Document:

exhibit_10-2.htm

 

 

Exhibit 10.2

 

CONFIDENTIAL TREATMENT

REQUESTED PURSUANT TO RULE 24b-2

 

Certain portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 under the Securities Exchange Act of 1934. The omitted materials have been filed separately with the Securities and Exchange Commission.

 

 

MASTER ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This MASTER ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”) is made as of October 12, 2010 (the “Effective Date”), by and among AKEENA SOLAR, INC., a Delaware corporation (“Akeena”), REAL GOODS ENERGY TECH, INC., a Colorado corporation (“Real Goods”) and SUNRUN INC., (“SunRun”) (each of Akeena, Real Goods and SunRun a “Party” and collectively the “Parties”).

 

 

W I T N E S S E T H:

 

WHEREAS, Akeena and SunRun have entered into that certain Amended and Restated Master Solar Facility Turnkey Contract dated October 29, 2009 (the “Akeena EPC”) for the design, engineering, procurement, installation and construction of Solar Facilities (as defined in the Akeena EPC);

 

WHEREAS, Real Goods and SunRun have entered into that certain Amended and Restated Master Solar Facility Turnkey Contract dated February 9, 2009 (the “Real Goods EPC”) for the design, engineering, procurement, installation and construction of solar facilities;

 

WHEREAS, pursuant to the Akeena EPC, Akeena has ongoing obligations with respect to certain Solar Facilities (“Akeena Obligations”) for the benefit of SunRun;

 

WHEREAS, Akeena is exiting the business of installing Solar Facilities and desires to avoid or reduce certain of its installation and installation-related responsibilities under the Akeena EPC;

 

WHEREAS, Real Goods is in the business of installing solar facilities and desires to assume certain installation and installation-related responsibilities of Akeena under the Akeena EPC; and

 

WHEREAS, the Parties have entered into that certain Memorandum of Agreement dated September 14, 2010, pursuant to which the Parties agreed to enter into this Agreement;

 

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

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

  

  

 

 

1. Solar Facilities.  Pursuant to the Akeena EPC, Akeena has built or agreed to build certain Solar Facilities for the benefit of SunRun.  Akeena has achieved Final Completion (as defined in the Akeena EPC) for the Solar Facilities described in Exhibit A attached hereto (“Completed Solar Facilities”) pursuant to the Akeena EPC.  Akeena has started or intends to start construction of but has not yet achieved Final Completion for the Solar Facilities described in Exhibit B attached hereto (“Construction Solar Facilities”) pursuant to the Akeena EPC.  Akeena has executed Addendums (as defined in the Akeena EPC) but has not yet started and does not intend to start construction of the Solar Facilities described in Exhibit C attached hereto (“Pending Solar Facilities”).

 

2. Project Construction.

 

(a) Construction Solar Facilities.  The Parties hereby agree that Akeena shall complete the installation of and achieve Final Completion for the Construction Solar Facilities in accordance with the Akeena EPC.  In no event shall Real Goods perform any work other than Ordinary-Course-of-Business Warranty Claim work with respect to the Construction Solar Facilities without the prior consent of SunRun, which may be provided in writing or via email.

 

(b) Pending Solar Facilities.

 

(i) Each Addendum (as defined in the Akeena EPC) with respect to a Pending Solar Facility is attached hereto as Exhibit E (the “Pending Solar Facility Addendums”).  Akeena hereby irrevocably grants, conveys, transfers, assigns, and delivers unto Real Goods all of Akeena’s right, title and interest in the Pending Solar Facility Addendums.  Real Goods hereby irrevocably accepts and assumes the Pending Solar Facility Addendums and from the date hereof agrees to perform the work described in the Pending Solar Facility Addendums according to the standard terms and conditions set forth in the Real Goods EPC and Addendums (as defined in the Real Goods EPC) to the Real Goods EPC.  SunRun hereby consents to the foregoing assignment and assumption.  From and after the date hereof, Real Goods and SunRun shall treat the Pending Solar Facility Addendums as Addendums under and pursuant to the Real Goods EPC.

 

(ii) The Parties hereby agree that Real Goods shall, pursuant to the Real Goods EPC, commence the installation of and achieve Final Completion (as defined in the Real Goods EPC) for the Pending Solar Facilities.

 

(iii) Real Goods hereby agrees to use commercially reasonable efforts to achieve Final Completion (as defined in the Real Goods EPC) of ninety (90%) of the Pending Solar Facility Addendums on or before December 31, 2010.

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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(iv) To the extent commercially reasonable and consistent with this Agreement, Real Goods shall use Westinghouse solar modules in its construction of the Pending Solar Facilities.

 

3. Warranty.

 

(a) Completed Solar Facilities and Construction Solar Facilities.  Pursuant to Section 11 of the Akeena EPC, Akeena has certain warranty obligations to SunRun for the Completed Solar Facilities and for the Construction Solar Facilities.  With respect to each and all of the Completed Solar Facilities and the Construction Solar Facilities once Final Completion has been achieved, Akeena hereby assigns and Real Goods hereby assumes the warranty obligations to SunRun for Ordinary-Course-of-Business Warranty Claims as set forth on Exhibit D, and SunRun hereby consents to the foregoing assignment and assumption.  Akeena agrees to reimburse Real Goods for all such Ordinary-Course-of Business Warranty Claim work performed on Akeena’s behalf.  “Ordinary-Course-of-Business Warranty Claims” shall mean any warranty claim against an express warranty made pursuant to Exhibit D made by SunRun, its successors or assigns, requiring time and materials repairs of less than $[***] per job.

 

(i) For the avoidance of doubt, Real Goods’ warranty obligation to SunRun for Ordinary-Course-of-Business Warranty Claims with respect to the Completed Solar Facilities and Construction Solar Facilities shall be expressly set forth on Exhibit D.  Real Goods will not have any warranty obligations other than set forth herein.

 

(ii) The Parties hereby acknowledge and agree that in the event that Real Goods fails to perform under an Ordinary-Course-of-Business Warranty Claim for any Completed Solar Facility or Construction Solar Facility, Akeena shall have the right and the obligation to perform or cause to be performed such Ordinary-Course-of-Business Warranty Claim according to the terms of Section 11 of the Akeena EPC, and Akeena will remain liable for such Ordinary-Course-of-Business Warranty Claim until it is completed in accordance with the terms of Section 11 of the Akeena EPC.  If Akeena fails to perform the Ordinary-Course-of-Business Warranty Claim within fifteen (15) days of written notice from SunRun, SunRun at its option, and after notice to Akeena, shall have the right to perform the necessary Work (as defined in the Akeena EPC) and charge the reasonable cost thereof to Akeena.

 

(iii) Notwithstanding anything in this Agreement to the contrary, Akeena hereby acknowledges and agrees that subject to and as defined by the terms and conditions of the Akeena EPC and Addendums, Akeena shall remain liable for and Real Goods shall have no liability for (A) any warranty claim arising from a Completed Solar Facility or a Construction Solar Facility that is not an Ordinary-Course-of-Business Warranty Claim and (B)  any damage to persons or property caused by any Completed Solar Facility or Construction Solar Facility except to the extent caused by or directly related to work performed by SunRun or Real Goods.  SunRun hereby acknowledges and agrees that it shall not look to Real Goods with respect to any claim described above.

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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(b) Pending Solar Facilities.  The Parties hereby agree that Real Goods will have and provide to SunRun the warranty obligations for the Pending Solar Facilities for which Real Goods completes the installation pursuant to the Real Goods EPC.  SunRun and Real Goods hereby release and agree to indemnify and hold harmless Akeena (i) from any and all warranty obligations under the Akeena EPC with respect to the Pending Solar Facilities for which Real Goods completes the installation, (ii) from any claims for personal injury or property damage arising from Real Goods construction of any Pending Solar Facility, except to the extent such claims arise from the sole negligence of Akeena (including without limitation negligence related to the design of any Pending Solar Facility by Akeena), and (iii) from any claims arising from Real Goods’ construction of Pending Solar Facilities which construction does not conform to the terms of the applicable Pending Solar Facility Addendum.

 

4. Solar Facility Pricing.

 

(a) The Parties hereby agree that nothing contained in this Agreement shall change the Contract Price (as defined in the Akeena EPC) to SunRun for the Completed Solar Facilities, Construction Solar Facilities or the Pending Solar Facilities, except to the extent or according to any term or condition of the applicable EPC or Addendum for which (i) the Contract Price for the Construction Solar Facilities shall be subject to adjustment pursuant to Sections 5.1 through 5.4 of the Akeena EPC, or (ii) the Contract Price for the Pending Solar Facilities shall be subject to adjustment pursuant to Sections 5.1 through 5.4 of the Real Goods EPC.

 

(b) SunRun shall pay the Contract Price for the Construction Solar Facilities as set forth on each applicable Addendum (as defined in the Akeena EPC) to Akeena pursuant to the Akeena EPC.  SunRun shall pay the Contract Price for the Pending Solar Facilities as set forth on the Pending Solar Facility Addendums to Real Goods pursuant to the Real Goods EPC.

 

(c) To the extent not expressly set forth on the Pending Solar Facility Addendums, Akeena shall promptly (but in no event more than 14 days after the Effective Date) provide to SunRun and Real Goods any and all information and documentation with respect to any pricing discounts Akeena has promised to Host Customers (as defined in the Akeena EPC).  Real Goods hereby acknowledges and agrees to honor such pricing discounts for the Pending Solar Facilities, to the extent notice of such discounts is timely provided by Akeena.

 

(d) Akeena and SunRun hereby acknowledge and agree that the Contract Price for certain of the Solar Facilities (as defined in the Akeena EPC) was calculated based on an incorrect California Solar Initiative (“CSI”) rebate level, and Akeena hereby agrees to refund to SunRun the lump sum amount of $[***], subject to reasonable adjustment due to Host Customer cancellation, as the total difference in the applicable Contract Prices as re-calculated based on the correct CSI rebate level.

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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5. OEM Warranties.  Within fourteen (14) days of the Effective Date, Akeena will deliver to both of Real Goods and SunRun detailed warranty information on all equipment utilized or to be utilized in the Completed Solar Facilities and the Construction Solar Facilities, including without limitation OEM warranties for any components or sub-components used therein as set forth on Schedule 5 (“Warranty Information”).  In the event that Akeena fails to deliver the Warranty Information as required by the preceding sentence, SunRun may offset or withhold any amounts due from SunRun to Akeena under the Akeena EPC or any other agreements between SunRun and Akeena up to the Collateral Amount (as defined below) until such time as such Warranty Information is delivered as required.

 

6. Customer Transition.

 

(a) Customer Communication.  The Parties hereby agree and acknowledge that (i) SunRun shall deliver the initial notification to the Host Customers (as defined in the Akeena EPC) of the Pending Solar Facilities of the effect of this Agreement and the fact that Real Goods will construct such Pending Solar Facilities instead of Akeena, and (ii) after such initial notification Real Goods shall be responsible for contacting such Host Customers regarding Real Goods’ construction of such Pending Solar Facility.

 

(b) Akeena Leads.

 

(i) As of the Effective Date, Akeena will provide or will have provided to SunRun and Real Goods a list of (i) all persons Akeena previously contacted who have expressed interest in a Residential Solar Customer Agreement (as defined in the Akeena EPC) (each such person, an “Akeena Lead” and such list, the “Akeena Leads List”), and (ii) details of any discounts, special offers, promotions, or similar incentives to enter into a Residential Solar Customer Agreement offered by Akeena to each such Akeena Lead, if any.  Notwithstanding anything to the contrary in this Agreement Akeena shall not disclose an Akeena Lead or any or all of the Akeena Leads List to a person other than SunRun and Real Goods.

 

(ii) For each Akeena Lead:

 

(1) SunRun and Real Goods shall cooperate and make commercially reasonable efforts to obtain a practicable order for a Residential Solar Customer Agreement (as defined in the Real Goods EPC) (each, an “Order”) on such forms provided to Real Goods by SunRun and in accordance with the procedures that SunRun and Real Goods may jointly establish from time to time;

 

(2) To the extent an Akeena Lead has been presented with SunRun materials by Akeena, any sale or Order that Real Goods closes with such an Akeena Lead shall be for a SunRun Residential Solar Customer Agreement (as defined in the Real Goods EPC);

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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(3) Real Goods shall honor any discounts, special offers, promotions, or similar incentives offered to such Akeena Leads by Akeena and promptly disclosed pursuant to the terms hereof; and

 

(4) For each Order submitted by Real Goods on behalf of an Akeena Lead that is accepted by SunRun, the provisions of the Real Goods EPC shall apply, provided, however, that to the extent commercially reasonable, Real Goods shall use Westinghouse solar modules for each such Order.

 

7. Security or Escrow Arrangement.

 

(a) Security or Escrow.  Real Goods and Akeena hereby covenant and agree to enter into a separate agreement (“Security Agreement”) whereby Akeena will provide to Real Goods either i) a bond, letter of credit, insurance policy or similar guarantee (“Security”)on terms reasonably acceptable to Real Goods or ii) a cash escrow arrangement that is reasonably acceptable to Real Goods; in either case, representing [***] of collateral (the “Collateral Amount”), for the performance of Akeena’s obligations to compensate Real Goods for Ordinary-Course-of Business Warranty Claims under Section 3(a) of this Agreement.  The terms of such Security and the Security Agreement are to be promptly provided in writing to SunRun after agreement is reached.  In the event that Real Goods and Akeena fail to enter into the Security Agreement by [***] (the “Collateral Deadline”), Akeena shall promptly deposit the Collateral Amount into an escrow account (in which Real Goods will have a perfected priority security interest) to be held for the purposes of satisfying Akeena’s collateral obligation to Real Goods hereunder and under that certain Supply and Warranty Agreement by and between Akeena and Real Goods dated as of the date hereof (the “Escrow Deposit”).

 

(b) Offset.  The Parties agree that if Real Goods and Akeena have not entered into the Security Agreement, or Akeena fails to make the Escrow Deposit within five (5) days following the Collateral Deadline (excepting weekend and bank holiday days), SunRun may withhold any amounts due (“Withheld Amounts”) from SunRun to Akeena under the Akeena EPC or any other agreements between SunRun and Akeena up to the Collateral Amount.  SunRun shall deposit the Withheld Amounts in a separate account for purposes of satisfying the Escrow Deposit and the Withheld Amounts shall be treated as the Escrow Deposit for purposes of distribution and reduction (if applicable) by SunRun in a manner consistent with the terms of this Agreement.

 

(c) Terms; Reduction.

 

(i) The terms of the Security Agreement or Escrow Deposit, as applicable, will provide that Real Goods shall be allowed to immediately draw upon the bond, letter of credit, insurance policy or guarantee or Escrow Deposit, as applicable, in the event that Akeena fails to reimburse Real Goods for any service on a Ordinary-Course-of-Business Warranty Claim within 30 days of delivery by Real Goods of an invoice therefore.

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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(ii) If following the one year anniversary of the date hereof, Real Goods has not previously drawn against the Security Agreement or Escrow Deposit as applicable, the amount of security will be reduced by $[***] each year over a nine-year period.

 

(iii) The obligations of Real Goods to provide service for Ordinary-Course-of-Business Warranty Claims shall be conditioned upon and shall not become effective unless and until either the execution of the Security Agreement or the establishment of the Escrow Deposit with $[***] in cash in such escrow.

 

8. Representations and Warranties of Akeena.  Akeena hereby represents and warrants to Real Goods and SunRun as follows:

 

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

 

(b) The rights and duties assigned by Akeena pursuant to this Agreement are not subject to any prior sale, transfer, assignment, lien or participation by Akeena or any agreement to assign, lien, convey, transfer or participate, in whole or in part.

 

9. Representations and Warranties of Real Goods.  Real Goods hereby represents and warrants to Akeena and SunRun that Real Goods: (i) is duly organized and validly existing under the laws of the State of Colorado, (ii) is in good standing under such laws and (iii) has full power, ability and authority to execute, deliver and perform its obligations under this Agreement.

 

10. Representations and Warranties of SunRun.  SunRun hereby represents and warrants to Akeena and Real Goods that SunRun: (i) is duly organized and validly existing under the laws of the State of Delaware, (ii) is in good standing under such laws and (iii) has full power, ability and authority to execute, deliver and perform its obligations under this Agreement.

 

11. Default and Remedies.

 

(a) Events of Default.  Any of the following occurrences or events, by or against a Party, shall constitute a default under this Agreement: breach of any of the terms, conditions, representations, warranties, or guarantees expressed in this Agreement.

 

(b) Remedies.  In the event of a default by a Party each non-defaulting Party shall have all such remedies as may be available to such non-defaulting Party in law or at equity.  Notwithstanding the foregoing, a breach of this Agreement by a Party shall in no event give a non-defaulting Party the right to suspend or not perform any obligation such non-defaulting Party owes to the other non-defaulting Party under this Agreement.

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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12. Publicity.  No Party shall make any disclosure or public statement with respect to this Agreement or the terms and conditions contained herein without the prior written consent of each of the other Parties.

 

13. Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA.

 

14. Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall constitute an original, but all of which counterparts together shall constitute one and the same instrument.

 

15. Entire Agreement.  This Agreement and any agreement, document or instrument attached hereto or referred to herein (i) integrate all the terms and conditions mentioned herein or incidental hereto and (ii) supersede all oral negotiations and prior writings in respect to the subject matter hereof, including without limitation the Memorandum of Agreement by and among Akeena, Real Goods and SunRun dated as of September 14, 2010.

 

16. Further Assurances.  Each of Akeena, Real Goods and SunRun agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by another Party which are not inconsistent with the provisions of this Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement.

 

17. Dispute Resolution.  The Parties shall negotiate in good faith and attempt to resolve any dispute within thirty (30) days after the date that a Party gives written notice of such dispute to each other Party.  In the event that the Parties are unable to reach an agreement within such thirty (30) day period (or such longer period as the Parties may agree), then each Party may pursue such remedies as are available to it at law or equity.  In any proceeding to enforce or interpret this Agreement, the prevailing party shall be entitled to recover its expenses incurred in such proceeding, including reasonable attorney fees and expert witness fees and costs.

 

18. Amendments.  No change, amendment or modification of this Agreement shall be valid or binding upon the parties hereto unless such change, amendment, or modification shall be in writing and duly executed by all Parties.

 

19. Assignment.  No Party may assign this Agreement without the prior written consent of each other Party, provided, however, SunRun may assign this Agreement with respect to Akeena to Assignee (as defined in the Akeena EPC) consistent with Section 14.1 of the Akeena EPC and SunRun may assign this Agreement with respect to Real Goods to Assignee (as defined in the Real Goods EPC) consistent with Section 14.1 of the Real Goods EPC.  This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns.

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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20. No Waiver.  Any failure of SunRun, Akeena or Real Goods to enforce any of the provisions of this Agreement or to require at any time performance by another Party of any of the provisions hereof during the pendency of this Agreement shall in no way affect the validity of this Agreement, or any part hereof, and shall not be deemed a waiver of the right of SunRun, Akeena or Real Goods thereafter to enforce any and each such provision.

 

21. Severability.  If any term or provision of this Agreement is determined to be invalid, in conflict with any Law (as defined in the Real Goods EPC), void, or otherwise unenforceable, and provided the terms and provisions of the Agreement that are essential to the Parties remain substantially in effect, then the remaining terms and provisions will continue in full force and effect and the offending term or provision will be given the fullest meaning and effect allowed by Law.

 

22. Third Party Beneficiary.  Nothing herein, express or implied, shall create or establish any third party beneficiary hereto nor confer upon any Person not a party to this Agreement any rights or remedies under or by reason of this Agreement.

 

[Signature pages to follow]

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the date set forth above.

 

	
AKEENA:

	
AKEENA SOLAR, INC.,

a Delaware corporation

 

 

By: /s/ Gary Effren                                                                     

Name: Gary Effren                                                                     

Title: President                                                                     

 

	
REAL GOODS:

	
REAL GOODS ENERGY TECH, INC., a Colorado corporation

 

By: /s/ John Schaeffer                                                                     

Name: John Schaeffer                                                                     

Title: President                                                                     

 

 

	
SUNRUN:

	
SUNRUN INC.,

a Delaware corporation

 

 

By: /s/ Edward Fenster                                                                     

Name: Edward Fenster                                                                     

Title: CEO                                                                     

 

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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Schedule 5

 

 

Warranty Information

 

 

For purposes of this Agreement, “Warranty Information” shall mean:

 

1) copies of the OEM warranty contracts related to the Completed Solar Facilities and the Construction Solar Facilities to the extent authorized by such OEM equipment suppliers after Akeena’s good faith efforts to secure consent to Akeena’s delivery to SunRun of such OEM warranty contracts, and any existing warranty claims related thereto;

 

2) copies of the OEM warranties of any suppliers of equipment included as components or sub-components in any Completed Solar Facility or Construction Solar Facility;

 

3) contact information for such suppliers of equipment included in any Completed Solar Facility  or Construction Solar Facility; and

 

4) any warranty claim procedures specified by such suppliers.

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

  

  

 

Exhibit A

 

Completed Solar Facilities:

 

 

[***]

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

  

  

 

Exhibit B

 

Construction Solar Facilities:

 

 

[***]

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

  

  

 

Exhibit C

 

Pending Solar Facilities:

 

 

[***]

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

  

  

 

Exhibit D

 

 

Real Goods’ warranty obligation to SunRun for Ordinary-Course-of-Business Warranty Claims shall be as set forth below (capitalized terms used but not defined below shall have the meanings given to them in the Akeena EPC):

 

 

1. Contractor’s Warranties.  Contractor covenants and warrants that: (i) all Work is of good quality and installed, constructed and accomplished in a good and workmanlike manner and using skill, care and diligence consistent with all manufacturer’s requirements and Prudent Practices; (ii) Contractor shall procure, supply, install, construct and test the Work so that all Work performed complies with all applicable Laws; (iii) all Work is free from defects and deficiencies in materials and workmanship for the Solar Facility for a period of ten (10) years and five (5) years for the roof following Final Completion; and (iv) all material and equipment constituting any portion of the Work are in good order and are new when installed.  SunRun’s sole remedy and Contractor’s sole liability under the warranties provided in this section will be the repair or replacement, at the Contractor’s option, of the defective Work.  Upon discovery of defective Work, SunRun will notify the Contractor in writing of the defective Work.  The Contractor will have fifteen (15) days from such written notice to either repair or replace the defective Work.  If the Contractor fails to repair or replace the defective Work within such fifteen (15) days, SunRun at its option, and after notice to Contractor, shall have the right to perform the necessary Work and charge the cost thereof to Contractor.

 

2. Equipment Warranties.  In procuring all equipment necessary for the Work, Contractor shall obtain all applicable manufacturers’ warranties.  In performing the Work, Contractor warrants that it will install all equipment in such a manner as to not void or otherwise negate any manufacturers’ warranty.  On the date that Contractor achieves Final Completion, Contractor shall deliver to SunRun or Assignee all manufacturers’ warranties it obtained when procuring the equipment which shall be for the sole benefit of SunRun.

 

3. Warranties’ Transfer.  In the case that SunRun or Assignee sells a Solar Facility, the warranties granted herein shall remain in effect and shall transfer to the new owner of the Solar Facility.

 

4. Limited Warranty Exclusions.  The warranty and obligations stated here shall not apply to:

 

(a) Damage, malfunction, or degradation of Solar Facility caused by failure to properly operate or maintain the Solar Facility in accordance with the printed instructions provided with the Solar Facility;

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

  

  

 

 

(b) Damage, malfunction, or degradation of electrical output caused by any repair or replacement using a part or service not provided or authorized in writing by Contractor; and

 

(c) Damage, malfunction, or degradation of the Solar Facility resulting from SunRun or third party abuse, accident, alteration, improper maintenance, misuse, negligence or vandalism, or from earthquake, fire, flood, or other acts of God.

 

5. Warranty Disclaimer. THE EXPRESS WARRANTIES CONTAINED HEREIN ARE EXCLUSIVE AND IN LIEU OF ALL OTHER STATUTORY, EXPRESS OR IMPLIED WARRANTIES, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, HABITABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE. ANY STATUTORY OR IMPLIED WARRANTIES ARE WAIVED TO THE FULLEST EXTENT PERMISSIBLE UNDER STATE AND FEDERAL LAW.

 

6. Mutual Waiver of Consequential Damages.  SUNRUN AND REAL GOODS WAIVE CLAIMS AGAINST EACH OTHER FOR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATED TO THIS WARRANTY AND AGREEMENT.  FOR PURPOSES OF THIS WARRANTY AND AGREEMENT, “CONSEQUENTIAL DAMAGES” WILL INCLUDE THE FOLLOWING:  (I) DAMAGES INCURRED BY SUNRUN FOR LOSSES OF USE, INCOME, PROFIT AND FINANCING; AND (II) DAMAGES INCURRED BY REAL GOODS FOR PRINCIPAL OFFICE AND SITE OFFICE EXPENSES (INCLUDING BUT NOT LIMITED TO THE COMPENSATION OF PERSONNEL STATIONED THERE) AND FOR LOSSES OF INCOME, PROFIT OR FINANCING FROM OR RELATED TO THIS WARRANTY AND AGREEMENT OR REAL GOODS’ OTHER CONTRACTS.

 

 

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

  

  

 

Exhibit E

 

Pending Solar Facility Addendums

 

 

[***]

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.exhibit_10-3.htm

 

Exhibit 10.3

 

CONFIDENTIAL TREATMENT

REQUESTED PURSUANT TO RULE 24b-2

Certain portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 under the Securities Exchange Act of 1934. The omitted materials have been filed separately with the Securities and Exchange Commission.

SUPPLY AND WARRANTY AGREEMENT

This SUPPLY AND WARRANTY AGREEMENT (the “Agreement”) is entered into effective as of October 7, 2010 by and between Akeena Solar, Inc., d/b/a Westinghouse Solar, a Delaware corporation (“Akeena”), and Real Goods Energy Tech, Inc., a Colorado corporation (“Real Goods,”). Akeena and Real Goods are each referred to as a “Party” and collectively as the “Parties”.

 

WHEREAS, in connection with that certain Master Assignment Agreement by and among SunRun, Inc. (“SunRun”), Akeena and Real Goods dated as of the date hereof (the “Master Assignment Agreement”), Akeena will assign and Real Goods will assume certain obligations of Akeena with respect to Pending Solar Facilities (as defined in the Master Assignment Agreement) (the “Assigned Pending Contracts”);

 

WHEREAS, Real Goods also intends to become a dealer of Akeena products

 

WHEREAS, in connection with Real Goods' assumption of the Assigned Pending Contracts and status as an Akeena dealer, the parties wish to enter into this agreement to set forth certain terms and conditions related thereto.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, it is agreed:

 

1. Definitions.

 

1.1 “Akeena EPC” means the Amended and Restated Master Solar Facility Turnkey Contract entered into between Akeena and SunRun dated October 29, 2008.

 

1.2  “ASP” shall mean the aggregate Contract Price of all ASP Contracts, net of all discounts, divided by the aggregate amount of kW capacity installed under all ASP Contracts.

 

1.3 “ASP Contracts” shall mean the Incomplete Contracts which have not been cancelled or terminated prior to their Final Completion.

 

1.4 “CSI Rebate” means a rebate under California Solar Initiative.

 

1.5 “Effective Date” is the date set forth in the preamble of this Agreement.

 

1.6 “Contract Price” shall have the meaning set forth in the Akeena EPC.

 

1.7 “Final Completion” has the meaning set forth in the Akeena EPC.

 

1.8 “First Responder” means the company first responsible for responding to warranty claim service requests.

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

  

  

  

 

1.9 “Incomplete Contracts” means those certain Addendums to the Akeena EPC with respect to the Pending Solar Facilities attached to Exhibit C of the Master Assignment  Agreement.

 

1.10 "Losses" means losses, demands, damages, liabilities, deficiencies, claims, interest, awards, judgments, penalties, costs, settlements, and expenses (including attorneys’ fees, costs, and other out-of-pocket expenses incurred in investigating, preparing, or defending the foregoing).

 

1.11 “Ordinary-Course-of-Business Warranty Claims” shall have the meaning set forth in the Master Assignment Agreement.

 

1.12 The “Term” of this Agreement shall commence on the date hereof and shall continue for so long as Real Goods is obligated to service Ordinary-Course-of-Business Warranty Claims, plus 180 days.

 

1.13  "Third Party Losses" means any Losses owed to third parties.

 

2. Incomplete Contracts.

 

2.1 Supply and Pricing of Akeena Products. In connection with Real Goods assumption of Akeena's obligations under the Incomplete Contracts, Akeena agrees to sell the following products to Real Goods at the following prices, terms and conditions:

 

(a) For all solar installation jobs in which Real Goods will be installing Alternating Current (“AC”) solar panels on any roof, Akeena will supply to Real Goods fully functional, ready to install, Westinghouse (f/k/a Integrated Andalay) AC solar panels at a price of $[***] per guaranteed watt as set forth on such panel's wattage capacity nameplate, provided however, that this price may be increased in Akeena’s sole discretion upon and after the one year anniversary of the Execution Date unless the completion of a particular installation has been delayed as a result of circumstances beyond the reasonable control of Real Goods in which case the price shall remain unchanged;

 

(b) For all jobs in which Real Goods will be installing Direct Current (“DC”) solar panels on any roof, Akeena will supply to Real Goods fully functional, ready to install, Westinghouse (f/k/a Integrated Andalay) DC solar panels at a price of $[***] per guaranteed watt as set forth on such panel's wattage capacity nameplate, provided however, that this price may be increased in Akeena’s sole discretion upon and after the one year anniversary of the Execution Date unless the completion of a particular installation has been delayed as a result of circumstances beyond the reasonable control of Real Goods in which case the price shall remain unchanged;

 

(c) The solar panels delivered by Akeena and purchased by Real Goods pursuant to the terms of this Agreement shall be sold and purchased pursuant to the standard terms and conditions contained in Exhibit A and in the applicable Purchase Order.  To the extent that the terms of a Purchase Order conflict with the terms hereof (including Exhibit A), the terms hereof shall control.

 

(d) Except to the extent as modified in Section 2.1 of this Agreement and Exhibit A, the Westinghouse Solar Dealer Agreement (“Dealer Agreement”), that will be executed by Real Goods and Akeena, shall govern the terms of all purchases made by Real Goods for Akeena product.  Upon completion of the purchases related to the Incomplete Contracts any future purchases shall be governed fully by the terms of the Dealer Agreement.

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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2.2 Reimbursement and Cancelation Fees.

 

(a) For each Incomplete Contract for which Final Completion is achieved, Real Goods shall pay Akeena a one time reimbursement fee equal to $[***] per guaranteed watt of capacity installed under such completed Incomplete Contract (a “Completion Reimbursement Fee”).  Such amounts are due on a per Contract basis net 30 days after the Final Completion date of the underlying project or, if Akeena products are used on the project, then net 30 days after Real Goods’ receipt of the invoice for such products.

 

(b) If any Incomplete Contracts are cancelled or otherwise terminated prior to Final Completion, Real Goods shall not be obligated to pay any Completion Reimbursement Fee to Akeena.  In the event Real Goods previously paid a Completion Reimbursement Fee and despite Real Goods’ commercially reasonable efforts to proceed with the project, an Incomplete Contract is cancelled or otherwise terminated, Akeena hereby agrees to pay Real Goods a contract termination fee equal to $[***] per guaranteed watt of capacity which was to be installed under such cancelled or terminated Incomplete Contract (a “Contract Cancelation Fee”).  Akeena shall either pay such Contract Cancelation Fee to Real Goods net 30 days following receipt of written notice from Real Goods that an Incomplete Contract has been cancelled or credit the amount of such Contract Cancelation Fee against other future Completion Reimbursement Fees owed by Real Goods to Akeena hereunder.  If Real Goods has taken delivery of any Akeena products with respect to an Incomplete Contract which is or has been cancelled, Real Goods shall have the right to return that product to Akeena at no cost and without imposition of a restocking fee.

 

2.3 ASP of Incomplete Contracts.

 

(a) Akeena hereby guarantees that the ASP for the ASP Contracts shall be no less than $[***] per guaranteed watt of capacity installed, net of all discounts Akeena offered to the SunRun customer or SunRun itself (“Target ASP”).

 

(b) In the event that the Parties’ determine that the ASP for the ASP Contracts is less than the Target ASP, Akeena agrees to pay Real Goods pursuant to Section 2.3(c) an amount equal to the amount determined by multiplying (i) the number of guaranteed watts of capacity installed under the ASP Contracts by (ii) the difference between (A) the Target ASP and (B) the actual ASP for the ASP Contracts (the “ASP Deficiency Payment”).

 

(c) An initial ASP Deficiency Payment, if any, shall be due and payable within 30 days after the date upon which at least 50% of the ASP Contracts have achieved Final Completion, which payment shall be calculated based upon the ASP Contracts completed as of such date.  A second ASP Deficiency Payment from Akeena, if due, shall be payable within 30 days after 100% of the ASP Contracts have achieved Final Completion.  The second ASP Deficiency Payment, if any, shall be calculated based upon all of the ASP Contracts.  However, it shall be reduced by the amount of the initial ASP Deficiency Payment.

 

2.4 CSI Rebates. To the extent that the CSI Rebates quoted in the Incomplete Contracts are, in the aggregate, larger than the CSI Rebates that are actually paid under the California Solar Initiative for all Incomplete Contracts (excluding any cancelled contracts), Akeena will be liable to Real Goods for the difference, provided that any such liability of Akeena shall be reduced by the amount Akeena refunds to SunRun pursuant to Section 4(d) of the Master Assignment Agreement.  Akeena shall pay any amount due pursuant to this Section 2.4 within 30 days following Real Goods’ receipt of all CSI Rebates for the Incomplete Contracts and delivery to Akeena of an invoice for the amount due.

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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3. Warranty Obligations.

 

3.1 Warranty Services; Reimbursement for Ordinary-Course-of-Business Warranty Services.

 

(a) Subject to the terms and conditions of the Master Assignment Agreement, Real Goods shall be solely and entirely responsible for all warranty obligations with respect to the Assigned Pending Contracts. Additionally, subject to the terms and conditions of the Master Assignment Agreement, Real Goods has agreed to be the First Responder for all Ordinary-Course-of-Business Warranty Claims on Completed Solar Facilities and Construction Solar Facilities as such terms are defined in the Master Assignment Agreement.

 

(b) Akeena hereby agrees to reimburse Real Goods for all services performed with respect to such Ordinary-Course-of-Business Warranty Claims pursuant to the terms hereof.  Akeena's reimbursement obligations for all Ordinary-Course-of-Business Warranty Claims will be calculated as follows: (a) labor costs will be invoiced at $[***] per hour for entire crew (regardless of crew size) responding plus one way travel time, and (b) material costs shall be invoiced at cost to Real Goods plus 10%.

 

(c)  Real Goods agrees that it will consult with Akeena prior to performing any Ordinary-Course-of-Business Warranty Claims where the reimbursement cost would exceed $[***] per claim, regarding a course of action for such service. In no event shall Akeena be responsible for reimbursing Real Goods for any work on Ordinary-Course-of-Business Warranty Claims wherein the cost of the claim exceeds $[***] and Akeena’s written consent was not first obtained.  If Akeena and Real Goods cannot reach an agreement with respect to course of action for an Ordinary-Course-of-Business Warranty Claim within fifteen (15) days of the warranty claim receipt, the obligation of Real Goods to provide service with respect to such claim shall automatically expire and Akeena shall assume the responsibility to perform such warranty service, provided that, Real Goods must make best efforts to ensure Akeena receives prompt notice of the claim and reasonable opportunity to respond. The parties will evaluate the $[***] limit for Ordinary-Course-of-Business Warranty Claims which requires such consultation every three months and negotiate in good faith a modified limit based on the cost of Ordinary-Course-of-Business Warranty Claims experienced.

 

(d) Reimbursement for Ordinary-Course-of-Business Warranty Claims will be due and payable by Akeena net 30 days after receipt of an invoice from Real Goods for such work.  As a condition precedent to Akeena paying Real Goods for any first responder warranty work, Real Goods shall submit with each application for payment of its warranty work a partial or final lien waiver and release of claims on behalf of itself and any of its subcontractors, vendors, or any other party providing equipment, services, materials or labor to the applicable project on Real Goods’ behalf.

 

3.2 Security for Ordinary-Course-of-Business Warranty Claims.

 

(a) The obligations of Real Goods to provide services with respect to Ordinary-Course-of-Business Warranty Claims as set forth under this Section 3 shall be conditioned upon and shall not become effective unless and until either (i) Akeena and Real Goods enter into the Collateral Agreement or (ii) a Escrow Deposit of $[***] is established for the benefit of Real Goods pursuant to the terms and conditions of the Master Assignment Agreement.

 

(b) The terms of the Collateral Agreement or Escrow Deposit shall include the following:

 

(i) as applicable, $[***] in escrowed cash or a $[***] bond, letter of credit, insurance policy or similar guarantee to Real Goods on terms reasonably acceptable to Real Goods.

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

-4-

  

 

(ii) The Collateral Agreement or Deposit Escrow will remain in effect for so long as Real Goods shall be obligated to perform Ordinary-Course-of-Business Warranty Claims.

 

(iii) The terms of the Collateral Agreement or Deposit Escrow will provide that Real Goods shall be allowed to immediately draw upon the bond, letter of credit, insurance policy or guarantee or escrow, as applicable, in the event that Akeena fails to reimburse Real Goods for any service on a Ordinary-Course-of-Business Warranty Claim within 30 days of delivery by Real Goods of an invoice therefor.

 

(iv) On each anniversary of the date hereof, if Real Goods has not drawn against the bond, letter of credit, insurance policy, guarantee, or escrow as applicable, during the preceding twelve months, the amount of the security will be reduced by $[***].

 

4. Leads.  For a period of 120 days after the Effective Date, Akeena will provide, to the extent possible, Real Goods with a minimum of five leads for potential solar power system customers per each executed contract that Real Goods enters for the sale of an Akeena solar power system while acting as an authorized Akeena solar power system dealer.

 

5. Representations and Warranties

 

5.1 Akeena.  Akeena hereby represents and warrants to Real Goods as follows:

 

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

 

(b) The rights and duties assigned by Akeena pursuant to this Agreement and the Master Assignment Agreement are not subject to any prior sale, transfer, assignment, lien or participation by Akeena or any agreement to assign, lien, convey, transfer or participate, in whole or in part.

 

5.2 Real Goods.  Real Goods hereby represents and warrants to Akeena that Real Goods: (i) is duly organized and validly existing under the laws of the State of Colorado, (ii) is in good standing under such laws and (iii) has full power, ability and authority to execute, deliver and perform its obligations under this Agreement.

 

5.3 THE WARRANTIES CONTAINED IN THIS SECTION ARE IN LIEU OF, AND EACH PARTY EXPRESSLY DISCLAIMS AND THE OTHER PARTY WAIVES ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR ARISING BY COURSE OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE TRADE OR OTHERWISE,

 

6. Certain General Terms and Conditions.

 

6.1 Discounts and Refunds.  In connection with and subject to the terms and conditions contained in the Master Assignment Agreement, Real Goods shall honor all discounts and refunds extended to customers of SunRun by Akeena pursuant to the written terms of the Incomplete Contracts.  Akeena represents and warrants that it has as of the Execution Date delivered to Real Goods a complete and accurate list of all applicable discounts and refunds.

 

6.2 Salary and Wages.  Notwithstanding anything in this Agreement, in the Master Assignment Agreement or in any other agreement or otherwise to the contrary, Real Goods shall not be liable for the payment of any wages, sales commissions, bonuses or other payments of any type to any agent of Akeena (including, without limitation, to any Akeena design consultants who sold a particular Assigned Pending Contract). 

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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6.3 Lowe’s Candidacy. Akeena hereby agrees to use commercially reasonable efforts to facilitate the candidacy of Real Goods as a Lowe's authorized installer of Westinghouse Solar power systems.

 

6.4 Indemnification.  Akeena agrees to indemnify, defend and hold Real Goods harmless from and against any and all Losses to the extent arising from (i) a breach by Akeena of its obligations hereunder or under the Master Assignment Agreement or (ii) any claims made by Akeena employees described under Section 6.2.  Real Goods agrees to indemnify, defend and hold Akeena harmless from and against any and all Losses arising from a breach by Real Goods of its obligations hereunder or under the Master Assignment Agreement.  In addition Real Goods agrees to indemnify, defend and hold Akeena harmless from and against any Third Party Losses to the extent arising out of or relating to Real Goods’ performance or lack of performance under this Agreement, the Master Assignment Agreement, or a Pending Solar Facility Addendum or while acting as First Responder on Ordinary-Course-Of-Business Warranty Claims as described herein.  In addition, Akeena agrees to indemnify, defend and hold Real Goods harmless from and against any Third Party Losses to the extent arising out of or relating to Akeena's performance or lack of performance under this Agreement, the Master Assignment Agreement, or the Completed Solar Facilities and the Construction Solar Facilities except as noted above with respect to Real Goods’ First Responder obligations.

 

6.5 Limitations of Liability.  EXCEPT AS SET FORTH ELSEWHERE IN THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING LOST PROFITS (WHETHER ACTUAL OR ANTICIPATED), LOST SAVINGS; INCREASED EXPENSE OF OPERATION; LOSS OF USE OR PRODUCTIVITY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY ASSIGNMENT, EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; AND, REGARDLESS OF WHETHER ANY SUCH CLAIM ARISES OUT OF BREACH OF CONTRACT, GUARANTY OR WARRANTY, TORT, PRODUCT LIABILITY OR ANY OTHER LEGAL THEORY.  EACH PARTY HEREBY RELEASES THE OTHER FROM ANY SUCH LIABILITY. THE FOREGOING LIMITATION OF LIABILITY SHALL REMAIN IN FULL FORCE AND EFFECT REGARDLESS OF WHETHER A PARTY’S REMEDIES HEREUNDER ARE DETERMINED TO HAVE FAILED THEIR ESSENTIAL PURPOSE.

 

6.6 Right to Set-off and Cross Defaults.  A default by either Party under the Master Assignment Agreement shall constitute a default by such Party under this Agreement.  In the event a Party is in default and the breach of its obligations run to the other Party, and not SunRun, then the non-defaulting Party shall have the right to off-set any amounts it owes hereunder or otherwise with any amounts the defaulting Party owes the non-defaulting Party pursuant to the terms hereof.

 

6.7 Further Assurances.  Real Goods and Akeena agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by the other party which are not inconsistent with the provisions of this Agreement or the Master Assignment Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement or the Master Assignment Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement.

 

6.8 Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which taken together will constitute but one and the same instrument.

 

6.9 Severability.  If any term or provision of this Agreement is determined to be invalid, in conflict with any law, void, or otherwise unenforceable, and provided the terms and provisions of the Agreement that are essential to the interests of Real Goods and Akeena remain substantially in effect, then the remaining terms and provisions will continue in full force and effect and the offending term or provision will be given the fullest meaning and effect allowed by law.

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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6.10 Applicable Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of California without giving effect to any choice of law or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California.

 

6.11 Disputes.  Except for claims for emergency or preliminary injunctive relief with respect to breach of the confidentiality provisions herein, which may be raised in any court of competent jurisdiction, if there is a dispute between the Parties arising under this Agreement, the Parties agree to escalate the matter for discussion and resolution by designated members of their senior management teams.  If these designated members are unable to resolve the matter within a reasonable period of time, not to exceed thirty (30) days, then any dispute, claim or controversy arising out of or relating to this Agreement, or the interpretation, making, performance, breach or termination thereof, shall be finally settled by binding arbitration in Santa Clara County, California under the Rules of Arbitration of JAMS/Endispute, by a single arbitrator reasonably familiar with the business pertaining to this Agreement.

 

6.12 Headings.  The subject headings of the sections and subsections of this Agreement are included only for purposes of convenience, and shall not affect the construction or interpretation of any of its provisions.

 

6.13 Amendments, Waivers and Assignment. No change, amendment or modification of this Agreement shall be valid or binding upon the parties hereto unless such change, amendment, or modification shall be in writing and duly executed by both parties. Any failure of Real Goods or Akeena to enforce any of the provisions of this Agreement shall in no way affect the validity of this Agreement or any part hereof, and shall not be deemed a waiver of the right of Real Goods or Akeena thereafter to enforce any and each such provision. This Agreement is binding on the successors, assigns, and legal representatives of Real Goods and Akeena; provided, however that neither Real Goods nor Akeena may assign this Agreement without the prior written consent of the other party, and provided further that Real Goods may assign this agreement to any of its affiliates without such prior written consent.  For purposes of this Agreement, “Affiliate” means with respect to any Party, any other person or entity that directly or indirectly controls, is controlled by, or is under common control with the specified Party, and for the purposes of this definition ‘control’ of an entity means the ownership of 50% of the outstanding shares or other equity interests in such entity, or the right to elect or appoint a majority of the board of directors or governing body of such entity.

 

6.14 Confidentiality.  Each Party agrees to hold the Confidential Information of the other in confidence and not to use, reproduce, distribute or disclose it except as authorized by the other Party in writing in connection with the performance of this Agreement. “Confidential Information” means (i) the terms of this Agreement and (ii) all information of Akeena or Real Goods, which is disclosed by either Party to the other, and which is non-public, proprietary or confidential and which is marked as “confidential” or “proprietary,” or due to its character and nature, would otherwise be deemed confidential, whether or not marked.  Confidential Information also includes the amounts ordered and prices paid under this Agreement.

 

6.15 Force Majeure.  Upon the occurrence of an event of Force Majeure with respect to a Party, its obligations under this Agreement will, to the extent that they are affected by the event of Force Majeure, be suspended; provided, however, that under no circumstances will a Party’s obligations to pay any amounts due under this Agreement be suspended.  Any Party affected by an event of Force Majeure will promptly inform the other Party and will use commercially reasonable efforts to fulfill its obligations under this Agreement and to remove or avoid any disability and mitigate any damages caused by such event of Force Majeure at the earliest practicable time and to the greatest extent possible. For purposes of this Agreement “Force Majeure” means an event that is outside the reasonable control of a Party, or that with the exercise of due diligence or reasonable business practices could not reasonably have been prevented, avoided or removed by that Party, and that prevents that Party from performing its obligations under this Agreement and does not result from such Party’s negligence or the negligence of its agents, employees or subcontractors, including, but not limited to, unforeseeable events such as acts of God, earthquakes, storms, floods, natural events, wars, court order, rebellions, riots, strikes, civil disturbances, acts of foreign and/or domestic governmental authorities, labor strikes, and lockouts.

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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6.16 Relationship between the Parties.  Nothing in this Agreement shall create or be deemed to create a partnership, joint venture, or employer/employee relationship between the Parties and neither Party will or is entitled to act as an agent for the other Party.

 

6.17 No Third Party Beneficiaries.  This Agreement confers no rights whatsoever upon any person other than Akeena and Real Goods and shall not create, or be interpreted as creating, any standard of care, duty or liability to any person not a Party hereto.

 

6.18 Attorneys' fees. In the event of any legal proceeding between Real Goods and Akeena arising out of this Agreement, including arbitration or trial, the substantially prevailing party shall be entitled to recover its actual fees and costs, including attorneys' fees and expert witness fees, incurred in such proceedings.

 

6.19 Entire Agreement. This Agreement (including the exhibits and schedules hereto) and the Master Assignment Agreement (including any exhibits and schedules thereto) constitute the entire agreement, and supersede all prior written agreements, arrangements, communications, and understandings and all prior and contemporaneous oral agreements, arrangements, communications, and understandings between the Parties with respect to the subject matter hereof and thereof.

 

6.20 Notices.  Any and all notices or other communications or deliveries required or permitted to be given or made pursuant to any of the provisions of this Agreement shall be deemed to have been duly given or made for all purposes if (a) hand delivered, (b) sent by a nationally recognized overnight courier for next business day delivery or (c) sent by telephone facsimile transmission or email (with prompt oral confirmation of receipt) as follows:

 

    If to Real Goods:

 

    __________________

    __________________

    __________________

    __________________

 

    If to Akeena:

 

    Akeena Solar, Inc.

    16005 Los Gatos Blvd.

    Los Gatos, CA 95032

    Attn:  General Counsel

    Phone: 408-402-9453

    Fax:  408-395-7979

or at such other address as any party may specify by notice given to the other party in accordance with this Section 6.20.  The date of giving of any such notice shall be the date of hand delivery, the business day sent by telephone facsimile or email, and the day after delivery to the overnight courier service.

 

[Signature Page Follows]

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the date first above written.

 

	
AKEENA SOLAR, INC.

 

 

By:  /s/ Garry Effren

Name: Garry Effren                                                                 

Title:  President                                                                 

 

	
REAL GOODS ENERGY TECH, INC.

 

 

By: /s/ John Schaeffer                                                                 

Name: John Schaeffer                                                                 

Title: President                                                                 

 

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

 

  

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Exhibit A

 

Standard Terms and Conditions

 

	
·  

	
The prices for the solar panels delivered pursuant to the Agreement are FOB at Akeena's Santa Clara County, CA warehouse facility and payment terms for such panels shall be net 30 days from the date of receipt.

	
·  

	
All solar panels delivered pursuant to the Agreement shall include all built in wiring, grounding and micro inverters, and all required mounting brackets, for a complete roof installation.

	
·  

	
Akeena will ship at Real Goods’ risk and expense to any Real Goods warehouse located in California or Colorado as specified on the purchase order within ten (10) days after Akeena’s accepts the purchase order.

	
·  

	
Akeena’s standard product warranties will be provided with all goods purchased hereunder as set forth in the Dealer Agreement and those product warranties’ terms.

[***] Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request.

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