occurred and is continuing, the Borrower
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shall be deemed to have requested an LC Loan, from the Lenders holding aParticipating Interest in such Letter of Credit in an amount equal to such Reimbursement Obligation, and the proceeds of such LC Loan shall be applied to satisfy such Reimbursement Obligation on behalf of the Borrower.Anysuch LC Loan initiallyshall bedeemed to be requested as, and shall be, a Base Rate Loan.Each such LC Loan extended or deemed extended shall reduce the Available LC Loan Commitment by the principal amount of such LC Loan; provided that, upon the repayment of any LC Loan resulting from draws on any Letter of Credit prior to the last day of the LC Availability Period, so long as no Event of Default has occurred and is continuing, the Available LC Loan Commitment shall be increased by an amount equal to such repaid amount.
(iii)If an LC Issuer is not timely reimbursed for the amount of any drawing under a Letter of Credit issued by it on the date such drawing is paid, such Reimbursement Obligation shall bear interest (which the Borrower hereby promises to payondemand)fromandafterthedatesuchdrawingispaidatarateperannumequalto thesumoftheApplicableMarginforBaseRateLoansplustheAlternateBaseRatefrom time to time in effect (computed on the basis of a year of three hundred sixty-five(365) or three hundred sixty-six(366) days, as the case maybe, and the actual number of days elapsed).
(d)Obligations Absolute.The Reimbursement Obligations and the obligation of the BorrowertorepayeachBorrowingofLCLoansshallbeabsolute,unconditionalandirrevocable, andshallbepaidstrictlyinaccordancewiththetermsofthisAgreementunderallcircumstances, including the following: (i)any lack of validity or enforceability of a Letter of Credit, this Agreement, or any other Credit Document; (ii) the existence of any claim, counterclaim, setoff, defense or other right that the Borrower may have at any time against any beneficiary or any transferee of a Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), such LC Issuer or any other Person, whether in connection with this Agreement,thetransactionscontemplatedherebyorbysuchLetterofCreditoranyagreementor instrument relating thereto, or any unrelated transaction; (iii)any draft, demand, certificate or other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect, or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit; (iv)any payment by such LC Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictlycomplywith theterms of aLetterofCredit,oranypaymentmadebysuchLCIssuerunderaLetterofCredittoanyPerson purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law; or (v)any other circumstance or happening whatsoever, whether ornotsimilartoanyoftheforegoing,includinganyothercircumstancethatmightotherwise constitute a defense available to, or a discharge of, the Borrower.The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, intheeventofanyclaimofnoncompliancewiththeBorrower’sinstructionsorotherirregularity, the Borrower will promptly notify such LC Issuer.
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(e)The Participating Interests; LC Loans.
(i)By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing or decreasing the stated amount thereof) bythe LC Issuer, and without anyfurtheractiononthepartofsuchLCIssuerortheLCLenders,suchLCIssuerhereby grants to each LC Lender, and each such LC Lender hereby acquires from such LC Issuer,anundividedparticipatinginterest,totheextentofitsProportionateShare,insuch Letter of Credit issued by, and each Reimbursement Obligation owed to, such LC Issuer inrespectthereof.EachsuchLCLendersoholdinganundividedparticipatinginterestas provided in the preceding sentence shall be a “Participating LC Lender” and such undivided participating interest shall be a “Participating Interest”.
(ii)If (A)the LC Issuer is required at anytime to return to the Borrower or to a trustee, receiver, liquidator, custodian or other Person, any portion of any payment of any Reimbursement Obligation or (B)the Borrower is deemed to request an LC Loan in accordance with clause(c)(ii)above equal to any Reimbursement Obligation, then, in each case, each Participating LC Lender shall fund to the Administrative Agent for the accountoftheLCIssueranamountequaltosuchParticipatingLCLender’sParticipating Interest in such Reimbursement Obligation, in the case of subclause(A)of this paragraph, in payment for such Participating LC Lender’s Participating Interest in such Reimbursement Obligation or, in the case of subclause(B)of this paragraph, as its advance of such Loan.Payment of each funding pursuant to the preceding sentence by the relevant Participating LC Lender to the Administrative Agent shall be due in Same DayFundsnotlaterthantheBusinessDay itreceivesacertificateintheformof ExhibitB-5hereto from the Administrative Agent (with a copyto the LC Issuer)tosuch effect, if such certificate is received before 1:00 p.m. (New York time), or not later than 1:00 p.m. (New York time) the following Business Day, if such certificate is received after such time, together in each case with interest on such amount accrued from the date the related payment was made by the LC Issuer to the date of such funding by such Participating LC Lender at a rate per annum equal to: (i)from the date the related payment was made bythe LC Issuer to the date two(2) Business Days after payment by suchParticipatingLC Lenderis duehereunder,theFederalFunds Rateforeachsuchday and(ii)fromthedatetwo(2)BusinessDaysafterthedatesuchpaymentisduefromsuch Participating LC Lender to the date such payment is made by such Participating LC Lender, the Base Rate in effect for each such day.Without limiting the obligations of each Participating LC Lender, the Administrative Agent shall provide such certificate promptly to each Participating LC Lender (with a copy to the LC Issuer) after the event giving rise thereto.Following the consummation of transactions contemplated by this Section 2.4(e), the LC Issuer shall have received each Lender’s Proportionate Share for each Participating LC Lender in the amount required for the applicable LC Loan.
(iii)Each such Participating LC Lender shall thereafter be entitled to receive its Proportionate Share of each payment received in respect of the relevant Reimbursement Obligation or LC Loan, as the case maybe, and of interest paid thereon. The several obligations of the Participating LC Lenders to the LC Issuer under this
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Section2.4shall be absolute, irrevocable, and unconditional under any and all circumstanceswhatsoeverandshallnotbesubjecttoanyset-off,counterclaimordefense to payment which any Participating LC Lender may have or have had against the Borrower, the LC Issuer, the Administrative Agent, any LC Lender or any other Person whatsoever.Without limiting the generality of the foregoing, such obligations shall not be affected byanyDefault or Event of Default or byanyreduction or termination of any Commitment of any LC Lender, and each payment by a Participating LC Lender under this Section2.4shall be made without any offset, abatement, withholding or reduction whatsoever.
(iv)The Participating LC Lenders shall, to the extent of their respective Participating Interests in Letters of Credit, indemnify the LC Issuer (to the extent not reimbursed by the Borrower) against any cost, expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or liability (except such as result from such LC Issuer’s gross negligence or willful misconduct) that such LC Issuer may sufferorincurinconnectionwithanysuchLettersofCreditissuedbyit.Theobligations of the Participating LC Lenders under this Section2.4shall survive termination of this Agreement and of all Applications, Letters of Credit, and all drafts and other documents presented in connection with drawings thereunder.
(f)No Obligation.No LC Issuer shall be under anyobligation to issue anyLetter of Credit if: (i)anyorder, judgment or decree of anyGovernmental Authorityor arbitrator shall by itstermspurporttoenjoinorrestrainsuchLCIssuerfromissuingtheLetterofCredit,oranylaw applicable to such LC Issuer or anyrequest ordirective (whether or not havingthe force of law) fromanyGovernmentalAuthoritywithjurisdictionoversuchLCIssuershallprohibit,orrequest that such LC Issuer refrainfrom, theissuanceofletters ofcreditgenerallyorthe LetterofCredit in particular or shall impose upon such LC Issuer with respect to the Letter of Credit any restriction, reserve or capital requirement (for which such LC Issuer is not otherwise compensated hereunder) not in effect on the Financial Closing Date, or shall impose upon such LC Issuer any unreimbursed loss, cost or expense which was not applicable on the Financial Closing Date and which such LC Issuer in good faith deems material to it; or(ii) theissuance of the Letter of Credit would violate one or morepolicies of such LC Issuer applicable to letters of credit generally(other than a policynot to issue letters of credit generally).
(g)LC Loan Principal Payments.
(i)LC Loans.The Borrowershall repaytothe Administrative Agent, forthe account of the LC Lenders, in full on the LC Loan Maturity Date, the unpaid principal amount of (together with accrued andunpaidintereston) each LC Loanmadeordeemed made by the LC Lenders, together with any unpaid fees, costs and other amounts with respect thereto.
Section 2.5. ApplicableInterestRates.
(a)Base Rate Loans.Each Base Rate Loan made or maintained by a Lender shall bear interest (computed on the basis of a year of three hundredsixty-five(365)orthreehundred
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sixty-six(366) days, as the case may be, and the actual days elapsed) on the unpaid principal amountthereoffromthedatesuchLoanisadvancedorcontinued,orcreatedbyconversionfrom aSOFR Loan, until maturity(whether byacceleration orotherwise) at a rateperannumequal to the sum of the Applicable Margin plus the Alternate Base Rate from time to time in effect, payable on each Payment Date following the date such Loan is advanced or created by conversion, at maturity(whether byacceleration orotherwise) and on thedatesuch Loan ispaid in full.
(b)SOFR Loans.Each SOFR Loan made or maintained by a Lender shall bear interest (computed, notwithstanding any provision to the contrary in this Agreement (including theuseoftheterm“perannum”),onthebasisofayearofthreehundredsixty(360)daysandthe actual number of days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced or continued, or created by conversion from a Base Rate Loan, until maturity (whetherbyaccelerationorotherwise)atarateperannumequaltothesumof(x)theApplicable Margin plus (y)CompoundedSOFR fromtimetotimein effect,payableoneachPaymentDate, at maturity(whether byacceleration or otherwise) and on the date such Loan is paid in full.
(c)Rate Determinations.The Administrative Agent shall determine each interest rateapplicabletotheLoansandtheReimbursementObligationshereunder,anditsdetermination thereof shall be prima facie evidence of such interest rate except in the case of manifest error.
(d)CapitalizedInterestandFees.Providedthat(i)noEventofDefaulthasoccurred and is continuing and (ii)there are then sufficient Available Construction Loan Commitments (solelyinthe caseof subsections(A), (D)and (G)hereof),BridgeLoanCommitments(solelyin the case of subsection(B), (E)and (H)hereof) or Upsize Bridge Loan Commitments (solely in the case of subsections (C), (F)and (I)hereof), (A)accrued interest due and payable on outstanding Construction Loans under Sections2.5(a)or 2.5(b), as applicable, during the Construction Loan Availability Period shall be automatically capitalized and deemed paid from theAvailableConstructionLoanCommitment,unlessotherwisenotifiedbytheBorrowerthree (3) Business Days prior to the applicable date, (B)accrued interest due and payable on outstanding Bridge Loans under Sections2.5(a)or 2.5(b), as applicable, during the Bridge Loan Availability Period shall be automatically capitalized and deemed paid from the Available Bridge Loan Commitment, unless otherwise notified by the Borrower three (3) Business Days prior to the applicable date, (C) accrued interest due and payable on outstanding Upsize Bridge Loansunder Sections2.5(a)or 2.5(b), as applicable,duringthe Upsize BridgeLoanAvailability Period but not paid in cash shall automatically be capitalized and deemed paid from the AvailableUpsizeBridgeLoanCommitment,unlessotherwisenotifiedbytheBorrowerthree(3) BusinessDayspriortotheapplicabledate,(D)oneachQuarterlyDateuntiltheexpirationofthe Construction Loan Availability Period, all Construction Loan Commitment Fees, then due and payableinrespectofoutstandingConstructionLoanspursuanttoSection3shallbedeemedpaid from the Available Construction Loan Commitment, (E)on each Quarterly Date until the expirationoftheBridgeLoanAvailabilityPeriodallBridgeLoanCommitmentFees,thendue and payable in respect of outstanding Bridge Loans pursuant to Section3shall be deemed paid fromtheAvailableBridgeLoanCommitmentand(F)oneachQuarterlyDateuntiltheexpiration of the Upsize Bridge Loan Availability Period, all Upsize Bridge Loan Commitment Fees, then
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due and payable in respect of outstanding Upsize Bridge Loans pursuant to Section 3shall be deemed paid from the Upsize Bridge Loan Commitment.Any such deemed usage of the Available Construction Loan Commitment, Available Bridge Loan Commitment or Upsize Bridge Loan Commitment shall be deemed a Construction Loan, a Bridge Loan or an Upsize Bridge Loan, as applicable, for any and all purposes hereunder and under the other Credit Documents as if borrowed pursuant to Section 2.1, Section 2.2or Section 2.3, as applicable.
Section2.6.Deemed Borrowings; LC Loans; Type.Each Borrowing requested or deemed requested bythe Borrower pursuant to Section2.4(c)(ii)shall beinthe amount ofthe applicable Reimbursement Obligation.LC Loans made in connection with draws on different Letters of Credit may be outstanding at the same time; provided that all Loans made in connection with draws on Letters of Credit shall be (or shall be promptly made to be) of the same Type.Each Borrowing of Construction Loans shall be for Construction Loans of the same Type.Each Borrowing of Bridge Loans shall be for Bridge Loans of the same Type. Each Borrowing of Upsize Bridge Loans shall be for Upsize Bridge Loans of the same Type.
Section2.7.Manner of Borrowing Loans, Designating Applicable Interest Rates and Construction Loan Funding.
(a)Notice to the Administrative Agent.At anytime after Loans are requested bythe BorrowerpursuanttoSection2.1(b),Section2.2(b)orSection2.3(b)ordeemedrequestedbythe Borrower pursuant to Section2.4(c)(ii), as applicable, and made by the Lenders pursuant to Section2.1(b), Section 2.2(b), Section2.3(b)or Section2.4(c)(ii), as applicable, subject to the terms and conditions hereof, the Borrower may from time to time elect to change or continue, with respect to all Loans, the Type of Loan or, all or a portion thereof, as follows: (i)if such Loan is a SOFR Loan, on each Payment Date, the Borrower may continue part or all of such Loan as a SOFR Loan or convert part or all of such Loan into a Base Rate Loan or (ii)if such Loan is a Base Rate Loan, on any Business Day, the Borrower may convert all or part of such Loaninto aSOFRLoan.TheBorrowershallgiveallsuchnoticesrequestingthecontinuationor conversion of a Borrowing to the Administrative Agent by e-mail, which notice shall be irrevocable once given (it being understood that the failure of the Borrower to actually borrow pursuant to Section2.1(b), Section2.2(b)or Section2.3(b), as applicable, on the specified date shall not result in a reduction of any Commitment but shall result in an obligation of the Borrower to make any required payments under Section2.11) and substantially in the form attached hereto as ExhibitA-4(each, a “Notice of Continuation/Conversion”), as applicable, or in such other form acceptable to the Administrative Agent.Notice of the continuation of a BorrowingofSOFR Loans oroftheconversionofpartorallofaBorrowingofBaseRateLoans into SOFR Loans must be given by no later than 11:00 a.m. (New York time) at least three(3) Business Days before the date of the requested continuation or conversion.All such notices concerning the continuation or conversion of a Borrowingshall specifythe date of the requested continuation or conversion of a Borrowing (which shall be a Business Day), the amount of the requested Borrowingto be continued or converted and the Typeof Loans tocomprisesuchnew, continuedorconvertedBorrowing.TheBorroweragreesthattheAdministrativeAgentmayrely onanysuche-mailnoticegivenbyanypersontheAdministrativeAgentingoodfaithbelievesis an Authorized Officer of the Borrower without the necessityof independent investigation.
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(b)Notice to the Lenders.The Administrative Agent shall give prompt electronic noticetoeachLenderorLCIssuer,asthecasemaybe,ofanynoticefromtheBorrowerreceived pursuant to Section2.7(a)above and, if such notice requests the Lenders of the applicableClass to make SOFR Loans, the Administrative Agent shall give notice to the Borrower and each LenderoftheapplicableClassbylikemeansoftheinterestrateapplicabletheretopromptlyafter the Administrative Agent has made such determination.
(c)Borrower’s Failure to Notify; Automatic Continuations and Conversions.Any outstanding Borrowing of a Base Rate Loan shall automatically be continued as a Base Rate Loan unless (x)the Borrower has notified the Administrative Agent within the period required by Section2.7(a)that the Borrower intends to convert such Borrowing into a Borrowing of SOFR Loans or (y)such Borrowing is prepaid in accordance with Section2.8(b).With respect toanyoutstandingBorrowingofSOFRLoans,if(x)theBorrowerfailstogivenoticepursuantto Section 2.7(a)above of the continuation or conversion of any outstanding principal amount of a Borrowing of SOFR Loans before a Payment Date within the period required by Section2.7(a)theBorrowershallbedeemedtohaveelectedtocontinuesuchSOFRLoansasSOFRLoans, or (y)there exists and is continuing an Event of Default and such Borrowing is not prepaid in accordance with Section2.8(b), such Borrowing shall automatically be converted into a Borrowing of Base Rate Loans on the next Payment Date.
(d)[Reserved]
(e)Construction, Upsize Bridge Loan and Bridge Loan Funding.Provided that the applicable conditions precedent listed in Section6have been satisfied or waived, each Lender shall, before 1:00 p.m., New York time, on the date of each Borrowing of a Construction Loan, Upsize Bridge Loan and/or Bridge Loan (except anyConstruction Loan, Upsize Bridge Loan or Bridge Loan deemed made as contemplated by Section2.5(d)or made in connection with the Financial Closing Date and the Closing Date Distribution Payment), make available in immediately available funds, such Lender’s Proportionate Share of such Borrowing and shall deposit such funds into the Construction Account.The failure of any Lender to make the Construction Loan, Upsize Bridge Loan and/or Bridge Loan to be made by it as part of such BorrowingshallnotrelieveanyotherLenderofitsobligationhereundertomakeitsConstruction Loan, Upsize Bridge Loan and/or Bridge Loan on the date of such Borrowing.No Lender shall be responsible for the failure of anyother Lender to make the Construction Loan, UpsizeBridge Loan and/or Bridge Loan to be made bysuch other Lender on the date of such Borrowing.
Section 2.8. Prepayments.
(a)OptionalPrepayments.SubjecttoSection2.8(c),theBorrowermayprepay(such prepayment, an “Optional Prepayment”) (A)Construction Loans, Upsize Bridge Loans and Bridge Loans in whole and/or in part, without penalty or premium (except for anyamounts due to the Lenders under Sections2.11and 10.3hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty)), such Optional Prepayment to be in a minimum aggregate amount of five hundred thousand Dollars($500,000) or an integral multiple of one hundred thousand Dollars ($100,000) in excess thereof (unless all such Loans, together with all interest, fees and other amounts then due, arebeingprepaid in full)
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and (B)LC Loans, in whole and/or in part, without penaltyor premium (except for anyamounts due to the Lenders under Sections 2.11and 10.3hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty)), such prepayment to be in a minimum aggregate amount of two hundred fifty thousand Dollars($250,000) or an integral multiple of one hundred thousand Dollars($100,000) in excess thereof (unless all such Loans,togetherwithallinterest,feesandotheramountsthendue,arebeingprepaidinfull).The Borrower shall give the Administrative Agent and each Lender written notice of each proposed Optional Prepayment not less than two(2) Business Days in the case of the prepayment of any Construction Loan, UpsizeBridge Loans andBridge Loans orfive (5)Business Days in thecase of the prepayment of anyportion of LC Loans (or, in each case, such shorter period as agreed to by Administrative Agent).Each such notice shall specify (A)the Loans to be prepaid by the Borrower, (B)the date proposed for such Optional Prepayment, (C)the aggregate principal amount to be prepaid on such date, and (D)the interest to be paid on the prepayment date with respect to such principal amount being prepaid as if the date of such notice were the date of the prepayment due in connection with such Optional Prepayment, and setting forth the details of such computation.Each such noticemayalso specifywhether such prepayment is contingent on the closing of a sale of assets by the Borrower or any other Person or the refinancing of any IndebtednessbytheBorroweroranyotherPerson.Withinone(1)BusinessDaysafteritsreceipt of such notice of Optional Prepayment, the Administrative Agent shall deliver to the Borrower and each applicable Lender a certificate of Administrative Agent setting forth the estimated amounts due, if any, to the Lenders under Sections2.11and 10.3hereof (including any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty).
(b)MandatoryPrepayments.
(i)Mandatory Prepayment Events.The Borrower shall make the following prepayments of the Loans (such prepayment, a “Mandatory Prepayment”) on the Prepayment Date (as defined in paragraph 2.8(b)(ii)below):
(1)SubjecttoSection7.16,uponreceiptbyanyBorrower,anyClassB Member and, prior to the Back-Leverage Date for any Project, the applicable HoldCo or any Subsidiary of such HoldCo, of any Net Cash Proceeds with respect to any Casualty Event or Event of Eminent Domain affecting a Project, an amount equal to (A) 100% of the Net Cash Proceeds with respect to such Casualty Event or Event of Eminent Domain less (B) any portion of the Net Cash Proceeds with respect to such Casualty Event or Event of Eminent Domain applied or committed to the Restoration of such Project (to the extent permitted by Section 7.16), shall be applied as a mandatory prepayment in accordance with the order of priority set forth in Section 2.8(c); provided that nothing in this Section 2.8(b)(i)(1)shall be deemed to limit or otherwise affect anyobligation of the Project Group Members to deposit (or cause to be deposited) in the Loss Proceeds AccounttheLossProceedsinrespectofanyCasualtyEventorEventofEminentDomain in accordance with Section 7.16;
(2)upon receipt by any Borrower, any Class B Member and, prior to theBack-LeverageDateforanyProject,theapplicableHoldCooranySubsidiaryofsuch
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HoldCo, of Indebtedness Proceeds ordividendsin respectof anyIndebtednessProceeds, in an aggregate amount equal to such Indebtedness Proceeds or such dividends, as applicable, in accordance with the order of priorityset forth in Section 2.8(c);
(3)upon receipt by any Borrower, any Class B Member and, prior to theBack-LeverageDateforanyProject,theapplicableHoldCooranySubsidiaryofsuch HoldCo,ofanyAssetDispositionProceedsfromanAssetDispositionpermittedpursuant to clause(e)of the definition of “Permitted Dispositions” equal to or in excess of one million Dollars($1,000,000) in any calendar year, in an aggregate amount equal to such Asset Disposition Proceeds, in accordance with the priority set forth in Section 2.8(c); provided, however, that, so long as no Default or Event of Default shall have occurred and be continuing and with the consent of the Lenders, the Borrower may, prior to the date of the required prepayment, deliver to the Administrative Agent a certificate of an Authorized Officer of the Borrower to the effect that the Borrower intends to invest (or commit to invest) such Asset Disposition Proceeds received by the Borrower (or aportion thereof specified in such certificate) within ninety(90) days following receipt thereof in assets useful in the business of the Borrower that constitute Collateral, and certifying that no Default or Event of Default has occurred and is then continuing, in which case the Borrower may so reinvest (or commit to reinvest) such Asset Disposition Proceeds within such period; provided, further, that anysuch Asset Disposition Proceeds receivedbyanyBorrower,anyClassBMemberand,priortotheBack-LeverageDatefor any Project, the applicable HoldCo or any Subsidiary of such HoldCo, that are not so reinvested(orcommittedtobereinvested)bytheendofsuchperiod(orthatareinexcess of the amount that is certified to be reinvested pursuant to this Section2.8(b)(i)(3)) may not be so reinvested and shall be applied as a prepayment of Loans in accordance with Section 2.8(c);
(4)upon receipt by any Borrower, any Class B Member and, prior to theBack-LeverageDateforanyProject,theapplicableHoldCooranySubsidiaryofsuch HoldCo, of anyProject Document Proceeds or dividends received byanyBorrower, any Class B Member and, prior to the Back-Leverage Date for any Project, the applicable HoldCo or any Subsidiaryof such HoldCo, in respect of Project Document Proceeds (in each case, to the extent the terminated Project Document is not restored in form and substance reasonably acceptable to the Required Lenders, or replaced by a replacement Project Documentin form andsubstancereasonablysatisfactorytotheRequiredLenders with a Replacement Obligor), in an aggregate amount equal to such Project Document Proceeds or such dividends, as applicable, in accordance with the order of priority set forth in Section 2.8(c);
(5)upon theoccurrence of the SC Funding Dateunder theTax Equity Documents for any Project or upon receipt of payment pursuant to the Tax Credit Transfer Documents for Project, in an amount equal to the aggregate outstanding principal of Bridge Loans and Upsize Bridge Loans borrowed with respect to such Project plus accrued interest as of such prepayment date with respect to such principal amount beingprepaid, and anyamounts due to the Lenders under Sections 2.11and 10.3
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hereof(includinganyassociatedHedgingTerminationValuesduetotherelevant Permitted Hedging Counterparty) incurred byBorrower followingapplication of Section2.8(c).
(6)[Reserved]
(7)from and after the execution of the Depositary Agreement, as expressly set forth in the Depositary Agreement.
(8)inthecaseofanAssetDispositionpermittedpursuanttoclause(k)of the definition of “Permitted Dispositions”, in an amount equal to the aggregate outstanding principal of Loans borrowed with respect to the applicable Project plus accrued interest as of such prepayment date with respect to such principal amount being prepaid, in accordance with the order of priority set forth in Section 2.8(c).
(ii)Each Mandatory Prepayment pursuant to (x)Sections 2.8(b)(i)(1), 2.8(b)(i)(4),2.8(b)(i)(5)or 2.8(b)(i)(6)shall be made within five(5) Business Days as required thereby, (y)Sections2.8(b)(i)(2)or 2.8(b)(i)(7)shall be made within one(1) Business Day as required thereby and (z) Sections 2.8(b)(i)(3)or 2.8(b)(i)(8)shall be madesubstantiallyconcurrentlywith the applicabledisposition (suchdate, asapplicable, a “Prepayment Date”).
(iii)In the event of any prepayment pursuant to clause (i)(5)above, the Commitments under the Bridge Loan Facility and the Upsize Bridge Loan Facility shall bereducedbytheapplicableBridgeLoanAmountandUpsizeBridgeLoanAmountwith respect to such Project.
(iv)In the event of any prepayment pursuant to clause (i)(8)above, (a) the Borrower shall return to the LC Issuer for cancellation each Letter of Credit previously issued in respect of the applicable Project and (b) the Commitments under each Loan Facility shall be reduced by the applicable Construction Loan Amount, Bridge Loan Amount and Upsize Bridge Loan Amount with respect to such Project.
(c)Procedures for Prepayments.The proceeds of each Mandatory Prepayment and each Optional Prepayment shall be applied as follows:
(i)first,totheAdministrativeAgentfortheaccountoftheapplicableLenders on a pro rata basis (based on their Proportionate Shares of the applicable Loan Facility), any accrued but unpaid interest and fees in respect of the applicable Loans being repaid and any associated Hedging Termination Values due to the relevant Permitted Hedging Counterparty;
(ii)second, if such prepayment is on a day other than the last day of an Interest Period, to each applicable Lender on a pro rata basis any amounts due to the Lenders under Section 2.11and Section 10.3hereof.
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(iii)third, to the Administrative Agent for the account of the applicable Lendersonaproratabasis(basedontheirProportionateSharesoftheLoanFacility),the outstanding principal in respect of the applicable Loans until such amounts have beenrepaid in full;
(iv)fourth, cash collateralize, or provide another form of creditsupportthat is reasonably acceptable to the Required Lenders, the outstanding Letters of Credit then outstanding in accordance with the procedures set forth in Section 9.2(h); and
(v)fifth, to the prepayment of any other Obligations under the Credit Documents;
providedthat,MandatoryPrepaymentsmadeinaccordancewithSection2.8(b)(i)(5)shallprepay only Bridge Loans and Upsize Bridge Loans.
(d)No Reborrowings.The Borrower may not reborrow the principal amount of any Construction Loan, Bridge Loan or Upsize Bridge Loan that is prepaid or repaid and may only reborrow LC Loans to the extent of any Available LC Loan Commitment.
(e)Prepayment orReduction ofPermittedHedgingAgreements.Totheextentthata prepayment (whetheranOptionalPrepaymentoraMandatoryPrepayment)ofanyportionofthe LoansunderthisAgreementcausestheaggregatenotionalamountofalloutstandingtransactions under all Permitted Hedging Agreements to exceed 105% of the then outstanding aggregate principal amount of the Loans, the Borrower shall, concurrently with any such prepayment or such other reduction, as applicable, partially terminate on a pro rata basis across all Permitted Hedging Counterparties a portion of the outstanding transactions under such Permitted Hedging Agreements to the extent necessary so that the aggregate notional amount of all outstanding transactionsunderPermittedHedgingAgreementsaftergivingeffecttosuchpartialterminations is not less than 75% or more than 105% of the aggregate principal amount of the Loans then outstanding.
(f)Notwithstanding any of the foregoing, it is expressly understood and agreed that nothing contained in Section2.8shall in any manner or way constitute or be deemed to be a release of the obligations secured by, or impair the enforceability of, the Liens and security interests and possessory rights created by or arising from the Credit Documents or restrict the remedies available to anyLenderto realizeupontheCollateral or alter,modifyor releasein any manner any of the obligations of the Borrower under this Agreement or the other Credit Documents.
Section2.9.Default Rate.Notwithstanding anything to the contrarycontained herein, if any Event of Default has occurred and is continuing (including after acceleration)(i) the Borrower shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on anyoverdueamountsfrom thedateofsuchEvent ofDefaultuntilsuchEvent ofDefault is no longer continuing at a rate per annum (the“Default Rate”) that is the sum of the interest rate from time to time in effect for any such Loan (including the Applicable Margin or in the case of other Obligations, the Base Rate), plus 2.0% and (ii) upon prior written notice by the
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Required Lenders, the Borrower shall pay all interest (after as well as before entry of judgment thereon to the extent permitted by law) on all outstanding Obligations (whether or not overdue) fromthedateofsuchnoticeuntilsuchEventofDefaultisnolongercontinuingataperannum rate equal to the Default Rate.Interest accruing at the Default Rate shall be paid as required pursuant to this Agreement or upon demand of the Administrative Agent.
Section 2.10. Evidence of Indebtedness.
(a)Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made bysuch Lender from time to time, including the amountsofprincipal andinterestpayable and paid to such Lender from time to time hereunder.
(b)TheAdministrativeAgentshallalsomaintainaccountsinwhichitwillrecord (i)theamountofeachLoanmadehereunderandthetypethereof,(ii)theamountofanyprincipal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of anysum received bythe AdministrativeAgent hereunder from the Borrower and each Lender’s share thereof.
(c)Theentriesmaintained intheaccountsmaintainedpursuanttoparagraphs(a)and (b)above shall be prima facie evidence of the existence and amounts of the Obligations therein recorded; provided, however, that the failure of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Obligations in accordance with their terms.In the event of any conflict between theRegisterand theaccountsmaintained bytheAdministrativeAgentand theaccounts maintained by any Lender in paragraphs (a) and (b) above, the Register shall control in the absence of manifest error.
(d)AnyLendermayrequestthatitsLoansbeevidencedbyapromissorynoteor notesinsubstantiallytheformsofExhibitC-1(referredtohereinasa“ConstructionLoan Note”),ExhibitC-2(referredtohereinasa“BridgeLoanNote”),ExhibitC-3(referredto hereinasa“UpsizeBridgeLoanNote”)orExhibitC-4(referredtohereinasan“LCNote”),as applicable.Insuchevent,theBorrowershallprepare,executeanddelivertosuchLendera ConstructionLoanNote,BridgeLoanNote,UpsizeBridgeLoanNoteorLCNote,asapplicable, payabletosuchLenderorregisteredassignsintheamountoftherelevantCommitment. Thereafter, the Loans evidenced by such Construction Loan Note or Construction Loan Notes, BridgeLoanNoteorBridgeLoanNotes,UpsizeBridgeLoanNoteorUpsizeBridgeLoanNotes orLCNoteorLCNotes,asapplicable,andinterestthereonshallatalltimes(includingafterany assignment pursuant to Section12.19) be represented by one or more Construction Loan Notes, Bridge Loan Notes, Upsize Bridge Loan Notes or LC Notes, as applicable, payable to the payee namedthereinorregisteredassigns,excepttotheextentthatanysuchLenderorassignee subsequentlyreturnsanysuchConstructionLoanNote,BridgeLoanNoteorLCNote,as applicable,forcancellationandrequeststhatsuchLoansonceagainbeevidencedasdescribedin subsections (a)and (b)above.
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Section2.11.Funding Indemnity.If any Lender shall incur any loss, cost or expense (including any loss, cost or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or maintain any SOFR Loan or the relending or reinvesting of such deposits or amounts paid or prepaid to such Lender) as a result of:
(a)anypayment, prepayment or conversionof aSOFR Loanon adateotherthanthe last day of its Interest Period;
(b)anyfailure (because of a failure to meet the conditions of Section6orotherwise) by the Borrower to borrow or continue a SOFR Loan, or to convert a Base Rate Loan into a SOFR Loan, on the date specified in a notice given pursuant to Section2.7(a)hereof (including as a result of the revocation of any conditional notice of prepayment);
(c)anyfailurebytheBorrowertomakeanypaymentofprincipalonanySOFRLoan when due (whether by acceleration or otherwise); or
(d)any acceleration of the maturity of a SOFR Loan as a result of the occurrence of any Event of Default hereunder,
then, upon the demand of such Lender, the Borrower shall pay to such Lender such amount as will reimbursesuch Lenderforsuchloss,costorexpense.IfanyLendermakessuch aclaimfor compensation, it shall provide to the Borrower, with a copy to the Administrative Agent, a certificate setting forth the amount of such loss, cost or expense in reasonable detail and the amounts shown on such certificate shall be prima facie evidence as to the amount thereof if reasonably determined.
Section2.12.TotalCommitments.
(a)Commitment Amounts.
(i)Construction Loan Commitment.The aggregate principal amount of all Construction Loans made by the Lenders outstanding at any time shall not exceed two hundred eleven million, fifty-five thousand, seven hundred sixty-six Dollars ($211,055,766) (subject to voluntary reduction pursuant to the terms of this Agreement) (such amount, as so reduced from time to time, the “Total Construction Loan Commitment”).
(ii)Bridge Loan Commitment.The aggregate principal amount of all Bridge Loans made by the Lenders outstanding as of the Financial Closing Date shall notexceedone hundred seventy-three million, three hundred thirty-eight thousand, one hundredtwoDollars($173,338,102)(subjecttovoluntaryreductionpursuanttotheterms of this Agreement) (such amount, as so reduced from time to time, the “Total Bridge Loan Commitment”).
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(iii)Upsize Bridge Loan Commitment. The aggregate principal amount of all Upsize Bridge Loans made by the Lenders outstanding at any time shall not exceed one hundredseventy-sevenmillion,twohundredfifty-twothousand,sixhundred twenty-seven Dollars ($177,252,627) (subject to voluntary reduction pursuant to the terms of this Agreement) (such amount, as so reduced from time to time, the “Total Upsize Bridge Loan Commitment”).
(b)ReductionsandCancellationsofCommitments.
(i)TheAvailableConstructionLoanCommitmentshallbeautomaticallyand permanently reduced by the principal amount of each Construction Loan borrowed hereunder.
(ii)The Available Bridge Loan Commitment shall be automatically and permanently reduced by the principal amount of each Bridge Loan borrowed hereunder.
(iii)The Available Upsize Bridge Loan Commitment shall be automatically and permanentlyreduced bythe principal amount of each Upsize Bridge Loan borrowed hereunder.
(iv)The Borrower may, from time to time, upon two(2) Business Days’ written notice to the Administrative Agent (accompanied by a certification confirming the mattersset forthin Section2.12(b)(iii)(iv)(1)and (2)below),permanentlyreduce,by the amount of two hundred fifty thousand Dollars($250,000) or an integral multiple of one hundred thousand Dollars($100,000) in excess thereof or such other amount agreed to by the Administrative Agent, or cancel in its entirety, a Total Construction Loan Commitment, Total Upsize Bridge Loan Commitment or Total Bridge Loan Commitment; provided, however, that:
(1)The Borrower may not reduce or cancel all or any portion of a Total Construction Loan Commitment, Total Upsize Bridge Loan Commitment or Total Bridge Loan Commitment if, after giving effect to such reduction or cancellation, (x) the aggregate principal amount of all Loans then outstanding would exceed the Total ConstructionLoanCommitment,TotalUpsizeBridgeLoanCommitmentorTotalBridge Loan Commitment under which such Loans were made, or (y) such reduction or cancellation would, in the reasonable judgment of the Required Lenders, be expected to result in a breach of a Credit Document, a Tax Equity Document, a TC Structure Document, a Tax Credit Transfer Document or a Project Document; and
(2)The Borrower may not reduce or cancel all or any portion of the Total Construction Loan Commitment, Total Bridge Loan Commitment or Total Upsize Bridge Loan Commitment if, after giving effect to such reduction or cancellation, the Available Construction Funds would not, in the Required Lenders’ reasonable judgment in consultation with the Independent Engineer, be sufficient to achieve Completion of each Project on or before each Project’s respective Project Completion Date.
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(v)The Borrower shall payto the Administrative Agent all Commitment Fees then due in respect of any Total Construction Loan Commitment, Total Upsize Bridge LoanCommitmentorTotalBridgeLoanCommitmentuponanyreductionorcancellation of such Total Construction Loan Commitment, Total Upsize Bridge Loan Commitmentor Total Bridge Loan Commitment.From the effective date of any such reduction of a Total Construction Loan Commitment, Total Upsize Bridge Loan Commitment or Total Bridge Loan Commitment, the Commitment Fees with respect to the applicable Loan Commitment shall be computed on the basis of such Total Construction Loan Commitment,TotalUpsizeBridgeLoanCommitmentorTotalBridgeLoanCommitment as so reduced.Once reduced or canceled pursuant to Section2.12(b)(iv), a Total ConstructionLoanCommitment,TotalUpsizeBridgeLoanCommitmentorTotalBridge Loan Commitment may not be increased or reinstated.Any reductions pursuant to Section2.12(b)(iv)shall be applied ratably to each Lender’s respective Loan Commitments in accordance with Section 4.2.
(c)LetterofCreditCommitment, CommitmentTerminationand Reductions.
(i)Subject to the terms and conditions hereof, the LC Issuer agrees to issue Letters of Credit on behalf of the Borrower in accordance with Section 2.4(a)and each LCLenderseverallyagreestomakeLCLoanstotheBorrowerinrespectoftheLettersof Credit in accordance with Section 2.4(c).
(ii)Termination. Unless previously terminated, any unutilized LC Commitments shall terminate on the last date of the LC Availability Period.
(iii)LC Commitments.The Borrower may, at any time or from time to time, upon written notice to the Administrative Agent (accompanied by a certification confirming the matters set forth in the following provisos in this Section2.12(c)(iii)), without premium or penalty, terminate in whole, or reduce in part, the LC Commitment; provided,however,that(x)noterminationoftheLCCommitmentshallbecomeeffective unless and until (1)each Letter of Credit previously issued in respect of such LC CommitmentbeingterminatedshallhavebeenreturnedtotheLCIssuerforcancellation, (2)no Reimbursement Obligation in respect of such LC Commitment shall remain outstanding and (3)all LC Loans relating to such LC Commitment shall have been repaid,(y)anypartialreductiontotheLCCommitmentshallbeinaminimumamountof two hundred fifty thousand Dollars($250,000) or an integral multiple of one hundred thousand Dollars($100,000), and (z)no partial reduction to the LC Commitments shall become effective unless and until the sum of (1)the remaining aggregate stated amount oftheapplicableLetterofCreditoutstandingpursuanttosuchLCCommitment,plus (2)the principal amount of all LC Loans madeordeemedmadehereunderin connection with such LC Commitment, plus (3) the amount of any Reimbursement Obligations outstanding in respect of such LC Commitment is less than or equal to the requested reduced LC Commitment (which may be accomplished through the return of a Letter of Credit to the LC Issuer in exchange for a replacement Letter of Credit with a reduced stated amount).
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Section2.13.SubstitutionofLenders.Intheevent(a)anyLenderisaDefaultingLenderoris otherwise in default in any material respect with respect to its obligations under the Credit Documents,(b)anyLenderfailstoconsenttoanamendmentorwaiverrequestedunder Section12.20hereof at a time when the Required Lenders have approved such amendment or waiveror(c)anyLendermakes ademandforcompensation ofanyincreasedcost,anyreduction of the amount of any sum received or receivable by such Lender or any reduction in the rate of return on such Lender’s or any corporation controlling such Lender’s capital pursuant to Sections10.3(a)or 10.3(b)or the Borrower is required to pay any Indemnified Taxes or additional amounts to anyLender or anyGovernmental Authorityfor the account of anyLender pursuanttoSection12.1orSection12.3(anysuchLenderreferredtoinclauses(a),(b)or(c)above being hereinafter referred to as an “Affected Lender”), the Borrower may, in addition to any other rights the Borrower may have hereunder or under Applicable Law, require, at its expense, any such Affected Lender to assign, at par plus accrued interest and fees, without recourse, all of its interest, rights, and obligations hereunder (including all of its Commitments and the Loans and participation interests in Letters of Credit and other amounts at any time owingtoithereunder,andtheotherCreditDocuments(includingits(oritsAffiliate’s)Permitted Hedging Agreements)) to a commercial bank or other financial institution specified by the Borrower; provided that (i)such assignment shall not conflict with or violate any law, rule or regulation or order of any court or other Governmental Authority, (ii)the Borrower shall have received the written consent of the Administrative Agent, which consent shall not be unreasonably withheld or delayed, to such assignment, (iii)the Affected Lender shall have received all monies (together with, unless the Affected Lender is in default in any material respect with respect to its obligations hereunder, amounts due to such Affected Lender under Section2.11hereof as if the Loans owing to it were prepaid rather than assigned) including the principal and accrued interest and fees owed to it hereunder and (iv)the assignment is entered intoinaccordancewiththeotherrequirementsofSection12.19hereof(providedanyassignment fees and reimbursable expenses due thereunder shall be paid bythe Borrower).
Section 2.14.Defaulting Lenders.
(a)Adjustments.Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:
(i)The Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth inSection12.20.
(ii)Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of that Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 9or otherwise), shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by that Defaulting Lender to the Agents hereunder; second, to the payment on a pro rata basis of any amounts owing by that Defaulting Lender to any LC Issuer hereunder; third, as the Borrower may request (so long as no
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Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required bythis Agreement, as determined by the Administrative Agent; fourth, if so determined by the Administrative AgentandtheBorrower,tobeheldinanon-interest-bearingdepositaccountandreleased pro rata to satisfy the future obligations of that Defaulting Lender to fund Loans under this Agreement; fifth, to the payment of any amounts owing to the Lenders or the LC Issuers as a result of any judgment of a court of competent jurisdiction obtained by any LenderorLCIssueragainstthatDefaultingLenderasaresultofthatDefaultingLender’s breach of its obligations under this Agreement; sixth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under thisAgreement;andseventh,tothatDefaultingLenderorasotherwisedirectedbyacourt ofcompetentjurisdiction;providedthatif(A)suchpaymentisapaymentoftheprincipal amount of any Loans in respect of which that Defaulting Lender has not fully funded its appropriate share and (B)such Loans were made at a time when the conditions set forth in Section 6were satisfied or waived, such payment shall be applied solely to pay the Loans of, and owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or owed to, that Defaulting Lender until such time as all Loans and funded and unfunded participations in LC Obligations are held by the Lenders pro rata in accordance with the Commitments.Anypayments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 2.14(a)(ii)shall bedeemed paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.
(iii)(x)TheDefaultingLendershallnotbeentitledtoreceiveanycommitment fee pursuant to Section3.1(a)for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to payanysuch fee that otherwise would have been required to have been paid to that Defaulting Lender); (y)the Defaulting Lender shall be entitled to receive Letter of Credit Fees for anyperiod during which that Lender is a Defaulting Lender only to the extent allocable to its applicableProportionate Share of the stated amount of Letters of Credit for which it has provided cash collateral; and(z)withrespecttoanycommitmentfeeorLetterofCreditFeenotrequiredtobepaid to any Defaulting Lender pursuant to clause(x)or (y)above, the Borrower shall (A)pay to each non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in Obligations that has beenreallocated to such non-DefaultingLenderbelowand(B)not berequired to pay the remaining amount of any such fee.
(b)Defaulting LC Lender Cure.If the Borrower, the Administrative Agent and the LC Issuer agree in writing in their sole discretion that a Defaulting Lender that is an LC Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditionssetforththerein(whichmayincludearrangementswithrespecttoanycashcollateral),
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that LC Lender will, to the extent applicable, purchase that portion of outstanding LC Loans of theotherLCLendersortakesuchotheractionsastheAdministrativeAgentmaydeterminetobe necessary to cause the LC Loans and funded and unfunded participations in Letters of Credit to be held on a pro rata basis by the LC Lenders in accordance with their applicable Proportionate Shares, whereupon that LC Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that LC Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expresslyagreed bythe affected parties, no change hereunder from Defaulting Lender to LC Lender will constitute a waiver or release of any claim of any party hereunder arising from that LC Lender’s having been a Defaulting Lender.
(c)DefaultingConstructionLenderCure.IftheBorrower,theAdministrativeAgent and the Construction Lenders agree in writing in their sole discretion that a Defaulting Lender thatisaConstructionLendershouldnolongerbedeemedtobeaDefaultingLender,the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Construction Lender will, to the extent applicable, purchase that portion of outstanding Construction Loans of the other Construction LendersortakesuchotheractionsastheAdministrativeAgentmaydeterminetobenecessaryto cause the Construction Loans to be held on a pro rata basis by the Construction Lenders in accordance with their applicable Proportionate Shares, whereupon that Construction Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Construction Lender was a Defaulting Lender; and provided, further that except to the extent otherwise expresslyagreed bythe affected parties, no change hereunder from Defaulting Lender toLenderwillconstituteawaiverorreleaseofanyclaimofanypartyhereunderarisingfromthat Construction Lender’s having been a Defaulting Lender.
(d)Defaulting Bridge Lender Cure.If the Borrower, the Administrative Agent and the Bridge Lenders agree in writing in their sole discretion that a Defaulting Lender that is a Bridge Lendershould nolongerbedeemed to be a Defaulting Lender,the AdministrativeAgent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to anyconditions set forth therein (which mayinclude arrangements with respect to any cash collateral), that Bridge Lender will, to the extent applicable, purchase that portion of outstanding Bridge Loans of the other Bridge Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Bridge Loans to be held on a pro rata basis by the Bridge Lenders in accordance with their applicable Proportionate Shares, whereupon that Bridge Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalfofthe Borrower whilethat Bridge LenderwasaDefaultingLender;andprovided,further that except to the extentotherwiseexpresslyagreed bytheaffectedparties, nochangehereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Bridge Lender’s having been a Defaulting Lender.
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(e)Defaulting Upsize Bridge Lender Cure.If the Borrower, the Administrative Agent and the Upsize Bridge Lenders agree in writing in their sole discretion that a Defaulting Lender that is an Upsize Bridge Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Upsize Bridge Lender will, to the extent applicable, purchase that portion of outstandingUpsizeBridge Loans of the other UpsizeBridge LendersortakesuchotheractionsastheAdministrativeAgentmaydeterminetobenecessaryto cause the Upsize Bridge Loans to be held on a pro rata basis by the Upsize Bridge Lenders in accordance with their applicable Proportionate Shares, whereupon that Upsize Bridge Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively withrespecttofeesaccruedorpaymentsmadebyoronbehalfoftheBorrowerwhilethatUpsize BridgeLenderwasaDefaultingLender;andprovided,furtherthatexcepttotheextentotherwise expresslyagreed bythe affectedparties, no changehereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Upsize Bridge Lender’s having been a Defaulting Lender.
SECTION3.FEES.
Section 3.1. Fees.
(a)CommitmentFee.
(i)On each Quarterly Date until the expiration of the Construction Loan Availability Period (where all or any portion of such calendar quarter occurs on or after the Financial Closing Date) and on the Construction Loan Maturity Date (and, if the ConstructionLoanCommitmentiscancelledinfullpriortosuchdate,onthedateofsuch cancellation), the Borrower shall payto the Administrative Agent, for the benefit of each Lender, for its own account in accordance with such Lender’s Construction Loan Commitment, accruing from the Financial Closing Date or the first day of such quarter, as the case may be, Construction Loan commitment fees (the“Construction Loan Commitment Fees”), for such quarter (or portion thereof during the Construction Loan Availability Period) then ending equal to the product of (A)one half of one percent (0.50%) times (B)the daily average Available Construction Loan Commitment for such quarter (or portion thereof during the Construction Loan Availability Period), including the first day but excluding the last day thereof, times (C) a fraction, the numerator of which is the number of days in such quarter (or portion thereof during the Construction Loan Availability Period), including the first day but excluding the last day thereof, and the denominator of which is three hundred sixty(360); provided that, if the Financial Closing Date occurs on or within five(5) Business Days prior to a Quarterly Date, such commitment fees that otherwise would be due and payable on such Quarterly Date instead shall be due and payable on the immediately following Quarterly Date.
(ii)On each Quarterly Date until the expiration of the Bridge Loan Availability Period (where all or any portion of such calendar quarter occurs on or after the Financial Closing Date) and on the Bridge Loan Maturity Date (and, if the Bridge
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Loan Commitment is cancelled in full prior to such date, on the date of such cancellation), the Borrower shall payto the AdministrativeAgent, for thebenefit ofeach Lender,foritsownaccountinaccordancewithsuchLender’sBridgeLoanCommitment, accruingfrom theFinancial ClosingDate or thefirst dayofsuchquarter,as thecasemay be, Bridge Loan commitment fees (the“Bridge Loan Commitment Fees”), for such quarter (or portion thereof duringtheBridge Loan AvailabilityPeriod)then endingequal to the product of (A)one half of one percent (0.50%) times (B)the daily average Available Bridge Loan Commitment for such quarter (or portion thereof during the Bridge Loan Availability Period), including the first day but excluding the last day thereof, times (C)a fraction, the numerator of which is the number of days in such quarter(orportionthereofduringtheBridgeLoanAvailabilityPeriod),includingthefirst day but excluding the last day thereof, and the denominator of which is three hundred sixty(360); provided that, if the Financial Closing Date occurs on or within five(5) Business Days prior to a QuarterlyDate, such commitment fees that otherwise would be due and payable on such Quarterly Date instead shall be due and payable on the immediately following Quarterly Date.
(iii)On each Quarterly Date until the expiration of the Upsize Bridge Loan Availability Period (where all or any portion of such calendar quarter occurs on or after the Financial Closing Date) and on the Upsize Bridge Loan Maturity Date (and, if the Upsize Bridge Loan Commitment is cancelled in full prior to such date, on the date of such cancellation),the BorrowershallpaytotheAdministrativeAgent,forthebenefitof each Lender, for its own account in accordance with such Lender’s Upsize Bridge Loan Commitment, accruing from the Financial Closing Date or the first day of such quarter, as the case may be, Upsize Bridge Loan commitment fees (the“Upsize Bridge Loan Commitment Fees”), forsuchquarter(orportionthereofduringtheUpsizeBridgeLoan Availability Period) then ending equal to the product of (A)one half of one percent (0.50%)times(B)thedailyaverageAvailableUpsizeBridgeLoanCommitmentforsuch quarter (orportionthereofduringthe Upsize Bridge LoanAvailabilityPeriod),including the first day but excluding the last day thereof, times (C)a fraction, the numerator of which is thenumber ofdays in suchquarter (orportionthereofduringthe Upsize Bridge Loan Availability Period), including the first day but excluding the last day thereof, and the denominator of which is three hundred sixty(360); provided that, if the Financial Closing Date occurs on or within five(5) Business Days prior to a Quarterly Date, such commitment fees that otherwise would be due and payable on such Quarterly Date instead shall be due and payable on the immediately following Quarterly Date.
(iv)OneachQuarterlyDatefollowingtheFinancialClosingDateuntilthelast day of the LC Availability Period (where all or any portion of such calendar quarter occurs on or after the Financial Closing Date) and on the last day of the LC Availability Period (and, if the LC Commitment is cancelled in full prior to such date, on the date of such cancellation), the Borrowershall paytoAdministrativeAgent,forthebenefit ofthe LC Issuer, for its own account in accordance with such LC Issuer’s pro rata share of the Available LC Commitment, accruing from the Financial Closing Date or the first day of such quarter, as the case may be, commitment fees (the“LC Commitment Fees”) for
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such quarter (or portion thereof) then ending equal to the product of (A)one half of one percent (0.50%) times (B)the dailyaverage Available LC Commitment of the LC Issuer for such quarter (or portion thereof), including the first day but excluding the last day thereof, times (C)a fraction, the numerator of which is the number of days in such quarter(orportionthereof), includingthefirst daybut excludingthelast daythereof, and the denominator of which is three hundred sixty(360); provided that, if the Financial Closing Date occurs on or within five(5) Business Days prior to a Quarterly Date, such commitment fees that otherwise would be due and payable on such Quarterly Date instead shall be due and payable on the immediately following Quarterly Date.
(b)The Borrower shall pay to the Administrative Agent, for the account of the LC Issuer, a letter of credit fee (computed, notwithstanding any provision to the contrary in this Agreement (including the use of the term “per annum”), on the basis of a year of three hundred sixty(360)daysandtheactualnumberofdayselapsed)foreachdayatarateperannumequalto (x) the Applicable Margin for SOFR Loans times (y) the average stated amount of each applicable Letter of Credit issued bysuch LC Issuer and outstanding as of such day(the “Letter of Credit Fee”).Accrued Letter of Credit Fees shall be due and payable in arrears on each QuarterlyDateandontheMaturityDate.Inaddition,theBorrowershallpaytotheLCIssuerfor its own account the applicable LC Issuer’s standard issuance, drawing, negotiation, amendment, assignment, and other administrative fees for each Letter of Credit as reasonably established by such LC Issuer from time to time.For the avoidance of doubt, with respect to any Letter of Credit, no Letter of Credit Fee will accrue to the extent that such Letter of Credit has been cash collateralizedinaccordancewiththeproceduressetforthinSection9.2(h)orothercreditsupport reasonably acceptable to the Administrative Agent and any applicable LC Issuer has been provided. Letter of Credit Fees.
(c)Upfront Fee.On the Financial Closing Date, the Borrower shall pay to each LenderandtheLC Issuersuchupfrontfeesandotherfeesasmayfromtimetotimebeagreedin writing between the Borrower andsuch Lenderorsuch LC Issuer (includingpursuant tothe Fee Letters).
SECTION4.PLACEANDAPPLICATIONOFPAYMENTS.
Section 4.1.Placeand Application of Payments.Except withrespect to payments underthe Permitted Hedging Agreements, all payments of principal of and interest on the Loans and the Reimbursement Obligations, and of all other Obligations payable by the Borrower under this Agreement and the other Credit Documents, shall be made by the Borrower to theAdministrative Agent by no later than 2:00 p.m. (New York time) on the due date thereof at the office of the Administrative Agent specified in Section 12.15(or such other location as the Administrative Agent may designate to the Borrower), for the benefit of the Lender(s).Any payments received after such time shall be deemed to have been received by the Administrative Agent on the next Business Day.All such payments shall be made in Same Day Funds at the place of payment, in each case without set-off or counterclaim.The Administrative Agent will promptly thereafter cause to be distributed such funds ratably to the Lenders to be applied in accordance with the terms of this Agreement.If the Administrative Agent causes amounts to be
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distributed to the Lenders in reliance upon the assumption that the Borrower will make a scheduled payment and such scheduled payment is not so made, each Lender shall, on demand, repay to the Administrative Agent the amount distributed to such Lender, together with interest thereon in respect of each day during the period commencing on the date such amount was distributed to such Lender and ending on (but excluding) the date such Lender repays such amount to the Administrative Agent, at a rate per annum equal to: (i)from the date the distribution was made to the date two(2) Business Days after payment by such Lender is due hereunder,theFederalFundsRateforeachsuchdayand(ii)fromthedatetwo(2)BusinessDays after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day.
NotwithstandingSections5.03or5.05(asapplicable)oftheSecurityAgreementtothecontrary, all payments and collections received in respect of the Obligations and all proceeds of the Collateral received, in each instance, by the Administrative Agent or any of the Lenders after acceleration or the maturityof the Obligations or termination of the Commitments as a result of an Event of Default shall be applied in accordance with Section 9.3.
Section4.2.Pro Rata Treatment.Except to the extent otherwise provided herein: (i)each Borrowing shall be made from the relevant Lenders, each payment of a commitment fee under Section3inrespectofCommitmentsshallbemadeforaccountoftherelevantLenders,andeach termination or reduction of the amount of the Commitments under Section 2.14shall be applied to the respective Commitments of the relevant Lenders, pro rata according to the amounts of theirrespectiveCommitments;(ii)eachBorrowingshallbeallocatedprorataamongtherelevant Lenders according to the amounts of their respective Commitments (in thecaseof the makingof Loans) or their respective Loans that are to be included in such Borrowing (in the case of conversionsandcontinuationsofLoans);(iii)eachpaymentorprepaymentofprincipalofLoans and each payment of HedgingTermination Values bytheBorrower shall be made for account of therelevant Lenders and therelevant PermittedHedgingCounterparties,respectively,proratain accordance with the respective unpaid principal amounts of the Loans held bysuch Lenders and the unpaid Hedging Termination Values then due and payable to such Permitted Hedging Counterparties; and (iv)each payment of interest on Loans and each payment of Hedging Settlement Values by the Borrower shall be made for account of the relevant Lenders and the relevant Permitted Hedging Counterparties, respectively, pro rata in accordance with the respectiveunpaidamountsofinterestontheLoansheldbysuchLendersandtheunpaidHedging Settlement Values then due and payable to such Permitted Hedging Counterparties.
SECTION5.REPRESENTATIONSANDWARRANTIES.
The Borrower makes the following representations and warranties to the Administrative Agent, the Collateral Agent, the Lenders and the LC Issuing Banks as of the Financial Closing Date and as of thedateof eachotherCredit Event (exceptthat anyrepresentation or warrantyin this Section5.which relates expresslyto an earlierdate, bydirect referenceorbyreferenceto a document dated a certain date, shall be made only as of such date), all of which representations and warranties shall survive the Financial Closing Date and the making of the Borrowings:
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Section5.1.Organization,Powers.
(a)Each of the Project Group Members (as applicable) is dulyorganized andvalidly existing, has all requisite corporate, limited liability company or partnership (as applicable) power and authority to carry on its business as now conducted.
(b)Each of the Project Group Members (as applicable) is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required except where thefailuretodoso,individuallyorintheaggregate,couldnotreasonablybeexpectedtoresultin a Material Adverse Effect.
(c)Each of the Project Group Members (as applicable) has the corporate, limited liability company or partnership (as applicable) power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.
(d)Each of the Loan Parties (as applicable) has the corporate, limited liability company or partnership (as applicable) power and authority to execute and deliver this Agreement, the other Credit Documents and the Operative Documents to which it is or is intended to be a party and to perform the provisions hereof and thereof and create the Liens intended to be created by the Security Documents to which it is a party.
Section 5.2. Authorization, Enforceability. Each of the Operative Documents required to be in place as of the relevant Credit Event to which any Loan Party is a party (a) has been duly authorized, executed and delivered by such Loan Party; and (b) when executed and delivered by such Loan Party and each of the other parties thereto will be the legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
Section 5.3. Disclosure. All written information (other than projections, budgets, reports, forecasts and other forward-looking information prepared by third party consultants (but including written information provided tosuch consultants bythe Borrower)orinformation of a general economic nature) provided directly or indirectly by or on behalf of the Borrower to Administrative Agent, any Lender or the Independent Engineer in connection with the transactions contemplated hereby, when taken as a whole, when provided, was complete and correct in all material respects and did not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements therein (taken as a whole) not misleading in light of the circumstances under which such statements were made (giving effect to supplements and updates thereto); provided that with respect to any financial statements, the preceding representations and warrantiesmade with respectthereto aresubjecttothelimitations in Section5.4(a).There is no fact, to the Borrower’s Knowledge, that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in such written information provided by the Borrower.
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Section5.4.Financial Condition;NoMaterialAdverse Effect.
(a)Financial Condition.The financial statements delivered pursuant to Section7.8, if any, present fairly, in all material respects, the financial position and results ofoperations and cash flows of the entities covered thereby as of the dates of such financial statements and for such periods in accordance with GAAP.
(b)No Material Adverse Effect.Since the date of formation of the Borrower, no eventorcircumstance(includinganyCasualtyEventorEventofEminentDomain)hasoccurred that, individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.
Section 5.5.No Conflicts.Except as set forth on Schedule5.5, the execution, delivery and performance by each Loan Party of this Agreement and the other Credit Documents to which suchLoanPartyisapartydoesnotand,totheKnowledgeofsuchLoanParty,willnot(a)violate anyApplicableLaworGovernmentalApprovalinanymaterialrespect,(b)violateanyprovision of the Organizational Documents of such Loan Party, (c)violate or result in a material default under any material Project Document or material indenture, agreement or other instrument binding upon such Loan Party or such Loan Party’s assets, or give rise to a right thereunder to require any material payment to be made by such Loan Party or (d)except for the Liens created pursuanttotheCreditDocuments,resultinthecreationorimpositionofanyLienonanyassetof such Loan Party.
Section 5.6.Applicable Laws.Each Project Group Member is in compliance in all material respectswithallApplicableLawsapplicabletosuchProjectGroupMember,eachProjectand,to the extent applicable to such Project Group Member or such Project, the Sites.Except as otherwisehavebeendeliveredtoAdministrativeAgent,nowrittennoticeofmaterialviolationof any Applicable Law relating to any Project Group Member, any Project or, to the extent applicable to a Project Group Member or any Project, any Site, has been issued or received by any Project Group Member or any of the Borrower’s Affiliates.
Section5.7.ExistingDefaults.NoProjectGroupMemberisinmaterialdefaultorinmaterial breach of any term or provision applicable to it under any material Operative Document or any agreement relating to any obligations of any Project Group Member for or with respect to borrowed money and, to the Knowledge of the Borrower, no other party to any Operative Document is in material default or in material breach of any material term or provisionapplicable to it under any material Operative Document.
Section 5.8.Environmental Matters; Equator Principles.No Project Group Member (i) is in material violation of any Environmental Law relating to the Projects or the Sites, (ii) is subjecttoanypendingor,totheKnowledgeoftheBorrower,threatenedmaterialEnvironmental Claim(includinganyinquiriesorrequestsforinformation)relatingtotheProjectsortheSitesor (iii)has Released anyHazardous Materials at, in, on, under, to orfrom theSites, anyMortgaged Property that could reasonably be expected to result in material Environmental Liability or require any Project Group Member to conduct material remedial action pursuant to any EnvironmentalLaw.NoneoftheSitesarelistedorproposedforlistingontheNationalPriorities
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List pursuant to CERCLA. The Sites and all construction and operation of the Projects are in material compliance with the Equator Principles.To the Borrower’s Knowledge, there is no event, condition or circumstance that could reasonably be expected to result in any material liability under any Environmental Law to, or any material Environmental Claim against, the Agents, the Lenders, or any Project Group Member.
Section5.9.Litigation.Except as set forth on Schedule5.9, there is (a)no action, suit or proceeding by or before any arbitrator or Governmental Authority now pending against any Project Group Member or any Project or, to the Knowledge of the Borrower, threatened in writing against anyProject Group Member or anyProject, in each case (i)that could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, or (ii)that seeks to invalidate any material Operative Document or the transactions contemplated by the Operative Documents, and (b)no Project Group Member is in material default with respect to any material applicable order, writ, injunction or decree of any Governmental Authority or arbitral tribunal.
Section5.10.Default.NoDefaultorEventofDefaulthasoccurredandiscontinuing.
Section 5.11.Taxes.
(a)EachProjectEntityhasfiled,orcausedtobefiledonitsbehalf,allincomeandall material non-income Tax Returns required to be filed by it (after giving effect to anyextensions that have been requested by, and granted to, such Project Entitybythe applicable Governmental Authority).All such Tax Returns weretrue, complete, and correct in all material respects at the time of such filing.Each Project Entity has paid or caused to be paid on its behalf all income and all material non-income Taxes due by it, including all Taxes shown as due on such Tax Returns(otherthanthoseTaxesthatarebeingcontestedingoodfaithbyappropriateproceedings and for which adequate reserves are being maintained in accordance with GAAP).
(b)No material adjustments to the Tax liability of any Project Entity have been proposed in writing (or are currently pending) by any Governmental Authority in connection with any Tax Return of such Project Entity.
(c)EachProject isdesigned to use, and uponbeingplaced inserviceforU.S.federal income tax purposes will use, solar energyto generate electricitywithin the meaning of Section 48 of the Code.
(d)NoProjectGroupMemberis(i)aDisqualifiedPersonor(ii)aTaxRelated Person.
(e)Therehasneverbeen(A)anygrantappliedfororprovidedbytheUnitedStates, any state or any political subdivision of a state for use in connection with a Project or with respect to which the Borrower or a Project is the beneficiary, including a grant with respect to a Project (or any of the assets, property, or equipment included in the Project) from the U.S. Department of Treasury under Section 1603 of Division B of the American Recovery and Reinvestment Act of 2009, as amended, (B) any proceeds of any issue of state or local
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government obligations used to provide financing for a Project the interest of which is exempt from federal income tax under Section 103 of the Code or (C) prior to the Financial Closing Date, any tax credits pursuant to Sections 48 or 45 of the Code taken by the Borrower with respecttoanyProject,anypropertyorequipmentincludedtherein.Noelectionhasbeenmadeto elect to claim the production tax credit under Section 45 of the Code in lieu of the ITC with respect to any Project.
(f)NotangiblepropertyofaProjectisleasedtoa“tax-exemptentity”orotherwiseis “tax-exempt” use property within the meaning of Section 168(h) of the Code.No part of the assets, property or equipment of the Project is (A) “imported property” within the meaning of Section168(g)(1)(D)oftheCodeorasdefinedinSection168(g)(6)oftheCode,(B) “tax-exemptbondfinancedproperty”within themeaningofSection168(g)(1)(C)oftheCodeor as defined in Section 168(g)(5) of the Code, or (C) “public utility property” within the meaning of Section 168(i)(10) of the Code.
(g)EachProjectislocatedinitsentiretyintheUnitedStates.
(h)Lessthanfivepercent(5%)ofthefairmarketvalueoftheproperty,materialsand parts that comprise each Project, on the date such property is placed in service for U.S. federal incometaxpurposes,consistsofproperty,tools,materialsandpartsthatwerepreviouslyusedby anypersonotherthantheapplicableHoldcoortheapplicableProjectCompany(orthe applicableEPCContractor)(otherthaninconnectionwiththeconstruction,start-up,testing,and commissioning of such Project).
(i)Each Project is expected to be “placed in service” for U.S. federal income tax purposes no later than June 30, 2026.
(j)None of the Power Purchase Agreements are of an adverse type described in Section 45(e)(7) of the Code.
(k)EachBeginningofConstructionCertificateistrueandcorrectinallrespects.
(l)Each of the Bluebird Project and Prairie Project qualifies for the “increase in credit rate for energycommunities” described in Section 48(a)(14) of the Code.
(m)The Prairie Project EnergyCommunityAdder Certificate is true and correct in all respects.IftheBluebirdProjectqualifiedforthe“increaseincreditrateforenergycommunities” described in Section 48(a)(14) of the Code, the Borrower shall deliver the Bluebird Project EnergyCommunityAdderCertificateandsuchcertificateshallbetrueandcorrectinallrespects.
(n)EachProjecteither(i)isexemptfrom(byreasonofbeginningconstructionbefore January 29, 2023) or (ii) will be in compliance with the prevailing wage and apprenticeship requirements set forth in Sections 48(a)(10) and 48(a)(11) of the Code, taking into account for this purpose the correction and penaltyprovisions described inSections48(a)(10) and48(a)(11) of the Code.
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(o)All representations and warranties with respect to tax matters made by aClass B Member or HoldCo in the Tax Equity Documents, TC Structure Documents andTax Credit Transfer Documents (other than those pertaining solely to the Tax EquityInvestors or the Tax Credit Buyers) were true in all material respects when given and areexpected to remain true in all material respects (except to the extent resulting from anownership interest in the applicable Holdco by the applicable Tax Equity Investor). Noclaim has been made under the Tax Equity Documents, TC Structure Documents or TaxCredit Transfer Documents in respect of the loss, disallowance or reduction of (a) theeligibility of the applicable Project for the ITC in the full amount claimed (or expected tobe claimed) by the applicable Holdco, (b) the eligibility of the applicable Project for thedepreciationdeductionsavailableorreasonablyexpectedtobeavailableinconnectionwithsuch Project, and (c) the treatment of each Project Entity as a disregarded entity orpartnership for U.S. federal income tax purposes.
(p)To the extent Tax Equity Documents, TC Structure Documents or TaxCredit Transfer Documents have been executed with respect to a Project, the initial taxbasis allocable to “energy property” within the meaning of Section 48(a)(3)(A)(i) of theCode of the Project Company owner thereof is reasonably expected to be no less than theamount allocated to “energy property” within the meaning of Section 48(a)(3)(A)(i) of theCode in the adjusted base case model set forth in such Tax Equity Documents, TCStructure Documents and Tax Credit Transfer Documents, as applicable.
Section 5.12.Permits.
(a)There are no Permits that are required to be obtained under current Applicable Law by the Project Group Members for the development, siting, construction, interconnection, testing, operation, ownership, sale of electricity and RECs, or maintenance of the Projects as currentlydesignedthatareApplicablePermitsotherthanthePermitsdescribedinSchedule5.12.
(b)EachApplicablePermitlistedinPartIofSchedule5.12,(A)wasvalidlyissuedor made,isinfullforceandeffectandisissuedinthenameoftheapplicableProjectCompanyoris otherwiseforthebenefitoftheProjectownedbysuchProjectCompany,(B)isnotsubjecttoany unsatisfiedconditionapplicabletotheProjectCompanyorProjectownedbysuchProject Companythatiscurrentlyrequiredtobesatisfiedthathasnotbeensatisfiedinallmaterial respects,(C) isnotthesubjectofpendingor,totheBorrower’sKnowledge,threatened proceedings(includingadministrativeorjudicialappeal,Permitrenewalsormodifications, suspensions or revocations) that could reasonably be expected to result in a Material AdverseEffect and (D) if there is a specific time limit for theappeal bya third partyof such permit under specific Applicable Law pursuant to which such Applicable Permit was issued, such third-party appealperiodhasexpired(exceptassetforthonSchedule 5.12). TheBorrowerreasonably believes that each Permit listed in Part IIof Schedule 5.12will be obtained before it becomes an Applicable Permit, and no Permit listed in Part II of Schedule 5.12is the subject of pending or,totheBorrower’sKnowledge,threatenedproceedingsthatcouldreasonablybeexpectedtoresult inaMaterialAdverseEffect. TheBorrowerhasnotifiedtheAdministrativeAgentofeach Applicable Permit not listed on Schedule 5.12that, since the Financial Closing Date, due to a
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changeinApplicableLaworotherwise,hasbecomeanApplicablePermit.NoProjectCompany is in material violation of any Applicable Permit.
Section5.13.IntellectualProperty.
(a)No Loan Party has received notice that any material product, process, method, substance, part, service or other material presently contemplated to be sold by or employed by any Loan Party infringes in any material respect any license, permit, franchise, authorization, patent,copyright,proprietarysoftware,servicemark,trademark,tradenameorotherrightowned byanyotherPersonthat,individuallyorintheaggregate,couldreasonablybeexpectedtohavea Material Adverse Effect.
(b)There is no violation by any Loan Party, or to the Borrower’s Knowledge, any pendingorthreatened claim orlitigation byanyPerson contestingtheright ofanyLoanParty, in each case, with respect to any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by a LoanPartythat,individuallyorintheaggregate,couldreasonablybeexpectedtohaveaMaterial Adverse Effect.
(c)EachLoan Party owns, or is licensed to use, all trademarks, trade names, copyrights, patents and other intellectual propertynecessaryto carryon itsbusiness, and theuse thereof by suchLoan Party does not infringe upon the rights of any other Person that, individuallyorintheaggregate,couldreasonablybeexpectedtohaveaMaterialAdverseEffect.
Section5.14.Insurance.Insurance complying with Section7.2is in full force and effect and allpremiums duethereonhavebeenpaid infull(orwill betimelypaid)andthereisnopremium due that is inarrears.Except withrespect to policies that havebeenreplaced with otherpolicies in compliance with this Agreement, no notice from any insurer or its representative as to any cancellation or reduction or other change in coverage has been received.
Section5.15.ProjectDocuments.
(a)The real property described on Exhibit A of the American Beech Pro Forma provided at Financial Closingand theAmerican Beech Title Policyprovided pursuant to Section7.25(d)constitutestheentireSitefortheAmericanBeechProject.Therealpropertydescribedon Exhibit A of theBluebird Pro Formaprovidedat Financial Closingand theBluebird TitlePolicy provided pursuant to Section 7.25(d)constitutes the entire Site for the Bluebird Project. The real property described on Exhibit A-2 of the pro forma Prairie Title Policy provided at Financial Closing and the Prairie Pro Forma provided pursuant to Section 7.25(d)constitutes the entireSite for the Prairie Project. Other than those services, materials, real property interests, Real Property Documents and other rights that can be reasonably expected to be commercially availablewhenandasrequired,theservicestobeperformed,thematerialstobesuppliedandthe RealProperty(includingallnecessaryeasementsandrightsofwayinrespecttotheconstruction, operation, interconnection and utilization of any necessary Project transmission lines), the Real Property Documents and other rights granted pursuant to the Project Documents(i) are sufficient to enable (x) each Project to be located, constructed and interconnected on the
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applicableSiteand(y)eachProjecttobeoperatedandmaintainedontheapplicableSite,ineach case in accordance with Prudent Industry Practices, all Applicable Laws, the applicable Project Documents,theapplicableProjectBudget,theapplicableProjectSchedule,theBaseCaseModel andtheapplicableAnnualOperatingBudgetand(ii)provideadequateingresstoandegressfrom eachProjectfortheconstruction,operationandmaintenanceofsuchProjectundertheapplicable Project Documents.
(b)True,correctandcompletecopiesofallProjectDocuments,ascurrentlyineffect, have been delivered to Administrative Agent by or on behalf of the Borrower.Except as previouslydisclosed in writingto Administrative Agent,noneofthe Operative Documentshave expired or been amended, modified or terminated, other than in accordance with the terms of such Operative Document and the terms of this Agreement, and each such Operative Document not so terminated or expired in accordance with the terms of such Operative Document and the terms of this Agreement, is in full force and effect.
Section5.16.CompliancewithEmployeeBenefitPlan.NoERISAEventwithrespecttoany Loan Party or any ERISA Affiliate, has occurred and is continuing or is reasonably expected to occur,thatcouldreasonablybeexpectedtoresultinapaymentobligationbyanyLoanParty.To the Knowledge of the Borrower, the present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recentlyendedplan yearonthebasis oftheactuarialassumptionsspecifiedforfundingpurposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value oftheassetsofsuchPlanallocabletosuchbenefitliabilitiesbyamaterialamount.Theterm “benefit liabilities” has the meaning specified in Section4001 of ERISA and the terms “current value” and “present value” have the meaning specified in Section 3 of ERISA.
Section 5.17. Business, Indebtedness, Contracts, Etc.No Project Group Member has conducted any business other than the business contemplated by the Operative Documents and activities incidental thereto or incurred outstanding Indebtedness or other liabilities other than pursuant to or allowed bytheOperativeDocuments, and no Project Group Member is partyto or boundbyanymaterialcontractotherthantheOperativeDocumentsandanycontractenteredinto after the Financial Closing Date in compliance with this Agreement.
Section5.18.Margin Regulations.No part of the proceeds from the Loans hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Federal Reserve Board (or anysuccessor), or forthepurposeof buying or carrying or trading in any Securities under such circumstances as to involve the Borrower in a violation of Regulation X of the Federal Reserve Board (or any successor) or to involve anybroker ordealer in aviolation ofRegulation T of theFederal ReserveBoard (orany successor).Margin stock does not constitute any of the value of the assets of the Borrower and the Borrower does not have any present intention that margin stock will constitute any of the value of such assets.As used in this Section5.18, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.
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Section5.19.ForeignAssetsControlRegulations,Etc.
(a)None of the Borrower or any Project Group Member or any of the respective Subsidiaries of the Borrower and Project Group Members, or any of the respective directors, officers, agents or employees of the Borrower or any Project Group Member or any of the respective Subsidiaries of the Borrower and Project Group Members, or to the Borrower’s knowledge, any of the Borrower’s Affiliates, (i)is a Sanctioned Person or (ii) has engaged, directly or indirectly, in any dealings, transactions or investments with, involving or for the benefit of any Sanctioned Person or otherwise in violation of applicable Sanctions.
(b)None of the Borrower or any Project Group Member or any of the respective Subsidiaries of the Borrower and Project Group Members, or anyof therespective, or anyof the respectivedirectors,officers,agentsoremployeesoftheBorroweroranyProjectGroupMember or any of the respective Subsidiaries of the Borrower and Project Group Members, or to the Borrower’sknowledge,anyoftheBorrower’sAffiliates,has(i)violatedanyapplicable Anti-Corruption Laws or Anti-Money Laundering Laws or (ii) been the subject of any claim, action, proceeding or, to the Borrower’s Knowledge, investigation by any Governmental Authority for any suspected or actual violation of any Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions.
(c)The Borrower, each Project Group Member and each of the respective Subsidiaries of the Borrower and the Project Group Members has instituted and maintains, or is subject to,policies andproceduresdesigned topromote and achieve compliance with applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.
(d)The Borrower will not use, directly or indirectly, any portion of the proceeds of the Loans, or lend, contribute or otherwise make available such proceeds to any Person, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money,oranythingelseofvalue,toanyPersoninviolationofapplicableAnti-CorruptionLaws; (ii) in anyother manner that would constitute a violation of applicable Anti-Corruption Laws or Anti-Money Laundering Laws; (iii) to fund any activities or business with, involving or for the benefit of anySanctioned Person or in anySanctioned Country; or (iv) otherwise in anymanner that would constitute or give rise to a violation of Sanctions by any party hereto, including any Lender.
Section 5.20.Status.
(a)Investment Company.The Borrower is not an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.
(b)Regulatory Status.Except for the Project Companies, no Loan Party is or will become(i)subject toregulationas a“publicutility”asdefinedunderSection201(e)oftheFPA, or(ii)subjectto,ornotexemptfrom,regulationasan“electricutilitycompany”ora “public-utility company” as such terms are defined in Section1262 of PUHCA.Each Project Company will have (A) EWG status and be exempt from FERC regulation under PUHCA pursuant to 18 C.F.R. § 366.7(e), and (B) MBR Authority in full force and effect on or prior to
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the date electric energy (including test energy) is first generated by the Project owned by such ProjectCompany.EachLoanPartyiseither(i)nota“holdingcompany”assuchtermisdefined in Section1262(8) of PUHCA, or (ii)a “holding company” within the meaning of PUHCA that is exempt from the federal access to books and records provisions of PUHCA and FERC’s accounting, record-retention, and reporting regulations pursuant to 18C.F.R.§366.3 or has a waiverofFERC’saccounting,record-retention,andreportingregulationspursuantto 18C.F.R.§366.3.No Loan Party is or, upon the commencement of generation (including test power) of any Project, will become subject to regulation by any State PUC with respect to the rates of electric utilities or public utilities or the financial and organizational regulation of electric utilities or public utilities. No prior notice to or authorization by any State PUC is required for the execution and delivery of the Credit Documents or the performance of obligations thereunder.
Section5.21.Offices,LocationsofCollateral.Thechiefexecutiveofficeorprincipalplaceof business(assuchtermisusedinArticle9oftheUniformCommercialCode)ofeachLoanParty is located at c/o MN8 Energy LLC, 1155 Avenue of the Americas, 27thFloor, New York, New York 10036.The Mortgaged Property and all tangible Collateral is, or when installed pursuant to the Project Documents will be, located at or on the Sites (other than any equipment that has been installed and temporarily removed for any warranty work, repair or maintenance) or at the address set forth in Annex 1 to the Security Agreement.
Section5.22.Bank Accounts.The Borrower is not the beneficiary of any bank account, includingany“depositaccount”witha“bank”(ineachcasewithinthemeaningofSection9-102 of the Uniform Commercial Code as in effect in the StateofNew York from time to time), other than any Borrower Accounts.
Section5.23.Solvency.The Borrower is and, upon the incurrence of any Obligations by theBorrower and after giving effect to the transactions contemplated hereby, will be Solvent.
Section 5.24.Title and Liens.
(a)Subject (in the case of the Bluebird Project) to the IRB Documents, each Loan Party has good title to all of its personal property comprising Collateral, and, as applicable, a valid and insurable leasehold, subleasehold, right of way, easement, permit, license or fee interest in each of the applicable Sites, not subject to anyLiens other than Permitted Liens.All of the material Real Property Documents that pertain to the Sites are listed on Schedule 5.24hereof (or, followingthe Financial Closing Date,haveotherwisebeendisclosed andprovided to the Administrative Agent).
(b)To the Knowledge of the Borrower, there is no pending or threatened Event of Eminent Domain that would reasonably be expected to materially impair the use of the Sites by the Project Companies for the purposes contemplated by the Operative Documents.
(c)Neither the Borrower nor any Project Company has been informed in writing by any of the landowners and easement grantors with respect to the Real Property Documents that
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the Borrower or any Project Company is in material breach of its obligations under the corresponding Real PropertyDocuments (other than anysuch breach that is not continuing).
Section 5.25.ProjectBudgets;ProjectSchedules. TheProjectBudgets,theProject SchedulesandtheresultingBaseCaseModelare,totheBorrower’sKnowledge(and,with respecttotheBaseCaseModel,solelyasoftheFinancialClosingDate),(a)basedonreasonable assumptions as to all legal and factual matters material to the estimates set forth therein, and set forthagoodfaithestimate,believedbymanagementoftheBorrowertobereasonableatthetime made and at the time so furnished, of the expected financial performance of theProjects; (b)are consistentwiththeprovisionsoftheOperativeDocuments;and(c)exceptaspreviously approvedby theapplicableLendersinaccordancewiththisAgreement,provideagoodfaith estimate that the estimated Project Costs will not exceed funds available to pay Project Costs. Except as previously approved by the applicable Lenders in accordance with this Agreement, to the Borrower’s Knowledge, there are no material Project Costs (including anticipated sales and usetaxes)thatarenotincludedintheProjectBudgets. EachProjectBudgetaccurately representsinallmaterialrespectstheBorrower’sestimatedanticipatedsalesandusetaxes taxable to theBorrower of the applicable Project Companyfor the construction of the applicable Project.
Section5.26.Collateral.ThesecurityinterestsintheCollateralgrantedtotheCollateralAgent pursuant to the Security Documents (a)as to personal property included in the Collateral constitute and, as to subsequently acquired personal property included in the Collateral, will constitute, the first priority security interest purported to be created under such Security Document (except for the Permitted Liens), and (b)are, and, with respect to such subsequently acquired property, will be, as to Collateral that can be perfected by the proper filing of a UCC financingstatement, superior and prior to therights of all third Persons now existingorhereafter arisingwhetherbywayofmortgage,lien,securityinterests,encumbrance,assignmentor otherwise subject only to Permitted Liens.All such action as is necessary has been taken (or contemporaneously with the execution hereof will be taken) to establish and perfect the Collateral Agent’s (for the benefit of the Secured Parties) rights in and to, and first priorityLien on,subject toPermitted Liens,theCollateral,includinganyrecording,filing,registration,giving of notice, granting of control or other similar action.The Security Documents relating to the Collateralandthefinancingstatementsrelatingtheretohavebeenorcontemporaneouslywiththe execution hereof will be duly filed or recorded in each office and in each jurisdiction where required in order to create, perfect and maintain perfected the first priority Lien (subject to Permitted Liens) and security interest described above.
Section 5.27.Ownership of Equity Interests.
(a)As of the Financial Closing Date, (i)the Sponsor indirectly owns one hundred percent (100%) of the membership interests in Devco Pledgor and Opco Pledgor; (ii)Devco Pledgor owns one hundred percent (100%) of the membership interests in the Devco Borrower; (iii)Opco Pledgor owns one hundred percent (100%) of the membership interests in the Opco Borrower, (iv) the Devco Borrower owns one hundred percent (100%) of the membership interests in the Bluebird Project Company, the American Beech Project Company and Prairie
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SolarHoldings,(v)PrairieSolarHoldingsownsonehundredpercent(100%)ofthemembership interests in the Prairie Project Company, (vi) the Bluebird Project Company owns one hundred percent (100%) of the membership interests in Bluebird Solar Investments and (vii) the American Beech Project Company owns thirty-three and one-third percent (33 1/3%) of the membership interests in JVCo.
(b)The Equity Interests in the Borrower and each of its Subsidiaries have been duly authorized and validly issued and are fully paid and non-assessable.Except in connection with theTaxEquityDocumentsorTCStructureDocuments,asapplicable,thereisnoexistingoption, warrant,call,right,commitmentorotheragreementtowhichtheBorrower,PrairieHoldings,the Project Companies, any Class B Member or any HoldCo is a party requiring, and, except in connection with the Tax Equity Documents or TC Structure Documents, as applicable, there is nomembershipinterestinorotherEquityInterestsintheBorrower,PrairieHoldings,theProject Companies, any Class B Member or any HoldCo outstanding which upon conversion or exchange would require, the issuance bythe Borrower, Prairie Holdings, the Project Companies, any Class B Member or any HoldCo of any additional membership interests or other Equity Interests in the Borrower, Prairie Holdings, the Project Companies, anyClass B Member or any HoldCoorothersecuritiesconvertibleinto,exchangeablefororevidencingtherighttosubscribe fororpurchaseamembershipinterestorotherEquityInterestsintheBorrower,PrairieHoldings, the Project Companies, any Class B Member or any HoldCo.
(c)Except as described in this Section5.27, as of the Financial Closing Date, no LoanPartyisageneralpartneroralimitedpartnerinanygeneralorlimitedpartnershiporajoint venturer in any joint venture or a holder of Equity Interests in any company or member in a limited liability company or has any subsidiaries.
Section5.28.Completion.The Borrower reasonably believes that (a) Completion of each Project will occur on or before each Project’s respective Project Completion Date, (b)the aggregateamountofoutstandingProjectCostsrequiredtobepaidinordertoachieve CompletionforeachProjectareconsistentwiththeProjectBudgetsand,intheaggregate,donot exceed the Available Construction Funds and (c)each Project, upon completion in accordance with the Construction Contracts, will comply in all material respects with the applicable OperativeDocumentsandallApplicableLaws.TotheBorrower’sKnowledge,allworkdoneon the Projects has been done in all material respects (i) in a good and workmanlike manner, (ii) in accordance with the applicable Construction Contracts, the applicable Interconnection Agreement and all Applicable Laws and (iii) in accordance with Prudent IndustryPractices.
Section5.29.CollectiveBargainingAgreement;LaborDisputes;ActsofGod.None of the Loan Parties is a party to or bound by anycollectivebargaining agreement.Except as set forth on Schedule 5.29, neither the business nor the properties of any Loan Party (or, to the knowledge of Borrower, any Major Project Participant) is materially affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo,actofGodorofthepublicenemy,orothercasualtyorforcemajeureevent(whetheror not covered by insurance), in each case related to any Project or its obligations with respect to each Project.
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Section 5.30.Flood Compliance.None of the Collateral includes improved real property that is or will be located in an area that has been identified by the Director of theFederal Emergency Management Agency as an area having special flood hazards and in which flood insurance has been made available under any Applicable Law relating to flood insurance (including the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973, theNationalFloodInsuranceReformActof1994andtheBiggert-WatersFloodInsuranceActof 2012).
SECTION6.CONDITIONSPRECEDENT.
Section6.1.Conditions Precedent to the Financial Closing Date.The occurrence of the Financial Closing Date and the obligation of each Lender partyhereto to make the initial Loans tobeappliedinaccordancewiththeapplicableNoticeofBorrowingandotherwiseenterintothe transactions contemplated bythis Agreement is subject to the prior or concurrent satisfaction of each of the following conditions and each of theother conditions (as applicable)set forth in this Section6(unlesswaivedinwritingbyAdministrativeAgentandtheLenders); providedthatthe making of the initial Loans by the Lenders shall act as a confirmation of the satisfaction of any condition precedent to the Financial Closing Date that shall be satisfactory, reasonably satisfactory or reasonably acceptable, or in (or substantially in) a form acceptable, to any of the Administrative Agent or the Lenders:
(a)Certificates; Organizational Documents.
(i)Delivery to the Administrative Agent of an Officer’s Certificate, dated as of the Financial Closing Date, certifying as to (A)the resolutions attached thereto and other limited liability company proceedings relating to the authorization, execution and deliveryof each Operative Documentto whicheachLoanPartyisaparty,(B)eachLoan Party’s and the Sponsor’s certificate of formation and operating agreement as then in effectand(C)acertificateofanotherresponsibleofficerastotheincumbencyand specimensignatureofthenaturalpersonsauthorizedtoexecuteanddelivereach Operative Document to which each Loan Partyand the Sponsor is a party.
(ii)Delivery to the Administrative Agent of a certificate of status, good standingorequivalent,asapplicable,forthejurisdiction offormation oftheSponsorand each Loan Party as of the Financial Closing Date.
(b)IndependentConsultantDeliverables.
(i)Delivery to the Administrative Agent of a reliance letter of each Independent Engineer substantially in the form of ExhibitF-1A, which reliance letter shall certify and attach the applicable Independent Engineer’s Report, which shall be in form and substance reasonablysatisfactoryto the Administrative Agent and the Lenders;
(ii)Delivery to the Administrative Agent of a certificate of the Insurance Consultant substantially in the form of ExhibitF-1C, which certificate shall certify and
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attach the reports prepared by the Insurance Consultant, which shall be in form and substance reasonably satisfactory to the Administrative Agent and the Lenders; and
(iii)DeliverytotheAdministrativeAgentoftheMerchantCurves,whichshall be in form and substance reasonably satisfactory to the Administrative Agent and the Lenders.
(c)Permit Schedule.Delivery to the Administrative Agent of Schedule5.12, the schedule of Applicable Permits required under Applicable Law to develop, construct, test, operate, own or maintain the Projects, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders, together with copies of each Applicable Permit listed on Part Iof Schedule 5.12, each of which has been obtained prior to the Financial Closing Date.
(d)Credit Documents.Delivery to the Administrative Agent or, in the case ofclause(ix)below, each applicable counterparty, or, in the case of clauses (x)and (xi)below, the CollateralAgent,ofthefollowingdocuments,executedanddeliveredbythepartiesthereto,each in form and substance reasonablysatisfactoryto the Administrative Agent and the Lenders:
(i)thisAgreement;
(ii)theSecurityAgreement;
(iii)thePledgeAgreement(Devco)andthePledgeAgreement(Opco);
(iv)theSponsorEquityContributionAgreement;
(v)theAmericanBeechMortgage;
(vi)theBluebirdMortgage;
(vii)thePrairieMortgage;
(viii)each of the Consents required to be executed as of the Financial Closing Date as set forth in Part I of Schedule 6.1(d);
(ix)eachFeeLetter;
(x)original physical membership interest certificates representing all issued and outstanding membership interests in each Borrower, the American Beech Project Company, the Prairie Project Company, Prairie Holdings,Bluebird Solar Investments and any other subsidiary of each Borrower and each Project Company; and
(xi)suchotherdocuments,instrumentsandagreementsasCollateralAgent(at the written direction of the Administrative Agent) or the Title Insurer may reasonably require with respect to any Loan Party to perfect and/or insure in favor of the Collateral Agent first priority Liens (subject to Permitted Liens that, pursuant to Applicable Law,
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are entitled to a higher priority than the Liens granted pursuant to the Security Documents) in all Collateral, including UCC financing statements.
(e)ProjectDocuments.
(i)Deliveryto the Administrative Agentoftrue, correct and completecopies of each ofthe OriginalProject Documents, and anysupplements or amendmentsthereto, alldulyexecutedbythepartiestheretoandinformandsubstancereasonablysatisfactory to the Administrative Agent and the Lenders.
(ii)All conditions precedent to the commencement of performance of each party under the Construction Contracts, the Interconnection Agreements and the Real Property Documents have been performed, have occurred or have been satisfied or waiver (or, simultaneously with the Financial Closing Date, will occur or be satisfied or waived).
(iii)The Administrative Agent shall have received evidence that each Project Company has issued the full notice to proceed (however defined) under, and as defined in, each EPC Contract.
(f)Borrower’s Closing Certificate.Delivery to the Administrative Agent of a certificate of an Authorized Officer of the Borrower or the applicable Loan Partycertifying that the conditions precedent that require certification by an Authorized Officer of the Borrower or applicable Loan Party set forth in this Section 6.1have been met.
(g)Legal Opinions.Delivery to the Administrative Agent of favorable opinion letters, dated as of the Financial Closing Date, in form and substance reasonably satisfactory to the Lenders, of:
(i)Skadden, Arps, Slate, Meagher and Flom LLP, as special New York and Delaware counsel to the Loan Parties and the Sponsor;
(ii)Sturgill,Turner,BarkerandMoloney,PLLC,asspecialKentuckycounsel to the Loan Parties;
(iii)FoxRothschildLLP,asspecialNorthCarolinacounseltotheLoan Parties;
(iv)RockCreekEnergyGroup,LLP,asspecialfederalenergyregulatory counseltotheLoanParties;and
(v)Sturgill, Turner, Barker and Moloney, PLLC, as special federal, state and local permitting counsel to the Loan Parties in connection with the Bluebird Project.
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(h)Insurance.
(i)TheAdministrativeAgentshallhavereceived(x)either(i)certifiedcopies of all policies evidencinginsurance complyingwith the provisions of Section 7.2or (ii) a binder or certificates signed by the insurer or a broker authorized to bind the insurer, in eithercaseinformandsubstancereasonablysatisfactorytotheAdministrativeAgentand the Lenders and naming the Collateral Agent and the other Secured Parties as additional insured and the Collateral Agent as sole loss payee and (y) a certificate from the Borrower’sinsurancebrokerstatingthattheinsurancepoliciesrequiredunderSection7,2 are in full force and effect and that all premiums then due thereon have been paid and that, in the opinion of such Person, such insurance complies with Section 7.2.
(ii)TheAdministrativeAgentshallhavereceivedacopyofthatcertain(i)the Excess Buyer-Side Representations and Warranties Insurance Policy, Policy No.ET111-008-270, (ii) Frist Excess Buyer-Side Representations and Warranties Insurance Policy, Policy No. RTR24RW609285, (iii)Buyer-Side Representations and Warranties Insurance, Policy No. 14362281 and (iv) Excess Buyer-Side Representations and Warranties Insurance Binder Agreement, Policy No. 14362285.
(i)FinancialStatements.Deliveryto Administrative Agent of (i)theauditedannual financialstatementsoftheSponsorfortheyearendingDecember31,2023,and(ii)anunaudited pro forma balance sheet of each Borrower and each Project Company.
(j)KYC.Delivery to each Lender at least three(3) Business Days prior to the Financial Closing Date, in form and substance reasonably satisfactory to the Lenders, all documentation and other information required by bank regulatory authorities, including a properlycompletedandsignedapplicableIRSFormW-8,underapplicable“know-your-customer” and Anti-Money Laundering Laws, including the PATRIOT Act, which are applicable to the Lenders.
(k)BaseCase Model.Deliverytothe Administrative Agent ofthe BaseCaseModel in form and substance reasonably satisfactory to the Administrative Agent and the Lenders (in consultation with the Independent Engineer) and substantially in the form of Exhibit J-1.
(l)No Material Adverse Effect.Since the acquisition of the Project Companies by the Sponsor, no event, condition or circumstance shall have occurred and be continuing that would reasonably be expected to result in a Material Adverse Effect.
(m)Payment of Fees.The Administrative Agent shall have been provided with evidence that (i)subject to Section2.5(d), all amounts required to be paid to or deposited with the Administrative Agent, the Collateral Agent, the Depositary or any Lender under this Agreement or other Credit Documents have been so paid or deposited (or shall be paid or deposited concurrentlywith the occurrence of the Financial Closing Date), and (ii)to the extent reasonably requested, all Taxes, if any (including all filing, recordation, subscription and all other similar fees, and all recording, stamp and other taxes and other expenses related to such filings, registrations andrecordings),dueandpayableonorbeforetheFinancialClosingDatein
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connection with the execution, delivery, recording and filing of this Agreement or any other Operative Document, or anydocument or instrument contemplated thereby, or necessaryfor the consummation of the transactions contemplated by this Agreement and the other Operative Documents, havebeen dulypaid in full (orshall bepaid concurrentlywith theoccurrence of the Financial Closing Date).
(n)Project Budget.Delivery to the Administrative Agent of project construction budgets for each Project (including contingencies and as amended or modified, the “Project Budgets”), which shall include the applicable Project Costs and be in form and substance reasonably satisfactory to the Administrative Agent, the Lenders and, with respect to such Project Costs, in consultation with the Independent Engineer, and attached hereto asExhibit I-1.
(o)Project Schedules.Deliverytothe Administrative Agentof (i)detailed and good faith estimates of the construction schedules of the Projects (each, as amended or modified, a “Project Schedule”) indicating that each Project will (ii)achieve Work Substantial Completion in accordance with Prudent Industry Practices, Applicable Law and the relevant Project Documents by no later than with respect to each Project, such Project’s applicable Project Completion Date, which Project Schedules shall be in form and substance reasonably satisfactory to the Administrative Agent and the Lenders in consultation with the Independent Engineer and attached hereto as Exhibit I-2.
(p)[Reserved.]
(q)Title InsuranceandSurvey.(a) With respect to theBluebirdProject, aproforma versionoftheBluebirdTitlePolicyinformandsubstancereasonablyacceptabletotheRequired Lenders (the “Bluebird Pro Forma”) and a draft pre-construction ALTA/NSPS Land Title SurveydepictingtheBluebirdSite,otherwiseinformandsubstancereasonablyacceptabletothe Required Lenders (the “Bluebird Survey”); (b)with respect to the Prairie Project, a pro forma version of the Prairie Title Policy in form and substance reasonably acceptable to the Required Lenders(the“PrairieProForma”)andadraftpre-constructionALTA/NSPSLandTitleSurvey depicting the Bluebird Site, otherwise in form and substance reasonably acceptable to the RequiredLenders(the“PrairieSurvey”);and(c)withrespecttotheAmericanBeechProject,a pro forma version of the American Beech Title Policy in form and substance reasonably acceptabletotheRequiredLenders(the“AmericanBeechProForma”)andadraft pre-construction ALTA/NSPS Land Title Surveydepicting the Bluebird Site, otherwise in form and substance reasonablyacceptable to the Required Lenders (the “American Beech Survey”).
(r)Representations and Warranties.The representations and warranties of each LoanPartyin this Agreement and theotherCredit Documents to which it is apartyshall betrue and correct in all material respects as of the Financial Closing Date (or, if stated to have been made on or as of an earlier date, were true and correct in all material respects on or as of such earlier date); provided that, to the extent that any such representations and warranties are qualified by materiality, such representations and warranties are true and correct in all respects on and as of the Financial Closing Date (or, if stated to have been made on or as of an earlier date, were true and correct in all respects on or as of such earlier date).
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(s)Due Diligence.The Lenders and the Independent Engineer shall have satisfactorily concluded their legal, financial and technical due diligence review of the Loan Parties, the Projects, the Project Documents and the Permits.
(t)Minimum EquityCommitment.Thetotal EquityContribution shall beequal to or greater than the Minimum Equity Commitment.
(u)UCC Reports.Administrative Agent shall have received a Form UCC-11 report (or similar report) dated no earlier than ten (10) Business Days prior to the Financial Closing Date for each jurisdiction in which the UCC-1 financing statements are to be filed in respect of the personal property Collateral, the American Beech Mortgage, the Bluebird Mortgage or the Prairie Mortgage, showing that, upon due filing or recordation (assuming such filing or recordation occurred on the date of such respective reports), the securityinterests created under theSecurityDocumentswillbepriortoallotherfinancingstatements,fixturefilings,mortgages, deeds of trust or other security documents of record in respect of the Collateral (subject only to Permitted Liens that, pursuant to Applicable Law, are entitled to ahigherprioritythanthe Liens granted by the Security Documents).
(v)Filing and Recordation of Security.All Liens contemplated by the Security Documents to be created and perfected by filing or recording in favor of Collateral Agent pursuant to the Security Documents shall have been perfected, recorded (or deemed recorded) and/or filed (or customary arrangements for such recordation and/or filing promptly after the Financial Closing Date shall have been made) in the appropriate jurisdictions, shall be in full force and effect and shall constitute valid and enforceable first-priority Liens (subject to Permitted Liens).Administrative Agent shall have received evidence that the UCC financing statements to be filed as of the Financial Closing Date necessary to effect the foregoing have been duly filed and recorded (or will be filed and recorded on or around the Financial Closing Date), as applicable, in respect of the Collateral under the SecurityDocuments andotherwise as required under the Security Documents.
(w)Flow of Funds Memorandum.Administrative Agent andCollateral Agent shall have received the Funds Flow Memorandum, in form and substance reasonably satisfactory to Administrative Agent and each Lender.The Administrative Agent is hereby authorized and directed to make payments and transfers in accordance with the Funds Flow Memorandum on the Financial Closing Date.
(x)Establishment of Accounts.The Borrower Accounts required to be opened as of the Financial Closing Date shall have been established.
(y)RegulatoryStatusandFilings.AdministrativeAgentshallhavereceivedevidence that the Bluebird Project Companyhas self-certified with FERC as an EWG.
(z)Flood Hazard Deliverables. Administrative Agent shall have received copies of any required Flood Documents for each parcel which constitutes a portion of the Site and on which an improvement is located.
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(aa)Ownership Diagram. Administrative Agent shall have received an ownership diagram of Borrower that shows each level of ownership from the Project Companies up to the Sponsor as of the Financial Closing Date.
(bb)IndependentEngineer’sDrawdownDeliverables.
(i)The Independent Engineer applicable to the Bluebird Project shall have provided the Administrative Agent with a certificate of such Independent Engineer, in substantiallythe form of ExhibitF-2B(i)atleastthree(3) Business Daysbeforethedate of the requested Borrowing of a Construction Loan or Bridge Loan that is a SOFR Loan or (ii)at least one(1) Business Day before the date of the requested Borrowing of a Construction Loan or Bridge Loan that is a Base Rate Loan.
(ii)TheIndependentEngineerapplicabletotheAmericanBeechProjectshall haveprovidedtheAdministrativeAgent with acertificateofsuch Independent Engineer, in substantially the form of ExhibitF-2B(i)at least three(3) Business Days before the date of the requested Borrowing of a Construction Loan or Bridge Loan that is a SOFR Loanor(ii)atleastone(1)BusinessDaybeforethedateoftherequestedBorrowingofa Construction Loan or Bridge Loan that is a Base Rate Loan.
(iii)The Independent Engineer applicable to the Prairie Project shall have provided the Administrative Agent with a certificate of such Independent Engineer, in substantiallythe form of ExhibitF-2B(i)atleastthree(3) Business Daysbeforethedate of the requested Borrowing of a Construction Loan or Bridge Loan that is a SOFR Loan or (ii)at least one(1) Business Day before the date of the requested Borrowing of a Construction Loan or Bridge Loan that is a Base Rate Loan.
(cc)Available Construction Funds.After taking into consideration the Borrowingbeing requested, the Available Construction Funds shall not be less than the aggregate unpaid amount ofProject Costsestimated bytheBorrowertocauseCompletiontooccurwithrespectto each of the Projects that has not yet achieved Completion, in accordance with all Applicable Laws and the Project Documents, not later than such Project’s applicable Project Completion Date, as certified by the Independent Engineer with respect to each Project.
(dd)Microsoft Notice. The notice required to be delivered to the Power Purchaser pursuanttoSection2.5(a)(ii)oftheAmericanBeechPowerPurchaseAgreementshallhavebeen delivered concurrently with the Financial Closing Date.
(ee)Interconnection Notices. Each notice of collateral assignment required to be delivered under anyInterconnection Agreement shall have been delivered concurrentlywith the Financial Closing Date.
(ff)Beginning of Construction Certificates. Delivery to the Administrative Agent of each Beginning of Construction Certificate, dated as of the Financial Closing Date.
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(gg)EnergyCommunityAdderCertificate.DeliverytotheAdministrativeAgentofthe Prairie Project EnergyCommunityAdder Certificate, dated as of the Financial Closing Date.
Section6.2.Conditions Precedent to Each Construction Loan Borrowing, each Bridge Loan Borrowing and each Upsize Bridge Loan Borrowing.In addition to the conditions set forth in Section6.1(which are required to be satisfied solely in connection with the first BorrowingofConstructionLoans,UpsizeBridgeLoansandBridgeLoans),theobligationofthe Construction Lenders, Upsize Bridge Lenders and the Bridge Lenders to effect or permit any Borrowing of Construction Loans, Upsize Bridge Loans and Bridge Loans, as applicable (other than pursuant to Section2.5(d)), is subject to the prior satisfaction of each of the following applicable conditions (to the extent such conditions are Project specific, with respect to the Project(s) for which a Borrowing is requested) (unless waived in writing by the Administrative Agent with the consent of the Required Lenders):
(a)Noticeof Borrowing; Borrower’s Drawdown Certificate.
(i)The Borrower shall have delivered a Notice of Construction Loan Borrowing and/or Notice of Upsize Bridge Loan Borrowing and/or Notice of Bridge LoanBorrowingtotheAdministrativeAgentinaccordancewiththeproceduresspecified in Section2.1(b), Section2.2(b)or Section2.3(b), as applicable, together with all attachments thereto in form and substance reasonably satisfactory to the Construction Lenders.
(ii)Not less than three (3) Business Days prior to the date of the requested Borrowing, the Borrower shall provide the Administrative Agent and the Independent Engineer with a certificate in substantially the form of Exhibit F-2A, signed by an Authorized Officer of the Borrower, with all applicable attachments (the “Borrowing Date Certificate”); provided that, with respect to the first Borrowing of Construction Loans on the Financial Closing Date, deliveryshall be required on the FinancialClosing Date.
(b)IndependentEngineer’sDrawdownDeliverables.
(i)Not less than three (3) Business Days prior to the date of the requested Borrowing, or such shorter time acceptable to the applicable Independent Engineer to complywith Section6.2(b)(ii), the applicable Independent Engineer shall have reviewed the Borrower’s certificates and supporting invoices related to Project Costs in excess of $500,000, or other evidence of payment and other information referred to in the Borrower’s Borrowing Date Certificate.
(ii)The Independent Engineer shall have provided the Administrative Agent withacertificateofsuchIndependentEngineer,insubstantiallytheformofExhibitF-2B(i)at least three(3) Business Days before the date of the requested Borrowing of a Construction Loan, Upsize Bridge Loan or Bridge Loan that is a SOFR Loan or (ii)at least one(1) Business Daybefore the date of the requested Borrowing of a Construction Loan, Upsize Bridge Loan or Bridge Loan that is a Base Rate Loan.
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(c)Permit Schedule.Delivery to the Administrative Agent of Schedule5.12, as supplemented in accordance with the definition of “Applicable Permit”, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders, and delivery to the Administrative Agent on a monthly basis, at the time construction and operating reports are delivered, of any Permits issued in the prior thirty (30) days.
(d)Available Construction Funds.After taking into consideration the Borrowing being requested, the Available Construction Funds shall not be less than the aggregate unpaid amount ofProject Costsestimated bytheBorrowertocauseCompletiontooccurwithrespectto each of the Projects, in accordance with all Applicable Laws and the Project Documents, not later than each Project’s applicable Project Completion Date, as certified by the Independent Engineer.
(e)Lien Waivers.(i)For each invoice for on-site construction work that creates a mechanics’ or materialmen’s lien under Applicable Law in respect of such Project(s) that is in excess of five hundred thousand Dollars($500,000), the Administrative Agent shall have received a duly executed conditional waiver and release or a lien subordination instrument, in each case effective upon payment, to release or subordinate, as applicable, all mechanics’ and materialmen’s liens in respect of the work covered by the applicable invoice, in a form enforceable under Applicable Law, and (ii)other than Permitted Liens, there has not been filed against, or served upon, the Borrower or the Project Companies any Lien or any notice of or application for any Lien with respect to the Projects.
(f)Representations and Warranties.The representations and warranties of each LoanPartyin this Agreement and theotherCredit Documents to which it is apartyshall betrue and correct in all material respects as of the date of such Credit Event (or, ifstated tohavebeen made on or as of an earlier date, were true and correct in all material respects on or as of such earlier date); provided that, to the extent that any such representations and warranties are qualified by materiality, such representations and warranties are true and correct in all respects on and as of the date of such Credit Event (or, if stated to have been made on or as of an earlier date, were true and correct in all respects on or as of such earlier date).
(g)Default or Event of Default.No Default or Event of Default has occurred and is continuing or would reasonably be expected to result from such Credit Event.
(h)Material Adverse Effect.No Material Adverse Effect has occurred and is continuing or would be expected to result from such Credit Event.
(i)Minimum EquityCommitment.Thetotal EquityContribution shall beequal to or greater than the Minimum Equity Commitment.
(j)Operative Documents.Each Operative Document required to be executed and delivered on or prior to the date of such Borrowing shall be in full force and effect, without materialchangeoramendmentsincetheFinancialClosingDate,exceptaspermittedpursuantto Section 8.13, Section 8.18, or Section 12.20, as applicable.
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(k)Payment of Fees.All amounts then required to be paid by the Borrower to, or deposited by the Borrower with, Administrative Agent or any Lender under the Credit Documents, and all actual taxes and reasonable and documented out-of-pocket fees and costs then due and payable by the Borrower in connection with the execution, delivery, recordation and filing of the documents and instruments required to be filed as a condition precedent in this Section6.2in respect of the requested Borrowing, shall have been paid in full or shall be paid concurrently with, including with the proceeds of, such Borrowing.
(l)Title Policy Update. Other than with respect to the first Borrowing of Loans, (i) prior to any Permitted Disposition described in clause (k) of the definition thereof involving the Bluebird Project, within fortyfive (45) days prior to such Borrowing and (ii) from and after any such Permitted Disposition, within thirty (30) days prior to such Borrowing, Administrative Agent shall have received evidence from the Title Insurer that an updated title search has been conducted and no new documents have been recorded in the official records impacting the applicable Project Site(s) that would constitute a Lien other than a Permitted Lien.
(m)FinancialClosingDate.TheFinancialClosingDateshallhaveoccurred.
(n)CITL; Proposed CITL. The CITL/Proposed CITL Condition shall have been satisfied with respect to the applicable Project.
(o)Tax Equity. To the extent that a Tax Equity Arrangement or Tax CreditTransfer Arrangement (other than a Tax Credit Transfer Agreement (Class A)) is in effectwith respect to a Project, (i) no event has occurred that would preclude any of theapplicable Project Group Members from fulfilling the conditions precedent to the SCFunding Date on or prior to the Project Completion Date, (ii) to the extent that a TaxCredit Transfer Arrangement is in effect with respect to such Project, no event hasoccurredthatwouldpreclude anyofthe applicable ProjectGroupMembersfromfulfillingtheconditionsprecedenttothepaymentdateundertheTaxCreditTransferDocumentsonor prior to the Project Completion Date and (iii) the aggregate capital contributions to bemade by the applicable Tax Equity Investors under the applicable Tax Equity Documentsor the aggregate payments to be made by the applicable Tax Credit Buyers under theapplicable Tax Credit Transfer Documents, as applicable, are reasonably expected to besufficienttorepayalloutstandingBridgeLoansandUpsizeBridgeLoans(togetherwithallBridge Loans and Upsize Bridge Loans expected to be drawn) with respect to theapplicable Project by the applicable Maturity Date.
Section6.3.Conditions Precedent to each LC Credit Event.The obligation of each LC Issuer to consummate any LC Credit Event is subject to delivery by the Borrower to the AdministrativeAgentofacertificatecertifyingthepriororconcurrentsatisfactionofeachofthe following:
(a)Representations and Warranties.The representations and warranties of each LoanPartyin this Agreement and theotherCredit Documents to which it is apartyshall betrue and correct in all material respects as of the date of such LC Credit Event (or, if stated to have been made on or as of an earlier date, were true and correct in all material respects on or as of
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such earlier date); provided that, to the extent that any such representations and warranties are qualified by materiality, such representations and warranties are true and correct in all respects on and as of the date of such LC Credit Event (or, if stated to have been made on or as of an earlier date, were true and correct in all respects on or as of such earlier date).
(b)No Default or Event of Default.No Default or Event of Default shall have occurred and be continuing or would occur as a result of such LC Credit Event.
(c)Application.In respect of a request for the issuance or amendment of a Letter of Credit, the Administrative Agent shall have received a request for such issuance or amendment, as applicable.
Section6.4.No Approval of Work.The making of any Loan, or issuance of any Letter of Credit,hereundershall not bedeemedanapproval oracceptancebytheAdministrativeAgentor the Lenders of any work, labor, supplies, materials or equipment furnished or supplied with respect to any Project.
SECTION7.AFFIRMATIVECOVENANTS.
Borrower covenants and agrees that so long as this Agreement is in effect, unless the Required Lenders (or Administrative Agent with consent from the Required Lenders) waive compliance in writing, it will comply with each of the following covenants:
Section7.1.Compliance with Applicable Laws and Governmental Approvals.The Borrower shall, and shall cause each Project Group Member to, comply (i) in all material respectswithApplicableLaws(includingapplicableEnvironmentalLawsandERISA),(ii)inall materialrespectswithMaterialGovernmentalApprovalsand(iii)withallapplicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.The Borrower shall, and shallcauseeachProjectGroupMembertoprocure,maintainandcomplyinallmaterialrespects, or cause to be procured, maintained and complied with in all material respects, all Applicable Permits required for the Projects or any part thereof.The Borrower shall provide the Administrative Agent (acting for itself and on behalf of the Lenders) with any information reasonablyrequested bythe Administrative Agent regarding the Borrower or anyProject Group Member as necessary for the Administrative Agent and Lenders to comply with all applicable Anti-MoneyLaundering Laws and Sanctions.The Borrower shall, and shall cause each Project Group Member to, continue to implement and maintain, or remain subject to, policies and procedures designed to promote and achieve compliance with applicableAnti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.
Section7.2.Insurance.The Borrowershallmaintain or causeto bemaintained, without cost to the Collateral Agent or the Secured Parties, the type of insurance required pursuant to the Insurance Requirements attached hereto as Schedule7.2, in the amount and on the terms and conditions specified therein, with financially sound and reputable insurers.
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Section 7.3. Taxes.
(a)The Borrower shall, and shall cause each Project Group Member to, pay and discharge all material Taxes owed by it before such Taxes become delinquent, except those subject to a Good-Faith Contest.Each Project Group Member shall file all income and all materialnon-incomeTax Returnsrequiredtobefiledinanyjurisdiction.Borrowershallremain a “disregarded entity”, and shall cause each other Project Group Member to remain a “disregarded entity”(or with respectto each HoldCo, a“disregarded entity”orapartnership),in each case, for U.S. federal income tax purposes.
(b)The Borrower (or if it is a disregarded entity, its owner for U.S. federal income tax purposes) shall, and shall cause each other Project Group Member (or if it is a disregarded entity, its owner for U.S. federal income tax purposes) to, remain a U.S. Person not subject to withholding under Section 1445 andSection 1446 of theCode (otherthan anysuch withholding in respect of a Class A Member).
(c)The Borrower shall ensure that (i) each Project will at all times be located in its entirety in the United States; (ii) no assets, property or equipment included in a Project (other than deminimis amounts)willhavebeenused byanyPersonpriortobeingplaced inservicefor U.S. federal income taxpurposes as part of such Project (other than in connection with thestart-up, testing and commissioning of such Project); and (iii) no portion of any Project will become“tax-exemptuseproperty”withinthemeaningofSection168(h)oftheCode(otherthan as a result of any Tax Equity Investor’s ownership in the applicable Holdco).
(d)In the event any HoldCo receives a notice of final partnership adjustment under Section 6231(a)(3) of the Code that would, with the passing of time, result in an “imputed underpayment” (as that term is used in Section 6225 of the Code) imposed on such HoldCo, Borrower shall, or shall cause such HoldCo within thirty(30) days after the date of such notice, to(x)timelyelectpursuanttoSection6226oftheCodetomakeinapplicabletosuchHoldCothe requirements in Section 6225 of the Code to pay the “imputed underpayment” as that term is used in that section, (y) comply with all of the requirements and procedures required in connection with such election, and (z) provide evidence of such election to Administrative Agent; provided that no such election shall be required, if, with respect to a HoldCo, (i) the Borrower confirms in writing that the member responsible for the associated underpayment has agreed to make a capital contribution to the HoldCo in the full amount of the imputed underpayment and (ii) the Collateral Agent is satisfied with such member’s credit (taking into account any credit support offered at the time).
(e)To the extent a Project is not “placed in service” for U.S. federal income tax purposes by December 31, 2025, and the Beginning of Construction Requirements are not otherwise satisfied, the Borrower shall ensure (or cause each applicable HoldCo to ensure) that such Project complies with the prevailing wage and apprenticeship requirements set forth in Sections 48(a)(10) and 48(a)(11) of the Code, including by making any correction and penalty payments described in Sections 48(a)(10) and 48(a)(11) of the Code, if applicable; provided, that, for any Project not “placed in service” for U.S. federal income tax purposes by December 31,2025,theBeginningofConstructionRequirementswillbedeemedtonothavebeensatisfied
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unless the Borrower delivers to the Administrative Agent and each of the Required Lenders by December 31, 2025, a legal opinion of nationally recognized tax counsel selected by Borrower and reasonably acceptable to the Administrative Agent that the Beginning of Construction Requirements “should” be satisfied.
Section7.4.Maintenance of Existence.Except for Permitted TE/TC Reorganizations or as otherwise permitted by Section8.4, each Project Group Member shall preserve and maintain in full force and effect (a)its legal existence under the laws of the State of its formation or incorporation (as applicable), (b)all rights, privileges and franchises necessary in the normal conduct of its business and (c)all rights, privileges and franchises necessary to be maintained and preserved by it for the ownership, development, construction, financing, operation and maintenance of anyProject andperform andobserve all ofits respectivematerial covenants and obligations contained in each Operative Document to which it is a party.
Section7.5.Use of Proceeds and Project Revenues.The proceeds of the ConstructionLoans shall be used solely to pay Project Costs (including any budgeted contingencies) and the Closing Date Distribution Payment, and the proceeds of the Bridge Loans and Upsize Bridge Loans shall be used solely to pay Project Costs (including any budgeted contingencies) and the Closing Date Distribution Payment.The proceeds of any LC Loan shall be used solely to pay ReimbursementObligationsinrespectofLettersofCreditasprovidedinSection2.4(c).Letters ofCreditshallbeissuedsolelytosatisfyaProjectGroupMember’screditsupportobligationsin connection with any of the Projects.
Section7.6.Books andRecords; Inspection.
(a)EachProject GroupMembershall maintainseparatebooks of record andaccount in conformity with, in all material respects, GAAP.Each Project Group Member shall keep books, records and accounts which, in reasonable detail, accurately reflect, in all material respects, alltransactions anddispositions ofassets.NoProjectGroupMembershallcommingle its funds with those of any other Affiliate who is not a Project Group Member.Each Project Group Member shall cause the liabilities of such Project Group Member to be readily distinguishable from the liabilities of each other Project Group Member and any other Affiliate of anyProject Group Member.Each Project GroupMembershall conduct itsbusiness solelyin its own name in a manner not misleading to otherPersons as to its identityand shall correct any known misunderstanding regarding its separate identity.Each Project Group Member shall obtain proper authorization from members, directors and managers if and to the extent required by its limited liability company agreement for all of its limited liability company actions.Each ProjectGroupMembershallcomplyinallmaterialrespectswithanyseparatenessprovisionsset forth in its Organizational Documents.Notwithstanding the foregoing, de minimis breaches of this Section7.6(a)that (a)are not in the aggregate, misleading as to the identity of a Project GroupMember,(b)donotcallintoquestiontheseparatenessasalegalentityofaProjectGroup Member from its affiliated entities, and (c)otherwise do not undermine the purpose intended to be served by the requirements of this Section7.6(a), shall not be deemed a breach of thisSection7.6(a).
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(b)The Project Group Members shall, upon reasonable prior notice, permit and arrangefortheLendersandanyagentsorrepresentativesoftheLenders,astheLendersmay desireduringnormalbusinesshoursandsubjecttothetermsandconditionssetforthin Section12.33, to: (i)conduct reasonable inspections and examinations of anyproperties andthe books and records of the Project Group Members and, during any period in which a Default or EventofDefaulthasoccurredandiscontinuing,makecopiesofsuchbooksandrecords;and (ii)discuss the affairs, finances and accounts of the Project Group Members with the principal officers of the Project Group Members (which officers the Project Group Members shall make reasonablyavailable) and their respective auditors; provided that so long as no Default or Event of Default hasoccurredand iscontinuing,thereshall benomorethanone(1)inspection ofeach Site in any calendar year and one(1) inspection of the offices of the Project Group Members (collectively) in any calendar year at the Borrower’s expense; provided, further, that any inspection conducted after the occurrence and during the continuance of a Default or Event of Default shall be at the Borrower’s expense.
(c)The Independent Engineer shall have the right to visit and inspect the Projects from time to time.For the avoidance of doubt, the Independent Engineer shall have the right to witness from time to time the construction, installation, testing, start-up, commissioning and operation of any Project.
Section7.7.PreservationofRights;FurtherAssurances.
(a)The Borrower shall diligently preserve, protect, enforce, pursue and defend, and causeeachProjectGroupMembertopreserve,protect,enforce,pursueanddefend,itsrespective material rights under each and every Project Document and, prior to the applicable SC Funding DateorfinalPaymentDate,anythen-effectiveTaxEquityDocument,TCStructureDocumentor Tax Credit Transfer Document, including, if appropriate in the reasonable business judgment of such Project Group Member, prosecution of suits to enforce any right of such Project Group Member thereunder and enforcement of any claims with respect thereto, in each case to the extent deemed commercially reasonable by the Borrower.
(b)The Borrower shall, at its own cost and expense, cause to be taken, executed, acknowledgedanddeliveredallsuchfurtheracts,documents,informationandassurancesasmay be necessaryin order to carryout the intent and purposes of this Agreement, the other Operative Documentsand thetransactionscontemplatedherebyandthereby,includingsuchinformationas may be reasonably requested by any Lender from time to time.The Borrower shall take, or cause to be taken, all action required to maintain and preserve the Liens created by the Security Documents and the priority and perfection of such Liens.Further, the Borrower shall take, or cause to betaken, all action required to maintain (i) theapplicableProject Company’s interest in theSitespursuanttotheRealPropertyDocuments,subjectonlytoPermittedLiens,and(ii)good and valid title to, or leasehold or easement interests in, all of its other material properties and assets, subject to Permitted Liens and dispositions not prohibited hereby.The Borrower shall from time to time execute or cause to be executed any and all further instruments (including financingstatements,continuationstatementsandsimilarstatementswithrespecttoanySecurity
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Document) reasonably requested by the Collateral Agent (at the written direction of the Administrative Agent) for such purposes.
(c)If at anytimeprior tothedateaProjectCompanyisreleasedfromitsobligations under the Security Agreement pursuant to Section 2.10(b) thereof, such Project Company shall acquire any material fee, leasehold, easement or other interest in real property other than the applicable Site that is to be utilized in connection with the applicable Project, promptly followingsuchacquisition, theBorrowershallcausetheapplicableProjectCompanytoexecute, deliver and record an amendment to the applicable Mortgage, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, subjecting such fee, leasehold, easement or other interest in real propertyto the Lien and securityinterest created by such Mortgage.
(d)IntheeventthattheBorrowerdirectlyorindirectlyformsoracquiresanyHoldCo, Class B Member or other Subsidiary, the Borrower shall promptly cause such HoldCo, Class B Member or other Subsidiaryto becomeaguarantorand grantor under theSecurityAgreement by executing and delivering a joinder to the Security Agreement in substantially the form attached thereto and in accordance with the terms thereof.
Section7.8.FinancialStatements;ReportingRequirements.TheBorrowershall:
(a)deliver (or cause to be delivered) to the Administrative Agent within ninety (90) days aftertheendofeachapplicablefiscal year(commencingwithfiscal year2024),theaudited consolidated balance sheet and related statements of operations, stockholders’ (or members’ or partners’) equity and cash flows of each Borrower as of the end of and for such fiscal year, setting forth in comparative form the figures for the previous fiscal year (to the extent such figuresfromthepreviousfiscal yearweredeliveredunderthis Section7.8(a)),allreportedonby an independent public accountant of recognizednationalstanding (without a “going concern”or like qualification or exception and without any qualification or exception as to the scope of the auditonwhichsuchopinionisbased,otherthananyexceptionwithrespectto,orresultingfrom, an upcoming maturity date of Indebtedness that is scheduled to occur within one(1) year from the time such opinion is delivered) to the effect that such consolidated financial statements present fairly in all material respects the financial position and results of operations, stockholders’ (or members’ or partners’) equity and cash flows of such Borrower in accordance with GAAP;
(b)deliver(orcausetobedelivered)totheAdministrativeAgentwithinforty-five (45) days after the end of each of the first three(3) fiscal quarters of each applicable fiscal year (commencing with the first full fiscal quarter following the Financial Closing Date), the unaudited consolidated balance sheet and related statements of operations, stockholders’ (or members’ or partners’) equity and cash flows of each Borrower for such fiscal quarter in accordance with GAAP setting forth in comparative form the figures for (or, in the case of the balancesheet,asoftheendof)thecorrespondingperiodorperiodsofthepreviousfiscalyear(to theextentsuchfiguresfromthepreviousfiscalyearweredeliveredunderthisSection7.8(b)),all certified by an Authorized Officer of such Borrower as presenting fairly in all material respects the financial position and results of operations, stockholders’ (or members’ or partners’) equity
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and cash flows of the Borrower in accordance with GAAP, subject to normal year-end audit adjustments and the absence of footnotes;
(c)deliver (or cause to be delivered) to the Administrative Agent, concurrently with any delivery of any financial statements under clause(a)or (b)of this Section 7.8, a certificate executedbyanAuthorizedOfficeroftheBorrower(i)certifyingastowhetheraDefaultorEvent of Default has occurred that is continuing and, if a Default or Event of Default has occurred and is continuing, specifying the details thereof and any action taken or proposed to be taken with respect thereto and (ii)stating whether any change in GAAP or in the application thereof has occurred since the date of the most recentlydelivered audited financial statements which results inachangetothefinancialstatementsaccompanyingsuchcertificateand,ifanysuchchangehas occurred, specifying the effect of such change on the financial statements accompanying such certificate;
(d)during the period commencing on the Financial Closing Date and ending on the date Completion of each Project occurs, deliver to the Administrative Agent within thirty(30) days after the end of each month, a report for each Project in substantially the form required by theEPCContractforsuchProject(asrevisedorsupplementedtoincludetheitemsinclauses(ii) and(iii)),describinginreasonabledetail(i)theprogressoftheconstructionofsuchProjectsince the last prior report hereunder, (ii) the actual constructiontimeline compared to the construction schedule and anycauses of delays, (iii) Project Costs spent in comparison tothebudget and any causes of overruns, together with copies of all Applicable Permits, and any material amendments, supplements orothermodifications to anyApplicablePermit previouslydelivered, received byanyProject Group Member since the such prior construction report; and
(e)during the period commencing on the date Completion of each Project occurs, delivertotheAdministrativeAgentwithinthirty(30)daysaftertheendofeachcalendarquarter, a report for each Project in form and substance reasonably acceptable to the Administrative Agent,describinginreasonabledetailtheoperationofsuchProjectsincethelastreportdelivered hereunder, together with copies of all newly obtained Applicable Permits, and any material amendments, supplements or other modifications to anyApplicable Permit previouslydelivered, receivedbyanyProjectGroupMembersincethelastpriorconstructionreportoroperatingreport delivered hereunder.
Section7.9.Notices of Material Events.The Borrower will furnish (or caused to be furnished) to the Administrative Agent written notice, which shall be accompanied by a statement of an Authorized Officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto (if any), of the following within five(5) Business Days after the Borrower obtains Knowledge thereof (or such other time period set forth below):
(a)the occurrence of anyevent or condition which constitutes (i)a Default or (ii)an Event of Default;
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(b)any material filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against the Borrower or any Project Group Member;
(c)anymaterialactualorthreatened(inwriting)EnvironmentalClaimbyanyPerson against, or with respect to the activities of, the Borrower, any Project Group Member or any Project and any material violation or alleged violation of or material non-compliance with any Environmental Laws or any Governmental Approvals;
(d)theoccurrenceof,ortheexecutionofanyagreementprovidingfor,anyChangein Control or transfer of direct ownership interest in the Borrower (other than pursuant to a Tax Equity Arrangement);
(e)theexistenceofanymaterialERISAEvent;
(f)the occurrence of any other development that has resulted in, or the Borrower believes in good faith would result in, a Material Adverse Effect;
(g)any dispute, litigation, action or proceeding pending or, to the Knowledge of the Borrower, threatened in writing against any Project Group Member (including by any Governmental Authority) and (i) involving claims against any Project Group Member or in connectionwithanyProject(x)inexcessofonemillionDollars($1,000,000)individuallyortwo million Dollars ($2,000,000) in the aggregate outstanding in any fiscal year or (y) otherwise seeking to materially impair, restrain, prohibit, suspend or invalidate any of the Project Documents, any of the Credit Documents or any of the Applicable Permits or (ii) involving any material injunctive, specific performance or other equitable relief or any admission of any violation of law, in each case, that, if obtained, would result in anycurtailment, forced outage or impairingdeliveries of electrical production from anyProject that would reasonablybe expected to last more than forty-eight (48) consecutive hours, such notice to include copies of all papers filed in such litigation, action or proceeding and to be given monthly if any such papers have been filed since the last notice given;
(h)any Casualty Event, Event of Eminent Domain or other event in which losses or damages in connection with any Project exceed one million Dollars ($1,000,000) for any one event;
(i)any written notice of cancellation or material change in the terms, coverages or amounts of any insurance described in Section 7.2;
(j)any termination, notice of event of default, notice of force majeure or other material notice given or received byanyProject Group Member under anyProject Document;
(k)a copy of (i) the executed “Substantial Completion Certificate” for each Project under and as defined in the applicable EPC Contract and (ii) a copy of the notice of the actual Commercial Operation Date for each Project (as defined in the applicable Power Purchase Agreement);
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(l)any written notice or legal process given to any Project Group Member (but not the public) from FERC, any State PUC, NERC or under the Interconnection Agreements that could reasonably be expected to materially and adversely affect any Project Company’s EWG status or MBR Authority, or materially and adverselyaffect the abilityof the applicable Project Company to sell electricity from its Project;
(m)priortoCompletionofaProject,anyamendment,modification,waiverorchange order to any Project Document;
(n)prior to the Completion of a Project, any event or circumstance that could reasonably be expected to result in Completion of such Project occurring after such Project’s respective Project Completion Date;
(o)after Completion of a Project, the occurrence of any event or circumstance that could reasonably be expected to cause such Project’s Operating Costs in any fiscal year to exceed, by more than ten percent (10%) the Operating Costs (excluding taxes and the costs of required insurance) for such Project set forth in the prior year’s Annual Operating Budget for suchProject,orwithrespecttothefirstfullyearfollowingSubstantialCompletion,bymorethan ten percent (10%) the Operating Costs (excluding taxes and the costs of required insurance) for such Project projected for such year in the Base Case Model; and
(p)promptly following (i) a Tax Equity Closing Date, copies of the executed Tax Equity Documents, applicable Interparty Agreement and applicable Funding Date Guaranty, if any, (ii) a TC Structure Effective Date, copies of the executed TC Structure Documents, applicable Interparty Agreement and applicable Funding Date Guaranty, if any and (ii) a Tax Credit Transfer Effective Date, copies of executed Tax Credit Transfer Documents.
Section7.10.Delivery of Certain Documents.The Borrower will furnish (or cause to be furnished) to the Administrative Agent the following within the applicable time period set forth below:
(a)promptly, but in no event later than thirty(30) days, after the receipt or delivery thereof by any Project Group Member, copies of (i) Additional Project Documents required and obtained or entered into after the Financial Closing Date; (ii)any amendment, supplement or other modification to, or waiver of, any Project Document; (iii)all material notices relating to any Project received by any Project Group Member from anyGovernmental Authority; and (iv) any recently issued Permits, to be delivered at the time construction and operating reports are delivered.For the avoidance of doubt, this paragraph(a)does not require the Borrower to deliver (or cause to be delivered) amendments, supplements ormodifications to Permits that are not Applicable Permits (whether or not listed on Schedule5.12to this Agreement), communications to or from a Governmental Authority, materials submitted to a Governmental AuthoritytocomplywithanApplicablePermit,communicationswithGovernmentalAuthorities for thepurpose of confirmingcompliance, orothersimilarcorrespondencewith aGovernmental Authority to the extent that such communications, submissions or correspondence are not an amendment, modification or waiver of the requirements of an Applicable Permit; provided that,
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if reasonably requested by Lenders, the Borrower shall provide (or cause to be provided) such information within thirty (30) days of receipt of Lenders’ request;
(b)use commercially reasonable efforts to cause each counterparty to an Additional Project Document (other than IRB Documents) entered into by the Borrower to execute and deliver to Administrative Agent a Consent in respect of such Additional Project Document;
(c)promptly, but in no event later than five (5) Business Days, after receipt of a written request from any Lender, copies of any report provided by a Project Group Member in satisfaction of a condition precedent to a Tax EquityClosing Date, a capital contributionbyany Tax Equity Investor under any Tax Equity Documents or as required to be delivered under TC Structure Documents or Tax Credit Transfer Documents; and
(d)concurrently with or promptly following the execution of each HoldCoLLCA, Opco Borrower shall deliver to Collateral Agent original physical membershipcertificates or other instruments evidencing (i) the Opco Borrower’s ownership of onehundred percent(100%) of the ownership interests in the applicable Class BMember and(ii) the applicable Class B Member’s ownership of one hundred percent (100%) of theapplicableClassB Membership Interests (as defined in the applicable HoldCo LLCA) in theapplicableHoldCo, in form and substance reasonably acceptable to the Lenders andaccompanied byduly executed instruments of transfer or assignment and irrevocableproxies with respectto such membership interests;
(e)(d)concurrentlywith or promptlyfollowing the execution of eachassignment ofthemembershipinterestsinaProjectCompanyfromtheDevcoBorrowertotheapplicableHoldCoLLCA, the Opco Borrower shall deliver to the Collateral Agent original physical membership certificates or other instruments evidencing (i) the Opco Borrower’sapplicableHoldCo’sownership of one hundred percent (100%) of the ownership interests in the applicable Class B Member and (ii) the applicable Class B Member’s ownership of one hundred percent(100%) of the applicable Class B Membership Interests (as defined in the applicable HoldCoLLCA)intheapplicableHoldCoProjectCompany,informandsubstancereasonablyacceptable to the Lenders and accompanied by duly executed instruments of transfer or assignment and irrevocable proxies with respect to such membership interests;, and, following receipt of suchcertificates or other instruments, theCollateral Agent shall have returned to the Devco Borrower or destroyed (at the Devco Borrower’s sole discretion) the original physical membership certificates, together with the duly executed instruments of transfer or assignment and irrevocable proxies, with respect to the Devco Borrower’s one hundred percent (100%) of the ownership interests in the applicable Project Company.
Section 7.11.Electronic Delivery.Financial statements, opinions of independent certified public accountants, notices, documents, agreements, other information and Officer’s Certificates thatarerequiredtobedeliveredbytheBorrowerpursuanttoSection 7.8,Section 7.9, Section7.10andSection8.7shallbedeemedtohavebeendeliveredifthedocumentsrequiredto be delivered are: (a) delivered to the Administrative Agent by e-mail; (b) timelyposted byor on behalfoftheBorroweronaSharePoint,IntralinksorDebtdomain(orequivalent)website;or (c)made available on its homepage on theinternet; provided,however, that upon request of the
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Administrative Agent to receive paper copies of such forms, financial statements and Officer’s Certificates or to receive them by e-mail, the Borrower will promptly deliver such paper copies or deliver them bye-mail, as the case maybe, to the Administrative Agent.
Section7.12.BeneficialOwnership Certification.The Borrowershall furnishto anyLender, promptlyupontherequestofsuchLenderortheAdministrativeAgent onsuchLender’sbehalf, (a)anupdatedBeneficialOwnershipCertificationwithrespecttoitselforanyLoanPartyor (b)to the extent applicable, a certification that there has been no change in facts which would render a previously delivered Beneficial Ownership Certification to be untrue, incomplete or misleading.
Section7.13.Regulatory Status.The Borrower shall cause each Project Company to take or cause to be taken all necessary actions and make all necessary filings so that such Project Company(a)obtainsEWGstatusonorpriortothedateelectricenergy(includingtestenergy)is first generated by its respective Project and maintains its status as an EWG thereafter (to the extent consistent with Applicable Law); provided, however, that the Project Companies may obtain an exemption from regulation under PUHCA equivalent to that provided byEWG status and provide an opinion of counsel reasonably satisfactory to Administrative Agent and the Required Lenders that EWG status is no longer required, and (b) obtains MBR Authority on or priortothedate electric energy(includingtest energy)is firstgeneratedbyitsrespectiveProject and maintains its MBR Authority in full force and effect thereafter.
Section7.14.Operation of Project.The Borrower shall cause each Project Company to operate and maintain the Project owned by such Project Company, or cause such Project to be operated and maintained, in all material respects in accordance with Prudent IndustryPractices, theapplicableAnnualOperatingBudget,allApplicableLawsandapplicablerequirementsofthe applicable Operative Documents.
Section7.15.Construction of Project; Completion.The Borrower shall make or cause to be made all contracts and do or cause to be done all things necessary for each Project to be constructed, expanded, improved and equipped and to achieve Completion on or before each Project’srespectiveProjectCompletionDate,inaccordancewithPrudent IndustryPractices,the applicable Operative Documents, the applicable Project Budget and the applicable Project Schedule.
Section7.16.SpecialProceeds.
(a)Until each Project’s HoldCo Effective Date, if any Project Group Member receives any amount of Loss Proceeds, the Net Cash Proceeds thereof shall be deposited in the Loss Proceeds Account in accordance with the Depositary Agreement. From and after each Project’s HoldCo Effective Date, if any Project Group Member receives any amount of Loss Proceeds, the Net Cash Proceeds thereof shall be deposited in the Revenue Account.
(i)In the event that the aggregate Loss Proceeds in respect of any Casualty Event or Event of Eminent Domain is less than or equal to five million Dollars ($5,000,000), the Net Cash Proceeds of such amounts shall be made available to the
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applicableProjectCompanyfromtimetotimeattherequestoftheBorrowerandshallbe applied by such Project Company to the Restoration of the applicable Project (including to reimburse any Affiliate of the Borrower for payments made by such Affiliate with respect to such Restoration in advance of receipt by a Project Group Member of the applicable Net Cash Proceeds), and any amount remaining with respect to such event following such Restoration shall be used to make a prepayment of Loans pursuant to Section 2.8(b)(i)(1).
(ii)(A) In the event that the aggregate Loss Proceeds in respect of any Casualty Event or Event of Eminent Domain exceed five million Dollars ($5,000,000), the amounts to be made available to the applicableProject Companyto be applied to the Restoration of the applicable Project (including to reimburse any Affiliate of the Borrower for payments made by such Affiliate with respect to such Restoration in advanceofreceiptbyaProjectGroupMemberoftheapplicableNetCashProceeds)shall only be remitted to such Project Company following prior satisfaction of the following conditions:deliverytotheCollateralAgentandtheLendersofacertificate,signedbythe Independent Engineer stating that (1) the Borrower’s plans and specifications and schedule for the Restoration are technically feasible and (2) the amounts attributable to such event on deposit in the Loss Proceeds Account or Revenue Account are sufficient (together with all other monies reasonably expected to be available to the Borrower) to Restore the applicable Project and pay all applicable Project Costs (including any reimbursementstoAffiliatesoftheBorrower),OperatingCostsandDebtService;and (B) ifsuch Loss Proceeds inrespect ofsuch CasualtyEvent orEvent ofEminent Domain exceedtwentymillionDollars($20,000,000),theamountsattributabletosucheventtobe made available to the applicable Project Company from the Loss Proceeds Account or Revenue Account to be applied to the Restoration of the applicable Project (including to reimburseanyAffiliateoftheBorrowerforpaymentsmadebysuchAffiliatewithrespect to such Restoration in advance of receipt by a Project Group Member of the applicable Net Cash Proceeds) shall only be remitted to such Project Company following receipt of thepriorwrittenconsentoftheRequiredLenders.Anyamountremainingwithrespectto such event in a Borrower Account following such Restoration shall be used to make a prepayment of Loans pursuant to Section 2.8(b)(i)(1).
(iii)In the caseofthe foregoingclause(i)or clause (ii)(A),the Borrowershall have one hundred eighty(180) days to reinvest such Net Cash Proceeds before the Borrower is required to make a prepayment of Loans pursuant to Section 2.8(b)(i)(1).
(b)Notwithstanding anything in this Agreement to the contrary, following the SC Funding Date with respect to aProject, if anyProject GroupMember receives (i) anyamount of LossProceedsor(ii)anyamountofAssetDispositionProceeds,theBorrowershallbepermitted to cause the applicable Class B Member, applicable HoldCo and applicableProjectCompanyto addresstheunderlyingcircumstancesgivingrisetotheapplicableprecedingclause(s)(i)and(ii)in accordance with and manage related cash as required bythe applicable HoldCo LLCA.
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Section7.17.HedgingRequirements.
(a)The Opco Borrower shall, within ten (10) Business Days after the Financial Closing Date (as maybe extended with the written consent of the Administrative Agent byup to five (5) additional Business Days), enter into (including by way of assignment, transfer, novation, conversion or amendment) and maintain in full force and effect through the Maturity Date, one or more transactions under one or more Permitted Hedging Agreements for the purpose of mitigating the Borrower’s exposure to interest rate risk in connection with the Loans projectedtobeoutstandingasoftheMaturityDateasreflectedintheBaseCaseModeldelivered on the Financial Closing Date, subject to the termination of any portion of such transactions undersuchPermittedHedgingAgreementsinconnectionwithaprepaymentaspermittedherein; provided, that the aggregate notional amounts of such transactions shall correspond to at least 75% but no more than 105% of the aggregate principal amount of loans projected to be outstandingoneachsuchdateinaccordancewiththeBaseCaseModelduringatheoretical twenty(20)yearamortizationperiodoftheloansbeginningontheprojectedBack-LeverageDate for each Project.Each Permitted HedgingAgreement shall be in form and substance reasonably satisfactory to the applicable Permitted Hedging Counterpartyand the Opco Borrower.
(b)The obligations of the Opco Borrower under each Permitted HedgingAgreement between the Opco Borrower and each Permitted Hedging Counterparty shall be secured at all times by the Security Documents, and shall rank pari passu with the Obligations of the Opco Borrower in respect of the Loans.
Section 7.18.Annual Operating Budget.
(a)Not less than thirty (30) days in advance of the beginning of each calendar year, the Borrower shall adopt and furnish to the Administrative Agent and the Lenders proposed Annual Operating Budgets for the Projects for such ensuing calendar year. If, for any year followingthefirstfullyear,suchproposedAnnualOperatingBudgetdoesnotexceedtenpercent (10%)oftheOperatingCosts(excludingtaxesandthecostsofrequiredinsurance)assetforthin the prior year’s Annual Operating Budget (or any agreed modification thereto thereafter), such proposed Annual Operating Budget shall be deemed to be the approved Annual Operating Budget for such Project for such ensuing calendar year. Otherwise, concurrently with the delivery of any such proposed Annual Operating Budget to the Lenders, the Borrower shall deliver to each Lender a comparison of the costs in such proposed Annual Operating Budgetwith the costs set forth in the respective Annual Operating Budget for the current calendar year and an explanation of thereasons foranymaterialincreaseordecreaseinanycategory,andsuch proposed Annual Operating Budget will not be adopted without the prior written approval of the Required Lenders, not to be unreasonably withheld or delayed. If such proposed Annual Operating Budget is not approved (or deemed approved) by the Required Lenders within thirty (30) days after receipt thereof, the Borrower shall prepare (or cause to be prepared) a revised proposed Annual Operating Budget, which shall be submitted to the Required Lenders for their review and approval in accordance with this Section7.18(a). Until the proposed Annual Operating Budget for any such Project is approved as provided herein for a relevant calendar year,theAnnualOperatingBudgetforsuchProjectforanyyearshallbeonehundredtenpercent
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(110%) of the Operating Costs (excluding taxes and the costs of required insurance) of such Projectsetforthintheprioryear’sAnnualOperatingBudget(includinganyagreedmodification thereto) plus, in any such case, amounts required by Applicable Law to be paid or to ensure compliance with Section7.2. Copies of each adopted Annual Operating Budget shall be furnished to the Administrative Agent and the Lenders upon its adoption.
(b)If,inaccordancewiththeprovisionsofanyHoldCoLLCA,theBorroweramends anyAnnual OperatingBudget afterdeliveringsuch Annual OperatingBudgetpursuant to clause (a), which amendment shall require the prior written consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed), the Borrower shall promptly deliver such amended Annual Operating Budget to the Administrative Agent and the Lenders.
(c)The Borrower shall operate and maintain the Projects in accordance with the adopted Annual Operating Budgets, except in the case of emergency repairs or conditions that present an imminent hazardous condition or threat to the safety of persons or property and the scopeoftheactiontakenwasnecessarytopreventormitigatesuchhazardousconditionand threat to such persons and property; provided, however, that anyAnnual Operating Budget may be amended with Required Lenders’ prior written consent (which shall not be unreasonably withheld, conditioned or delayed), and in such event, the Borrower shall operate and maintain the applicable Project within such Annual Operating Budget as so amended.
Section7.19.Event of Eminent Domain.If an Event of Eminent Domain shall occur with respect to any of the Collateral, the Borrower shall, and shall cause each other Project Group Member to, (a) use commercially reasonable efforts to diligently pursue its rights to compensation against the relevant Governmental Authorityin respect of such Event of Eminent Domain, (b)not, without theprior written consent of Administrative Agent, which consent shall not be unreasonably withheld, conditioned or delayed, compromise or settle any material claim against such Governmental Authority in respect of such Event of Eminent Domain; provided, that the Borrower shall not be required to obtain written consent of the Required Lenders to compromise or settle any claim (irrespective of the amount thereof) resulting from an Event of Eminent Domain if the Borrower has used commercially reasonable efforts to maximize the value ofsuchsettlement orcompromission to theapplicableProjectGroupMember,and(c)pay or apply all Net Cash Proceeds for application in accordance with Section7.16hereof and the Depositary Agreement, as applicable.Borrower consents to the participation of Administrative Agent in any proceedings resulting from an Event of Eminent Domain, and the Borrower shall from time to time deliver to Administrative Agent all documents and instruments reasonably requested byit topermit suchparticipation.Notwithstandinganythinginthis Section7.19to the contrary, from and after the HoldCo Effective Date with respect to a Project, to the extent the applicable HoldCo LLCA conflicts with this Section7.19, the Borrower shall manage related cash (or cause the related cash to be managed) as required bythe applicable HoldCo LLCA.
Section7.20.EquatorPrinciples.TheBorrowershallcomplyinallmaterialrespectswiththe Equator Principles.
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Section7.21.TCStructureDocuments.
(a)To the extent no Tax Equity Arrangement has yet been executed in connection with a Project, then no later than sixty (60) days prior to the Mechanical Completion Date for such Project (in each case, such date, the “TC Structure Deadline”), but subject to the Lender reviewandconsentrightssetforthinclause(b)of this Section 7.21,theBorrower,inconnection with each such Project (as applicable), shall cause to be executed (A) an equity capital contribution agreement or similar tax equity commitment (which for the avoidance of doubtmay be documented in the applicable HoldCo LLCA) (the “TC ECCA”) between the applicable Class B Member and a Class A Member providing for the issuance to the Class A Member of “Class A” membership interests in the applicable HoldCo, (B) a HoldCo LLCA, which shall provide, inter alia, for the tax allocations and cash distributions to the applicable Class A Member and applicable Class B Member and (C) a contribution agreement, an assignment agreement, membership interest purchase agreement, distribution agreement,development and purchaseagreement or similar agreement (such agreement together with the TC ECCA, the HoldCo LLCA and/or any other documentation (including any such assignment agreement, contribution agreement, distribution agreement or similar agreement) pursuant to whichthetransactionsinthisclause(a)maybeeffectuatedwithrespecttoaparticularProject,as applicable, the “TC Structure Documents”), pursuant to which (x) the applicable HoldCo will acquire one hundred percent (100%) of the direct Equity Interests in the relevant Project Companynolaterthan theTCStructureDeadlineand(y)the“Class A”membershipinterests in the applicable HoldCo shall be issued to such Class A Member.The date on which the TC Structure Documents with respectto aProjectareexecutedinaccordanceherewithisreferredto herein as such Project’s “TC Structure Effective Date”.
(b)Not less than fifteen (15) Business Days prior to a Project’s proposed TC Structure Effective Date, the Borrower shall provide materially progressed drafts of such Project’s TC Structure Documents to the Administrative Agent (fordistributiontothe Lenders), and no Project Group Member shall enter into any TC Structure Document without the prior written consent of each of the Lenders (such consent not to be unreasonably withheld, conditioned or delayed); provided that, in connection with the granting of any such consent by the Lenders, the Class A Member proposed to be party to any TC Structure Document shall be reasonably acceptable to the Lenders and the Lenders shall have satisfactorily completed their respective “know-your-customer” requirements in respect of such Class A Member. Pending receipt of the requisite approval by all Lenders, to the extent that Borrower has complied with this Section 7.21, the Borrower’sobligations under clause (a)shall betolled for up tothirty(30) days.
(c)Subject to the requirements of Section 7.21(b), on a Project’s TC Structure EffectiveDate,theBorrowershalldelivertotheAdministrativeAgenttrue,completeandcorrect executed copies of the TC Structure Documents for such Project, each of which shall be in full force and effect, as certified by the Borrower.
(d)OnaProject’sTCStructureEffectiveDate,thepartiesheretoagreetoconsiderin good faith, and to execute, any amendments to the Credit Documents reasonably necessary to
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facilitatetheTCStructureDocumentsofsuchProjectandthetransactionscontemplatedtherein, all such amendments to be in form and substance reasonably satisfactory to the Administrative Agent, the Collateral Agent and each Lender.
(e)If requested by the Borrower, prior to the first TC Structure Effective Date, the Borrower and the Lenders will in good faith negotiate and seek to agree on a form of contract regarding the purchase and sale of ITCs generated by the Projects (such form, the “Tax Credit Sale Agreement”).
(f)Notwithstanding the foregoing or anything to the contrary contained herein, the Bluebird Project shall not be governed bythis Section 7.21unless its Tax EquityEffective Date shall not have occurred by the date that is twelve (12) Business Days prior to its Mechanical Completion Date.Ifsuch Tax EquityEffective Datehas notoccurred bysuchdate, this Section7.21shall apply to the Bluebird Project except that (a) the period of time in clause (a) shall be two (2) Business Days and (b) the period of time in clause (b) shall be ten (10) Business Days (or, to the extent the TC Structure Documents are substantially similar to documentation provided to the Administrative Agent pursuant to Section 7.24, five (5) Business Days).
Section7.22.TaxCreditTransferDocuments
(a)If a TC Structure Effective Date occurs with respect to any Project, then the BorrowershallcausetheClassBMemberoftheapplicableHoldcocreatedpursuantto Section7.21(a)to agree to sell the ITCs generated by the applicable Project to a Tax Credit Buyer pursuant to Section 6418 of the Code by December 31 of the year in which such Project was“placed in service”, pursuant to a tax credit sale agreement and any related tax credit transfer documentation (including any guarantees entered into in connection therewith) (the “Tax Credit Transfer Documents”) substantially in the form of the Tax Credit Sale Agreement, or otherwise in form and substance reasonably acceptable to each of the Lenders (suchconsentnotbeunreasonablywithheld,conditionedordelayed).ThedateonwhichanyTax Credit Transfer Document is executed (pursuant to theterms of a Tax Credit Sale Agreement or otherwise)and delivered bytheparties thereto isreferred to hereinas the“TaxCreditTransfer Effective Date”.
(b)Notlessthanfifteen(15)BusinessDayspriortotheproposedTaxCreditTransfer Effective Date, the Borrower shall provide materially progressed drafts of the Tax Credit Transfer Documents to the Administrative Agent (for distribution to the Lenders), and none of the applicable Class B Members, applicable HoldCos, or Project Companies, shall enter into such Tax Credit Transfer Documents without the prior written consent of the Lenders (such consent not to be unreasonably withheld, conditioned or delayed). Pending receipt of the requisiteapprovalbyallLenders,totheextentthatBorrowerhascompliedwiththis Section7.22, the Borrower’s obligations under clause (a)shall be tolled for up to thirty (30)days.
(c)Subject to the requirements of Section 7.22(b), on the Tax Credit Transfer EffectiveDate,theBorrowershalldelivertotheAdministrativeAgenttrue,completeandcorrect
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executed copies of the relevant Tax Credit Transfer Documents, all of which shall be in fullforce and effect, as certified by the Borrower.
(d)InconnectionwiththeexecutionoftheTaxCreditTransferDocuments,theClass B Member shall deliver to the Lenders an updated Base Case Model that is updated to take into account onlythe terms of the Tax Credit Transfer Documents and anyamendments to the Credit Documents made pursuant to clause (e)below, which updated Base Case Model is in form and substance reasonably acceptable to the Lenders. On the basis of such updated Base Case Model, as so approved, (i) the Construction Loan Commitment, Bridge Loan Commitment and Upsize Bridge Loan Commitments shall beadjusted (but in no event shall theaggregateamount ofsuch Commitments increase), (ii) to the extent the outstanding Loans under any facility exceed the correspondingCommitments(aftergivingeffecttoclause(i)),suchLoansshallbeprepaidinthe amount of such excess, and (iii) to the extent contemplated in such updated Base Case Model, the Borrower shall cause the Sponsor to make additional equitycommitments to the Borrower.
(e)Onthe first Tax CreditTransferEffectiveDateforanyoftheProjects,theparties hereto agree to consider in good faith, and seek to agree, any amendments to the Credit Documentsreasonably necessary tofacilitate the relevantTaxCredit Transfer Documents and thetransactionscontemplatedtherein,allsuchamendmentstobeinformandsubstance reasonablysatisfactoryto the Administrative Agent, the Collateral Agent and each Lender.
(f)Notwithstanding the foregoing or anything to the contrary contained herein, any failure of the Borrower to cause ITCs to be sold pursuant to Section 7.22(a)shall not result in a Default or Event of Default if the Bridge Loans for the applicable Project have been repaid in full.
(g)No Project Group Member shall execute a Tax Credit Transfer Agreement(Class A) without the consent of the Required Lenders.
Section 7.23.Tax Returns of Each HoldCo.TheBorrowerandeach HoldCosubject to aTax Credit Transfer Arrangement (unless the sole Tax Credit Transfer Arrangement is a TaxCredit Transfer Agreement (Class A)) shall obtain, or cause to be obtained, an automatic extension of time to file the partnership income tax returns of such HoldCo by filing a properly completed IRS Form 7004 on or before the normal due date for filing such partnership income tax returns, which such extension shall extend the time to file such partnership income tax returnsthroughthefifteenth(15th)dayofSeptember.TheBorrowerandeachHoldCosubjectto a Tax Credit Transfer Arrangement shall not file, and shall not cause to be filed, anypartnership income tax returns of such HoldCo prior to the due date (taking into account any extensions thereof) for filing such partnership income tax returns.
Section7.24.TaxEquityDocuments.
(a)At any time prior to the TC Structure Deadline, but subject to the Lender review and consent rights set forth in clause (b)of this Section7.24, (i) the Borrower, in connectionwitheachsuchProject(asapplicable),maycausetobeexecutedTaxEquityDocumentsbetween theapplicableClassBMemberandaClassAMember,pursuanttowhichtheapplicableHoldCo
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will acquire one hundred percent (100%) of the direct Equity Interests in the relevant Project Companyno later than the TC Structure Deadline and (ii) the“Class A”membership interests in the applicable HoldCo shall be issued to such Class A Member. The date on which the Tax Equity Documents with respect to a Project are executed in accordance herewith is referred to herein as such Project’s “Tax Equity Effective Date”.
(b)Not less than fifteen (15) Business Dayspriorto aProject’sproposed Tax Equity Effective Date, the Borrower shall provide materially progressed drafts of such Project’s Tax Equity Documents to the Administrative Agent (for distribution to the Lenders), and no Project Group Membershall enterinto such Tax EquityDocuments without theprior written consent of the Lenders (such consent not to be unreasonably withheld, conditioned or delayed); provided that, in connection with the granting of any such consent by the Lenders, the Class A Member proposed to be partyto anyTax EquityDocument shall be reasonablyacceptabletothe Lenders and the Lenders shall have satisfactorily completed their respective “know-your-customer” requirements in respect of such Class A Member.
(c)Subject to the requirements of Section7.24(b), on theTax EquityEffectiveDate, theBorrowershalldelivertotheAdministrativeAgenttrue,completeandcorrectexecuted copies of the relevant TaxEquity Documents, allof which shall be in fullforce and effect, ascertified by the Borrower.
(d)In connection with the execution of the Tax Equity Documents, the Class B Member shall deliver to the Lenders an updated Base Case Model that is updated to take into account only the terms of the Tax Equity Documents and any amendments to the Credit Documents made pursuant to clause (e)below, which updated Base Case Model is in form and substance reasonablyacceptable to the Lenders. On thebasis of such updated Base CaseModel, as so approved, (i) the Construction Loan Commitment, Bridge Loan Commitment and Upsize Bridge LoanCommitments shall beadjusted(but in noeventshall theaggregateamount ofsuch Commitments increase), (ii) to the extent the outstanding Loans under any facility exceed the correspondingCommitments(aftergivingeffecttoclause(i)),suchLoansshallbeprepaidinthe amount of such excess, and (iii) to the extent contemplated in such updated Base Case Model, the Borrower shall cause the Sponsor to make additional equitycommitments to the Borrower.
(e)On the first Tax Equity Effective Date for any of the Projects, the parties hereto agree to consider in good faith, and seek to agree, any amendments to the Credit Documents reasonably necessary to facilitate the relevant Tax Equity Documents and the transactions contemplated therein, all such amendments to be in form and substance reasonably satisfactory to the Administrative Agent, the Collateral Agent and each Lender.
Section7.25.Post-ClosingCovenants.
(a)Within sixty (60) days after the Financial Closing Date (as may be extendedwith the written consent of the Administrative Agent by up to thirty (30) additionaldays)On or prior to July 1, 2025or, solely in the case of the O&M Agreements and Master Services Agreements, concurrently with the execution of such O&M Agreement or Master Services Agreement, Borrower shall deliver to the deliver to the Administrative Agent, each of
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the Consents set forth in Schedule 6.1(d)in form and substance reasonably satisfactory to the Required Lenders; provided, that other than with respect to O&M Agreements, Master Services Agreements, Power Purchase Agreements, EPC Contracts, Transformer Purchase Agreements (to the extent not substantially fully performed, other than warranty obligations) and Module Supply Agreements (to the extent not substantially fully performed, other than warranty obligations), the Borrower’s obligations under this Section7.25(a)with respect to any Consent shall be satisfied if it has used commerciallyreasonable efforts to obtain such Consent; and.
(b)Withinthirty(30)daysaftertheFinancialClosingDate,Borrowershallcausethe IRB Documents to be executed, and copies thereof delivered to the Administrative Agent.
(c)Within sixty (60) days after the Financial Closing Date (as may be extendedwith the written consent of the Administrative agent by up to thirty (30) additionaldays)On or prior to June 1, 2025, Borrower shall deliver to the Administrative Agent, favorableopinionletters,informandsubstancereasonablysatisfactorytotheRequired Lenders, of legal counsel reasonably acceptable to the Administrative Agent, as special federal, state and local permitting counsel to the Loan Parties in connection with the American BeechProject and the Prairie Project.
(d)With respect to the Bluebird Project, the American Beech Project and the Prairie Project, upon theearlierof (a)(x)(i)withrespecttotheBluebirdProject,thedatethatistheearlier of (A) fifteen (15) days following the consent of the Lenders to the execution of the Tax Documents with respect to the Bluebird Project and (B) sixty (60) days after the Financial Closing Date or (ii) with respect to the American Beech Project and the Prairie Project,thedatethatissixty(60)daysaftertheFinancialClosingDateand(y)thedelivery ofthesameundertheapplicableECCA(ifapplicable)onorpriortoJune1,2025,Borrower shall deliver to the Administrative Agent a fully paid owner’s policy of title insurance with respect to such Project (the “Bluebird Title Policy”, “American Beech Title Policy” or the “Prairie Title Policy”, in substantially the same form and substance as the Pro Forma Title PolicyforsuchProjectand(b)totheextentrequiredbytheTitleInsurertoissuetheTitlePolicy, anupdatedALTASurveydepictinganyupdatestotheALTASurveyfromtheversionsprovided to Required Lenders pursuant to Section6.1(q). The Borrower shall also deliver to the Lenders any updates to the ALTA Survey made in connection with the Tax Documents.
(e)Prior to the second Borrowing date, the Collateral Agent and the Borrower shall execute and deliver, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders the Depositary Agreement.
(f)Within thirty (30) days after the Financial Closing Date, the Borrower shall deliver to the Administrative Agent a reliance letter of each Transmission Consultant, which reliance letter shall certify and attach the applicable Transmission Consultant Report, and shall be in form and substance reasonablysatisfactoryto the Administrative Agent and the Lenders.
(g)Within thirty (30) days after the Financial Closing Date, the Borrower shall deliver to the Administrative Agent a reliance letter of each Environmental Consultant, which
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reliancelettershall certifythe applicableEnvironmentalConsultantReport,andshall beinform and substance reasonably satisfactory to the Administrative Agent and the Lenders.
(h)Within ten (10) Business Days after the execution of the Depositary Agreement, the Borrower shall close anybank account it owns which is not a Collateral Account.
Section7.26.Distributions. After a Project’s Back-Leverage Date, the Borrower shall cause the applicable Project Group Members to distribute as promptly as practicable to the Borrower all amounts received bysuch Project GroupMember (otherthanthe Borrower) andpermitted to be distributed by its applicable Organizational Documents (other than Loan proceeds or equity contributionstobeappliedtopayProjectCosts,andsubjecttoretentionofworkingcapitalofup to $1,500,000 at any time per Project.
Section 7.27.Change in Tax Law or Proposed Change in Tax Law.
(a)The Borrower shall use commerciallyreasonable efforts to notifyLenders of any change in tax law, proposed change in tax law or executive order that could reasonably be expected tobecome aCITLorProposed CITL, in anycase, withinten (10) Banking Days ofthe Borrowers’ obtaining knowledge thereof.
(b)Upon theoccurrenceof aCITLorProposedCITL,the Borrowersshallpromptly, and in any event within fifteen (15) Banking Days of such occurrence, deliver a Base Case Model reasonablysatisfactoryto the Lenders updated to quantifysolelythe estimated impact of such CITL or Proposed CITL. Notwithstanding the foregoing, if the Borrower and the Required Lenders subsequently mutually agree that a Proposed CITL is no longer reasonably likely to be issued orbecomelaw, then such parties shall cooperate in good faith to cause anyupdates made to the Base Case Model pursuant to this paragraph (b) to not take effect and to restore the Base Case Model to its original form prior to taking into consideration such Proposed CITL.
(c)(x) If such Project has Tax Documents then in effect and a CITL or Proposed CITL occurs that reduces the amount payable pursuant to such then-existing Tax Documents (determined pursuant to an updated Base Case Model reasonably satisfactory to the Lenders), then, within thirty (30) days after the earlier of the delivery of the updated Base Case Model pursuant to the immediately preceding paragraph (b) and the date on which such Base Case Model was required to be delivered, the Borrowers shall take CITL Remedial Actions in an amount equal to (i) the proceeds previously expected under such Tax Documents prior to the CITL or Proposed CITL minus (ii) the proceeds now expected under such Tax Documents after taking into consideration solelythe CITL or Proposed CITL (determinedpursuant to anupdated Base Case Model reasonably satisfactory to the Lenders) (or enter into new or replacement Tax Documents reasonably acceptable to the Lenders); and (y) if such Project does not have a Tax Documents then in effect and a CITL or Proposed CITL occurs that reduces the Bridge Loan Commitments or Upsize Bridge Loan Commitments forsuch Project (determined pursuant to an updated Base Case Model reasonably satisfactory to the Lenders), then, within thirty (30) days after the earlier of the delivery of the updated Base Case Model pursuant to the immediately preceding paragraph (b) and the date on which such Base Case Model was required to be delivered,theBorrowersshalltakeCITLRemedialActionsinanamountequaltosuchreduction
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(orenterintoneworreplacementTaxDocumentsreasonablyacceptabletotheLenders)(itbeing understood that such CITL Remedial Actions shall not be required to cover Upsize Bridge Loan Commitments to the extent that such commitments are already covered under the Equity Contribution Agreement).
SECTION8.NEGATIVECOVENANTS.
Borrower covenants and agrees that so long as this Agreement is in effect, unless the Required Lenders (or Administrative Agent with consent from the Required Lenders) waive compliance in writing, it will comply with the following covenants:
Section8.1.Indebtedness.The Borrower shall not, and shall cause each Project Group Member not to, create, incur, assume or permit to exist any Indebtedness, except for Permitted Indebtedness.
Section8.2.Liens.The Borrower shall not, and shall cause each Project Group Member not to, create, incur, assume or suffer to exist any Lien on any of the Collateral or any of its other assets or property except for Permitted Liens.
Section8.3.Transactions with Affiliates.The Borrower shall not, and shall cause each Project Group Member not to, enter into any transaction or group of related transactions (includingthepurchase,lease, saleorexchangeofproperties ofanykind ortherenderingofany service) with anyAffiliate, except for: (a)transactions upon terms that an Authorized Officer of the Borrower orsuchProject GroupMemberhasdetermined in good faith arenotlessfavorable to the Borrower or such Project Group Member than would be obtainable in a comparablearm’s-length transaction with a Person not an Affiliate; (b)transactions pursuant to or in accordance with the agreements listed in Schedule8.3; (c)Restricted Payments permitted by Section8.7; (d)transactions among the Project Group Members; (e)anytransaction pursuant to the Tax Equity Documents, TC Structure Documents, Tax Credit Transfer Documents or the Credit Documents; (f) Permitted Dispositions described in clause (k)of the definition of “Permitted Dispositions”; (g)transactions permitted pursuant to Section8.8(iii); (h) Permitted TE/TC Reorganizations or (i) transactions pursuant to the IRB Documents.
Section8.4.Fundamental Change.The Borrower shall not, and shall cause each Project Group Member not to (a) combine, consolidate with or merge with or into anyother Person, (b) liquidate, wind-up, dissolve or dispose of all or substantially all of its assets in a single transaction or series oftransactions to anyPerson or (c) changeitslegal form, except for: (i) the Borrower and anyProject GroupMembermaymakePermittedDispositionsor(ii)theBorrower and the Project Group Members may consummate internal reorganizations with other Project Group Members (including newly formed Subsidiaries) to the extent they deem such internal reorganization necessary in connection with facilitating any Tax Equity Arrangement or Tax Credit Transfer Arrangement (including with respect to the TC Structure Documents and the performance of anyobligations set forth thereunder) and so long as such internal reorganization (x)isnotadversetotheLendersinanymaterialrespect(aftertakingintoaccountanyMandatory Prepayment the Borrower is required to make in connection with the related internal reorganization, even if there is a related change to the structure of the Collateral) and (y) could
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not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect (a “Permitted TE/TC Reorganization”).
Section8.5.Line of Business.The Borrower shall not, and shall cause each Project Group Member not to, engage in any business other than the ownership, development, construction, financing, operation and maintenance of the Projects as contemplated by the Operative Documents and activities incidental thereto.
Section8.6.Anti-Corruption,Anti-MoneyLaunderingandSanctions. TheBorrowershall not, and shall not permit any Project Group Member to:
(a)use any proceeds of the Loans, or lend, contribute or otherwise make available such proceeds to any Person, directly or indirectly: (i) in furtherance of an offer, payment, promise to pay, orauthorization of thepayment orgivingofmoney, oranythingelse ofvalue, to any Person in violation of applicable Anti-Corruption Laws; (ii) in any other manner that would constitute aviolation of applicable Anti-Corruption Laws or Anti-MoneyLaundering Laws; (iii) to fund any activities or business with, involving or for the benefit of any Sanctioned Person or inanySanctionedCountry;or(iv)otherwiseinanymannerthatwouldconstituteorgiverisetoa violation of Sanctions by any party hereto, including any Lender; or
(b)(i)becomeaSanctionedPerson(includingbyvirtueofbeingownedorcontrolled by a Sanctioned Person), or (ii) own or control a Sanctioned Person.
Section8.7.Restricted Payments.Except (A)Restricted Payments by a Project Group Member to a Project Group Member and by any HoldCo to its Class A Member in accordance with the Tax Equity Documents or TC Structure Documents, as applicable, (B)payments of management, development or similar fees to an Affiliate under (i) any Master Services Agreement or O&M Agreement or anyother Project Document entered into with the consent of the Required Lenders to the extent such costs are reflected in the Base Case Model or (ii) in an amount not to exceed $500,000 in the aggregate, any other agreement entered into with an Affiliate in accordance herewith, (C)for the Closing Date Distribution Payment made with the proceeds of the initial Borrowing of Construction Loans and Bridge Loans on the Financial Closing Date, (D)for return bythe Borrower to the Sponsor or its designee of the Development Period Security, or (E) to the extent funded byadditional equitycontributions bythe Sponsor to Opco Borroweror any of its subsidiaries (directly or indirectly), the distribution of the proceeds of payments to Devco Borrower pursuant to the membership interest purchase agreement entered into as a Tax Equity Document or TC Structure Document for a Project, the Borrower shall not make, permit any Project Group Member to make, agree to pay or make, or permit anyProject Group Member to make, directlyor indirectly, anyRestricted Payment.
Notwithstanding anything to the contrary herein, the Borrower and any Project Group Member shall be permitted to: (1)reimburse any Affiliate, so long as no Event of Default has occurred and is continuing, forpayments made bysuch Affiliate onbehalf of the Borrower or anyProject Group Member with respect to: (A)repairs, replacement or restoration paid for and/or undertaken by such Affiliate in advance of receipt by the Borrower or such Project Group Member of any applicable insurance proceeds; provided that such Restricted Payment is made
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solely with proceeds of such insurance proceeds when received and solely to the extent not required to be applied as a prepayment in accordance with this Agreement, or (B) any interconnection network upgrades paid for and/or undertaken by such Affiliate pursuant to an Interconnection Agreement or the American Beech JV Operating Agreement, and (2)make payments pursuant to or in accordance with the agreements listed in Schedule8.3and/or any other contract or arrangement with an Affiliate permitted hereunder (other than any contract or arrangement evidencing or relating to Indebtedness owing to an Affiliate).
Section 8.8.Investments.The Borrowershallnot,andshallcause eachProjectGroup Member not to, make any Investments except for (i) Permitted Investments, (ii)pursuant to the Operative Documents, (iii) Investments in Project Group Members, (iv) any acquisition of capital stock, partnership or other ownership interests or other Securities of, or capital contributionsto,anyPersoninconnectionwithaPermittedTE/TCReorganization,(v)accepting contributions and transfers from a Person that owns anyoutstandingshares of its capital stock or similarEquityInterestsorfromanyAffiliate,(vi)Investmentsinfurtheranceofthedevelopment, construction, operation or ownership of the Projects funded solely with capital contributions by the Sponsor or any of its Affiliates (other than a Project Group Member), and (vii) to the extent constituting an Investment, the formation of Subsidiaries.
Section8.9.Disposition of Property.The Borrower shall not, and shall cause each Project Group Member not to, make any Asset Dispositions other than Permitted Dispositions.
Section8.10.Hedging Agreements.The Borrower shall not, and shall cause each Project GroupMembernotto,enterintoanyHedgingAgreementotherthan(a)theHedgingAgreements entered into in accordance with Section 7.17or (b)the Power Purchase Agreements (or any replacement thereof entered into in accordance with Section 8.12).
Section8.11.Regulations.Borrower shall not directly or indirectly, apply any part of the proceeds of any Loan or Project Revenues for the purpose of buying or carrying any margin stockwithinthemeaningofRegulationUoftheFederalReserveBoard(oranysuccessor),orfor the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the Borrower in a violation of Regulation X of the Federal Reserve Board (or any successor) or to involve any broker or dealer in a violation of Regulation T of the Federal Reserve Board (or any successor).
Section8.12.Additional Project Documents.The Borrower shall not, and shall cause each Project Group Member not to, enter into or become a partyto anyAdditional Project Document (other than an IRB Document) without the prior written consent of the Required Lenders, not to be unreasonably withheld, conditioned or delayed.To the extent such Additional Project Document (other than an IRB Document) is being executed bya Borrower, or anyother Project Group Member that is party to the Security Agreement at such time, the Borrower shall use commercially reasonable efforts to deliver to Administrative Agent a consent to collateral assignment from the counterparty to such Additional Project Document in form and substance reasonably satisfactory to the Required Lenders.
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Section 8.13.Amendments; Change Orders.The Borrower shall not, and shall cause each Project Group Member not to, cause, consent to, or permit any termination (other than pursuant to its scheduled term), amendment, modification, waiver of timelycompliance with anymaterial terms or conditions of, or assignment of any rights under, without the consent (not to be unreasonablywithheld, conditioned or delayed) of the Required Lenders, anyProject Document, any Tax Equity Document, any TC Structure Documentor, any of the Tax Credit Transfer Documentsor any Tax Credit Transfer Agreement (Class A), other than (a) amendments, modifications, variances or waivers to cureanydefectiveprovisions contained in such Operative Document or to permit other minor deviations from the terms thereof, in each case that are not adverse to the interests of the Lenders in any material respect, (b)prior to the date on which a Project achieves Completion, amendments, modifications, waivers, and change orders to Project Documents (other than the Power Purchase Agreements) with respect to such Project not exceeding, in the aggregate, fifty percent (50%) of the contingency allowance provided in the then-current applicable Project Budget and which would not reasonably be expected to cause CompletionofsuchProjecttooccurlaterthansuchProject’sapplicableProjectCompletionDate (subject to extension in accordance with the definition thereof); provided that, in the case of this clause (b), such amendment, modification, waiver or change order is in the best interest of each Project Group Member and the Lenders, (c) following the date on which a Project achieves Completion, amendments, modifications, variances or waivers concerning such Project, which would not reasonably be expected to have a material and adverse effect on the Secured Parties, anyProject, the Borrower or anyapplicable Project Group Member, and(d) assignments of any rights of counterparties to any such applicable Operative Documents where the applicable BorrowerorProjectGroupMemberreasonablydeterminesthatithasnoconsentrightsunderthe terms of the applicable Operative Document. and (e) in the case of any Tax Credit TransferAgreement (Class A), terminations, amendments, modifications, waivers of timelycompliance with any material terms or conditions, or assignments that are not material tothe Project Group Members; provided that in no event shall any such termination,amendment, modification, waiver or assignment to a Tax Credit Transfer Agreement(Class A) result in any Project Group Member having any liability under the Tax CreditTransfer Agreement (Class A).
Section8.14.Name and Location; Fiscal Year; Accounting Changes.The Borrower shall not,andshallcauseeachProjectGroupMembernotto,change(i)itsnameor(ii)itsjurisdiction of organization without written notice to the Administrative Agent at least thirty(30) days prior to such change, or change its fiscal year without the prior written consent of the Administrative Agent (such consent not to be unreasonably withheld).
Section8.15.Use of Site.The Borrower shall not, and shall cause the Project Companies not to, use, or permit to be used (except by utility providers and to the extent the Borrower or the ProjectCompanieshastherighttocontroltheSites,PersonsontheSitesortheactivitiesofsuch Persons on the Sites), the Sites for any purpose other than for the development, construction, operation and maintenance (and uses incidental thereto) of the Projects as contemplated by the Operative Documents without the prior written consent of the Required Lenders (or the Administrative Agent with consent from the Required Lenders), or permanently locate any
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portion of any Project on real property other than the Sites and as permitted by the Project Documents.
Section8.16.Hazardous Materials.The Borrower shall not, and shall cause each Project Group Member not to, (a)Release into the environment anyHazardous Materials in violation in any material respect of, or in a manner that would reasonably be expected to result in the incurring of material liability under, any Environmental Laws, Applicable Law or Applicable Permits, or(b) allow (to theextent theBorrower oranyProject Companyhas theright tocontrol the Sites, Persons on the Sites or the activities of Persons on the Sites) anyHazardous Materials to be Released by other Persons on, in, under, from, to or above the Sites or Improvements, in violationinanymaterialrespectof,orinamannerthatwouldreasonablybeexpectedtoresultin theincurringofmaterialliabilityunder,anyEnvironmentalLaws,ApplicableLaworApplicable Permits.
Section8.17.Borrower Accounts.The Borrower shall not maintain, establish or be the beneficiary of any deposit account, securities account (as each such term is defined in the Uniform Commercial Code) or other banking account other than Borrower Accounts.
Section8.18.Tax Equity Documents, Tax Credit Transfer Documents or TC Structure Documents.
(a)TheBorrowershallnot,andshallcauseeachProjectGroupMembernotto executeanyTaxEquityDocument,anyTaxCreditTransferDocumentoranyTCStructure Document without the consent of all Lenders (not to be unreasonably withheld, conditioned or delayed).
(b)Notwithstanding anything to the contrary in Section 8.13, the Borrower shall not, and shall cause each Project Group Member not to, (i) terminate, assign or materially amend, modify or waive any Tax Equity Document (other than the Funding Date Guaranties), any Tax Credit Transfer Document or any TC Structure Document, without the consent of the Required Lenders (not to be unreasonably withheld, conditioned or delayed), and (ii) terminate, assign or materiallyamend,modifyorwaiveanyoftheFundingDateGuarantieswithouttheconsentofall Lenders (not to be unreasonably withheld, conditioned or delayed).
Section8.19.Partnership; Subsidiaries.Except for the Operative Documents,no LoanParty shallexecute abindingagreement tobecome ageneral orlimitedpartnerinanypartnership,ora joint venturer in anyjoint venture or a member in anylimited liabilitycompany.
Section8.20.FederalIncomeTaxMatters.
(a)NoProjectGroupMembershallmakeanaffirmativeelectiontotreatsuchProject Group Member as an association taxable as a corporation for income Tax purposes, or to otherwise be anything other than a “disregarded entity” (or, in the case of a Holdco, a partnership) within the meaning of Treasury Regulations Section 301.7701-3 for U.S. federal income tax purposes.No Project Group Member shall allow any transfer of its interests that
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would cause it to be treated as a publicly traded partnership under Section 7704 of the Code (or any successor laws or regulations).
(b)No Project Group Member shall (i) for purposes of and within the meaning of Section 48 of the Code, apply for any grants from the United States, a state, a political subdivision of a state, or any other Governmental Authority for use in constructing or financing all or a portion of any Project or with respect to which such Project Group Member or such Project is the beneficiary; (ii) for purposes of and within the meaning of Sections 48 and 168(g)(5) of the Code, use anyproceeds of anyissue of state or local government obligations to provide financing for all or a portion of any Project the interest on which is exempt from tax underSection 103 of theCode; or (iii) claim anyU.S.federal tax credit (otherthan, withrespect to the Projects the, ITC) with respect to anypropertythat is part of such Project.
(c)The Borrower shall not (i)become, or allow or cause aProject Group Member to become, (A) a Disqualified Person or (B) a Tax Related Person, (ii) elect the application of Section 6417 of the Code with respect to any ITCs or (iii) take any action that would cause, or permit any transfer of any direct or indirect ownership interests in any Project Group Member (except in connection with a foreclosure byanyLender) that would cause, the ITC applicable to theProjectstobesubjecttorecapturepursuanttoSection50oftheCodeorotherwisereducedor disallowed.
Section8.21.Title Policies. The Borrower shall not, and shall cause each Project Group Membernotto,materiallyamendormodifyanyTitlePolicywithouttheconsentoftheRequired Lenders.
SECTION9.EVENTSOFDEFAULTANDREMEDIES
Section 9.1. EventsofDefault.An“Event ofDefault”shallexistif any of the following conditions or events shall occur and be continuing:
(a)FailuretoMakePaymentsofPrincipal.TheBorrowerdefaultsinthepaymentof anyprincipal on anyLoan when the same becomes due and payable, whether at maturityor at a date fixed for prepayment or by declaration or otherwise.
(b)FailuretoMakePaymentsofInterestandOtherAmounts.TheBorrowerdefaults in the payment of any interest on any Loan or any other fee, cost, charge or other amount due under this Agreement or anyotherCredit Document formorethanthree (3) Business Days after the same becomes due and payable.
(c)Failure of Sponsor to Make Payments.The Sponsor or its applicable Affiliate defaults in the payment of its obligations under a Funding Date Guaranty.
(d)Loan Parties Failure to Make Payments.Except as otherwise provided in Sections 9.1(a)and (b), a Loan Party shall fail to pay any amount due from it under any Credit Document to which it is a party within ten(10) Business Days after the same becomes due and payable.
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(e)Misstatements.Any certification, representation or warranty made by any Loan PartyinanyCreditDocumentstowhichitisapartyoranyamendmentormodificationhereofor thereof, or in any certificate furnished by an Authorized Officer thereof to the Administrative Agent or the Lenders in accordance with the terms of the Credit Documents, shall prove to have been incorrect in any material respect as of the time made; provided that the same shall not constitute an Event of Default if the fact and circumstances underlying such misrepresentation and the effects of such misrepresentation are capable of being remedied such that the representationorwarrantyistrueinallmaterialrespectsandsucheffectsarecuredandsuchcure is effected within thirty(30) days after the earlier of (A)an Authorized Officer of the Borrower obtainingKnowledgeofsuchmisrepresentationand(B)theBorrowerreceivingwrittennoticeof such misrepresentation from the Administrative Agent or any Lender.
(f)Breach of Certain Covenants.(i) The Borrower shall fail to comply with any covenant,conditionoragreementcontainedinSection7.1(solelyasitrelatestoAnti-Corruption Laws, Anti-MoneyLaundering Laws and Sanctions), Section 7.4(a), Section 7.5, Section 7.9(a), Section 7.25, Section 7.27(in relation to a CITL) or Section8or (ii) the Borrower shall fail to comply with any covenant, condition or agreement contained in Section 7.27(in relation to a Proposed CITL) and, in the case of this clause (ii), such failure shall continue uncured for a period of thirty(30) or more days from the earlier of (A)an Authorized Officer of the Borrower obtaining Knowledge of such failure and (B)the Borrower receiving written notice of such breach or failure from the Administrative Agent or any Lender.
(g)Insurance.The Borrower shall fail to comply with Section7.2(Insurance) and such failure shall continue uncured for a period of ten(10) or more Business Days from the earlierof(A)anAuthorizedOfficeroftheBorrowerobtainingKnowledgeofsuchfailureand (B)the Borrower receiving written notice of such breach or failure from the Administrative Agent or any Lender.
(h)Breach of Terms of Agreement.Any Loan Party fails to observe or perform any covenant, condition or agreement contained in anyCredit Document (other than those specified elsewhere in this Section9.1) to which it is a party and, in each case, such failure continues uncured for a period of thirty(30) or more days after the earlier of (i)an Authorized Officer of such Loan Party obtaining Knowledge of such Default and (ii)receipt by the Borrower of a notice of such Default from the Administrative Agent or anyLender; provided, however, that if such Person commences efforts to cure such Default within such thirty(30) day period, it may continue to effect such cure of the Default (and such Default will not be deemed an Event of Default) for an additional sixty(60) days for a total cure period of ninety(90) days; provided, further, that in the case of a Default arising from anyfailure to complywith Applicable Laws or Material Governmental Approvals in accordance with Section7.1, if within such period the relevant Person enters into a consent decree or other arrangement under which the applicable Governmental Authorities agree to stay or delayenforcement due to such non-compliance, then such cure period shall be further extended for the period of such stayor delay.
(i)Cross Default. (i)The Borrowerisindefaultinpaymentofanyprincipal,interest or other amount due under any agreement (other than the Credit Documents) governi
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ng indebtedness constituting Material Indebtedness beyond any period of grace provided with respect thereto; or (ii)the Borrower is in default in the performance of or compliance with any term of any contract or agreement evidencing any Material Indebtedness or of any mortgage, indenture orother agreement relatingthereto oranyothercondition exists(excludingmandatory prepaymentsnotarisingfromadefault),and,asaconsequenceofsuchdefaultorcondition,such Material Indebtedness has become, or has been declared, due and payable before its stated maturity or before its regularly scheduled dates of payment.
(j)Breach of Tax Equity Documents; TC Structure Documents or Tax Credit TransferDocuments.(i)(A)(1)AnyProjectGroupMemberoranyClass AMembershall bein breach of any material obligation, or a material default shall have occurred and be continuing, under any Tax Equity Documents or any TC Structure Document or (2) any Project Group Member or any Tax Credit Buyer shall be in breach of any material obligation, or a material defaultshallhaveoccurredandbecontinuing,underanyTaxCreditTransferDocumentand (B)such breach or default has continued beyond anyapplicablegraceperiod expresslyprovided for in such agreement (or, if no grace period is expressly provided, thirty (30) days following written notice of the same by the non-breaching party), or (ii)such Tax Equity Document, TC StructureDocumentorTax CreditTransferDocumentceasestobeinfullforceandeffect(other than on account of expiration in accordance with its terms (and not related to any default thereunder)).
(k)Bankruptcy;Insolvency.Anyofthefollowingeventsshallhaveoccurred:
(i)an involuntary proceeding shall be commenced or an involuntarypetition shall be filed seeking (A)liquidation, reorganization or other relief in respect of any Major Project Participant or any Loan Party (the “Subject Persons” and each, individually,a“SubjectPerson”)oranyoftheirrespectivedebts,orofasubstantialpart of its assets, under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (B)the appointment of a receiver, trustee, custodian,sequestrator, conservatororsimilarofficial for anySubjectPersonand,inany suchcase,suchproceedingorpetitionshallcontinueundismissedforaperiodof sixty(60) or more days or an order or decree approving or ordering anyof the foregoing shall be entered or any other similar relief shall be granted against any of the Subject Persons; or
(ii)anySubject Person shall with respect to itself (or, inthe caseof anyLoan Party, with respect to itself or any other Loan Party) (A)voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or consent to the institution of an involuntary case thereunder against it,(B)applyfororconsenttotheappointmentofareceiver,liquidator,trustee,custodian, sequestrator, conservator or similar official, (C)file an answer admitting the material allegationsofapetitionfiledagainstitinaninvoluntarycaseundertheBankruptcyCode or similar law or proceeding, (D)make a general assignment for the benefit of creditors, (E)takeanycorporateactionforthepurposeofeffectinganyoftheforegoingor
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(F)admit in writing its inability, or generally be unable, to pay its debts as such debts become due;
provided, however, that such Event of Default with respect to such Major Project Participant shall be deemed to not have occurred if (i) except for a Power Purchaser, a Tax Equity Investor or a Tax Credit Buyer, within sixty (60) days of the occurrence of a Default under this Section9.1(k), (A)the Borrower obtains a Replacement Obligor with respect to such Major Project Participant or (B)the Project Document to which such MajorProjectParticipantisapartyhasbeenreplacedbyareplacementProjectDocument in form and substance, and with a counterparty, reasonably acceptable to the Required Lenders (and,with respect to the EPC Contractor or any Module Supplier, the Independent Engineer has reviewed the replacement arrangements and confirmed to the Required Lenders that such Project is reasonably expected to achieve Work Substantial Completion on orbeforesuchProject’s applicableProject CompletionDate)or(ii)in the case of any Major Project Participant other than a Power Purchaser, a Tax Equity Investor, a Tax Credit Buyer, an EPC Contractor (to the extent the applicable EPC Contractor has not substantially fullyperformed its obligations under the applicable EPC Contract, other than warranty obligations), a Module Supplier or Module Supplier Guarantor (to the extent the applicable Module Supplier has not substantially fully performed its obligations under the applicable Module Supply Agreement, other than warranty obligations) and Virginia Transformer Corporation (to the extent it has not substantially fully performed its obligations under the applicable Transformer Purchase Agreement, other than warranty obligations), such Event of Default such breach or default would be reasonably expected to have a Material Adverse Effect.
(l)Judgements.One or more final judgments (exclusive of judgments covered by insurance) for the payment of money in excess of one million Dollars ($1,000,000) shall be rendered against the Borrower or its Subsidiaries and remains unpaid, undismissed or unstayed foraperiodofsixty(60)daysormoreconsecutivedaysorarenototherwisebondedwithinsuch sixty (60) days.
(m)InvalidityofCreditDocuments.(i)ThisAgreementoranyotherCreditDocument shallbedeclaredinafinaljudgmentby acourtofcompetentjurisdictiontobeunenforceable, (ii)anyCredit Document shall otherwise cease to be valid and bindingor in full forceandeffect or shall be rescinded, terminated, cancelled, invalidated, enjoined or suspended (in each case, except in connection with its expiration in accordance with its terms (and not related to any default thereunder)) or (iii)any Loan Party shall terminate, cancel, expressly repudiate its obligations under any Credit Document to which it is a party in writing.
(n)BreachorTerminationofProjectDocuments.
(i)Any Loan Party or any Major Project Participant shall be in material breach of or otherwise in material default under any Project Document and such breach or default has continued beyond any applicable grace period expressly provided for in suchProjectDocument(or, ifnosuchcureperiod isprovided,exceptwithrespecttoany Power Purchase Agreement, thirty(30) days) and (except with respectto anyTax Equity
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Document, any TC Structure Document, any Tax Credit Transfer Document, anyPower Purchase Agreement, any Interconnection Agreement or any material Real Property Document) such breach or default would be reasonably expected to have a Material Adverse Effect; provided, however, that, if (A)such breach or default cannot be cured within such initial cureperiod, (B)such breach ordefault is susceptible ofcure, (C) such breach ordefault is byanypartyotherthan Borrower and (D)suchotherdefaultingparty is proceeding with all requisite diligence and in good faith to cure such failure, then exceptwithrespecttothePowerPurchaseAgreement,thetimewithinwhichsuchfailure maybe cured shall be extended to such date, not to exceed atotal of sixty(60)days after the end of such initial cure period, as shall be necessary for such party diligently to cure such failure; provided, further, that from and after each Project’s respective date of Completion, no Event of Default shall occur under this Section9.1(n)with respect to a Construction Contract if the applicable Major Project Participant’s material warranty obligations are still in effect thereunder and shall be performed by another Person pursuant to an executed warranty agreement.
(ii)Any Project Document shall for any reason cease to be in full force and effect or valid and binding on the Persons partythereto, as the case maybe, exceptupon fulfillment of such party’s obligations thereunder, or any such Person pursues a right of termination under such Project Document, as the case maybe, in each case (except with respect to the Tax Equity Documents, the TC Structure Documents, the Tax Credit Transfer Documents, the Power Purchase Agreements, the Interconnection Agreements or anymaterial Real PropertyDocument) unless such cessation would not reasonablybe expected to have a Material Adverse Effect.
(o)Security; Loss of Collateral.
(i)Except solely as a result of the acts of any of the Secured Parties and the expiration of any of the Security Documents in accordance with their respective terms, theSecurityDocuments,onceexecutedanddelivered,failtoprovidetheCollateralAgent (for the benefit of the Secured Parties) the Liens, security interest, rights, titles, interest, remedies, powers or privileges intended to be created therebyor cease to be in full force andeffectwithrespecttotheCollateral,orthevaliditythereofortheapplicabilitythereof to the Loans,theNotes,theoutstandingReimbursementObligationsduetotheLC Issuer oranyotherObligationspurportedtobesecuredorguaranteedtherebyoranypartthereof shallbedisaffirmedbyoronbehalfoftheBorroweroranyofitsAffiliatesordisaffirmed in writing byor on behalf of anyother partythereto other than a Secured Party.
(ii)Other than Collateral permitted to be sold, leased, assigned, transferred or otherwise disposed of under Section8.9or any Security Document, any Loan Party ceasestobethesoledirectorbeneficialownerofanymaterialportionoftheCollateralor any material portion of the Collateral is seized or appropriated without fair value being paid therefor such as to allow replacement of such Collateral or prepayment in full of the Obligations then outstanding and to allow the Borrower, in the Required Lenders’
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reasonable judgment, to continue satisfying its obligations hereunder and under the other Operative Documents.
(p)Loss of Applicable Permits. (i)Any Applicable Permit necessary for the development, construction, operation, ownership or maintenance of a Projectshallbematerially modified in an adverse manner, enjoined, revoked or cancelled by the issuing agency or other Governmental Authority having jurisdiction or (ii)any Major Project Participant or any Project Company shall fail to obtain, renew, maintain or comply in all material respects with any Applicable Permit, unless, in the case of clause(i)or (ii)above, (A)such modification, injunction, revocation, cancellation or failure to obtain, renew, maintain or comply would not reasonably be expected to have a Material Adverse Effect, (B)such Applicable Permit is reinstated within thirty(30) days of such modification, injunction, revocation or cancellation or failure to obtain, renew, maintain or comply or (C)such Applicable Permit expires by its terms andisnolongerrequiredfordevelopment,construction,operation,ownershipormaintenanceof the applicable Project.
(q)Default in Construction. (i)The occurrence of a permanent cessation of the development and construction or operation, as applicable, of any Project or (ii)all of the development and construction or operation, as applicable, of anyProject is suspended or ceases for a period of thirty(30) or more consecutive days for any reason (other than as a result of a force majeure); provided that, in the case of clause(ii), none of (A)scheduled maintenance of such Project, (B)repairs to such Project, whether or not scheduled, (C)a forced outage or scheduled outage of such Project or (D)a suspension or cessation of the development, construction or operation of such Project required by Applicable Law, shall be considered as a suspension or cessation of thedevelopment and construction oroperation, asapplicable, ofsuch Project.
(r)ERISA. Any ERISA Event shall occur that, either individually or together with any other ERISA Event, could reasonably be expected to have a Material Adverse Effect or could reasonablybe expected to result inmaterial liabilityto the Borrower or anyProject Group Member.
(s)ChangeofControl.AChangeinControlshallhaveoccurred.
(t)Back-Leverage Date. The Back-Leverage Date for a Project has not occurred prior to the applicable Project Completion Date.
Section 9.2.Remedies.Upon the occurrence and during the continuation of an Event of Default, Administrative Agent may, and at the election of the Required Lenders shall, by notice to the Borrower but without further notice of default, presentment or demand for payment, protest or notice of non-payment or dishonor, or other notices or demands of any kind, all such othernoticesanddemandsbeingwaived,exerciseanyorallofthefollowingrightsandremedies (ordirectCollateralAgenttosoexercise),inanycombinationororderthatAdministrativeAgent ortheRequiredLendersmayelect,inadditiontosuchotherrightsorremediesasAdministrative
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Agent, Collateral Agent, the Lenders and the other Secured Parties may have hereunder, under the Security Documents or at law or in equity:
(a)No Further Loans.Refuse, and the Lenders shall not be obligated, to make any additional Loans, issue, renew, extend or amend any Letters of Credit or make any payments from any Borrower Account or any Loss Proceeds or other funds held by Administrative Agent or the Depositary under the Credit Documents or on behalf of Borrower, and terminate all Commitments; provided that in the event of a Bankruptcy Default, in addition to the foregoing, all Commitments shall automatically terminate.
(b)Conversion to LC Loans.Convert Reimbursement Obligations into LC Loans which may be accelerated with the other Loans; provided that in the event of a Bankruptcy Default, anyoutstanding Reimbursement Obligations shall automaticallyconvert to LC Loans.
(c)Cure by Administrative Agent.Without any obligation to do so, make disbursementsorLoanstooronbehalfofaBorrowertocureanyEventofDefaulthereunderand to cure any default and render any performance under any Project Documents as the Required Lenders in their sole discretion may consider necessary or appropriate, whether to preserve and protect the Collateral or the Lenders’ interests therein or for any other reason, and all sums so expended, together with interest on such total amount at the Default Rate (but in no event shall the rate exceed the maximum lawful rate), shall be repaid by the Borrower to Administrative Agent on demand and shall be secured by the Credit Documents, notwithstanding that such expenditures may, together with amounts advanced under this Agreement, exceed the amount of the Total Construction Loan Commitment, Total Upsize Bridge Loan Commitment or the Total Bridge Loan Commitment, as applicable.
(d)Acceleration.Declare and make all sums of outstanding principal and accrued but unpaid interest remaining under this Agreement together with all unpaid fees, costs, charges and other amounts due hereunder or under any other Credit Document, immediately due and payable;providedthatintheeventofaBankruptcyDefault,allsuchamountsshallbecome immediatelydue and payable without further act of Administrative Agent or the Lenders or any other Person.
(e)CashCollateral.ApplyorexecuteuponanyamountsondepositinanyBorrower Account or any other moneys of Borrower on deposit with Depositary, or in the name of Administrative Agent, Collateral Agent or any Lender in the manner provided in the UCC and other relevant statutes and decisions and interpretations thereunder with respect to cash collateral.
(f)Remedies Under Credit Documents.Exercise any and all rights and remedies available to it under any of the Credit Documents (including judicial or, if permitted by Applicable Law, non-judicial foreclosure or public or private sale of any of the Collateral pursuant to the Security Documents and Applicable Law).
(g)PossessionofProjects.EnterintopossessionofaProjectandperformorcauseto be performed any and all work and labor necessary to complete such Project or to operate and maintainsuchProject,andallsumsexpendedbyAdministrativeAgentinsodoing,togetherwith
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interest on such total amount at the Default Rate, shall be repaid by the Borrower to Administrative Agent upon demand and shall be secured by the Credit Documents, notwithstanding that such expenditures may, together with amounts advanced under this Agreement, exceed the amount of the Total Construction Loan Commitment, Total Upsize Bridge Loan Commitment or the Total Bridge Loan Commitment.
(h)Cash Collateralize LC Exposure.So long as any Letter of Credit shall remain outstanding, (a) Administrative Agent (on behalf of the Lenders) may require that the Borrower cash collateralize the stated amount of such outstanding Letter of Credit in an amount equal to one hundred two percent (102%) of the stated amount thereof, and on or prior to the third Business Dayfollowing the date on which the Borrower receives notice from the Administrative Agent demanding the deposit of cash collateral pursuant to this Section 9.2(h), the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the applicable LC Issuer, theforegoingamount; provided that in the event of a Bankruptcy Default, the Administrative Agent shall be deemed to have demanded such cash collateral upon the occurrence and continuation of such Event of Default without further act of the Collateral Agent, the Administrative Agent, the Lenders, the LC Issuer, or any other Person and (b) any amounts received by the Administrative Agent in respect of the stated amount of anyLetters of Credit pursuant to this Section 9.2(h)maybe held as cash collateral for the obligation of the Borrower to reimburse the LC Issuer in the event of anydrawingunder any Letter of Credit (and the Borrower hereby grants to the Administrative Agent a security interest in such cash collateral, as security for the Obligations).In the event any Letter of Credit in respect of which the Borrower has deposited cash collateral with the Administrative Agent is canceled or expires, such cash collateral shall be applied (i) first to the reimbursement of the applicable LC Issuer for any unpaid Reimbursement Obligations and any fees, expenses and other amounts related thereto (including interest thereon), (ii) second, to the repayment of any LCLoansthereunder(appliedfirsttointerestandthentoprincipal)and(iii)third,tothepayment of any other outstanding Obligations then due and payable.If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence and continuance of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Construction Account or the Revenue Account, as applicable, within three (3) Business Days after Administrative Agent has received notice that all Events of Default have been cured or waived.
Section9.3.Liquidation Waterfall.If at any time during the continuance of any Event of Default there shall be insufficient funds available to the Secured Parties in accordance with the terms and conditions of the Credit Documents to pay all Obligations which are then due and payable, then, all amounts from time to time thereafter held, received or recovered by or on behalf of the Secured Parties shall be applied as follows:
(a)first, to the payment of all fees and other amounts due under the Credit Documents(i)first,onaproratabasis,totheAdministrativeAgent,theCollateralAgentandthe Depositary, in their capacity as such, and (ii) second, on a pro rata basis, to the other Secured Parties (for the avoidance of doubt, excluding, in the case of the LC Issuing Banks, amounts
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payable in connection with any unpaid Reimbursement Obligations under a Letter of Credit), in their capacities as such;
(b)second, on a pro rata basis, to anySecured Partywhich has theretofore advanced orpaidanyfeestoanyAgent,theDepositaryoranyLCIssuingBank,intheircapacitiesassuch, that would otherwise have been payable under clause (a), in an amount equal to the amount thereof so advanced or paid by such Secured Party and for which such Secured Party has not been previously reimbursed;
(c)third, on a pro rata basis, (i) to any accrued but unpaid interest then due and payable in respect of the Loans and (ii) to any accrued but unpaid interest and ordinary course settlement payments then due and payable under the Permitted Hedging Agreements;
(d)fourth, on a pro rata basis, (i) to the payment of all principal and other amounts then due and payable in respect of the Obligations, (ii) to all termination, liquidation or other payments then due and owing under the Permitted Hedging Agreements above and (iii) to the cash collateralization of the then outstanding amount of the LC exposure in accordance with Section 9.2(h); and
(e)last, the balance, if any, after all of such Obligations have been paid in full in cash, to the Borrower or as otherwise required by applicable law.
SECTION10.CHANGEINCIRCUMSTANCES;ACCOUNTS.
Section10.1.Change of Law.Notwithstanding anyotherprovisions ofthisAgreement orany other Credit Document, if at any time after the Financial Closing Date anychange in applicable law or regulation or in the interpretation thereof makes it unlawful for any Lender to make or continue to maintain any SOFR Loans, such Lender shall promptly give notice thereof to the Borrower, such Lender’s obligations to make or maintain SOFR Loans under this Agreement shall be suspended until it is no longer unlawful for such Lender to make or maintain SOFR Loans and such Lender’s SOFR Loans shall be converted by such Lender to Base Rate Loans from such Lender, which Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender; provided that if such conversion to Base Rate Loans is unlawful for suchLender,theBorrowershallprepayondemandtheoutstandingprincipalamountofanysuch affected SOFR Loans, together with all interest accrued thereon and all other amounts then due and payable to such Lender under this Agreement; provided, further, however, that if such a prepayment is required, and subject to all of the terms and conditions of this Agreement, the Borrower maythen elect to borrow the principal amount of the affected SOFR Loans fromsuch Lender by means of Base Rate Loans from such Lender, which Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender.
If it becomes illegal for any Lender to hold or benefit from a Lien over real property pursuant to anylaw of the United States, such Lender shall notifythe Administrative Agent and disclaim any benefit of such security interest to the extent of such illegality, but such illegality shall not invalidate or render unenforceable such Lien for the benefit of each of the other Lenders.
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Section10.2. Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, Compounded SOFR.Without limiting Section 12.20(b), if as of any date:
(a)the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that “Compounded SOFR” cannot be determinedpursuant to the definition thereof, or
(b)the Required Lenders advise the Administrative Agent that Compounded SOFR asdetermined bythe Administrative Agent will not adequatelyand fairlyreflect thecosttosuch Lenders of funding their SOFR Loans, then the Administrative Agent shall forthwith give notice thereof to the Borrower and the Lenders, whereupon until the AdministrativeAgent notifies theBorrower that thecircumstances giving rise to such suspension no longer exist, the obligations of the Lenders to make SOFR Loans shall be suspended.Upon receipt of such initial notice, the Borrower may revoke any pendingrequestforaborrowingof,conversiontoorcontinuationofSOFRLoansor,failingthat, will be deemed to have converted such request into a request for Base Rate Loans in the amount specified therein.
Section10.3.IncreasedCostandReducedReturn.
(a)If on or after the Financial Closing Date, the adoption of anyapplicable law, rule orregulation,oranychangetherein,oranychangeintheinterpretationoradministrationthereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its Lending Office) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agencymade or issued after the Financial Closing Date:
(i)shall impose, modify or deem applicable any reserve, special deposit or similar requirement (including pursuant to regulations issued from time to time by the FederalReserveBoardfordeterminingthemaximumreserverequirement(includingany emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D)),specialdeposit,compulsory loan,insurancechargeorsimilarrequirementagainst assetsof,depositswithorfortheaccountof,orcreditextendedorparticipatedinby,any Lender;
(ii)shall subject any Recipient to any Taxes (other than (A)Indemnified Taxes, (B)Taxes described in clauses(b)through (d)of the definition of “Excluded Taxes” and (C)Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or
(iii)shall impose on any Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender;
and the result of any of the foregoing is to increase the cost to such Lender (or its Lending Office) of making or maintaining any Loan, issuing or maintaining a Letter of Credit, or
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participating therein, or to reduce the amount of any sum received or receivable bysuch Lender (or its Lending Office) under this Agreement or under any other Credit Document with respect thereto, byan amount deemed bysuch Lender to bematerial, then, within fifteen(15)days after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall be obligated to pay to such Lender such additional amount or amounts as will compensate such Lenderforsuchincreasedcostorreduction(providedthat,theBorrowershallnotbeobligatedto payanyadditional amount or amounts in compensation for anysuch increased cost or reduction that accrued or occurred more than one hundred eighty(180) days before the date of such demand, unless such increased costs or reduction is applied on a retroactive basis in which case suchonehundredeighty(180)dayperiodshouldbeextendedtoincludetheperiodofretroactive effectiveness of such event).
(b)IfanyLenderortheAdministrativeAgentshallhavedeterminedthattheadoption of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, in each case after the Financial Closing Date or compliance by any Lender (or its Lending Office) or any corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) of any such Governmental Authority, central bankorcomparableagencymadeorissuedaftertheFinancialClosingDate,hashadtheeffectof reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder to a level below that which such Lender or such corporation could have achieved but for such adoption, change or compliance (taking into consideration such Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, within fifteen(15) days after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender for such reduction (provided that, theBorrowershallnotbeobligatedtopayanyadditionalamountoramountsincompensationfor any such reduction that occurred more than one hundred eighty(180) days before the date of such demand, unless such reduction is applied on a retroactive basis in which case such 180-day period should be extended to include the period of retroactive effectiveness of such event).
(c)Notwithstanding anything herein to the contrary, (x)the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines ordirectivesthereunder or issued in connection therewith and (y)all requests, rules, guidelines or directives concerning capitaladequacypromulgatedbytheBankforInternationalSettlements,theBaselCommitteeon Banking Supervision (or any successor or similar authority) or the United States or foreign regulatoryauthoritiesshall,ineachcase,bedeemedtobeachangeinApplicableLawregardless of the date enacted, adopted or issued.
(d)A certificate of a Lender claiming compensation under this Section10.3and setting forth the additional amount or amounts to be paid to it hereunder shall be prima facie evidence as to the amount thereof if reasonably determined.In determining such amount, such Lender may use any reasonable averaging and attribution methods.
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(e)IfanyLenderrequestscompensationunderthisSection10.3,oriftheBorroweris required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section12, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require the Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 12.19), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) if such assignee is not a Lender, the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii)such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder,fromtheassignee(totheextentofsuchoutstandingprincipalandaccruedinterestand feesorcashcollateralizationofanyoutstandingLettersofCredit)ortheBorrower(inthecaseof all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under this Section10.3or payments required to be made pursuant to Section12, suchassignmentwillresultinareductioninsuchcompensationorpayments.ALendershallnot be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
Section 10.4.Lending Offices.Each Lender may, at its option, elect to make its Loans hereunder at the branch, office or Affiliate specified on the appropriate signature page hereof (each a “Lending Office”) for each type of Loan available hereunder or at such other of its branches, offices or Affiliates as it mayfrom time to time elect and designate in a written notice to the Borrower and the Administrative Agent.If any Lender requests compensation under Section10.3, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authorityfor the account of anyLender pursuant to Section 12, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereundertoanotherofitsoffices,branchesoraffiliates,if,inthejudgmentofsuchLender,such designationorassignment(i)wouldeliminateorreduceamountspayablepursuanttoSection 10.3or Section 12, as the case may be, in the future, and (ii) would not subject such Lendertoanyunreimbursedcostorexpenseandwouldnototherwisebedisadvantageoustosuch Lender.The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
SECTION11.THEAGENTS.
Section11.1.Appointment and Authorization of the Agents.Each Lender hereby appoints Natixis,NewYorkBranchastheAdministrativeAgentundertheCreditDocumentsandNatixis, New York Branch as the Collateral Agent under the Credit Documents, and hereby authorizes eachAgenttotakesuchactionastheAdministrativeAgentorCollateralAgent,asapplicable,on itsbehalfandtoexercisesuchpowersundertheCreditDocumentsasaredelegatedtosuch Agent by the terms thereof, together with such powers as are reasonablyincidental thereto.The Lenders expresslyagree that the Agents are not acting as a fiduciaryof the Lenders inrespect of
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theCreditDocuments,theBorrowerorotherwise,andnothinghereinorinanyoftheother Credit Documents shall result in any duties or obligations on any Agent or any of the Lendersexcept as expressly set forth herein.Use of the term “agent” in this Agreement or in any other CreditDocument(orany othersimilarterm)withreferencetoeitherAgentdoesnotconnote (and is not intended to connote), any fiduciary or other implied (or express) obligation arisingunderagency doctrine ofany applicable law.Instead such term is used as a matter of marketcustom,andisintendedtocreateorreflectonlyanadministrativerelationshipbetweenthe contracting parties.The Borrower agrees to pay to each Agent such fees and other charges as maybeseparatelyagreedinwriting.AnyentityintowhichtheAdministrativeAgentinits individual capacity may be merged or converted or with which it may be consolidated, or anycorporation resulting from any merger, conversion or consolidation to which the Administrative Agent in its individual capacity shall be a party, or any corporation to which substantially all of the corporate trust oragencybusiness of the AdministrativeAgent in its individual capacitymay be transferred, shall be the Administrative Agent under this Agreement without further action. The Collateral Agent maymerge or convert into, or consolidate with, another Person (other than theBorrowerorany AffiliateoftheBorrower)orsellortransferallorsubstantially allofits corporatetrustbusinesstoanyPerson(otherthantheBorroweroranyAffiliateoftheBorrower), andanyPerson(otherthantheBorroweroranyAffiliateoftheBorrower)intowhichthe CollateralAgentmaybemergedorconvertedorwithwhichitmaybeconsolidated,orany Personresultingfromany merger,conversionor consolidationtowhichthe CollateralAgent shallbeaparty,oranyPerson(otherthantheBorroweroranyAffiliateoftheBorrower) succeeding to all or substantially all of the corporate trust business of the Collateral Agent shall be the successor of the Collateral Agent under the Credit Documents without the execution orfiling of any paper or any further act on the part of anyof theparties hereto (provided, however, thatthe Collateral Agentshallprovide notice of such merger, conversion or consolidation, orsuchsaleortransfer,totheAdministrativeAgentandtheBorrower),exceptwhereaninstrument oftransferorassignmentisrequiredbylawtoeffectsuchsuccession,anythinghereintothe contrary notwithstanding.For the avoidance of doubt, any Person (other than the Borrower or any AffiliateoftheBorrower)whoshallsucceedto the Collateral Agent under the preceding sentence shall not be required to meet the requirements set forth in Section 11.6for a successor appointed by a retiring Agent.
Section11.2.Agents and Their Affiliates.Each Agent shall havethesame rightsandpowers under this Agreement and the other Credit Documents as anyother Lender and mayexercise or refrainfromexercisingsuchrightsandpowersasthoughitwerenotanAgent,andtheAgents andtheirAffiliatesmayacceptdepositsfrom,lendmoneyto,andgenerallyengageinanykindof business with the Borrower or anyAffiliate of the Borrower as if it were not an Agent under the CreditDocuments.Theterm“Lender”asusedhereinandinallotherCreditDocuments,unless the context otherwise clearly requires, includes the Administrative Agent and the Collateral Agent in their individual capacities as Lenders, if applicable.
Section11.3.ActionbyAgents.
(a)If the Administrative Agent receives from the Borrower a written notice of Default or an Event of Default pursuant to Section7.9hereof, the Administrative Agent shall
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promptly give each of the Lenders written notice thereof.The obligations of the Agents under the Credit Documents are onlythose expresslyset forththerein.Withoutlimitingthe generality of the foregoing, no Agent shall be required to take anyaction under anyCredit Document with respect to any Default or Event of Default.
(b)The Administrative Agent shall be entitled to assume that no Default or Event of DefaultexistsunlessnotifiedinwritingtothecontrarybyaLenderortheBorrower.Inallcases in which the Credit Documents do not require the Administrative Agent to take specific action, the Administrative Agent shall be fully justified in using its discretion in failing to take any action thereunder.Any instructions of the Required Lenders, or of any other group of Lenders called for under the specific provisions of the Credit Documents, shall be binding upon all the LendersandtheholdersoftheObligations.TheAdministrativeAgentshallnothaveanydutyto take any discretionary action or exercise any discretionary power hereunder or under any Credit DocumentexceptasexpresslyinstructedinaccordancewiththetermsofsuchCreditDocument; providedthat theAdministrativeAgentshall not berequiredtotakeanyactionwhichiscontrary to any provision of the Credit Documents or Applicable Law, including, for the avoidance of doubt, any action that may be in violation of the automatic stay or that may effect a forfeiture, modification or termination of a property interest in violation of any applicable bankruptcy/insolvency laws and the Administrative Agent shall in all cases be fully justified in failing or refusing to act under this Agreement or any other Credit Document unless it first receives further assurances of its indemnification from the Lenders or the Borrower that the Administrative Agent reasonably believes it may require, including prepayment of any related expenses and anyotherprotection it requires against anyand all costs, expenses and liabilities it may incur in taking or continuing to take any such discretionary action at the direction of the Required Lenders.
(c)The Collateral Agent shall not be deemed to haveknowledgeof, or berequired to actupon,anyDefaultorEventofDefaultunlessanduntilnoticedescribingsuchDefaultisgiven to a responsible officer of the Collateral Agent in writing bythe Borrower or the Administrative Agent, referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default,” and the Collateral Agent shall have no duty to take anyaction to determine whether any such event has occurred.The Collateral Agent shall not have any duties or obligations except those expressly set forth herein and in the other Credit DocumentstowhichtheCollateralAgentisaparty,anditsdutieshereunderandthereundershall be administrative in nature.Without limiting the generality of the foregoing, the Collateral Agent:
(i)shall not be subject to anyfiduciaryor other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing;
(ii)shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated herebyorbytheotherCreditDocumentstowhichtheCollateralAgentisaspartythatthe Collateral Agent is required to exercise as directed in writing by the Administrative Agent; provided that the Collateral Agent shall not be required to take anyaction that, in
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its opinion or the opinion of its counsel, may expose the Collateral Agent to liability or that is contrary to any Credit Document or Applicable Law, including for the avoidance ofdoubtanyactionthatmaybeinviolationoftheautomaticstayunderanyDebtorRelief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and
(iii)shall not, except as expressly set forth herein and in the other Credit Documents to which the Collateral Agent is a party, have anydutyto disclose, and shall notbeliableforthefailuretodisclose,anyinformationrelatingtotheBorroweroranyof its Affiliates that is communicated to or obtained bythe Person serving as the Collateral Agent or any of its Affiliates in any capacity.
(d)The authority to enforce rights and remedies under this Agreement and other Credit Documents against the Borrower or shall be vested in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained by, the Administrative Agent for the benefit of all the Lenders and the LC Issuers.
Section11.4.LiabilityofAdministrativeAgent;CreditDecision.
(a)Neither the Administrative Agent nor its directors, officers, agents or employees shall be liable for any action taken or not taken by it in connection with the Credit Documents: (i)with the consent or at the request of the Required Lenders or (ii)in the absence of its own gross negligence or willful misconduct as determined in a final and non-appealablejudgment by acourtofcompetentjurisdiction.NotwithstandinganyotherprovisionoftheCreditDocuments, theCollateral Agent shall not beliableforanyactiontakenornot takenbyit (i)with theconsent or at the request or direction of the Administrative Agent or (ii) in the absence of its own gross negligence or willful misconduct as determined bya court of competent jurisdiction byfinal and nonappealable judgment.
(b)Neither Agent nor anyof their respective directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into or verify: (A)any statement, warrantyor representation made in connection with this Agreement, anyotherCredit Document oranyCreditEvent;(B)theperformanceorobservanceofanyofthecovenantsoragreementsof the Borrower or any other Person contained herein or in any other Credit Document; (C)the satisfaction of anyconditionspecified in Section6hereof, except receipt ofitems required to be delivered to the Administrative Agent or the Collateral Agent, as applicable; or (D)the validity, effectiveness, genuineness, enforceability, perfection, value, worth or collectabilityhereof or of any otherCreditDocumentorofany otherdocumentsorwriting furnishedinconnectionwith any Credit Document or of any Collateral; and neither Agent makes any representation of any kind or character with respect to any such matter mentioned in this sentence.The Agents may consultwithlegalcounsel,independentaccountantsandotherexpertsselectedbythem,andshall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
(c)Each Agent may execute any of its duties under any of the Credit Documents by orthrough employees,agents(including,withoutlimitation,affiliates),andattorneys-in-factand
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shall not be answerable to the Lenders, the Borrower, or any other Person for the default or misconduct of anysuch agents or attorneys-in-fact except to theextentthat acourt ofcompetent jurisdiction determines in a final and non-appealable judgment that such Agent acted with gross negligence or willful misconduct in the selection of such agent or attorney-in-fact.
(d)Each Agent shall (i)not incur any liability by acting in reliance upon any notice, consent, certificate, orotherdocument orstatement(whetherwritten ororal)believed byit to be genuine or to be sent bytheproper partyorparties and (ii) be entitled to conclusivelyrelyupon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed,sentorotherwiseauthenticatedbytheproperperson,ineachcase,totheextentdelivered or received in accordance with the terms of the Credit Documents.The Agents may also rely uponanystatementmadetoitorallyorbytelephoneandbelievedbyittohavebeenmadebythe proper person, and shall not incur any liability for relying thereon, in each case, to the extent delivered or received in accordance with the terms of the Credit Documents.
(e)In determining compliance with any condition to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, the Administrative Agent may presumethatsuchconditionissatisfactorytosuchLenderorLCIssuerunlesstheAdministrative Agent receives notice to the contraryfrom such Lender or LC Issuer prior to the making of such Loan or the issuance of such Letter of Credit.No Agent shall have any duty whatsoever to investigateorverifywhetheranysignatureisgenuineorauthorizedorwhethertheinformationin any such communication, instruction, certificate, notice or other document is genuine oraccurate.In particular and without limiting any of the foregoing, neither Agent shall be responsible for or have any duty to ascertain or inquire into (i)any statement, warranty or representationmadeinorinconnectionwiththisAgreementoranyotherCreditDocument, (ii)thecontentsofanycertificate,reportorotherdocumentdeliveredhereunderorthereunderor in connection herewith or therewith, (iii)the performance or observance of any covenant, agreementorothertermorconditionsetforthhereinorthereinor theoccurrence ofanydefault, (iv)thevalidity,enforceability,effectivenessorgenuinenessofthisAgreement,anyotherCredit Document or any other agreement, instrument or document, or (v)the satisfaction of any conditionsprecedentsetforthinthisAgreement,otherthantoconfirmreceiptofitemsexpressly required to be delivered to the applicable Agent.The Administrative Agentmaytreat thepayee of anyObligation as the holder thereof until written notice of transfer shall have been filed with theAdministrativeAgentsignedbysuchpayeeinformsatisfactorytotheAdministrativeAgent.
(f)In no eventshall anyAgent be required to expendorriskanyofitsownfundsor, exceptasprovidedinclause(a)ofthisSection11.4,otherwiseincurany liability,financialor otherwise, in the performance of its duties under the Credit Documents or inthe exerciseof any of its rights or powers under the Credit Documents.
(g)Each Lender acknowledges that it has independently and without reliance on the Administrative Agent, the Collateral Agent or any other Lender, and based upon such information, investigations and inquiries as it deems appropriate, made its own credit analysis
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anddecisiontoextendcredittotheBorrowerinthemannersetforthintheCreditDocuments.It shallbetheresponsibilityofeachLendertokeepitselfinformedastothecreditworthinessofthe Borrower and its Subsidiaries, and the Administrative Agent shall not have any liability to any Lender with respect thereto.For purposes of this Section11.4(g), the term “Lender” includes each LC Issuer.
(h)Neither Agent shall have any duty to disclose, and shall not be liable for the failure to disclose, except as expressly set forth in this Agreement and in the other Credit Documents, any information relating to the Borrower or any of its Affiliates that is communicatedtoorobtainedbytheAdministrativeAgentortheCollateralAgentoranyoftheir Affiliates in any capacity.
(i)NeithertheAdministrativeAgentnortheCollateralAgentshallincuranyliability fornotperforminganyactorfulfillinganyduty,obligationorresponsibilityhereunderbyreason ofanyoccurrencebeyond thecontrol ofsuchAgent (includingbut not limited toanyact ofGod, riots, wars, fires, earthquakes or other natural disasters, terrorism, provision of any present or futurelaw orregulation oract ofanygovernmental authority, civil unrest, labordispute,disease, epidemic or pandemic, quarantine, national emergency, utility failure, computer hardware or software failure, malware or ransomware attack, communications system failure, unavailability of the Federal Reserve Bank wire or telex system or other applicable wire or funds transfer system, or unavailability of any securities clearing system).
Section11.5. Indemnity.The Lenders shall ratably, in accordance with their respective Proportionate Shares, indemnifyand hold the Administrative Agent and theCollateral Agent, in their respective capacities hereunder, and their respective directors, officers, employees, agents, advisors, and representatives harmless from and against any liabilities, losses, costs or expenses suffered or incurred by any of them under any Credit Document or in connection with the transactions contemplated thereby (including without limitation, in the case of the Collateral Agent, the performance of the Collateral Agent’s obligations under any control agreement, includinganyamountspayablebytheCollateralAgenttoabankorsecuritiesintermediaryunder acontrolagreementforfees,expensesorindemnificationofthebankorsecuritiesintermediary), regardless of when asserted or arising, except to the extent theyarepromptlyreimbursed for the same by the Borrower and except to the extent that any event giving rise to a claim was caused by the gross negligence or willful misconduct of the party seeking to be indemnified as determined in a final and non-appealable judgment by a court of competent jurisdiction.The obligations ofthe LendersunderthisSection11.5shallsurviveterminationofthisAgreementor the resignation or removal of the applicable Agent.Each Agent shall be entitled to offset amounts received for the account of a Lender under this Agreement against unpaid amounts due fromsuchLendertosuchAgenthereunder(whetherasfundingsofparticipations,indemnitiesor otherwise), but shall not be entitled to offset against amounts owed to such Agent byanyLender arisingoutsideofthisAgreementandtheotherCreditDocuments.Tothefullestextent permitted by Applicable Law, in no event shall any Agent or its officers, directors, employees, agents and advisors (each such person being called an “Agent Indemnitee”) be liable, for indirect, special, punitive, consequential or exemplary damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit
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Document or the use of the proceeds thereof.No Agent Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated thereby.The Lenders herebyconfirm their obligations to the Depositarypursuant to Section 7.2(b) of the Depositary Agreement.
Section11.6.ResignationofAgentandSuccessorAgent.
(a)Either Agent may resign at any time by giving written notice thereof to the Lenders(inthecaseoftheAdministrativeAgent)ortheAdministrativeAgent(inthecaseofthe Collateral Agent) and the Borrower.The Borrower may require the Administrative Agent to resign in the event that the Borrower is required to pay any Indemnified Taxes or additional amounts to the Administrative Agent or any Governmental Authority for the account of the Administrative Agent pursuant to Section 12.1or Section 12.3.
(b)Upon the resignation of an Agent, the Required Lenders shall have the right toappoint a successor Agent.If no successor Agent shall have been so appointed bytheRequired Lenders,andshallhaveacceptedsuchappointment,withinthirty(30)daysaftertheretiring Agent’sgivingofnoticeofresignation,thentheretiringAgentmay(butshallnotberequiredto), on behalf of the Lenders, appoint a successor Agent which maybe anyLender hereunder or any commercialbankorganizedunderthelawsoftheUnitedStatesofAmericaorofanyState thereofandhavingacombinedcapitalandsurplusofatleast$500,000,000;providedthat, notwithstandinganyoftheforegoing,iftheBorrowershallfailtoprovideitsconsenttoa successorAgentwithinthirty(30)daysoftheretiringAgent’snoticeofresignation(andthe RequiredLendersshallotherwisehaveappointedasuccessorAgentinaccordancewiththis clause(b))oriftheRequiredLendersshallhavefailedtoappointasuccessorAgentin accordancewiththisclause(b),theretiringAgentshallbeentitledtoapplytoacourtof competent jurisdiction for the appointment of a successor Agent or for other appropriate relief. The reasonable and documented out-of-pocket costs and expenses (including its reasonable and documented out-of-pocket attorneys’ fees and expenses) incurred by the Agents in connection with such proceeding shall be paid by the Borrower.Notwithstanding the foregoing, unless an Event of Default has occurred and is continuing, no successor Agent shall be appointed without the consent of the Borrower (which consent shall not be unreasonablywithheld or delayed).
(c)Upon the acceptance of its appointment as the Administrative Agent or the CollateralAgenthereunder,suchsuccessorAgentshallthereuponsucceedtoandbecomevested with all the rights and duties of the retiring Agent under the Credit Documents, and the retiring Agent shall be discharged from its duties and obligations in such capacity thereunder first accruedafterthedateofsuchacceptance(otherthanitsdutiesandobligationsunder Section12.31of this Agreement).After any retiring Agent’s resignation hereunder, the provisions of this Section11, Section 12.24, Article 7 of the Depositary Agreement and all protectiveprovisions oftheCreditDocuments shallinureto itsbenefit astoanyactionstakenor omitted to be taken by it while it was an Agent, but no successor Agent shall in any event be liable or responsible for any actions of its predecessor.
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(d)If an Agent resigns and no successor is appointed within thirty(30) days of such Agent’s notice of resignation, the rights and obligations of such Agent shall be automatically assumed by the Required Lenders and (i)the Borrower shall be directed to make all payments due each Lender hereunder directly to such Lender and (ii)such Agent’s rights in the Security Documents(ifany)shallbeassignedwithoutrepresentation,recourseorwarrantytotheLenders as their interests may appear.
Section 11.7.[Reserved].
Section11.8.Designation of Additional Agents.With the prior consent of the Borrower, the Administrative Agent shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as “syndication agents,” “documentation agents,” “book runners,” “leadarrangers,”“arrangers,”or otherdesignationsforpurposeshereto,butsuchdesignationshallhavenosubstantiveeffect,and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof.
Section11.9.ErroneousPaymentstoAdministrativeAgent.
(a)Each Lender hereby agrees that (i)if the Administrative Agent notifies such Lender that the Administrative Agent has determined in its sole discretion that any funds received bysuch Lender from the Administrative Agent or anyof its Affiliates were mistakenly or erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Lender (whether or not known to such Lender) (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, an “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such Lender shall promptly, but in no event later than two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined bythe Administrative Agent in accordance with banking industryrules oninterbank compensation from time to time in effect and (ii)to the extentpermitted byapplicablelaw,such Lender shall not assert any right or claim to the Erroneous Payment, and hereby waives, any claim,counterclaim,defenseorrightofset-offorrecoupmentwithrespecttoanydemand,claim or counterclaim bythe AdministrativeAgentforthereturnofanyErroneousPaymentsreceived, includingwithoutlimitationwaiverofanydefensebased on“dischargeforvalue”oranysimilar doctrine.A notice of the Administrative Agent to any Lender under this clause(a)shall be conclusive, absent manifest error.
(b)Without limiting immediately preceding clause(a), each Lender hereby further agrees that if it receives an Erroneous Payment from the Administrative Agent (or any of its Affiliates)(x)thatisinadifferentamountthan,oronadifferentdatefrom,thatspecifiedina noticeofpaymentsent bytheAdministrativeAgent(oranyofitsAffiliates)withrespecttosuch Erroneous Payment (an “Erroneous Payment Notice”), (y)that was not preceded or
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accompaniedbyanErroneousPaymentNotice,or(z)thatsuchLenderotherwisebecomesaware was transmitted, or received, in error or by mistake (in whole or in part), in each case, an error has been made (and that it is deemed to have knowledge of such error at the time of receipt of such Erroneous Payment) with respect to such Erroneous Payment, and to the extent permitted byapplicablelaw, such Lendershall notassertanyright orclaim to theErroneous Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payments received, including without limitation waiver of any defense based on “discharge for value” or any similar doctrine. Each Lender agrees that, in each such case, it shall promptly (and, in all events, within two (2) Business Days of its knowledge (or deemed knowledge) of such error) notify the Administrative Agent of such occurrence and, upon demand from the Administrative Agent, it shall promptly, but in all events no later than two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect.
(c)The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or anyof its Subsidiaries, except, in each case, to the extent such Erroneous Payment(solelywithrespect to theamount of such Erroneous Payment that is comprised of funds received by the Administrative Agent from the Borrower or any of its Subsidiaries) is not returned by the recipient in accordance with this Section11.9, in which case it shall discharge, dollar for dollar, Obligations owed by the Borrower to such recipient.The Borrower shall be permitted to enforce this Section11.9, and the parties hereto agree that remedies at law may not be a sufficient remedy and that the Borrower shall be entitled to specific performance of the terms of this Section11.9, without the necessity of proving the inadequacy of money damages as a remedy, in addition to any other remedy at law or in equity.
(d)Each party’s obligations under this Section11.9shall survive the resignation or replacementoftheAdministrativeAgent,theterminationoftheCommitmentsortherepayment, satisfaction or discharge of all Obligations (or anyportion thereof) under anyCredit Document.
(e)ForpurposesofthisSection11.9,theterm“Lender”includeseachLCIssuer.
Section11.10.Independent Consultants.Administrative Agent, in its reasonable discretion, may remove from time to time, any one or more of the Independent Consultants and appoint replacements reasonably acceptable to Borrower.Notice of any replacement Independent Consultant shall be given by Administrative Agent to Borrower, the Lenders and to the Independent Consultant being replaced.All reasonable fees and expenses of the Independent Consultants (whether the original Independent Consultants or replacements) shall be paid by Borrower;provided,however,thatunless a Default or an Event of Default shall have occurred
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and be continuing, Administrative Agent shall request that each such Independent Consultant provide Borrower with its proposed scope of work and proposed budget therefor, and shall consult with andseek the consent of Borrower (such consent not to beunreasonablywithheld or delayed) with regard to the matters contained therein.
Section11.11.CollateralAgent.
(a)Each Lender authorizes and directs the Collateral Agent to enter into the Credit Documents to which the Collateral Agent is a party on the date hereof on behalf of and for the benefit of the Secured Parties.Whether or not so expressly stated therein, in entering into, or taking (or forbearing from) any action under pursuant to, the Credit Documents, the Collateral Agent shall have all of the rights, immunities, indemnities and other protections granted to it underthisAgreement(inadditiontothosethatmaybegrantedtoitunderthetermsofsuchother agreement or agreements).
(b)Delivery of reports, documents and other information to the Collateral Agent is for informational purposes only and the Collateral Agent’s receipt of the foregoing shall not constitute constructive knowledge of any event or circumstance or any information contained therein or determinable from information contained therein.Information contained in notices, reports or other documents delivered to the Collateral Agent and other publicly available information shall not constitute actual or constructive knowledge.
(c)Notwithstanding any provision of this Agreement or the other Credit Documents to the contrary, before taking or omitting any action to be taken or omitted by the Collateral Agent under the terms of this Agreement and the other Credit Documents, the Collateral Agent may seek the written direction of the Administrative Agent (which written direction may be in the form of an email), and the Collateral Agent shall be entitled to rely(and is fullyprotected in so relying) upon such direction.The Collateral Agent shall not be liable with respect to any action taken or omitted to be taken by it in accordance with such direction.If the Collateral Agent requests such direction with respect to any action, the Collateral Agent is entitled to refrain from such action unless and until the Collateral Agent has received such direction, and the Collateral Agent does not incur liability to any Person by reason of so refraining.If the Collateral Agent so requests, it must first be indemnified to its satisfaction by the Lenders against any and all fees, losses, liabilities and expenses which maybeincurred bytheCollateral Agent by reason of taking or continuing to take, or omitting, any action directed by the Administrative Agent.Any provision of this Agreement or the other Credit Documents authorizingthe Collateral Agent to take anyaction does not obligate theCollateral Agent to take such action.Notwithstanding anything else to the contrary herein or in the other Credit Documents, whenever reference is made in this Agreement oranyotherCredit Document to any discretionary action by, consent, designation, specification, requirement or approval of, notice, requestorothercommunicationfrom,orotherdirectiongivenoractiontobeundertakenortobe (or not to be) suffered or omitted by the Collateral Agent or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies to be made (or not to be made) by the Collateral Agent, it is understood that the Collateral Agent shall
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be acting at the direction of the Administrative Agent and shall be fully protected in acting pursuant to such directions.
(d)If at any time the Collateral Agent is served with any judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process (including, but not limited to, orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of any Collateral), the Collateral Agent is authorized to comply therewith in any manner as it or its legal counsel of its own choosing deems appropriate; and if the Collateral Agent complies with any such judicial or administrative order, judgment, decree, writorotherformofjudicialoradministrativeprocess,theCollateralAgentshallnotbeliableto anyofthepartiesheretoortoanyotherPersoneventhoughsuchorder,judgment,decree,writor process may be subsequently modified or vacated or otherwise determined to have been without legal force or effect.
(e)Not less than four (4) Business Days (or such shorter period as may be agreed to by the Collateral Agent) prior to any payment, distribution or transfer of funds bythe Collateral AgenttoanyPersonundertheCreditDocuments,thepayeeshallprovidetotheCollateralAgent such documentation and information as may be requested by the Collateral Agent (unless such Person has previously provided the documentation or information, and so long as such documentation or information remain accurate and true).The Collateral Agent shall have no duty,obligationorliabilitytomakeanypaymenttoanyPersonunlessithastimelyreceivedsuch documentation and information with respect to such Person, which documentation and information shall be reasonably satisfactory to the Collateral Agent.The Collateral Agent shall have no responsibilityforinterest orincome onanyfunds held byit undertheCredit Documents and any funds so held shall be held uninvested pending distribution thereof.
(f)The Collateral Agent shall not be responsible for and shall not have any obligation whatsoever to assure (i) that the Collateral exists or is owned (whether in fee or by leasehold) by the Person purporting to own it, or is cared for, protected, or insured or has been encumbered, (ii) the genuineness or value of any Collateral or the validity or sufficiency of any agreementcontainedthereinorthevalidityofthetitleofanyLoanPartytotheCollateral,or(iii) that the Liens granted to the Collateral Agent herein or pursuant to the Credit Documents have beenproperlyorsufficientlyorlawfullycreated,perfected,protected,orenforced,orareentitled to any particular priority.Notwithstanding anything contained in the Credit Documents or otherwise to the contrary, the Collateral Agent shall not have any duty to (i) file or prepare any financingorcontinuationstatementsorrecordanydocumentsorinstrumentsinanypublicoffice forpurposesofcreating,perfectingormaintaininganyLienorsecurityinterestcreatedunderthe Credit Documents or otherwise; (ii) take any steps to preserve rights against any Person with respect to any Collateral; (iii) insure, monitor or maintain the Collateral; (iv) pay any taxes, charges, assessments or liens upon the Collateral; or (v) take any action to protect against any diminution in value of the Collateral.The actions described in items (i)through (v)shall bethe sole responsibility of the Borrower.
(g)IntheeventthattheCollateralAgentisrequiredtoacquiretitletoanassetforany reason, or take any managerial action of any kind in regard thereto, in order to carry out any
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obligation for the benefit of another, which in the Collateral Agent’s sole discretion may cause the Collateral Agent to be considered an “owner or operator” under anyEnvironmental Laws or otherwise cause the Collateral Agent to incur, or be exposed to, any environmental liability or anyliabilityunder anyApplicable Law, the Collateral Agent reserves the right, instead of taking suchaction,eithertoresignasCollateralAgentortoarrangeforthetransferofthetitleor controloftheassettoacourtappointedreceiver(attheexpenseoftheBorrower).TheCollateral AgentwillnotbeliabletoanyPersonforanyenvironmentalliabilityoranyenvironmental claims or contribution actions under anyEnvironmental Law byreason of the Collateral Agent’s actions and conduct as authorized, empowered and directed hereunder or relating to any kind of dischargeorreleaseorthreateneddischargeorreleaseofanyHazardousMaterialsintothe environment.
(h)TheCollateralAgent’ssoledutywithrespecttothecustody,safekeepingand physical preservation of theCollateral in its possession, under the UCC orotherwise, shall be to dealwithitinthesamemannerastheCollateralAgentdealswithsimilarpropertyforthe account of other customers in similar transactions.The Collateral Agent shall be accountable only foramountsthatitactually receivesasaresultoftheexerciseofitsrightsandpowers. ExceptforreasonablecareandpreservationoftheCollateralinitspossession(asdescribed above) and the accounting for moneys actually received by it hereunder, the Collateral Agentshall have no dutyas to the collection or protection of the Collateral or anyincome thereon,nor astothepreservationofrightsagainstpriorparties,norastothepreservationofanyrights pertaining thereto.
(i)TheCollateralAgentshallbeentitledtorelyonanydirection,instruction,request, consent or other communication from the Administrative Agent without inquiryinto whether the AdministrativeAgenthasreceivedany concurrenceordirection of any Secured Parties.The Collateral Agent shall not have any obligation or duty with respect to the identity of any Lender or any other Secured Party or the amount of any Obligations owing to any Secured Party, andmayrelyexclusivelyoninformationprovidedbytheAdministrativeAgentinconnectiontherewith. TheCollateralAgentmayrelywithoutinvestigationonadeterminationbythe Administrative Agent regarding whether or not the Required Lenders or any Lender has takenanyaction or given anydirection, request, consent or approval, required or permitted to be given or taken, as applicable, under the Credit Documents.The Collateral Agent shall have no duty, obligation or liabilitywith respect to the identities of the Lenders, the amount of the Loan or any portionthereofheldby any Lender,theRegisterortheamountoftheObligations(otherthan amountspayabletotheCollateralAgent),andtheCollateralAgentmayrelyonthe Administrative Agent’s determination with respect to all such matters.
SECTION12.MISCELLANEOUS.
Section12.1.Payments Free of Withholding Taxes.Any and all payments by or on account ofanyobligationofanyLoanPartyunderanyCreditDocumentshallbemadewithoutdeduction or withholding for anyTaxes, except as required byApplicable Law.If anyApplicable Law(as determinedinthegoodfaithdiscretionoftheapplicableLoanPartyortheAdministrativeAgent) requires the deduction or withholding of anyTax from anysuch payment bysuch Loan Partyor
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the Administrative Agent, then the applicable Loan Party or the Administrative Agent shall be entitled to make such deduction or withholding and shall timelypaythe full amount deducted or withheldtotherelevantGovernmentalAuthorityinaccordancewithApplicableLawand,ifsuch Tax is an Indemnified Tax, then thesum payable bytheapplicable LoanPartyshall beincreased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings of Indemnified Taxes applicable to additional sums payable under this Section12.1) the applicable Lender or Agent receives an amount equal to the sum it would have received had no such deduction or withholding been made.
Section12.2.Payment of Other Taxes by the Borrower.The Borrower shall timely pay to the relevant Governmental Authorityin accordance with Applicable Law, or at theoption ofthe Administrative Agent timelyreimburse it for the payment of, anyOther Taxes.
Section12.3.Indemnification by the Borrower.The Borrower shall indemnify each Lender or Agent, within ten(10) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payableunderthis Section12)payableorpaid byanysuchLenderorAgentorrequired tobewithheldordeductedfromapaymenttosuchLenderorAgentandanyreasonableexpenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.A certificate as to the amount of such payment or liability delivered to the applicable Loan Party by such Lender or Agent shall be conclusive evidence as to the amount thereof, absent manifest error.
Section12.4.Evidence of Payments.As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section12, such Loan Party shall deliver to the Administrative Agent the original or certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonablysatisfactoryto the Administrative Agent.
Section 12.5.Status of Lender.
(a)If any Lender is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Credit Document, it shall deliver to each Loan Party and the Administrative Agent, on orprior to thedatesuch Lender acquires aninterest in a Loan, and subsequently, at the time or times reasonably requested by any Loan Party or the Administrative Agent, such properly completed and executed documentation reasonably requested as will permit such payments to be made without withholding or at a reduced rate of withholding.Inaddition,eachLender,onorpriortothedatesuchLenderacquiresaninterestin a Loan, and subsequently, if reasonably requested by any Loan Party or the Administrative Agent, shall deliver such other documentation prescribed byApplicable Law or so requested by such Loan Party or the Administrative Agent as will enable such Loan Party or the Administrative Agent todetermine whether ornot such Lender issubject tobackup withholding or information reporting requirements.Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in clauses(b)(i), (b)(ii)and (b)(iv)below) shall not be required if in such Lender’s reasonable judgment such completion, execution or submission
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would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of the Lender.
If a Loan Party becomes obligated to pay any Indemnified Taxes pursuant to this Agreement,eachLenderandtheAdministrativeAgentherebyagreetocooperatewithsuchLoan Party,atthecostandexpenseofsuchLoanParty,toavoidtheimpositionofsuchTax,including, withoutlimitation,bydesignatingadifferentlendingofficefortheLoansofsuchLender incurring such Tax or otherwise restructuring the transactions contemplated by this Agreement; provided that, such designation or restructuring will not, in the reasonable opinion of such Lender or the Administrative Agent, be disadvantageous to such Person.
Each Lender shall severally indemnify the Administrative Agent, within 10 days after demandtherefor,for(i)anyIndemnifiedTaxesattributabletosuchLender(butonlytotheextent that the Borrower has not already indemnified the Administrative Agent for such Indemnified TaxesandwithoutlimitingtheobligationoftheBorrowertodoso),(ii)anyTaxesattributableto such Lender’s failure to complywith the provisions of Section 12.18relating to themaintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Credit Document, andanyreasonableexpensesarisingtherefromorwithrespectthereto,whetherornotsuchTaxes were correctly or legally imposed or asserted by the relevant Governmental Authority.A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.Each Lender herebyauthorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (a).
(b)Without limiting the generalityof the foregoing, in the event that anyLoan Party is a U.S. Person,
(i)if any Lender is a U.S.Person it shall deliver to the Borrower (for the benefit of eachother LoanParty) andthe AdministrativeAgentonorpriortothedateon which such Lender becomes party to this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of executed IRS FormW-9 certifying that such Lender is exempt from U.S.federal backup withholding tax;
(ii)ifanyLenderisnotaU.S.Personitshall,totheextentitislegallyentitled to do so, deliver to the Borrower (for the benefit of each other Loan Party) and the AdministrativeAgent(insuchnumberofcopiesasshallberequestedbytherecipient)on or prior to the date on which such Lender becomes party to this Agreement (and from timetotimethereafteruponthereasonablerequestoftheBorrowerortheAdministrative Agent), whichever of the following is applicable:
(1)in the case of a Lender that is not a U.S.Person claiming the benefits of an income tax treaty to which the United States is a party (x)with respect to
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paymentsofinterestunderanyCreditDocument,copiesofexecutedIRSFormW-8BEN orW-8BEN-E(or,ineachcase,anapplicablesuccessorform)establishinganexemption from, or reduction of, U.S.federal withholding tax pursuant to the“interest” article of such tax treaty and (y)with respect to any other applicable payments under any Credit Document, IRS FormW-8BEN or W-8BEN-E (or, in each case, an applicable successor form) establishing an exemption from, or reduction of, U.S.federal withholding tax pursuant to the “business profits” or “other income” article of such tax treaty;
(2)copiesofexecutedIRSFormW-8ECI;
(3)inthecaseofaLenderthatisnotaU.S.Personclaimingthe benefits of the exemption for portfolio interest under Section881(c) of the Code, (x)acertificate substantially in the form of ExhibitD-1to the effect that such Lender is not a “bank”withinthemeaningofSection881(c)(3)(A)oftheCode,a“10percentshareholder”oftheBorrowerwithinthemeaningofSection871(h)(3)(B)oftheCode,or a “controlled foreign corporation” related to the Borrower as described in Section881(c)(3)(C)oftheCode(a“U.S. TaxComplianceCertificate”)and(y) copiesofexecutedIRSFormW-8BEN or W-8BEN-E (or, in each case, an applicable successor form); or
(4)totheextentaLenderthatisnotaU.S.Personisnotthebeneficial owner, copies of executed IRS FormW-8IMY, accompanied byIRSFormW-8ECI,IRS FormW-8BENorW-8BEN-E(or,ineachcase,anapplicablesuccessorform),a U.S.Tax ComplianceCertificatesubstantiallyin the form of ExhibitD-2or ExhibitD-3, IRS FormW-9, and/or other certification documents from each beneficial owner, as applicable; provided that, if such Lender is treated as a partnership for U.S.federal income tax purposes and one or more direct or indirect partners of such Lender are claiming the portfolio interest exemption, such Lender may provide a U.S.Tax Compliance Certificate substantiallyin the form of ExhibitD-4hereto on behalf of each such direct and indirect partner.
(iii)anyLenderthatisnotaU.S.Personshall,totheextentitislegallyentitled to do so, deliver to the Borrower (for the benefit of each other Loan Party) and the Administrative Agent (in such number of copies as shall be requested) on or prior to the date on which such Lender becomes party to this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), copies of any other executed form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S.federal withholding tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower, any other Loan Party or the Administrative Agent to determine the withholding or deduction required to be made; and
(iv)if a payment made to any Lender under any Credit Document would be subject to U.S. federal withholdingtax imposed byFATCA if such Lenderwere to fail to complywith the applicable reportingrequirements of FATCA (includingthose contained inSection1471(b)or1472(b)oftheCode,asapplicable),suchLendershalldelivertothe Borrower and the Administrative Agent at the time or times prescribed by Applicable Law
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and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Law (including as prescribed by Section1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for any Loan Party and the Administrative Agent to comply with its obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations underFATCAortodeterminetheamount,ifany,todeductandwithholdfromsuch payment. Solelyforpurposesofthisclause(iv),“FATCA”shallincludeany amendments made to FATCA after the date of this Agreement.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in anyrespect, it shall updatesuch form or certification or promptlynotify theBorrowerandtheAdministrativeAgentinwritingofitslegalinabilitytodoso.Forpurposes of Section 12.5, the term “Lender” includes each LC Issuer.
Section12.6.Status of the Administrative Agent.On or before the date on which Natixis, New York Branch (and any successor or replacement Administrative Agent) becomes the Administrative Agent hereunder, it shall deliver to the Borrower two copies of duly executed IRS Form W-9, W-8ECI or W-8BEN-E (as applicable with respect to any payments to be received on its own behalf) and IRS Form W-8IMY or W-9 (as applicable for all other payments).
Section 12.7.TreatmentofCertainRefunds. IfanyLenderortheAdministrativeAgent determines,initssolediscretionexercisedingoodfaith,thatithasreceivedarefundofany TaxesastowhichithasbeenindemnifiedpursuanttothisSection12.7,itshallpaytothe Borrower in an amount equal to such refund but onlyto the extent of indemnitypayments made or additional amounts paid by the Borrower under this Section12with respect to Taxes giving risetosuchrefund,netofalloutofpocketexpenses(includingTaxes)ofsuchLenderorthe AdministrativeAgentandwithoutinterest(otherthananynetinterestpaidbytherelevant Governmental Authoritywith respect to such refund).Notwithstandinganythingtothecontrary in this Section12.7, in no event will anyLender or the Administrative Agent be required to pay any amounttotheBorrowerpursuanttothisSection12.7,thepaymentofwhichwould place suchLenderortheAdministrativeAgentinalessfavorablenetafter-taxpositionthansuch LenderortheAdministrativeAgentwouldhavebeen in ifthetax subject toindemnificationand givingrisetosuchrefundhadnotbeendeducted,withheldorotherwiseimposedandthe indemnification payments or additional amounts giving rise to such tax had never been paid.Each LoanParty,upontherequestofanyLenderortheAdministrativeAgent,agreestorepayto suchLenderortheAdministrativeAgenttheamountpaidovertotheBorrower(plusany penalties,interestorotherchargesimposedbytherelevantGovernmentalAuthority)ifsuch LenderortheAdministrativeAgentisrequiredtorepaysuchrefundorreductiontosuch Governmental Authority.This Section12.7shall not be construed to require any Lender or the Administrative Agent to make available its Tax Returns (or anyother information relating to its taxes which it deems confidential) to the Borrower or any other Person.
Section12.8.DefinedTerm.ForpurposesofSections12.1through12.7,theterm“Applicable Law” includes FATCA.
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Section12.9.Survival.Eachparty’sobligationsunderSections12.1through12.7shallsurvive the resignation or replacement of any Agent or any assignment of rights by, or the replacement of,aLender,theterminationoftheCommitmentsandtherepayment,satisfactionordischargeof all Obligations (or any portion thereof) under any Credit Document.
Section12.10.No Waiver, Cumulative Remedies.No delay or failure on the part of the AdministrativeAgentoranyLenderoronthepartoftheholderorholdersofanyofthe Obligations in the exercise of any power or right under any Credit Document shall operate as a waiverthereoforasanacquiescenceinanydefault,norshallanysingleorpartialexerciseofany powerorrightprecludeanyotherorfurtherexercisethereofortheexerciseofanyotherpoweror right.The rights and remedies hereunder of the Administrative Agent, the Lenders and of the holder or holders of anyof the Obligations are cumulative to, and not exclusive of, anyrights or remedies which any of them would otherwise have.
Section12.11.Non-Business Days.If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable.In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest.
Section12.12.Survivalof Representations.All representations and warrantiesmadehereinor in anyotherCredit Document or in certificatesgivenpursuanthereto ortheretoshallsurvivethe execution and deliveryof this Agreement andtheotherCredit Documents, andshall continuein full force and effect with respect to the date as of which theywere made as long as anycredit is in use or available hereunder.
Section12.13.Survival of Indemnities.All indemnities and other provisions relative to reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respecttotheLoansandLettersofCredit,including,butnotlimitedto,Section2.11, Section10.3, and Section12.24hereof, shall survive the termination of this Agreement and the other Credit Documents and the payment of the Obligations.
Section12.14.SharingofSet-Off.EachLenderagreeswitheachotherLenderpartyheretothat ifsuchLendershallreceiveandretainanypaymentpursuanttoSection12.25hereofinexcessof its ratable share of payments on all such Obligations then outstanding to the Lenders, then such Lendershall purchaseforcash at facevalue, but without recourse, ratablyfrom eachoftheother LenderssuchamountoftheLoansorReimbursementObligations,orparticipationstherein,held by each such other Lenders (or interest therein) as shall be necessary to cause such Lender to sharesuchexcesspaymentratablywithalltheotherLenders;provided,however,thatifanysuch purchase is made by any Lender, and if such excess payment or part thereof is thereafter recovered from such purchasing Lender, the related purchases from the other Lenders shall be rescinded ratably and the purchase price restored as to the portion of such excess payment so recovered, but without interest.For purposes of this Section12.14, amounts owed to or recovered by the LC Issuer in connection with Reimbursement Obligations in which Lenders
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have been required to fund their participation shall be treated as amounts owed to or recovered by the LC Issuer as a Lender hereunder.The provisions of this Section12.14shall not be construed to apply to (x)any payment made by or on behalf of the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender and as a result of theoperation of Section 2.14hereof or, so long as no Default or Event of Default has occurred and is continuing, the payment of Loans on the applicable Maturity Date with respect to such Lender), (y)the application of cash collateralprovidedforinthisAgreement,or(z)anypaymentobtainedbyaLenderas consideration for the assignment of or sale of a participation in any of its Loans or subparticipations in LC Obligations to any assignee or participant.
Section12.15.Notices.Except as otherwise specified herein, all notices hereunder and under the other Credit Documents shall be in writing (including, without limitation, notice by electronic communication) and shall be given to the relevant partyat its address set forth below, or such other address as such party may hereafter specify by notice to the Administrative Agent and the Borrower, bycourier, byUnitedStatescertified orregisteredmail, orbyotherelectronic communicationcapableofcreatingawrittenrecordofsuchnoticeanditsreceipt.Noticesunder the Credit Documents to any Lender shall be addressed to its address set forth on its Administrative Questionnaire; and notices under the Credit Documents to the Borrower or the Administrative Agent shall be addressed to their respective addresses set forth below:
| MN8DevCo3LLC1155 Avenue of the Americas 27thFloor,NewYork,NY10036 Attention:General Counsel Email: | |||||||||||
| IftotheDevcoBorrower: | |||||||||||
| notices@mn8energy.comnotices@mn8energy.com | |||||||||||
| Withcopyto: | |||||||||||
| MN8EnergyLLC1155 Avenue of the Americas 27thFloor,NewYork,NY10036 Attention:General Counsel Email: | |||||||||||
| notices@mn8energy.comnotices@mn8energy.com | |||||||||||
| MN8BleekerLLC1155 Avenue of the Americas 27thFloor,NewYork,NY10036 Attention:General Counsel Email: | |||||||||||
| IftotheOpcoBorrower: |
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| notices@mn8energy.comnotices@mn8energy.com | |||||||||||
| Withcopyto: | |||||||||||
| MN8EnergyLLC1155 Avenue of the Americas 27thFloor,NewYork,NY10036 Attention:General Counsel Email: | |||||||||||
| notices@mn8energy.comnotices@mn8energy.com | |||||||||||
| Natixis,NewYorkBranch,asAdministrativeAgent1251 Avenue of the Americas, 5th FloorNew York, NY 10020Attention:HanaBecklesEmail:adminagency@natixis.com | |||||||||||
| IftotheAdministrativeAgent: | |||||||||||
| IftotheCollateralAgent: | Natixis,NewYorkBranch,asCollateralAgent1251 Avenue of the Americas, 5th FloorNew York, NY 10020Attention:DanielFaheyEmail:adminagency@natixis.com;daniel.fahey@natixis.com |
Each such notice, request or other communication shall be effective (i)if givenbymail, five(5) daysaftersuchcommunicationisdepositedinthemail,certifiedorregisteredwithreturnreceipt requested, addressed as aforesaid, or (ii)if given by any other means, when delivered at the addresses specified in this Section12.15or in the relevant Administrative Questionnaire; provided that, anynotice given pursuant to Section 2hereof shall be effective onlyupon receipt.
Section12.16.Counterparts.This Agreement maybe executedin anynumberof counterparts, and by the different parties hereto on separate counterpart signature pages, and all such counterparts taken together shall be deemed to constitute one and the same instrument.A facsimile or portable document format (“pdf”) signature page shall constitute an original for purposes hereof. The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby (including without limitation the Credit Documents, certificates, notices, consents, borrowing request and other documents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system,as thecasemaybe, to theextentandasprovidedforinanyapplicablelaw,includingthe Federal Electronic Signatures in Global and National Commerce Act, the New York State
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Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
Section12.17.Successors and Assigns.This Agreement shall inure to the benefit of and be binding upon the Borrower and its successors and permitted assigns, and shall inure to the benefit of and be binding on the Administrative Agent and each of the Lenders and their respective successors and permitted assigns, including any subsequent holder of any of the Obligations.NeitheroftheDevcoBorrowernortheOpcoBorrowermayassignanyofitsrights orobligationsunderanyCreditDocument(otherthanassignmentsasamatteroflawpursuantto amergerordissolutionpermittedbySection8.4hereof)exceptwiththewrittenconsentofallof the Lenders, and anysuch assignment without such consent shall be void and of no effect.
Section12.18.Participants.Following the Financial Closing Date, each Lender may sell participations to one or more banks, financial institutions or other Persons in all or a portion of itsrightsandobligationsunderthisAgreementwithouttheconsentoftheBorrower,the AdministrativeAgentoranyotherPerson;providedthat,theparticipantshallnotbecomea Lender (but shall, pursuant to the terms of the sale of such participation, be obligated to comply with Section12.33hereof as if the participant were a Lender) and (i)such Lender’s obligations underthisAgreement(includingitsCommitment)shallremainunchanged,(ii)suchLendershall remainsolelyresponsibletotheBorrowerfortheperformanceofsuchobligations,(iii)the Borrowershallcontinueto deal solely and directly with such Lender in connection with suchLender’srightsandobligationsunderthisAgreement,and(iv)noparticipantshallhaveanyright to approve any amendment or waiver of any provision of this Agreement, or anyconsent to any departure by any Person therefrom, except that such agreement may provide that such Lenderwill not agree to anymodification, amendment or waiver of the Credit Documents, without such participant’s consent, that would (a)increase the Commitments of such participant, (b)reduce theamountoforpostponeanyfixeddateforpaymentofanyObligationinwhichsuch participanthasaninterest(providedthat,noparticipant’sconsentshallberequiredforthe rescissionofanydefaultinterestimposedpursuanttoSection 2.9),or(c)releaseallor substantially all of the Collateral (except as otherwise provided for in the Credit Documents),and for the avoidance of doubt, no participant shall have any rights with respect to waivers ofdefaults or Events of Default.Any party to which such a participation has been granted shallhave the benefits of Sections 2.11and Section 10.3hereof except that any amount paid to such party under either such section shall not exceed the amount that would have been paid to suchLender insuchcircumstance.Any party towhichsucha participationhasbeen granted shall have the benefits and requirements of Sections 12.1through 12.11(it being understood that the documentation required under Section12.5shall be delivered to the participating Lender) to the sameextentasifitwereaLenderandhadacquireditsinterestbyassignmentpursuantto Section12.19;providedthatsuchpartyshallnotbeentitledtoreceiveanygreaterpaymentunder Sections12.1through 12.7with respect to any participation than its participating Lender would havebeenentitledtoreceive. TheBorrowerauthorizeseachLendertodisclosetoanyparticipant or prospective participant under this Section 12.18anyfinancial or other information pertaining to the Borrower or any Subsidiary, subject to the provisions of Section 12.33hereof. EachLenderthatsellsaparticipationshall,actingsolelyforthispurposeasanagentofthe Borrowerandeachother LoanParty,maintainaregisteronwhichitentersthenameandaddress
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ofeachparticipantandtheprincipalamounts(andstatedinterest)ofeachparticipant’sinterestin theLoansorotherobligationsundertheCreditDocuments(the“ParticipantRegister”);providedthat,noLendershallhaveanyobligationtodisclosealloranyportionoftheParticipant Register (including the identity of any participant or any information relating to a participant’s interestinanycommitments,loans,lettersofcreditoritsotherobligationsunderanyCredit Document) to any Person except to the extent that such disclosure is necessary to establish that suchcommitment,loan,letterofcreditorotherobligationisinregisteredformunder Section5f.103-1(c) of the United States Treasury Regulations and Section1.163-5(b)(1) of the proposed United States Treasury Regulations.The entries in the Participant Register shall beconclusiveabsentmanifesterror,andsuchLendershalltreateachPersonwhosenameis recordedintheParticipant Register as the owner of such participation for all purposes of thisAgreementnotwithstandinganynoticetothecontrary. Fortheavoidanceofdoubt,the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
Section 12.19. Assignments.
(a)AnyLendermayatanytimeassigntooneormorebanks,financialinstitutionsor other Persons all or a portion of such Lender’s rights and obligations under this Agreement (including all of its Commitment and the Loans at the time owing to it), subject to clause(c)below.
(b)The Borrower shall have the right to require an LC Issuer, at the Borrower’s sole expense and effort, upon notice to such LC Issuer and the Administrative Agent, to assign and delegate, without recourse, all its interests, rights and obligations under this Agreement to an assignee (whichis an AcceptableLC IssuingBankidentifiedbytheBorrower)thatshallassume such obligations (which assignee maybe a Lender, if a Lender accepts such assignment) if such LC Issuer is no longer an Acceptable LC Issuing Bank; provided that such LC Issuer shall have received payment of all amounts payable to it hereunder.
(c)Any assignment pursuant to Section12.19(a)must satisfy all of the following conditions:
(i)Acceptable Bank.The assignee shall, at the time of such assignment, be an Acceptable Bank.
(ii)No Partial Assignment.Solely with respect to LC Loans, the assignor must assign, and the assignee must assume, the LC Issuer’s entire Commitment and 100% of the LC Loans and participation interest in LC Obligations at the time owing to such LC Issuer.No LC IssuershallassignaportionorashareofsuchLC Issuer’srights and obligations under this Agreement with respect to a particular Letter of Credit (as opposed to all of such rights and obligations).
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(iii)RequiredConsents. Noconsentshallberequiredforanyassignment except:
(1)theconsentoftheAdministrativeAgentshallberequired;
(2)theconsentoftheBorrower(suchconsentnottobeunreasonably withheld or delayed) shall be required unless (x)an Event of Default hasoccurred and is continuing at the time of such assignment or (y)such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed tohaveconsentedtoanyassignmentunlessitshallobjecttheretobywrittennoticewithin ten (10) Business Days after having received notice thereof;
(3)theconsentofeachLCIssuer(suchconsentnottobeunreasonably withheld or delayed) shall be required if (1)such assignment is to a Person that is not a Lender,anAffiliateofsuchLenderoranApprovedFundwithrespecttosuchLenderor (2)that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding); and
(4)if the assignment is by an LC Issuer, then, with respect to all applicable outstanding Letters of Credit, replacement LettersofCreditshallbeissuedby the assignee LC Issuer simultaneously with the effectiveness of such assignment.
(iv)AssignmentandAcceptance.Thepartiestoeachassignmentshallexecute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500; provided, however, that if the assignee is a Lender, or an Affiliateof a Lender,suchprocessing and recordation feeshall not bedue, and the assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
(v)No Assignment to the Borrower.No such assignment or participation shall bemade to the Borrower or anyof its Affiliates orSubsidiaries without theconsent of each Lender.
(vi)No Assignment toNatural Persons.No such assignmentshall bemadeto a natural person.
(vii)NoAssignmenttoSanctionedPersons.Nosuchassignmentshallbemade to a Sanctioned Person.
SubjecttoacceptanceandrecordingthereofbytheAdministrativeAgentpursuantto Section12.19(d)below, from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interestassignedbysuchAssignmentandAcceptance,bereleasedfromitsobligationsunderthis Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and
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obligations under this Agreement, such Lender shall cease to be a party hereto)butshallcontinuetobeentitledtothebenefitsofSection12.13and12.24withrespectto facts and circumstances occurring prior to the effective date of such assignment, and notwithstanding the foregoing, shall continue to be bound by Section12.33hereof.Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section12.19(c)shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section12.18hereof.
(d)Register.The Administrative Agent, actingsolelyforthispurpose as an agent of the Borrower, shall maintain at one of its offices in New York, New York, a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders,and theCommitments of,andprincipalamounts of(andstatedinterest on)theLoansowingto,eachLenderpursuanttothetermshereoffromtimetotime (the“Register”).The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstandingnoticetothecontrary.TheRegistershallbeavailableforinspectionbythe Borrower andany Lender (for its own account), at any reasonable time and from time to timeupon reasonable prior notice.
(e)Any Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any such pledge or grant to a Federal Reserve Bank, and this Section12.19shall not apply to any such pledge or grant of a security interest; provided that, no such pledge or grant of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or secured partyfor such Lender as a partyhereto; provided, further, however, the right of any such pledgee or grantee (other than any Federal Reserve Bank) to further transfer all or anyportion of the rights pledged or granted to it, whether bymeans of foreclosure or otherwise, shall be at all times subject to the terms of this Agreement.
Section 12.20. Amendments.
(a)AnyprovisionofthisAgreementortheotherCreditDocuments(otherthan(x)in accordance with Section 12.20(b)(ii)and (y) any Fee Letter or any Permitted Hedging Agreements, which may only be amended in accordance with their terms) may be amended or waived if such amendment or waiver is in writing and is signed by (a)the Borrower, (b)the Required Lenders, and (c)if the rights or duties of any Agent, the Depositary or any LC Issuer are affected thereby, such Agent, the Depositaryor such LC Issuer, as applicable; provided that no amendment or waiver pursuant to this Section 12.20shall:
(i)(A)increase any Commitment of any Lender without the consent of each Lender(itbeingunderstoodthatawaiverofanyconditionprecedentorthewaiverofany DefaultshallnotconstituteanincreaseofanyCommitment),or(B)reducetheamountof orpostponethedateforanyscheduledpayment ofprincipal orinterest onanyLoanorof any Reimbursement Obligation or of any fee payable hereunder without the consent of the Lender to which such payment is owing or which has committed to make such Loan or
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Letter of Credit hereunder and other Lender directly affected thereby (including, without limitation, by modifying the definition of “Maturity Date”, “Construction Loan Maturity Date”, “Bridge Loan Maturity Date”, “LC Loan Maturity Date” or “Upsize Bridge LoanMaturityDate” orotherwise extendingthematuritydateofanyLoan orany of the Notes with respect to such Lender (and without limiting clause (iii)below));
(ii)without the consent of each Lender, (A) change the definition of “Required Construction Lenders”, “Required Lenders”, “Required Bridge Lenders” or “Required Upsize Bridge Lenders”, (B) change the provisions ofSection2.8(b)(i)(5), Section2.8(b)(i)(8),Section4.2,Section7.21,Section7.22,Section7.24,Section7.5, Section9.3,Section12.14,Section12.18,Section12.19,Section12.24hereof,orchange theprovisions ofthis Section12.20,(C)releaseorsubstituteallorsubstantiallyallofthe Collateral, release or substitute any guaranties under any of the Security Documents, or allow the release of funds from any Borrower Account for purposes of making a Restricted Payment, in each case other than in accordance with the terms hereof or the applicableCreditDocuments,(D)affectthenumberorpercentageofLendersrequiredto amend,waiveorotherwisetakeanyactionhereunderormakeanydeterminationorgrant anyconsenthereunderorunderanyotherCreditDocumentor(E)subordinatethe Obligations hereunder to any other Indebtedness or subordinate the Liens securing theObligations to Liens securing any other Indebtedness; and
(iii)unless signed by each Lender adversely affected thereby, (A)extend the applicableMaturityDate, but such MaturityDate maybe extended solelywith respect to such Lender with the consent of such Lender (no Lenderhavinganobligationtoprovide any such consent) (it being understood that a waiver of any Default,Event of Default, mandatoryprepayment (other than anymandatoryprepayment underSection2.8(b)(i)(5)or Section2.8(b)(i)(8)or mandatory reduction of Commitments shall not constitute an extension of any maturity date) or (B)modify any condition precedent to any Credit Event;
provided, however, that notwithstanding anything to the contrary contained herein, (w)no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased orextended without the consent of such Lender.No writing shall be required to give effect to the provisions of this Section 12.20, the Administrative Agent may, with the consent of Borrower only, amend, modify or supplement this Agreement or any other Credit Document to cure any ambiguity, omission, defect or inconsistency (as reasonably determined by Administrative Agent), in each case so long as such amendment, modification or supplement does not adversely affecttherightsofanyLender(orLCIssuer,ifapplicable)andtheLendersshallhavereceivedat leastfive(5)BusinessDays’priorwrittennoticethereofandAdministrativeAgentshallnothave received, within five Business Days of the date of such notice to the Lenders, a written notice from the Required Lenders stating that the Required Lenders object to such amendment.
No waiver, amendment, or modification of any provision of this Agreement or any Credit Documentthatadverselyaffectstherights,interestsordutiesofAdministrativeAgent,Collateral
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Agent, Depositary, an LC Issuer or a Permitted Hedging Counterpartyshall be effective without the written consent of such affected Person.
(b)BenchmarkReplacementSetting.
(i)BenchmarkReplacement.Notwithstandinganythingtothecontraryherein or in any other Credit Document, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause(a)of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposeshereunderandunderanyCreditDocumentinrespectofsuchBenchmarksetting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Credit Document and (y)if a Benchmark Replacement is determined in accordance with clause (b)of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Credit Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Credit Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.No Hedging Agreement shall be deemed to be a “Credit Document” for purposes of this Section 12.20.
(ii)Benchmark Replacement Conforming Changes.In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changesfromtimetotimeand,notwithstandinganythingtothecontraryhereinorinany other Credit Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without anyfurther action or consent of any other party to this Agreement or any other Credit Document.
(iii)Notices; Standards for Decisions and Determinations.The Administrative Agent will promptly notify the Borrower and the Lenders of (i)the implementation of any Benchmark Replacement and (ii)the effectiveness of any Benchmark Replacement Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement.The Administrative Agent will promptlynotifythe Borrower of the removal or reinstatement of any tenor of a Benchmark pursuant to Section12.20(b)(iv).Any determination, decision or election that maybe made bythe Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section12.20(b), including any determinationwithrespecttoatenor,rateoradjustmentoroftheoccurrenceor non-occurrenceofanevent,circumstanceordateandanydecisiontotakeorrefrainfrom taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent
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from anyother party to this Agreement or any other Credit Document, except, in each case, as expressly required pursuant to this Section 12.20(b).
(iv)Unavailability of Tenor of Benchmark.Notwithstanding anything to the contrary herein or in any other Credit Document, at any time (including in connection withtheimplementationofaBenchmarkReplacement),(i)ifthethen-currentBenchmark is a term rateand either(A) anytenor for such Benchmark is not displayed on ascreen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the administrator of such Benchmark or the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for suchBenchmarkisnotorwillnotberepresentativeorincompliancewithoralignedwith the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks, then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for any Benchmark settings atoraftersuchtime to remove such unavailable, non-representative, non-compliant or non-aligned tenor and (ii) if a tenor that was removed pursuant to clause (i)above either (A)is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B)is not, or is no longer, subject to an announcementthat it is not orwill not berepresentativeorincompliancewithoraligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.
(v)Benchmark UnavailabilityPeriod.UpontheBorrower’s receiptofnotice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a SOFR Borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted anysuch request into a request for a Borrowing of or conversion to Base Rate Loans.During a Benchmark UnavailabilityPeriod orat anytimethat atenorforthethen-currentBenchmark is not an Available Tenor, the component of Alternate Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Alternate Base Rate.
(vi)The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to any Benchmark, any component definition thereof or rates referenced in the definition thereof or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, such Benchmark or any other Benchmark prior to its discontinuance or unavailability, or (b)the effect,
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implementation or composition of any Benchmark Replacement Conforming Changes.The Administrative Agent and its affiliates or other related entities mayengage in transactions that affect the calculation of anyBenchmark,anyalternative,successororreplacementrate(includinganyBenchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower.The Administrative Agent may select information sources or services in itsreasonablediscretiontoascertainanyBenchmark,anycomponentdefinitionthereofor rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement,andshallhavenoliabilitytotheBorrower,anyLenderoranyotherpersonor entityfordamagesofanykind,includingdirectorindirect,special,punitive,incidentalor consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.
(vii)The Administrative Agent shall not be liable for any inability, failure or delayon its part to perform anyof its duties set forth in this Agreement as a result of the unavailability of Compounded SOFR (or other applicable Benchmark) and absence of a designated replacement Benchmark, including as a result of anyinability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Required Lenders, in providing anydirection, instruction, notice or information required orcontemplatedbythetermsofthisAgreementandreasonablyrequiredforthe performance of such duties.
Section 12.21. Non-Recourse.Notwithstanding any other provisionof the Credit Documents (but subject to the other terms of this Section 12.21), other than the express obligations of each Loan Party(each a “Non-Recourse Entity”) under each Credit Document to which such Person isaparty,thereshallbenorecoursewhatsoeveragainstanyNon-RecourseEntityoranyaffiliate, member, stockholder, officer, employee, director or partner of anyNon-Recourse Entity(each, a “Non-Recourse Party”) for anyliabilityto (including such liabilityas mayarise byoperation of law,whetherincontract,intortorstrictliabilityorinequity),orotherclaimof,the Administrative Agent, the Collateral Agent, the Depositary, the Lenders, the LC Issuer or theother Secured Parties or their respectiveaffiliates arisingout of, relatingto or in connection with this Agreement or the other Credit Documents or anybreach or default hereunder or thereunder, andtheAdministrativeAgent,theCollateralAgent,theDepositary,theLenders,theLCIssueror the other Secured Parties shall look solely to the Borrower (but not to any Non-Recourse Party) andtheCollateralandtherents,issues,profits,proceedsandproductsoftheCollateralin enforcing rights, remedies and obligations under and in connection with the Credit Documents. The foregoing provisions of this Section 12.21shall not constitute a waiver, release or discharge of(a)anyoftheobligationsoftheBorrower,or(b)anyoftheexpressobligationsofany Non-Recourse Partyunder each Credit Document to which such Person is a party, and the same shallcontinueuntilfullypaid,discharged,observed,orperformedinaccordancewithsuch Credit Document.As amaterial consideration of theBorrower executingtheCredit Documents, and without limiting the other provisions of this Section 12.21, but subject to the immediatelyprecedingsentence, the AdministrativeAgent, theCollateral Agent, theDepositary, the Lenders, the LCIssuerandthe otherSecuredParties expressly waive recourse against any entity other than the Borrower with respect to the Borrower’s obligations under the Operative Documents to
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whichitisaparty.Notwithstanding anything tothecontrary containedintheforegoing,itis expresslyunderstoodandagreed thatnothingcontainedin thisSection 12.21shallbedeemedto (i)limit in any respect the enforceability against any party to an Operative Document, including any Non-Recourse Entity, of such Operative Document in accordance with the express terms thereof;or(ii)releaseanyIndependentConsultantorlegalconsultantinitscapacityassuchfrom liability on account of any report, certification or legal opinion rendered in connection with the transactions contemplated hereby.
Section 12.22. Borrower Liability.
(a)As of the Financial Closing Date, the portion of the Construction Loan Commitments, the Bridge Loan Commitments, Upsize Bridge Loan Commitments, and LC Commitments allocable to each Project is set forth on Schedule 12.22(a).
(b)On the date on which the Back-Leverage Date for a Project shall have occurred, the Opco Borrower shall be deemed to assume from the Devco Borrower all Obligations of the Devco Borrower outstanding under the Credit Documents relatedtosuchProject, as well as any rights of Devco Borrower hereunder to request a Borrowing of Construction Loans or Bridge Loans or an issuance of a Letter of Credit with respect to any Commitments allocable to such Project.
(c)From and after the date on which Completion and SC Funding Date for each Project shall have occurred, (i) the Devco Borrower shall no longer be a Borrower under the Credit Documents and (ii) immediately after the assumption of all Projects pursuant to the foregoing clause (b), any obligations of the Devco Borrower set forth in the Credit Documents herebyareassignedto,andassumedby,theOpCoBorrower(and,uponsuchassumption,Devco Borrower shall automatically be released therefrom).
Section12.23.Headings.Section headings used in this Agreement are for reference only and shall not affect the construction of this Agreement.
Section12.24. Costs and Expenses; Indemnification.
(a)The Borrower shall pay promptly upon written notice from the Administrative Agent all reasonable and documented out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Agreementandtheotherdocumentstobedeliveredhereunder,whetherornotanydrawdownhas been made hereunder, including without limitation, the reasonable and documented fees andout-of-pocketexpensesof(i)onecounseland(ii)anytransaction-relatedexpensesrelatingtothe maintenance of a Debtdomain (or equivalent) website.The Borrower further agrees to pay all reasonable and documented costs and expenses in connection with (i) audits, (ii)appraisals and valuations,(iii)thepreparationorreviewofwaivers,consentsandamendments,(iv)questionsof interpretation of this Agreement, (v) the establishment of the validity and enforceability of this Agreement, (vi) the preservation or enforcement of rights of the Administrative Agent and the Lenders under this Agreement and other Credit Documents to be delivered hereunder, including conducting searches, filing fees and documentation fees, and (vii) the exercise of any right or
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remedy of any nature or kind contained herein or in any Credit Document, including, without limitation, all reasonable costs and expenses sustained by the Administrative Agent and the Lenders as a result of any failure by the Borrower to perform or observe any of its obligations hereunder, together with interest at the highest rate borne bythe Obligations when such amounts are overdue.Such costs and expenses shall be payablewhether or not a Loan is advanced under this Agreement.
(b)TheBorrowershalldefendandindemnifytheAdministrativeAgent,eachLender, each LC Issuer and each related party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, obligations, liabilities, penalties, judgments, costs and expenses of whatever kindornature,whetherornotwellfounded,meritoriousorunmeritorious,demanded,assertedor claimed by any Person against any Indemnitee in any way relating to, arising out of, in connection with, or as a result of (i)this Agreement, any other Operative Document or any agreement or instrument contemplated hereby or thereby, the Project, the performance by any party to any Credit Document of its obligations hereunder or thereunder, or any transactions contemplated under any Credit Document, (ii)any Loan or Letter of Credit or the use of the proceeds therefrom, (iii) any actual or alleged presence or Release of Hazardous Materials on, from, or to any property currently or formerly owned or operated by the Borrower, or any Environmental Liability or Environmental Claim related in any way to the Borrower or the Project,(iv) theexercisebytheAdministrativeAgent(ortheotherSecuredParties)oftheir rights and remedies (including foreclosure) under any Credit Document, (v)any claim, action, civil penaltyor fine, anysettlement and anyother kind of loss or liability, and all reasonable and documented costs and expenses (including reasonable and documented counsel fees and disbursements),incurredbyanyIndemniteeasaresultofconductoftheBorroweroranyoftheir directors, officers, employees, agents or advisors that violates any applicable Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions or (vi)any actual or prospective claim, litigation,investigationorproceedingrelatingtoanyoftheforegoing,whetherbasedoncontract, tort or any other theoryand regardless of whether any Indemnitee is apartythereto (but, in each case,limited,inthecaseoflegalfeesandexpenses,tothereasonableanddocumentedout-of-pocket fees, disbursements and other charges of (1)one counsel to all Indemnitees taken as a whole, (2) if reasonably necessary, additional counsel in the event of anyactual or potential conflict of interest between Indemnitees and (3)if reasonably necessary, one firm of local counsel in each relevant jurisdiction); provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from (x) the gross negligence or willful misconduct of such Indemnitee as determined in a final non-appealable judgment by a court of competent jurisdiction or (y)any dispute solely among Indemnitees other than any claims against an Indemnitee in its capacity or in fulfilling its role as an administrative agent or arranger or any similar role under anyfacilityand other than anyclaims arising out of anyact or omission of the Borrower or any of its Affiliates.This indemnityshall survive the resignation or removal of the Administrative Agent and the termination of this Agreement.Notwithstanding the foregoing, this Section 12.24(b)shall not apply to any loss attributable to any Taxes other than any Taxes that represent losses arising from any non-Tax claim.To the fullest extent permitted by
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Applicable Law, in no event shall any Indemnitee be liable, for indirect, special, punitive, consequential or exemplary damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Credit Document or the use of the proceeds thereof.No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection withthis Agreement or the other Credit Documents or the transactions contemplated thereby.
(c)A certificate of a Lender as to the amount of any such loss or expense shall be prima facie evidence as to the amountthereof, in theabsenceofmanifesterror.Theagreements in this Section12.24shall survive the termination of this Agreement and repayment of the Obligations.
(d)The Borrower herebyacknowledges and agrees that the obligations of the Devco Borrower set forth in Sections 7.1 and 7.2 of the Depositary Agreement shall survive the termination, discharge or releaseofthe DepositaryAgreement andthe resignationor removalof the Collateral Agent or the Depositary.Upon any such termination, discharge or release of the Depositary Agreement, Sections 7.1 and 7.2 of the Depositary Agreement shall be incorporated in this Agreement as if set forth in full herein on the date of this Agreement.
This Section12.24shall not apply with respect to Taxes other than any Taxes that representlosses,claims,damages,liabilitiesandrelatedexpensesarisingfromanyindemnifiable non-Tax claim.
Section 12.25. Set-off.If an Event of Default shall have occurred and be continuing, each Lender and each LC Issuer is hereby authorized by the Borrower at any time or from time to time, to the fullest extent permitted by law, upon providing written notice to the Administrative Agent, but without notice to the Borrower or to any other Person other than the Administrative Agent, any such notice being hereby expressly waived, to set-off and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured, and in whatever currency denominated, but not includingtrustaccounts)andanyotherindebtednessatanytimeowingbythat LenderorthatLC Issuer to or for the credit or the account of the Borrower, whether or not matured, against and on account of the overdue Obligations of the Borrower to that Lender or that LC Issuer under the Credit Documents, including, but not limited to, all claims of any nature or description arising out of or connected with the Credit Documents, irrespective of whether or not (a) that Lender or thatLCIssuershallhavemadeanydemandhereunderor(b)theprincipalofortheinterestonthe LoansandotheramountsduehereundershallhavebeenacceleratedpursuanttoSection9hereof.
Section12.26.EntireAgreement.TheCreditDocumentsconstitutetheentireunderstandingof the parties thereto with respect to the subject matter thereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby.
Section12.27.Governing Law.This Agreement and the other Credit Documents (except as otherwise specified therein), and the rights and duties of the parties hereto, shall be construed and governed in accordance with the laws of the State of New York.
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Section 12.28. Severability of Provisions.Any provision of any Credit Document which is unenforceableinanyjurisdictionshall,astosuchjurisdiction,beineffectivetotheextentofsuch unenforceabilitywithout invalidating the remaining provisions hereof or affecting the validityor enforceability of such provision in any other jurisdiction.All rights, remedies and powers provided in this Agreement and the other Credit Documents maybe exercised onlyto the extent that the exercise thereof does not violate anyapplicable mandatoryprovisions of law, and all the provisions of this Agreement and other Credit Documents are intended to be subject to all applicable mandatoryprovisions of law which maybe controlling and to be limited to the extent necessary so that they will not render this Agreement or the other Credit Documents invalid or unenforceable.
Section12.29.Construction.The parties acknowledge and agree that the Credit Documents shall not be construed more favorably in favor of any party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Credit Documents.The provisions of this Agreement relating to Subsidiaries shall only apply during such times as the Borrower has one or more Subsidiaries.Nothing contained herein shall bedeemed or construed to permit anyact oromission which is prohibited bytheterms of anySecurityDocument, the covenants and agreementscontainedhereinbeingin addition to and not in substitution for the covenants and agreements contained in the Security Documents.
Section12.30.Lenders’ Obligations Several.The obligations of the Lenders hereunder are severalandnotjoint.NothingcontainedinthisAgreementandnoactiontakenbytheLenders pursuantheretoshallbedeemedtoconstitutetheLendersapartnership,association,jointventure or other entity.
Section 12.31. Submission to Jurisdiction; Waiver of Jury Trial.
(a)Each of the Devco Borrower and Opco Borrower hereby submits to the nonexclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan,TheCityofNewYork,forpurposesofalllegalproceedingsarisingoutoforrelating to this Agreement, the other Credit Documents or the transactions contemplated hereby or thereby.Each of the Devco Borrower and Opco Borrower irrevocably waives, to the fullest extentpermitted bylaw,anyobjectionwhichtheymaynoworhereafterhavetothelayingofthe venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.
(b)EACH OF THE DEVCO BORROWER AND OPCO BORROWER, THE ADMINISTRATIVEAGENT,THECOLLATERALAGENT,THELENDERSANDTHE LC ISSUERS HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BYJURYINANYLEGALPROCEEDINGARISINGOUTOFORRELATINGTOANY CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.
(c)Each of the Devco Borrower and Opco Borrower agrees, to the fullest extent permittedbyApplicableLaw,thatafinaljudgmentinanysuit,actionorproceedingofthenature referred to in this Section 12.31brought in any such court shall be conclusive and binding upon
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it subject to rights of appeal, as the case maybe, and maybeenforced in thecourts of theUnited States of America or the State of New York (or anyother courts to the jurisdiction of which it or anyof its assets is or maybe subject) bya suit upon such judgment.
(d)Nothing in this Section12.31shall affect the right of anyLender or LC Issuer to serve process in any manner permitted by law, or limit any right that any Lender or LC Issuer may have to bring proceedings against the parties hereto in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.
Section12.32.USAPATRIOTACT.EachLenderthatissubjecttotherequirementsofUnited States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect (the“PATRIOT Act”) hereby notifies the Borrower that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the PATRIOT Act.
Section12.33.Confidentiality.Each of the Agents, the Lenders and the LC Issuers agree to maintaintheconfidentialityoftheInformationandtheCreditDocuments(andthetermsthereof) and agrees touse all reasonable efforts topreventthedisclosurethereof,exceptthat Information and the Credit Documents (and the terms thereof) may be disclosed (a) to its branches and Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and Credit Documents (and the terms thereof) and instructed to keep such Information and Credit Documents (and the terms thereof) confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by Applicable Law or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Credit Document or any action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantiallythe same as (or no less restrictive than) those of this Section12.33, to (i) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement orpaymentshereunder;(g)onaconfidentialbasistoanyratingagencyinconnection with rating the Borrower or its Subsidiaries or the Loan Facilities; (h) with the consent of the Borrower; (i) to the extent such Information or Credit Documents (or the terms thereof) (x) becomes publicly available other than as a result of a breach of this Section 12.33, or (y) becomes available to any Agent, any Lender, any LC Issuer or any of their respective Affiliates onanon-confidentialbasisfromasourceotherthantheBorrowerthatisnotknowntobesubject to a confidentiality obligation to the Borrower
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or any other Loan Party or (z) is independently discoveredordevelopedbyapartyheretowithoututilizinganyInformationorCreditDocuments (or the terms thereof) received from theBorrower or violatingthe terms of this Section 12.33; or (j)totheextentrequiredbyapotentialoractualinsurerorreinsurerinconnectionwithproviding insurance,reinsuranceorcreditriskmitigationcoverageunderwhichpaymentsaretobemadeor may be made by reference to this Agreement.In addition, the Agents, the LC Issuers and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Agents or any LC Issuer or Lender in connection with the administration of this Agreement, the other Credit Documents, and the Commitments.
NotwithstandinganycontraryprovisionofthisSection12.33,eachLendershallhavethe right to publicize its participation in the Loan and the transactions contemplated in this Agreement and the other Credit Documents through industry standard methods including, withoutlimitation,tombstoneadvertisementsandpressreleases;provided,however,thatpriorto anysuchpublicationthroughindustrystandardmethods,suchLenderwillsecuretheBorrower’s approval of the form and content of publication, which will not be unreasonablywithheld.
Section12.34. Acknowledgement and Consent to Bail-In of Affected Financial Institutions.
Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Credit Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a)The application of any Write-Down and Conversion Powers by the applicable Resolution Authorityto anysuch liabilities arising hereunder which maybepayabletoitbyany party hereto that is an Affected Financial Institution; and
(b)TheeffectsofanyBail-InActiononanysuchliability,including,ifapplicable, (i)a reduction in full or in part or cancellation of any such liability, (ii)a conversion of all, or a portionof,suchliabilityintosharesorotherinstrumentsofownershipinsuchAffectedFinancial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document, or (iii)the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.
Section12.35.Limitations on Liability.NO CLAIM SHALL BE MADE BY ANY PARTY HERETO OR ANY OF ITS AFFILIATES, DIRECTORS, EMPLOYEES, ATTORNEYS OR AGENTS AGAINST ANY OTHER PARTY HERETO OR ANY OF ITS AFFILIATES, DIRECTORS, EMPLOYEES, ATTORNEYS OR AGENTS FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (WHETHER OR NOT THE CLAIM THEREFOR IS BASED ON CONTRACT, TORT, DUTY IMPOSED BY LAW OR
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OTHERWISE) IN CONNECTION WITH, ARISING OUT OF OR IN ANY WAY RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE OTHER CREDIT DOCUMENTS OR ANY ACT OR OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH; AND EACH PARTY HEREBY WAIVES, RELEASES AND AGREESNOTTOSUEUPONANYSUCHCLAIMFORANYSUCHSPECIAL,INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR; PROVIDED THAT NOTHING IN THIS SECTION 12.35SHALL LIMIT THE INDEMNITY AND REIMBURSEMENT OBLIGATIONS OF ANY PERSON TO THE EXTENT SET FORTH IN THECREDITDOCUMENTS(INCLUDINGWITHOUTLIMITATIONSECTIONS11.5,12.3AND 12.24OF THIS AGREEMENT AND SECTIONS 7.1 AND 7.2 OF THE DEPOSITARY AGREEMENT) IN RESPECT OF ANY THIRD-PARTY CLAIMS ALLEGING SUCH SPECIAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES.
Section12.36.AcknowledgmentRegardingAnySupportedQFCsAcknowledgment.
To the extent that the Credit Documents provide support, through a guarantee or otherwise,forPermittedHedgingAgreementsoranyotheragreementorinstrumentthatisa QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the“U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or anyother state of the United States):
(a)IntheeventaCoveredEntitythatispartytoaSupportedQFC(each,a“Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligationandrightsinproperty)weregovernedbythelawsoftheUnitedStatesorastateofthe UnitedStates.In the event aCoveredPartyor a BHC Act Affiliate of aCoveredPartybecomes subjecttoaproceedingunderaU.S.SpecialResolutionRegime,DefaultRightsundertheCredit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state of the United States.Without limitation of the foregoing, it is understood and agreed that rightsandremedies oftheparties withrespect to aDefaultingLendershall in noeventaffect the rights of anyCovered Partywith respect to a Supported QFC or anyQFC Credit Support.
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(b)AsusedinthisSection12.36,thefollowingtermshavethefollowingmeanings:
“BHC Act Affiliate” of a partymeans an “affiliate” (as suchterm isdefinedunder, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“CoveredEntity”meansanyofthefollowing:
(a)a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(b)a“coveredbank”asthattermisdefinedin,andinterpretedinaccordancewith,12 C.F.R.§47.3(b);or
(c)a“coveredFSI”asthattermisdefinedin,andinterpretedinaccordance with, 12 C.F.R.§382.2(b).
“DefaultRight”hasthemeaning assignedtothattermin,andshallbeinterpretedin accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
Section12.37.Keepwell.Each Qualified ECP Guarantor hereby jointly and severally absolutely,unconditionallyandirrevocablyundertakes toprovidesuch funds orothersupport as may be needed from time to time by each other Loan Party to honor all of its obligations under this Agreement and otherwise under the Credit Documents in respect of Swap Obligations (provided,however,thateachQualifiedECPGuarantorshallonly be liable under thisSection12.37forthemaximumamountofsuchliabilitythatcanbeherebyincurredwithoutrenderingits obligations under this Section 12.37, as it relates to such Loan Party, or otherwise under this Agreement and otherwise under theCredit Documents, voidableunder applicablelaw relatingto fraudulentconveyanceorfraudulenttransfer,andnotforanygreateramount).Theobligationsof each Qualified ECP Guarantorunder this Section 12.37shall remain in fullforceandeffect until a discharge in full of all Swap Obligation. Each Qualified ECP Guarantor intends that this Section 12.37constitute, and this Section 12.37shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Partyfor all purposes ofSection 1a(18)(A)(v)(II) of the Commodity Exchange Act.
Section 12.38. Co-BorrowerRelationship.
(a)Each of Devco Borrower and Opco Borrower is accepting joint and several liabilityasa“Borrower”hereunderandundertheotherCreditDocumentsinconsiderationofthe financial accommodations to be provided by the Lenders and the LC Issuing Banks under the CreditDocuments,forthemutualbenefit,directlyandindirectly,ofeachofDevcoBorrowerand Opco Borrower and in consideration of the undertakings of the other to accept joint and several liability for the Obligations. Each of Devco Borrower and Opco Borrower, jointlyand severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor,
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jointandseveralliabilitywiththeotherwithrespecttothepaymentandperformanceofallofthe Obligations(includinganyObligationsarisingunderthisSection12.38),itbeingtheintentionof the parties hereto that all the Obligations shall be the joint and several obligations of each of Devco Borrower and Opco Borrower without preferences or distinction between them. If and to theextentthateitherofDevcoBorrowerandOpcoBorrowershallfailtomakeanypaymentwith respect to any of the Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other will make, without duplication, payment of any unpaid amount with respect to, or perform, such Obligation. Notwithstandingtheforegoing,upontheassumptionofallProjectsinaccordancewith Section12.22(b), the Devco Borrower shall immediately cease to be a Borrower and be unconditionally and absolutely released and discharged from its obligations and its liabilities as Borrower under this Agreement and the other Credit Documents.
(b)The Obligations of each of Devco Borrower and Opco Borrower under the provisions of this Section12.38constitute the absolute and unconditional, full recourse obligations of each Borrower enforceable against each, irrespective of the validity or enforceability of this Agreement or any other circumstance whatsoever.
(c)Except as otherwise expressly provided in this Agreement or the other Credit Documents,(i)eachofDevcoBorrowerandOpcoBorrowerherebywaivesnoticeofacceptance of its joint and several liability, and (ii) (A) any notice of any Loans under or pursuant to this Agreement, (B) anynoticeoftheoccurrenceof anyDefault, Event of Default, orofanydemand for anypayment underthisAgreement,(C)anynoticeofanyactionat anytimetaken oromitted byanySecured Partyunderorin respect of anyofthe Obligations, and (D) alldemands,notices and other formalities of every kind in connection with this Agreement (except as otherwise providedinthisAgreementorthe otherCreditDocuments) that,inthe case ofeachofclauses (A) through (D) are delivered to either of Devco Borrower and Opco Borrower shall be deemed to be given to both Devco Borrower and Opco Borrower. Anyextension or postponement of the time for the payment of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by any Secured Party at any time or times in respect of any default by Devco Borrower or Opco Borrower, as applicable, in the performance or satisfaction of any term, covenant, condition or provision of this Agreement or any of the other Credit Documents, any and all other indulgences whatsoever by any Secured Party in respect of any of the Obligations, and the taking, addition, substitution or release, in whole or in part, at any time or times, of any security for any of the Obligations of anyother Person or the addition, substitution or release, in whole or in part, of either of Devco Borrower and Opco Borrower, in the case of each of the foregoing granted to, made by, agreed to by or accepted by either of Devco Borrower and Opco Borrower shall be deemed to be granted to, made by, agreed to or accepted by both Devco Borrower and Opco Borrower. The obligations of each of Devco Borrower and Opco Borrower under this Section 12.38shall not be diminished or rendered unenforceable by any winding up, reorganization,arrangement,liquidation,reconstructionorsimilarproceedingwithrespecttoany other Loan Party or the Sponsor. The joint and several liability of Devco Borrower and Opco Borrower hereunder shall continue in full force and effect notwithstanding any absorption,
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merger, division, amalgamation or any other change whatsoever in the name, constitution or place of formation of either Devco Borrower or Opco Borrower.
(d)Each of Devco Borrower and Opco Borrower represents and warrants to the Administrative Agent and the other Secured Parties that it is currentlyinformed of the financial condition of the other. Each of Devco Borrower and Opco Borrower hereby assumes all responsibility for keeping itself informed of the other’s financial condition, the financial condition of other guarantors, and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the Obligations.
(e)Each of Devco Borrower and Opco Borrower agrees that if any certificate is executedanddeliveredbyoneorbothoftheminitscapacityasa“Borrower”hereunder,butnot both of them, such certificate may be relied upon by the Administrative Agent and the other Secured Parties, and shall bind both of Devco Borrower and Opco Borrower, as if it were executed by all of them.
(f)The provisions of this Section12.38are made for the benefit of each Secured Party and may be enforced by it or them from time to time against any or both of Devco Borrower and Opco Borrower as often as occasion therefor may arise and without requirement onthepartofanySecuredPartyfirsttomarshalanyofitsortheirclaimsortoexerciseanyofits or their rights against the other or to exhaust any remedies available to it or them against the other or to resort toanyothersourceormeans ofobtainingpayment ofanyoftheObligations or to elect any other remedy.
(g)Each of Devco Borrower and Opco Borrower hereby agrees that it will not enforce any of its rights of contribution or subrogation against the other with respect to any liability incurred by it hereunder or under any of the other Credit Documents, any payments made by it to any Secured Party with respect to any of the Obligations or anycollateral security thereforuntiltheDischargeDate.AnyclaimsthateitherofDevcoBorrowerandOpcoBorrower may have against the other with respect to anypayments to anySecured Partyunder anyCredit Documents are hereby expressly made subordinate and junior in right of payment to the prior payment in full in cash of the Obligations and, in the event of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to either of Devco Borrower and Opco Borrower, its debts or its assets, whether voluntary or involuntary, this Agreement shall have terminated before any payment or distribution of any character, whether in cash, securities or other property, shall be made to the other therefor.
(h)Each of Devco Borrower and Opco Borrower hereby agrees that, after the occurrence and during the continuance of any Default or Event of Default, the payment of any amounts due with respect to the indebtedness owing by either of Devco Borrower and Opco Borrower to the other is hereby subordinated to the prior payment in full in cash of the Obligations. Each of Devco Borrower and Opco Borrower hereby agrees that, after the occurrence and during the continuance of any Default or Event of Default, it will not demand, sue for or otherwise attempt to collect any indebtedness of the other owing to it until the Discharge Date. If,notwithstandingthe foregoingsentence, DevcoBorrowerorOpcoBorrower,
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as applicable,shallcollect,enforceorreceiveanyamounts inrespect ofsuchindebtedness,such amounts shall be collected, enforced and received by Devco Borrower or Opco Borrower, as applicable, as trustee for the Secured Parties, and Devco Borrower or Opco Borrower, as applicable, shall deliver any such amounts to the Collateral Agent for application to the ObligationsinaccordancewiththisAgreementifsuchDefaultorEventofDefaultiscontinuing.
(i)Notwithstanding anything to the contrary set forth in this Section12.38, it is the intent of the parties hereto that the liability incurred by each of Devco Borrower and Opco Borrower in respect of the Obligations of theother (andanyLiengranted byeach tosecuresuch Obligations or its joint and several liability in respect thereof) not constitute a fraudulent conveyanceunderSection548 ofthe BankruptcyCodeorafraudulentconveyanceorfraudulent transfer under the provisions of any applicable law of any state or other governmental unit (“Fraudulent Conveyance”). Consequently, each of Devco Borrower and Opco Borrower and each Secured Party hereby agree that, if a court of competent jurisdiction determines that the incurrenceofliabilitybyeither Devco Borroweror Opco Borrowerin respect ofthe Obligations (or any Liens granted by Devco Borrower or Opco Borrower, as applicable, to secure such Obligations or its joint and several liability in respect thereof) would, but for the application of this sentence, constitute a Fraudulent Conveyance, such liability(and such Liens) shall be valid and enforceable only to the maximum extent that would not cause the same to constitute a Fraudulent Conveyance.
[SIGNATUREPAGESTOFOLLOW]
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INWITNESSWHEREOF,thepartiesheretohavecausedthisAgreementtobe duly executed and delivered as of the day and year first above written.
| MN8 BLEEKER LLC, | |||||||||||
| as the Opco Borrower | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| MN8 DEVCO 3 LLC, | |||||||||||
| as the Devco Borrower | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: |
[Signature Page to Credit Agreement]
| NATIXIS, NEW YORK BRANCH, | |||||||||||
| as Administrative Agent | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: |
[Signature Page to Credit Agreement]
EXHIBIT H
AmendedSecurityAgreement
Conformed
GUARANTY,PLEDGEANDSECURITYAGREEMENT
DatedasofDecember31,2024
(asamendedbythatcertainConsentandOmnibusAmendment,datedasofJune13,
2025)
byandbetween
MN8 DEVCO 3 LLC, a Delaware limited liabilitycompany,
MN8BLEEKERLLC,aDelawarelimitedliabilitycompany,
AMERICANBEECHSOLARLLC,aNorthCarolinalimitedliabilitycompany,
BLUEBIRD SOLAR LLC, a Kentucky limited liability company,
BLUEBIRDSOLARINVESTMENTSLLC,aKentuckylimitedliabilitycompany,
PRAIRIE SOLAR HOLDINGS LLC, a Delaware limited liability company,
PRAIRIE SOLAR 1, LLC, a Delaware limited liability company,
MN8FMGCLASSBLLC,aDelawarelimitedliabilitycompany,
MN8FMGLLC,aDelawarelimitedliabilitycompany
(as the Grantors)
and
NATIXIS,NEWYORKBRANCH,
astheCollateralAgentfortheSecuredParties
GUARANTY, PLEDGE & SECURITY AGREEMENT
(MN8 BRIDGE BAYWA CONSTRUCTION FINANCING)
TABLE OF CONTENTS
| Page | |||||||||||
| ARTICLE I DEFINITIONS | 2 | ||||||||||
| Section 1.01 | Certain Defined Terms | 2 | |||||||||
| ARTICLE II THE COLLATERAL | 8 | ||||||||||
| Section 2.01 | Grant of Collateral | 8 | |||||||||
| Section 2.02 | Perfection | 10 | |||||||||
| Section 2.03 | Delivery and Other Perfection | 11 | |||||||||
| Section 2.04 | Other Financing Statements and Liens | 12 | |||||||||
| Section 2.05 | Preservation and Protection of Security Interests | 12 | |||||||||
| Section 2.06 | Attorney-in-Fact | 13 | |||||||||
| Section 2.07 | Intellectual Property | 14 | |||||||||
| Section 2.08 | Use of Collateral | 15 | |||||||||
| Section 2.09 | Rights and Obligations | 15 | |||||||||
| Section 2.10 | Termination | 16 | |||||||||
| Section 2.11 | Commercial Tort Claims | 17 | |||||||||
| Section 2.12 | Governmental Authorities | 18 | |||||||||
| Section 2.13 | Special Provisions Relating to Pledged Ownership Interests | 18 | |||||||||
| ARTICLE III REPRESENTATIONS | 19 | ||||||||||
| Section 3.01 | Organization; Power; Authorization; Validity | 19 | |||||||||
| Section 3.02 | Title | 19 | |||||||||
| Section 3.03 | Intellectual Property | 20 | |||||||||
| Section 3.04 | Commercial Tort Claims | 20 | |||||||||
| Section 3.05 | Deposit and Securities Accounts | 20 | |||||||||
| Section 3.06 | Pledged Ownership Interests | 20 | |||||||||
| Section 3.07 | Consent to Transfer | 21 | |||||||||
| ARTICLE IV COVENANTS | 23 | ||||||||||
| Section 4.01 | Further Assurances | 23 | |||||||||
| Section 4.02 | Covenants | 23 | |||||||||
| Section 4.03 | Consent to Transfer | 23 | |||||||||
| Section 4.04 | Preservation of Collateral | 24 | |||||||||
| ARTICLE V REMEDIES | 24 | ||||||||||
| Section 5.01 | Events of Default, Etc | 24 | |||||||||
| Section 5.02 | Deficiency | 26 | |||||||||
| Section 5.03 | Private Sale | 26 | |||||||||
| Section 5.04 | Cash Proceeds of Collateral | 26 | |||||||||
| Section 5.05 | Application of Proceeds | 27 | |||||||||
| ARTICLE VI GUARANTY | 27 | ||||||||||
| Section 6.01 | Guaranty | 27 | |||||||||
| Section 6.02 | Guaranty and Grant of Security Interest Absolute | 27 | |||||||||
| Section 6.03 | Waivers and Acknowledgments | 31 | |||||||||
| Section 6.04 | Subrogation | 32 | |||||||||
| Section 6.05 | General Limitation on Guarantee Obligations | 32 | |||||||||
| ARTICLE VII MISCELLANEOUS PROVISIONS | 33 | ||||||||||
| Section 7.01 | Communication | 33 | |||||||||
| Section 7.02 | Amendments | 34 | |||||||||
| Section 7.03 | Successors and Assigns | 34 | |||||||||
| Section 7.04 | Survival | 35 | |||||||||
| Section 7.05 | No Waiver; Remedies Cumulative | 35 | |||||||||
| Section 7.06 | Counterparts | 35 | |||||||||
| Section 7.07 | Captions | 35 | |||||||||
| Section 7.08 | Severability | 35 | |||||||||
| Section 7.09 | Governing Law; Waiver of Jury Trial; Jurisdiction and Process | 36 | |||||||||
| Section 7.10 | Entire Agreement | 37 | |||||||||
| Section 7.11 | Independent Obligations | 37 | |||||||||
| Section 7.12 | Expenses | 37 | |||||||||
| Section 7.13 | Collateral Agent | 37 | |||||||||
| Section 7.14 | Reinstatement | 38 |
| Annex 1 | Organization and Chief Executive Office of the Grantors | ||||
| Annex 2 | Copyrights | ||||
| Annex 3 | Patents | ||||
| Annex 4 | Trademarks | ||||
| Annex 5 | Commercial Tort Claims | ||||
| Annex 6 | Deposit and Securities Accounts | ||||
| Annex 7 | Pledged Ownership Interests | ||||
| Annex 8 | Form of Guarantor Supplement |
GUARANTY,PLEDGEANDSECURITYAGREEMENT
This GUARANTY, PLEDGE AND SECURITY AGREEMENT (this “Agreement”),datedasofDecember31,2024,ismadebyandbetweenMN8DEVCO3,LLC,a limited liability company duly formed and validly existing under the laws of the State of Delaware (together with its successors and permitted assigns, “DevcoBorrower”), MN8 BLEEKER LLC a limited liability company duly formed and validly existing under the laws of the State of Delaware (together with its successors and permitted assigns, “Opco Borrower”), AMERICAN BEECH SOLAR LLC, a limited liability company duly formed and validly existingunderthelawsoftheStateofNorthCarolina(togetherwithitssuccessorsandpermitted assigns, the “American BeechProject Company”), BLUEBIRD SOLAR LLC, alimitedliability company duly formed and validly existing under the laws of the Commonwealth of Kentucky (together with its successors and permitted assigns, the “Bluebird Project Company”), BLUEBIRDSOLARINVESTMENTSLLC,alimitedliabilitycompanydulyformedandvalidly existing under the laws of the Commonwealth of Kentucky (together with its successors and permitted assigns, the “Bluebird IRB SPV”), PRAIRIE SOLAR HOLDINGS LLC, a limited liability company duly formed and validly existing under the laws of the State of Delaware (togetherwithitssuccessorsandpermittedassigns,the“PrairieHoldings”),PRAIRIESOLAR1, LLC, a limited liability company dulyformed and validlyexistingunder the laws of the State of Delaware (together with its successors and permitted assigns, the “Prairie Project Company”), MN8 FMG CLASS B LLC, a limited liability company duly formed and validly existing under the laws of the State of Delaware (together with its successors and permitted assigns, the “FMGClass B Member”), MN8 FMG LLC, a limited liability company duly formed and validly existing under the laws of the State of Delaware (together with its successors and permitted assigns, the “Bluebird TEPartnership”) and together with DevcoBorrower, Opco Borrower, American Beech Project Company, Bluebird Project Company, Bluebird IRB SPV, Prairie Holdings, Prairie Project Company, FMG Class B Member and each Person that delivers a Guarantor Supplement in accordance with Section 4.04, the “Grantors”, and each a “Grantor”), and NATIXIS, NEW YORK BRANCH, in its capacity as collateral agent (in such capacity and together with its successors and permitted assigns, the “Collateral Agent”) for the Secured Parties under and as defined in the Credit Agreement (the “Secured Parties”).
R E C ITALS:
A.Pursuant to that certain Credit Agreement, dated as of the date hereof (as amended, amended and restated, modified or supplemented from time to time, the “CreditAgreement”) among Devco Borrower, Opco Borrower, the financial institutions from time to timepartytheretoaslenders(the“Lenders”)andasissuersoflettersofcredit(the“LCIssuers”), the Collateral Agent, Natixis, New York Branch, as the Administrative Agent for the Lenders, and the other parties party thereto, the Lenders and the LCIssuers thereunder have agreed to extend credit to Devco Borrower and Opco Borrower in the amounts specified and on the terms and subject to the conditions set forth therein.
B.It is a requirement under the Credit Agreement that the Grantors shall have executed and delivered this Agreement. NOW, THEREFORE, in consideration of the foregoing
1
GUARANTY, PLEDGE & SECURITY AGREEMENT
(MN8 BRIDGE CONSTRUCTION FINANCING)
premises and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, each Grantor hereby agrees with the Collateral Agent as follows:
ARTICLE I
DEFINITIONS
Section 1.01 CertainDefinedTerms.
(a)Eachcapitalizedtermusedandnototherwisedefinedhereinshallhavethe meaning assigned to such term (whether directly or by reference to another agreement or document) in Section 1.1 of the Credit Agreement as in effect on the date hereof (or as modified with the consent of the applicable Secured Parties). The Rules of Interpretation set forth in Section1.2 of the Credit Agreement are hereby incorporated by reference as if fully set forth herein.
(b)The terms “Accounts”, “Chattel Paper”, “Commercial Tort Claims”, “DepositAccount”,“Document”,“ElectronicChattelPaper”,“Equipment”,“Fixture”,“GeneralIntangible”, “Goods”, “Instrument”, “Inventory”, “Investment Property”, “Letter-of-CreditRight”, “Payment Intangible”, “Proceeds”, “Software”, and “Tangible Chattel Paper” have the respective meanings ascribed thereto in Article 9 of the UCC. The terms “Financial Assets”, “Securities Account” and “Security” have the respective meanings ascribed thereto in Article 8 of the UCC.
(c)InadditiontothetermsdefinedintheCreditAgreement,thepreambleand the recitals, the following terms shall have the following respective meanings:
“AC1ASOA”meansAC1ASOALLC,aDelawarelimitedliabilitycompany.
“AC1 ASOA Pledged Ownership Interests” has the meaning assigned to that term in Section 2.01(l)(i)(C).
“Agreement”hasthemeaningassignedtothatterminthePreamble.
“American Beech LLC Agreements” means collectively, (i) the Third Amended and Restated Operating Agreement of American Beech Solar LLC, dated December 27, 2024, with Devco Borrower as the Sole Member and (ii) the Second Amended and Restated Limited Liability Company Agreement of AC1 ASOA LLC, dated January 10, 2023, among the American Beech Project Company and Halifax County Solar LLC, as amended by Amendment to the Second Amended and Restated Limited Liability Company Agreement of AC1 ASOA LLC, dated April 14, 2023, among the American Beech Project Company, Edgecombe AC1 ASOA LLC and Halifax County Solar LLC.
“American Beech Pledged Ownership Interests” means, (x) prior to the Transfer Datewith respect to the American Beech Project,the Devco Borrower Subsidiary Pledged Ownership Interests that relate to Devco Borrower’s ownership of the membership interests of theAmericanBeechProjectCompany.and(y)fromandaftertheTransferDatewithrespect to the American Beech Project, the Opco Borrower Subsidiary Pledged Ownership Interests that relate to
2
GUARANTY, PLEDGE & SECURITY AGREEMENT
(MN8 BRIDGE CONSTRUCTION FINANCING)
the HoldCo (American Beech) ownership of the membership interests of the American Beech Project Company.
“American Beech Project Company” has the meaning assigned to that term in the Preamble.
“Assigned Agreements” shall mean all Project Documents to which a Grantor is a party and all other contracts, agreements, leases and other similar instruments related to the Projects and all amounts payable to any Grantor thereunder and all amendments, supplements, replacements, substitutions and renewals thereof and thereto.
“Bluebird TEPartnership LLC Agreement”means, the Amended andRestatedLimited LiabilityCompanyAgreementofMN8FMGLLC,datedDecember18,2024asoftheOmnibusAmendment Effective Date.
“Bluebird TE Pledged Ownership Interests” means, the Opco Borrower Subsidiary Pledged Ownership Interest that relate to the FMG Class B Member’s ownership of the membership interests of the Bluebird TE Partnership.
“BluebirdIRBSPV”hasthemeaningassignedtothatterminthepreamble.
“Bluebird IRB SPV LLC Agreement” means the Amended and Restated Operating Agreement of Bluebird Solar Investments LLC, a Kentucky limited liability company, dated December 27, 2024.
“Bluebird IRB SPV Pledged Ownership Interests” means, (x) prior to the TransferDatewithrespecttotheBluebirdProject,theDevcoBorrowerSubsidiaryPledgedOwnership Interests and (y)fromand after theTransfer Datewith respect to theBluebird Project, theOpco Borrower Subsidiary Pledged Ownership Interests, in each case, that relate to the Bluebird Project Company’s ownership of the membership interests of the Bluebird IRB SPV.
“BluebirdLLCAgreements”means,collectively,theBluebirdSolarLLCAgreementand the Bluebird IRB SPV LLC Agreement.
“Bluebird Pledged Ownership Interests” means, (x) prior to the Transfer Date withrespect to the Bluebird Project,the Devco Borrower Subsidiary Pledged Ownership Interests that relate to Devco Borrower’s ownership of the membership interests of the Bluebird Project Company. and (y) from and after the Transfer Date with respect to the Bluebird Project,theOpcoBorrowerSubsidiaryPledgedOwnershipIntereststhatrelatetotheBluebirdTEPartnership’s ownership of the membership interests of the Bluebird Project Company.
“Bluebird Project Company” has the meaning assigned to that term in the Preamble.
“BluebirdSolarLLCAgreement”meanstheThirdFourthAmendedandRestated OperatingAgreementofBluebirdSolarLLC,datedDecember27,2024,withDevco Borroweras of the Omnibus Amendment Effective Date, with Bluebird TE Partnershipas the Sole Member.
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“Borrower”means,(a)priortothedateonwhichtheBack-LeverageDateforallProjects shall have occurred, collectively, the Devco Borrower and the Opco Borrower, and each, a “Borrower”, and (b) from and after the date on which the Back-Leverage Date for all Projects shall have occurred, the Opco Borrower.
“Collateral” has the meaning assigned to that term in Section 2.01. “CollateralAgent”hasthemeaningassignedtothatterminthePreamble.
“Copyright Collateral” shall mean all Copyrights, whether now owned or hereafter acquiredbyaGrantor.Notwithstandingtheforegoing,CopyrightCollateralshallnotincludeany Copyright which would be rendered invalid, abandoned, void or unenforceable by reason of its being included as part of the Copyright Collateral.
“Copyrights” shall mean, collectively, (a) all copyrights, copyright registrations and applications for copyright registrations, (b) all renewals and extensions of all copyrights, copyright registrations andapplications forcopyright registrationand(c)allrights,nowexisting or hereafter coming into existence, (i) to all income, royalties, damages and other payments (includinginrespectofallpast,presentorfutureinfringements)noworhereafterdueorpayable under or with respect to any of the foregoing, (ii) to sue for all past, present and future infringements with respect to any of the foregoing and (iii) otherwise accruing under or pertaining to any of the foregoing throughout the world.
“CreditAgreement”hasthemeaningassignedtothattermintheRecitals.
“DevcoBorrower”hasthemeaningassignedtothatterminthePreamble.
“Devco Borrower Subsidiary” means, to the extent the following Persons areSubsidiaries of Devco Borrower, (a) until the Back-Leverage Date with respect to the American Beech Project, the American Beech Project Company, (b) until the Back-Leverage Date with respect to the Bluebird Project, the Bluebird Project Company and the Bluebird IRB SPV, (c) until the Back-Leverage Date with respect to the Prairie Project, Prairie Holdings and the Prairie Project Company and (d) until the Back-Leverage Date with respect to the Project directly or indirectly owned by such Subsidiary, any Subsidiary of the Devco Borrower who executes a Guarantor Supplement.
“Devco Borrower SubsidiaryPledged Ownership Interests” has the meaning assigned to that term in Section 2.01(l)(i)(A).
“Excluded Assets” shall mean (a) any license, lease, contract, property rights or agreement, Applicable Permits and other Permits, investment tax credits, production tax credits or similar rights to which a Grantor is a party (or to any of its rights or interests thereunder) if, andonlytotheextentandforsolongas,thegrantofasecurityinterestwouldconstituteorresult ineither(1)theabandonment,revocation,voidability,invalidationorunenforceabilityofany right, title orinterest of such Grantortherein or(2) abreach ortermination pursuant to theterms of or a default under, anysuch license, lease, contract, propertyrights or agreement, Applicable Permits and other Permits, investment tax credits, production tax credits or similar rights to
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which such Grantor is a party (other than to the extent that any such term would be rendered ineffective by Section 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code as in effect in the relevant jurisdiction and such ineffectiveness would not otherwise constitute a breach); (b)any property to the extent that a grant of a security interest in such property is prohibited by Applicable Law; (c)any “intent-to-use” applications for trademarks or service marks filed in the PTO pursuant to 15 U.S.C. §1051 Section 1(b) unless and until a “Statement of Use” or “Amendment to Allege Use” in respect of the mark is accepted bythe PTO pursuant to 15 U.S.C. §1051 Section 1(c) or Section 1(d); (d)any Motor Vehicle; (e)any distribution or Restricted Payment or proceeds thereof that a Borrower distributes to any Person (other than a Grantor) that is permitted pursuant to the terms of the Credit Documents; and (f)any property obtained bya Grantor after the Financial Closing Date with respect to which the Administrative Agentdetermines in itsreasonablediscretionthat thecosts ofobtainingsecurityintereststherein are excess in relation to the value of the securityto be afforded thereby.
“First-Tier Subsidiaries” means, individually or collectively as the context may require, AC1 ASOA, the Bluebird IRB SPV and/or the Prairie Project Company.
“Grantor”hasthemeaningassignedtothatterminthePreamble.
“Guaranteed Obligations” has the meaning assigned to that term in Section 6.01.
“Guarantor”shallmean,individuallyorcollectivelyasthecontextmayrequire,the American Beech Project Company, the Bluebird Project Company, the Bluebird IRB SPV, Prairie Holdings, the Prairie Project Company, the FMG Class B Member, the Bluebird TE Partnership, and/or each Person that delivers a Guarantor Supplement, in accordance with Section 4.04.
“Guarantor Supplement” means a Guarantor Supplement, substantially in the form of Annex 8.
“Guaranty”hasthemeaningassignedtosuchterminSection6.02(b)(i).
“Intellectual Property” shall mean all Copyright Collateral, all Patent Collateral and all Trademark Collateral, together with (a) all inventions, processes, production methods, proprietaryinformation, know-how and tradesecrets, (b) all licenses oruser orotheragreements granted to a Grantor with respect to anyof the foregoing, in each case whether now or hereafter owned or used, (c) all information, customer lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, recorded knowledge, surveys, engineering reports, testreports,manuals,materialsstandards,processingstandards,performancestandards,catalogs, computer and automatic machinery software and programs, (d) all field repair data, sales data and other information relating to sales or service ofproducts now orhereaftermanufactured, (e) all accountinginformation and all media in which or on which anyinformation orknowledge or dataorrecords mayberecorded orstoredandallcomputerprogramsusedforthecompilationor printout of such information, knowledge, records or data, (f) all ApplicablePermits nowheld or
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hereafter obtained by a Grantor in respect of any of the foregoing, and (g) all causes of action, claims and warranties now owned or hereafter acquired by a Grantor in respect of any of the foregoing. It is understood that Intellectual Property shall include all of the foregoing owned or acquired by a Grantor on a worldwide basis.
“LCIssuers”hasthemeaningassignedtothattermintheRecitals. “Lenders” has the meaning assigned to that term in the Recitals.
“Motor Vehicles” shall mean motor vehicles, tractors, trailers and other like property, whether or not the title to anysuch propertyis governed bya certificate of title or ownership.
“OpcoBorrower”hasthemeaningassignedtothatterminthePreamble.
“Opco Borrower Subsidiary” means (a) the FMG Class B Member and (b) to the extent the following Persons are Subsidiaries of Opco Borrower and solely until the Back-Leverage Date for such Person(s)’ Projects: (i) with respect to the American Beech Project, the American Beech Project Company, (ii) respect to the Bluebird Project, the Bluebird TE Partnership, the Bluebird Project Company and the Bluebird IRB SPV, (iii) with respect to the Prairie Project, Prairie Holdings and thePrairieProject Companyand (iv) anySubsidiaryof the OpcoBorrower who executes a Guarantor Supplement.
“Opco Borrower Subsidiary Pledged Ownership Interests” has the meaning assigned to that term in Section 2.01(l)(i)(B).
“Ownership Collateral” has the meaning assigned to that term in Section 2.01(l)(iv).
“PatentCollateral”shallmeanallPatents,whethernowownedorhereafteracquiredbya Grantor. Notwithstanding the foregoing, Patent Collateral shall not include any Patents which would be rendered invalid, abandoned, void or unenforceable byreason of its being included as part of the Patent Collateral.
“Patents”shallmean, collectively, (a) allpatents andpatent applications, (b)allreissues, divisions, continuations, renewals, extensions and continuations-in-part of all patents or patent applications and (c) all rights, now existingorhereafter cominginto existence, (i) to all income, royalties, damages, and other payments (including in respect of all past, present and future infringements)noworhereafterdueorpayableunderorwithrespecttoanyoftheforegoing,(ii) to sue for all past, present and futureinfringements with respect to anyofthe foregoing and (iii) otherwise accruing under or pertaining to any of the foregoing throughout the world, including all inventions and improvements described or discussed in all such patents and patent applications.
“PledgedOwnershipInterests”hasthemeaningassignedtothattermin Section 2.01(l)(i)(E).
“PrairieHoldings”hasthemeaningassignedtothatterminthepreamble.
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“Prairie Holdings LLC Agreement” means the Third Amended and Restated Operating Agreement of Prairie Solar Holdings LLC, dated December 27, 2024, with Devco Borrower as the Sole Member.
“Prairie Holdings Pledged Ownership Interests” means the Devco Borrower Subsidiary Pledged Ownership Interests that relate to Devco Borrower’s ownership of the membership interests of the Prairie Holdings.
“Prairie LLC Agreements” mean, collectively, the Prairie Solar LLC Agreement and the Prairie Holdings LLC Agreement.
“Prairie Pledged Ownership Interests” means, (x) prior to the Transfer Date withrespect tothe Prairie Project, the Devco Borrower Subsidiary Pledged Ownership Interests that relate to Prairie Holdings’ ownership of the membership interests of the Prairie Project Company. and (y)from and after the Transfer Date with respect to the Prairie Project, theOpco BorrowerSubsidiary Pledged Ownership Interests that relate to the HoldCo(Prairie)ownership ofthe membership interests of the Prairie Project Company.
“Prairie Project Company” has the meaning assigned to that term in the Preamble. “PrairieSolarLLCAgreement”meanstheThirdAmendedandRestatedOperating
Agreement of Prairie Solar 1, LLC,dated December27,2024, withPrairie Holdings astheSole Member.
“Project Company” means, individually or collectively as the context may require, the American Beech Project Company, the Bluebird Project Company and/or the Prairie Project Company.
“PTO”shallmeantheUnitedStatesPatentandTrademarkOffice.
“Second-Tier Subsidiaries” means, individually or collectively as the context may require, the American Beech Project Company, the Bluebird Project Company and/or Prairie Holdings.
“SecuredObligations”shallmean,collectively,anyandallindebtednessandliabilitiesof theBorrowersandotherObligations(including,butnotlimitedto,allsuchobligationsinrespect of principal, interest (including post-petition interest), fees, indemnities, costs and other expenses, whether due after acceleration or otherwise and whether incurred before or after a bankruptcy of anyLoan Party), of whatever nature and however evidenced, held or acquired, or owed to the Secured Parties under or pursuant to any Credit Document, in each case, direct or indirect, primary or secondary, fixed or contingent, now existing or hereafter arising, due or to become due, absolute or contingent.
“SecuredParties”hasthemeaningassignedtothatterminthePreamble.
“Trademark Collateral” shall mean all Trademarks, whether now owned or hereafter acquiredby aGrantor.Notwithstandingtheforegoing,TrademarkCollateralshallnotinclude
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anyTrademarkwhichwouldberenderedinvalid,abandoned,voidorunenforceablebyreasonof its being included as part of the Trademark Collateral.
“Trademarks”shallmean,collectively,(a)alltradenames,trademarksandservicemarks, logos, trademark and service mark registrations and applications for trademark and service mark registrations, (b) all renewals and extensions of any of the foregoing and (c) all rights, now existing or hereafter coming into existence, (i) to all income, royalties, damages and other payments(includinginrespectofallpast,presentandfutureinfringements)noworhereafterdue orpayableunderorwithrespecttoanyoftheforegoing,(ii)tosueforallpast,presentandfuture infringements with respect to any of the foregoing and (iii) otherwise accruing under or pertaining to anyof the foregoing throughout the world, together, in each case, with the product lines and goodwill of the business connected with the use of, or otherwise symbolized by, each such trade name, trademark and service mark.
“Transfer Date” shall mean with respect to each Project, the date on which themembership interests in the applicable Project Company are transferred from the DevcoBorrower or its subsidiaries to the Opco Borrower or its subsidiaries pursuant to the TaxEquity Documents or TC Structure Documents, as applicable, for such Project.
“UniformCommercial Code” or “UCC”shallmean theUniformCommercial Codeas in effect in the State of New York from time to time; providedthat, if byreason of anymandatory provisions of law, the perfection, the effect of perfection or non-perfection or priority of the securityinterestsgranted to theCollateralAgentpursuant tothisAgreementaregovernedbythe Uniform Commercial Code as in effect in a jurisdiction of the United States other than New York, then “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of such perfection, effect of perfection or non-perfection or priority.
ARTICLE II
THECOLLATERAL
Section2.01Grant ofCollateral. As collateralsecurityfortheperformance andprompt payment in full when due (whether at stated maturity, upon acceleration, upon any optional or mandatory prepayment or otherwise) of the Secured Obligations, each Grantor hereby pledges and grants to theCollateral Agent,forthebenefit oftheSecuredParties, asecurityinterest inall of such Grantor’s right, title and interest in, to and under the following property, assets and revenues, whether now owned or in the future acquired by such Grantor and whether now existingorin thefuturecomingintoexistence(all oftheproperty,assetsandrevenuesdescribed in this Article II, collectively, the “Collateral”):
(a) all Accounts, Instruments, Documents, Chattel Paper (whether Tangible Chattel Paper or Electronic Chattel Paper), Goods (including Inventory, Equipment and Fixtures), Payment Intangibles, Software and other General Intangibles and all Letter-of-Credit Rights;
(b) allDepositAccounts;
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(c) theCollateralAccountsandtheassetsfromtimetotimetherein;
(d) allInvestmentProperty,FinancialAssetsandSecuritiesAccounts;
(e) allIntellectualProperty;
(f) allCommercialTortClaimsdescribedinAnnex5;
(g) each and every easement and right-of-way in favor of such Grantor, including those relating to the Projects;
(h) all other tangible and intangible property of such Grantor, including all books, correspondence, credit files, records, invoices, tapes, cards, computer runs and other papers and documents in the possession or under the control of such Grantor or any computer bureau or service company from time to time acting for such Grantor;
(i) allAssignedAgreements;
(j) all Applicable Permits required or obtained in connection with the development,construction,ownershipand/oroperationoftheProjectsand/orinconnectionwith any transaction contemplated by the Credit Agreement;
(k) all Proceeds and products in whatever form of all or anypart of the other Collateral, including all rents, profits, income and benefits and all proceeds of insurance and all condemnation awards and all other compensation for anyevent ofloss with respect to all or any part of the other Collateral (together with all rights to recover and proceed with respect to the same), and all accessions to, substitutions for and replacements of all or any part of the other Collateral; and
(1)
(i)
(A) all membership interests in each Devco Borrower Subsidiaryandallotherownershipinterestsofwhateverclassorcharacter ineachDevcoBorrowerSubsidiary,noworhereafterownedby DevcoBorrower, in each case, together with the original certificates evidencing the same (collectively, the “Devco Borrower SubsidiaryPledgedOwnership Interests”);
(B) allmembershipinterestsineachOpcoBorrowerSubsidiary and all other ownership interests of whatever class or character in each OpcoBorrowerSubsidiary,noworhereafterownedbyOpcoBorrower,in each case, together with the original certificates evidencing the same (collectively, the “OpcoBorrower SubsidiaryPledged OwnershipInterests”);
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(C) all membership interests in AC1 ASOA and all other ownership interests of whatever class or character in AC1 ASOA, now or hereafter owned by the American Beech Project Company (collectively, the “AC1 ASOA PledgedOwnership Interests”) and together with the Devco Borrower Subsidiary Pledged Ownership Interests and the Opco Borrower Subsidiary Pledged Ownership Interests, the “PledgedOwnership Interests”);
(ii)all membership interests, securities, moneys or property representing a dividend on any of the Pledged Ownership Interests, or representing a distribution or return of capital upon or in respect of the Pledged OwnershipInterests,orresultingfromasplit-up,revision,reclassificationorother likechangeofthePledgedOwnershipInterestsorotherwisereceivedinexchange therefor, and anysubscription, warrants, rights or options issued to theholders of, or otherwise in respect of, the Pledged Ownership Interests;
(iii)without affecting the obligations of any Grantor under any provision prohibiting that action under any Credit Document or other document pursuant to which any other Secured Obligation is incurred, as applicable, (A) in the event of any consolidation or merger in which any Devco Borrower Subsidiary or any Opco Borrower Subsidiary is not the surviving entity, all ownership interests of any class or character of the successor entity (unless that successorentityistheapplicableGrantoritself),formedbyorresultingfromsuch consolidation or merger and (B) in the event of any consolidation or merger in which AC1 ASOA is not thesurviving entity, all ownership interests of anyclass or character of the successor entity (unless that successor entity is the applicable Grantor itself), formed by or resulting from such consolidation or merger which are owned by any Grantor; and
(iv) allproceedsofanyoftheforegoing(collectively,andtogetherwith the property described in clauses (i), (ii)and (iii)above, the “OwnershipCollateral”).
IT BEING UNDERSTOOD, HOWEVER, that, notwithstanding anything contained herein to the contrary,thesecurityinterestgrantedunderthis Section2.01will notattach to,and the term “Collateral” shall not include, any Excluded Assets.
Section2.02 Perfection.Concurrently with the execution and delivery of this Agreement,theGrantorsshallfile,orshallcausetobefiled,andherebyauthorizestheCollateral Agenttofile,suchfinancingstatementsandotherdocumentsinsuchofficesasmaybenecessary or as theCollateral Agent mayrequest toperfect thesecurityinterestsgrantedbySection 2.01of this Agreement andexecute and deliver, or cause to be executed and delivered, such short-form assignments or security agreements relating to Collateral consisting of the Intellectual Property as may be necessary or as the Required Lenders may reasonably require. Without limiting the foregoing, each Grantor authorizes the filing of UCC financing statements describing the Collateral as “all assets whether now owned or hereafter acquired” or “all personal property” of
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such Grantor (providedthat no such description shall be deemed to modify the description of Collateral set forth in Section2.01) and hereby authorizes the filing of any UCC financing statements by or on behalf of the Required Lenders with such descriptions of collateral or describing the collateral using words of similar effect.
Section 2.03 DeliveryandOtherPerfection.EachGrantorshall:
(a)If any certificates or other instruments representing or evidencing any Pledged Ownership Interests constitutingpart of the Collateral are received byDevco Borrower, Opco Borrower or any other Grantor, as applicable, forthwith (i) deliver to the Collateral Agent the certificates or other instruments representing or evidencing the same, dulyendorsed in blank or accompanied by such instruments of assignment and transfer in such form and substance as the Collateral Agent (at the written direction of the Administrative Agent) may reasonably request,allofwhichthereaftershallbeheldbytheCollateralAgent,pursuanttothetermsofthis Agreement, aspart oftheCollateraland(ii)takesuchotheractionas theCollateralAgent(at the written direction of the Administrative Agent) may reasonably deem necessaryor appropriate to duly record or otherwise perfect the security interest created hereunder in such Collateral; provided,however,inordertofacilitatethereceiptofanycertificatesorinstrumentsrepresenting or evidencing replacement Pledged Ownership Interests, dulyendorsed in blank oraccompanied by such instruments of assignment and transfer, the Collateral Agent shall return to the applicable Grantor for cancellation the original certificates representing or evidencing such Pledged Ownership Interests being replaced and such instruments of assignment and transfer related thereto previously delivered to it;
(b)delivertotheCollateralAgentanyandall Instrumentsconstitutingpartof the Collateral in which such Grantor purports to grant a security interest hereunder, endorsed and/or accompanied bysuch instruments of assignment and transfer in such form and substance as the Collateral Agent may reasonably request; provided, that so long as no Event of Default shall have occurred and be continuing, such Grantor may retain for collection any Instruments, includingperformancebonds,receivedbysuchGrantorintheordinarycourseofitsbusinessand the Collateral Agent shall, promptly upon request of such Grantor, at such Grantor’s expense, make appropriate arrangements for making anyInstrumentpledged bysuch Grantor available to such Grantor for purposes of presentation, collection or renewal (any such arrangement to be effected against trust receipt or like document);
(c)give, execute, deliver, file, record, authorize or obtain all such financing statements, notices, instruments, documents, agreements or consents or other papers as may be necessaryordesirable,orasmayberequestedbytheCollateralAgent(atthewrittendirectionof the Administrative Agent), to create, preserve, perfect or validate the security interest granted pursuant hereto or to enable the Collateral Agent to exercise and enforce its rights hereunder with respect to such pledge and security interest, including, without limitation, upon the occurrence and duringthe continuation of an Event of Default, causing anyor all of thePledged Ownership Interests to be transferred of record in the name of the Collateral Agent or its nominee (for the avoidance of doubt, the Collateral Agent agrees that if anyPledged Ownership InterestsaretransferredintoitsnameorthenameofitsnomineepriortoanEventofDefault,the Collateral
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Agent will thereafter promptly give to the Pledgor copies of any notices and communications received by it with respect to the Pledged Ownership Interests pledged by the Pledgor hereunder, providedthat notices to account debtors in respect of any Accounts, Chattel Paper or General Intangibles and to obligors on Instruments shall besubject to theprovisions of clause (d)below;
(d)upon the occurrence and during the continuation of anyEvent of Default, upon request of the Collateral Agent (at the written direction of the Administrative Agent), promptly notify (and such Grantor hereby authorizes the Collateral Agent so to notify) each account debtor in respect of anyAccounts, Chattel Paper, Instruments or General Intangibles of such Grantor that such Collateral has been assigned to the Collateral Agent hereunder, and that any payments due or to become due in respect thereof are to be made directly to the Collateral Agent;
(e)keep full and accurate books and records relating to the Collateral, and stamp or otherwise mark such books and records in such manner as the Collateral Agent (at the written direction of the Administrative Agent) may reasonably request in order to reflect the security interests granted by this Agreement;
(f)forward to the Collateral Agent copies of any notices or communications received by such Grantor with respect to the Collateral; and
(g)execute and deliver and cause to be filed, such continuation statements, and do such other acts and things, as maybenecessaryto maintain theperfection of thesecurity interest granted pursuant hereto.
Section2.04Other FinancingStatements and Liens. Without the written consent of the Collateral Agent (at the written direction of the Administrative Agent), no Grantor shall (a) file or suffer to be on file, or authorize or permit to be filed or to be on file, in any jurisdiction, any financingstatementorlikeinstrumentwithrespecttoanyoftheCollateralinwhichthe Collateral Agent is not named as the sole secured party for the benefit of the Secured Parties, except for any such filings made solely in connection with Permitted Liens, or (b)cause or permitanyPersonotherthantheCollateralAgenttohave“control”(asdefinedinSection9-104, 9-105, 9-106 or 9-107 of the UCC), except in connection with Permitted Liens, of any Deposit Account, Electronic Chattel Paper, Investment Property or Letter-of-Credit Right constituting part of the Collateral.
Section 2.05 PreservationandProtectionofSecurityInterests.EachGrantorshall:
(a)upon the acquisition after the date of this Agreement by such Grantor of anyInstruments,DepositAccount,otherInvestmentProperty,ElectronicChattelPaper,Letter-of Credit Rights or other Equipment, in each case constituting part of the Collateral, covered by a certificate of title or ownership, promptly(i) take such action with respect to that Collateral as is specified for that type of Collateral in Section 2.03and(ii) take all such other actions, and authenticate or sign and file or record such other records or instruments, as are necessary or as the Collateral Agent (at the written direction of the Administrative Agent) may reasonably request to create,perfectandestablish thepriorityofthe Liensgranted bythisAgreement inany
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and all of the Collateral, to preserve the validity, perfection or priority of the Liens granted by this Agreement in any and all of the Collateral or to enable the Collateral Agent to exercise its remedies, rights, powers and privileges under this Agreement;
(b)upon such Grantor’s acquiring, or otherwise becoming entitled to the benefits of, any Copyright (or copyrightable material), Patent (or patentable invention), Trademark (or associated goodwill) or other Intellectual Property or upon or prior to such Grantor’s filing, either directly or through the Collateral Agent, any licensee or any other designee, of any application with any Governmental Authority for any Copyright, Patent, Trademark or other Intellectual Property, in each case constituting part of the Collateral, and in each case after the date of this Agreement, execute and deliver such contracts, agreements and other instruments as the Collateral Agent (at the written direction of the Administrative Agent) may reasonably request to create, perfect and establish the priority of the Liens granted by this Agreement in that and any related Intellectual Property; and
(c)whether with respect to Collateral as of the date of this Agreement or Collateral in which such Grantor acquires rights in the future, authorize, give, authenticate, execute, deliver, file or record anyand all financing statements, notices, contracts, agreements or other records or instruments, obtain any and all Applicable Permits, and take all such other actions,asarenecessaryorastheCollateralAgent(atthewrittendirectionoftheAdministrative Agent)mayreasonablyrequesttocreate,perfectandestablishthepriorityoftheLiensgrantedby this Agreement in any and all of the Collateral, to preserve the validity, perfection or priority of the Liens granted by this Agreement in any and all of the Collateral or to enable the Collateral Agent to exercise its remedies, rights, powers and privileges under this Agreement, including upon the occurrence and during the continuation of an Event of Default, causing any or all Securities to be transferred of record into the name of the Collateral Agent or its nominee.
Section 2.06 Attorney-in-Fact.
(a)Without limiting the rights and powers granted by this Agreement to the CollateralAgent,upontheoccurrenceandduringthecontinuanceofanyEventofDefault(other than with respect to clause (i)below), the Collateral Agent and any officer or agent thereof is hereby appointed the attorney-in-fact of each Grantor, with full power of substitution and with full irrevocable power and authority in the place and stead of each Grantor and in the name of each Grantor or in its own name, for the purpose of carrying out the provisions of this Agreement, including Sections2.02, 2.03, 2.04and 2.05and ArticleV, and taking any action and executing any instruments that the Collateral Agent (at the written direction of the Administrative Agent) may deem necessary, advisable or desirable to accomplish the purposes hereof, including (i) to preserve the validity, perfection and priorityof the Liens granted bythis Agreement; (ii) todirect anypartyliable for anypayment under anyCollateral to makepayment of any moneys due or to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct, (iii) to execute, in connection with any sale or disposition of the Collateral, any endorsements, assignments, bills of sale or other instruments of conveyance or transfer with respect to all or any part of the Collateral, (iv) to receive, endorse and collect all checks made payable to the order of each Grantor representing any dividend, payment or other
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distributioninrespectoftheCollateraloranypartthereofandtogivefulldischargeforthesame and (v) at any time, or from time to time, at the Collateral Agent’s option, to do all acts and thingsthattheCollateralAgent(atthewrittendirectionoftheAdministrativeAgent)determines to benecessaryto protect, preserve or realize upon theCollateral and theCollateral Agent’s and theotherSecured Parties’securityinterests therein and toeffect theintent of this Agreement, all as fully and effectively as each Grantor might do. This appointment as attorney-in-fact is irrevocable and coupled with an interest.
(b)The expenses of the Collateral Agent incurred in connection with actions undertaken as provided in this Section 2.06, together with interest thereon at a rate per annum equaltotheDefaultRateundertheCreditAgreement,fromthedateofpaymentbytheCollateral Agent to the date reimbursed by the Grantors, shall be payable by the Grantors, on a joint and several basis, to the Collateral Agent on demand and shall constituteSecured Obligations and be secured by the Liens of the Security Documents.
(c)Without limiting the rights and powers of the Collateral Agent under Section 2.06(a), each Grantor hereby appoints the Collateral Agent as its attorney-in-fact, effective the date of this Agreement and terminating upon the termination of this Agreement, at theCollateralAgent’soption,butwithoutanyobligationtodoso,forthepurposeofperforming, executing, and filing allsuch contracts, agreements andotherdocumentsasarecontemplatedby Section2.05(b).Thisappointmentasattorney-in-factisirrevocableandcoupledwithaninterest.
(d)Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.
(e)The right granted by this Agreement to take the actions provided in this Section 2.06shall not obligate the Collateral Agent or any other Secured Party to take such action. In acting under this Section 2.06, the Collateral Agent shall act pursuant to a written direction of the Administrative Agent.
Section 2.07 IntellectualProperty.
(a)For the purpose of enabling the Collateral Agent to exercise the rights, remedies, powers and privileges under Section 5.01at that time ortimes as theCollateral Agent is lawfully entitled to exercise those rights, remedies, powers and privileges, and for no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent assignable, an irrevocable,nonexclusivelicense(exercisablewithoutpaymentofroyaltyorothercompensation to such Grantor) to use, assign, license or sublicense any of the Intellectual Property of such Grantor, together with reasonable access to all media in which anyof the licensed itemsmaybe recorded or stored and to all computer programs used for the compilation or printout of those items.
(b)Notwithstanding anything contained herein to the contrary, but subject to theprovisions of Section 8.9 of theCredit Agreement, so long as no Event ofDefault shall have
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occurred and be continuing, each Grantor will be permitted to exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual Propertyin the ordinarycourse of the business of such Grantor. In furtherance of the foregoing, unless an Event of Default shall have occurred and be continuing, the Collateral Agent shall from time to time, upon the request and at the expense of such Grantor, execute anddeliver any instruments, certificates or other documents, in the form so requested, that such Grantor shall have certified are appropriate (in its judgment) to allow it to take any action permitted above (including relinquishment of thelicenseprovidedpursuant toclause(a)immediatelyaboveas to any specific Intellectual Property). Further, upon the payment in full of all of the Secured Obligations or earlier expiration of this Agreement or release of the Collateral, the Collateral Agent shall grant back to such Grantor the license granted pursuant to clause(a) immediately above. The exercise of rights and remedies under Section 5.01bythe Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by such Grantor in accordance with the first sentence of this clause (b).
Section2.08Use of Collateral. So long as no Event of Default has occurred and is continuing, each Grantor shall be entitled to possess the Collateral, subject to the rights, remedies, powers and privileges of the Collateral Agent under Articles IIand V.
Section 2.09 RightsandObligations.
(a)No reference in this Agreement to proceeds or to the sale or other dispositionofCollateralshallauthorizeanyGrantortosellorotherwisedisposeofanyCollateral except to the extent permitted bythe terms of the other Credit Documents. The Collateral Agent shall not be required to take steps necessary to preserve any rights against prior parties to any part of the Collateral.
(b)Each Grantor shall remain liable to perform its duties and obligations underthecontractsandagreementsincludedintheCollateralinaccordancewiththeirrespective terms to the same extent as if this Agreement had not been executed and delivered. The exercise by the Collateral Agent of any right, remedy, power or privilege in respect of this Agreement shall not release such Grantor from any of its duties and obligations under those contracts and agreements.ExceptasexpresslysetforthintheCreditDocuments,theCollateralAgentshallnot haveanyduty,obligationorliabilityunderthosecontractsandagreementsorwithrespecttoany Applicable Permit included in the Collateral by reason of this Agreement or any other Credit Document,norshalltheCollateralAgentbeobligatedtoperformanyofthedutiesorobligations of such Grantor under any such contract or agreement or any such Applicable Permit or to take anyaction tocollect orenforceanyclaim(forpayment)underanysuchcontract oragreement or Applicable Permit.
(c)No Lien granted by this Agreement in each Grantor’s right, title and interest in any contract, agreement or Applicable Permit shall be deemed to be a consent by the Collateral Agent to any such contract, agreement or Applicable Permit.
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Section 2.10 Termination.
(a)Upon the Discharge Date but subject to Section 7.14, this Agreement and thesecurityinterestgrantedherebyshallautomaticallyterminate,allrightstotheCollateralshall automatically revert to the applicable Grantor, and the Collateral Agent shall, at the Grantors’ expense, following notice of such occurrence from the Administrative Agent, forthwith causeto be assigned, transferred and delivered, against receipt but without any recourse, warranty or representation whatsoever, any remaining Collateral and money received in respect of the Collateral, to or on the order of the applicable Grantor, including, without limitation, delivering to the applicable Grantor any Instruments, Certificated Securities or any other Collateral in the Collateral Agent’s possession, together with any instruments of assignment and transfer with regard to anycertificates evidencing anyPledged Ownership Interests that were transferred into the name of the Collateral Agent or its nominee pursuant to Section2.03(c). The Collateral Agent shall also execute and deliver to each Grantor, at the Grantors’ expense, upon such termination such UCC termination statements and other documentation as shall be reasonably requested by such Grantor to effect the termination and release of the Liens created under this Agreement.Thesecurityinterestcreatedherebyshallalsobereleasedwithrespecttoanyportion of the Collateral that is sold, transferred or otherwise disposed of in compliance with the terms and conditions of the Credit Documents.
(b)NotwithstandinganythingtothecontraryinthisAgreement,butsubjectto Section 7.14, upon the occurrence of the Back-Leverage Date with respect to a Project:
(i)the Collateral granted in the Pledged Ownership Interests in the First-Tier Subsidiary and the Second-Tier Subsidiary that directly or indirectly owns such Project shall terminate andtheCollateral Agentshall, at the Grantors’ expense, following notice of such occurrence from the Administrative Agent, forthwith cause to be assigned, transferred and delivered, against receipt but withoutanyrecourse,warrantyorrepresentationwhatsoever,anyremaining Collateral andmoneyreceivedin respectofsuchPledged Ownership Interests,to or on the order of the Grantor of such Pledged Ownership Interests, including, without limitation, delivering to such Grantor anyinstruments of assignment and transfer with regard to any certificates evidencing any such Pledged Ownership Interests that were transferred into the name of the Collateral Agent or its nominee pursuant to Section2.03(c), and execute and deliver to such Grantor, at the Grantors’ expense, such UCC termination statements and other documentation as shall be reasonably requested by the Grantors to effect the termination and release of the Liens with respect to such Pledged Ownership Interests created under this Agreement,
(ii)the security interest granted by such First-Tier, such Second-Tier Subsidiary, and the HoldCo that directly or indirectly owns such Project shall automaticallyterminate, all rights to the applicable Collateral shall automatically revert to such Person, and the Collateral Agent shall, at the Grantors’ expense, following notice of such occurrence from the Administrative Agent, forthwith
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cause to be assigned, transferred and delivered, against receipt but without any recourse,warrantyorrepresentationwhatsoever,anyremainingCollateralofsuch Person and money received in respect of such Collateral, to or on the order of such Person, respectively, including, without limitation, delivering any Instruments or Certificated Securities, in the Collateral Agent’s possession,
(iii)the Collateral Agent shall execute and deliver to such Person, at the Grantors’ expense, such UCC termination statements and other documentation as shall be reasonably requested by such Person to effect the termination and release of the applicable Liens created under this Agreement,
(iv)withoutlimitingormodifyingtheobligationsofanyotherGrantor, the Guaranty provided by such Person pursuant to Article VIhereof shall be terminated, and
(v)eachsuchPersonshallceasetobeaGrantorhereunder.
(c)Notwithstanding anything to the contraryin this Agreement, but subject to Section 7.14, upon the occurrence of the date on which the Back-Leverage Date for all Projects shall have occurred:
(i)the security interest granted by the Devco Borrower hereby shall automaticallyterminate, all rights to the applicable Collateral shall automatically revert to the Devco Borrower, and the Collateral Agent shall, at the Grantors’ expense, following notice of such occurrence from the Administrative Agent, forthwith cause to be assigned, transferred and delivered, against receipt but without any recourse, warranty or representation whatsoever, any remaining applicable Collateral and money received in respect of such Collateral, to or on theorderoftheDevcoBorrower,including,withoutlimitation,deliveringtothe Devco Borrower any Instruments, Certificated Securities or any other Collateral in the Collateral Agent’s possession,
(ii)the Collateral Agent shall execute and deliver to the Devco Borrower, at the Grantors’ expense such UCC termination statements and other documentation as shall be reasonably requested by the Devco Borrower to effect the termination and releaseofthe applicable Liens createdunderthis Agreement, and
(iii)theDevcoBorrowershallceasetobeaGrantorhereunder.
Section2.11 Commercial Tort Claims. Each Grantor agrees that, if such Grantor shall acquire any interestin any Commercial Tort Claim in excess of $1,000,000 (whether from anotherPersonorbecausesuchCommercialTortClaimshallhavecomeintoexistence),(i)such Grantor shall, promptly upon such acquisition, deliver to the Collateral Agent a notice of the existence and nature of such Commercial Tort Claim and deliver a supplement to Annex 5in form and substance reasonablyacceptable to theCollateral Agent (at the written direction of the
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Administrative Agent) containing a specific description of such Commercial Tort Claim, certified by such Grantor as true, correct and complete, (ii)the provision of Section 2.01shall apply to such Commercial Tort Claim (and such Grantor authorizes the Collateral Agent to supplement such annex with a description of such Commercial Tort Claim if such Grantor fails todeliverthesupplementdescribedinclause(i)),and(iii)suchGrantorshallexecuteanddeliver to the Collateral Agent, in each case in form and substance reasonably satisfactory to the Collateral Agent, any certificate, agreement and other document, and take all other action, determined by the Collateral Agent (at the written direction of the Administrative Agent) to be reasonably necessary or appropriate for the Collateral Agent to obtain a first-priority, perfected security interest in all such Commercial Tort Claims. Any supplement to Annex 5delivered pursuant to this Section 2.11shall become part of such Annex 5for all purposes hereunder.
Section2.12 GovernmentalAuthorities.Consent,authorization,approvalorother action by, and notice to or filing with, applicable Governmental Authorities maybe required for the exercise by the Collateral Agent or the Secured Parties of the remedies in respect of the CollateralpursuanttothisAgreementinconnectionwiththesale,transferorotherdispositionof the Collateral under laws affecting the regulation of ownership or operation of utility assets (including the disposition or transfer of facilities subject to the jurisdiction of FERC).
Section 2.13 SpecialProvisionsRelatingtoPledgedOwnershipInterests.
(a)Subject to Section 5.01, the applicable Grantor shall have the right to exercise all voting, consensual and other powers of ownership pertaining to the applicable Pledged Ownership Interests for all purposes not inconsistent with the terms of any Credit Document or other document pursuant to which any other Secured Obligation is incurred, as applicable, provided that the applicable Grantor shall not vote the Pledged Ownership Interests in any manner that is inconsistent with the terms of any Credit Document or other document pursuant to which any other Secured Obligation is incurred, as applicable; and the Collateral Agentshall,attheapplicableGrantor’sexpense,executeanddelivertotheapplicableGrantoror causetobeexecutedanddeliveredtotheapplicableGrantorallsuchproxies,powersofattorney, dividendandotherordersandotherinstruments,withoutrecourse,astheapplicableGrantormay reasonably request for the purpose of enabling the applicable Grantor to exercise the rights and powers that it is entitled to exercise pursuant to this Section 2.13.
(b)IfanEventofDefaulthasoccurredandiscontinuing(subjectto Section5.01), the Collateral Agent shall have the right, to the fullest extent permitted by Applicable Law, to exercise all voting, consensual and other powers of ownership pertaining to the Pledged Ownership Interests as if the Collateral Agent were the sole and absolute owner thereof (and the applicable Grantor agrees to take all such action as may be appropriate to give effect to such right).
(c)So long as no Event of Default has occurred and is continuing, the applicable Grantor shall be entitled to receive and retain any and all dividends and distributions on the Ownership Collateral made in accordance with the Credit Documents.
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(d)If any Event of Default has occurred and is continuing, and whether or not the Collateral Agent or any Secured Party exercises any available right to declare any Secured Obligation due and payable or seeks or pursues any other right, remedy, power or privilege available to it under Applicable Law, this Agreement or any other Credit Document, as applicable, all dividends and other distributions on the Ownership Collateral shall be paid directly to the Collateral Agent and retained by it as part of the Ownership Collateral, subject to the terms of this Agreement, and, if the Collateral Agent so requests, the applicable Grantor shall execute and deliver to the Collateral Agent appropriate additional dividend, distribution and other orders and instruments to that end; providedthatifthatEventofDefaultiscured,anysuch dividend or distribution paid to the Collateral Agent prior to that cure shall, upon request of the applicable Grantor (except to the extent applied to the Secured Obligations), be returned by the Collateral Agent to the applicable Grantor.
ARTICLE III
REPRESENTATIONS
As of thedateofthisAgreement,each TaxEquityEffectiveDateand each TCStructure Effective Date:
Section 3.01 Organization;Power; Authorization; Validity.
(a)Without limiting the generality of this Section 3.01, each Grantor represents and warrants that (i)such Grantor is duly formed, validly existing and in good standingunder the laws of the jurisdiction of its formation and, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect, is qualified to do businessin,andisingoodstandingin,eachjurisdictionwheresuchqualificationisrequired,and has all requisite limited liability company power and authority to carry on its business as now conducted, (ii)the execution, deliveryand performance bysuch Grantor of its obligations under this Agreement, the Credit Agreement, the other Credit Documents and the Project Documentsto which it is a party are within such Grantor’s limited liability company, partnership or corporatepowersandhavebeendulyauthorizedbyallnecessarylimitedliabilitycompany, partnershiporcorporateaction,and,ifrequired,byallnecessarymember,partnerorshareholder action, and (iii)this Agreement has been duly executed and delivered by such Grantor and constitutes a legal, valid and binding obligation of such Grantor, enforceable against such Grantor in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to generalprinciplesofequity,regardlessofwhetherconsideredinaproceedinginequityoratlaw.
(b)Annex 1correctly sets forth such Grantor’s full and correct legal name, type of organization, jurisdiction of organization, chief executive office, place of business and mailing address as of the date of this Agreement.
(c)Except as set forth on Annex 1, such Grantor has notpreviously changed its location (as defined in Section 9-307 of the UCC), its name orpreviously become a “new debtor” (as defined in the UCC) with respect to a currentlyeffective securityagreement entered into by another Person.
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Section3.02 Title. Such Grantor is the sole beneficial owneroftheCollateral in which itpurportstograntasecurityinterestpursuanttothisAgreement,andnoLienexistsorwillexist upon such Collateral, except for the Permitted Liens. The security interest created pursuant hereto constitutes a valid and perfected first prioritysecurityinterest in theCollateral,subject to no other Liens except Permitted Liens, and, as to the priority of such Liens, subject only to Permitted Liens that, pursuant to Applicable Law, are entitled to a higher priority than or equal priority to the Liens granted by this Agreement. The Liens granted by this Agreement have attached to allCollateralowned bytheGrantorsandconstitute aperfectedsecurityinterest inall of the Collateral (other than Intellectual Property registered or otherwise located outside of the United States of America), subject to no other Liens except Permitted Liens, and as to the priorityof such Liens, Permitted Liens that, pursuant to Applicable Law, are entitledto ahigher priority than or equal to the Liens granted by this Agreement.
Section3.03 IntellectualProperty.Annexes2,3,and4respectively,setfortha complete and correct list of all Copyrights, Patents and Trademarks owned by such Grantor on the date hereof.
Section3.04 CommercialTortClaims.Annex5setsforthacompleteandcorrectlistof all Commercial Tort Claims in excess of $1,000,000 of such Grantor in existence on the date hereof.
Section3.05 Deposit and Securities Accounts. Annex 6sets forth a complete andcorrect list of all Deposit Accounts and Securities Accounts for such Grantor on the date hereof which are not Collateral Accounts.
Section 3.06 PledgedOwnershipInterests.
(a)The Pledged Ownership Interests identified in Annex 7are duly authorized, validly existing, fully paid and nonassessable, and none of the Pledged Ownership Interests are subject to any contractual restriction, upon the pledge or transfer of such Pledged Ownership Interests (except for any such restriction contained (u)herein, (v)in the other Credit Documents, (w)in any applicable Tax Equity Documents, (x) in any applicable TC Structure Documents, (y) in any applicable Tax Credit Transfer Documentation or (z)in the Power Purchase Agreements).SuchPledgedOwnershipInterestsexistinacertificatedform,exceptfor the membership interests of AC1 ASOA.
(b)The Pledged Ownership Interests identified in Annex 7constitute, (i) all of the issued and outstanding membership interests in each Devco Borrower Subsidiary then outstandingandownedbyDevcoBorrower(whetherornotregisteredinthenameof DevcoBorrower), (ii) all the issued and outstanding membership interests in AC1 ASOA then outstanding and owned by the American Beech Project Company (whether or not registered in the name of the American Beech Project Company), (iii) all the issued and outstanding membership interests in Bluebird IRB SPV then outstanding and owned bythe Bluebird Project Company (whether or not registered in the name of the Bluebird Project Company), (iv) all the issued and outstanding membership interests in the Prairie Project Company then outstanding and owned by Prairie Holdings (whether or not registered in the name of Prairie Holdings), (v)
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all of the issued and outstanding membership interests in each Opco Borrower Subsidiary then outstandingandownedbyOpcoBorrower(whetherornotregisteredinthenameof OpcoBorrower) and (vi) all of the issued and outstanding membership interests in the Bluebird TEPartnershipthenoutstandingandownedbyFMGClassBMember(whetherornotregistered in the name of FMG Class B Member) and Annex7correctly identifies the issuer of such Pledged Ownership Interests and the respective number (and registered owners) of the interests identified in Annex 7.
(c)
(i)no Person other than Devco Borrower is the registered owner ofany Devco Borrower Subsidiary Pledged Ownership Interests;
(ii)no Person other than the American Beech Project Companyis the registered owner of the AC1 ASOA Pledged Ownership Interests;
(iii)no Person other than Bluebird Project Company is the registered owner of the Bluebird IRB SPV Pledged Ownership Interests;
(iv)noPersonotherthanPrairieHoldingsistheregisteredownerofthe Prairie Pledged Ownership Interests;
(v)noPersonotherthanOpcoBorroweristheregisteredownerofany Opco Borrower Subsidiary Pledged Ownership Interests; and
(vi)no person other than the FMG Class B Member is the registeredowner of the Bluebird TE Pledged Ownership Interests.
Section 3.07 ConsenttoTransfer.
(a)DevcoBorrower, as the managing member, general partner or director of eachDevcoBorrower Subsidiary, and the sole owner of the membership interests, partnership interest or shares set forth in Annex 7, hereby irrevocably consents (for all purposes under the applicable Organizational Documents of each Devco Borrower Subsidiary and notwithstanding anything to the contrary set forth in suchOrganizational Documents) to the transfer by the Collateral Agent or the applicable Secured Parties of the applicable Devco Borrower Subsidiary Pledged Ownership Interests to any Person upon the occurrence and during the continuation of anEventofDefaultanduponexercisebytheCollateralAgentofitsremediesunder Sections5.01and 5.03. Consent, authorization, approval or other action by, and notice to or filing with, applicable Governmental Authorities may be required for the exercise by the Collateral Agent or the applicable Secured Parties of the remedies in respect of the Collateral pursuant to this Agreement in connection with the sale, transfer or other disposition of the Collateral under laws affecting the offering and sale of securities generally or the regulation of ownership or operation of utilityassets (including the disposition or transfer of facilities subject to the jurisdiction of FERC).
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(b)Opco Borrower, as the managing member, general partner or director of each Opco Borrower Subsidiary, and the sole owner of the membership interests, partnership interest or shares set forth in Annex 7, hereby irrevocably consents (for all purposes under the applicable Organizational Document of each Opco Borrower Subsidiary and notwithstanding anything to the contrary set forth in suchOrganizational Documents) to the transfer by the Collateral Agent or the applicable Secured Parties of the applicable Opco Borrower Subsidiary Pledged Ownership Interests to any Person upon the occurrence and during the continuation of anEventofDefaultanduponexercisebytheCollateralAgentofitsremediesunder Sections5.01and 5.03. Consent, authorization, approval or other action by, and notice to or filing with, applicable Governmental Authorities may be required for the exercise by the Collateral Agent or the applicable Secured Parties of the remedies in respect of the Collateral pursuant to this Agreement in connection with the sale, transfer or other disposition of the Collateral under laws affecting the offering and sale of securities generally or the regulation of ownership or operation of utilityassets (including the disposition or transfer of facilities subject to the jurisdiction of FERC).
(c)The American Beech Project Company, as the sole owner of the membership interests set forth in Annex 7, hereby irrevocably consents (for all purposes under theapplicableAmericanBeechLLCAgreementandnotwithstandinganythingtothecontraryset forth in such American Beech LLC Agreement) to the transfer by the Collateral Agent or the applicable Secured Parties of the AC1 ASOA Pledged Ownership Interests to any Person upon the occurrence and during the continuation of an Event of Default and upon exercise by the Collateral Agent of its remedies under Sections5.01and 5.03. Consent, authorization, approval or other action by, and notice to or filing with, applicable Governmental Authorities may be required for the exercise by the Collateral Agent or the applicable Secured Parties of the remedies in respect of the Collateral pursuant to this Agreement in connection with the sale, transfer or other disposition of the Collateral under laws affecting the offering and sale of securities generally or the regulation of ownership or operation of utility assets (including the disposition or transfer of facilities subject to the jurisdiction of FERC).
(d)The Bluebird Project Company, as the managing member of the Bluebird IRBSPV,andthesoleownerofthemembershipinterestssetforthinAnnex7,hereby irrevocably consents (for all purposes under the applicable Bluebird IRB SPV LLC Agreement and notwithstanding anything to the contrary set forth in such Bluebird LLC Agreement) to the transfer by the Collateral Agent or the applicable Secured Parties of the Bluebird IRB SPV Pledged Ownership Interests to any Person upon the occurrence and during the continuation of anEventofDefaultanduponexercisebytheCollateralAgentofitsremediesunder Sections5.01and 5.03. Consent, authorization, approval or other action by, and notice to or filing with, applicable Governmental Authorities may be required for the exercise by the Collateral Agent or the applicable Secured Parties of the remedies in respect of the Collateral pursuant to this Agreement in connection with the sale, transfer or other disposition of the Collateral under laws affecting the offering and sale of securities generally or the regulation of ownership or operation of utilityassets (including the disposition or transfer of facilities subject to the jurisdiction of FERC).
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(e)Prairie Holdings, as the managing member of the Prairie Project Company, and the sole owner of the membership interests set forth in Annex 7, hereby irrevocably consents (for all purposes under the applicable Prairie LLC Agreement and notwithstandinganythingtothecontrarysetforthinsuchPrairieLLCAgreement)tothetransfer by the Collateral Agent or the applicable Secured Parties of the Prairie Pledged Ownership Interests to any Person upon the occurrence and during the continuation of an Event of Default anduponexercisebytheCollateralAgentofitsremediesunderSections5.01and5.03.Consent, authorization, approval or other action by, and notice to or filing with, applicable Governmental Authorities may be required for the exercise by the Collateral Agent or the applicable Secured PartiesoftheremediesinrespectoftheCollateralpursuanttothisAgreementinconnectionwith the sale, transfer or other disposition of the Collateral under laws affecting the offering and sale of securities generallyor the regulation ofownership oroperation of utilityassets (includingthe disposition or transfer of facilities subject to the jurisdiction of FERC).
(f)FMG Class B Member, as the managing member of the Bluebird TE Partnership, and the sole owner of the membership interests set forth in Annex 7,hereby irrevocably consents (for all purposes under the applicable Bluebird TE Partnership LLC Agreement and notwithstanding anything to the contrary set forth in such Bluebird TE Partnership LLC Agreement) to the transfer by the Collateral Agent or the applicable Secured Parties of the applicable Bluebird TE Pledged Ownership Interests to any Person upon the occurrence and during the continuation of an Event of Default and upon exercise by the Collateral Agent of its remedies under Sections5.01and 5.03. Consent, authorization, approval or other action by, and notice to or filing with, applicable Governmental Authorities may be required for the exercise by the Collateral Agent or the applicable Secured Parties of the remedies in respect of the Collateral pursuant to this Agreement in connection with the sale, transfer or other disposition of the Collateral under laws affecting the offering and sale of securities generally or the regulation of ownership or operation of utility assets (including the disposition or transfer of facilities subject to the jurisdiction of FERC).
ARTICLE IV
COVENANTS
Section4.01 Further Assurances. Each Grantor agrees that, from time to time upon the written request of the Collateral Agent (at the written direction of the Administrative Agent), such Grantor shall execute and deliver such further documents and do such other acts and things as the Collateral Agent may reasonably request in order to fully effect the purposes of this Agreement. Without limiting the generality of the foregoing, but subject to Permitted Dispositions, each Grantor shall maintain the security interest created by this Agreement as a perfectedsecurityinteresthavingatleasttheprioritydescribedinSection3.02andsubjecttoany Permitted Liens, shall defend such security interest against the claims and demands of all Persons whomsoever.
Section4.02 Covenants. Each Grantor agrees that it will be the sole owner of the Pledged Ownership Interests identified as being owned bysuch Grantor on Annex 7hereto, and except for the Operative Documents to which it is a party, such Grantor shall not execute a
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binding agreement to become a general or limited partner in anypartnership, or a joint venturer in any joint venture or a member in any limited liability company.
Section4.03 ConsenttoTransfer.WithoutthepriorwrittenconsentofCollateralAgent (at the written direction of the Administrative Agent) or as otherwise permitted by the Credit Agreement, no Grantor will cause, suffer or permit, the sale, assignment, conveyance or other transfer of all or anyportion of the Pledged Ownership Interests owned bysuch Grantor.
Section 4.04 Preservation of Collateral. With respect to any new Subsidiary created or acquired after the Financial Closing Date by any Borrower or any other Grantor and directly owned by such Borrower or such Grantor, as applicable, such Borrower or such Grantor, as applicable, shall promptlyafter such Subsidiaryis created or acquired (but in no event later than the earlier of five (5) Business Days after such Subsidiaryfirst acquiring anymaterial assets and ten (10) Business Days after the date of such creation or acquisition), (i) notify the AdministrativeAgentofthecreationoracquisitionofsuchSubsidiary,(ii)causesuchSubsidiary to execute and deliver to the Administrative Agent a Guarantor Supplement, substantially in the form of Annex 8to this Agreement, pursuant to which it will become a Guarantor and a Grantor andbeboundasaGuarantorandasaGrantorbytheapplicabletermsandprovisionsthereof, (iii) take such other actions as are reasonably necessary to grant to the Collateral Agent a perfectedfirstpriorityLienintheEquityInterestsofsuchSubsidiaryandallCollateralownedby such Subsidiary (including the execution of an amendment to this Agreement) and (iv) upon request of any Lender, provide all documentation and other information required by bank regulatoryauthoritieswithrespecttosuchSubsidiary,includingaproperlycompletedandsigned applicable IRS Form W-8, under applicable “know-your-customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, which are applicable to such Lender.
ARTICLEV
REMEDIES
Section 5.01 Eventsof Default, Etc.If anyEventof Defaultshallhaveoccurredandbe continuing, at the written direction of the Administrative Agent:
(a)TheCollateralAgentmayrequireeachGrantorto,andsuchGrantorshall, assemble the Collateral owned by it at such place or places, reasonably convenient to both the Collateral Agent and such Grantor, designated in the Collateral Agent’s request;
(b)TheCollateralAgentmaymakeanyreasonablecompromiseorsettlement it determines with respect to anyof the Collateral and mayextend the time of payment, arrange for payment in installments, or otherwise modifythe terms of all or anypart of the Collateral;
(c)The Collateral Agent may, in its name or in the name of the applicable Grantor or otherwise, demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for all or anypart oftheCollateral,butshall be under no obligation to do so;
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(d)The Collateral Agent may, upon ten (10) Business Days’ prior written notice to each Grantor of the time and place, with respect to all or any part of the Collateral which shall then be or shall thereafter come into the possession, custody or control of the Collateral Agent or any of its agents, sell, lease or otherwise dispose of all or any part of such Collateral, at such place or places as the Collateral Agent determines, for cash, for credit or for future delivery (without thereby assuming any credit risk) and at public or private sale, without demandofperformanceornoticeofintentiontoeffectanysuchdispositionoroftimeorplaceof any such sale (except such notice as is required above or by applicable statute and cannot be waived), and the Collateral Agent or any other Person may be the purchaser, lessee or recipient ofanyoralloftheCollateralsodisposedofatanypublicsale(or,totheextentpermittedbylaw, at any private sale) and thereafter hold the same absolutely, free from any claim or right of whatsoever kind, including any right or equity of redemption (statutory or otherwise), of the applicable Grantor, any such demand, notice and right or equity being hereby expressly waived and released. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the sale may be so adjourned;
(e)The Collateral Agent shall have, and may exercise, all of the rights, remedies, powers and privileges with respect to theCollateral of asecuredpartyunder the UCC (whether or not the UCC is in effect in the jurisdiction where such rights, remedies, powers and privileges are asserted) and such additional rights, remedies, powers and privileges to which a secured party is entitled under the laws in effect in any jurisdiction where any rights, remedies, powers and privileges in respect of this Agreement or the Collateral may be asserted, including the right, to the maximum extent permitted by law, to exercise all voting, consensual and other powersofownershippertainingtotheCollateralasiftheCollateralAgentwerethesoleand absoluteowneroftheCollateral(andeachGrantoragreestotakeallsuchactionasmaybe appropriate to give effect to such right);
(f)The Collateral Agent may, to the fullest extent provided by law, have a court having jurisdiction appoint a receiver, which receiver shall take charge and possession of and protect, preserve, replace and repair the Collateral or any part thereof, and manage and operate the same, and receive and collect all rents, income, receipts, royalties, revenues, issues and profits therefrom. Each Grantor irrevocably consents and shall be deemed to have hereby irrevocablyconsentedtotheappointmentthereof,anduponsuchappointment,suchGrantorshall immediately deliver possession of such Collateral to the receiver. Each Grantor also irrevocably consents to the entryof an order authorizing such receiver to invest upon interest anyfunds held or received by the receiver in connection with such receivership. The Collateral Agent shall be entitled to such appointment as a matter of right, if it shall so elect, without the giving of notice to anyother partyand without regard to the adequacyof the securityof the Collateral; and
(g)The Collateral Agent may enforce one or more remedies hereunder, successivelyor concurrently, and such action shall not operate to estop or preventtheCollateral Agent from pursuing any other or further remedy which it may have hereunder or by law, and any repossession or retaking or sale of the Collateral pursuant to the terms hereof shall not
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operate to release any Grantor until full and final payment of any deficiency has been made in cash. Each Grantor, on a joint and several basis, shall reimburse the Collateral Agent upon demand for, or the Collateral Agent may apply any proceeds of Collateral to, the costs and expenses (including documented attorneys’ fees, transfer taxes and any other charges) incurred by the Collateral Agent in connection with any sale, disposition, repair, replacement, alteration, addition, improvement or retention of any Collateral hereunder.
Section5.02 Deficiency. If the proceeds of or other realization upon, the Collateral by virtue of the exercise of remedies under Section 5.01are insufficient to cover the costs and expensesofsuchexerciseandthepaymentinfulloftheSecuredObligations,eachGrantor,ona joint and several basis, shall remain liable for any deficiency.
Section 5.03 Private Sale.
(a)TheCollateralAgentshallincurnoliabilityasaresultofthesale,leaseor other disposition of all or any part of the Collateral at any private sale pursuant to Section 5.01conductedinacommerciallyreasonablemanner.EachGrantorherebywaivesanyclaimsagainst the Collateral Agent arising byreason of the fact that theprice at which theCollateral mayhave been sold at such a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the Secured Obligations, even if the Collateral Agent accepts the first offer received and does not offer the Collateral to more than one offeree.
(b)Each Grantor recognizes that, byreason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state securities laws, the Collateral Agent may be compelled, with respect to any sale of all or any part of the Collateral, to limit purchasersto those who willagree, among other things, to acquire the Collateral for their own account,forinvestmentandnotwithaviewtodistributionorresale.EachGrantoracknowledges that any such private sales may be at prices and on terms less favorable to the Collateral Agent than those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner and that the Collateral Agent shall have no obligation to engage in public sales and no obligation to delaythe sale of anyCollateral for the period of time necessaryto permit the respective issuer of such Collateral to register it for public sale.
Section 5.04 CashProceedsofCollateral.
(a)If so requested by the Collateral Agent (at the written direction of the Administrative Agent) at any time after the occurrence and during the continuation of an Event of Default, each Grantor shall instruct all applicable account debtors in respect of Accounts, Chattel Paper and General Intangibles and all obligors on Instruments to make all payments in respect thereofto one or more other banks in the United States of America specified by the Collateral Agent (at the written direction of the Administrative Agent) under arrangements, in form and substance reasonably satisfactory to the Collateral Agent, pursuant to which such Grantor shall have irrevocably instructed such other bank (and such other bank shall have
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agreed) to remit all proceeds of such payments directly to the Collateral Agent for deposit in accordance with the terms of Section7.5 of the Credit Agreement and the Depositary Agreement.
(b)Inadditiontotheforegoing,eachGrantoragreesthat,atanytimeafterthe occurrence and during the continuation of an Event of Default, if the proceeds of anyCollateral hereunder (including the payments made in respect of Accounts) shall be received by it, such Grantor shall as promptly as possible deposit such proceeds in accordance with the terms of Section7.5 of the Credit Agreement and the DepositaryAgreement. Until so deposited, allsuch proceeds shall be held in trust by such Grantor for and as the property of the Collateral Agent and shall not be commingled with anyother funds or propertyof such Grantor.
Section5.05Application of Proceeds. The Proceeds of or other realization upon, all or anypart of theCollateral byvirtue of theexercise ofremedies under Section 5.01,and anyother cash at the time held by the Collateral Agent or under this Article V, shall be applied by the Collateral Agent:
First, to the payment of (a) first, any and all fees, costs, expenses, losses, indemnities and other amounts due and payable to the Agents andtheDepositary under the Credit Documents, including all documented, reasonable out-of-pocket costs and expenses of such exercise of remedies (including documented reasonable fees and out-of-pocket expenses of the Agents, the Depositary and their respective agents and reasonable fees and expensesoftheir counsel) and(b) then,thecostsandexpensesoftheLendersandtheircounsel,ineachcaseratably in accordance with such amounts then due such Persons;
Next, to the payment in full oftheremainingSecured Obligations equally ratably in accordance with their respective amounts then due and owing; and
Finally,subjecttotherightsofanyotherholderofanyLienintherelevant Collateral,tothepaymenttotheapplicableGrantor,oritssuccessorsorpermitted assigns, or as a court of competent jurisdiction may direct, of any surplus then remaining.
ARTICLEVI
GUARANTY
Section6.01 Guaranty. Each Guarantor hereby absolutely, unconditionally and irrevocablyguaranteestotheCollateralAgent,onbehalfoftheSecuredParties,thedue,prompt, and faithful performance of, and punctual payment in full when due (whether at scheduled maturityoronanydateofarequiredprepaymentorbyacceleration,demandorotherwise)of,all ObligationsnoworhereafterexistingunderorinrespectoftheCreditDocuments(includingany extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or contingent, and whether for principal, interest,premiums,fees,indemnities,contractcausesofaction,costs,expensesorotherwise,but excluding any Excluded Swap Obligations (such obligations being the “GuaranteedObligations”), and agrees to pay any and all reasonable and documented expenses (including
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reasonable and documented fees and expenses of counsel) incurred by the Collateral Agent or any other Secured Party in enforcing any rights under this Section 6.01.
Section 6.02 GuarantyandGrantofSecurityInterestAbsolute.
(a)EachGuarantorguaranteesthattheGuaranteedObligationswillbepaidin accordance with the terms of the Credit Documents, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Secured Partywithrespectthereto.TothemaximumextentpermittedbyApplicableLaw,theobligations of each Guarantor under or in respect of this Agreement are independent of the ObligationsunderorinrespectoftheCreditDocuments,andaseparateactionoractionsmaybebroughtand prosecuted against the Guarantors to enforce this Agreement, irrespective of whether any action is brought against the Borrower or any other Loan Party or whether the Borrower or such Loan Party is joined in any such action or actions.The obligations of each Guarantor under this Agreement and the rights of the Collateral Agent and the Liens and security interests hereunder shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby irrevocablywaives anydefenses it maynow haveorhereafteracquire in anywayrelatingto, any or all of the following:
(i)anyillegalityorlackofvalidityorenforceabilityoftheGuaranteed Obligations, any Credit Document or any agreement or instrument relating thereto;
(ii)any failure or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy (whether arising under the Credit Documents,atlaw,inequityorotherwise)withrespecttotheGuaranteed Obligationsoranyagreementrelatingthereto,orwithrespecttoanyotherguaranty of or security for the payment of the Guaranteed Obligations;
(iii)any change in the time, manner or place of payment of, or in any other term of, all or anyof the Guaranteed Obligations, or anyrescission, waiver, amendment ormodification of, oranyconsent todeparturefrom,anyoftheterms orprovisions(includingprovisionsrelatingtoeventsofdefault)hereof,anyofthe other Credit Documents or any agreement or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, in each case whether or not in accordance with the terms hereof or such Credit Documents, or any agreement relating to such other guaranty or security, includinganyincreaseintheGuaranteedObligationsresultingfromtheextension of additional credit to the Borrower;
(iv)any taking, exchange, release or non-perfection of any Collateral, or any taking, release or amendment or waiver of, or consent to departure from, any guaranty, for all or any of the Guaranteed Obligations;
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(v)anymanner of application ofCollateral, orProceedsthereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any Collateral for all or any of the Guaranteed Obligations or anyother assets of any Loan Party;
(vi)the application of payments received from any source (other than payments received pursuant to the other Credit Documents or from the proceeds of any securityfor the Guaranteed Obligations, except to the extent such security also serves as collateral for indebtedness other than the Guaranteed Obligations) to the payment of indebtedness other than the Guaranteed Obligations, even thoughanySecuredPartymighthaveelectedtoapplysuchpaymenttoanypartor all of the Guaranteed Obligations;
(vii)anychange, restructuring or termination of the corporate structure or existence of any Loan Party and any Secured Parties’ consent thereto and to any corresponding restructuring of the Guaranteed Obligations;
(viii)the failure of any other Person to execute or deliver any other guaranty or agreement or the release or reduction of liability of any other guarantor or surety with respect to the Guaranteed Obligations;
(ix)any limitation on any party’s liability or obligations under any Credit Document or anyinvalidityorunenforceability, in whole or inpart, of any such Credit Documents;
(x)any bankruptcy, insolvency, reorganization, composition, adjustment,dissolution,liquidationorotherlikeproceedingrelatingtoanyLoan Party,oranyactiontakenwithrespecttothisAgreementbyanytrusteeor receiver, or by any court, in any such proceeding;
(xi)anydefenses, set offs or counterclaims which anyLoan Partymay allege or assert against any Secured Party in respect of the Guaranteed Obligations, including failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury; or
(xii)any other circumstance (including any statute of limitations but excluding payment in full of the Guaranteed Obligations) that might otherwise constitute a legal or equitable defense available to, or discharge of, a surety or a guarantor.
(b)Infurtheranceoftheforegoingandwithoutlimitingthegeneralitythereof, each Guarantor agrees as follows:
(i)Such Guarantor’s guarantyunder Section6.01(the “Guaranty”) is a primaryobligation of such Guarantor and not merelya contract of surety;
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(ii)CollateralAgentmayenforcethisGuarantyupontheoccurrenceof an Event of Default that is continuing;
(iii)The obligations of each Guarantor hereunder are independent of theobligationsofanyLoanPartyandtheobligationsofanyotherguarantorofthe obligations of any Loan Party, and a separate action or actions may be brought and prosecuted against the Guarantors whether or not any action is brought against any other Loan Party or any of such other guarantors and whether or not another Loan Party is joined in any such action or actions;
(iv)Payment by a Grantor of a portion, but not all, of the Guaranteed Obligationsshallinnowaylimit,affect,modifyorabridgetheGuarantors’ liability for any portion of the Guaranteed Obligations which has not been paid. Without limiting the generalityof the foregoing, if Collateral Agent is awarded a judgment in any suit brought to enforce a Grantor’s covenant to pay a portion of the Guaranteed Obligations, such judgment shall not be deemed to release anyGrantorfromitscovenanttopaytheportionoftheGuaranteedObligationsthatis not the subject of such suit; and
(v)Any Secured Party, upon such terms as it deems appropriate, without notice or demand and without affecting the validity or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time to time may (A) renew,extend,accelerate,increasetherateofintereston,orotherwisechangethe time, place, manner or terms of payment of the Guaranteed Obligations; (B) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or anyagreement relating thereto and/or subordinate the payment of the same tothe payment of any other obligations; (C) request and accept other guaranties of the Guaranteed Obligations and take and hold security for the payment hereof or the Guaranteed Obligations; (D) release, surrender, exchange, substitute,compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation of any Person with respect to the Guaranteed Obligations; (E) enforce and apply any security now or hereafter held byor for thebenefit of such Secured Partyin respect hereof or the Guaranteed Obligations and direct the order or manner of sale thereof, or exercise any other right or remedy that such Secured Party may have against any such security, in each case as such Secured Party in its discretion may determine consistent herewith and any applicable security agreement, including foreclosure onanysuchsecuritypursuanttooneormorejudicialornonjudicialsales,whether or not everyaspect of anysuch sale is commerciallyreasonable, and even though such action operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy of the Guarantors against any other Loan Party or any
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security for the Guaranteed Obligations; and (F) exercise any other rights available to it under the Credit Documents.
(c)NotwithstandingtheforegoingprovisionsofthisSection6.02or Section 6.03, the Guarantors shall be entitled to assert all rights, defenses and counterclaims (other than relating to bankruptcy or insolvency in respect of the Borrower and any rights, defenses or counterclaims based upon lack of authority, capacity, legal right or power of the Borrower to perform its obligations under the Credit Documents or based upon any Credit Documentbeingunenforceable)towhichtheBorrowerisentitledundertheCreditDocumentsin connection with the Borrower’s performance of their obligations thereunder.
Section 6.03 WaiversandAcknowledgments.
(a)The Guarantors’ guaranty under Section6.01is a guarantee of payment and not of collection.Each Guarantor hereby unconditionally and irrevocably waives, to the maximum extent permitted by Applicable Law, promptness, diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protestor dishonor and any other notice with respect to any of the Guaranteed Obligations and this AgreementandanyrequirementthatanySecuredPartyprotect,secure,perfectorinsureanyLien or any property subject thereto or exhaust any right or take any action against the Borrower or any other Person or any Collateral.
(b)EachGuarantorherebyacknowledgesthatthisAgreementiscontinuingin natureandappliestoallGuaranteedObligations,whetherexistingnoworinthefuture,andshall remain in full force and effect until such time as the Guaranteed Obligations have been paid in full.
(c)Each Guarantor hereby unconditionally and irrevocably waives, for the benefitoftheSecuredParties,tothemaximumextentpermittedbyApplicableLaw,(i)anyright to require anySecuredParty, as a condition ofpayment orperformancebythe Guarantor, to (A) proceed against the Borrower, any other guarantor of the Guaranteed Obligations or any other Person, (B) proceed against or exhaust any security held from the Borrower, any such other guarantor or any other Person, (C) proceed against or have resort to any balance of any deposit accountorcreditonthebooksofanySecuredPartyinfavoroftheBorroweroranyotherPerson, or (D) pursue any other remedy in the power of any Secured Party whatsoever; (ii) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of the Borrowerincludinganydefensebasedonorarisingoutofthelackofvalidityorunenforceability oftheGuaranteedObligationsoranyagreementorinstrumentrelatingtheretoorbyreasonofthe cessation of the liability of the Borrower from any cause other than payment in full of the Guaranteed Obligations; (iii) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (iv) anydefense based upon anySecured Party’s errors or omissions in the administration of the Guaranteed Obligations, except behavior which amounts tofraudorwillfulmisconduct;(v)(A)anyprinciplesorprovisionsoflaw,statutoryorotherwise, which are or might be in conflict with the terms hereof and any legal or equitable discharge of such Guarantor’s obligations hereunder, (B) the benefit of any statute of limitations affecting
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such Guarantor’s liability hereunder or the enforcement hereof, and (C) promptness, diligence andanyrequirementthatanySecuredPartyprotect,secure,perfectorinsureanysecurityinterest or Lien or any propertysubject thereto; (vi) notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance hereof, notices of default hereunder or any agreement or instrument related thereto, notices of any renewal, extension or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to the Borrower and notices of any of the matters referred to in Section 6.02and any right to consent to any thereof; (vii) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof; (viii) any defense arising by reason of any claim or defense based upon an election of remedies by any Secured Party that in any mannerimpairs,reduces,releasesorotherwiseadverselyaffectsthesubrogation,reimbursement, exoneration, contribution or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against the Borrower, any other guarantor or any other Person or any Collateral and (ix) anydefense based on anyright of set-off or counterclaim against or in respect of the obligations of any Grantor hereunder.
(d)Each such Guarantor acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by the Credit Documents and that the waivers set forth in Section6.02and this Section6.03are knowingly made in contemplation of such benefits.
Section6.04 Subrogation. Each Guarantor hereby unconditionally and irrevocablyagreesnottoexerciseanyrightsthatitmaynowhaveorhereafteracquireagainstanyLoanParty that arise from the existence, payment, performance or enforcement of such Guarantor’s obligations under or in respect of this Agreement, including any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of any Secured Party against any Loan Party or any Collateral, whether or not such claim, remedyor right arises in equityor under contract, statute or common law, including therighttotakeorreceivefromanyLoanPartydirectlyorindirectly,incashorotherpropertyor byset-offorinanyothermanner,paymentorsecurityonaccountofsuchclaim,remedyorright, priortotheDischargeDate.Notwithstandingtheforegoingsentence,ifanyamountshallbepaid to a Guarantor in violation of the immediately preceding sentence at any time prior to the Discharge Date, such amount shall be received and held in trust for the benefit of the Secured Parties, shall be segregated from other propertyand funds of such Guarantor and shall promptly (and, in anyevent, within two (2) Business Days) be paid or delivered to the Collateral Agent in the same form as so received (with anynecessaryendorsement or assignment) to becredited and applied to the Guaranteed Obligations and all other amounts payable under this Agreement, whether matured or unmatured, in accordance with the terms of the Credit Documents, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Agreement thereafter arising.On the Discharge Date, the Collateral Agent will, at any Guarantor’s request and at the Borrower’s expense, execute and deliver to such Person appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment made bysuch Guarantor pursuant to this Agreement.
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Section6.05 General Limitation on Guarantee Obligations. In anyaction orproceeding involving any state or provincial corporate law, or any foreign, state, provincial or federal bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if theobligationsofanyGuarantorunderSection6.01wouldotherwisebeheldordeterminedtobe void,invalidorunenforceable,orsubordinatedtotheclaimsofanyothercreditors,onaccountof theamountofitsliabilityunderSection6.01,then,notwithstandinganyotherprovisionhereofto thecontrary,theamountofsuchliabilityshall,withoutanyfurtheractionbysuchGuarantor,any Secured Party or any other Person, be automatically limited and reduced to the highest amount that is valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding.
ARTICLE VII
MISCELLANEOUSPROVISIONS
Section7.01 Communication. Except as otherwise specified herein, all noticeshereundershallbeinwriting(including,withoutlimitation,noticebyelectroniccommunication) and shall be given to the relevant party at its address set forth below, or such other address as such party may hereafter specify by notice to the other party, by courier, by United States certified or registered mail, or by other electronic communication capable of creating a written record of such notice and its receipt.Notices under this Agreement to the Grantors or the Collateral Agent shall be addressed to their respective addresses set forth below:
(A)iftoDevcoBorrower,at:
MN8 DevCo 3 LLC
1155 Avenue of the Americas
27thFloor,NewYork,NY10036
Attention: General Counsel
Email:notices@mn8energy.com
with copy to:
MN8EnergyLLC
1155 Avenue of the Americas
27thFloor,NewYork,NY10036
Attention: General Counsel
Email:notices@mn8energy.com
(B)iftoOpcoBorrower,at:
MN8 Bleeker LLC
1155 Avenue of the Americas
27thFloor,NewYork,NY10036
Attention: General Counsel
Email:notices@mn8energy.com
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with copy to:
MN8EnergyLLC
1155 Avenue of the Americas
27thFloor,NewYork,NY10036
Attention: General Counsel
Email:notices@mn8energy.com
(C)iftotheProjectCompanies,at:
AmericanBeechSolarLLC,BluebirdSolarLLCorPrairieSolar1,
LLC
1155 Avenue of the Americas
27thFloor,NewYork,NY10036
Attention: General Counsel
Email:notices@mn8energy.com
with copy to:
MN8EnergyLLC
1155 Avenue of the Americas
27thFloor,NewYork,NY10036
Attention: General Counsel
Email:notices@mn8energy.com
(D)iftotheCollateralAgent,at:
Natixis, New York Branch,
asCollateralAgent
1251AvenueofTheAmericas,
5thFloor New York, NY 10020
Attention:DanielFahey
Email:adminagency@natixis.com;daniel.fahey.com
Each such notice, request or other communication shall be effective (i)if givenbymail, five(5) daysaftersuchcommunicationisdepositedinthemail,certifiedorregisteredwithreturnreceipt requested, addressed as aforesaid, or (ii)if given by any other means, when delivered at the addresses specified in this Section 7.01.
Section 7.02 Amendments. No amendment of anyprovision of this Agreement shall be effective unless the same shall be in writing and signed by the Collateral Agent (at the written directionoftheAdministrativeAgent)andeachGrantor,andsuchconsentshallbeeffectiveonly in the specific instance and for the specific purpose for which given. The Collateral Agent shall not be obligated to enter into any amendment that affects its rights, duties or obligations under this Agreement.
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Section7.03 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided, however,thateach Grantormaynot assign ortransfer anyof its rights orinterest in or under this Agreement or delegate any of its obligations under this Agreement without the prior written consent of the Collateral Agent (at the written direction of the Administrative Agent); provided, further, that the Collateral Agent shall transfer or assign its rights under this Agreement in connection with a resignation or removal of such Person from its respective capacity in accordance with the terms of the Credit Agreement.
Section7.04 Survival.Allagreements,statements,representationsandwarrantiesmade by each Grantor herein or in any certificate or other instrument delivered by such Grantor or on its behalf under this Agreement shall be considered to have been relied upon by the Collateral Agent and shall survive the execution and delivery of this Agreement and the other Credit Documents until termination thereof regardless of anyinvestigation made byor on behalfofthe Collateral Agent.
Section7.05 No Waiver; Remedies Cumulative. No failure or delay on the part of the Collateral Agent or any Secured Party to exercise and no delay in exercising, and no course of dealing with respecttoanyright,remedy,powerorprivilegehereundershalloperateas awaiver of such right, remedy, power or privilege nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exerciseofanyotherright,remedy,powerorprivilege.Therightsandremedieshereinexpressly provided are cumulative and not exclusive of anyrights or remedies which the Collateral Agent would otherwise have.
Section7.06 Counterparts. This Agreement may be executed in any number of counterparts, and by the different parties hereto on separate counterpart signature pages, and all such counterparts taken together shall be deemed to constitute one and the same instrument.A facsimileorportabledocumentformat(“pdf”)signaturepageshallconstituteanoriginalfor purposes hereof. The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby (including without limitation the Credit Documents, certificates, notices, consents, borrowing request and other documents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system,as thecasemaybe, to theextentandasprovidedforinanyapplicablelaw,includingthe Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
Section7.07 Captions. The headings of the several articles and sections and subsections of this Agreement are inserted for convenience onlyand shall not in anywayaffect the meaning or construction of any provision of this Agreement.
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Section7.08 Severability. Any provision of this Agreement which is unenforceable in anyjurisdictionshall,astosuchjurisdiction,beineffectivetotheextentofsuchunenforceability withoutinvalidatingtheremainingprovisionshereoforaffectingthevalidityorenforceabilityof such provision in any other jurisdiction.All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of law, and all the provisions ofthis Agreement areintended to besubject to all applicable provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement invalid or unenforceable.
Section 7.09 GoverningLaw;WaiverofJuryTrial;JurisdictionandProcess.
(a)THIS AGREEMENT, AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE CONSTRUED AND GOVERNED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.
(b)EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
(c)EACH PARTY HERETO HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK, FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDINGBROUGHTINSUCHACOURTANDANYCLAIMTHATANYSUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.EACH GRANTOR AGREES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THAT A FINAL JUDGMENT IN ANY SUIT, ACTION OR PROCEEDING OF THE NATURE REFERRED TO IN THIS SECTION7.09BROUGHT IN ANY SUCH COURT SHALL BE CONCLUSIVE AND BINDING UPON IT SUBJECT TO RIGHTS OF APPEAL, AS THE CASE MAY BE, ANDMAY BE ENFORCED IN THE COURTS OF THE UNITED STATES OF AMERICA OR THE STATE OF NEW YORK (OR ANY OTHER COURTS TO THE JURISDICTION OF WHICH IT OR ANY OF ITS ASSETS IS OR MAY BE SUBJECT) BY A SUIT UPON SUCH JUDGEMENT.
(d)NO CLAIM MAY BE MADE BY ANY BORROWER, ANY OTHER GRANTOR OR ANY OF THEIR RESPECTIVE AFFILIATES, DIRECTORS, EMPLOYEES, ATTORNEYS OR AGENTS AGAINST THE COLLATERAL AGENT OR ANY OF ITS SUCCESSORS IN INTEREST OR ASSIGNS OR THEIR RESPECTIVE AFFILIATES, DIRECTORS, OFFICERS,EMPLOYEES,ATTORNEYSORAGENTSFORANYSPECIAL, INDIRECT, CONSEQUENTIALOR PUNITIVE DAMAGES IN RESPECT OF ANY CLAIM FORBREACHOFCONTRACTORANYOTHERTHEORYOFLIABILITYARISINGOUT
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GUARANTY, PLEDGE & SECURITY AGREEMENT
(MN8 BRIDGE CONSTRUCTION FINANCING)
OF OR RELATING TO, OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION WITH THISAGREEMENTORANYOTHERSECURITYDOCUMENTOR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE OTHER SECURITY DOCUMENTS, AND EACH GRANTOR HEREBY WAIVES, RELEASES AND AGREES NOT TOSUE UPON ANYCLAIM FOR ANYSUCH DAMAGES,WHETHEROR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.
Section7.10 Entire Agreement. This Agreement, together with any other agreement executed in connection with this Agreement, is intended by the parties as a final expression of their agreement as to the matters covered by this Agreement and is intended as a complete and exclusive statement of the terms and conditions of such agreement.
Section7.11 IndependentObligations.EachGrantor’sobligationsunderthis Agreement are independent of those of any other Person. The Collateral Agent may bring a separate action against a Grantor without first proceeding against any other Person or anyother security held by the Collateral Agent and without pursuing anyother remedy.
Section7.12 Expenses. Each Grantor, on a joint and several basis, agrees to pay or to reimburse the Collateral Agent for all reasonabledocumented,out-of-pocket costs and expenses (including reasonable and documented out-of-pocket attorney’s fees and expenses) that may be incurred by the Collateral Agent in any effort to enforce any of the provisions of Article V, or any of the obligations of such Grantor in respect of the Collateral or in connection withthe preservation of the Liens on, or the rights of the Collateral Agent to the Collateral pursuant to this Agreement or the other Security Documents orany actual or attempted sale, lease, disposition, exchange, collection, compromise, settlement or other realization in respect of, or care of,theCollateral,including allsuch costs and expenses (and reasonable attorney’s fees and expenses) incurred in anybankruptcy, reorganization, workout or other similar proceeding. The CollateralAgentshallprovidereasonablesupportforanycosts,expenses,and/orchargesatsuch Grantor’s reasonable request.
Section 7.13 Collateral Agent. The Collateral Agent’s sole duty with respect to the custody,safekeepingandphysicalpreservationoftheCollateralinitspossession,undertheUCC or otherwise, shall be to deal with it in substantially the same manner as the Collateral Agent dealswithsimilarpropertyforothercustomersinsimilartransactions.TheCollateralAgentshall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither it nor any of its officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. Except for reasonable care and preservation of any Collateral in its possession and the accounting for moneys actually received by it hereunder as described above, the Collateral Agent shall have no duty as to the collection or protection of the Collateral or any income thereon,norastothepreservationofrightsagainstpriorparties,norastothepreservationofany rights pertaining thereto beyond the safe custody thereof. The Collateral Agent is entering into this Agreement solely in its capacity as Collateral Agent under the Credit Agreement and shall
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GUARANTY, PLEDGE & SECURITY AGREEMENT
(MN8 BRIDGE CONSTRUCTION FINANCING)
be entitled to all of the rights, benefits, protections, indemnities and immunities afforded to it pursuant to the Credit Documents (including without limitation Section 11 of the Credit Agreement),allofwhichareincorporatedhereinbyreference,mutatismutandis.Itisunderstood that any reference to the Collateral Agent taking any action, making any determinations, requests, directions, consents or elections, deeming any action or document reasonable, appropriate, necessary, appropriate or satisfactory, exercisingdiscretion, or exercising anyrights or duties under this Agreement shall be pursuant to written direction from the Administrative Agent.
Section7.14 Reinstatement. This Agreement and the obligations of the Grantors hereunder shall automatically be reinstated if and to the extent that for any reason any payment made pursuant to any Credit Document is rescinded or must otherwise be restored or returned, whether as a result of anyproceedings inbankruptcyor reorganization orotherwisewithrespect to such Grantor or any other Person or as a result of any settlement or compromise with any Person in respect of such payment, and the Grantors shall be jointly and severally obligated to paytheCollateralAgentpromptlyondemandforallreasonableandreasonablydocumentedcosts and expenses (including reasonable and reasonably documented fees of counsel) incurred bythe Collateral Agent in connection with such rescission or restoration.
[SIGNATURESTOFOLLOW]
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GUARANTY, PLEDGE & SECURITY AGREEMENT
(MN8 BRIDGE CONSTRUCTION FINANCING)
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective authorized officers as of the date first written above.
| GRANTORS: | |||||||||||
| MN8 DEVCO 3 LLC, | |||||||||||
| a Delaware limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| MN8 BLEEKER LLC, | |||||||||||
| a Delaware limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| AMERICAN BEECH SOLAR LLC, | |||||||||||
| a North Carolina limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| BLUEBIRD SOLAR LLC, | |||||||||||
| a Kentucky limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: |
[Signature Page to Guaranty, Pledge and Security Agreement (MN8 Bridge Construction Financing)]
| BLUEBIRD SOLAR INVESTMENTS LLC, | |||||||||||
| a Kentucky limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: |
| PRAIRIE SOLAR 1, LLC, | |||||||||||
| a Delaware limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| PRAIRIE SOLAR HOLDINGS LLC, | |||||||||||
| a Delaware limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| MN8 FMG CLASS B LLC, | |||||||||||
| a Delaware limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: | |||||||||||
| MN8 FMG LLC, | |||||||||||
| a Delaware limited liability company | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title: |
[Signature Page to Guaranty, Pledge and Security Agreement (MN8 Bridge Construction Financing)]
| COLLATERAL AGENT: | |||||||||||
| NATIXIS, NEW YORK BRANCH, | |||||||||||
| as Collateral Agent for the Secured Parties | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title | |||||||||||
| By: | |||||||||||
| Name: | |||||||||||
| Title |
[Signature Page to Guaranty, Pledge and Security Agreement (MN8 Bridge Construction Financing)]
GUARANTY, PLEDGE & SECURITY AGREEMENT
(MN8 BRIDGE CONSTRUCTION FINANCING)