Document:

Exhibit 10.1

 

	
        This instrument prepared by and after

        recording return
        to:

        Kellee A. Padgett

        Holt Ney Zatcoff & Wasserman, LLP

        100 Galleria Parkway

        Suite 1800

        Atlanta, Georgia 30339

        (770) 956-9600 
	 

 

RECIPROCAL EASEMENTS AGREEMENT

 

THIS RECIPROCAL EASEMENTS
AGREEMENT (the “Agreement”) is made and entered into this 3rd day of November, 2014 (the
“Effective Date”), by and between HIGHWAY NINE INVESTORS, LLC, a Georgia limited liability company (”Highway
Nine”), and ROBERTS PROPERTIES RESIDENTIAL, L.P., a Georgia limited partnership (“Roberts”).

 

W I T N E S S E T H:

 

WHEREAS, Highway Nine owns
certain real property located in Forsyth County, Georgia, described on Exhibit A attached hereto and made a part hereof
(the “Commercial Parcel”); and

 

WHEREAS, Roberts owns certain
real property located in Forsyth County, Georgia, described on Exhibit B attached hereto and made a part hereof, located
adjacent to the Commercial Parcel (the “Apartment Parcel,” the Commercial Parcel and the Apartment Parcel
hereinafter are collectively referred to as the “Parcels” and in the singular as a “Parcel”);
and

 

WHEREAS, Roberts intends
to develop an apartment community (the “Apartments”) on the Apartment Parcel, and in connection therewith
Highway Nine and Roberts desire to enter into this Agreement to create certain easements as hereinafter specified.

 

    	 

    	 

    

NOW, THEREFORE, for and in consideration of the premises, Ten and No/100 Dollars ($10.00) and other good and valuable consideration
in hand paid by each party hereto to the other party hereto, the receipt and sufficiency of which are hereby acknowledged prior
to the signing and sealing of this Agreement, Highway Nine and Roberts, intending to be legally bound, do hereby agree as follows:

 

1.                 
Recital of Facts. The foregoing recital of facts is hereby incorporated herein to the same extent as if hereinafter
fully set forth.

 

2.                 
Soil Deposit and Grading Easements.

 

(a)      Highway Nine does
hereby grant, bargain, sell, and convey unto Roberts a temporary, non-exclusive easement on, over, across and through the Commercial
Parcel, to allow Roberts, at Roberts’ sole cost and expense, to deposit on the Commercial Parcel soil removed from the Apartment
Parcel to provide fill dirt for Highway Nine’s development on the Commercial Parcel (the “Soil Deposit Easement”).

 

(b)      Highway Nine does
hereby grant, bargain, sell and convey unto Roberts a temporary, non-exclusive easement (the “Grading Easement”)
on, over, across and through the Commercial Parcel, for the purposes of grading and shaping of the Commercial Parcel (the “Grading
Work”), for the benefit of the Commercial Parcel, together with the right of entry into and upon the Commercial Parcel
for the purpose of effecting the foregoing rights, privileges and easements. Roberts shall have the right to cut away and keep
clear, grub, remove and dispose of all trees and undergrowth and to remove and dispose of all obstructions now on the Commercial
Parcel. Any timber removed from the Commercial Parcel by Roberts during the performance of the Grading Work shall become the sole
property of Roberts, and Roberts shall have the right to sell such timber to third parties. In consideration of the Soil Deposit
Easement, the Grading Work and all other work required as a result of completing the Grading Work, including but not limited to,
clearing, grubbing, grinding, topsoil export, cut/fill, erosion control and construction of a temporary pond shall be performed
by Roberts at Roberts’ expense. Roberts agrees to grade the Commercial Parcel to within 0.2 feet of the grading plan attached
hereto as Exhibit C and made a part hereof (the “Grading Plan”) and to adhere to the following
specifications:

 

	 	i.	Strip and dispose of offsite all topsoil and unsuitable materials
from within the disturbed areas of the Commercial Parcel.
	 	 	 
	 	ii.	 Materials selected for use as structural fill must be free
of organic debris, waste construction debris, and other deleterious materials. These materials must not contain rocks having a
diameter greater than four (4) inches.
	 	 	 
	 	iii.	 The following soils represented by their uses group symbols
are suitable for use as structural fill: (SM), (ML), and (CL). The following soil types are also suitable: (SW), (SP), (SC), (SP-SM),
and (SP-SC). The following soil types are unsuitable: (MH), (CH), (OL), (OH), and (PT).
	 	 	 
	 	iv.	Suitable fill material must be placed in thin lifts,
with a maximum loose-lift thickness of eight (8) inches. The soil shall be compacted by a self-propelled sheepsfoot roller or
by any other means necessary to achieve the compaction requirements outlined herein.

 

    	-2-

    	 

    

 

	 	v.	Structural fill must be compacted to at least 95 percent of the standard Proctor maximum dry density (ASTM D-698). The uppermost
12” of pavement subgrades should be compacted in accordance with Georgia Department of Transportation requirements to at
least 100 percent of the standard Proctor maximum dry density (ASTM D-698).
	 	 	 
	 	vi.	Additionally, the maximum dry density of structural fill should be no less than 90 pcf.
	 	 	 
	 	vii.	Install effective erosion control measures that meet or exceed
applicable governmental requirements, including, but not limited to, installing silt fence, a stabilized construction exit, temporary
sediment ponds, diversion ditches and rip rap and utilizing tree save and temporary grassing measures.

 

(c)      Notwithstanding anything
herein to the contrary, Highway Nine, at its sole cost and expense, shall engage a geotechnical engineer to perform all testing
of the Grading Work, including, without limitation, testing of the soil compaction. Highway Nine shall notify Roberts in writing
within twenty-four (24) hours of receipt of written notification from such geotechnical engineer that a soil test report has failed
to adhere to the requirements of the Grading Work listed herein, and Roberts shall promptly remediate the deficiencies stated in
such failed test report.

 

(d)      The Soil Deposit Easement
and the Grading Easement granted herein shall terminate automatically on the date which is the earlier of (i) the completion of
the Grading Work on the Commercial Parcel, or (ii) two (2) years after the Effective Date, with no further action required on the
part of Highway Nine or Roberts. Upon completion of the Grading Work by Roberts, Roberts shall have no more obligations with respect
to the soil or grading of the Commercial Parcel.

3.                 
Slope Easement.

 

(a)      Highway Nine does
hereby grant and convey to Roberts, for the benefit of the Apartment Parcel, a perpetual, non-exclusive easement (the “Slope
Easement”) upon, over, across and through that portion of the Commercial Parcel described and depicted on Exhibit
D attached hereto and made a part hereof (the “Slope Easement Area”), for the purposes of clearing,
grubbing, grading, cutting, constructing, filling, and landscaping a slope embankment within the Slope Easement Area substantially
in accordance with the Grading Plan (the “Slope Grading Work”), for the benefit of the Commercial Parcel.
All construction of the Slope Grading Work shall be performed by Roberts at Roberts’ expense. Highway Nine does hereby grant
and convey to Roberts, for the benefit of the Apartment Parcel, a temporary, non-exclusive easement to use the areas extending
further onto the Commercial Property fifteen (15) feet from the perimeter of the Slope Easement Area for ingress, egress, staging
of materials, and other activities reasonably related to construction of the Slope Grading Work, which temporary easement shall
terminate automatically on the date which is the earlier of (i) the completion of the Slope Grading Work, or (ii) two (2) years
after the Effective Date, with no further action required on the part of Highway Nine or Roberts. The easement rights granted hereunder
shall expressly include the right to clear trees and other vegetation in the Slope Easement Area necessary or convenient to perform
such Slope Grading Work; provided, however, that following the completion of such work, the owner of the Apartment Parcel will
stabilize the Slope Easement Area by re-dressing or re-seeding the Slope Easement Area. Highway Nine shall retain the right, at
its expense, to use such Slope Easement Area for the construction of improvements thereon and for other purposes, including, without
limitation, the construction of a detention pond, a driveway and a retaining wall; provided, however, that such use does not result
in or necessitate a change in the grade of the Apartment Parcel existing after completion of such Slope Grading Work or materially
and adversely affect improvements on the Apartment Parcel.

 

    	-3-

    	 

    

(b)      Highway Nine and its
successors, assigns and successors-in-title to the Commercial Parcel shall be responsible for installing and maintaining landscaping
as required by Forsyth County, Georgia, including but not limited to trees, hedges, plants and pine straw within the Slope Easement
Area and all landscaping installed thereon in good and safe condition, conforming to all applicable laws, ordinances, regulations
and orders of any governmental authority (“Laws”). If Highway Nine fails to perform such maintenance
within thirty (30) days after written notice to Highway Nine, Roberts and its successors, assigns and successors-in-title to the
Apartment Parcel shall have the right to maintain such landscaping and Highway Nine shall reimburse Roberts for all costs of such
maintenance within thirty (30) days after delivery of an invoice from Roberts for such maintenance.

 

4.                 
Sanitary Sewer Construction Easement. 

 

(a)      Highway Nine hereby
grants and conveys to Roberts, for the benefit of Roberts, and its agents, employees, licensees, contractors, successors and assigns,
a temporary, non-exclusive easement (the “Sanitary Sewer Construction Easement”) on, over, under, across
and through that portion of the Commercial Parcel described and depicted on Exhibit E attached hereto and made a part hereof
(the “Sanitary Sewer Easement Area”) and the areas extending fifteen (15) feet from the perimeter thereof,
for the construction of the extension of a sanitary sewer line from the western property line of the Commercial Parcel to the eastern
property line of the Commercial Parcel within the Sanitary Sewer Easement Area, as shown on Exhibit E (the “Sewer
Line”), for the benefit of the Commercial Parcel. Roberts shall have the right to locate the Sewer Line ten (10)
feet to the north or five (5) feet to the south, of the location shown on Exhibit E as may be practically required during
construction. Upon completion of construction of the Sewer Line, Roberts shall return all above-ground areas accessed by Roberts
to a physical condition that is reasonably similar to the physical condition of the adjoining land. The Sanitary Sewer Construction
Easement granted herein shall terminate automatically on the date which is the earlier of (i) the date upon which the Sewer Line
has been dedicated to and accepted for maintenance by the City of Cumming, or (ii) two (2) years after the Effective Date, with
no further action required on the part of Highway Nine or Roberts.

 

(b)      All costs for construction
of the Sewer Line shall be borne by Highway Nine. Before commencing construction of the Sewer Line, Roberts and Highway Nine shall
agree to the estimated cost of construction of the Sewer Line. Upon completion of the Sewer Line, and once the Sewer Line has been
dedicated to and accepted for maintenance by the City of Cumming, Roberts shall deliver to Highway Nine an invoice of all costs
of construction of the Sewer Line accompanied by reasonably detailed documentation supporting such costs. Highway Nine shall reimburse
Roberts for such costs of construction within thirty (30) days following receipt of the invoice therefor. Upon the satisfaction
by Highway Nine of all obligations described in this Section 4, Highway Nine and Roberts agree to execute an instrument that shall
be recorded in the real property records of the Commercial Property and the Apartment Parcel acknowledging such satisfaction.

 

    	-4-

    	 

    

5.                 
Parking Easement. Highway Nine hereby grants and conveys to Roberts, for the benefit of the Apartment Parcel,
a perpetual, exclusive and irrevocable easement (the “Parking Easement”) on, over, under, across and
through that portion of the Commercial Parcel described and depicted on Exhibit F attached hereto and made a part hereof
(the “Surface Parking Easement Area”) for constructing, installing, using, operating, repairing, replacing,
maintaining and improving approximately thirteen (13) surface level parking spaces (the “Parking Spaces”).
Highway Nine acknowledges and agrees that Roberts may and shall have the right to permit others, including, without limitation,
its employees, tenants, residents and their guests and invitees and the general public, to use the Parking Spaces. The Parking
Easement granted to Roberts hereby shall also include the nonexclusive right to enter onto a portion of the Commercial Parcel adjacent
to the Surface Parking Easement Area that is fifteen (15) feet from the back of the curb for the construction, repair, replacement
and maintenance of the Parking Spaces and the installation of related landscaping, irrigation, electrical lines and streetlights.
All construction of the Parking Spaces and related improvements shall be performed by Roberts at Roberts’ expense. Roberts
shall be solely responsible for the maintenance and repair of the Parking Spaces and related improvements, unless the damage thereto
is caused by Highway Nine or its agents or contractors respecting which Highway Nine Shall be responsible. After completion of
the construction of the Parking Spaces, the contour, size and location of such Parking Spaces may, from time to time, be altered,
modified, updated or changed by the owner of the Apartment Parcel, provided that any expense incurred in such alteration, modification,
update or change shall be borne solely by the owner of the Apartment Parcel. Highway Nine and Roberts agree to execute a right-of-way
easement agreement with Sawnee EMC to allow Sawnee EMC access to all electrical lines & equipment relating to any streetlights
installed in the Surface Parking Easement Area provided that such right-of-way easement agreement does not materially and adversely
affect the improvements constructed, or to-be-constructed, on the Commercial Parcel.

 

6.                 
Access Lane Easement.

 

(a)       Roberts hereby grants
and conveys to Highway Nine, for the benefit of the Commercial Parcel, a perpetual, exclusive and irrevocable easement (the “Access
Lane Easement”) on, over, under, across and through that portion of the Apartment Parcel described and depicted on
Exhibit G attached hereto and made a part hereof (the “Access Lane Easement Area”) for the construction
of an access lane (the “Access Lane”) for pedestrian and vehicular access, ingress and egress for the
benefit of and as an appurtenance to the Commercial Parcel and Highway Nine and its agents, employees, tenants, invitees, licensees,
contractors, successors, assigns and successors-in-title to the Commercial Parcel. Highway Nine shall have the right to install
and maintain street lights, underground utilities and landscaping within five (5) feet of the Access Lane and Highway Nine shall
be responsible for the hard construction costs of said street light, underground utility and landscape installation. Roberts also
does hereby grant and convey to Highway Nine, for the benefit of the Commercial Parcel, a temporary, non-exclusive easement to
use the areas extending further onto the Apartment Property fifteen (15) feet from the perimeter of the Access Lane Easement Area
for ingress, egress, staging of materials, and other activities reasonably related to construction of the Access Lane. The easement
rights granted hereunder shall expressly include the right to clear trees and other vegetation in the Access Lane Easement Area
necessary or convenient to the construction of the Access Lane; provided, however, that following the completion of construction
of the Access Lane, Highway Nine shall return all above-ground areas accessed by Highway Nine to a physical condition that is reasonably
similar to the physical condition of the adjoining land. All costs for construction of the Access Lane shall be borne by Highway
Nine.      

 

    	-5-

    	 

    

(b)       Highway Nine and
its successors, assigns and successors-in-title to the Commercial Parcel shall maintain the Access Lane Easement Area, conforming
to all applicable Laws. If Highway Nine fails to perform such maintenance within thirty (30) days after written notice to Highway
Nine, Roberts and its successors, assigns and successors-in-title to the Apartment Parcel shall have the right to maintain the
Access Lane Easement Area and Highway Nine shall reimburse Roberts for all costs of such maintenance within thirty (30) days after
delivery of an invoice from Roberts for such maintenance

 

7.                 
Approval Rights of Highway Nine. Any work or obligations required hereunder to be performed by Roberts for
the benefit of the Commercial Parcel shall not be considered completed until Highway Nine has inspected such work and has delivered
to Roberts written notification that Highway Nine approves and accepts the completion of such work.

 

8.                 
Rights Run with the Land; Successors in Interest. The easements, rights and privileges herein granted and
established are intended to and do benefit the Parcels and are intended to and do burden the Parcels and shall run with and be
appurtenant to the title to the Parcels and shall inure to the benefit of and be binding upon the owners of the Parcels from time
to time, and such owners’ successors, assigns and successors-in-title. In the event of any subdivision of the Parcels, the resulting
parcels shall each become a separate Parcel and shall be subject to those provisions contained herein applicable to the parent
Parcel. Any person acquiring fee or leasehold title to a Parcel shall be bound by this Agreement only as to the Parcel (or portion
thereof) acquired by such person. In addition, such person shall be bound by this Agreement only during the period such person
is the fee or leasehold owner of such Parcel (or portion thereof), except as to obligations, liabilities or responsibilities that
accrue during said period. Although persons may be released under this Section, the easements, covenants and restrictions in this
Agreement shall continue to be benefits to and servitudes upon the Parcels running with the land.

 

9.                 
Indemnity. The owner of each Parcel covenants and agrees to defend, indemnify and hold harmless the owner
of the other Parcel, and such other owner’s successors and assigns, from and against any and all losses, claims, liabilities, demands,
costs, damages and expenses (including court costs and reasonable attorneys’ fees actually incurred) arising from or out of the
indemnifying owner’s (or its licensees’, contractors’, agents’ successors’ or assigns’) exercise of easement rights granted in
this Agreement with respect to the other owner’s Parcel, or the breach of any provisions of this Agreement; provided, however,
the foregoing indemnity and hold harmless shall not apply to claims or demands based upon the gross negligence or the intentional
act or omission of the otherwise indemnified party.

 

    	-6-

    	 

    

10.             
Liability Insurance. In the event the owner of a Parcel desires to exercise its easement rights granted hereunder,
such owner shall provide at least twenty-four (24) hours prior notice to the owner of the other Parcel, together with evidence
that the exercising owner keeps, in full force and effect, a general liability insurance policy with limits not less than One Million
and No/100 Dollars ($1,000,000.00) per occurrence and Two Million and No/100 Dollars ($2,000,000.00) in the aggregate,.

 

11.             
Estoppel Certificate. The owner of a Parcel shall execute and deliver to the owner of the other Parcel within
fifteen (15) days after written request therefor, a certificate addressed as indicated by the requesting party and stating (i)
whether this Agreement is in full force and effect; (ii) whether this Agreement has been modified or amended in any respect, and
if so, the substance of the modification or amendment, (iii) whether there are any existing defaults hereunder known to the party
executing such certificate, and if so, specifying the nature thereof, and (iv) such other matters as may be reasonably requested.

 

12.             
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of Georgia. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their successors, successors-in-title
and assigns.

 

13.             
Amendments. No amendment to this Agreement shall be binding upon either party to this Agreement unless such
amendment is in writing, executed by all of the parties hereto or their successors-in-title with the same formality as this Agreement
is executed, and recorded in the property records of Forsyth County, Georgia.

 

14.             
Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the
subject matter hereof and no representation, inducement, promises or agreements, oral or written, between any of the parties hereto
not embodied herein shall be of any force and effect.

15.             
Severability. If any term, covenant and condition of this Agreement or the application thereof to any person
or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such terms,
covenants or conditions to persons or circumstances other than those as to which it is held invalid or unenforceable shall not
be affected thereby and each term, covenant or condition of this Agreement shall be valid and be enforced to the fullest extent
permitted by law.

    	-7-

    	 

    

16.             
Miscellaneous. This Agreement is intended to convey only the easements as herein specifically provided, and
for no other purpose. This Agreement is not, and shall not be construed, interpreted or enforced as, a dedication of all or any
portion of the Parcels, to the private or public use of any party other than the parties to this Agreement and their respective
successors, successors-in-title and assigns, and nothing in this Agreement shall constitute a dedication to the general public
of any road, street, driveway or parking area within the Parcels. Time is of the essence of this Agreement and the terms and provisions
hereof. Whenever appropriate the singular number shall include the plural and the plural shall include the singular, and the use
of any gender shall include all genders.

17.             
Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be
an original copy and all of which together shall constitute one Agreement.

 

 

[Signatures Commence
on Next Page]

 

    	-8-

    	 

    

IN WITNESS WHEREOF, Highway Nine and Roberts
have caused this Agreement to be executed, sealed and delivered as of the day and year first above written.

 

 

	
        Signed, sealed and delivered in the
presence of:

         

             /s/ David M. Phillips                                

        Unofficial Witness

         

             /s/
        Sarah
        Roberts                                     

        Notary Public

         

        (NOTARY SEAL)

         

        My Commission Expires: July 27, 2018

         

         

         

         

         
	
        “HIGHWAY NINE”:

         

        HIGHWAY NINE INVESTORS, LLC, a Georgia limited
        liability company

         

         

        By:      /s/
        Charles         S.
        Roberts                                

        Name:      Charles
        S. Roberts                        

        Title:      Sole
        member/Manager                   

         

	
        Signed, sealed and delivered in the
presence of:

         

             /s/ David M. Phillips                                

        Unofficial Witness

         

             /s/
        Sarah
        Roberts                                     

        Notary Public

         

        (NOTARY SEAL)

         

        My Commission Expires: July 27, 2018
	
        “ROBERTS”:

         

        ROBERTS PROPERTIES RESIDENTIAL, L.P., a Georgia
        limited partnership

         

        By: Roberts Realty Investors, Inc., a Georgia

        corporation, its sole General
        Partner

         

         

        By:      /s/
        Charles         R.
        Elliott                                

        Name:       Charles         R.
        Elliott                         

        Title:       CFO                                                

         

 

 

[Signatures Continued on Next Page]

 

    	-9-

    	 

    

CONSENT OF LENDER FOR HIGHWAY NINE

 

The undersigned,
SYNOVUS BANK, successor-in-interest through name change and by merger with Bank of North Georgia, as the holder of that certain
Deed to Secure Debt dated June 30, 2006, executed by Highway Nine Investors, LLC in favor of Bank of North Georgia, recorded in
Deed Book 4348, page 599, Forsyth County, Georgia records (the “Security Deed”), and that certain Assignment of
Lessor’s Interest in Leases dated June 30, 2006, executed by Highway Nine Investors, LLC in favor of Bank of North Georgia, recorded
in Deed Book 4348, page 609, aforesaid records (the “Assignment”), such Security Deed and Assignment last amended
pursuant to that certain Security Deed Modification Agreement made effective as of June 23, 3014, executed by Highway Nine Investors,
LLC in favor of Synovus Bank, recorded in Deed Book 7075, page 180, aforesaid records, encumbering the Commercial Parcel referred
to above, hereby consents to the within and foregoing Reciprocal Easements Agreement and agrees that a foreclosure of its Security
Deed shall be subject to the within and foregoing Reciprocal Easements Agreement.

IN WITNESS WHEREOF,
the undersigned has caused this Consent of Lender to be signed, sealed and delivered this 29 day of October, 2014.

 

	
        Signed, sealed and delivered in the presence of:

         

             /s/ Terry
        Lawson                                

        Unofficial Witness

         

             /s/ Kelly
        Rabstejnek                          

        Notary Public

         

        (NOTARY SEAL)

         

        My Commission Expires: January 16, 2018

         
	
        SYNOVUS BANK

         

         

        By:      /s/ Jules
        Greenblatt                                

        Name: Jules Greenblatt

        Title: Special Assets Officer

         

        By: _______________________________

        Name:

        Title:

         

        (BANK SEAL)

 

 

    	-10-

    	 

    

CONSENT OF LENDER FOR ROBERTS

 

The undersigned,
SYNOVUS BANK, successor-in-interest through name change and by merger with Bank of North Georgia, as the holder of that certain
Deed to Secure Debt dated September 29, 2005, executed by Roberts Properties Residential, L.P. in favor of Bank of North Georgia,
recorded in Deed Book 3983, page 690, Forsyth County, Georgia records (the “Security Deed”), and that certain
Assignment of Lessor’s Interest in Leases dated September 29, 2005, executed by Roberts Properties Residential, L.P. in favor of
Bank of North Georgia, recorded in Deed Book 3983, page 699, aforesaid records (the “Assignment”), such Security
Deed and Assignment last amended pursuant to that certain Second Loan Modification Agreement made effective as of April 1, 2014,
executed by Roberts Properties Residential, L.P. in favor of Synovus Bank, recorded in Deed Book 6994, page 420, aforesaid records
encumbering the Apartments Parcel referred to above, hereby consents to the within and foregoing Reciprocal Easements Agreement
and agrees that a foreclosure of its Security Deed shall be subject to the within and foregoing Reciprocal Easements Agreement.

IN WITNESS WHEREOF,
the undersigned has caused this Consent of Lender to be signed, sealed and delivered this 29 day of October, 2014.

	
        Signed, sealed and delivered in the presence of:

         

             /s/ Terry
        Lawson                                

        Unofficial Witness

         

             /s/ Kelly
        Rabstejnek                          

        Notary Public

         

        (NOTARY SEAL)

         

        My Commission Expires: January 16, 2018

         
	
        SYNOVUS BANK

         

         

        By:     /s/ Jules Greenblatt                                

        Name: Jules Greenblatt

        Title: Special Assets Officer

         

        By: _______________________________

        Name:

        Title:

         

        (BANK SEAL)

 

    	-11-

    	 

    

EXHIBIT A

 

Commercial Parcel

 

 

    	-12-

    	 

    

EXHIBIT
B

Apartment Parcel

 

    	-13-

    	 

    

 

 

    	-14-

    	 

    

EXHIBIT C

 

Grading Plan

 

 

 

    	 

    	 

    

EXHIBIT D

 

Slope Easement Area

 

 

 

    	 

    	 

    

EXHIBIT E

 

Sanitary Sewer Easement Area

 

 

 

    	 

    	 

    

EXHIBIT F

 

Surface Parking Easement Area

 

 

 

    	 

    	 

    

EXHIBIT G

 

Access Lane Easement Areamine_ex1044.htm

Exhibit 10.44

 

Premium Management Agreement

            This Premium Management Agreement (the “Agreement”) is made as of the 1st day of July, 2014 (the “Effective Date”), by and between New World Consulting, LLC, 44 Inverness, #5, Englewood, CO 80112 (“NEW WORLD CONSULTING”) and Minerco Resources, Inc., 800 Bering Drive, Suite 201, Houston, TX 77057 (the “Client”).

RECITALS:

WHEREAS, NEW WORLD CONSULTING, by and through his own experience and their officers, employees, agents, representatives and affiliates, has expertise in the area of non-alcoholic beverage product development, brand management, sales, marketing, distribution and other matters relating to the beverage industry; and

            WHEREAS, the Client desires to avail itself of the expertise of NEW WORLD CONSULTING in certain of the aforesaid areas.

            NOW, THEREFORE, in consideration of the foregoing recitals and the covenants and conditions herein set forth, the parties hereto agree as follows:

 

1.  APPOINTMENT

             The Client hereby appoints NEW WORLD CONSULTING to perform the management services described in section 2 hereof for the Term of this Agreement.  NEW WORLD CONSULTING will report to V. Scott Vanis appointed by the Level 5 Board of Directors.

2.  SERVICES

Through this Agreement the Client will be provided the following privileges and services from New World Consulting:

	
a)  

	
Workspace in Englewood facility

	
●   

	
Client will have full access to New World Consulting including designated work area with desktop or laptop computer, phone (service plan to be covered by Client), and access to printer, fax, scanner, and all necessary office equipment.

	
b)  

	
Two (2) meeting per week with Managing Member

	
c)  

	
Advanced Financial Services

	
●   

	
New World Consulting CFO will develop necessary P&L, Cash Flow, and Balance Sheet documents

	
●   

	
New World Consulting CFO will setup Clients books in QuickBooks software

	
●   

	
New World Consulting will manage and report Client financials on a weekly basis

	
d)  

	
Advanced production advice and management

	
●   

	
New World Consulting team will manage Client’s full-scale manufacturing process

	
●   

	
New World Consulting will manage ordering raw materials, invoicing, delivery, and finished goods logistics (freight and warehousing)

 

  

1

  

 

	
e)  

	
Strategic Sales and Marketing plan and management

	
●   

	
New World Consulting will create a brand specific sales and marketing plan based on the brand’s demographic and geographic targets and Client budget.

	
●   

	
New World Consulting will manage Client’s sales person(s)

	
●   

	
New World Consulting will design Client sell sheet and Point of Sale material including posters, suction racks, static clings, coolers, etc.

	
●   

	
New World Consulting will establish appropriate sales and marketing budgets based on scope of overall project and with Client approval.

	
●   

	
New World Consulting will set sales objectives and metrics.

	
●   

	
New World Consulting will develop an impactful and cost effective rollout marketing campaign.

	
●   

	
New World Consulting will provide a detailed weekly report to Client on sales progress (number of stores, velocity)

	
●   

	
Number of sales representatives will vary based on Client’s budget

	
●   

	
Additional sales representatives will incur additional cost

	
f)  

	
Retail and Distributor activation

	
●   

	
New World Consulting will create Retailer and Distributor presentations based on Client’s brand demographic and geographic targets.

	
●   

	
New World Consulting will identify correct retail and distributor partners

	
●   

	
New World Consulting will actively participate in key account buyer meetings.

	
●   

	
New World Consulting will work directly with sales personnel to secure sales meetings and ultimately shelf space.

 

3.  FEES

          In consideration of performance of these services, Client agrees to pay NEW WORLD CONSULTING the following fees in accordance with the schedule specified below.  Except with respect to mutually agreed and prepaid travel expenses, NEW WORLD CONSULTING acknowledges and agrees that the fees include all management fees for NEW WORLD CONSULTING. Fees for other parties related to this project mentioned above are separate and will be discussed on a case-by-case basis and subject to Client’s prior written approval. The only required additional costs will be for: 1) the physical production of the actual product, 2) the manufacture of promotional materials, 3) salaries associated with promotional staff, 4) salaries associated with sales staff, and 5) the actual costs of placing advertising and marketing materials. These costs will be specifically allocated and provided for in the budget to be approved by Client in writing.

1. Monthly management fee:    $6,000 (Six thousand)

	
●   

	
Client will pay $6,000 to NEW WORLD CONSULTING on the first of every month for the duration of this contract.

 

4.   NON-SOLICITATION

During the Term of this Agreement, and for a period of 1 (one) year following the termination of this Agreement, Client agrees that he shall not directly or indirectly solicit for employment, offer to employ or employ any employees of NEW WORLD CONSULTING’S employees or independent contractors that are involved in beverage production, sales or marketing introduced to Client by NEW WORLD CONSULTING without the express written consent of NEW WORLD CONSULTING.

5.   TERM; TERMINATION

The minimum term of this Agreement is 90 days.  After 90 days from the Effective Date, this Agreement may be terminated by Client without cause, with such termination effective upon the receipt by NEW WORLD CONSULTING of a written notice of termination.

If either party materially defaults in the performance of its obligations under this Agreement and fails to cure such default within thirty (30) days after receiving written notice thereof, the non-defaulting party may immediately terminate this Agreement.

6.   CONFIDENTIALITY

The parties hereby agree that the Non-Disclosure Agreement dated as of July 1, 2014 (“NDA”) entered into by and between the parties is incorporated herein by reference and shall continue in full force and effect throughout the Term of this Agreement and shall apply to all Information (as defined in the NDA) provided by Client to New World Consulting for purposes of this Agreement.

  

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7.   INTELLECTUAL PROPERTY

Client shall retain sole ownership of any and all ideas, concepts, plans, recipes, formulas, product or packaging designs, and other information and materials provided by Client to New World Consulting for use by New World Consulting in connection with this Agreement (collectively, “Client IP”).  In addition, upon payment of the entire Fee to New World Consulting, Client shall acquire full ownership rights to all product and packaging designs, business plans, and other materials produced by New World Consulting in the performance of its obligations under this Agreement (collectively, “New World Consulting IP”).  Accordingly, effective as of the final payment of the Fee, New World Consulting hereby assigns all of its right, title, and interest in and to the New World Consulting IP to Client and agrees to execute and deliver all documents, and take all actions, as may be reasonably necessary to fully vest in Client the rights to the New World Consulting IP.  If Client does not pay the entire Fee, then New World Consulting shall retain ownership of the New World Consulting IP and Client shall have no rights in the New World Consulting IP except to the extent that the New World Consulting IP incorporates any Client IP.  If New World Consulting retains ownership of such New World Consulting IP, the rights of New World Consulting to use such New World Consulting IP shall be subject to the rights of Client in any Client IP and Information (as defined in the NDA) that may be incorporated into the New World Consulting IP, and nothing in this Agreement shall permit New World Consulting to use or disclose any such Client IP or Information for any purpose.  However, from time to time, New World Consulting has other clients who have ideas, concepts, plans, recipes, formulas, product or packaging designs, and other information and materials similar to those contained in the Client IP (“Third Party Client IP”).  Client acknowledges and agrees that New World Consulting is free to use Third Party Client IP and to work on similar projects for other clients.

8.   INDEMNIFICATION

           Client shall indemnify and hold New World Consulting harmless from and against any and all claims, liabilities, demands, causes of action, damages, losses and expenses, including, without limitation, reasonable attorneys’ fees and costs of suit, arising out of or in connection with (i) Client’s business and the conduct of any advertising, marketing or sales in connection therewith; (ii) the negligent, illegal or intentional acts or omissions of Client or any of its agents, contractors, servants or employees, (iii) the Client IP or use or possession thereof, and/or (iv) the breach of any warranty or obligation of Client  hereunder.

9.  ASSIGNMENT

         Neither party to this Agreement can assign its interest herein (other than to an affiliate or subsidiary) without the prior written consent of the other party, and the granting of such consent is at the sole discretion of the granting party.

10.  CONFLICT OF INTEREST

         New World Consulting and Client will exercise reasonable care and diligence to prevent any actions or conditions which could result in a conflict with the other's best interest.

11.  CHOICE OF LAW

         This Agreement shall be governed and interpreted in accordance with the laws of the State of Texas.

 

12.  NOTICES

All notices required or permitted to be delivered in connection with this Agreement shall be in writing and shall be delivered to the following addresses.

To New World Consulting:

New World Consulting, LLC

44 Inverness Dr, #5

Englewood, CO 80112

Attention:  Tony Skinner

                   Managing Member

Facsimile No.:  N/A

 

  

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To Client:

Minerco Resources, Inc.

800 Bering Drive, Suite 201

Houston, TX 77057

Attention: V. Scott Vanis

  Chief Executive Officer

Facsimile No.:  (713) 456-2724

 

13.  DISCLAIMER OF WARRANTIES; LIMITATION OF LIABILITY

NEW WORLD CONSULTING PROVIDES ITS SERVICES PERFORMED HEREUNDER AND THE RESULTS AND PROCEEDS THEREOF "AS IS" AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF NON-INFRINGEMENT AND ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AS WELL AS IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.

IN NO EVENT SHALL NEW WORLD CONSULTING OR ITS EMPLOYEES, OFFICERS AND/OR DIRECTORS BE LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, COSTS, EXPENSES, OR LOSSES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), WHETHER OR NOT CLIENT HAS BEEN ADVISED OF THE POSSIBILITY THEREOF.  CLIENT AGREES THAT NEW WORLD CONSULTING, ITS EMPLOYEES, OFFICERS AND DIRECTORS, SHALL NOT BE LIABLE TO CLIENT FOR ANY ACTIONS, DAMAGES, CLAIMS, LIABILITIES, COSTS, EXPENSES, OR LOSSES IN ANY WAY ARISING OUT OF OR RELATING TO THE PERFORMANCE AND OR NONPERFORMANCE OF THIS AGREEMENT OR NEW WORLD CONSULTING’ SERVICES HEREUNDER FOR AN AGGREGATE AMOUNT IN EXCESS OF FEES ACTUALLY PAID BY CLIENT TO NEW WORLD CONSULTING FOR THE SERVICES PERFORMED IN ACCORDANCE WITH THIS AGREEMENT.  NO TERMS OF THIS AGREEMENT SHALL BENEFIT OR CREATE ANY RIGHT OR CAUSE OF ACTION IN OR ON BEHALF OF ANY PERSON OR ENTITY OTHER THAN CLIENT AND NEW WORLD CONSULTING.  THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY REGARDLESS OF THE FORM OF ACTION, DAMAGE, CLAIM, LIABILITY, COST, EXPENSE, OR LOSS, WHETHER IN CONTRACT, STATUTE, TORT (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE), OR OTHERWISE.  THIS LIMITATION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED HEREIN.

14.  STATUS AS INDEPENDENT CONTRACTOR

The parties to this Agreement are independent contractors, and no agency, partnership, joint venture, or employee-employer relationship is intended or created by this Agreement.  Neither party shall have the power to obligate or bind the other party.

15.  GENERAL PROVISIONS

	
a.  

	
Modifications.  No change or modification of this Agreement shall be valid and binding upon the parties hereto unless such change or modification is in writing and is signed by all of the parties hereto.  No waiver of any term or condition of this Agreement shall be valid and binding unless such waiver is in writing and is signed by the party against whom it is sought to be enforced.

	
b.  

	
Binding Effect.  This Agreement shall inure to the benefit of and shall be binding upon the parties, their successors, and their permitted assigns.

	
c.  

	
Entire Agreement.  Each party to this Agreement acknowledges that this Agreement (together with the NDA) constitutes the entire agreement of the parties with regard to the subject matter addressed in this Agreement, that this Agreement supersedes all prior or contemporaneous agreements, discussions, or representations, whether oral or written, with respect to the subject matter of this Agreement, and that it should not rely on any promise, representation, inducement, or warranty other than those expressly set forth herein.

	
d.  

	
Severability.  In the event any provision of this Agreement is held to be unenforceable or invalid, such finding of unenforceability or invalidity shall not affect the enforceability or validity of the remaining provisions of this Agreement.

	
e.  

	
Force Majeure. New World Consulting shall be excused from performance hereunder to the extent that such performance is prevented, delayed, or obstructed by causes beyond its reasonable control, including, without limitation, acts of any federal, state, or local governmental authority; fires, floods, or other natural disasters; strikes or labor unrest; terrorism or acts of war; degradation of telecommunications service; severe weather conditions; or for any other matters that are beyond New World Consulting’ control, whether or not otherwise foreseeable.

 

  

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f.  

	
Continuing Obligations.  Each indemnity provided for herein shall survive the termination of this Agreement for any reason whatsoever and each covenant which provides for or permits performance hereunder after termination or by its nature requires performance after termination shall survive the termination of this Agreement.

	
g.  

	
Arbitration. In the event of any dispute or controversy arising out of or in any way related to this Agreement, the matters referred to herein, or the services to be rendered by Consultant pursuant to this Agreement, or in any way relating to the claim of any third party against Consultant in connection with matters in any way arising out of this Agreement (each, a “Dispute”), such Dispute shall be settled exclusively by final and binding arbitration in Houston,  Texas in accordance with the then current rules of the American Arbitration Association (“AAA”).  The parties agree that any and all Disputes that are submitted to arbitration in accordance with this Agreement shall be decided by one (1) neutral arbitrator who is a retired judge or attorney licensed to practice law in Texas who is experienced in complex commercial transactions.  If the parties are unable to agree on an arbitrator, AAA shall designate the arbitrator.  The parties will cooperate with AAA and with one another in selecting the arbitrator and in scheduling the arbitration proceedings in accordance with applicable AAA procedures.  Any award issued as a result of such arbitration shall be final and binding between the parties thereto and shall be enforceable by any court having jurisdiction over the party against whom enforcement is sought.  By entering into this Agreement, the parties are waiving their constitutional right to have any Disputes decided in a court of law or before a jury and waive the right of appeal, and instead of relying on said rights, each party is solely and knowingly accepting the use of arbitration as a means of resolution of any Disputes.  The prevailing party in such arbitration shall be awarded its costs and reasonable attorneys’ fees.

	
h.  

	
No Prejudice Against Drafter.  The parties to this Agreement agree that this Agreement was negotiated fairly between them at arm's length and that the final terms of this Agreement are the product of the parties' negotiations.  Each of the parties has had the opportunity to seek the advice of independent legal counsel, and has read and understood all of the terms and provisions of this Agreement.  The parties agree that this Agreement shall be deemed to have been jointly and equally drafted by them, and that the provisions of this Agreement therefore should not be construed against a party or parties on the grounds that the party or parties drafted or was more responsible for drafting the provision(s).

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and date first written above.

Client: Minerco Resources, Inc.

 

Sign: /s/ V. Scott Vanis

Name: V. Scott Vanis

Title: Chief Executive Officer

Date: 7/1/2014

New World Consulting, LLC

Sign: /s/ Tony Skinner

Name:  Tony Skinner

Title:   Managing Member

Date: 7/1/2014

 

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