Document:

ex10-4.htm

ADDENDUM NO. 1 TO

TRANSITION SERVICES AGREEMENT

 

THIS TRANSITION SERVICES AGREEMENT (this “Agreement”) is made and entered into as of this 9th day of October, 2014, by and between Bollente Companies, Inc., a Nevada corporation having its principal place of business at 8800 N. Gainey Center Dr., Suite 270, Scottsdale, AZ 85258 (“BOLC”), and Nuvola, Inc., a Nevada corporation having offices at 8800 N. Gainey Center Dr., Suite 270, Scottsdale, AZ 85258 (“NUVOLA”).

 

WITNESSETH

 

WHEREAS, in January of 2014, the Board of Directors of BOLC declared a dividend to its stockholders of record as of June 30, 2014, in the form of all of the common stock of NUVOLA;

 

WHEREAS, on October 9, 2014, the Board of Directors of BOLC and NUVOLA extended the Record Date from June 30, 2014 to October 20, 2014;

 

WHEREAS, the distribution of all of the common stock of NUVOLA (the “Transaction”) will take place (the “Distribution Date”) once a registration statement has been filed by NUVOLA and declared effective by the Securities and Exchange Commission;

 

WHEREAS, the Transaction is intended to allow BOLC to focus on their business and to allow NUVOLA to focus on their business;

 

WHEREAS, in connection with the Transaction, NUVOLA and BOLC agree that BOLC will provide to NUVOLA the “Services” (as hereinafter defined) in connection with the operations of NUVOLA after the Distribution Date, upon the terms and subject to the conditions set forth in this Agreement; and

 

WHEREAS, NUVOLA acknowledges that BOLC is not engaged in the business of providing Services to third parties, and that the Services to be provided to NUVOLA hereunder are being provided solely as an accommodation to NUVOLA in connection with the Transaction;

 

NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set forth in this Agreement, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

1.           DEFINITIONS

 

1.1           Definitions.  In this Agreement and in the Schedules annexed hereto, the following terms shall have the meanings specified or referred to below (terms defined in the singular to have the correlative meaning in the plural and vice versa):

 

“Accounts Payable Services” means the accounts payable services to be supplied by BOLC to NUVOLA as described in Schedule B hereto.

 

“Additional Services” means any services, products or resources outside the scope of the Accounts Payable Services, Business Advisory Services, Financial Planning Services, General Ledger and Financial Reporting Services, Payroll/Benefits Services, Tax Compliance Services, and/or any services, products or resources within the scope of such aforesaid services, but which exceed those (in amount and/or frequency) necessary to satisfy the commercially reasonable requirements of the Business as set forth in this Agreement by reason of NUVOLA, from time to time during the Term of this Agreement, expanding the Business through acquisition, or otherwise, in any case which services, products, or resources are provided hereunder pursuant to Section 2.3 hereof.

 

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“Business Day” means any day that is not a Saturday or a Sunday or a day on which banks located in Arizona are authorized or required to be closed.

 

“Business Advisory Services” means the services to be supplied by BOLC to NUVOLA as described in Schedule C hereto.

 

“Business Records” means all records and information of any description or type created or used in the ordinary course of the operation of the Business.

 

“Charges” means the charges for the Services as set forth in Schedule A hereto.

 

“Financial Planning Services” means the financial planning services to be supplied by BOLC to NUVOLA as described in Schedule D hereto.

 

“General Ledger and Financial Reporting Services” means the general ledger and financial reporting services to be supplied by BOLC to NUVOLA as described in Schedule E hereto.

 

“Payroll/Benefit Services” means the payroll/benefit services to be supplied by BOLC to NUVOLA as described in Schedule F hereto.

 

“Services” means all of the services to be rendered, products and resources to be provided, and tasks to be performed hereunder by BOLC for the benefit of NUVOLA, consisting of Accounts Payable Services, Business Advisory Services, Financial Planning Services, General Ledger and Financial Reporting Services, Payroll/Benefits Services, Tax Compliance Services, and the and Additional Services, if any.

 

“Tax Compliance Services” means the tax compliance services to be supplied by BOLC to NUVOLA as described in Schedule G hereto.

 

2.           SERVICES

 

2.1           Scope of Services.  BOLC shall furnish the Services to NUVOLA throughout the Term (as hereinafter defined) of this Agreement, except to the extent that particular Services are discontinued in accordance with Article 3 hereof.  It is acknowledged and understood that the Services are to be utilized by NUVOLA only in respect of the operation of the Business.  In the furnishing of Services by BOLC, BOLC shall not be required to make any payments on behalf of NUVOLA unless and until NUVOLA has in advance of the payment date funded such payment to BOLC.  Subject only to BOLC responsibility to administer such payments, and to any other then-outstanding agreements between the parties, the payment of all liabilities, expenses, or fees incurred or sustained in the operation of the Business is solely the obligation of and responsibility of NUVOLA.

 

2.2           Quality of Service.  All Services to be provided by BOLC hereunder shall be provided using the same standards of care, diligence, and timeliness applied by BOLC in delivering similar services to NUVOLA prior to the Transaction.

 

2.3           Additional Services.  NUVOLA may from time to time request BOLC to provide services that BOLC considers to be Additional Services under this Agreement.  BOLC shall promptly advise NUVOLA whether, in its sole and absolute discretion, it is willing to provide to, or obtain for, NUVOLA such Additional Services.  Whenever BOLC considers that the particular service requested is an Additional Service and BOLC is willing to provide to or obtain the Additional Service, BOLC shall (i) inform NUVOLA in writing that such service is an Additional Service, (ii) indicate the date from and after which BOLC would be prepared to provide the Additional Service and (iii) provide NUVOLA with a written quotation in reasonable detail of the basis upon which the fees and charges for such Additional Service will be billed.  NUVOLA shall accept or reject the quotation, in writing, within five (5) Business Days following receipt thereof from BOLC.  If NUVOLA does not respond within such five (5) Business Day period, it shall be deemed to have rejected the quotation.  If NUVOLA accepts the quotation, BOLC shall commence to provide the particular Additional Service from and after the agreed upon date until this Agreement terminates or the particular Additional Service is discontinued pursuant to Article 3.  NUVOLA shall be invoiced for the Additional Service pursuant to Article 5 hereof.  Such Additional Services can include third-party professional services, e.g., legal, accounting, and independent advisory services.

 

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2.4           Determination of Personnel.  BOLC reserves the right to determine in a commercially reasonable manner the number of personnel and the mix of skills necessary or desirable to provide the Services in accordance with the standards mandated by this Agreement.

 

2.5           Business Records.  All right, title, and interest in and to the Business Records generated for NUVOLA as part of the Services shall vest in NUVOLA.

 

2.6           Coordinators.  Promptly after the Distribution Date, BOLC and NUVOLA shall each designate an individual with adequate authority, and an alternate to act in the absence of such individual, to act as its coordinator (a party’s “Coordinator”).  The Coordinators thus appointed for each of the parties will be responsible for liaison and interface between BOLC and NUVOLA with respect to the coordination and performance of all Services.

 

2.7           Limitations on Scope of Services.  Except as may be provided by any other then-outstanding agreements between the parties, NUVOLA shall retain all authority with respect to the management and operation of the Business.  It is further understood that the Services to be provided by BOLC under this Agreement are strictly administrative in nature.  BOLC will have no management responsibility with respect to the Business, and NUVOLA shall be solely responsible for the control, policy making, and direction of the Business.

 

3.           TERM AND TERMINATION

 

3.1           Initial Term; Renewal.  This Agreement shall take effect as of the Distribution Date and, unless earlier terminated as provided for in Section 3.2 hereof, BOLC shall provide the Services for a period of one (1) year from the Distribution Date; provided, however, if this Agreement commences on any date other than the first calendar day of a calendar month, then the period during which BOLC shall provide the Services shall be extended to conclude at the end of the thirteenth (13th) calendar month following the Distribution Date (the “Initial Term”).  NUVOLA shall have the option to renew this Agreement for an additional three (3)-month period (the “First Renewal Term”) from the end of the Initial Term (provided this Agreement has not been terminated prior to such date in accordance with the terms hereof) by providing at least sixty (60) days written notice to BOLC prior to the expiration of the Initial Term of NUVOLA’s intention to renew this Agreement.  In the event this Agreement is renewed for a First Renewal Term, NUVOLA shall have the option to renew this Agreement for an additional three (3)-month period from the end of the First Renewal Term (the “Second Renewal Term”, and together with the First Renewal Term and Initial Term are collectively referred to as the “Term”) by providing at least thirty (30) days written notice to BOLC prior to the expiration of the First Renewal Term.  If this Agreement is renewed for a First Renewal Term, the Charges set forth on Schedule A (and any Charges for Additional Services), shall be renegotiated by BOLC and Nuvola.  If this Agreement is renewed for a Second Renewal Term, the Charges (and any charges for Additional Services), shall be renegotiated by BOLC and Nuvola.

 

3.2           Termination and Discontinuation.  Either party may terminate this Agreement at any time upon a default by the other party as specified in and subject to the terms and conditions of Article 6 hereof.  NUVOLA may from time to time during the Term of this Agreement terminate any particular Additional Service in its entirety upon 30 days’ written notice to BOLC.  It shall be the sole responsibility of NUVOLA, upon and after termination for any reason whatsoever of all or any particular Additional Service in its entirety, to perform, render, and provide for itself (or to make arrangements with one or more third party service providers to perform, render, and provide) the Service or Services so terminated in accordance herewith and to do all necessary planning and make all necessary preparations in connection therewith.

 

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3.3           Payment of Charges upon Termination.  In the event this Agreement is terminated for any reason, all outstanding Charges shall be paid to BOLC within five (5) Business Days of such termination.

 

4.           CONFIDENTIALITY AND SECURITY

 

4.1           Confidential Information.  The parties acknowledge that, in the course of performance of this Agreement, it may be necessary or desirable for one party (the “disclosing party”) to disclose to the other party (the “confidant”) confidential or proprietary information.  The confidant agrees to protect and maintain the confidentiality of such information by using the same degree of care that the confidant uses to protect its own proprietary information.  The confidant will instruct its employees, agents, and subcontractors to regard all such confidential information disclosed or made accessible to such persons as confidential and proprietary to the disclosing party and not to be divulged or made accessible by such persons to anyone other than personnel of the disclosing party, its designated agents or other personnel of the confidant who have a need to know or have the ability to gain access for the purposes of this Agreement.  The confidant agrees not to use any such confidential information for any purpose other than for the providing of Services hereunder and to return such confidential information and all copies thereof at the request of the disclosing party.

 

4.2           Certain Exclusions.  Excluded from any obligation of confidence under this Article is information that:  (a) is known to either party prior to disclosure by the other from sources other than the disclosing party and without an obligation of confidentiality, or (b) is or becomes generally available to the public from a source other than the confidant or information disclosed by the disclosing party.

 

4.3           Legal Compulsion.  Where information held under an obligation of confidence pursuant to this Article is required by court order or other legal obligation of the confidant to be disclosed, the confidant may disclose the same to the extent (but only to the extent) so required and shall not be in breach of this Agreement for having done so; provided, however, that the confidant shall promptly notify the disclosing party prior to making such disclosure (unless notification prior to disclosure is not practicable, in which case notification shall be made as soon after disclosure as reasonably practicable) and shall, in cooperation with the disclosing party, use all reasonable efforts to minimize the extent of such disclosure and to obtain an undertaking or other assurance from the recipient to maintain the confidentiality thereof.

 

4.4           File Security.  BOLC shall utilize security procedures, similar to those applicable to BOLC’ own data, to ensure that access to Business Records in the possession of BOLC is available only to NUVOLA and necessary BOLC support personnel.

 

4.5           Records Management.  During the Term of this Agreement, BOLC shall retain and store Business Records in its possession in the same manner as it stores similar records for its own businesses.  Subject to Sections 2.4 and 4.4, BOLC will act upon and implement the reasonable instructions of NUVOLA as to retention and storage of Business Records, but any additional risk associated therewith shall be that of NUVOLA.  BOLC shall promptly provide (but in not more than 10 Business Days) to NUVOLA upon the termination of this Agreement, at an amount equal to BOLC reasonable out of pocket expenses and at NUVOLA’s cost, computer tapes (or such other storage medium and/or format requested by NUVOLA that BOLC is reasonably capable of supplying) containing NUVOLA’s data, including the Business Records.

 

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5.           FEES AND CHARGES

 

5.1           Charges.  NUVOLA shall pay the applicable fees and charges for Services provided on the basis set out in Schedule A hereto (or, in the case of Additional Service(s) covered by quotation(s) delivered by BOLC and accepted by NUVOLA pursuant to Section 2.3 hereof) on the basis contained in such quotation(s).  Fixed monthly charges shall be due and payable on the first business day of each calendar month without demand and without offset or deduction.  If this Agreement commences on any date other than the first calendar day of a calendar month, NUVOLA shall pay, on a pro-rated basis, the applicable fees and charges for Services provided as set out for “Month 1” in Schedule A hereto (or, in the case of Additional Service(s) covered by quotation(s) delivered by BOLC and accepted by NUVOLA pursuant to Section 2.3 hereof) on the basis contained in such quotation(s) and “Month 1” shall be deemed to be the first calendar month thereafter.  Charges that are based upon actual charges, usage, or purchases shall be due and payable on the first business day of each and every month, without demand and without offset or deduction and shall be based upon BOLC’ estimate of those charges.  In connection therewith, not less than ten (10) days prior of the end of each calendar month, BOLC shall submit to NUVOLA for its approval the estimated expenses that BOLC proposes to incur on NUVOLA’s behalf for the immediately following calendar month.  NUVOLA may increase, decrease, or delete any estimated expenses.  Not later than fifteen (15) days following the end of the calendar month, BOLC shall furnish to NUVOLA a statement showing the actual charges of any estimated items.  At NUVOLA’s expense and during regular business hours, NUVOLA or an accounting firm retained by it may examine the books and records of BOLC substantiating any such statement for purposes of auditing any third party charges and expenses due under this Agreement.  NUVOLA shall conduct any such audit in a commercially reasonable manner.  If a dispute arises over any such amount of Services, both parties agree to work in good faith toward a mutually agreeable resolution of the dispute.  If NUVOLA’s payment based on the estimated amount of charges is less than the actual charges, NUVOLA shall pay to BOLC the deficiency within five (5) Business Days after receipt of the statement of actual charges.  If NUVOLA’s payment of estimated charges exceeds the actual charges, provided NUVOLA is not in default of the Agreement, NUVOLA shall be entitled at to offset such excess payment against payment(s) next thereafter becoming due under the Agreement; provided, however, that, upon termination of all or any particular Additional Service in its entirety, BOLC shall reimburse NUVOLA within five (5) Business Days for any excess payments in respect thereof.

 

5.2           Taxes.  There shall be added to the fees and charges payable by NUVOLA hereunder amounts equal to any applicable taxes, duties, tariffs and other amounts however designated, paid or payable by BOLC and levied or based on such fees and charges or on this Agreement in respect of the Services rendered hereunder, including sales taxes, if applicable.  The parties shall co-operate with each other to minimize each other’s applicable taxes or duties, and each shall provide the other with any reasonable certificates or documents which are useful for such purpose.  BOLC agrees that it will file all tax returns prepared by it as a part of the Tax Compliance Services, including those returns that are required to be filed after the discontinuance of the Tax Compliance Services, to the extent that BOLC has been paid all amounts owed for such Tax Compliance Services prior to the discontinuance of such services.

 

5.3           Expenses and Third-Party Charges.  Except as otherwise referenced in this Agreement or in any then- then-outstanding agreements between the parties, NUVOLA agrees to assume and pay directly all third-party charges and expenses to the extent incurred in the normal course of the Business and normal and customary in nature.  At BOLC’ option, NUVOLA shall fund BOLC the charges and expenses of third parties in advance of the furnishing by BOLC of any such Services.

 

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5.4           Interest.  Any Charges not paid when due, whether upon demand or otherwise, shall bear interest from the day when due until such amount is paid in full at a rate of ten percent (10%) per annum (but in no event in excess of the maximum rate permitted by applicable law).

 

6.           DEFAULT

 

6.1           Default by NUVOLA.  The following shall be an event of default by NUVOLA:  failure to pay when due any amounts payable hereunder or under this Agreement.

 

6.2           Remedies of BOLC.  In the event of a default by NUVOLA, BOLC may then provide NUVOLA with written notice that NUVOLA is in default, and, if such default is not cured within ten (10) Business Days of the receipt of such notice, BOLC may then:  (a) terminate this Agreement, (b) discontinue providing some or all of the Services (with or without terminating this Agreement), and/or (c) pursue any additional or alternative remedies provided at law or in equity.

 

6.3           Default by BOLC.  The following shall be events of default by BOLC:  (a) a default in the performance by BOLC of any material obligation under this Agreement or (b) if BOLC makes an assignment for the benefit of creditors generally, is the subject of any proceeding under any bankruptcy or insolvency laws that BOLC is not actively contesting, seeks statutory or court protection from its creditors, takes steps to wind up or terminate its corporate existence, or if a liquidator, trustee, receiver, manager, or other officer with similar power shall be appointed of or for BOLC.

 

6.4           Remedies of NUVOLA.  In the event of default by BOLC, NUVOLA may then provide BOLC with notice that BOLC is in default, and if such default is not cured within ten (10) Business Days of the receipt of such notice, NUVOLA may then, subject to Article 7 of this Agreement:  (a) discontinue the use of some or all of the Services (with or without terminating this Agreement), (b) terminate this Agreement, and/or (c) pursue any additional or alternative remedies provided at law or in equity.

 

7.           LIMITATION OF LIABILITY

 

7.1           Exclusion of Warranties.  THERE ARE NO WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, MADE BY BOLC WITH RESPECT TO THE SERVICES OR ANY OTHER ITEMS PROVIDED HEREUNDER OR ANY TRANSACTIONS CONTEMPLATED HEREIN.

 

7.2           Limitation of Liability.  BOLC’ total liability arising out of or in connection with any breach of the provisions of this Agreement or any acts or omissions by or on behalf of BOLC in the performance of BOLC’ obligations under this Agreement, regardless of the form of action, whether in contract or in tort, including negligence, shall not (except to the extent such liability arises from the gross negligence or willful misconduct of BOLC) exceed the Charges paid by NUVOLA for the specific Service provided hereunder.  Notwithstanding the foregoing, BOLC shall not be liable for failure to provide the Services or any delay or default in the performance of the Services or its other obligations hereunder if such failure, delay, or default is due to any cause or condition beyond its reasonable control, or to any of the following causes:  strikes, lockouts and labor disputes, riots, storms, floods, fires, explosions, acts of God, embargoes, war or other outbreak of hostilities, delay of carriers or suppliers, governmental acts or regulations, or the acts or omissions of NUVOLA.

 

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7.3           Limitation of Damages.  Except as otherwise provided in this Agreement, BOLC shall not be liable for, incidental, special, exemplary, or consequential damages even if BOLC has been advised of the possibility thereof, including but not limited to, lost business revenue, failure to realize expected savings, or other commercial or economic loss of any kind.  NUVOLA agrees that BOLC will not be liable for any claim against NUVOLA by any other party, except to the extent such claim arises from the gross negligence or willful misconduct of BOLC.

 

7.4           No Subrogation.  Except to the extent that claims can be made by NUVOLA pursuant to the terms of this Agreement, NUVOLA releases and waives on behalf of itself and on behalf of its insurers any and all claims and any rights of subrogation of any insurer against BOLC, including, but not limited to, its employees and its agents for any loss sustained by NUVOLA, for which it is insured, resulting from a breach of this Agreement by BOLC.  The policies of NUVOLA shall contain an express waiver of subrogation to this effect.

 

Except to the extent that claims can be made by BOLC pursuant to the terms of this Agreement, BOLC releases and waives on behalf of itself and on behalf of its insurers any and all claims and any rights of subrogation of any insurer against NUVOLA, including, but not limited to, its employees and its agents for any loss sustained by BOLC, for which it is insured, resulting from a breach of this Agreement by NUVOLA.  The policies of BOLC shall contain an express waiver of subrogation to this effect.

 

7.5           Indemnification.  NUVOLA hereby agrees to indemnify, defend and hold harmless BOLC, and its successors and assigns, from and against any claim, liability, obligation, loss, damage, assessment, judgment, cost and expense (including without limitation, attorneys’ fees and costs incurred in investigating, preparing, defending against or prosecuting any litigation or claim, action, suit, proceeding or demand) of any kind or character, arising out of, or in any manner incident, relating or attributable to any failure, whether intentional or unintentional, by NUVOLA to perform or observe, or to have performed or observed, in full any covenant, agreement, or condition to be performed or observed by any of them under this Agreement.

 

8.           GENERAL PROVISIONS

 

8.1           Entire Agreement.  This Agreement and the Schedules annexed hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, negotiations and representations, written or oral.  No supplement, amendment, modification, or waiver of this Agreement shall be binding unless executed in writing by the parties.

 

8.2           Non-Waiver.  The failure by either party to exercise any right, power or option given hereunder, or to insist upon the strict compliance with the terms and conditions hereof by the other party, shall not constitute a waiver of the terms and conditions of this Agreement with respect to any other or subsequent breach thereof, nor waiver by such party of its right at any time thereafter to require strict compliance with all terms and conditions hereof.

 

8.3           Survival of Certain Provisions.  It is agreed that the provisions of Section 3.3, Article 4, Article 5, Article 7, and Article 8 hereof shall remain in force and effect after the termination of this Agreement until such time as the parties may mutually agree to the release of the obligations contained therein.

 

8.4           Headings.  The descriptive headings of Articles and Sections are inserted solely for convenience of reference.

 

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8.5           Governing Law; Attorneys’ Fees.  This Agreement shall be governed by and construed in accordance with the law of the State of Nevada (excluding any conflict of law rule or principle that would refer to the laws of another jurisdiction).  Each party hereto irrevocably submits to the exclusive jurisdiction of the state courts of the State of Nevada located in Clark County, in any action or proceeding that is otherwise permitted under this Agreement, and each party hereby irrevocably agrees that all claims in respect of any such action or proceeding must be brought and/or defended in such court; provided, however, that matters which are under the exclusive jurisdiction of the Federal courts shall be brought in the Federal District Court for the District of Nevada – Las Vegas.  Each party hereto consents to service of process by any means authorized by the applicable law of the forum in any action brought under or arising out of this Agreement, and each party irrevocably waives, to the fullest extent each may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.  EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION, OR PROCEEDING ARISING HEREUNDER.  The substantially prevailing party shall be entitled to recover from the other party (as part of the any judgment entered by the court) its reasonable attorneys’ fees and other costs of the litigation.

 

8.6           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 terms, conditions, and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated hereby are not affected in any manner materially adverse to any party.  Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement may be consummated as originally contemplated to the fullest extent possible.

 

8.7           Schedules.  Each of the following Schedules annexed hereto is an integral part of this Agreement:

 

	
Schedule

	
A

	
Charges

	
Schedule

	
B

	
Accounts Payable Services

	
Schedule

	
C

	
Business Advisory Services

	
Schedule

	
D

	
Financial Planning Services

	
Schedule

	
E

	
General Ledger and Financial Reporting Services

	
Schedule

	
F

	
Payroll/Benefits Services

	
Schedule

	
G

	
Tax Compliance Services

 

8.8           Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that neither party shall assign this Agreement without first obtaining the written consent of the other; provided, further, that BOLC may assign this Agreement to one or more of its subsidiaries that are engaged in performing the Services, but such assignment shall not release or discharge BOLC from liability hereunder and it shall remain liable and responsible for the full performance and observance of all of the provisions, covenants and agreements herein.

 

8.9           Notice.  All notices, requests, claims, demands, and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by facsimile or by registered or certified mail (postage prepaid, return receipt requested) or by a nationally recognized overnight courier service to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 8.9):

 

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If to BOLC, to:                                      BOLLENTE COMPANIES INC.

8800 N. Gainey Center Dr.

Suite 270

Scottsdale, AZ 85253

Attn:  Robertson J. Orr, President

With a copy to General Counsel at the address below.

If to NUVOLA, to:                                NUVOLA, INC.

8800 N. Gainey Center Dr.

Suite 270

Scottsdale, AZ 85253

Attn:  Jeffery I. Rassás, President

If to Counsel, to:                                   Stoecklein Law Group, LLP

401 West A Street

Suite 1150

San Diego, CA 92101

Attn:  Donald J. Stoecklein

 

8.10           No Agency.  BOLC’ relationship to NUVOLA under this Agreement shall be that of independent contractor engaged by NUVOLA to perform certain services pursuant to this Agreement and neither BOLC nor NUVOLA undertakes by this Agreement or otherwise to perform any obligation of the other, except as expressly set forth herein.  This Agreement shall not be deemed to constitute a partnership, joint venture, agency, or other form of joint enterprise between BOLC and NUVOLA and persons engaged by either party in performance of its respective obligations hereunder shall not be deemed to be employees, subcontractors, agents, or other representatives of the other party.

 

8.11           Further Assurances.  The parties agree to execute such documents and to do or cause to be done all acts deemed necessary or desirable to implement and carry into effect this Agreement to its full extent.

 

8.12           Counterparts.  This Agreement may be executed by the parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument.

 

8.13           Construction of Agreement.  This Agreement is a document negotiated at arm’s-length by the parties and their respective advisors.  This Agreement shall not be construed as having been “drafted” by any one party and shall not be construed against any party as a drafting party.  The interpretation, application, meaning or construction of any of the terms or provisions of this Agreement shall be construed pursuant to the terms hereof, without bias in favor of or against any party hereto, and regardless of the party who drafted or prepared such term or provision.

 

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IN WITNESS WHEREOF the parties hereto have executed this agreement as of the date first written above.

 

BOLLENTE COMPANIES, INC.

 

By:           /S/ Robertson J. Orr         

                                                                                Robertson J. Orr, President

 

 

NUVOLA, INC.

 

By:          /S/ Jeffery I. Rassás         

Jeffery I. Rassás, President

 

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SCHEDULE A

 

Month                      Charges

	
1  

	
$00.00

	
2  

	
$00.00

	
3  

	
$00.00

	
4  

	
$00.00

	
5  

	
$00.00

	
6  

	
$00.00

	
7  

	
$00.00

	
8  

	
$00.00

	
9  

	
$00.00

	
10  

	
$00.00

	
11  

	
$00.00

	
12  

	
$00.00

  

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SCHEDULE B

 

 

Accounts Payable Services

 

Services to be provided as follows:

 

	
·  

	
Data entry and control of invoices

	
·  

	
Match supply invoices to receiving records and pay, investigate and resolve any of the foregoing unmatched items

	
·  

	
Process payment for travel reimbursements, utility bills and approved expense invoices

	
·  

	
Processing payments of garnishments

	
·  

	
Perform balancing between AP and GL

	
·  

	
Investigate and resolve any AP and GL imbalances

	
·  

	
Set up vendors and maintain in vendor master file

	
·  

	
Process payment of corporate approved expense invoices

	
·  

	
Handle all vendor correspondence and communications, including cash receipts

	
·  

	
Generate disbursements

	
·  

	
Maintain vendor files, including storage thereof

	
·  

	
Establish vendor files for NUVOLA vendors

  

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SCHEDULE C

 

Facilities Payable Services

 

Services to be provided as follows:

 

	
·  

	
To advise NUVOLA concerning the pouch beverages sales and commercial exploitation of its business and related rights that belong to NUVOLA

	
·  

	
To provide office space and all related utilities, including electricity and telephone

	
·  

	
To provide office equipment and office supplies

	
·  

	
To seek and analyze prospective business opportunities for NUVOLA, including decisions on purchases and sales, marketing plan and strategies

	
·  

	
To commence formation of a professional team of sales representatives for NUVOLA’s pouch beverage products

	
·  

	
To negotiate sales and related agreements on behalf of NUVOLA

	
·  

	
To obtain and pay for professional services for the protection of NUVOLA’s intellectual property, for obtaining and maintaining business licenses, negotiating and preparing general business contracts

	
·  

	
To monitor and report to NUVOLA the business evolution and significant events in the various media concerning the pouch beverage market

	
·  

	
To assist NUVOLA with investor relations

  

13

  

SCHEDULE D

 

Financial Planning Services

 

Services to be provided as follows:

 

	
·  

	
Produce daily sales report

	
·  

	
Order tickets on a daily basis

	
·  

	
Produce following weekly reports:

	
·  

	
Gross Margin Report

	
·  

	
Shipment Report

	
·  

	
Produce following reports as needed:

	
·  

	
Planning Level Variance Report

	
·  

	
Aging Reports

	
·  

	
Shrink Report

  

14

  

SCHEDULE E

 

 

General Ledger and Financial Reporting Services

 

Services to be provided as follows:

 

	
·  

	
Maintain general ledger chart of accounts and reporting trees

	
·  

	
Prepare financial statements based on general ledger maintained by BOLC

	
·  

	
Administer monthly recurring/reversing

	
·  

	
Administer monthly allocation programs and entries

	
·  

	
Perform account analysis, review, research, and reconciliation

	
·  

	
Oversight of compliance with GAAP

	
·  

	
Provide necessary support for inquiry of financial statement information

	
·  

	
Coordinate and manage audit and review of financial statements by NUVOLA’s auditors and lenders

	
·  

	
Storage of data in BOLC systems.  If transferring is requested and programming is necessary, internal programming will be charged at $100.00/hr, external programming charges will be charged at direct cost

	
·  

	
Create and maintain general ledger chart of accounts and reporting for NUVOLA

	
·  

	
Create financial statements for NUVOLA

  

15

  

SCHEDULE F

 

 

Payroll/Benefit Services

 

Services to be provided as follows:

 

	
·  

	
Payroll

 

	
·  

	
Calculation of source-to-gross; gross-to-net payroll

	
·  

	
Coordinate printing and distribution of paychecks

	
·  

	
Provide employment and wage verification

	
·  

	
Calculate and journalize monthly payroll expense accruals

	
·  

	
Transfer payroll registers/hours/amounts/tax withholdings in accordance with the Division’s payroll cycles with sufficient time for NUVOLA to remit applicable taxes due

	
·  

	
Administer garnishment deductions

	
·  

	
Timely prepare and distribute annual W-2 statements

	
·  

	
Coordinate workers’ compensation claims with insurance company

 

	
·  

	
Benefits

 

	
·  

	
Administer medical and dental coverage via COBRA

  

16

  

SCHEDULE G

 

Tax Compliance Services

 

Services to be provided as follows:

 

	
·  

	
Prepare and file the following Federal, State, City and tax related filings for the Business:

 

	
·  

	
Licenses

	
·  

	
Personal Property (returns and payments)

	
·  

	
Sales and Use Tax

	
·  

	
Income/Franchise/Annual Reports

	
·  

	
Form 1099 and 1096

 

  

17EX-10.1

 EXHIBIT 10.1 

FORM OF 
 ADVISORY
AGREEMENT 
 BY AND BETWEEN 

OPC RESIDENTIAL PROPERTIES TRUST, INC., 

OPC RESIDENTIAL PROPERTIES, L.P. 

AND 
 OPC REIT
MANAGEMENT, LLC 
 DATED AS OF
                         , 2014 

 This ADVISORY AGREEMENT, dated as of
                , 2014, is by and between OPC Residential Properties Trust, Inc. a Maryland corporation (the “Company”), OPC REIT Management LLC, a Delaware
limited liability company (the “Advisor”), and OPC Residential Properties, L.P., a Delaware limited partnership (the “Operating Partnership”). 

W I T N E S S E T H: 

WHEREAS, the Company invests in Target Assets (as defined below) and intends to qualify as a real estate investment trust for
federal income tax purposes within the meaning of Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”); and 

WHEREAS, the Company and the Operating Partnership desire to retain the Advisor to administer the business activities and
day-to-day operations of the Company and to perform services for the Company and the Operating Partnership in the manner and on the terms set forth herein and the Advisor wishes to be retained to provide such services. 

NOW THEREFORE, in consideration of the promises and agreements hereinafter set forth, the parties hereto hereby agree as
follows: 
 Section 1. Definitions. 

(a) The following terms shall have the meanings set forth in this Section 1(a): 

“Accrual Period” shall mean (i) with respect to the QDII Average Annual Return, the period from the date that
Invested Capital was initially invested in the Company by the QDII Investor through the last day of the most recent calendar year-end, and (ii) with respect to the US L.P. Average Annual Return, the period from the date that capital was
invested in our company by the US L.P. for shares of common stock through the last day of the most recent calendar year-end. 

“Advisor” has the meaning set forth in the Recitals. As is necessary or appropriate herein, the term
“Advisor” shall be deemed to include the Investment Committee. 
 “Advisor Indemnified Party” has the
meaning set forth in Section 8(a) hereof. 
 “Affiliate” means, with respect to any Person,
(i) any other Person directly or indirectly controlling, controlled by, or under common control with such Person, (ii) any executive officer, general partner or managing member of such Person, (iii) any member of the board of
directors or board of managers (or bodies performing similar functions) of such Person, and (iv) any legal entity for which such Person acts as an executive officer, general partner or managing member. 

“Agreed Applicable Tax Rate” shall mean the highest effective marginal U.S. federal income tax rate at which
distributions by the Company to its common stockholders would be taxed, taking into account the character of the distributions as either ordinary or capital gain income or as a nontaxable return of capital. Such effective rates shall also take into
account the tax classification of the ultimate beneficial holders of the common stock of the Company, including whether such beneficial holders have properly claimed the benefit of a double tax treaty between the United States and such beneficial
holder’s country of residence. The Company will be provided information regarding the tax status of each ultimate beneficial holder for purposes of complying with the appropriate US income tax withholding requirements and such other information
as the Company may require to determine the Agreed Applicable Tax Rate. If this information is not made available to the Company then the Company and the Advisor will use the highest effective marginal U.S. tax rate associated with the character and
type of income distributed. 

  
 1 

 “Agreement” means this Advisory Agreement, as amended, supplemented or
otherwise modified from time to time. 
 “Applicable Rate” has the meaning set forth in Section 6(a)
hereof. 
 “Asset Management Catch-Up Fee” means the fee payable to the Advisor pursuant to
Section 6(b) hereof. 
 “Asset Management Fee” means the annual fees payable to the Advisor pursuant
to Section 6(a) hereof. 
 “Automatic Renewal Term” has the meaning set forth in
Section 10(a) hereof. 
 “Bankruptcy” means, with respect to any Person, (i) the filing by
such Person of a voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form, of its debts under Title 11 of the United States Code or any other U.S. federal or state or foreign insolvency law, or such
Person’s filing an answer consenting to or acquiescing in any such petition, (ii) the making by such Person of any assignment for the benefit of its creditors, (iii) the expiration of 60 days after the filing of an involuntary
petition under Title 11 of the United States Code, an application for the appointment of a receiver for a material portion of the assets of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment
of its debts under any other U.S. federal or state or foreign insolvency law, provided that the same shall not have been vacated, set aside or stayed within such 60-day period or (iv) the entry against such Person of a final and
non-appealable order for relief under any bankruptcy, insolvency or similar law now or hereinafter in effect. 

“Board” means the board of directors of the Company. 

“Business Day” means any day except a Saturday, a Sunday or a day on which banking institutions in New York, New
York are not required to be open. 
 “Cause” means with respect to the termination of this Agreement,
(i) fraud, criminal conduct, willful misconduct or material breach of a fiduciary duty by the Advisor, or (ii) a material breach of this Agreement by the Advisor, in either event which breach shall continue for a period of 30 days after
written notice thereof specifying such breach and requesting that the same be remedied in such 30-day period. 

“Claim” has the meaning set forth in Section 8(c) hereof. 

“Code” has the meaning set forth in the Recitals. 

“Common Stock” means the common stock, par value $0.01, of the Company. 

“Company” has the meaning set forth in the Recitals. 

“Company Indemnified Party” has meaning set forth in Section 8(b) hereof. 

  
 2 

 “Cost of Investment” means (i) with respect to acquisition of an
Investment to be wholly owned, directly or indirectly, by the Company, the amount actually paid or allocated to fund the acquisition, inclusive of expenses associated with the making of such Investment and any debt attributed to such Investment and
excluding Acquisition Fees, and (ii) with respect to the acquisition of an Investment through any Joint Venture, the portion of the amount actually paid by, or allocated to, the Company to fund the acquisition of the Investment, inclusive of
expenses associated with the making of such Investment and any debt associated with, or used to fund the investment in such Investment and excluding Acquisition Fees. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Expense Reimbursement Agreement” means that certain Expense Reimbursement Agreement, dated October
    , 2014, by and among the Advisor, the Company, the Operating Partnership and SC Investment Advisors Pte. Ltd. 

“GAAP” means generally accepted accounting principles in effect in the United States on the date such principles are
applied. 
 “Governing Instruments” means, with regard to any entity, the articles of incorporation or certificate
of incorporation and bylaws in the case of a corporation, the partnership agreement in the case of a general or limited partnership, the certificate of formation and operating agreement in the case of a limited liability company, the trust
instrument in the case of a trust, or similar governing documents in each case as amended. 
 “Holding Period” has
the meaning set forth in Section 6(c) hereof. 
 “Indemnified Party” has the meaning set forth in
Section 8(b) hereof. 
 “Independent Director” means a member of the Board who is
“independent” in accordance with the rules of the NYSE. 
 “Independent Valuation Advisor” means a
firm that is (i) engaged in the business of residential brokerage services and able to provide a broker opinion of value, (ii) not an Affiliate of Advisor and (iii) engaged by the Company with the approval of the Board, including a
majority of the Independent Directors, to confirm the reasonableness of the NAV calculated by the Advisor in accordance with the Valuation Guidelines. 

“Initial Term” has the meaning set forth in Section 10(a) hereof. 

“Intellectual Property” means all work product, documents, code, works of authorship, programs, manuals,
developments, processes, formulae, data, specifications, fixtures, tooling, equipment, supplies, processes, inventions, discoveries, improvements, trade secrets and know-how or similar rights. 

“Intellectual Property Rights” means the worldwide right, title, and interest in any Intellectual Property and any
goodwill appurtenant thereto, including, without limitation, all copyrights, copyright renewals or reversions, trademarks, trade names, trade dress rights, inventions, priority rights, patent rights, patents, and any other rights or protections in
connection therewith or related thereto. 
 “Invested Capital” shall mean the amount calculated by multiplying the
total number of shares of Common Stock issued by the Company by the original issue price for each share, reduced by the sum of (i) an amount equal to the total number shares of Common Stock repurchased from Stockholders by the Company
multiplied by the original issue price for each such repurchased share of Common Stock when initially purchased from the Company and (ii) the aggregate amount of special distributions paid to Stockholders upon the disposition or liquidation of
Investments. 

  
 3 

 “Investment Committee” has the meaning set forth in
Section 2(c)(i). 
 “Investment Guidelines” means the investment guidelines approved by the Board, a
copy of which is attached hereto as Exhibit A, as the same may amended, restated, modified, supplemented or waived pursuant to the approval of a majority of the entire Board (which must include a majority of the Independent
Directors). 
 “Investments” means any investments by the Company or the Operating Partnership in Target Assets or
other investments in which the Company or the Operating Partnership may acquire an interest, either directly or indirectly, including through an ownership interest in a Joint Venture, pursuant to the Investment Guidelines adopted by the Board from
time to time, other than short-term investments acquired for the purpose of cash management. 
 “Joint Venture”
means the joint venture, limited liability company, partnership or other entity pursuant to which the Company or the Operating partnership is a co-venturer or partner with respect to the ownership of any Investments. 

“Liquidation NAV” means the Company’s net asset value, calculated pursuant to the Valuation Guidelines, based
on the value received upon liquidation of the Investments rather than appraised value of the Investments. Liquidation NAV will be calculated at the end of the liquidation period prior to the distribution of the liquidation proceeds to the
Stockholders. 
 “Loans” means any indebtedness or obligations in respect of borrowed money or evidenced by bonds,
notes, debentures, deeds of trust, letters of credit or similar instruments, including mortgages and mezzanine loans. 

“Losses” has the meaning set forth in Section 8(a) hereof. 

“NAV” means the Company’s net asset value, calculated pursuant to the Valuation Guidelines. 

“NYSE” means The New York Stock Exchange. 

“Observer Members” has the meaning set forth in Section 2(c)(i). 

“Organization and Offering Expenses” means any and all costs and expenses incurred by or on behalf of the Company in
connection with the formation of the Company, the qualification and registration of any public or private offering of the Company’s securities, the registration of the Company’s securities under the Exchange Act, the preparation of
offering materials and the marketing and distribution of the Company’s securities, including, without limitation, expenses and taxes related to the filing, registration and qualification of the Company’s securities under federal and state
laws, including taxes and fees and accountants’ and attorneys’ fees. 
 “Operating Partnership” has the
meaning set forth in the Recitals. 
 “Partial Period” has the meaning set forth in Section 6(c)
hereof. 
 “Person” means any natural person, corporation, partnership, association, limited liability company,
estate, trust, joint venture, any federal, state, county or municipal government or any bureau, department or agency thereof or any other legal entity and any fiduciary acting in such capacity on behalf of the foregoing. 

  
 4 

 “PINTAR” shall mean Pintar Investment Company, LLC, or its affiliate.

 “PINTAR Asset Management Fees” shall mean the dollar amount of the asset management fees paid to PINTAR
pursuant to the joint venture agreement between PINTAR, the Operating Partnership and the other parties thereto. 

“QDII Average Annual Return” shall mean: ((i) the portion of the NAV allocable to the capital contributions of the
QDII Investor to the Company as of the end of the Accrual Period, plus the cumulative cash distributions paid to the QDII Investor by the Company during the Accrual Period, less the estimated US taxes associated with such distributions
determined based upon applying the Agreed Applicable Tax Rate, plus the portion of any PINTAR Asset Management Fees and the portion of any Asset Management Fees paid to the Advisor during the Accrual Period and allocable to the QDII Investor,
such allocation based on average common stock ownership during the Accrual Period, minus the issue price of the shares of the QDII Investor, divided by (ii) the issue price of the shares of the QDII Investor), divided by
(the number of days in the Accrual Period), multiplied by (365). 
 “QDII Investor” means the
HFT-Industrial Bank-CITIC Securities QDII One-To-Many Asset Management Plan. 
 “REIT” means a “real estate
investment trust” as defined under the Code. 
 “SCIA” means SC Investment Advisors Pte. Ltd., a Singapore
corporation, or its designated Affiliate. 
 “SEC” means the United States Securities and Exchange Commission.

 “Securities Act” means the Securities Act of 1933, as amended. 

“Stockholders” means the holders of the Common Stock. 

“Subsidiary” means (i) any subsidiary of the Company, (ii) any partnership the general partner of which is
the Company or any subsidiary of the Company, and (iii) any limited liability company the managing member of which is the Company or any subsidiary of the Company. For the avoidance of doubt, the Operating Partnership shall be deemed a
“Subsidiary.” 
 “Target Assets” means single family rental homes, subject to, and including, any
changes to the Investment Guidelines that may be approved by the Advisor and the Company from time to time. 

“Termination Date” means the date of termination of this Agreement or expiration of this Agreement in the event this
Agreement is not renewed for an additional term. 
 “US L.P.” means OPC Residential Properties Investor, L.P., a
Delaware limited partnership. 
 “US L.P. Average Annual Return” shall mean: ((i) the NAV of the assets of the
Company allocable to the capital contributions of the US L.P. to the Company at the end of the Accrual Period, plus the cumulative cash distributions paid by the Company to the US L.P. during the Accrual Period, less the estimated US
taxes associated with such distributions determined by applying the Agreed Applicable Tax Rate, plus the portion of any PINTAR Asset Management Fees and the portion of any Asset Management 

  
 5 

 
Fees paid to the Advisor during the Accrual Period and allocable to the US L.P., such allocation based on average common stock ownership during the Accrual Period, minus the issue price of
the limited partnership interests of the U.S. LP, divided by (ii) the issue price of the limited partnership interests of the US L.P.), divided by (the number of days in the Accrual Period), multiplied by (365). 

“Valuation Guidelines” means the valuation guidelines adopted by the Board, as amended from time to time, which
provide for confirmation by the Independent Valuation Advisor of the reasonableness of the NAV calculated by the Advisor. 

“Voting Members” has the meaning set forth in Section 2(c)(i). 

(i) As used herein, accounting terms relating to the Company and its Subsidiaries, if any, not defined in
Section 1(a) and accounting terms partly defined in Section 1(a), to the extent not defined, shall have the respective meanings given to them under GAAP.

(ii) 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, and Section references are to this Agreement unless otherwise specified. 

(iii) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such
terms. The words include, includes and including shall be deemed to be followed by the phrase “without limitation.” 

Section 2. Appointment and Duties of the Advisor; Investment Committee. 

(a) The Company and the Operating Partnership hereby appoint the Advisor to manage the investments and day-to-day operations of
the Company and its Subsidiaries, subject at all times to the further terms and conditions set forth in this Agreement. The Advisor hereby agrees to use its commercially reasonable efforts to perform each of the duties set forth
herein. The appointment of the Advisor shall be exclusive to the Advisor, except to the extent that the Advisor elects, in its sole and absolute discretion, subject to the terms of this Agreement, or is required hereby to cause the duties of
the Advisor as set forth herein to be provided by third parties. 
 (b) The Advisor, in its capacity as manager of the
investments and the operations of the Company, at all times will be subject to the supervision and direction of the Board and will have only such functions and authority as the Board may delegate to it, including, without limitation, managing the
Company’s business affairs in conformity with the Investment Guidelines and other policies that are approved and monitored by the Board. The Company and the Advisor hereby acknowledge the recommendation by the Advisor and the approval by
the Board of the Investment Guidelines, including, but not limited to, the Company’s investment strategy in the Target Assets. The Company and the Advisor hereby acknowledge and agree that, during the term of this Agreement, any proposed
changes to the Company’s investment strategy that would modify or expand the Target Assets may only be recommended by the Advisor and shall require the approval of the Board and the Investment Committee. 

(c) Investment Committee. 

(i) The Advisor will form an investment committee (“Investment Committee”), which will assist our Advisor in
overseeing our investment strategy and investment decisions. The Investment Committee will consist of six members, four of whom will be voting members (“Voting Members”) and two of whom will be observers (“Observer Members”). The
four Voting Members will be comprised at all times of three individuals who are officers or employees of the Advisor appointed by the 

  
 6 

 
Advisor and one member Affiliated with SCIA recommended by SCIA (the “SCIA Member”) and appointed by the Advisor. The two Observer Members will be recommended by SCIA and appointed by
the Advisor. The Advisor will have the power to remove any of the Voting Members, including the SCIA Member, and the Observer Members, and to select a replacement to fill any vacancy among the Voting Members and the Observer Members; provided that
the replacement for any SCIA Member or Observer Member will be appointed by the Advisor with SCIA’s recommendation. The Investment Committee will select a Chairman from among its Voting Members, who will preside over meetings of the Investment
Committee and have such other rights and responsibilities as are delegated to him or her by the Investment Committee. 

(ii) A quorum for purposes of any action taken by the Investment Committee will consist of three Voting Members. The approval
of any action taken by the Investment Committee will require the affirmative vote or consent of a majority of the three Voting Members comprising a quorum. The two Observer Members will have no right to a vote in any action taken by the Investment
Committee; provided, however, however the observer members will be permitted to participate in all meetings of the Investment Committee. The Investment Committee may take action by a vote at a meeting at which a quorum is present, or by a written
consent signed by the same number of members of the Investment Committee which would be required to take action by a vote at a meeting of the Investment Committee. Members of the Investment Committee may participate in meetings via telephone or
videoconference. 
 (iii) The Investment Committee will meet on a bi-weekly basis, or more frequently as is necessary, to
evaluate the Company’s overall investment strategy, potential investments and dispositions and changes in market conditions and to formulate investment recommendations for the Company for the following two-week period. The Investment Committee
will meet in order to, without limitation: 
  

	 	(A)	 set the acquisition investment matrix which will be used as the basis for the Company’s investments; 

 

	 	(B)	 review the Company’s prior investments and make changes as deemed necessary to the acquisition investment matrix; 

 

	 	(C)	 evaluate and approve any acquisition or disposition of a portfolio of investments that aggregates $5 million or more; and 

 

	 	(D)	 review on a quarterly basis the performance of the Company’s investments and the Company’s regional operating partners (including PINTAR)
and determine whether the investment strategy or operating partners should be changed. 

 (d) The Advisor
will be responsible for the day-to-day operations of the Company (which, for purposes of the Advisor’s responsibilities in this Agreement, includes its Subsidiaries) and will perform (or cause to be performed) such services and activities
relating to the investments and operations of the Company as may be appropriate, which may include, without limitation: 

(i) serving as the Company’s consultant with respect to the periodic review of the Investment Guidelines and other
parameters for the Company’s investments, financing activities and operations, which review shall occur no less than annually; 

(ii) identifying, investigating, analyzing and selecting possible investment opportunities and originating, acquiring,
structuring, negotiating, monitoring, financing, retaining, selling, negotiating for prepayment, restructuring or disposing of investments consistent with the Investment Guidelines, and making representations and warranties in connection therewith;

  
 7 

 (iii) with respect to prospective purchases, sales or exchanges of investments,
conducting negotiations on the Company’s behalf with sellers, purchasers, trustees, lenders, regulatory agencies and bodies, title companies, environmental consultants, primary dealers, custodians and brokers and, if applicable, their
respective agents, representatives and investment bankers, and owners of privately held real estate companies, including the execution, delivery and renewal of any financing documents and all offers, purchase and sale agreements, escrow documents
and any other agreements and/or instruments relating to the purchase or sale of properties on behalf of the Company; 
 (iv)
negotiating and entering into, on the Company’s behalf, repurchase agreements, interest rate swap agreements, agreements relating to borrowings under programs established by the U.S. Government and/or agencies thereunder, and other
agreements and instruments required for the Company to conduct the Company’s business; 
 (v) acting as a liaison to or
engaging and supervising, on the Company’s behalf and at the Company’s expense, independent contractors that provide investment banking, mortgage brokerage, residential home sales brokerage, other financial services, real estate services,
commercial services, due diligence services, underwriting review services, legal and accounting services, and all other services as may be required relating to the Company’s operations or investments (or potential investments); 

(vi) the conversion of the Company’s acquisitions into rental homes and the subsequent renovation, leasing, maintenance
and other property management of the Company’s rental homes, including through the engagement and supervision, on the Company’s behalf and at the Company’s expense, of property management companies responsible for such activities;

 (vii) coordinating and managing operations of any joint venture or co-investment interests held by the Company; 

(viii) providing executive and administrative personnel, office space and office services required in rendering services to
the Company; 
 (ix) administering the day-to-day operations and performing and supervising the performance of such other
administrative functions necessary to the Company’s management as may be agreed upon by the Advisor and the Board, including, without limitation, the collection of revenues and the payment of the Company’s debts and obligations and
maintenance of appropriate computer services to perform such administrative functions; 
 (x) communicating on the
Company’s behalf with the holders of any of the Company’s equity or debt securities as required to satisfy the reporting and other requirements of any governmental bodies or agencies and to maintain effective relations with such holders,
including annual meeting arrangements; 
 (xi) counseling the Company in connection with policy decisions to be made by the
Board; 
 (xii) evaluating and recommending to the Board hedging, financing and securitization strategies and engaging in
hedging, financing, borrowing and securitization activities on the Company’s behalf, consistent with such strategies as modified from time to time, while maintaining the Company’s qualification as a REIT and within the Investment
Guidelines; 

  
 8 

 (xiii) counseling the Company regarding the maintenance of its qualification as a
REIT and monitoring compliance with the various REIT qualification tests and other rules set forth in the Code and Treasury Regulations thereunder and using commercially reasonable efforts to cause the Company to continue to qualify for
taxation as a REIT for federal income tax purposes; 
 (xiv) counseling the Company regarding the maintenance of the
Company’s exemption from the status of an investment company required to register under the Investment Company Act, monitoring compliance with the requirements for maintaining such exemption and using commercially reasonable efforts to cause
the Company to maintain such exemption from such status; 
 (xv) collection of information and furnishing of reports
pertaining to the Company’s assets, interest rates and general economic conditions; 
 (xvi) monitoring the operating
performance of the Company’s investments and providing periodic review, evaluation and reports with respect thereto to the Board, including comparative information with respect to such operating performance and budgeted or projected operating
results; 
 (xvii) investing and reinvesting any moneys and securities of the Company (including investing in short-term
investments pending investment in other investments, payment of fees, costs and expenses, or payments of dividends or distributions to the Company’s stockholders and partners) and advising the Company as to the Company’s capital structure
and capital raising; 
 (xviii) causing the Company to retain qualified registered independent accountants and legal
counsel, as applicable, to assist in developing appropriate accounting procedures and systems, internal controls and other compliance procedures and testing systems with respect to financial reporting obligations and compliance with the provisions
of the Code and the Treasury Regulations applicable to REITs and, if applicable, taxable REIT subsidiaries; 
 (xix)
assisting the Company in qualifying to do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses; 

(xx) assisting the Company in complying with all regulatory requirements applicable to the Company in respect of the
Company’s business activities, including preparing or causing to be prepared all financial statements as may be required under applicable regulations and contractual undertakings and, if and when applicable, all reports and documents, if any,
required under the Exchange Act; 
 (xxi) assisting the Company in taking all necessary actions to enable the Company to
make required tax filings and reports, including soliciting information from stockholders to the extent required by the provisions of the Code and Treasury Regulations applicable to REITs; 

(xxii) obtaining insurance in connection with the operation of the Company’s business; 

(xxiii) handling and resolving all claims, disputes or controversies (including all litigation, arbitration, settlement or
other proceedings or negotiations) in which the Company may be involved or to which the Company may be subject arising out of the Company’s day-to-day operations (other than with the Advisor or its Affiliates), including supervising claims
filed under any insurance policy, subject to such limitations or parameters as may be imposed from time to time by the Board; 

  
 9 

 (xxiv) using commercially reasonable efforts to cause expenses incurred by the
Company or the Company’s behalf to be commercially reasonable or commercially customary and within any budgeted parameters or expense guidelines set by the Board from time to time; 

(xxv) advising on, and obtaining on behalf of the Company, appropriate credit facilities or other financings for the
investments of the Company consistent with the Investment Guidelines; 
 (xxvi) serving as the Company’s consultant
with respect to decisions regarding any of the Company’s financings, hedging activities or borrowings undertaken by the Company, including (1) assisting the Company in developing criteria for debt and equity financing that is specifically
tailored to the Company’s investment objectives, and (2) advising the Company with respect to obtaining appropriate financing for the Company’s investments; 

(xxvii) engage the Independent Valuation Advisor and provide such firm with all information appropriate to enable the firm to
confirm the reasonableness of the Advisor’s NAV calculation; 
 (xxviii) within 90 days following the end of each
calendar year, or such other time as requested by the Board, including in connection with a liquidation of the Company and the Operating Partnership, calculate the NAV utilizing the Valuation Guidelines and provide all relevant information and
supporting materials concerning the calculation to the Board for their approval, including the confirmation by the Independent Valuation Advisor of the reasonableness of such calculation; 

(xxix) performing such other services and functions as may be required from time to time for the management of, and other
activities relating to, the Company’s assets, business and operations of the Company as the Board shall reasonably request or as the Advisor shall deem appropriate under the particular circumstances; 

(xxx) forming, dissolving, reorganizing, restructuring or merging corporate or other entities with respect to any of the
actions in clauses (i) through (xxvii) above; and 
 (xxxi) using commercially reasonable efforts to cause the
Company to comply with all applicable laws and regulations. 
 (e) For the period and on the terms and conditions set forth
in this Agreement, the Company and each of the Subsidiaries hereby constitutes, appoints and authorizes the Advisor as its true and lawful agent and attorney-in-fact, in its name, place and stead, to negotiate, execute, deliver and enter into such
real estate purchase agreements, property management agreements, title insurance agreements, leases, finance agreements and arrangements and securities repurchase and reverse repurchase agreements and arrangements, brokerage agreements, interest
rate swap agreements, “to be announced” forward contracts, agreements relating to borrowings under programs established by the U.S. Government and/or any agencies thereunder and such other agreements, instruments and authorizations on
their behalf, on such terms and conditions as the Advisor, acting in its sole and absolute discretion (but subject to the terms of this Agreement), deems necessary or appropriate. This power of attorney is deemed to be coupled with an interest. 

(f) The Advisor may retain, for and on behalf, and at the sole cost and expense, of the Company, such services of the persons
and firms referred to in Section 7(b) hereof as the Advisor deems necessary or advisable in connection with the management and operations of the Company. In performing its duties under this Section 2, the Advisor shall be
entitled to rely reasonably on qualified experts and professionals (including, without limitation, accountants, legal counsel and other professional service providers) hired by the Advisor at the Company’s sole cost and expense. 

  
 10 

 (g) The Advisor shall refrain from any action that, in its sole judgment made in
good faith, (i) is not in compliance with the Investment Guidelines, (ii) would adversely and materially affect the qualification of the Company as a REIT under the Code, or (iii) would violate any law, rule or regulation of any
governmental body or agency having jurisdiction over the Company or that would otherwise not be permitted by the applicable Governing Instruments. If the Advisor is ordered to take any action by the Board, the Advisor shall promptly notify the
Board if it is the Advisor’s judgment that such action would adversely and materially affect such status or violate any such law, rule or regulation or Governing Instruments. Notwithstanding the foregoing, neither the Advisor nor any
of its Affiliates shall be liable to the Company, the Board, or the Company’s stockholders for any act or omission by the Advisor or any of its Affiliates, except as provided in Section 8 of this Agreement. 

(h) The Company (including the Board) agrees to take all actions reasonably required to permit and enable the Advisor to carry
out its duties and obligations under this Agreement, including, without limitation, all steps reasonably necessary to allow the Advisor to file any registration statement or other filing required to be made under the Securities Act, Exchange Act,
Code or other applicable law, rule or regulation on behalf of the Company in a timely manner. The Company further agrees to use commercially reasonable efforts to make available to the Advisor all resources, information and materials
reasonably requested by the Advisor to enable the Advisor to satisfy its obligations hereunder, including its obligations to deliver financial statements and any other information or reports with respect to the Company. 

(i) As frequently as the Advisor may deem reasonably necessary or advisable, or at the direction of the Board, the Advisor
shall prepare, or, at the sole cost and expense of the Company, cause to be prepared, any reports and other information relating to any proposed or consummated investment as may be reasonably requested by the Company. 

(i) The Advisor shall prepare, or, at the sole cost and expense of the Company, cause to be prepared, all reports, financial
or otherwise, with respect to the Company reasonably required by the Board in order for the Company to comply with its Governing Instruments, or any other materials required to be filed with any governmental body or agency, and shall prepare, or, at
the sole cost and expense of the Company, cause to be prepared, all materials and data necessary to complete such reports and other materials, including, without limitation, an annual audit of the Company’s books of account by a nationally
recognized independent accounting firm. 
 (ii) The Advisor shall prepare, or, at the sole cost and expense to the Company,
cause to be prepared, regular reports for the Board to enable the Board to review the Company’s acquisitions, portfolio composition and characteristics, credit quality, performance and compliance with the Investment Guidelines and policies
approved by the Board. 
 (j) Officers, employees and agents of the Advisor and its Affiliates may serve as directors,
officers, agents, nominees or signatories for the Company or any of its Subsidiaries, to the extent permitted by their Governing Instruments, by any resolutions duly adopted by the Board. When executing documents or otherwise acting in such
capacities for the Company or any of its Subsidiaries, such Persons shall indicate in what capacity they are executing on behalf of the Company or any of its Subsidiaries. Without limiting the foregoing, while this Agreement is in effect, the
Advisor will provide the Company with a management team, including a Chief Executive Officer or President or similar positions, along with appropriate support personnel, to provide the management services to be provided by the Advisor to the Company
hereunder, who shall devote such of their time to the management of the Company as necessary and appropriate, commensurate with the level of activity of the Company from time to time. 

  
 11 

 (k) The Advisor shall provide such internal audit, compliance and control
services as may be required for the Company to comply with applicable law (including the Securities Act and Exchange Act), regulation (including SEC regulations) and as otherwise reasonably requested by the Company or its Board from time to time.

 Section 3. Additional Activities of the Advisor; Non-Solicitation; Restrictions. 

(a) Nothing in this Agreement shall (i) prevent the Advisor or any of its Affiliates, members, officers, directors or
employees, from engaging in other businesses or from rendering services of any kind to any other Person or entity, whether or not the investment objectives or policies of any such other Person or entity are similar to those of the Company, or
(ii) in any way bind or restrict the Advisor or any of its Affiliates, members, officers, directors or employees from buying, selling or trading any securities or investments for their own accounts or for the account of others for whom the
Advisor or any of its Affiliates, members, officers, directors or employees may be acting. The Company shall have the benefit of the Advisor’s judgment and commercially reasonable effort in rendering services hereunder and, in furtherance
of the foregoing, the Advisor shall not undertake activities that, in its sole judgment made in good faith, will adversely affect the performance of its obligations under this Agreement. 

(b) During the period commencing on the date hereof and ending one year following the termination of this Agreement, the
Company shall not, without the Advisor’s prior written consent, directly or indirectly (a) solicit or encourage any person to leave the employment or other service of the Advisor or its Affiliates; or (b) hire on behalf of the Company
or any other person or entity, any person who has left its employment within the one year period following the termination of that person’s employment the Advisor or its Affiliates. During the period commencing on the date hereof through and
ending one year following the Termination Date, the Company will not, whether for its own account or for the account of any other Person, intentionally interfere with the relationship of the Advisor or its Affiliates with, or endeavor to entice away
from the Advisor or its Affiliates, any person who during the term of the Agreement is, or during the preceding one-year period, was a tenant, co-investor, co-developer, joint venturer or other customer of the Advisor or its Affiliates. The Company
acknowledges and agrees that, in addition to any damages, the Advisor shall be entitled to equitable relief for any violation of this Section 3(b) by the Company, including, without limitation, injunctive relief. 

(c) The Advisor shall use such names, trademarks and logos as may be adopted and designated by the Advisor with respect to and
in conjunction with the operation and management of the Company and other properties managed by the Advisor; provided, however, such names, trademarks and logos shall remain the exclusive property of the Advisor. In the event this
Agreement is terminated for any reason, or expires, all rights of the Company to use such names and such trademarks and logos shall be immediately terminated. 

(d) All Intellectual Property created or developed in connection with the Advisor’s performance of this Agreement or
otherwise and the Intellectual Property Rights associated therewith shall be the sole and exclusive property of the Advisor. The Advisor does hereby grant the Company a non-exclusive, worldwide, fully paid up, royalty free, non-sub-licensable,
non-transferable license and right to use the Intellectual Property made or used in connection with the Advisor’s performance of this Agreement for its business purposes. The Company will, upon request of the Advisor, do execute, acknowledge
and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be requested by the Advisor to carry out the intent of this Agreement
or to otherwise perfect, record, confirm, or enforce the Advisor’s rights in and to the Intellectual Property. 

  
 12 

 Section 4. Agency. The Advisor shall act as agent of the
Company and the Subsidiaries in making, acquiring, financing and disposing of investments of the Company, disbursing and collecting the funds of the Company and the Subsidiaries, paying the debts and fulfilling the obligations of the Company and the
Subsidiaries, supervising the performance of professionals engaged by or on behalf of the Company and the Subsidiaries and handling, prosecuting and settling any claims of or against the Company and the Subsidiaries, the Board, holders of the
Company’s securities or representatives or assets of the Company and the Subsidiaries. 
 Section 5. Bank
Accounts. At the direction of the Board, the Advisor may establish and maintain one or more bank accounts in the name of the Company or any Subsidiary, and may collect and deposit into any such account or accounts, and disburse funds from
any such account or accounts, under such terms and conditions as the Board may approve; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Board and, upon request, to the auditors of the
Company or any Subsidiary. 
 Section 6. Compensation. 

(a) Asset Management Fees. The Advisor shall receive an annual Asset Management Fee payable, if earned, by the Operating
Partnership. The Asset Management Fees will be paid, if earned, within 15 Business Days of the annual approval by the Board, including a majority of the Independent Directors, of the NAV as of the last day of the calendar year following the
Independent Valuation Advisor providing confirmation of the reasonableness of the calculated NAV. The amount of the annual Asset Management Fee, if any, payable shall be based on the QDII Average Annual Return and the US L.P. Average Annual Return
as of the end of each Accrual Period, as follows: 
 (i) No Asset Management Fee is payable if either of the
QDII Average Annual Return or the US L.P. Average Annual Return for the Accrual Period is less than 2.0%; 

(ii) An Asset Management Fee equal to 0.5% of the NAV as of the end of the Accrual Period is payable if both
the QDII Average Annual Return and the US L.P. Average Annual Return for such Accrual Period is between 2.0% and 5.0%; and 

(iii) An Asset Management Fee equal to 1.0% of the NAV as of the end of the Accrual Period is payable if both
the QDII Average Annual Return and the US L.P. Average Annual Return for such Accrual Period is greater than or equal to 5.0%. 

In the event that the QDII Average Annual Return and the US L.P. Average Annual Return for an Accrual Period differ to a
degree which would result in the application of different Asset Management Fee calculations pursuant to Section 6(a)(ii) and 6(a)(iii) above (e.g., if the QDII Average Annual Return for an Accrual Period is between 2.0% and 5.0% and the
US L.P. Average Annual Return for such Accrual Period is greater than 5.0%), then the lesser of the average annual return amounts will be used for all purposes to determine the amount of the Asset Management Fee payable for such Accrual Period. 

The percentage of the NAV for a given Accrual Period set forth in Section 6(a)(ii) and Section 6(a)(iii) above is
referred to herein as the “Applicable Rate.” 

  
 13 

 (b) Asset Management Catch-Up Fee. 

(i) If, upon the liquidation of the Company and the Operating Partnership, both the QDII Average Annual Return
and the US L.P. Average Annual Return for the period (the “Holding Period”) from the date Invested Capital was initially invested in the Company through the completion of the liquidation of the Company and the Operating Partnership, as
calculated based on the Liquidation NAV, is greater than 2.0% and less than 5.0%, the Operating Partnership shall pay the Advisor an Asset Management Catch-Up Fee equal to, for each calendar year (or such other applicable period) during the Holding
Period: (x) the difference, if any, between 0.5% and the Applicable Rate for such calendar year (or such other applicable period), multiplied by (y) the Liquidation NAV. 

(ii) If, upon the liquidation of the Company and the Operating Partnership, both the QDII Average Annual Return
and the US L.P. Average Annual Return for the Holding Period, as calculated based on the Liquidation NAV, is equal to or greater than 5.0%, the Operating Partnership shall pay the Advisor an Asset Management Catch-Up Fee equal to, for each calendar
year (or such other applicable period) during the Holding Period: (x) the difference, if any, between 1.0% and the Applicable Rate for such calendar year (or such other applicable period), multiplied by (y) the Liquidation NAV. 

In the event that the QDII Average Annual Return and the US L.P. Average Annual Return for the Holding Period differ to a
degree which would result in the application of different Asset Management Catch-Up Fee calculations pursuant to Section 6(b)(i) and 6(b)(ii) above (e.g., if the QDII Average Annual Return for the Holding Period is between 2.0% and 5.0%
and the US L.P. Average Annual Return for the Holding Period is greater than 5.0%), then the lesser average annual return amount will be used for all purposes to determine the amount of the Asset Management Catch-Up Fee payable. 

(c) Proration. In the event this Agreement is terminated or its term expires without renewal, the Asset Management Fee
and the Asset Management Catch-Up-Fee will be calculated and due and payable after the calculation of NAV as of the Termination Date. If the fees are payable with respect to any partial calendar month or calendar year (a “Partial Period”),
the fee will be prorated based on the number of days during such Partial Period. 
 (d) The Advisor will deposit the Asset
Management Fees and Asset Management Catch-Up Fees it is paid pursuant to this Section 6 and any promote interest or other distribution it may be paid by the Operating Partnership pursuant to the terms of the limited partnership agreement of
the Operating Partnership into such accounts as the QDII Investor and the U.S. LP or their respective Affiliates may respectively designate, for review and eventual remittance back to the Advisor. 

Section 7. Expenses of the Company and Partnership. 

(a) In addition to the compensation paid to the Advisor pursuant to Section 6 hereof, the Company shall pay
directly or reimburse the Advisor for all of the expenses paid or incurred by the Advisor or its Affiliates in connection with the services it provides to the Company and its Subsidiaries pursuant to this Agreement, including, but not limited to:

 (i) Organization and Offering Expenses; provided, however, that all Formation Costs, as defined in the Expense
Reimbursement Agreement, shall be reimbursed in accordance with the terms of the Expense Reimbursement Agreement; 
 (ii)
expenses in connection with the acquisition, disposition and financing of the investments of the Company and its Subsidiaries; 

  
 14 

 (ii) costs of legal, tax, accounting, consulting, auditing and other similar
services rendered for the Company by providers retained by the Advisor or, if provided by the Advisor’s personnel, in amounts which are no greater than those which would be payable to outside professionals or consultants engaged to perform such
services pursuant to agreements negotiated on an arm’s-length basis; 
 (iii) the compensation and expenses of the
Company’s independent directors and the cost of liability insurance to indemnify the Company’s directors and officers; 

(iv) costs associated with the establishment and maintenance of any of the Company’s credit facilities, other financing
arrangements, or other indebtedness of the Company (including commitment fees, accounting fees, legal fees, closing and other similar costs) or any of the Company’s securities offerings; 

(v) expenses connected with communications to holders of the Company’s securities or of the Subsidiaries and other
bookkeeping and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including, without limitation, all costs of
preparing and filing required reports with the SEC, costs of preparing, printing and mailing the Company’s annual report to the Company’s stockholders and proxy materials with respect to any meeting of the Company’s stockholders; 

(vi) personnel and related employment costs incurred by the Advisor or its Affiliates in performing the services hereunder,
including but not limited to reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services, provided that the Advisor will not seek reimbursement for personnel costs of individuals who
serve as executive officers of the Company; 
 (vii) expenses incurred by managers, officers, personnel and agents of the
Advisor for travel on the Company’s behalf and other out-of-pocket expenses incurred by managers, officers, personnel and agents of the Advisor in connection with the purchase, financing, refinancing, sale or other disposition of an investment
or establishment and maintenance of any of the Company’s securities offerings; 
 (viii) the costs of maintaining
compliance with all federal, state and local rules and regulations or any other regulatory agency; 
 (ix) all taxes
and license fees; 
 (x) all insurance costs incurred in connection with the operation of the Company’s business except
for the costs attributable to “errors and omissions” insurance that the Advisor elects to carry for itself and its personnel; 

(xi) costs and expenses incurred in contracting with third parties; 

(xii) expenses connected with payments of distributions or dividends in cash or any other form authorized or caused to be made
by the Board; 
 (xiii) expenses relating to any office(s) or office facilities, including, but not limited to,
disaster backup recovery sites and facilities, maintained for the Company or the investments of the Company and its Subsidiaries separate from the office or offices of the Advisor; 

  
 15 

 (xiv) any judgment or settlement of pending or threatened proceedings (whether
civil, criminal or otherwise) against the Company or any Subsidiary, or against any trustee, director, partner, member or officer of the Company or of any Subsidiary in his capacity as such for which the Company or any Subsidiary is required to
indemnify such trustee, director, partner, member or officer by any court or governmental agency; and 
 (xv) all other
expenses actually incurred by the Advisor (except as otherwise specified herein) which are reasonably necessary for the performance by the Advisor of its duties and functions under this Agreement. 

(b) Costs and expenses set forth in this Section 7 incurred by the Advisor on behalf of the Company or Partnership shall
be reimbursed monthly to the Advisor. The Advisor shall prepare a written statement in reasonable detail documenting the costs and expenses of the Company and those incurred by the Advisor on behalf of the Company during each month, and shall
deliver such written statement to the Company within thirty (30) days after the end of each month. The Company shall pay all amounts payable to the Advisor pursuant to this Section 7(b) within five (5) Business Days after
the receipt of the written statement without demand, deduction, offset or delay. Cost and expense reimbursement to the Advisor shall be subject to adjustment in connection with the annual audit of the Company. The provisions of this
section shall survive the expiration or earlier termination of this Agreement to the extent such expenses have previously been incurred or are incurred in connection with such expiration or termination. 

Section 8. Limits of the Advisor’s Responsibility. 

(a) The Advisor assumes no responsibility under this Agreement other than to render the services called for hereunder in good
faith and shall not be responsible for any action of the Board in following or declining to follow any advice or recommendations of the Advisor, including as set forth in the Investment Guidelines. The Advisor and its Affiliates and members,
and the directors, officers, employees and stockholders of the Advisor and its Affiliates and members, will not be liable to the Company, any Subsidiary, the Board, the Company’s stockholders or any Subsidiary’s stockholders or partners
for any acts or omissions by the Advisor or its officers, employees or Affiliates performed in accordance with and pursuant to this Agreement, except by reason of acts or omission constituting bad faith, willful misconduct, gross negligence or
reckless disregard of their respective duties under this Agreement. The Company and the Operating Partnership shall, to the full extent lawful, reimburse, indemnify and hold harmless the Advisor, its Affiliates and members, and the directors,
officers, employees and stockholders of the Advisor and its Affiliates (each, an “Advisor Indemnified Party”), of and from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including
reasonable attorneys’ fees) (collectively “Losses”), to the extent such Losses are not fully reimbursed by insurance, in respect of or arising from any acts or omissions of such Advisor Indemnified Party performed in good faith under
this Agreement and not constituting bad faith, willful misconduct or reckless disregard of duties of such Advisor Indemnified Party under this Agreement.

(b) The Advisor shall, to the full extent lawful, reimburse, indemnify and hold harmless the Company and the Operating
Partnership and the directors, officers and stockholders of the Company and each Person, if any, controlling the Company (each, a “Company Indemnified Party”; an Advisor Indemnified Party and a Company Indemnified Party are each sometimes
hereinafter referred to as an “Indemnified Party”), of and from any and all Losses in respect of or arising from (i) any acts or omissions of the Advisor constituting bad faith, willful misconduct, gross negligence or reckless
disregard of duties of the Advisor performed under this Agreement or (ii) any claims by the Advisor’s employees relating to the terms and conditions of their employment by the Advisor. 

  
 16 

 (c) In case any such claim, suit, action or proceeding (a “Claim”) is
brought against any Indemnified Party in respect of which indemnification may be sought by such Indemnified Party pursuant hereto, the Indemnified Party shall give prompt written notice thereof to the indemnifying party, which notice shall include
all documents and information in the possession of or under the control of such Indemnified Party reasonably necessary for the evaluation or defense of such Claim and shall specifically state that indemnification for such Claim is being sought under
this Section; provided, however, that the failure of the Indemnified Party to so notify the indemnifying party shall not limit or affect such Indemnified Party’s rights other than pursuant to this Section. Upon receipt of such
notice of Claim (together with such documents and information from such Indemnified Party), the indemnifying party shall, at its sole cost and expense, in good faith defend any such Claim with counsel reasonably satisfactory to such Indemnified
Party, which counsel may, without limiting the rights of such Indemnified Party pursuant to the next succeeding sentence of this Section, also represent the indemnifying party in such investigation, action or proceeding. In the alternative,
such Indemnified Party may elect to conduct the defense of the Claim, if (i) such Indemnified Party reasonably determines that the conduct of its defense by the indemnifying party could be materially prejudicial to its interests, (ii) the
indemnifying party refuses to assume such defense (or fails to give written notice to the Indemnified Party within ten (10) days of receipt of a notice of Claim that the indemnifying party assumes such defense), or (iii) the indemnifying
party shall have failed, in such Indemnified Party’s reasonable judgment, to defend the Claim in good faith. The indemnifying party may settle any Claim against such Indemnified Party without such Indemnified Party’s consent, provided
(i) such settlement is without any Losses whatsoever to such Indemnified Party, (ii) the settlement does not include or require any admission of liability or culpability by such Indemnified Party and (iii) the indemnifying party
obtains an effective written release of liability for such Indemnified Party from the party to the Claim with whom such settlement is being made, which release must be reasonably acceptable to such Indemnified Party, and a dismissal with prejudice
with respect to all claims made by the party against such Indemnified Party in connection with such Claim. The applicable Indemnified Party shall reasonably cooperate with the indemnifying party, at the indemnifying party’s sole cost and
expense, in connection with the defense or settlement of any Claim in accordance with the terms hereof. If such Indemnified Party is entitled pursuant to this Section to elect to defend such Claim by counsel of its own choosing and so
elects, then the indemnifying party shall be responsible for any good faith settlement of such Claim entered into by such Indemnified Party. Except as provided in the immediately preceding sentence, no Indemnified Party may pay or settle any
Claim and seek reimbursement therefor under this Section. 
 (d) The provisions of this Section 8 shall survive
the expiration or earlier termination of this Agreement. 
 Section 9. No Joint Venture. The Company and
the Operating Partnership on the one hand and the Advisor or its Affiliates and members on the other hand are not partners or joint venturers with each other and nothing herein shall be construed to make them such partners or joint venturers or
impose any liability as such on either of them. 
 Section 10. Term; Renewal; Termination. 

(a) This Agreement shall become effective on the date hereof and shall continue in operation, unless terminated in accordance
with the terms hereof, until the first anniversary of the date hereof (the “Initial Term”). After the Initial Term, this Agreement shall be deemed renewed automatically each year for an additional one-year period (an “Automatic
Renewal Term”) unless the Company or the Advisor elects not to renew this Agreement in accordance with Section 10(b) or Section 10(c), respectively, or this Agreement is terminated pursuant to
Section 10(d). 

  
 17 

 (b) No later than 90 days prior to the expiration of the Initial Term or any
Automatic Renewal Term, upon the affirmative vote of a majority of the Board, the Company may, without cause, deliver written notice to the Advisor informing it of the Company’s intention to decline to renew this Agreement, whereupon this
Agreement shall not be renewed and extended and this Agreement shall terminate effective on the anniversary date of this Agreement next following the delivery of such notice. The Company may terminate this Agreement at any time for cause pursuant to
Section 10(d) hereof. 
 (c) No later than 90 days prior to the expiration of the Initial Term or the then
current Automatic Renewal Term, the Advisor may, without cause, deliver written notice to the Company informing it of the Advisor’s intention to decline to renew this Agreement, whereupon this Agreement shall not be renewed and extended and
this Agreement shall terminate effective on the anniversary date of this Agreement next following the delivery of such notice.

(d) The Company may terminate this Agreement effective upon at least 30 days’ prior written notice from the Company to
the Advisor (i) for Cause, (ii) upon the commencement of any proceeding relating to the Advisor’s Bankruptcy or insolvency, including an order for relief in an involuntary bankruptcy case or the Advisor authorizing or filing a
voluntary bankruptcy petition, or (iii) upon the dissolution of the Advisor. The Advisor may terminate this Agreement effective upon at least 30 days’ prior written notice to the Company in the event that the Company shall default in the
performance or observance of any material term, condition or covenant contained in this Agreement and such default shall continue for a period of 30 days after written notice thereof specifying such default and requesting that the same be remedied
in such 30-day period. 
 (e) The provisions of Section 3(b), Section 6, Section 7,
Section 8, Section 11 and Section 13 of this Agreement shall survive a nonrenewal or termination of this Agreement pursuant to this Section 10. 

Section 11. Payments To and Duties of Advisor Upon Termination.

The Advisor shall be entitled to receive within 30 days after the effective date of the termination of this Agreement all
unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this Agreement. Upon any such termination, the Advisor shall promptly: 

(a) after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled, pay over to the
Company or a Subsidiary all money collected and held for the account of the Company or a Subsidiary pursuant to this Agreement; 

(b) deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all
money held by it, covering the period following the date of the last accounting furnished to the Board with respect to the Company and any Subsidiaries; 

(c) deliver to the Board all property and documents of the Company and any Subsidiaries then in the custody of the Advisor;
and 
 (d) reasonably cooperate with the Company in executing an orderly transition of the management of the Company’s
business to a new advisor. 
 Section 12. Assignments. 

This Agreement may be assigned by the Advisor to an Affiliate only with the prior written approval of the Board. The Advisor
may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the approval of the Board. This Agreement shall not be 

  
 18 

 
assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation, limited partnership or other organization which is a successor to
all of the assets, rights and obligations of the Company, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 

Section 13. Miscellaneous. 

(a) Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall
be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered against receipt or upon actual receipt of (i) personal delivery, (ii) delivery by
reputable overnight courier, (iii) delivery by facsimile transmission with telephonic confirmation or (iv) delivery by registered or certified mail, postage prepaid, return receipt requested, addressed as set forth below (or to such other
address as may be hereafter notified by the respective parties hereto in accordance with this Section 13): 

  
 19 

			
	 The Company:
	  	 OPC RESIDENTIAL PROPERTIES TRUST, INC.

10250 Constellation Boulevard, Suite 2770

Los Angeles, CA, 90067
 Telephone:
310.728.1201
 Attention: Charles P. Toppino

		
	 The Advisor:
	  	 OPC REIT MANAGEMENT, LLC

10250 Constellation Boulevard, Suite 2770

Los Angeles, CA, 90067
 Telephone:
310.728.1201
 Attention: Charles P. Toppino

		
	 with a copy to:
	  	 ALSTON & BIRD, LLP

1201 West Peachtree Street

Atlanta, Georgia 30309
 Telephone:
404.881.4417
 Attention: Rosemarie A. Thurston

 (b) Binding Nature of Agreement; Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns as provided herein. 

(c) Integration. This Agreement contains the entire agreement and understanding among the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter
hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 

(d) Amendments. This Agreement, nor any terms hereof, may not be amended, supplemented or modified except in an
instrument in writing executed by the parties hereto. 
 (e) GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

(f) WAIVER OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A
TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

(g) No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of a party
hereto, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 

  
 20 

 (h) Costs and Expenses. Each party hereto shall bear its own costs
and expenses (including the fees and disbursements of counsel and accountants) incurred in connection with the negotiations and preparation of and the closing under this Agreement, and all matter incident thereto. 

(i) Section Headings. The section and subsection headings in this Agreement are for convenience in reference
only and shall not be deemed to alter or affect the interpretation of any provisions hereof. 
 (j)
Counterparts. This Agreement may be executed by the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same
instrument. 
 (k) Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 21 

 IN WITNESS WHEREOF, each of the parties hereto has executed this Advisory
Agreement as of the date first written above. 
  

			
	 OPC RESIDENTIAL PROPERTIES TRUST, INC.

		
	 By:
	 	  

	 Name:
	 	 Charles P. Toppino

	 Title:
	 	 President

	
	 OPC RESIDENTIAL PROPERTIES, L.P.

	
	 By: OPC RESIDENTIAL PROPERTIES TRUST, INC., its general partner

		
	 By:
	 	  

	 Name:
	 	 Charles P. Toppino

	 Title:
	 	 President

	
	 OPC REIT MANAGEMENT, LLC

		
	 By:
	 	  

	 Name:
	 	 Robert D. Morgan

	 Title:
	 	 Chief Financial Officer

  

  
 22 

 Exhibit A 

Investment Guidelines 
  

	 	1.	 No investment shall be made that would cause the Company to fail to qualify as a REIT under the Code. 

 

	 	2.	 The Company’s investments shall be in the Target Assets. 

 

	 	3.	 Until appropriate investments in the Target Assets are identified, the Advisor may invest any excess cash reserves of the Company, including the
proceeds of any future offerings of the Company’s securities, in interest-bearing, short-term investments, subject to the requirements for the Company’s qualification as a REIT under the Code. 

 

	 	4.	 Any investment or series of related investments by the Company in excess of $10 million require the prior approval of the Board.

 These Investment Guidelines may be amended, restated, modified, supplemented or waived by the Board (which must include
the Independent Directors) without the approval of the Company’s stockholders. 

  
 23

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