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Exhibit
10.2
EXECUTION
COPY
TRANSITION SERVICES
AGREEMENT
by and
among
FCC FINANCE
LLC,
FIRST CONSUMER CREDIT,
INC.,
U.S. REMODELERS,
INC.,
and
U.S. HOME SYSTEMS,
INC.
Dated as of
October 2, 2007
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ARTICLE I
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DEFINITIONS |
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1 |
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SECTION 1.01.
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Certain
Defined Terms |
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1 |
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ARTICLE II
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SERVICES AND TERMS |
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2 |
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SECTION 2.01.
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Services |
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2 |
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SECTION 2.02.
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Custom
Modifications |
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2 |
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SECTION 2.03.
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Changes
to Services |
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3 |
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SECTION 2.04.
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Cooperation |
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3 |
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ARTICLE III
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PERFORMANCE AND RECEIPT OF SERVICES; STANDARDS |
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3 |
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SECTION 3.01.
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Standard
for Services |
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3 |
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SECTION 3.02.
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Compliance with Laws |
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3 |
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SECTION 3.03.
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Transitional Nature of Services |
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3 |
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SECTION 3.04.
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Use of
Third Parties to Provide Services |
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4 |
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SECTION 3.05.
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Designation of Services Manager |
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4 |
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ARTICLE IV
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BILLING; TAXES |
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4 |
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SECTION 4.01.
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Service
Charges and Other Costs; Payments |
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4 |
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SECTION 4.02.
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Invoices;
Payment |
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5 |
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SECTION 4.03.
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Disputes |
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5 |
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SECTION 4.04.
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Taxes |
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5 |
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ARTICLE V
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INDEMNIFICATION; LIMITATION ON LIABILITY |
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5 |
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SECTION 5.01.
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Indemnification by Parent, Seller and USRI |
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5 |
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SECTION 5.02.
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Indemnification by Purchaser |
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6 |
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SECTION 5.03.
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Indemnification Procedures |
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6 |
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SECTION 5.04.
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Limitation on Liability |
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6 |
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ARTICLE VI
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DISPUTE RESOLUTION |
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6 |
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SECTION 6.01.
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Dispute
Resolution |
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6 |
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ARTICLE VII
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TERMINATION |
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7 |
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SECTION 7.01.
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Termination Rights; Post-Termination Transition;
Extension |
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7 |
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SECTION 7.02.
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Effect of
Termination |
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7 |
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SECTION 7.03.
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Survival |
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7 |
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SECTION 7.04.
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Force
Majeure |
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7 |
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ARTICLE VIII
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GENERAL PROVISIONS |
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8 |
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SECTION 8.01.
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Independent Contractors |
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8 |
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SECTION 8.02.
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Regulatory Approval and Compliance |
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8 |
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SECTION 8.03.
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Confidential Information |
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8 |
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SECTION 8.04.
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Counterparts; Entire Agreement; Corporate Power; Facsimile
Signatures |
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8 |
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SECTION 8.05.
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Governing
Law |
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9 |
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SECTION 8.06.
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Notices |
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9 |
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SECTION 8.07.
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Severability |
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10 |
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SECTION 8.08.
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Assignability; No Third-Party Beneficiaries |
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10 |
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SECTION 8.09.
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Subsidiaries |
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10 |
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SECTION 8.10.
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Waivers |
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10 |
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SECTION 8.11.
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Amendments |
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11 |
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SECTION 8.12.
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Interpretation |
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11 |
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SECTION 8.13.
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Mutual
Drafting |
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11 |
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SCHEDULES |
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SCHEDULE A
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SCHEDULE B
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SCHEDULE C
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THIS TRANSITION SERVICES
AGREEMENT (this “ Agreement ”) dated as of
October 2, 2007, is entered into by and among FCC FINANCE LLC,
a Delaware limited liability company (“ Purchaser
”), FIRST CONSUMER CREDIT, INC., a Texas corporation (“
Seller ”), U.S. REMODELERS, INC., a Delaware
corporation (“ USRI ”), and U.S. HOME SYSTEMS,
INC., a Delaware corporation (“ Parent
”).
STATEMENT OF
PURPOSE
WHEREAS , Purchaser,
Parent and Seller are parties to that certain Asset Purchase
Agreement, dated as of October 2, 2007 (the “ Asset
Purchase Agreement ”), pursuant to which Seller agreed to
sell to Purchaser, and Purchaser agreed to purchase from Seller,
the Assets on the terms and conditions set forth
therein;
WHEREAS , as a
condition to consummating the transactions contemplated by the
Asset Purchase Agreement, Purchaser, Seller and Parent agreed to
enter into, and to cause USRI to enter into, this Agreement
pursuant to which Parent, Seller and USRI will provide certain
services to Purchaser in order to ensure an orderly transition of
Seller’s business to Purchaser in accordance with the terms
and subject to the conditions set forth herein;
NOW, THEREFORE , in
consideration of the mutual agreements, provisions and covenants
contained in this Agreement and for other good and valuable
consideration, the receipt and adequacy of which are hereby
acknowledged, Purchaser, Seller, Parent and USRI hereby agree as
follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. Certain
Defined Terms . Unless otherwise defined herein, all
capitalized terms used herein shall have the same meaning as in the
Asset Purchase Agreement.
The following capitalized
terms used in this Agreement shall have the meanings set forth
below:
“ Agreement
” means this Transition Services Agreement, together with
each of the schedules hereto.
“ Breaching
Party ” has the meaning given to such term in
Section 7.01(a) .
“ Information
” of a Person means any and all information relating to such
Person’s business, including such Person’s products,
processes, trade secrets, know-how, designs, formulas, methods,
samples, media and/or cell lines, developmental or experimental
work, improvements, discoveries, plans for research, new products,
marketing and selling, business plans, budgets and unpublished
financial statements, licenses, prices and costs, suppliers and
customers, and information regarding the skills and compensation of
employees of such Person.
“ Information
Systems ” means computing, telecommunications or other
electronic operating or processing systems or environments,
including computer programs, data, databases,
computers, computer libraries,
communications equipment, networks and systems. When referenced in
connection with Services, Information Systems shall mean the
Information Systems accessed and/or used in connection with the
Services.
“ Non-breaching
Party ” has the meaning set forth in
Section 7.01(a) .
“ Other Costs
” has the meaning set forth in Section 4.01(b)
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“ Parent Indemnified
Party ” has the meaning set forth in
Section 5.02 .
“ Parent Services
Manager ” has the meaning given to such term in
Section 3.05(a) .
“ Parties
” means Parent, Seller, USRI and Purchaser.
“ Purchaser
Indemnified Party ” has the meaning set forth in
Section 5.01 .
“ Purchaser Services
Manager ” has the meaning given to such term in
Section 3.05(b) .
“
Representative(s) ” of a Person means any member,
manager, director, officer, employee, agent, consultant,
accountant, auditor, attorney or other representative of such
Person.
“ Service(s)
” has the meaning given such term in
Section 2.01(a) .
“ Service
Charges ” has the meaning set forth in
Section 4.01(a) .
“ Service
Termination Date ” in respect of any Service shall mean
the date specified for such Service in the relevant Schedules, or
such other date as provided in this Agreement.
“ Third Party
” means any Person other than the Parties and
Seller.
ARTICLE II
SERVICES AND TERMS
SECTION 2.01. Services
. During the period commencing on the date hereof and ending on the
applicable Service Termination Date, subject to the terms and
conditions set forth in this Agreement, (a) Parent, Seller or
USRI, as applicable, shall jointly and severally provide or cause
to be provided to Purchaser each of the services listed in
Schedules A through C , including all reasonably
related ancillary services historically provided to Seller by
Parent’s, USRI’s or Seller’s employees
(collectively, the “ Services ”). Each of
Parent, USRI and Seller shall retain and maintain personnel,
resources and capabilities sufficient to allow it to perform the
Services and its obligations under this Agreement.
SECTION 2.02. Custom
Modifications . The Services shall include, and the Service
Charges reflect all charges for such maintenance, support, error
correction, training, updates and enhancements normally and
customarily provided by Parent or USRI to Seller and its other
affiliates that receive such Services. If Purchaser requests that
Parent, Seller or USRI provide a custom modification in connection
with any Service, Parent may, but shall not be obligated to,
provide such custom modification. Purchaser shall be responsible
for the cost of any such custom modification.
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SECTION 2.03. Changes to
Services . Parent, Seller or USRI may make changes from time to
time in the manner of performing the Services if (i) Parent,
Seller or USRI is making similar changes in performing analogous
services for itself, (ii) Parent, Seller or USRI furnishes to
Purchaser substantially the same notice (in content and timing) as
Parent shall furnish to its own organization respecting such
changes and (iii) such changes do not result in a degradation
in the quality or sufficiency of the services received. No such
change shall affect the Service Charges for the applicable Service
unless the Parties otherwise agree.
SECTION 2.04.
Cooperation . If (i) there is nonperformance of any
Service as a result of an event described in
Section 7.04 or (ii) the provision of a Service
would violate applicable Law, the Parties agree to work together in
good faith to arrange for an alternative means by which the
Purchaser may obtain the Services so affected.
ARTICLE III
PERFORMANCE AND RECEIPT OF
SERVICES; STANDARDS
SECTION 3.01. Standard for
Services .
(a) Except as otherwise
provided in this Agreement (including in any Schedule hereto), from
the date hereof until the applicable Service Termination Date,
Parent, Seller and USRI agree to perform all Services in a manner
such that the nature, quality, standard of care, timeliness and
service levels of or at which such Services are performed are
substantially similar to the nature, quality, standard of care,
timeliness and service levels of or at which such Services were
performed by or on behalf of Parent, Seller or USRI prior to the
date hereof in the ordinary course of business.
(b) Parent, Seller and USRI
shall, and shall cause their respective affiliates to, perform its
duties and responsibilities hereunder in good faith and based on
its past practices.
(c) Parent, Seller and USRI
and Purchaser shall exercise reasonable care in providing and
receiving the Services to (i) prevent access to the Services
or Information Systems by unauthorized Persons and (ii) not
damage, disrupt or interrupt the Services or Information
Systems.
SECTION 3.02. Compliance
with Laws . Nothing in this Agreement shall require Parent,
Seller or USRI to perform or cause to be performed any Service or
Purchaser to receive any Service in a manner that would constitute
a violation of applicable Law.
SECTION 3.03. Transitional
Nature of Services . The Parties acknowledge the transitional
nature of the Services and agree to cooperate in good faith and to
use commercially reasonable efforts to effectuate a smooth
transition of the Services from Parent, Seller or USRI to
Purchaser.
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SECTION 3.04. Use of Third
Parties to Provide Services . Parent, Seller or USRI may
perform its obligations through its subsidiaries or, if Parent,
Seller or USRI is obtaining analogous services for itself from
agents, subcontractors or independent contractors, Parent may
perform its obligations hereunder through the use of such agents,
subcontractors or independent contractors, if Parent, Seller or
USRI furnishes to Purchaser substantially the same notice (in
content and timing) as Parent, Seller or USRI shall furnish to its
own organization respecting such use of Third Parties. If Parent,
Seller or USRI is not obtaining analogous services for itself from
Third Parties, Parent, Seller or USRI may perform its obligations
hereunder through the use of agents, subcontractors or independent
contractors only upon obtaining the prior written consent of
Purchaser. Notwithstanding the foregoing, Parent, Seller or USRI
shall not be relieved of their obligations under this Agreement by
use of such subsidiaries, agents, subcontractors or contractors.
Delegation of performance of any Service by Parent, Seller or USRI
in accordance with this Section 3.04 shall not affect
the Service Charges for the applicable Service.
SECTION 3.05. Designation
of Services Manager .
(a) Parent Services
Manager . Parent will designate a dedicated services manager
(the “ Parent Services Manager ”) who will be
directly responsible for coordinating and managing the delivery of
the Services and will have authority to act on Parent’s,
Seller’s and USRI’s behalf with respect to the
Services. The Parent Services Manager will work with the Purchaser
Services Manager to address Purchaser’s issues and the
Parties’ relationship under this Agreement.
(b) Purchaser Services
Manager . Purchaser will designate a dedicated services account
manager (the “ Purchaser Services Manager ”) who
will be directly responsible for coordinating and managing the
receipt of the Services by Purchaser and will have authority to act
on Purchaser’s behalf with respect to the Services. The
Purchaser Services Manager will work with the Parent Services
Manager to address Parent’s, Seller’s and USRI’s
issues and the Parties’ relationship under this
Agreement.
ARTICLE IV
BILLING; TAXES
SECTION 4.01. Service
Charges and Other Costs; Payments .
(a) Purchaser shall pay
Seller (or its designee) an amount with respect to each Service
provided hereunder (individually, a “
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