Document:

Exhibit 10.1

 

WARREN RESOURCES, INC.

 

FIRST AMENDED AND RESTATED EXECUTIVE SEVERANCE PLAN

 

WARREN RESOURCES, INC., a Maryland corporation (the “Company”), originally adopted for its Eligible Executives an Executive Severance Plan (the “Original Plan”) effective as of April 13, 2015.  In accordance with the terms of the Original Plan, this First Amended and Restated Executive Severance Plan (the “Plan”) is being adopted as an amendment and restatement of the Original Plan, effective December 4, 2015 (the “Effective Date”) in accordance with the terms and conditions contained herein.

 

SECTION ONE
  PURPOSE OF PLAN

 

The Compensation Committee of the Board of Directors of the Company has adopted this Plan to provide assurances of specified severance benefits to Eligible Executives upon certain terminations of employment and to provide specified retention incentives to Eligible Executives upon a Change of Control. The Company believes that the severance benefits set forth in this Plan will aid the Company in attracting and retaining highly qualified individuals. In addition, the Company believes that the retention incentives in this Plan will help (a) assure that the Company will have continued dedication and objectivity from its employees notwithstanding the possibility, threat or occurrence of a Change of Control and (b) provide the employees with an incentive to continue their employment and to motivate executives to maximize the value of the Company upon a Change of Control for the benefit of its stockholders.

 

SECTION TWO
  PRIOR SEVERANCE ARRANGEMENTS

 

As of the Effective Date, the Plan replaces any and all severance pay plans, policies, practices, arrangements or programs, written or unwritten, that the Employer may have had in effect for its Eligible Executives from time to time prior to the Effective Date. Any Eligible Executive of the Employer whose employment is terminated on or after the Effective Date shall not be entitled to any severance benefits other than those set forth herein.

 

SECTION THREE
  DEFINITIONS

 

As used in the Plan:

 

3.1                               “Base Pay” shall mean the Eligible Executive’s regular gross salary for a normal workweek before any deductions, exclusions or any deferrals or contributions under any Company plan or program, but excluding bonuses, incentive compensation, employee benefits or any other non-salary form of compensation, being received by an Eligible Executive immediately prior to Termination of Employment.

 

3.2                               “Cause” shall mean (i) the willful breach or habitual neglect of assigned duties related to the Company, including compliance with Company policies; (ii) conviction (including any plea of nolo contendere) of the Eligible Executive of any felony or crime involving dishonesty or moral turpitude; (iii) any act of personal dishonesty knowingly taken by the Eligible Executive in connection with his responsibilities as an employee and intended to result in personal enrichment of the Eligible Executive or any other person; (iv) bad faith conduct that is materially detrimental to the Company; (v) inability of the Eligible Executive to perform the executive’s duties due to alcohol or illegal drug use; (vi) the Eligible Executive’s failure to comply with any legal written directive of the Board of Directors of the Company; (vii) any act or omission of the Eligible Executive which is of substantial detriment to the Company because of the Eligible Executive’s intentional failure to comply with any statute, rule or regulation, except any act or omission believed by the Eligible Executive in good faith to have been in or not opposed to the best interest of the Company (without intent of the Eligible Executive to gain, directly or indirectly, a profit to which the Eligible Executive was not legally entitled) and except that Cause shall not mean bad judgment or negligence other than habitual neglect of duty; or (viii) any other act or failure to act or other conduct which is

 

 

determined by the Plan Administrator, in its sole discretion, to be demonstrably and materially injurious to the Employer, monetarily or otherwise.

 

3.3                               “Change of Control” shall mean the occurrence of any of the following events:

 

(a)                                 an acquisition by any Entity of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control:  (i) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege where the security being so converted was not acquired directly from the Company by the party exercising the conversion privilege, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Related Company, or (iv) any acquisition by any Entity pursuant to a transaction that meets the conditions of clauses (i), (ii) and (iii) set forth in the definition of Company Transaction; or

 

(b)                                 a change in the composition of the Board of Directors of the Company during any two-year period such that the individuals who, as of the beginning of such two-year period, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that for purposes of this definition, any individual who becomes a member of the Board subsequent to the beginning of the two-year period, whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; and provided further, however, that any such individual whose initial assumption of office occurs as a result of or in connection with an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of an Entity other than the Board shall not be considered a member of the Incumbent Board; or

 

(c)                                  the date a majority of members of the corporation’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the corporation’s board of directors before the date of the appointment or election, or

 

(d)                                 the consummation of a Company Transaction.

 

3.4                               “Change of Control Period” shall mean the applicable period immediately following a Change of Control as set forth on Exhibit A.

 

3.5                               “Company Transaction” means consummation of:

 

(a)                                 a merger or consolidation of the Company with or into any other company; or

 

(b)                                 a statutory share exchange pursuant to which all of the Company’s outstanding shares are acquired or a sale in one transaction or a series of transactions undertaken with a common purpose of acquiring all of the Company’s outstanding voting securities; or

 

(c)                                  a sale, lease, exchange or other transfer in one transaction or a series of related transactions undertaken with a common purpose of acquiring all or substantially all of the Company’s assets, excluding, however, in each case, any such transaction pursuant to which: (i) the Entities who are the beneficial owners of the Outstanding Company Voting Securities immediately prior to such transaction will beneficially own, directly or indirectly, at least 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Successor Company in substantially the same proportions as their ownership, immediately prior to such transaction, of the Outstanding Company Voting Securities; (ii) no Entity (other than the Company, any employee benefit plan (or related trust) of the Company, a Related Company or a Successor Company) will beneficially own, directly or indirectly, more than 50% of the combined voting power of the outstanding voting securities of the Successor Company entitled to vote generally in the election of directors

 

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unless such ownership resulted solely from ownership of securities of the Company prior to such transaction; and (iii) individuals who were members of the Incumbent Board will immediately after the consummation of such transaction constitute at least a majority of the members of the board of directors of the Successor Company.

 

Where a series of transactions undertaken with a common purpose is deemed to be a Company Transaction, the date of such Company Transaction shall be the date on which the last of such transactions is consummated.

 

3.6                               “Company” shall mean Warren Resources, Inc., a Maryland corporation, and any successor by merger, acquisition, consolidation or otherwise that assumes the obligations of the Company under the Plan.

 

3.7                               “Disability” shall mean an Eligible Executive’s inability to perform the duties of his or her position for a period or periods aggregating ninety (90) days in any period of one hundred eighty (180) consecutive days as a result of physical or mental illness, loss of legal capacity or any other cause beyond the Eligible Executive’s control.

 

3.8                               “Eligible Executive” shall mean an individual (i) whose job classification is set forth on Exhibit A and (ii) is designated as a “Tier 1” or “Tier 2” participant by the Compensation Committee of the Board of Directors of the Company.

 

3.9                               “Employer” shall mean the Company and any direct or indirect Subsidiary of the Company.

 

3.10                        “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time. References to any Section of ERISA shall include any successor provision thereto.

 

3.11                        “Good Reason” shall have the meaning ascribed thereto (or to any similar term such as “Resignation for Good Reason”), if any, set forth in the Eligible Executive’s employment agreement or offer letter with any Employer which is in effect as of the time of the Eligible Executive’s Termination of Employment.  In the event an Eligible Executive is not party to an employment agreement or offer letter which defines “Good Reason”, such Participant shall not be eligible to resign for “Good Reason” and receive benefits pursuant to the Plan.

 

3.12                        “Incentive Bonus” shall mean (i) with respect to the current year, the dollar amount of the annual incentive payment that would be payable to the Eligible Executive if he or she had remained employed with the Company at the date of payment under the Company’s short-term incentive program applicable to the Eligible Executive, or (ii) with respect to prior years, the dollar amount of the annual incentive actually paid or payable to the Eligible Executive for such year.

 

3.13                        “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. References to any Section of the Internal Revenue Code shall include any successor provision thereto.

 

3.14                        “Participant” shall mean an Eligible Executive who is or becomes a Participant in the Plan as provided in Section Four.

 

3.15                        “Plan” shall mean the Executive Severance Plan as set forth in this document, and as hereafter amended from time to time.

 

3.16                        “Plan Year” shall mean the twelve (12)-month period ending on December 31.

 

3.17                        “Plan Administrator” shall mean the person, persons or entity administering the Plan in accordance with the provisions of Section Seven hereof. The Plan Administrator shall be the “named fiduciary”, as referred to in Section 402(a) of ERISA, with respect to the management, operation and administration of the Plan.

 

3.18                        “Release Form” shall mean the Release Form in substantially the form attached as Appendix A.

 

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3.19                        “Severance Pay” shall mean the compensation the Eligible Executive will be provided based on the Eligible Executive’s job classification at his Termination of Employment and the particular category of his Termination of Employment, each as set forth on Exhibit A and as subject to reduction pursuant to Section 15.

 

3.20                        “Subsidiary” shall mean an entity in which the Company directly or indirectly beneficially owns 50% or more of the outstanding Voting Stock.

 

3.21                        “Termination of Employment” shall mean an involuntary termination of employment from the Employer which results from an affirmative discharge from employment (a) due to the Eligible Executive’s death or Disability, (b) by the Employer other than discharge for Cause or (c) due to the Eligible Executive’s  resignation for Good Reason. An Eligible Executive shall not be deemed to have incurred a Termination of Employment by reason of the transfer of the Eligible Executive’s employment between the Company and any Subsidiary or among Subsidiaries. Notwithstanding the foregoing provisions of this Section 3.21 an Eligible Executive who, in connection a Change of Control event, is offered, on, prior to or within two weeks of closing on such Change of Control event, continued employment with the successor company (including, without limitation, a purchaser of all or any substantial part of a business unit) and is not subsequently terminated without Cause or, if applicable, resigned for Good Reason, within the time period indicated on Exhibit A after the closing of Change of Control shall not be deemed to have incurred a Termination of Employment and shall not be eligible for Severance Pay under this Plan. The Plan Administrator shall determine, in its sole discretion, whether an Eligible Executive’s termination of employment from the Employer constitutes a “Termination of Employment” and, if so, which category of “Termination of Employment (set forth in Exhibit A) the Eligible Executive experienced.

 

3.22                        “Voting Stock” shall mean securities entitled to vote generally in the election of directors.

 

3.23                        Wherever appropriate, words used in the Plan in the singular may mean the plural, the plural may mean the singular, and the masculine may mean the feminine.

 

SECTION FOUR
  ELIGIBILITY AND BENEFITS

 

An Eligible Executive who suffers a Termination of Employment shall become a Participant as of the date of his or her Termination of Employment and shall be entitled to receive the Severance Pay applicable to such Participant provided he or she executes a Release Form as provided for herein.

 

Participant’s Severance Pay shall be paid in a lump sum to the Participant within an administratively reasonable time following Termination of Employment, or where applicable, following the expiration of the revocation period provided on the Release Form, but in no event more than sixty (60) days following the date of Termination of Employment.

 

If a Participant dies following execution of the Release Form, but before receiving all or part of the Severance Pay to which he or she is entitled, the Plan Administrator shall pay such Participant’s Severance Pay to the Participant’s surviving spouse (if any) and if none to the Participant’s estate.

 

An Eligible Executive otherwise entitled to Severance Pay under this Plan shall be paid (or his estate shall be paid) such Severance Pay only if that Eligible Executive executes and files with the Plan Administrator, on or before the forty-fifth (45th) day following Termination of Employment, a fully completed Release Form, and in the case of Eligible Executives age 40 and over, does not revoke the Release Form within seven (7) days of executing the Release Form. Notwithstanding the foregoing, the prorated portion of the current year Incentive Bonus shall be paid at the time that such Incentive Bonuses are otherwise payable under the applicable Plan year.

 

SECTION FIVE
  FUNDING

 

Funding for this Plan shall come solely from the general assets of the Employer. All payments of Severance Pay with respect to a particular Participant shall be paid from the general assets of that Participant’s Employer.

 

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Neither the Employer nor the Plan Administrator shall have any obligation to establish a trust or fund for the payment of benefits under the Plan or to insure any of the benefits under the Plan. None of the officers, members of the Board of Directors, or agents of the Employer or the Plan Administrator guarantees in any manner the payment of benefits hereunder.

 

SECTION SIX
  BENEFIT CLAIMS PROCEDURE

 

6.1                               Claims for Benefits. Any claim for benefits under the Plan shall be made in writing to the Plan Administrator. If such claim for benefits is wholly or partially denied, the Plan Administrator shall, within ninety (90) days after receipt of the claim, notify the claimant of the denial of the claim. Such notice of denial (a) shall be in writing, (b) shall be written in a manner calculated to be understood by the claimant, and (c) shall contain (i) the specific reason or reasons for denial of the claim, (ii) a specific reference to the pertinent Plan provisions upon which the denial is based, (iii) a description of any additional material or information necessary to perfect the claim, along with an explanation of why such material or information is necessary, and (iv) an explanation of the claim review procedure, in accordance with the provisions of this Section Six.

 

6.2                               Request for Review of Denial. Within sixty (60) days after the receipt by the claimant of a written notice of denial of the claim, or such later time as shall be deemed reasonable taking into account the nature of the benefit subject to the claim and any other attendant circumstances, if the claimant does not agree with the denial of the claim, the claimant or his authorized representative must file a written request with the Plan Administrator that it conduct a full and fair review of the denial of the claim for benefits. In connection with any request for a review of the denial of a claim for benefits, the claimant, or his authorized representative, may review pertinent documents relating thereto and may submit issues and comments in writing to the Plan Administrator.

 

6.3                               Decision on Review of Denial. The Plan Administrator shall deliver to the claimant a written decision on the claim within sixty (60) days after the receipt of the aforesaid request for review, except that if there are special circumstances (such as the need to hold a hearing, if necessary) which require an extension of time for processing, the aforesaid sixty (60)-day period shall be extended to one hundred twenty (120) days. Such decision shall (i) be written in a manner calculated to be understood by the claimant, (ii) include the specific reason or reasons for the decision, and (iii) contain a specific reference to the pertinent Plan provisions upon which the decision is based.

 

SECTION SEVEN
  ADMINISTRATION OF THE PLAN

 

7.1                               Plan Administrator. The Plan Administrator hereunder shall be the General Counsel or other appropriate Human Resources Officer of the Company.

 

7.2                               Allocation and Delegation of Plan Administrator Responsibilities. The Plan Administrator may appoint such assistants or representatives as it deems necessary for the effective exercise of its duties in administering the Plan and may delegate to such assistants and representatives any powers and duties, both ministerial and discretionary, as it deems expedient or appropriate. The Plan Administrator also may designate any person, firm or corporation to carry out any of the other responsibilities of the Plan Administrator under the Plan. Any such allocation or designation shall be made pursuant to a written instrument executed by the Plan Administrator.

 

7.3                               Actions of Fiduciaries. The Plan Administrator may authorize or approve any action by written instrument signed by a person duly authorized to act on behalf of the Plan Administrator. Any written memorandum signed by any such duly authorized person or by any other person duly authorized by the Plan Administrator to act in respect of the subject matter of the memorandum, shall have the same force and effect as a formal resolution adopted by the Plan Administrator.

 

All acts and determinations with respect to the administration of the Plan made by the Plan Administrator and any assistants or representatives appointed by it shall be duly recorded by the Plan Administrator or by the

 

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assistant or representative appointed by it to keep such records. All records, together with such other documents as may be necessary for the administration of the Plan, shall be preserved in the custody of the Plan Administrator or the assistants or representatives appointed by it.

 

7.4                               General Administrative Powers. Except as otherwise provided herein, the Plan Administrator is authorized to take such actions as may be necessary to carry out the provisions and purposes of the Plan and shall have the authority to control and manage the operation and administration of the Plan. In order to effectuate the purposes of the Plan, the Plan Administrator shall have the discretionary authority and power to construe and interpret the Plan, to supply any omissions therein, to reconcile and correct any errors or inconsistencies, to decide any questions in the administration and application of the Plan, and to make equitable adjustments for any mistakes or errors made in the administration of the Plan. All such actions or determinations made in good faith by the Plan Administrator, and the application of rules and regulations to a particular case or issue by the Plan Administrator shall, subject to the claims procedures set forth in Section Six hereof, not be subject to review by anyone, but shall be final, binding and conclusive on all persons ever interested hereunder. In construing the Plan and in exercising its power under provisions requiring the Plan Administrator’s approval, the Plan Administrator shall attempt to ascertain the purpose of the provisions in question and when such purpose is known or reasonably ascertainable, such purpose shall be given effect to the extent feasible. In the discharge of this discretionary authority the Plan Administrator shall have all necessary powers and duties, including but not limited to the following:

 

(a)                                 to require any person to furnish such information as is reasonably necessary or appropriate for administration of the Plan as a condition to receiving benefits under the Plan;

 

(b)                                 to make such rules and regulations and prescribe the use of such forms as he shall deem necessary for the efficient administration of the Plan;

 

(c)                                  to establish or cause to be established such procedures, protocols and guidelines as he shall deem necessary to interpret the terms and conditions of the Plan;

 

(d)                                 to decide on questions concerning Plan eligibility and Termination of Employment in accordance with the terms of the Plan;

 

(e)                                  to determine the amount of benefits payable to a Participant, in accordance with the Plan, and to provide a full and fair review to any Participant whose claim for benefits has been denied in whole or in part;

 

(f)                                   to designate other persons to carry out any duty or power which would otherwise be a fiduciary responsibility of t

 

7.5                               Appointment of Professional Assistance. The Plan Administrator may engage accountants, attorneys and such other personnel as it deems necessary or advisable. The functions of any such persons engaged by the Plan Administrator shall be limited to the specific services and duties for which they are engaged, and such persons shall have no other duties, obligations or responsibilities under the Plan. Unless otherwise specifically so delegated, such persons shall exercise no discretionary authority or discretionary control respecting the management of the Plan.

 

7.6                               Discretionary Acts. Any discretionary actions of the Plan Administrator with respect to the administration of the Plan shall be made in a manner which does not discriminate in favor of stockholders, officers and highly compensated employees.

 

7.7                               Responsibility of Fiduciaries. The Plan Administrator and its assistants and representatives shall be free from all liability for their acts and conduct in the administration of the Plan except for acts of gross negligence, fraud or willful misconduct; provided, however, that the foregoing shall not relieve any of them from any responsibility or liability for any responsibility, obligation or duty that they may have pursuant to ERISA.

 

7.8                               Indemnity by Employer. In the event and to the extent not insured against by any insurance company pursuant to provisions of any applicable insurance policy, the Employer shall indemnify and hold harmless

 

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the Plan Administrator and its assistants and representatives from any and all claims, demands, suits or proceedings in connection with the Plan that may be brought by the Employer’s employees, Participants or their legal representatives, or by any other person, corporation, entity, government or agency thereof, including any amounts paid in settlement, with the approval of the Plan Administrator, and any and all other losses, damages, interest, expenses, including counsel fees approved by the Plan Administrator, and penalties, including any penalties imposed by the Secretary of Labor pursuant to Section 502(1) of ERISA relating to any breaches of fiduciary responsibility under Part 4 of Title I of ERISA, arising from any action or failure to act, except where the same is judicially determined to be due to gross negligence, fraud, or willful misconduct of such individual in connection with the Plan. The indemnification contained in this Section shall apply regardless of whether the event causing the liability arises in whole or in part from the negligence (other than judicially determined gross negligence) or other fault on the part of the individual, specifically including breaches of fiduciary responsibility under ERISA.

 

SECTION EIGHT
  ADOPTION OF PLAN BY SUBSIDIARY

 

Any Subsidiary, whether or not presently existing, may, with the approval of the Chief Executive Officer of the Company, adopt this Plan. Any Subsidiary that adopts the Plan is thereafter an Employer with respect to its employees for purposes of the Plan, and any event that causes any Employer to cease to be a Subsidiary shall not affect such Subsidiary’s adoption of this Plan or its obligations under the Plan.

 

SECTION NINE
  AMENDMENT OF THE PLAN

 

The Compensation Committee of the Board of Directors of the Company may amend the Plan at any time and in any manner with respect to all of the Employers. Any amendment to this Plan shall be effectuated by a written instrument signed by a duly authorized officer of the Company and shall be incorporated into the Plan document. Any amendment or restatement may be made retroactive if, in the judgment of the Compensation Committee of the Board of Directors of the Company, such retroactivity is necessary or advisable for any reason. Notwithstanding the foregoing, for a period of one year following a Change of Control, this Plan may not be amended in any manner adverse to any Eligible Executive.

 

SECTION TEN
  TERMINATION OF THE PLAN

 

Continuance of the Plan is not assumed as a contractual obligation of the Employer, and the Compensation Committee of the Board of Directors of the Company reserves the right to terminate the Plan at any time. Such termination may occur without consent being obtained from the Plan Administrator, Eligible Executives or any other interested person; provided however, that any termination of this Plan shall not affect the benefits payable under the Plan to any Eligible Executive who suffers a Termination of Employment prior to the termination of the Plan. The Plan shall automatically terminate upon dissolution of the Company, unless provision is specifically made by its successors, if any, for the continuation of the Plan; provided however, a merger or consolidation of the Company with or into any corporation or other legal entity shall not be deemed to be a dissolution of the Company for purposes of this Plan. Notwithstanding the foregoing, following a Change of Control, this Plan may not be terminated prior to the first anniversary of the Change of Control.

 

SECTION ELEVEN
  VESTING

 

No Eligible Executive shall have a vested right to any benefit under this Plan prior to the time a determination is made by the Plan Administrator that the particular Eligible Executive is a Participant.

 

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SECTION TWELVE
  STATUS OF EMPLOYMENT RELATIONS

 

The adoption and maintenance of the Plan shall not be deemed to constitute a contract between any Employer and its Eligible Executives or to be consideration for, or an inducement or condition of, the employment of any person. Nothing herein contained shall be deemed (i) to give to any Eligible Executive the right to be retained in the employ of the Employer; (ii) to affect the right of the Employer to discipline or discharge any Eligible Executive at any time; (iii) to give the Employer the right to require any Eligible Executive to remain in its employ; or (iv) to affect any Eligible Executive’s right to terminate his employment at any time.

 

SECTION THIRTEEN
  RESTRICTIONS ON ASSIGNMENT

 

The benefits provided hereunder are not subject in any manner to the debts or other obligations of the persons to whom they are payable. The interest of an Eligible Executive may not be sold, transferred, assigned or encumbered in any manner, either voluntarily or involuntarily, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be null and void.

 

SECTION FOURTEEN
  409A COMPLIANCE

 

To the extent applicable, this Plan shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the adoption of this Plan. It is intended that (i) each installment of any benefits payable under the Plan to the Participant be regarded as a separate “payment” for purposes of Treasury Regulations Section 1.409A-2(b)(2)(i), (ii) all payments of any such benefits under the Plan satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4) and 1.409A-1(b)(9)(iii), and (iii) any such benefits consisting of COBRA premiums also satisfy, to the greatest extent possible, the exemption from the application of Section 409A provided under Treasury Regulations Section 1.409A-1(b)(9)(v). Notwithstanding any provision of this Plan to the contrary, in the event that the Company determines that any amounts payable hereunder will cause the Participant to incur adverse tax consequences under Section 409A of the Code and related Department of Treasury guidance, to the extent permitted under Section 409A of the Code, the Company may, to the extent permitted under Section 409A of the Code (a) cooperate in good faith to adopt such amendments to this Plan and appropriate policies and procedures, including amendments and policies with retroactive effect, that it determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Plan, preserve the economic benefits of this Plan and avoid less favorable accounting or tax consequences for the Company and/or (b) take such other actions as mutually determined necessary or appropriate to exempt the amounts payable hereunder from Section 409A of the Code or to comply with the requirements of Section 409A of the Code and thereby avoid the application of adverse tax consequences under such section.  For purposes of Section 409A of the Code, to the extent applicable, to the extent that the Participant is a “specified employee” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code as of the Participant’s separation from service and to the limited extent necessary to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code, no amount which is subject to Section 409A of the Code and is payable on account of the Participant’s separation from service shall be paid to the Participant before the date (the “Delayed Payment Date”) which is the first day of the seventh month after the Participant’s separation from service or, if earlier, the date of the Participant’s death following such separation from service.  All such amounts that would, but for the immediately preceding sentence, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.  No interest will be paid by the Company with respect to any such delayed payments.  Separation from service, termination and similar phrases used in this Plan shall mean a “separation from service” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code.

 

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SECTION FIFTEEN
  SECTION 280G MATTERS

 

Anything in this Plan to the contrary notwithstanding, in the event it shall be determined that any payment or distribution in the nature of compensation (within the meaning of Code Section 280G(b)(2)) to or for the benefit of a Participant, whether paid or payable or distributed or distributable pursuant to the terms of the Plan or otherwise, but determined without regard to any reduction (if any) required under this Section 15 (the “Payment”), would be subject to the excise tax imposed by Code Section 4999, together with any interest or penalties imposed with respect to such excise tax (“Excise Tax”), then the Company shall automatically reduce (the “Reduction”) the Participant’s Payment to the minimum extent necessary to prevent the Payment (after the Reduction) from being subject to the Excise Tax, but only if, by reason of the Reduction, the after-tax benefit of the reduced Payment exceeds the after-tax benefit if such Reduction was not made. If the after-tax benefit of the reduced Payment does not exceed the after-tax benefit if the Payment is not reduced, then the Reduction shall not apply. If the Reduction is applicable, the Payment shall be reduced in such a manner that provides the Participant with the best economic benefit and, to the extent any portions of the Payment are economically equivalent with each other, each shall be reduced pro rata.  All determinations pursuant to this Section 15 shall be made by the Administrator, whose determination shall be final, binding and conclusive.

 

SECTION SIXTEEN
  APPLICABLE LAW

 

To the extent not preempted by ERISA, the Plan shall be construed, regulated, interpreted and administered under and in accordance with the laws of the State of Maryland.

 

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APPENDIX A

 

GENERAL RELEASE OF LIABILITY

 

Introduction and General Information to Employee. Signing this Release is one condition to receiving certain benefit payments under the Executive Severance Plan offered by Warren Resources, Inc. and its participating subsidiaries and affiliates (the “Company”). You should thoroughly review and understand the effect of this Release and consult with an attorney before signing it. To the extent you have any claims covered by this Release, you will be giving up potentially valuable rights by signing. You may take time to consider whether or not to sign this Release. If you sign this Release and return it to the Company you will be entitled to supplemental benefits under the Warren Resources Executive Severance Plan if you are otherwise eligible. If the signed Release is not received within the Consideration Period, or the signed Release is revoked during Revocation Period, in each case as set forth below, no supplemental benefits will be paid.

 

General Release. In exchange for receiving certain supplemental benefit payments under the Warren Resources Executive Severance Plan offered by the Company, I release (i.e., give up) all known and unknown claims that I presently have against the Company, its current or former owners, parents, subsidiaries, and affiliates, stockholders, assigns, employees, agents, directors, officers, and affiliated companies and any of their officers, directors or employees, and any of the fiduciaries of their employee benefit plans, and any related parties (Released Parties), arising from or related to my employment with the Company and the termination of that employment, except claims that the law does not permit me to waive by signing this Release. For example, I am releasing all common law contract, tort, or other claims I might have, as well as all claims I might have under the Age Discrimination in Employment Act (ADEA), the WARN Act, Title VII of the Civil Rights Act of 1964, Sections 1981 and 1983 of the Civil Rights Act of 1866, the Americans With Disabilities Act (ADA), the Employee Retirement Income Security Act of 1974 (ERISA), the Family Medical Leave Act (FMLA), and similar state or local laws.

 

Extent of Release. For the purpose of implementing a full and complete release and discharge of the Company, I expressly acknowledge that the release given in this document is intended to include in its effect, without limitation, all claims that I did not know or suspect at the time I signed this release, regardless of whether the knowledge of such claims, or the facts upon which they might be based, would materially have affected the decision to sign this release, and that the consideration given under this Release is also for the release of those claims and contemplates the extinguishment of any such claims. In furtherance of this Release, I waive any rights provided by California Civil Code Section 1542, or other similar state or federal law. Section 1542 states:

 

“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.”

 

Some of the types of claims that I am releasing, although there may be others not listed here, are claims under any applicable federal, state or local statute, ordinance, order, or law arising out of or relating to:

 

Discrimination on the basis of sex, race, color, national origin, religion, sexual orientation, disability, veteran status, or any other legally protected status;

 

Harassment, wrongful discharge, or retaliation, including retaliatory discharge, arising under state or federal law, including any worker’s compensation or whistleblower statute;

 

Any other possible restrictions on the Company’s ability to end its employees’ employment at will, including but not limited to (i) violation of public policy, (ii) breach of any express or implied covenant of the employment contract, and (iii) breach of any covenant of good faith and fair dealing;

 

Unpaid wages, including but not limited to claims for unpaid overtime, break, meal, or rest periods;

 

Amounts determined under a Company cash bonus incentive plan and equity incentive plan, including but not limited to the varying amounts at its discretion;

 

10

 

Civil claims of negligence, defamation, invasion of privacy, personal injury, fraud, misrepresentation, or infliction of emotional or mental distress; and

 

Release of Claims Under Age Discrimination in Employment Act. In consideration for receiving certain supplemental benefits from the Company, I specifically waive all existing rights and claims I may have against the Released Parties under the Age Discrimination in Employment Act, 29 USC §621 et seq., and any other applicable federal or state statute or law involving age discrimination. I acknowledge that the supplemental benefits provided in the Warren Resources Executive Severance Plan constitute independent consideration for this Release of liability and are in addition to any other payment to which I am entitled. I further acknowledge that I have been advised to consult with an attorney of my own choosing before executing this Release.

 

Exceptions to Release. The only claims that this Release does not include are claims related to:

 

The business expense reimbursement policy of the company;

 

Claims pursuant to section 502(a)(1)(B) of ERISA to recover benefits, under the terms of the employee benefit plans of the Company, as applicable to me on the date I received this Release; and

 

Claims made for work-related injuries under applicable worker’s compensation statutes.

 

Consideration Period. I am aware that I have a period of time of forty-five (45) days to consider whether to sign and return this Release as described in the introductory paragraph of this document (the “Consideration Period”). I knowingly and voluntarily waive the remainder of the Consideration Period following the date I sign this Release below. I have not been asked by the Company to sign the release before the end of the Consideration Period. The Company has not threatened to withdraw or alter the benefit payment due me before the expiration of the Consideration Period nor has the Company provided different terms to me because I have decided to sign the Release before the expiration of the Consideration Period.

 

Revocation Period. I understand that I have a seven (7) day period after signing this Release in which to revoke or rescind my Release, by informing the Company in writing of my decision to revoke, and that this Release will not be enforceable until the eighth day after I sign this Release. In the event I revoke my acceptance of this Release, the Company shall have no obligation to provide me additional severance benefits.

 

Agreement Not to Sue. I understand that following the seven (7) day revocation period this Release will be final and binding. I promise that I will not pursue any claim that I have settled by this Release. I further understand that if I pursue a claim against the Company or the parent or any affiliate of the Company, the Company may seek to offset the amount paid to me for signing this Release against any award I may obtain and the Company may be entitled to recover costs and attorney’s fees specifically authorized under applicable law.

 

Benefit Payment in the Event of Death. I understand that if I should die after the Company provides me with written notification of layoff but before I execute this Release, the minimum and supplemental benefit to which I am entitled will be paid to my surviving spouse, if I am married, or to my estate. In order to receive supplemental benefits, my surviving spouse or the executor of my estate will be required to execute a Release and return the executed Release to the Company within the applicable time period specified by the Plan Administrator in a Release provided to the surviving spouse or representative of the estate.

 

Receipt of the Warren Resources Executive Severance Plan. I have received and read a written summary of the Warren Resources Executive Severance Plan, and I understand that payments will be made according to the terms of this Plan.

 

Severability. If any provision of this Release is invalid, illegal or unenforceable, such provision shall be modified to render the same valid and enforceable or shall be severed from this Release. The validity, legality and enforceability of the remaining provisions of this Release shall not in any way be affected or impaired thereby.

 

11

 

Entire Agreement. This Release is the entire agreement related to my service with the Company and any claims or future rights that I might have with respect to the Company and the Released Parties.

 

No Modification. This Release may only be amended by a written agreement that the Company and I sign.

 

Enforceability. This Release is a legally admissible, enforceable agreement governed by Federal law and the laws of Maryland.

 

No Representations. When I decided to sign this Release, I was not relying on any representations that were not in this Release.

 

Agreement Is Knowing and Voluntary. I understand and agree that I:

 

·                                          have had a reasonable time within which to consider this Release before executing it;

 

·                                          have carefully read and fully understands all of the provisions of this Release;

 

·                                          knowingly and voluntarily agree to all of the terms set forth in this Release;

 

·                                          knowingly and voluntarily intend to be legally bound by all of the terms set forth in this Release; and

 

·                                          was advised, and hereby am advised in writing, to consider the terms of this Release and consult with an attorney of my choice prior to executing this Release.

 

	
Dated:
    	
 
    	
 
    	
Employee Signature:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Employee Name (Print):
    	
 
    

 

12

 

EXHIBIT A

 

WARREN RESOURCES, INC.

 

	
 
    	
 
    	
 
    	
 
    	
Termination of Employment
    Outside of
    Change of Control Period
    	
 
    	
Termination of Employment
    During
    Change of Control Period
    	
 
    	
Change of
    Control
    Period
    
	
Tier 1
    	
 
    	
Chief Executive Officer of the Company(1)
    	
 
    	
2X annualized Base Pay
    	
 
    	
2.5 X the sum of annualized Base Pay + average Incentive Bonus   for prior 3 years (excluding any bonus paid in 2016).
    	
 
    	
2 years
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Reimbursement for up to 9 months’ COBRA continuation coverage.
    	
 
    	
Reimbursement for up to 9 months’ COBRA continuation coverage.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tier 2
    	
 
    	
Vice Presidents and Senior Vice Presidents of the Company
    	
 
    	
1 X annualized Base Pay + prorated Incentive Bonus for current   year
    	
 
    	
2 X annualized Base Pay + average Incentive Bonus for prior 3   years + prorated Incentive Bonus for current year
    	
 
    	
2 years
    

 

(1)  Tier 1 Eligible Executive will be entitled to receive only accrued and unpaid salary and benefits, including pro rata share of annual incentive bonus, in the event that employment is terminated due to death or disability.

 

13Exhibit 10.1

 Exhibit 10.1 

AMENDED AND RESTATED PURCHASE AGREEMENT 

This AMENDED AND RESTATED PURCHASE AGREEMENT, dated as of December 9, 2015 (this “Agreement”), by and between TERRAFORM
POWER, LLC, a Delaware limited liability company (“Purchaser”), and SUNEDISON, INC., a Delaware corporation (“Seller”). 

WITNESSETH: 
 WHEREAS, on
July 20, 2015 Seller entered into an Agreement and Plan of Merger (the “Merger Agreement”) with SEV Merger Sub Inc., a Delaware corporation and indirect wholly owned subsidiary of Seller (“Merger Sub”), and
Vivint Solar, Inc., a Delaware corporation (the “Company”), pursuant to which, among other things, Merger Sub will merge with and into the Company with the Company surviving the merger as a wholly owned subsidiary of Seller (the
“Merger”); 
 WHEREAS, on July 20, 2015 Seller and Purchaser entered into a Purchase Agreement (the “Original
PSA”) pursuant to which the Seller agreed to cause the Company to sell and assign to Purchaser, and Purchaser agreed to purchase and assume from the Company, all of the equity interests in the subsidiaries of the Company set forth on
Exhibit A hereto (each, a “Purchased Subsidiary” and, collectively, the “Purchased Subsidiaries”), subject to certain agreed terms and conditions; and 

WHEREAS, Purchaser and Seller desire to amend and restate the Original PSA in its entirety. 

NOW, THEREFORE, in consideration of the foregoing and of the representations, warranties, covenants and agreements contained in this
Agreement, the parties agree as follows: 
 ARTICLE I 

PURCHASE AND SALE 

Section 1.01 Purchase and Sale of the Interests. Upon the terms and subject to the conditions set forth in this Agreement, at the
Closing, Seller shall cause the Company or its subsidiary(ies), as applicable, to sell, assign, transfer, convey and deliver to Purchaser, and Purchaser shall purchase, acquire and accept from the Company or its subsidiary(ies), as applicable, all
of the equity interests of the Purchased Subsidiaries (the “Purchased Interests”), provided, that, as a condition to Purchaser purchasing Vivint Solar Fund XVIII Manager, LLC and any other Purchased Interest associated with the
“Fund XVIII – BAML 2” tax equity fund with BAL Investments & Advisory, Inc., such tax equity fund shall either (x) have been bifurcated so that, as of the Closing Date, Vivint Solar Fund XVIII Manager indirectly owns an
interest in all of the installed residential PV systems with respect to such fund, and another entity not being purchased by Purchaser on the Closing Date will have been established to finance the remainder of the BAL Investments &
Advisory, Inc.’s commitments not invested as of the Closing Date or (y) any outstanding commitments to contribute capital by Vivint Solar Fund XVIII Manager, LLC or its affiliates with respect to the “Fund XVIII – BAML 2”
shall have been terminated. 
 Section 1.02 Purchase Price. The aggregate purchase price for the Purchased Interests (as
adjusted as set forth herein, the “Purchase Price”) shall be an amount equal to the product of (i) the lesser of (x) the actual installed capacity (in DC megawatts (“MW”)) of residential solar systems owned,
directly or indirectly, by the Purchased Subsidiaries on the Closing Date, and (y) 523 MW, multiplied by (ii) one million seven hundred thousand dollars ($1,700,000). For avoidance of doubt, the Purchase Price shall not be reduced for any Purchased
Subsidiaries that are deemed not to be sold, conveyed, transferred, assigned or delivered pursuant to Section 1.05. 

Section 1.03 Purchase Price Adjustment. At its option, Purchaser may choose to assume (or have a subsidiary of Purchaser assume)
the obligations under that certain Loan Agreement, dated as of September 12, 2014 (as amended, restated, amended and restated, supplemented or otherwise modified, the “Aggregation Facility”) among Vivint Solar Financing I, LLC, a
Delaware limited liability company, Vivint Solar Holdings, Inc., a Delaware corporation, the other guarantors and lenders party thereto from time to time, and Bank of America, N.A., as administrative agent and collateral agent or any additional or
other indebtedness that is secured by direct or indirect interests in the Purchased Subsidiaries and that supplements, refinances or replaces the Aggregation Facility (such additional indebtedness, together with the Aggregation Facility, the
“Indebtedness”). To the extent obligations under any Indebtedness are assumed by the Purchaser (or a subsidiary of Purchaser) on or before the Closing, then the amount of the Purchase Price payable by Purchaser to Seller at the
Closing shall be reduced on a dollar-for-dollar basis by an amount equal to the then outstanding aggregate amount of the Indebtedness so assumed. Notwithstanding anything to the contrary contained herein, (a) Purchaser shall not be required to
assume any Indebtedness (including the Aggregation Facility) unless it does so in its sole discretion and (b) Purchaser and Seller acknowledge and agree that if any Purchased Subsidiary is obligated to repay any of the Indebtedness and such
Indebtedness remains outstanding as of the Closing, such Indebtedness will be deemed for all purposes to have been assumed by Purchaser for purposes of this Section 1.03. 

 Section 1.04 Purchase Price Payment; Tax Equity Tranches.  

(a) Subject to Sections 1.03 and 1.04(b), the Purchase Price shall be paid by Purchaser at Closing by wire
transfer of immediately available funds to accounts designated in writing by Seller to Purchaser prior to the Closing. 

(b) Notwithstanding Section 1.04(a) above, if as of the Closing, there exists any requirement on Purchaser or any of
its subsidiaries (including, for the avoidance of doubt, the Purchased Subsidiaries) to (x) make an equity contribution with respect to any Purchased Subsidiary or (y) make any payment with respect to projects owned or to be acquired by any
Purchased Subsidiary, in each case of clauses (x) and (y) pursuant to any partnership, purchase, contribution or similar agreement, then the amount of such payment or equity contribution (the “Escrow Amount”) shall, instead of being
paid to Seller as part of the Purchase Price as contemplated by Section 1.04(a) above, be deposited by Purchaser at the Closing into an escrow account managed by an escrow agent (the “Escrow Agent”) on terms mutually
agreeable to Purchaser and Seller, and the Escrow Amount shall be released by the Escrow Agent to Purchaser from time to time after the Closing to satisfy any equity contribution or payment obligations of Purchaser and its subsidiaries (including,
for the avoidance of doubt, the Purchased Subsidiaries) required by the documentation described in clauses (x) and (y). 
 Section 1.05
Required Consents. 
 (a) Absence of Consents; Obtaining Consents. Notwithstanding anything to the contrary contained
in this Agreement, to the extent that the sale, conveyance, transfer, assignment or delivery or attempted sale, conveyance, transfer, assignment or delivery to Purchaser of any Purchased Interest is prohibited by any applicable Law or would require
any third party or any Governmental Authority’s authorization, approval, consent, negative clearance or waiver and such authorization, approval, consent, negative clearance or waiver shall not have been obtained prior to the Closing, this
Agreement shall not constitute a sale, conveyance, transfer, assignment or delivery, or an attempted sale, conveyance, transfer, assignment or delivery thereof. Following the Closing, the parties hereto shall have a continuing obligation to use
their reasonable best efforts to obtain and to cooperate in obtaining any such Consents from third parties, including Governmental Authorities; provided, that neither Seller, the Company nor any of their respective Affiliates shall be required to
pay or commit to pay any significant amount to (or incur any significant liability or obligation in favor of) any third party that is not a Governmental Authority from whom any such Consent, notice, registration, declaration or filing may be
required (other than nominal filing or application fees). Upon obtaining the requisite authorization, approval, consent, negative clearance or waiver, Seller shall cause the Company to promptly convey, transfer, assign and deliver, or cause to be
conveyed, transferred, assigned and delivered, such Purchased Interest or right to Purchaser hereunder. 
 (b) Benefit of
Purchased Interests. Pending, or in the absence of, such authorization, approval, consent, negative clearance or waiver, the parties hereto shall cooperate with each other in any reasonable and lawful arrangements designed to provide to
Purchaser the economic claims, rights and benefits and liabilities of beneficial ownership of such Purchased Interest and Seller shall cause the Company to continue to hold such Purchased Interest upon the reasonable direction of Purchaser;
provided, that Seller shall bear the economic burden resulting from implementation of any such alternative arrangement pursuant to this Section 1.05(b) and Purchaser shall be responsible for any liabilities, if any, arising as a result
of ownership of such Purchased Interest. 

  
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 ARTICLE II 

CLOSING 
 Section 2.01
Closing. Unless this Agreement shall have been terminated pursuant to Section 8.01, the parties shall cause the closing of the transactions contemplated hereby (the “Closing”) to take place at the offices of
Kirkland & Ellis LLP, 601 Lexington Avenue, New York, New York 10022, immediately following the consummation of the Merger, on the terms and subject to the conditions of this Agreement and the satisfaction or waiver of all of the
conditions set forth in Article VII. The date on which the Closing occurs is referred to in this Agreement as the “Closing Date”. 

Section 2.02 Closing Deliverables. 

(a) At the Closing, Seller shall deliver (or cause to be delivered) to Purchaser the following: 

(i) a certificate signed by an executive officer of Seller, dated the Closing Date, to the effect that the conditions set forth
in Section 7.03(a), and Section 7.03(b) have been satisfied; 
 (ii) with respect to the Purchased
Interests and subject to Section 1.05, an assignment and assumption of the Purchased Interests in substantially the form of Exhibit B hereto (an “Interest Assignment;” collectively, the “Interest
Assignments”), for each Purchased Subsidiary, duly executed by the Company or its applicable subsidiary; and 

(iii) if applicable, the escrow agreement contemplated by Section 1.04(b), duly executed by Seller. 

(b) At the Closing, Purchaser shall deliver (or cause to be delivered) to Seller or its applicable Subsidiary the following:

 (i) subject to Sections 1.03 and 1.04(b), an amount in cash equal to the Purchase Price, payable by wire
transfer of immediately available funds; 
 (ii) a certificate signed by an executive officer of Purchaser, dated the Closing
Date, to the effect that the conditions set forth in Section 7.02(a) and Section 7.02(b) have been satisfied; 

(iii) with respect to the Purchased Interests, and subject to Section 1.05, an Interest Assignment for each
Purchased Subsidiary, duly executed by Purchaser; and 
 (iv) if applicable, the escrow agreement contemplated by Section
1.04(b), duly executed by Purchaser and the Escrow Agent. 
 (c) If applicable, at the Closing, Purchaser shall deliver
(or cause to be delivered) to the Escrow Agent an amount in cash equal to the Escrow Amount, payable by wire transfer of immediately available funds. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF SELLER 

Seller represents and warrants to Purchaser as set forth in Exhibit C. Seller is not making any representation or warranty whatsoever,
express or implied, beyond those expressly given in this Article III or pursuant to any certificate or other agreement delivered by Seller in connection herewith. Seller hereby disclaims any other express or implied representation or warranty not
contained in this Article III or in a certificate or other agreement delivered in connection with the transactions contemplated by this Agreement. Notwithstanding the foregoing, nothing in this Article III shall affect the ability of Purchaser to
rely on the representations and warranties with respect to the Purchased Interests and the Purchased Subsidiaries made to Seller in the Merger Agreement. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF PURCHASER 

Purchaser represents and warrants to Seller as set forth in Exhibit D. Purchaser is not making any representation or warranty
whatsoever, express or implied, beyond those expressly given in this Article IV or pursuant to any certificate or other agreement delivered by Purchaser in connection herewith. 

  
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Purchaser hereby disclaims any other express or implied representation or warranty not contained in this Article IV or in a certificate or other agreement delivered in connection with the
transactions contemplated by this Agreement. 
 ARTICLE V 

COVENANTS 

Section 5.01 Covenants of Seller. From and after the date of this Agreement until the Closing, Seller covenants and agrees (except
as required by applicable law, or to the extent that Purchaser shall otherwise previously consent in writing, which consent will not be unreasonably withheld, conditioned or delayed to the extent Seller is unable to unreasonably withhold, condition
or delay its consent under the Merger Agreement, and which consent shall be deemed to be granted five (5) Business Days after written request for such consent has been delivered to Purchaser by Seller unless Purchaser shall have denied such consent
request in writing) (a) Seller shall not enter into any amendment to the Merger Agreement and (b) Seller shall not consent to any action taken by the Company prohibited by Section 4.01 of the Merger Agreement which would reasonably be
expected to have an adverse effect on any of the Purchased Interests or the Purchased Subsidiaries. 
 Section 5.02 Financing.

 (a) Efforts to Obtain the Financing. Purchaser acknowledges and agrees that, notwithstanding anything in this
Agreement to the contrary, the obligations to perform its agreements hereunder, including to consummate the Closing subject to the terms and conditions hereof, are not conditioned on obtaining of the Debt Financing, and Purchaser acknowledges
and agrees that obtaining the Debt Financing or any other financing is not a condition to the Closing. If the Debt Financing has not been obtained, Purchaser will continue to be obligated, subject to the satisfaction or waiver of the conditions set
forth in Article VII, to consummate transactions contemplated by this Agreement. Seller acknowledges that the covenants and obligations contained in this Section 5.02 and the Debt Financing Commitments are the sole and exclusive
covenants and obligations of Purchaser and each of its Representatives in connection with obtaining the Debt Financing; provided, however, that Purchaser expressly acknowledges and agrees that Purchaser’s obligations to hold the
Closing and consummate the transactions contemplated by this Agreement (including pursuant to Section 2.01) shall not in any way be conditioned upon whether the Debt Financing is available or has been obtained and, for avoidance of
doubt, that Purchaser shall be required to hold the Closing and consummate the transactions contemplated by this Agreement on any date, if so required pursuant to the terms and conditions of Section 2.01, regardless of whether the Debt
Financing is available or has been obtained as of such date. 
 (b) Financing Cooperation. Prior to the Closing,
Seller shall use reasonable best efforts to provide to Purchaser, and shall use its reasonable best efforts to cause the Company and their respective Representatives, including legal and accounting advisors, to provide in accordance with
Section 4.05 of the Merger Agreement, in each case at Purchaser’s sole expense, all cooperation reasonably requested by Purchaser that is reasonably necessary in connection with arranging, obtaining and syndicating the Debt Financing and
causing the conditions in the Debt Financing Commitments to be satisfied. 
 (c) Confidentiality. Purchaser agrees to
be bound by the Confidentiality Agreement (as defined in the Merger Agreement) as if a party thereto. 
 (d) Indemnity and
Reimbursement. Purchaser shall promptly, upon written request by Seller, reimburse Seller or the Company, as applicable, for all reasonable and documented out-of-pocket costs and expenses (including reasonable attorneys’ fees) incurred by
the Seller, the Company or any of their respective subsidiaries in connection with the cooperation of Seller, the Company and their respective subsidiaries contemplated by this Section 5.02 and shall indemnify and hold harmless Seller,
the Company, and their respective subsidiaries and Representatives from and against any and all losses, damages, claims, costs or expenses suffered or incurred by any of them of any type in 

  
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connection with Purchaser’s arrangement of any Debt Financing and any information used in connection therewith, except with respect to any information prepared or provided by Seller, the
Company or any of their respective subsidiaries or Representatives, and the foregoing obligations shall survive termination of this Agreement. 

ARTICLE VI 
 ADDITIONAL
AGREEMENTS 
 Section 6.01 Regulatory Matters; Reasonable Best Efforts. 

(a) On the terms and subject to the conditions of this Agreement, each party shall use its reasonable best efforts to cause the
Closing to occur, including using reasonable best efforts to take all actions reasonably necessary to comply promptly with all legal requirements that may be imposed on it or its subsidiaries with respect to the Closing. Each party shall not take
any actions that would or that would reasonably be expected to, result in any of the conditions set forth in Article VII not being satisfied. Each party shall use its reasonable best efforts to cause the Closing to occur on or prior to the
Termination Date. Nothing in this Section 6.01 shall impose any obligation on Purchaser with respect to obtaining or arranging the Debt Financing, it being agreed that Purchaser’s obligations with respect to such matters shall be
governed solely by Section 5.02 and the Debt Financing Commitments. 
 (b) Each of Purchaser and Seller shall use
its reasonable best efforts to obtain, and to cooperate in obtaining, all Consents from third parties, including Governmental Authorities, necessary or appropriate to permit the consummation of the transactions contemplated by this Agreement and to
provide, and cooperate in providing, notices to, and make or file, and cooperate in the making or filing of, registrations, declarations or filings with, third parties required to be provided prior to the Closing; provided, however,
that no party shall be required to pay or commit to pay any significant amount to (or incur any significant liability or obligation in favor of) any third party that is not a Governmental Authority from whom any such Consent, notice, registration,
declaration or filing may be required (other than nominal filing or application fees). 
 (c) Nothing in this
Section 6.01 shall obligate Purchaser or Seller or any of their respective subsidiaries to take any action that is not conditional upon the Closing. 

(d) Following the consummation of the Merger, Seller agrees to cause the Company to comply with its obligations under this
Agreement. 
 Section 6.02 [Reserved]. 

ARTICLE VII 
 CONDITIONS
PRECEDENT 
 Section 7.01 Conditions to the Obligations of Each Party. The respective obligation of each party to consummate
and cause the consummation of the transactions contemplated herein are subject to the satisfaction or waiver by Seller and Purchaser on or prior to the Closing of the following conditions: 

(a) No Injunctions or Restraints. No (i) temporary restraining order or preliminary or permanent injunction or
other order, in each case, by any court of competent jurisdiction preventing, prohibiting, restraining, enjoining or rendering illegal the consummation of the Merger shall have been issued and be continuing in effect or (ii) applicable law of a
Governmental Authority of competent jurisdiction shall be in in effect prohibiting or rendering illegal the consummation of the Merger or the other transactions contemplated by this Agreement. 

(b) Consummation of the Merger. (i) The Merger shall have been consummated in accordance with the terms of the
Merger Agreement and (ii) all conditions to the consummation of the Merger shall have been satisfied or waived; provided, that Seller shall not have waived any condition to the consummation of the Merger which such waiver would
reasonably be expected to have an adverse effect on the Purchaser or the Purchased Interests or Purchased Subsidiaries without obtaining the prior written consent of Purchaser. 

  
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 Section 7.02 Conditions to Obligations of Seller. The obligation of Seller to
consummate and cause the consummation of the transactions contemplated herein are further subject to satisfaction or waiver at or prior to the Closing by Seller of the following additional conditions: 

(a) Representations and Warranties. The representations and warranties of Purchaser shall be true and correct (without
giving effect to any limitation as to “materiality” set forth therein) in all material respects, except where the failure of such other representations and warranties to be so true and correct does not have, and would not reasonably be
expected to have, individually or in the aggregate, a material adverse effect on Purchaser’s ability to consummate the transactions contemplated hereby, as of the Closing Date, as if made on and as of such time (except to the extent expressly
made as of an earlier date, in which case as of such date). 
 (b) Performance of Obligations of Purchaser. Purchaser
shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing. 

(c) Closing Certificates. Seller shall have received a certificate signed by an executive officer of Purchaser, dated
the Closing Date, to the effect that the conditions set forth in Section 7.02(a), and Section 7.02(b) have been satisfied. 

Section 7.03 Conditions to Obligations of Purchaser. The obligation of Purchaser to consummate and cause the consummation of the
transactions contemplated herein are further subject to satisfaction or waiver on or prior to the Closing by Purchaser of the following additional conditions: 

(a) Representations and Warranties. The representations and warranties of Seller (other than the representations and
warranties as to “Organization and Authority”) shall be true and correct except for de minimis inaccuracies, as of the Closing Date, as if made on and as of such time (except to the extent expressly made as of an earlier date, in which
case as of such date). The representations and warranties of Seller as to “Organization and Authority” shall be true and correct except where the failure of such representations and warranties to be so true and correct does not have, and
would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on Seller’s ability to consummate the transactions contemplated hereby, as of the Closing Date, as if made on and as of such time (except to
the extent expressly made as of an earlier date, in which case as of such date). 
 (b) Performance of Obligations of
Seller. Seller shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing Date. 

(c) Closing Certificates. Purchaser shall have received a certificate signed by an executive officer of the Company,
dated the Closing Date, to the effect that the conditions set forth in Section 7.03(a) and Section 7.03(b) have been satisfied. 

ARTICLE VIII 

TERMINATION, AMENDMENT AND WAIVER 

Section 8.01 Termination. This Agreement may be terminated at any time prior to the Closing: (a) by mutual written agreement
of Purchaser and Seller; (b) automatically upon the termination of the Merger Agreement; or (c) by either Purchaser or Seller in the event that the transactions contemplated by this Agreement shall not have been consummated by the
Termination Date (as the same may be extended pursuant to §7.01(c) of the Merger Agreement); provided, further, that the right to terminate this Agreement under this Section 8.01(c) shall not be available to any party
(i) whose failure to 

  
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fulfill any of its obligations under this Agreement has been a principal cause of the failure of the transactions contemplated by this Agreement to occur on or before the Termination Date or
(ii) against which any legal proceeding is brought by a party hereto for specific performance or injunction in connection herewith (which prohibition on such party’s right to terminate this Agreement shall continue throughout the pendency
of such legal proceeding). The party desiring to terminate this Agreement pursuant to clause (c) of this Section 8.01 shall give written notice of such termination to the other party in accordance with Section 9.01, specifying
the provision or provisions hereof pursuant to which such termination is effected. 
 Section 8.02 Effect of Termination. In the
event of the termination and abandonment of this Agreement pursuant to Section 8.01, this Agreement shall become void and have no effect with no liability to any person on the part of any party hereto (or any of its Representatives or
affiliates), except that (a) the provisions of Section 5.02(d), this Section 8.02, Article IX and the Confidentiality Agreement shall survive any such termination and abandonment and (b) the termination of
this Agreement shall not relieve any party from any liability or damages for any Willful Breach. “Willful Breach” shall mean a material breach that is a consequence of an act or a failure to act of an executive officer of the Party taking
such act or failing to take such act with the actual knowledge that the taking of such act or the failure to take such act would cause, or would reasonably be expected to cause, a breach of any representation, warranty, agreement or covenant of the
breaching party contained in this Agreement. 
 ARTICLE IX 

GENERAL PROVISIONS 

Section 9.01 Notices. All notices, requests, claims, consents, demands and other communications under this Agreement shall be in
writing and shall be delivered either in person, by overnight courier, by registered or certified mail, or by facsimile transmission or electronic mail, and shall be deemed to have been duly given (a) upon receipt, if delivered personally or by
overnight courier, with overnight delivery and with acknowledgement of receipt requested, (b) three (3) Business Days after mailing, if mailed by registered or certified mail (postage prepaid, return receipt requested) or (c) on the
Business Day the transmission is made when transmitted by facsimile or electronic mail (provided, that the same is sent by overnight courier for delivery on the next succeeding Business Day, with acknowledgement of receipt requested), to the
parties at the following addresses (or at such other address for a party as shall be specified by like notice): (x) if to Seller, in accordance with the Merger Agreement and (y) if to Purchaser, to the address stated on the signature pages
to this Agreement. 
 Section 9.02 Definitions. Capitalized terms used herein but not otherwise defined (and the terms
“affiliate,” “person” and “subsidiary,” as used herein) shall have the meanings ascribed thereto in the Merger Agreement. For purposes of this Agreement: 

(a) “Debt Financing Parties” means the entities that have committed to provide or otherwise entered into
agreements in connection with the Debt Financing or other debt financings in connection with the transactions contemplated hereby and their respective affiliates and their respect affiliates’ general or limited partners, stockholders, managers,
members, agents, representatives, employees, directors, or other officers and their respective successor and assigns, including any Debt Financing Party, arranger or agent party to the Debt Financing Commitments and any joinder agreements,
indentures or credit agreements relating thereto. 
 (b) “Required Information” means “Required
Information” as defined in the Merger Agreement consisting of customary financial information that is (i) required under paragraph 3 of the Debt Financing Commitments and paragraph 2 of Annex C attached thereto (as in effect on the date of
this Agreement), and (ii) reasonably necessary to prepare pro forma financial statements required to be delivered pursuant to the Debt Financing Commitments (as in effect on the date of this Agreement) (it being understood that the preparation
of pro forma financial statements shall be the sole obligation of Purchaser). 

  
 -7- 

 Section 9.03 Interpretation and Other Matters. When a reference is made in this
Agreement to an Article, Section or Exhibit, such reference shall be to an Article or Section of, or an Exhibit to, this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including” are
used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise
defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Any agreement, instrument or
statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or
instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein. References to a person are also to its successors and
permitted assigns. 
 Section 9.04 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall
be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each party and delivered to the other parties. 

Section 9.05 Entire Agreement; No Third-Party Beneficiaries; Suits for Damages. This Agreement amends, restates and supersedes the
Original PSA in its entirety. This Agreement (including the documents and instruments referred to herein) and the Confidentiality Agreement constitute the entire agreement, and supersede all prior agreements and understandings, both written and
oral, among the parties with respect to the subject matter of this Agreement. Nothing in this Agreement is intended to confer, and does not confer, any rights or remedies under or by reason of this Agreement (or any breach hereof) on any person
other than the parties hereto and their respective successors and permitted assigns, except (i) the provisions of Section 9.14, which shall be enforceable by the Non-Recourse Parties and (iii) the provisions of
Section 9.08(c), Section 9.12 and Section 9.13, which shall be enforceable by the Debt Financing Parties. 

Section 9.06 Amendment. This Agreement may be amended or supplemented by the parties at any time prior to the Closing;
provided, however, that Sections 9.05, 9.08, 9.12, 9.13, 9.14 and this Section 9.06 (and any provision of this Agreement to the extent an amendment, modification, waiver or termination of such
provision would modify the substance of Sections 9.05, 9.06, 9.08, 9.12, 9.13 or Section 9.14, in each case solely as such Section relates to Debt Financing Parties) may not be amended, modified, waived
or terminated in a manner that is adverse in any respect to the Debt Financing Parties without the prior written consent of the arrangers of the Debt Financing. This Agreement may not be amended except by an instrument in writing signed by each of
the parties hereto. 
 Section 9.07 Extension; Waiver. At any time prior to the Closing, a party may (a) extend the time
for the performance of any of the obligations or other acts of the other party or parties, (b) waive any breach or inaccuracies in the representations and warranties of the other party or parties contained in this Agreement or in any document
delivered pursuant to this Agreement or (c) waive compliance by the other parties with any of the agreements or conditions contained in this Agreement. Any such extension or waiver shall be valid only if set forth in an instrument in writing
signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 

Section 9.08 Governing Law; Jurisdiction. 

(a) This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of the
laws that might otherwise govern under applicable principles of conflict of laws and matters related to the fiduciary obligations of the Board of Directors of Seller 

  
 -8- 

 
or Purchaser shall be governed by the laws of the State of Delaware except all matters relating to the interpretation, construction, validity and enforcement (whether at law, in equity, in
contract, in tort, or otherwise) against any of the Debt Financing Parties and each of their respective affiliates and their respective general or limited partners, shareholders, managers, members, directors, officers, employees, advisors, counsel
or affiliates in any way relating to their debt financing commitments and related fee letters or the performance thereof or the financings contemplated thereby, shall, except as expressly provided in such debt financing commitments, be exclusively
governed by, and construed in accordance with, the domestic Law of the State of New York without giving effect to any choice or conflict of law provision or rule whether of the State of New York or any other jurisdiction that would cause the
application of Law of any jurisdiction other than the State of New York. 
 (b) Each of the parties (i) irrevocably
submits itself to the exclusive jurisdiction of the Court of Chancery of the State of Delaware or, to the extent such court does not have jurisdiction, the United States District Court of the District of Delaware, as well as to the jurisdiction of
all courts to which an appeal may be taken from such courts, in any suit, action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated herein, (ii) agrees that every such suit, action or proceeding
shall be brought, heard and determined exclusively in such court, (iii) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such court, (iv) agrees not to bring any suit,
action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated herein in any other court, and (v) waives any defense of inconvenient forum to the maintenance of any suit, action or proceeding so
brought. 
 (c) Notwithstanding anything contrary in this Agreement, each of the parties hereto agrees that it will not bring
or support any action, cause of action, claim, cross-claim or third-party claim of any kind or description, whether in law or in equity, whether in contract or in tort or otherwise, against the Debt Financing Parties or any of their respective
affiliates or any of their respective former, current or future general or limited partners, shareholders, managers, members, directors, officers, employees, advisors, counsel or affiliates in any way relating to this Agreement or any of the
transactions contemplated by this Agreement, including but not limited to any dispute arising out of or relating in any way to the debt financing commitments or the performance thereof, in any forum other than any New York federal court sitting in
the Borough of Manhattan, or, if such court does not have subject matter jurisdiction, in any state court located in the City and County of New York. The parties hereto further agree that all of the provisions of Section 9.13 relating to
waiver of jury trial shall apply to any action, cause of action, claim, cross-claim or third party-claim referenced in this Section 9.08(c). 

(d) Each of the parties agrees that service of any process, summons, notice or document in the manner set forth in
Section 9.01 shall be effective service of process for any action, suit or proceeding brought against it. 
 Section 9.09
Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties hereto without the prior written consent of
the other party. Notwithstanding the foregoing, (i) Purchaser may assign any of its rights or delegate any of its obligations under this Agreement, by operation of law or otherwise, to one or more of its affiliates (but no such assignment shall
relieve the assigning party of any of its obligations hereunder) and (ii) either Party may collaterally assign any of its rights, but not its obligations, under this Agreement to any of its financing sources. Any attempted or purported
assignment in violation of this Section 9.09 shall be null and void and of no effect whatsoever. Subject to the provisions of this Section 9.09, this Agreement shall be binding upon, inure to the benefit of, and be
enforceable by, the parties and their respective successors and permitted assigns. 

  
 -9- 

 Section 9.10 Specific Performance. The parties agree that irreparable damage may occur and that the
parties may not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that, subject to
Section 9.10, in the event of any breach or threatened breach by any other party of any covenant or obligation contained in this Agreement, the non-breaching party shall be entitled to an injunction or injunctions to prevent breaches of
this Agreement and to enforce specifically the terms and provisions of this Agreement, without the necessity of posting bonds or similar undertakings in connection therewith, this being in addition to any other remedy which may be available to such
non-breaching party at law or in equity, including monetary damages. 
 Section 9.11 Severability. If any term or other
provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest
extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 

Section 9.12 Debt Financing Parties. Notwithstanding anything to the contrary contained herein and notwithstanding that Purchaser
is an affiliate of Seller, the Debt Financing Parties (in their capacity as such) shall not have any liability to Seller, its subsidiaries (other than Purchaser) or any of their respective equity holders, representatives or affiliates relating to or
arising out of this Agreement, the financing of the transactions contemplated hereby or the transactions contemplated hereby or thereby, whether at law or equity, in contract or in tort or otherwise, and Seller (on behalf of itself and its
subsidiaries (other than Purchaser)) and each of their respective equity holders, representatives and affiliates (other than Purchaser) agrees that neither it nor any Seller stockholder shall have any rights or claims, and shall not seek any loss or
damage or any other recovery or judgment of any kind, including direct, indirect, consequential, special, exemplary or punitive damages, against any Debt Financing Party in connection with this Agreement, the Debt Financing or the transactions
contemplated hereby or thereby, whether at law or equity, in contract, in tort or otherwise; provided that, for the avoidance of doubt, the foregoing will not limit the rights of the parties to the Debt Financing Commitments under the Debt
Financing Commitments or and any joinder agreements, indentures, credit agreements or other Debt Financing documentation related thereto. 

Section 9.13 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR
DEBT FINANCING COMMITMENTS OR THE DOCUMENTS RELATED THERETO IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE DEBT FINANCING COMMITMENTS OR THE DOCUMENTS RELATED THERETO, INCLUDING ANY CONTROVERSY INVOLVING ANY DEBT
FINANCING PARTIES, REPRESENTATIVE OF PURCHASER OR SELLER UNDER THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.13. 

  
 -10- 

 Section 9.14 No Recourse. This Agreement may only be enforced against, and any claims
or causes of action that may be based upon or arise out of this Agreement, or the negotiation, execution or performance of this Agreement, may only be made against the persons that are expressly identified as parties hereto and no former, current or
future equity holders, controlling persons, directors, officers, employees, agents, Representatives or affiliates of any party hereto or any former, current or future stockholder, controlling person, director, officer, employee, general or limited
partner, member, manager, agent, Representative or affiliate of any of the foregoing, in each case other than the parties hereto (each, a “Non-Recourse Party”) shall have any liability for any obligations or liabilities of the
parties to this Agreement or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, any breach of this Agreement or in respect of any representations made or alleged to be made in connection herewith.
Without limiting the rights of any party against the other parties hereto, in no event shall any party or any of its affiliates seek to enforce this Agreement against, make any claims for breach of this Agreement against, or seek to recover monetary
damages for breach of this Agreement from, any Non-Recourse Party. 

  
 -11- 

 IN WITNESS WHEREOF, Purchaser and Seller have caused this Agreement to be signed by their
respective officers thereunto duly authorized, all as of the date first written above. 
  

			
	TERRAFORM POWER, LLC
		
	By:	 	 /s/ Brian Wuebbels

	Name:	 	 Brian Wuebbels 

	Title:	 	 Chief Executive Officer

	
	SUNEDISON, INC.
		
	By:	 	 /s/ Ahmad Chatila

	Name:	 	 Ahmad Chatila 

	Title:	 	President and Chief Executive Officer

 Purchaser’s Notice Address: 

TerraForm Power, LLC 
 7550 Wisconsin Avenue, 9th Floor 
 Bethesda, Maryland 20814 

Attention: General Counsel 

 Exhibit A 

PURCHASED SUBSIDIARIES 
 Vivint Solar
Financing I, LLC* 
 Vivint Solar Owner I, LLC* 
 Vivint Solar
Liberty Manager, LLC 
 Vivint Solar Margaux Manager, LLC 

Vivint Solar Fund III Manager, LLC 
 Vivint Solar Nicole Manager,
LLC 
 Vivint Solar Mia Manager, LLC 
 Vivint Solar Aaliyah
Manager, LLC 
 Vivint Solar Rebecca Manager, LLC 
 Vivint Solar
Hannah Manager, LLC 
 Vivint Solar Elyse Manager, LLC 
 Vivint
Solar Fund XVIII Manager, LLC 
 Vivint Solar Fund X Manager, LLC 

Vivint Solar Fund XI Manager, LLC 
 Vivint Solar Fund XII Manager,
LLC 
 Vivint Solar Fund XIII Manager, LLC 
 Vivint Solar Fund
XIV Manager, LLC 
 Vivint Solar Fund XVI Manager, LLC 
  

	*	Solely to the extent Purchaser opts, in its sole discretion, to assume the obligations under the Aggregation Facility (or any other Indebtedness to the extent such entities are a borrower or guarantor thereunder)

 Exhibit B 

Form of Interest Assignment 

(See attached) 

 ASSIGNMENT OF INTERESTS 

THIS ASSIGNMENT OF INTERESTS (this “Assignment”), dated as of [•], 2015 (the “Effective
Date”), is made and entered into by and between [•], a [•] (the “Assignor”) and TerraForm Power, LLC, a Delaware limited liability company (“Assignee”). Assignor and Assignee are
referred to herein, collectively, as the “Parties” and each, individually, as a “Party”. 

RECITALS 
 WHEREAS,
Assignor owns, beneficially and of record, the interests set forth on Schedule I (the “Assigned Interests”); and 

WHEREAS, Seller and Assignee have entered into an Amended and Restated Purchase Agreement, dated as of December 9, 2015 (the
“Purchase Agreement”), pursuant to which Seller has agreed to cause Assignor to sell and assign and Assignee has agreed to purchase and acquire the Assigned Interests. 

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

1. Defined Terms. Capitalized terms used but not defined herein shall have the meaning prescribed to such terms in the Purchase
Agreement. 
 2. Assignment of the Assigned Interests. From and after the Effective Date, Assignor hereby (i) transfers, assigns,
conveys and delivers to Assignee all of such Assignor’s right, title and interest in and to the Assigned Interests free and clear of all liens (other than restrictions on transfer which arise under applicable securities laws and liens created
in or by Assignor or any of its affiliates and, if Purchaser opts to assume the obligations under the Aggregation Facility, any liens in favor of the collateral agent or any secured party under the Aggregation Facility) and (ii) simultaneously
with such assignment, the Assignee is hereby admitted to each limited liability company (“LLC”) with respect to the Assigned Interests as a member of each LLC, and (iii) immediately after such admission, Assignor shall
and does hereby cease to be a member of each LLC with respect to the Assigned Interests and shall thereupon cease to have or exercise any right or power as a member of such LLCs. 

3. Assumption of the Assigned Interests. From and after the Effective Date, Assignee hereby accepts and assumes all of Assignor’s
obligations and liabilities, to the extent they arise or relate to periods following the Effective Date, with respect to the Assigned Interests. 

4. No Other Representations or Warranties. THE PARTIES UNDERSTAND AND AGREE THAT, EXCEPT AS EXPRESSLY SET FORTH IN THE PURCHASE
AGREEMENT, NO PARTY TO THIS AGREEMENT, THE PURCHASE AGREEMENT, OR ANY OTHER AGREEMENT CONTEMPLATED BY THE PURCHASE 

 
AGREEMENT, IS REPRESENTING OR WARRANTING IN ANY WAY AS TO THE PARTIES, THE TRANSFERRED COMPANIES, THEIR RESPECTIVE AFFILIATES, THEIR RESPECTIVE BUSINESSES, THE ASSIGNED INTERESTS, THE PURCHASE
AGREEMENT OR THE AGREEMENTS CONTEMPLATED BY THE PURCHASE AGREEMENT. FOR THE AVOIDANCE OF DOUBT, THIS SECTION 4 SHALL HAVE NO EFFECT ON ANY REPRESENTATION OR WARRANTY IN THE PURCHASE AGREEMENT. 

5. Further Assurances. Assignor hereby agrees to promptly execute and deliver such instruments and documents (in form and substance
reasonably acceptable to the Parties) and take such further action that may be reasonably necessary or desirable in order to give effect to the intent of this Assignment. 

6. Binding Effect. This Assignment shall be binding upon and inure to the benefit of the Parties and their respective successors and
assigns. 
 7. Counterparts. This Assignment may be executed in two or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same Assignment. 
 8. Severability. Any term or provision of this Assignment that is
determined by a court of competent jurisdiction to be invalid or unenforceable for any reason shall, as to that jurisdiction, be ineffective solely to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Assignment or affecting the validity or enforceability of any of the terms or provisions of this Assignment in any other jurisdiction. If any provision of this Assignment is determined by a court of competent
jurisdiction to be so broad as to be unenforceable, that provision shall be interpreted to be only so broad as is enforceable. 
 9.
Governing Law. 
 (a) This Assignment, the legal relations between the Parties and the adjudication and the
enforcement thereof, shall be governed by and interpreted and construed in accordance with the substantive laws of the State of New York, without regard to applicable choice of law provisions thereof. 

(b) Each Party, by its execution hereof, (i) hereby irrevocably submits and consents to the exclusive jurisdiction of the
state courts of the State of New York located in New York County or the United States District Court for the Southern District of New York for the purpose of any and all actions, suits or proceedings arising in whole or in part out of, related to,
based upon or in connection with this Assignment or the subject matter hereof, (ii) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any
claim that it is not subject to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution or that any such action brought in one of the above-named courts should be dismissed on grounds of forum
non conveniens, should be transferred to any court other than one of the above-named courts 

  
 16 

 
or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Assignment or the subject matter hereof may not be
enforced in or by such court and (iii) hereby agrees not to commence any such action other than before one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any
such action to any court other than one of the above-named courts whether on the grounds of inconvenient forum or otherwise. Each Party hereby (A) consents to service of process in any such action in any manner permitted by New York law,
(B) agrees that service of process made in accordance with clause (A) or made by registered or certified mail, return receipt requested, at its (or in the case of Assignor, Seller’s) address specified pursuant to Section 9.01 of
the Purchase Agreement, shall constitute good and valid service of process in any such action and (C) waives and agrees not to assert (by way of motion, as a defense or otherwise) in any such action any claim that service of process made in
accordance with clauses (A) or (B) does not constitute good and valid service of process. 
 10. Purchase Agreement Terms.
This Assignment shall, in every respect, be subject to and governed by the terms of the Purchase Agreement. To the extent this Assignment conflicts with the Purchase Agreement, the Purchase Agreement will control. 

[Signature Page Follows] 

  
 17 

 IN WITNESS WHEREOF, the Parties have caused this Assignment to be duly executed and delivered as
of the Effective Date. 
  

			
	[______________]
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	TERRAFORM POWER, LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Signature Page to Assignment Agreement] 

 SCHEDULE I 

ASSIGNED INTERESTS 

 Exhibit C 

Representations and Warranties of Seller 

1. Organization and Authority. Seller is duly organized, validly existing and in good standing (to the extent such concepts are
recognized in the applicable jurisdiction) under the laws of the jurisdiction of its formation. Seller has all necessary power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by Seller, the performance by Seller of its obligations hereunder and the consummation by Seller of the Closing have been duly authorized by all requisite action on the part of
Seller. This Agreement has been duly executed and delivered by Seller, and assuming the due authorization, execution and delivery of this Agreement by Purchaser, will constitute the legal, valid and binding obligation of Seller, enforceable against
Seller in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws in effect that affect the enforcement of creditors’ rights generally and by
equitable limitations on the availability of specific remedies and by principles of equity. 
 2. Title; Capitalization. 

(a) The Company or its applicable subsidiary, as applicable, is the record and beneficial owner of the Purchased Interests, free and clear of
all liens (other than restrictions on transfer which arise under applicable securities laws and liens created in or by Purchaser or any of its affiliates and, if Purchaser opts to assume the obligations under the Aggregation Facility, any liens in
favor of the collateral agent or any secured party under the Aggregation Facility). The Company or its applicable subsidiary is not a party to any option, warrant, purchase right, right of first offer or first refusal or other Contract, commitment
or understanding that could require the Company or its applicable subsidiary to sell, transfer, or otherwise dispose of, or create any lien on, any of the Purchased Interests (other than restrictions on transfer which arise under applicable
securities laws and liens created in or by Purchaser or any of its affiliates and, if Purchaser opts to assume the obligations under the Aggregation Facility, any liens in favor of the collateral agent or any secured party under the
Aggregation Facility). 
 (b) Except for the Tax Equity Transaction Documents and any other contacts entered into in association therewith,
the Company or its applicable subsidiary is not a party to any voting trusts, stockholder agreements, proxies or other Contract, commitment or understanding in effect with respect to the voting or transfer of the Purchased Interests. 

(c) As of Closing, all of the Purchased Interests have been duly authorized, validly issued and fully paid and non-assessable. Other than the
Purchased Interests, there are no other shares of capital stock, equity interests or similar rights in the Purchased Subsidiaries authorized, issued or outstanding. 

(d) There are no outstanding options, restricted stock, warrants or other similar instruments of any kind relating to the acquisition,
transfer, sale, issuance or voting of any securities (including any shares of capital stock of any class or other voting securities or ownership interests) of the Purchased Subsidiaries that have been issued, granted or entered into by the Purchased
Subsidiaries, or any securities convertible into, exchangeable for or evidencing the right to purchase from the Purchased Subsidiaries, any securities of the Purchased Subsidiaries. There are no outstanding contractual obligations of the Purchased
Subsidiaries to repurchase, redeem or otherwise acquire any of their respective shares. 
 3. Due Incorporation; Subsidiaries. Each of the
Purchased Subsidiaries is duly organized, validly existing and in good standing (to the extent such concepts are recognized in the applicable jurisdiction) under the laws of the jurisdiction of its formation, and has all the necessary power and
authority to own, lease, operate and conduct its properties and businesses as they are now being owned, leased, operated and conducted, except for such failures to be in good standing or to have such requisite power or authority that would not have,
or would not reasonably be expected to have, a Company Material Adverse Effect. 

 Exhibit D 

Representations and Warranties of Purchaser 

1. Organization and Authority. Purchaser is duly organized, validly existing and in good standing (to the extent such concepts are
recognized in the applicable jurisdiction) under the laws of the jurisdiction of its formation. Purchaser has all necessary power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by Purchaser, the performance by Purchaser of its obligations hereunder and the consummation by Purchaser of the Closing have been duly authorized by all requisite action on the part
of Purchaser. This Agreement has been duly executed and delivered by Purchaser, and assuming the due authorization, execution and delivery of this Agreement by Seller, will constitute the legal, valid and binding obligation of Purchaser, enforceable
against Purchaser in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws in effect that affect the enforcement of creditors’ rights generally
and by equitable limitations on the availability of specific remedies and by principles of equity. 
 2. Financing. 

(a) Purchaser has delivered to the Seller correct and complete copies of an executed commitment letter among Terraform Power Operating, LLC,
Goldman Sachs Bank USA, Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated (including any related exhibits, schedules, annexes, supplements and other related documents), each dated on or about July 20, 2015
(as amended, modified, supplemented, replaced or extended from time to time after the date of this Agreement in compliance with this Agreement, the “Debt Financing Commitments”), from each of the financing sources identified therein
(collectively, the “Debt Financing Sources”), pursuant to which the Debt Financing Sources have committed, subject to the terms and conditions thereof, to provide debt financing in the amounts set forth therein for the purpose of funding
the transactions contemplated by this Agreement (collectively, the “Debt Financing”), together with a customarily redacted fee letter from the Debt Financing Sources related to the Debt Financing (the “Fee Letter”). 

(b) Except for the Fee Letter or as expressly set forth in the Debt Financing Commitments, as of the date of this Agreement, there are no side
letters or other agreements, Contracts or written arrangements to which Purchaser or any of its affiliates is a party related to the funding or investing, as applicable, of the Debt Financing which could reasonably be expected to adversely affect
the availability of the Debt Financing contemplated by the Debt Financing Commitments. Assuming satisfaction of the conditions set forth in Section 7.01 (to the extent any such condition is a condition under the control of the Seller) and
Section 7.03, Purchaser does not have any reason to believe, as of the date of this Agreement, that it or any of its subsidiaries or affiliates will be unable to satisfy all conditions to be satisfied by it, its subsidiaries and its controlled
affiliates with respect to any of the Debt Financing Commitments at the time it, its subsidiaries and its affiliates is required to consummate the Closing hereunder or that the Debt Financing will not be available to Purchaser or its affiliates
party thereto at the Closing, including any reason to believe that any of the Debt Financing Sources will not perform their respective funding obligations under the Debt Financing Commitments in accordance with their respective terms and conditions.

 (c) As of the date hereof, there are no conditions precedent or other contingencies (including pursuant to any “flex”
provisions) related to the funding of the full amount of the Debt Financing pursuant to the Debt Financing Commitments, other than as expressly set forth in the Debt Financing Commitments. Assuming the Debt Financing is funded in accordance with the
Debt Financing Commitments, the net proceeds contemplated by the Debt Financing Commitments, together with other financial resources of Purchaser, whether directly held or available for use by Purchaser, and its controlled affiliates including cash
on hand and the proceeds of loans under existing credit facilities of Purchaser or its controlled affiliates on the Closing Date and funds that will be provided by controlled affiliates of Purchaser, in the aggregate, shall provide Purchaser with
cash proceeds on 

 
the Closing Date sufficient for the satisfaction of all of Purchaser’s payment obligations under this Agreement and under the Debt Financing Commitments, including the payment of any amounts
required to be paid pursuant to Article II, any fees and expenses of or payable by Purchaser in connection with the Debt Financing. 
 (d) As
of the date of this Agreement, the Debt Financing Commitments are in full force and effect and constitute valid and binding obligations of Purchaser and any of its affiliates party thereto and, to the knowledge of Purchaser, each other party
thereto, enforceable in accordance with their terms against Purchaser and any of its affiliates party thereto and, to the knowledge of Purchaser, each other party thereto (except as such enforcement may be subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws, now or hereafter in effect, relating to creditors’ rights generally, and general equitable principles) and, as of the date of this Agreement, no event has occurred that, with or
without notice, lapse of time, or both, would reasonably be expected to constitute a default or breach or a failure to satisfy a condition precedent on the part of Purchaser or any affiliate of Purchaser or, to the knowledge of Purchaser, any other
party thereto under the terms and conditions of the Debt Financing Commitments. Purchaser has paid in full any and all commitment fees or other fees required to be paid pursuant to the terms of the Debt Financing Commitments and the Fee Letters on
or before the date of this Agreement. As of the date hereof, (i) none of the Debt Financing Commitments or Fee Letters has been modified, amended or otherwise altered (and no such modification, amendment or alteration is contemplated by
Purchaser or, to the knowledge of Purchaser, any other party thereto) and (ii) none of the respective commitments under any of the Debt Financing Commitments have been withdrawn, terminated or rescinded (and no such withdrawal, termination or
rescission is contemplated by Purchaser or, to the knowledge of Purchaser, any other party thereto). 
 (e) Purchaser is not entering into
this Agreement or the Debt Financing Commitment with the intent to hinder, delay or defraud either present or future creditors. Assuming (i) satisfaction of the conditions to Purchaser’s obligation to consummate the transactions
contemplated hereby and (ii) the payment of the Purchase Price to the Seller, payment of all amounts required to be paid in connection with the Closing and the other transactions contemplated hereby, and payment of all related fees and
expenses, Purchaser will be Solvent as of the Closing Date and immediately after the consummation of the transactions contemplated hereby. For the purposes of this Agreement, the term “Solvent” when used with respect to any person, means
that, as of any date of determination (a) the amount of the “fair saleable value” of the assets of such person will, as of such date, exceed (i) the value of all “liabilities of such person, including contingent and other
liabilities,” as of such date, as such quoted terms are generally determined in accordance with applicable laws governing determinations of the insolvency of debtors, and (ii) the amount that will be required to pay the probable
liabilities of such person on its existing debts (including contingent and other liabilities) as such debts become absolute and mature, (b) such person will not have, as of such date, an unreasonably small amount of capital for the operation of
the businesses in which it is engaged or proposed to be engaged following such date, and (c) such person will be able to pay its liabilities, including contingent and other liabilities, as they mature. For purposes of this definition, “not
have an unreasonably small amount of capital for the operation of the businesses in which it is engaged or proposed to be engaged” and “able to pay its liabilities, including contingent and other liabilities, as they mature” means
that such person will be able to generate enough cash from operations, asset dispositions or refinancing, or a combination thereof, to meet its obligations as they become due. 

  
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