Document:

Exhibit 10.1 

 MASTER INTERCOMPANY FRAMEWORK AGREEMENT

This MASTER INTERCOMPANY FRAMEWORK AGREEMENT (this “Agreement”), is made and entered into as of September 30, 2014 (the “Effective Date”), by and between VIVINT SOLAR, INC. (f/k/a V Solar Holdings, Inc.), a Delaware corporation (together with its successors and permitted assigns, “Vivint Solar”), and VIVINT, INC., a Utah corporation (together with its successors and permitted assigns “Vivint”).  Each of Vivint Solar and Vivint may also be referred to herein individually as a “Party”, and collectively as the “Parties”.

RECITALS

WHEREAS, Vivint Solar and Vivint are affiliate business entities, under the common control and ownership of 313 Acquisition, LLC, a Delaware limited liability company.

WHEREAS, the Parties have been operated as an interrelated business enterprise, and now desire to establish a framework for the separation of their operations, and to clarify and memorialize their respective rights and ongoing responsibilities to each other and their respective subsidiaries, on the terms and conditions set forth in this Framework Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.Transaction Agreements.

(a)Agreements to be Executed at the Closing.  Concurrently with this Framework Agreement, the Parties will execute the following additional agreements (together with this Framework Agreement, the “Transaction Agreements”):

(i)the Marketing and Customer Relations Agreement between Vivint and Vivint Solar Developer LLC; 

(ii)the Trademark Assignment Agreement between Vivint and Vivint Solar;

(iii)the Trademark Assignment Agreement between Vivint and Vivint Solar Licensing LLC;

(iv)Trademark License Agreement between Vivint Solar Licensing, LLC and Vivint Solar;

(v)the Limited Liability Company Agreement between Vivint and Vivint Solar;

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(vi)the Transition Services Agreement between Vivint and Vivint Solar; 

(vii)the Product Development and Supply Agreement between Vivint and Vivint Solar Developer, LLC;

(viii)the Non-Competition Agreement between Vivint and Vivint Solar; and

(ix)the Bill of Sale between Vivint and Vivint Solar.

(b)Definitions.  When used in any Transaction Agreement, the capitalized terms set forth this Agreement (including Exhibit 1) will have the meanings set forth in this Agreement (including Exhibit 1).

2.Closing; Closing Deliveries.

(a)Subject to the terms and conditions of this Framework Agreement, the transactions contemplated in this Framework Agreement will take place at a closing (the “Closing”) to be held on the Effective Date at a mutually agreeable location or by the exchange of electronic documentation.

(b)At the Closing or prior to the Closing, each Party will deliver to the other:

(i)an executed counterpart to each of the Transaction Agreements;

(ii)all payments then due (if any) under the Transaction Agreements;

(iii)all other agreements, documents, instruments, certificates, or other information or materials required to be delivered at the Closing by that Party under the Transaction Agreements; and

(iv)a certificate of the Secretary of that Party certifying: (x) that attached to the certificate are true and complete copies of all resolutions adopted by the board of directors or managers of that Party authorizing the execution, delivery, and performance of each Transaction Agreement and the consummation of the transactions contemplated under the Transaction Agreements, that all of those resolutions are in full force and effect, and are all the resolutions adopted in connection with the transactions contemplated by the Transaction Agreements; and (y) the names of the officers of that Party authorized to sign each Transaction Agreement and the other documents to be delivered under the Transaction Agreements.

3.Representations and Warranties; Certain Covenants.  

(a)Representations and Warranties.  Each Party represents and warrants to the other that:

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(i)Organization and Authority. Such Party is a corporation duly organized, validly existing, and in good standing under the Laws of the state of Delaware or Utah, as applicable. Such Party has full corporate power and authority to enter into the Transaction Agreements, to carry out its obligations under the Transaction Agreements, and to consummate the transactions contemplated by the Transaction Agreements. The execution and delivery by such Party of the Transaction Agreements and the performance by such Party of its obligations under the Transaction Agreements have been duly authorized by all requisite corporate action on the part of such Party, and each Party will provide the other Party evidence of those approvals upon request. The Transaction Agreements have been duly executed and delivered by such Party, and (assuming due authorization, execution, and delivery by the other Party) the Transaction Agreements constitute a legal, valid, and binding obligation of such Party enforceable against such Party in accordance with their terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity.

(ii)No Conflicts; Consents. The execution, delivery and performance by such Party of each of the Transaction Agreements and the consummation of the transactions contemplated by the Transaction Agreements do not and will not: (A) conflict with or result in a violation or breach of, or default under, any provision of the Organizational Documents of such Party; (B) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to such Party; or (C) require the consent, notice or other action by any Person under any Contract to which such Party is a Party, except as expressly set forth in the applicable Transaction Agreement or as shall have been obtained by such Party as of the Effective Date. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to such Party in connection with the execution and delivery of the Transaction Agreements and the consummation of the transactions contemplated by the Transaction Agreements.

(iii)Legal Proceedings. There are no Actions pending or, to such Party’s knowledge, threatened against or by such Party or any Affiliate of such Party that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by the Transaction Agreements. To such Party’s knowledge, no event has occurred or circumstances exist that may give rise or serve as a basis for any such Action.

(iv)Compliance with Laws.  Each Party and its Subsidiaries will comply with all applicable laws in connection with the performance of obligations or exercise of rights under the Transaction Agreements.

(b)Certain Covenants.  Vivint will not damage the value of the goodwill associated with the “Vivint” or “Vivint Solar” marks. Vivint Solar will not damage the value of the goodwill associated with the “Vivint” or “Vivint Solar” marks. If Vivint, in any country or jurisdiction, plans to cease use of or abandon rights in the “Vivint” mark, Vivint will provide prior written notice to Vivint Solar and Vivint Solar Licensing, LLC and hereby consents to Vivint Solar and Vivint Solar Licensing, LLC taking all reasonable actions to prevent abandonment of the Vivint mark in the applicable country or jurisdiction.  

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4.Confidentiality. 

(a)Obligations of the Receiving Party.

(i)The Receiving Party and its Representatives will:  (i) keep and safeguard as confidential all of the Disclosing Party’s Confidential Information, using at least those measures that the Receiving Party takes to protect its own information of a similar nature, including, as applicable, secure access to information technology systems where Confidential Information is stored, which measures will, at minimum, be reasonable; (ii) not disclose any Confidential Information in any manner whatsoever, except in accordance with Sections 4(a)(ii) or 4(a)(iv), or as required by applicable Law pursuant to Section 4(b); and (iii) use the Disclosing Party’s Confidential Information only to perform the Receiving Party’s obligations or exercise the Receiving Party’s rights under a Transaction Agreement or otherwise for the benefit of the Disclosing Party.

(ii)A Receiving Party may disclose the Disclosing Party’s Confidential Information to the Receiving Party’s Representatives who: (a) have a need to know the Confidential Information for the performance of the Receiving Party’s obligations or exercise of its rights under a Transaction Agreement; (b) are informed by Receiving Party of the confidential nature of the Confidential Information; and (c) agree in writing to strictly abide by an obligation of confidentiality no less strict than the terms of this Section 4 or have another legal duty of confidentiality to the Receiving Party.  Each Party will remain liable for any use or disclosure of the other Party’s Confidential Information by any Representative in contravention of this Section 4.

(iii)Neither Party will make any copy of the other Party’s Confidential Information unless approved in writing by the other Party. Neither Party may remove any proprietary, copyright, confidential, trade secret or other legend from any of the other Party’s Confidential Information or any copies.

(iv)Except for disclosures made in accordance with Section 4(a)(ii), any disclosure by the Receiving Party or any of its Representatives of the other Party’s Confidential Information is subject to the prior written consent of one of the following individuals at the Disclosing Party: (i) for Vivint Solar, the Chief Executive Officer or the Chief Legal Officer; and (ii) for Vivint, the President or the General Counsel.

(b)Compelled Disclosure.  If either Party or a Subsidiary of either Party is requested to or required by Law to disclose the existence or terms of any of the Transaction Agreements or the other Party’s Confidential Information in contravention of the provisions of this Section 4, such Party must promptly provide the other Party with drafts of any filings or other documents in which such Party or its Subsidiary is required to disclose any portion of a Transaction Agreement, or any other Confidential Information of the other Party subject to the terms of this Section 4, but in no event less than three business days prior to filing or disclosure, and such Party will consider in good faith making any changes to such materials as requested by the other Party to the extent such changes are, in the good faith judgment of such Party, permitted by Law.

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(c)Public Announcements; Non-Disparagement.  Neither Party may make any public announcement, including any press release, website disclosure, interview intended for publication, advertisement, professional or trade publication, mass marketing material, or other announcement to the general public, in each case regarding the other Party or any Transaction Agreement, unless the other Party agrees in writing in accordance with Section 4(a)(ii) or Section 4(a)(iv), as applicable. Each Party will avoid deceptive, misleading or unethical practices that are or might be detrimental to the other Party and not disparage the other Party or its products or services.

(d)No Warranty.  EXCEPT AS EXPRESSLY SET FORTH IN ANOTHER TRANSACTION DOCUMENT, ALL CONFIDENTIAL INFORMATION IS PROVIDED “AS IS.”  NEITHER PARTY MAKES ANY WARRANTIES, EXPRESS, IMPLIED, OR OTHERWISE, REGARDING THE ACCURACY, COMPLETENESS, OR PERFORMANCE OF ITS CONFIDENTIAL INFORMATION.

(e)Return of Materials.  All documents and other tangible objects containing or representing Confidential Information and all copies of them will be and remain the property of the Disclosing Party.  Upon the Disclosing Party’s request, the Receiving Party will promptly deliver to the Disclosing Party all Confidential Information, without retaining any copies unless otherwise expressly authorized by another Transaction Agreement.

(f)No License.  Nothing in this Section 4 is intended to grant any rights to either Party under any patent, copyright, or other intellectual property right of the other Party, nor will this Section 4 grant any Party any rights in or to the Confidential Information of the other Party, except as expressly set forth in this Section 4.

(g)Term.  The obligations of each Receiving Party under this Section 4 will survive until all Confidential Information of the other Party becomes publicly known and made generally available through no action or inaction of the Receiving Party.

(h)Indemnity.  The Receiving Party will indemnify and hold harmless the Disclosing Party from any damage, loss, cost, or liability (including reasonable attorney fees) arising or resulting from any unauthorized use or disclosure of the Disclosing Party’s Confidential Information by Receiving Party or any of its employees, agents, or Subsidiaries. 

5.Copies of Records; Further Assurances. Each Party will promptly provide, upon the other Party’s written request, copies of the other Party’s records in a Party’s or any of its Subsidiaries’ possession or control.  Each Party will promptly execute, or cause its Subsidiaries to promptly execute, such other documents and instruments, and provide such other assurances, as reasonably necessary to carry out the purpose and intent of the Transaction Agreements.

6.Miscellaneous. Except as otherwise expressly set forth in a Transaction Agreement, the following will apply to all Transaction Agreements:

(a)Expenses. All costs and expenses, including fees and disbursements of counsel, financial advisors, and accountants, incurred in connection with any Transaction Agreement will be paid by the Party incurring those costs and expenses.

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(b)Arms-Length.  Each Party acknowledges and agrees that the Transaction Agreements are the product of an arm’s-length negotiation, without duress, coercion, or collusion, and will be interpreted as agreements between two Parties of equal bargaining strength.  It is the Parties’ intention that the Transaction Agreements reflect the conditions which would be obtained between comparable, independent persons in substantially similar transactions (taking into account the relative responsibilities and risks between the Parties) and comparable circumstances (taking into account the location, market, and economic conditions), thereby providing the closest approximation of the workings of the open market.

(c)Entire Agreement.  This Framework Agreement, together with the other Transaction Agreements, constitutes the entire agreement between the Parties and supersedes all prior oral and written negotiations, communications, discussions, and correspondence pertaining to the subject matter of the Transaction Agreements.  

(d)Headings, “including.”  The article and section headings and any table of contents in any Transaction Agreement are for reference and convenience only and will not be considered in the interpretation of any of the Transaction Agreements.  The term “including” means by way of example and not of limitation. 

(e)Order of Precedence.  If there is a conflict between this Framework Agreement and any other Transaction Agreement, this Framework Agreement will control unless the conflicting provision of the other Transaction Agreement specifically references the provision of this Framework Agreement to be superseded.

(f)Amendments and Waivers.  The Transaction Agreements may only be amended or modified (including any waiver of or exception to any obligation or covenant under a Transaction Agreement) by an instrument in writing signed by each Party’s President or Chief Executive Officer.

(g)Binding Effect.  The Transaction Agreements will be binding upon and inure to the benefit of the Parties and their respective heirs, legal representatives, successors, and permitted assigns.

(h)Assignment. Except as provided in another Transaction Agreement, neither this Agreement nor any other Transaction Agreement may be assigned or otherwise transferred, nor may any right or obligation hereunder or under another transaction Agreement be assigned or transferred by either Party without the consent of the other Party, which may not be unreasonably withheld, conditioned or delayed. Any permitted assignee shall assume all obligations of its assignor under this Agreement. This Agreement is binding upon the permitted successors and assigns of the Parties. Any attempted assignment not in accordance with this Section 6(h) shall be void.

(i)Notices.  All notices, requests, demands, and other communications required or permitted to be given under any of the Transaction Agreements by either Party must be in writing delivered to the applicable Party at the following address:

If to Vivint Solar:

		

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VIVINT SOLAR, INC.

	
4931 North 300 West

	
Provo, Utah 84604

	
Attention:
	
Greg Butterfield, CEO 

	
E-Mail:
	
greg.butterfield@vivint.com

 

With copy to:

		
	
VIVINT SOLAR, INC.

	
4931 North 300 West

	
Provo, Utah 84604

	
Attention:
	
Shawn Lindquist, Chief Legal Officer

	
E-Mail:
	
shawn.lindquist@vivintsolar.com

 

If to Vivint:

		
	
VIVINT, INC.

	
4931 North 300 West

	
Provo, Utah 84604

	
Attention:
	
Alex Dunn, President

	
E-Mail:
	
adunn@vivint.com

 

With a copy to:

		
	
VIVINT, INC.

	
4931 North 300 West

	
Provo, Utah 84604

	
Attention:
	
Nathan Wilcox, General Counsel

	
E-Mail:
	
nwilcox@vivint.com

or to such other address as any Party may designate by written notice to the other Party.  Each notice, request, demand, or other communication will be deemed given and effective, as follows: (i) if sent by hand delivery, upon delivery; (ii) if sent by first-class U.S. Mail, postage prepaid, upon the earlier to occur of receipt or three days after deposit in the U.S. Mail; (iii) if sent by a recognized prepaid overnight courier service, one business day after the date it is given to such service; (iv) if sent by facsimile, upon receipt of confirmation of successful transmission by the facsimile machine; and (iv) if sent by email, upon acknowledgement of receipt by the recipient.

(j)Governing Law.  The interpretation and enforceability of the Transaction Agreements and the rights and liabilities of the Parties under the Transaction Agreements will be governed by the laws of the State of Utah without giving effect to any principles of conflict of laws.

(k)Jurisdiction.  Each Party hereby irrevocably submits to the personal jurisdiction of any state or federal court sitting in the State of Utah, County of Salt Lake, in any suit, action or proceeding arising out of or relating to any of the Transaction Agreements.  Each Party hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection 

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which that Party may raise now, or later have, to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum.  Each Party agrees that, to the fullest extent permitted by applicable law, a final judgment in any such suit, action, or proceeding brought in such a court will be conclusive and binding upon such Party, and may be enforced in any court of the jurisdiction in which such Party is or may be subject by a suit upon such judgment.  Each Party further agrees that personal jurisdiction over it may be effected by service of process by certified mail addressed as provided in Section 6(i), and when so made will be as if served upon it personally within the State of Utah.

(l)WAIVER OF JURY TRIAL.  EACH PARTY HEREBY WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO ANY OF THE TRANSACTION AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED BY THE TRANSACTION AGREEMENTS, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY EITHER PARTY AGAINST THE OTHER, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  EACH PARTY HEREBY AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION WILL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE PREVIOUS SENTENCE, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM, OR OTHER PROCEEDING THAT SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF ANY PORTION OF ANY TRANSACTION AGREEMENTS.  THIS WAIVER WILL APPLY TO ANY SUBSEQUENT AMENDMENT, RENEWAL, SUPPLEMENT, OR MODIFICATION TO ANY OF THE TRANSACTION AGREEMENTS.

(m)Specific Performance.  The Parties agree that irreparable damage would occur if any provision of a Transaction Agreement were not performed in accordance with the terms of the applicable agreement, and that the Parties will be entitled to seek specific performance of the terms of the Transaction Agreements, in addition to any other remedy to which they are entitled at law or in equity.

(n)Attorneys’ Fees

.  In any suit, action, counterclaim, or arbitration brought relating to any Transaction Agreement or the breach or alleged breach of a Transaction Agreement, the prevailing Party will be entitled to recover a reasonable allowance for attorneys’ fees and litigation expenses.  For purposes of this Section 6(n), “prevailing Party” will mean: (a) a prevailing Party in any litigation as determined by a court of competent jurisdiction; and (b) a Party who agrees to dismiss an action or proceeding with prejudice upon the other’s payment of the sums allegedly due or performance of convents allegedly breached.

(o)Severability.  If any provision of a Transaction Agreement is held by a court of competent jurisdiction to be invalid, unenforceable, or void, that provision will be enforced to the fullest extent permitted by applicable law, and the remainder of the applicable Transaction Agreement will remain in full force and effect.  If the time period or scope of any provision is declared by a court of competent jurisdiction to exceed the maximum time period or scope that that court deems enforceable, then that court will reduce the time period or scope to 

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the maximum time period or scope permitted by law.  If the geographic region or scope of any provision is declared by a court of competent jurisdiction to exceed the maximum geographic region or scope that that court deems enforceable, then that court will reduce the geographic region or scope to the maximum time period or scope permitted by law.

(p)Survival.  The provisions of Section 1(b), Section 3, Section 4, Section 5, and Section 6 will survive any termination or expiration of this Framework Agreement and any of the other Transaction Agreements.

(q)Counterparts.  The Transaction Agreements and any document related to the Transaction Agreements may be executed by the Parties on any number of separate counterparts, by facsimile or email, and all of those counterparts taken together will be deemed to constitute one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signatures are physically attached to the same document.  A facsimile or portable document format (“.pdf”) signature page will constitute an original for the purposes of this Section 6(p).

(r)Force Majeure. Neither Party will be in breach or default under the Transaction Documents by reason of any failure or delay in the performance of its obligations under the Transaction Documents where the failure or delay is due to any unforeseen cause beyond its control, including civil disturbances, riot, rebellion, invasion, epidemic, war, terrorism, embargo, natural disaster, acts of God, flood, fire, sabotage, other events or any other circumstances or causes beyond that Party’s control; provided, however, that the delayed Party gives the other Party prompt written notice of the failure or delay and the reason for that failure or delay and uses its reasonable efforts to avoid or limit the resulting failure or delay.  Subject to the foregoing sentence, the period of performance (including, as necessary, the term of the applicable Transaction Agreement) for the delayed obligation will be extended by the duration of the delay.  

[SIGNATURE PAGES FOLLOW]

 

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[SIGNATURE PAGES TO MASTER INTERCOMPANY FRAMEWORK AGREEMENT]

 

IN WITNESS WHEREOF, the Parties have executed this Master Intercompany Framework Agreement as of the date first written above.

VIVINT SOLAR:

 

		
	
VIVINT SOLAR, INC.,

a Delaware corporation

 

 

 

	
By:  
	
/s/ Greg Butterfield____________________

	
Name:
	
Greg Butterfield

	
Title:
	
Chief Executive Officer

 

[SIGNATURE PAGEs CONTINUE ON FOLLOWING PAGE]

 

Master Intercompany framework Agreement

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VIVINT:

 

		
	
VIVINT, INC.,

a Utah corporation

 

	
By:
	
/s/ Alex Dunn_______________________

	
Name:  
	
Alex Dunn

	
Title:
	
President

 

Master Intercompany framework Agreement

Vivint Solar, Inc. and Vivint, Inc.

 

EXHIBIT 1

DEFINITIONS 

As used in the Transaction Agreements, the following terms have the following meanings unless otherwise defined in any Transaction Agreement: 

(a)“Action” means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity.

(b)“Affiliate” of a Party means any Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, that Party. The term “control” (including the terms “controlled by” and “under common control with”) 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.

(c)“Change of Control” means with respect to a Person: (i) the sale of all or substantially all of such Person’s assets or business; (ii) a merger, reorganization or consolidation involving such Person in which the voting securities of such Person outstanding immediately prior thereto cease to represent at least fifty percent (50%) of the combined voting power of the surviving entity immediately after such merger, reorganization or consolidation; or (iii) a person or entity, or group of persons or entities, acting in concert acquire more than fifty percent (50%) of the voting equity securities or management control of such Person (other than in connection with an arrangement principally for bona fide equity financing purposes of such Person in which the Person is the surviving corporation).

(d)“Confidential Information” means all non-public information provided or made available by or on behalf of one Party to the other Party or otherwise acquired, directly or indirectly, by the Receiving Party as a result of the relationship between the Parties, whether before or after the Effective Date, in writing, orally, or by inspection of tangible objects, including any analyses, compilations, forecasts, studies, or other documents prepared by the Receiving Party or its Representatives that contain or reflect such non-public information.  Confidential Information includes the terms and existence of this Agreement, all other Transaction Agreements, all other documents or agreements entered into between the Parties relating to the Transaction Agreements, customer data, financial information, and employee data.  Confidential Information may also include information disclosed to the Disclosing Party by third Parties.  Confidential Information will not, however, include any information (other than “Personal Data,” as defined in the TSA) that the Receiving Party can demonstrate by competent evidence: (i) was publicly known or made generally available in the public domain prior to the time of disclosure by the Disclosing Party; (ii) becomes publicly known or made generally available after disclosure by the Disclosing Party to the Receiving Party through no action or inaction of the Receiving Party or any of its Affiliates or Representatives; (iii) is lawfully obtained by the Receiving Party or an Affiliate or Representative from a third party without a breach by the third party of its legal, contractual, or fiduciary obligations of confidentiality; or 

 

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(iv) is independently developed by the Receiving Party without use of or reference to the Disclosing Party’s Confidential Information, as shown by competent evidence in the Receiving Party’s possession.

(e)“Contract” means contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures and all other agreements, commitments, and legally binding arrangements, whether written or oral.

(f)“Disclosing Party” means the Party who provides (by any means) any Confidential Information to the Receiving Party.

(g)“Encumbrance” means any charge, claim, equitable interest, mortgage, lien, option (including any right to acquire, right of pre-emption or conversion), pledge, hypothecation, security interest, title retention, easement, encroachment, right of first refusal or negotiation, adverse claim or restriction of any kind, including any restriction on or transfer or other assignment, as security or otherwise, of or relating to use, quiet enjoyment, voting, transfer, receipt of income or exercise of any other attribute of ownership, or any agreement to create any of the foregoing. 

(h)“Governmental Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

(i)“Governmental Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.

(j)“Law” means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority, including the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).

(k)“Organizational Documents” means a Party’s articles or certificate of incorporation and its by-laws, regulations or similar governing instruments required by the laws of its jurisdiction of formation or organization.

(l)“Permits” means all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from Governmental Authorities.

(m)“Person” means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other entity.

(n)“Receiving Party” means the Party to whom any Confidential Information is provided (by any means) by the Disclosing Party.

 

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(o)“Representatives” means directors, officers, employees, consultants, representatives, attorneys, accountants, agents, equity holders, auditors, senior lenders, take-out lenders, and Subsidiaries.

(p)“Subsidiary” of Vivint, Vivint Solar or any other Person means any corporation, partnership, limited liability company, association, trust, unincorporated association or other legal entity of which Vivint, Vivint Solar or any such other Person, as the case may be (either alone or through or together with any other Subsidiary), (i) owns, directly or indirectly, fifty percent (50%) or more of the shares of capital stock or other equity interests that are generally entitled to vote for the election of the board of directors or other governing body of such corporation or other legal entity; or (ii) has the contractual or other power to designate a majority of the board of directors or other governing body (and, where the context permits, includes any predecessor of such an entity).

(q)“Tax” means (a) all direct and indirect statutory, governmental, federal, provincial, state, local, municipal, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, value added, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, social security, national insurance, employee-related social charges or contributions, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, contributions, rates, levies, fees, assessments or charges of any kind whatsoever, whether disputed or not, together with any interest and any penalties, additions to tax or additional amounts with respect thereto, (b) any liability for payment of amounts described in clause (a) whether as a result of transferee liability, of being a member of an affiliated, consolidated, combined, unitary or similar group for any period, or otherwise through operation of Law, and (c) any liability for the payment of amounts described in clause or (b) as a result of any tax sharing, tax indemnity or tax allocation agreement or any other express or implied agreement to indemnify any other Person.

 

 

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TRANSITION SERVICES AGREEMENT

This Transition Services Agreement (“TSA”) is made and entered into as of September 30, 2014 (the “Effective Date”), by and between VIVINT SOLAR, INC., a Delaware corporation (f/k/a V Solar Holdings, Inc.) (together with its successors and permitted assigns, “Vivint Solar”), and VIVINT, INC., a Utah corporation (together with its successors and permitted assigns “Vivint”). Each of Vivint Solar and Vivint may also be referred to herein individually as a “Party”, and collectively as the “Parties”.

RECITALS

WHEREAS, Vivint Solar and Vivint are affiliate business entities, under the common control and ownership of 313 Acquisition, LLC, a Delaware limited liability company.

WHEREAS, the Parties have been operated as an interrelated business enterprise, but are undertaking to separate their operations, this TSA sets forth the terms under which Vivint will provide certain services to Vivint Solar.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.Definitions.  Any capitalized term used but not defined in this TSA will have the meaning set forth for that term in the Master Framework Agreement which is being executed concurrently to this TSA by the Parties hereto.

2.Provision of Services; Standard of Performance.

(a)Services.  Vivint will provide (or, subject to Section 5(b), cause one or more of its Subsidiaries or third Persons to provide) to Vivint Solar the services specified in Exhibit 1 (each, a “Service” and collectively, the “Services). 

(b)Performance Standards.  Vivint will perform the Services with the same degree of care and diligence that Vivint takes in performing services for its own operations, and will give the Services at least the same priority as it accords its own operations, and in any event with no less care and diligence that Vivint performed the Services in the twelve (12) months prior to the Effective Date. Vivint will work promptly and diligently to resolve any issues that arise in systems and business processes that are shared with Vivint Solar and will not prioritize Vivint’s resolution over Vivint Solar’s resolution on any issue that affects both Parties. Vivint will work on an emergency, 24/7 basis to resolve any issues with the Services that materially impair Vivint Solar’s business. 

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(c)Transition and Migration.  Upon the termination or expiry of this TSA, the Parties will cooperate or migrate or otherwise afford Vivint Solar access to all property belonging to Vivint Solar, all work product then in progress, all materials in Vivint’s possession containing Confidential Information of Vivint Solar, and any information regarding employees, customers, or prospective customers of Vivint Solar that is acquired by Vivint in connection with the provision of Services pursuant to this TSA, including without limitation, customer and customer prospect information, sales information, and customer lists and updates (including customer names, addresses and telephone numbers) (collectively, “Vivint Solar Data”).

(d)Data Security Requirements.  At all times during the Term, Vivint will (i) host, maintain and store Vivint Solar Data in a manner consistent with its hosting, maintenance and storage of its own data of a similar nature in the twelve (12) months prior to the Effective Date and (ii) exercise the same level of care with respect to the security of the Vivint Solar Data that it applies to its own data of a similar nature, and in no event less than a reasonable standard of care. 

3.Payment.

(a)Fees.  Subject to Vivint’s performance of the Services in accordance with this TSA, Vivint Solar will pay to Vivint fees as set forth on Exhibit 1 (the “Fees”), which represents Vivint’s good faith estimate of Vivint’s full cost of providing the Services to Vivint Solar, without markup or surcharge. In the event that any of the Services are terminated, the Fees will be reduced by an amount that is agreed upon in good faith by both Parties to represent the proportion of Vivint’s cost of providing the terminated Service to Vivint Solar.

(b)Invoices.  Vivint will issue invoices for Services no later than 15 days after the last day of each calendar month during the term of this TSA for the Services provided by Vivint to Vivint Solar for that calendar month. Vivint Solar will pay invoiced Fees within 30 days of the invoice date by wire transfer to Vivint at an account provided by Vivint to Vivint Solar. Vivint Solar may, in good faith, dispute an invoice by providing Vivint with written notice identifying the basis for such dispute, and the Parties shall work in good faith to promptly resolve any dispute prior to the payment date; provided, however, if a dispute regarding amounts set forth in an invoice is ongoing, Vivint Solar shall nevertheless pay such disputed amounts by the payment date.  

(c)Taxes.  Unless explicitly stated otherwise, the Fees are exclusive of all U.S. federal, state, or local or non-U.S. sales, use, goods and services, value added or other similar Taxes or duties or other fees, however designated. If the provision of the Services or the relationship created between the Parties under this TSA gives rise to any Tax (other than a Tax based on Vivint’s income), that Tax will be the responsibility of Vivint Solar, unless explicitly stated otherwise. The Parties will cooperate with each other in order to minimize Taxes subject to this Section 3(c) and to carry out the intent of this TSA. Each Party is responsible for its own income, franchise, business and occupation and similar Taxes. 

4.Term and Termination; Reduction and Addition of Services.

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(a)Services Term. The provision of each Service will commence on the Effective Date and will continue for an initial term of six (6) months, unless earlier terminated by a Party in accordance with Section 4(b) or Section 4(c). Following the initial term, the term for each Service shall automatically renew for successive six (6) month terms, unless Vivint Solar provides Vivint with notice of its intent not to renew the Service at least sixty (60) days prior to the expiration of the current term. This TSA will terminate when all Services have expired or have been terminated.

(b)Services Termination or Reduction. Vivint Solar may terminate or reduce the scope or quantity of one or more of the Services, in whole or in part only upon Vivint’s written consent, which shall not be unreasonably withheld, conditioned or delayed. Upon termination of any Service, Vivint will no longer be obligated to provide the Service. If Vivint Solar terminates or reduces the scope or quantity of any Service under this Section 4(b), Vivint shall use commercially reasonable efforts to terminate such Service as soon as possible thereafter, but in all events, and irrespective of such termination or reduction of scope or quantity,  the Fees shall be reduced only in Vivint’s reasonable discretion and shall continue to be payable by Vivint Solar until the termination of the Term. 

(c)Termination of TSA for Material Breach. Either Party may terminate this TSA upon written notice to the other Party if the other Party materially breaches any term or condition of this TSA and fails to correct the breach within thirty (30) days following written notice specifying the breach.

(d)Effect of Termination. Upon termination or expiration of this TSA: 

(i)the Parties will cooperate to effect an orderly, efficient, effective and expeditious winding-up of the Services;

(ii)within thirty (30) days after the date of termination or expiration, each Party will return to the other Party any and all of the other Party’s materials, equipment, data (including in the case of Vivint Solar, the Vivint Solar Data), and Confidential Information, including all copies, then in such Party’s direct or indirect possession or control; and

(iii)Vivint will have no further obligation to perform any Services under this TSA.

Termination of this TSA by either Party will not act as a waiver of any breach or as a release of either Party from any liability for any breach. Termination of this TSA by a Party will be without prejudice to any other right or remedy of that Party under this TSA or applicable Law.

(e)Survival. The following Sections will survive any termination of this TSA: Section 2(d), Section 3(a) (with respect to amounts owed as of termination), Section 4(d), Section 4(e), Sections 8(a) and 8(b)(ii), Section 9, and Section 10. 

(f)Additional Services. If Vivint Solar desires to add any new service that reasonably relates to the current Services (that new service, “Additional Service”), the Parties will negotiate in good faith whether and on what terms Vivint will provide the Additional Service (and Vivint will not unreasonably withhold its agreement to provide Additional Service). 

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If the Parties agree to the terms of any Additional Service, the Parties will execute an addendum to Exhibit 1 to reflect the Additional Service. Upon execution of the addendum, the applicable Additional Service will be deemed to be “Services” for all purposes under this TSA.

5.Vivint Personnel.

(a)Personnel. Vivint will provide the Services using sufficient numbers of qualified personnel with appropriate experience and training to perform the Services, and will use commercially reasonable efforts to retain existing personnel with that experience and training or hire and train other qualified personnel to provide the Services.

(b)Subcontractors. Subject to Vivint’s obligations under Section 5(a), Vivint may use employees of Vivint or its Subsidiaries or other Affiliates or subcontractors to perform the Services. Any Subsidiaries, other Affiliates, or subcontractors used to provide Services must be bound in writing by non-use, non-disclosure, and security obligations with respect to Vivint Solar Data and Confidential Information at least as protective as those that bind Vivint under the terms of this TSA and Section 4 of the Master Framework Agreement (Confidentiality). Vivint will be responsible for any Services performed by its or its Subsidiaries’ or other Affiliates’ employees or any subcontractor and will be liable for any act or omission of any of those Persons that would be a breach of this TSA if committed by Vivint to the same extent as if Vivint were performing (or failing to perform) itself. Vivint Solar will not be responsible for any costs or expenses associated with any subcontracting by Vivint except as expressly agreed by Vivint Solar in writing Vivint’s use of any third Person to perform Services will not relieve Vivint of its obligations under this TSA. 

6.Cooperation; Access.

(a)Cooperation. The Parties will reasonably cooperate in good faith with each other in connection with the provision of the Services, including Vivint’s reasonable cooperation with Vivint Solar, to enable Vivint Solar to establish its own infrastructure to perform the Services independently of Vivint as soon as practicable after the Closing Date.

(b)Access. Each Party will make reasonably available during regular business hours (or otherwise upon reasonable prior written notice by the other Party) to the other Party or its Representatives all: (a) personnel designated by such Party to perform obligations on its behalf under this TSA; (b) books and records maintained by such Party in connection with this TSA and other information or materials reasonably requested by the other Party for the purpose of exercising general oversight and monitoring of its rights under this TSA; and (c) records that such Party has prepared or maintained in performing its obligations under this TSA. 

(c)Fee Audit. Vivint agrees that Vivint Solar’s access rights in subsection (b) above will permit Vivint Solar to verify that the Fees charged by Vivint in Section 3(a) hereunder represent Vivint’s good faith estimate of Vivint’s full cost of providing the Services to Vivint Solar, without markup or surcharge. In the event that an inspection of such costs by Vivint Solar reveals that the Fees charged by Vivint exceed such good faith estimate: (a) Vivint shall refund to Vivint Solar any Fees for Services paid in excess of such good faith estimate; and (b) 

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Vivint Solar will have the right to set off any prior excess payment of Fees from future payment of Fees where no refund has been provided.

(d)Policy Compliance. Without limiting any of either Party’s other obligations under this TSA, for any work performed on the other Party’s premises, each Party will comply with the security, confidentiality, safety and health policies of the other Party. Each Party will take commercially reasonable precautions to prevent, and will be responsible for, any injury to any Persons (including employees of the other Party) or damage to property (including the other Party’s property) arising from or relating to such Party’s performance its obligations under this TSA or the use by either Party of any of the other Party’s equipment, tools, facility or other property.

(e)Conflicting Obligations. During the term of this TSA, Vivint will not accept work or enter into any agreement that would (or would reasonably be expected to) interfere with Vivint’s ability to perform the Services in accordance with this TSA. Vivint represents and warrants that, as of the Effective Date, there is no other existing agreement or obligation on Vivint’s part that would (or would reasonably be expected to) interfere with Vivint’s ability to perform the Services in accordance with this TSA.

7.Management Process.

(a)Transition Managers. In order to facilitate the general intent and the terms of this TSA, each of the Parties has designated the individual(s) below as transition manager (each, a “Transition Manager”) to coordinate and manage the Services under this TSA and to serve as the principal contact in connection with the Services:

	
For Vivint Solar:
	
Paul Dickson (Operations)

	

	
Dwain Kinghorn (IT)

 

	
For Vivint: 
	
David Bywater

Todd Thompson

 

The Transition Managers must meet at least on a monthly basis or as otherwise determined by the Transition Managers.

(b)Dispute Resolution. If a dispute arises regarding the interpretation or execution of this TSA, the Transition Managers will negotiate in good faith and attempt to resolve that dispute. If the Transition Managers are unable to resolve a dispute within five business days, then the Parties will refer the dispute to an executive of each of Vivint Solar and Vivint. If the executives are unable to resolve a dispute within  two weeks, then (and only then) either Party may pursue legal recourse pursuant to the terms of the Master Framework Agreement. Each Party may change the designation of its Transition Managers upon written notice to the other Party. 

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(c)Periodic Meeting. The Transition Managers and each Party’s relevant function leads will meet as often, and in no event less than every quarter, to review Vivint’s performance of the Services by function and to verify the Fees invoiced by Vivint.

8.Intellectual Property Ownership; Licensing.

(a)Intellectual Property Ownership.  Subject to Section 8(b), each Party will retain all rights in and to its patents, patent applications, patent disclosures, inventions and improvements (whether patentable or not), copyrights and copyrightable works (including computer programs) and registrations and applications therefor, including any software, firmware, or source code, trade secrets, know-how, database rights, drawings and all other forms of intellectual property (other than trademarks) (collectively, “Intellectual Property”) created, developed or conceived prior to the Effective Date or outside the performance of Services and, in each case, without use of or access to any Confidential Information of the other Party.  To the extent Vivint creates any updates, derivative works, changes or modifications of any Intellectual Property owned by Vivint Solar or Intellectual Property incorporating any Vivint Solar Confidential Information in performance of the Services, such updates, derivative works, changes, modifications or Intellectual Property (“Vivint Solar Work Product”) will be owned solely by Vivint Solar (except to any portion thereof that incorporates any Intellectual Property or Confidential Information of Vivint, which portion, if any, shall continue to be owned solely by Vivint), and Vivint hereby irrevocably assigns to Vivint Solar all right, title, and interest in and to Vivint Solar Work Product, including all Intellectual Property therein to the extent set forth, and subject to the limitations of this Section 8(a).  All other work product created by Vivint in performance of the Services (“Vivint Work Product”) and all Intellectual Property therein will be owned solely by Vivint. 

(b)Licenses. 

(i)Each Party, on behalf of itself and its Affiliates (other than the other Party and its Subsidiaries), hereby grants to the other Party and its Subsidiaries a limited, non-exclusive, non-assignable, non-transferable, non-sublicensable, fully paid-up, royalty-free, worldwide right and license to use any of its Intellectual Property that is incorporated in any materials provided to the other Party or is used by the other Party in actions taken under this Agreement solely during the Term and solely for the purpose of, and to the extent necessary for, performing or receiving Services under this TSA. 

(ii)Vivint, on behalf of itself and its Affiliates (other than Vivint Solar), hereby grants, to Vivint Solar and its Subsidiaries, a worldwide, non-exclusive, perpetual, irrevocable, fully-paid, royalty-free, transferable (as set forth below), and sublicenseable (as set forth below) right and license to exploit in Vivint Solar’s and its Subsidiaries’ internal business operations: (a) the Vivint Work Product; and (b) the proprietary software applications known as (i) “Customer Management System (CMS)”, (ii) “Digital Marketing Platform (DMP)”, and (iii) “Personal Door Assistant (PDA)”, together with all related source code, object code, application programing interfaces (APIs), databases, background systems and processes, and all documentation for such applications, in each case, that are owned by Vivint or the above Affiliates (“Licensed Vivint Software”).  Vivint will provide or make available to Vivint Solar complete and accurate copies of the Licensed Vivint Software (as such items exist as of the 

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Effective Date, and after material changes are made thereto) promptly following Vivint Solar’s request. During the term of this TSA.

(c)Third Person IP. Vivint will notify Vivint Solar if the provision of any Service requires the use or licensing of Intellectual Property (other than patents) owned or controlled by a third Person (other than Vivint’s Subsidiaries) (“Third Person IP”). Upon receipt of such notification, Vivint Solar may, in its discretion: (i) terminate the Service that requires such Third Person IP; or (ii) instruct Vivint to use commercially reasonable efforts to obtain any necessary right or consent from any such third Person to provide the Services and Vivint Solar will reimburse Vivint for the proportional amount paid to the third Person to obtain those rights or consents (and amounts paid to the third Person for related support, if any). Vivint will provide Vivint Solar reasonable advance notice of additional expenses to be incurred by Vivint for obtaining additional rights or consents under this Section 8(c). For clarity, Vivint is not required to secure, on behalf of itself or Vivint Solar, any rights to any Third Party IP for use by Vivint Solar following the termination or expiry of the applicable Services or this TSA. Vivint Solar covenants to comply with and cause its employees and agents to comply with the terms of any license for any Third Person IP that have previously been provided to Vivint Solar in writing.

9.Indemnification; Limitation of Liability; Other.

(a)Indemnification by Vivint

. Except to the extent directly caused by the negligence or willful misconduct of Vivint Solar, Vivint hereby agrees to defend, pay, indemnify, and hold Vivint Solar and its Affiliates (other than Vivint and all direct and indirect subsidiaries of APX Parent Holdco, Inc.) harmless from and against any and all third party claims, demands, proceedings, judgments, and other liabilities of every kind, and all reasonable expenses incurred in investigation and resisting the same (including reasonable attorneys’ fees), resulting from or in connection with: (i) the gross negligence or willful misconduct of Vivint, Vivint’s Representatives or Subsidiaries, or any third Person performing Services under this TSA; (ii) a breach by Vivint of any representation or material obligation of this TSA; or (iii) the failure by Vivint to comply with its notification obligations to any Vivint employee, including payment of wages, provision of benefits, and payment of employment Taxes. Vivint’s indemnification liability under the preceding subsections (ii) and (iii) will be offset by (and Vivint Solar agrees to use commercially reasonable efforts to pursue): (1) the proceeds of any applicable insurance policies; and (2) any indemnification amounts or other recovery available under any applicable agreement between Vivint Solar or its Subsidiaries and a third Person (including any supplier of Vivint Solar or its Subsidiaries).

(b)Indemnification by Vivint Solar. Except to the extent directly caused by the negligence or willful misconduct of Vivint, Vivint Solar hereby agrees to defend, pay, indemnify, and hold Vivint (and its Affiliates, other than the Vivint Solar and all direct and indirect subsidiaries of the Vivint Solar) harmless from and against any and all third party claims, demands, proceedings, judgments, and other liabilities of every kind, and all reasonable expenses incurred in investigation and resisting the same (including reasonable attorneys’ fees), resulting from or in connection with: (i) the gross negligence or willful misconduct of Vivint Solar; (ii) a breach by Vivint Solar of any representation or material obligation of this TSA; or (iii) the failure by Vivint Solar to comply with its obligations to any Vivint Solar employee, including payment of wages, provision of benefits, and payment of employment Taxes. In 

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addition, Vivint Solar’s indemnification liability under the preceding subsections (ii) and (iii) will be offset by (and Vivint agrees to use commercially reasonable efforts to pursue): (1) the proceeds of any applicable insurance policies; and (2) any indemnification amounts or other recovery available under any applicable agreement between Vivint or its Subsidiaries and a third Person (including any supplier of Vivint or its Subsidiaries).

(c)Indemnification Process. If either Party seeks indemnification under this Section 9, then that Party will promptly notify the indemnifying Party in writing of the Action for which indemnification is sought, but the failure to give notice will not relieve the indemnifying Party of its obligations under this TSA except to the extent that the indemnifying Party was actually and materially prejudiced by that failure. The indemnifying party will have the right to control the defense and settlement of the Action, but the indemnified Party may, at its option and expense, participate and appear on an equal footing with the indemnifying Party. The indemnifying Party may not settle the Action without the prior written approval of the indemnified Party, which approval will not be unreasonably withheld, delayed, or conditioned.

(d)Limitation of Liability. Except for (i) any breach by a Party of Section 4 of the Master Framework Agreement (Confidentiality) or Section 2(d) of this TSA and (ii) liability arising from the gross negligence or willful misconduct of a Party (including liability arising from damage to personal property or the death or injury of any Person caused by the gross negligence or willful misconduct of a Party), neither Party will have any liability to the other Party under this TSA for compensatory, punitive, special, incidental or consequential damages (including loss of profits), regardless of the circumstances under which those damages arose, even if advised of the possibility of those damages. Except for: (i) any breach by a Party of the Section 4 of the Master Framework Agreement (Confidentiality) or Section 2(d) of this TSA; (ii) each Party’s obligation to indemnify the other in accordance with this Section 9 ; and (iii) and liability arising from the gross negligence or willful misconduct of a Party (including liability arising from damage to personal property or the death or injury of any Person caused by the gross negligence or willful misconduct of a Party), the maximum liability of either Party under this TSA, including with respect to the performance or breach of this TSA, whether in contract, in tort (including negligence and strict liability) or otherwise, will not exceed greater of $2,500,000 or the aggregate amount of all Fees paid under this TSA.

10.Master Framework Agreement. This TSA is governed by the Master Framework Agreement, including the provisions of Sections 4 (Confidentiality) and 6 (Miscellaneous) of the Master Framework Agreement.

11.Assignment; Change of Control. Except as provided in this Section 11, this TSA may not be assigned or otherwise transferred, nor may any right or obligation hereunder be assigned or transferred, by either Party without the consent of the other Party, which may not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, either Party may, without the other Party’s consent, assign this TSA and its rights and obligations hereunder in whole or in part to (i) an Affiliate or (ii) in connection with a Change of Control; provided, however, that Vivint Solar must notify Vivint at least twenty (20) days before completion of any such Change of Control, and Vivint shall have the right (in its discretion), at any time after receipt of such notice, if Vivint Solar undergoes a Change of Control to the benefit of a Person and Vivint reasonably determines that the acquiring party is a competitor or an Affiliate of a 

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competitor of Vivint, to elect any one or more of the following options: (i) require Vivint Solar, including its acquiring party, to adopt reasonable procedures to be agreed upon in writing with Vivint to prevent the disclosure of all Confidential Information of Vivint and its Affiliates; or (ii) to terminate this TSA in its entirety, provided that Vivint shall give sixty (60) days prior written notice before terminating any non-information technology Services, and one hundred twenty (120) days prior written notice before terminating any information technology Services.  Any permitted assignee shall assume all obligations of its assignor under this TSA. This TSA is binding upon the permitted successors and assigns of the Parties. Any attempted assignment not in accordance with this Section 11 shall be void.  For purposes of this Section 11, “Change of Control” means with respect to a Person, (i) the sale of all or substantially all of such Person’s assets or business; (ii) a merger, reorganization or consolidation involving such Person in which the voting securities of such Person outstanding immediately prior thereto cease to represent at least fifty percent (50%) of the combined voting power of the surviving entity immediately after such merger, reorganization or consolidation; or (iii) a person or entity, or group of persons or entities, acting in concert acquire more than fifty percent (50%) of the voting equity securities or management control of such Person (other than in connection with an arrangement principally for bona fide equity financing purposes of such Person in which the Person is the surviving corporation).

 [SIGNATURE PAGES FOLLOW]

 

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[SIGNATURE PAGES TO TRANSITION SERVICES AGREEMENT]

IN WITNESS WHEREOF, the Parties have executed this Transition Services Agreement as of the date first written above.

VIVINT SOLAR:

 

		
	
VIVINT SOLAR, INC.,

a Delaware corporation

 

 

	
By:
	
/s/ Greg Butterfield

	
Name:
	
Greg Butterfield

	
Title:
	
Chief Executive Officer

 

[SIGNATURE PAGEs CONTINUE ON FOLLOWING PAGE]

 

 

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VIVINT:

 

		
	
VIVINT, INC.,

a Utah corporation

 

 

	
By:
	
/s/ Alex Dunn

	
Name:
	
Alex Dunn

	
Title:
	
President

 

 

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EXHIBIT 1

Services

 

	
1.
	
Home Damage Services: Vivint will:

	
a.
	
exclusively receive inbound phone calls and emails from Vivint Solar regarding the provision of Home Damage Services.

	
b.
	
coordinate with local contractors and Vivint employees to fix home damage claims from Vivint Solar customers in a timely manner.

	
2.
	
Fleet Administration Services: Vivint will:

	
a.
	
exclusively coordinate with  local offices where Vivint Solar operates in order to ensure Vivint Solar’s compliance with Department of Transportation requirements.

	
b.
	
coordinate with the Vivint Solar fleet operator to purchase vehicles for Vivint Solar offices, 

	
c.
	
monitor the Gas Cards/Mileage of Vivint Solar’s Fleet

	
d.
	
coordinate with local repair shops to ensure that Vivint Solar vehicles are maintained.

	
e.
	
administer claims and repairs for Vivint Solar vehicle collisions and other damage.

	
f.
	
coordinate with the Vivint Solar local drivers to process any tickets that are issues.

	
g.
	
coordinate with Vivint Solar’s HR department to ensure that employees hired by Vivint Solar are qualified to operate Vivint Solar vehicles and to run background check on drivers hired by Vivint Solar.

	
h.
	
ensure that all vehicles in the Vivint Solar fleet are marked with the appropriate branding, wraps, Department of Transportation license plates and other accessories.

	
3.
	
Mailing and Shipping Services: 

	
a.
	
Vivint will handle incoming mail and delivers mail to Vivint Solar employees.

	
b.
	
Vivint Solar employees can obtain office supplies from Vivint.

	
c.
	
Vivint will handle Vivint Solar shipping needs for mail and small parcel.

	
d.
	
For three years following the termination or expiration of this TSA, Vivint shall forward all mail addressed to Vivint Solar or a Vivint Solar employee to Vivint Solar.

	
4.
	
Cafeteria Services:

	
a.
	
Vivint will ensure the cafeteria service provider prepares meals for Vivint Solar employees.

	
b.
	
Vivint will provide access to dining hall for Vivint Solar employees, and provide cleaning, dishwashing and all other dining hall support and maintenance services.

	
c.
	
Vivint will ensure the cafeteria service provider caters special events upon request. 

	
5.
	
Telecommunications and Internet Services: Vivint will allow Vivint Solar to use its telephone, Internet, WiFi and other telecommunication services providers in the same manner as provided prior to the Closing Date.

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6.
	
Technology Hardware Services

	
a.
	
Vivint will accept and process orders for hardware procurement from Vivint Solar and manage all deliveries of hardware to Vivint Solar. Vivint will administer and process all returns to hardware on behalf of Vivint Solar and provide Vivint Solar with all refunds and rebates received from such returns.

	
b.
	
Vivint will provide industry standard hardware technical support to Vivint Solar regarding hardware that Vivint procures on Vivint Solar’s behalf.

	
7.
	
Shared Third Party Software: Vivint will provide Vivint Solar with access to and use of the third party software and services listed below (“Shared Third Party Software”). Upon the Closing Date, Vivint Solar will have the number of license-seats to the Shared Third Party Software that it used immediately before the Closing Date. At Vivint Solar’s request, Vivint will use commercially reasonable efforts to increase or decrease the license-seats to the Shared Third Party Software available to Vivint Solar. Where applicable, Vivint will host Vivint Solar’s usage of the Shared Third Party Software in a separate image and implement Vivint Solar’s independent changes to the Shared Third Party Software. Vivint will provide training sessions to Vivint Solar prior to all new feature rollouts of the Shared Third Party Software. Vivint will ensure that all updates, upgrades, improvements, bug fixes, or other distributions related to the Shared Third Party Software it receives are made available to Vivint Solar within a commercially reasonable period. Upon termination of this Service, Vivint Solar shall acquire and assume responsibility for all seat or other licenses to the Shared Third Part Software used by it or purchased on Vivint Solar’s behalf. The Shared Third Party Software consists of the following:

	
a.
	
Great Plains

	
b.
	
Workday

	
c.
	
Open Hire

	
d.
	
MyClearBenefits

	
e.
	
Salesforce

	
f.
	
Zuora

	
g.
	
Coupa

	
h.
	
AtTask

	
i.
	
Click

	
j.
	
Eloqua

	
k.
	
Concur

	
l.
	
Melissa

	
m.
	
Five9

	
n.
	
Optimizely

	
o.
	
Cornerstone

	
p.
	
Microsoft

	
8.
	
Licensed Vivint Software: Vivint will host Vivint Solar’s instance of the Licensed Vivint Software and allow Vivint Solar employees to access the Licensed Vivint Software subject to the 

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license set out in Section 8(b)(ii) of this TSA. Vivint will grant certain employees of Vivint Solar administration rights over the Vivint Solar’s instance of Licensed Vivint Software. Vivint will promptly upload any materials provided by Vivint Solar to Vivint Solar’s Licensed Vivint Software instance. Vivint will ensure that all updates, upgrades, improvements, bug fixes, or other distributions related to the Licensed Vivint Software it receives are made available to Vivint Solar within a commercially reasonable period. The Licensed Vivint Software consists of the following:

	
a.
	
Customer Management System (CMS) 

	
b.
	
Digital Marketing Platform (DMP)

	
c.
	
Personal Door Assistant (PDA)

	
9.
	
Training Services: Vivint will provide training curricula for in-common training and shared access to training facilities to Vivint Solar employees.

	
10.
	
Medical, Dental, HAS, Other Benefits Services:

	
a.
	
Vivint will be responsible for managing billing, payments, enrollment adds and drops, and any other benefits administration duties required for HSA, Medical, Dental, STD/LTD, and Life insurance on behalf of Vivint Solar Employees.

	
b.
	
Vivint will be responsible for sending all email communications required regarding benefits (enrollment, open enrollment, benefit changes, etc.) to employees of Vivint Solar, as directed by Vivint Solar and respond to all questions related to current benefits from employees of Vivint Solar. 

	
c.
	
Vivint will continue all COBRA benefits administration until such time as Vivint Solar implements an independent plan.

	
d.
	
Vivint will manage in good faith the relationship with the benefits broker on behalf of Vivint Solar. 

	
e.
	
The Parties will work together in good faith to resolve any disputes that arise or result from a Vivint Solar employee’s enrollment into a Vivint-administered benefits plan.

	
f.
	
Following termination of this schedule or the Transition Services Agreement for any reason, Vivint will use commercially reasonable efforts to administer and finally process any claims that were submitted by Vivint Solar employees through the Benefits Services prior to termination.

	
11.
	
401(k) Services: Vivint will allow Vivint Solar employees to continue to use and access Vivint’s 401k administration plan.

 

Fees:The Fees shall be a monthly payment of $313,000. The Parties agree to meet periodically as reasonably needed to discuss adjustments to the Fees if either Party believes such Fees no longer represents Vivint’s good faith estimate of Vivint’s full cost of providing the Services to Vivint Solar, without markup or surcharge.

 

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