Document:

TIER-9.30.2014-EX10.1

Exhibit 10.1

FIRST AMENDMENT
TO
PROPERTY MANAGEMENT AGREEMENT
This FIRST AMENDMENT TO THE SIXTH AMENDED AND RESTATED PROPERTY MANAGEMENT AGREEMENT (the “Amendment”) is made and entered into as of this 30th day of October, 2014 by and among TIER REIT, INC., a Maryland corporation (formerly known as Behringer Harvard REIT I, Inc.) (the “REIT”), TIER OPERATING PARTNERSHIP LP, a Texas limited partnership (formerly known as Behringer Harvard Operating Partnership I LP) (the “OP”), and HPT MANAGEMENT SERVICES, LLC, a Texas limited liability company (the “Manager,” and together with the REIT and the OP, the “Parties”).
WHEREAS, the Parties previously entered into that certain Sixth Amended and Restated Property Management, dated August 31, 2012 (the “Agreement”).
WHEREAS, the Parties desire to amend the Agreement to revise how Owner’s expenses will be calculated beginning January 1, 2014 until termination of the Agreement.  
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby, do hereby agree, as follows:
1.    Defined Terms. Any term used herein that is not otherwise defined herein shall have the meaning ascribed to such term as provided in the Agreement.
2.    Amendment to Section 4.1.  Section 4.1 of the Agreement is hereby amended by deleting it in its entirety and replacing it with the following:
“4.1    Owner’s Expenses.  Except as otherwise specifically provided, all costs and expenses incurred hereunder by Manager in fulfilling its duties to Owner shall be for the account of and on behalf of Owner. Such costs and expenses shall include legal, travel and other expenses that are directly related to the management of the specific Properties and the following personnel costs of all on-site and offsite employees (other than senior executives, identified by title, set forth on Exhibit D) of Manager who are engaged in the operation, management, maintenance and leasing or access control of the Properties (the “Reimbursable Personnel”):
(a)    Actual cash compensation incurred by Manager (base salaries, paid time off, bonuses, and retention or severance amounts) for all Reimbursable Personnel;

(b)    An additional amount equal to 24% of any amounts paid in subclause (a) above for base salaries and paid time off to cover Manager’s direct costs for non-cash compensation (e.g., employee benefits, such as medical insurance, customary payroll taxes, and worker’s compensation), but specifically excluding any amounts paid for a 401(k) match;
(c)     An additional amount equal to 16% for amounts paid in subclause (a) above for payments other than base salaries and paid time off, such as bonuses and retention or severance payments, to cover Manager’s direct costs for non-cash compensation, but specifically excluding any amounts paid for a 401(k) match.  
All costs and expenses for which Owner is responsible under this Management Agreement shall be paid by Manager out of the Account.  In the event the Account does not contain sufficient funds to pay all said expenses, Owner shall fund all sums necessary to meet such additional costs and expenses.”  
4.    Continuing Effect.  Except as otherwise set forth in this Amendment, the terms of the Agreement shall continue in full force and effect and shall not be deemed to have otherwise been amended, modified, revised or altered.
5.    Counterparts.  The Parties agree that this Amendment has been or may be executed in several counterparts, each of which shall be deemed an original, and all counterparts shall together constitute one and the same instrument.

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IN WITNESS WHEREOF, the Parties have duly executed this Amendment as of the date first written above.

	
			
	 
	TIER REIT, INC.

	 
	By:
	/s/ Telisa Webb Schelin

	 
	Name:
	Telisa Webb Schelin

	 
	Title:
	Senior Vice President — Legal, General Counsel & Secretary

 
	
			
	 
	TIER OPERATING PARTNERSHIP LP

	 
	By:
	Tier GP, Inc.

	 
	 
	its general partner

	 
	 
	 

	 
	By:
	/s/ Telisa Webb Schelin

	 
	Name:
	Telisa Webb Schelin

	 
	Title:
	Senior Vice President — Legal, General Counsel & Secretary

	
			
	 
	HPT MANAGEMENT SERVICES, LLC

	 
	By:
	/s/ M. Jason Mattox

	 
	Name:
	M. Jason Mattox

	 
	Title:
	Executive Vice President

3CHH-EX10.02  First Amendment to Lease (AMENDED)

Exhibit 10.02

CERTIFICATE OF RENT COMMENCEMENT AND FIRST AMENDMENT TO OFFICE LEASE

THIS CERTIFICATE OF RENT COMMENCEMENT AND FIRST AMENDMENT TO OFFICE LEASE (“Agreement”) is made this 25th day of February 2014, between F. P. ROCKVILLE II LIMITED PARTNERSHIP, a Maryland limited partnership (“Landlord"), and CHOICE HOTELS INTERNATIONAL SERVICES CORP., a Delaware corporation ("Tenant").

RECITALS

A.Landlord and Tenant entered into that certain written Office Lease dated July 11, 2011 (the “Lease”) for certain premises as specifically described in the Lease (the “Leased Premises”) to be located in the building known as Rockville Metro Plaza II, One Choice Hotels Circle, Rockville, Maryland (the “Building”).  

B.    Landlord and Tenant wish to execute this Agreement to (i) establish the Rent Commencement Date and Expiration Date of the Lease, (ii) acknowledge the initial Basic Monthly Rent for the Leased Premises and Storage Area, (iii) acknowledge Tenant’s initial Proportionate Share and (iv) make certain other modifications to the Lease. 

Now Therefore, based on the covenants and promises contained herein and other good and valuable consideration, and intending to be legally bound hereby the parties hereto agrees as follows:

1.Incorporation of Recitals; Defined Terms. The foregoing Recitals are hereby incorporated herein. All capitalized terms not otherwise defined herein shall have the same meaning as defined in the Lease.

2.Rent Commencement Date and Expiration Date. Notwithstanding anything to the contrary in the Lease, Landlord and Tenant agree that the Rent Commencement of the Lease is April 8, 2013 and Expiration Date of the Lease is May 31, 2023. The parties acknowledge and agree that this Section 2 of this Agreement is provided in lieu of the preparation, delivery or execution of the certificates attached as Exhibit D and D-1 to the Lease.

3.    Tenant’s Proportionate Share. Landlord and Tenant acknowledge and agree that (i) the Leased Premises contain 137,778 rentable square feet, (ii) the Storage Area contains 2,200 square feet and (iii) the Building contains 197,866 rentable square feet which is comprised of 182,786 rentable square feet for office uses and 15,080 rentable square feet for retail uses and (iv) Tenant’s Proportionate Share is (A) 69.63% (137,778/197,866 = 69.63%) for those Basic Operating Charges that affect both the office space and retail space and (B) 75.38% (137,778/182,786 = 75.38%) for those Basic Operating Charges that affect only the office space.   

4.    Minimum Annual Rent and Basic Monthly Rent. Landlord and Tenant agree that (i) the initial Minimum Annual Rent for the Leased Premises, taking into account the rental abatement referred to in Section 5 (a) of the Lease with respect 12,778 rentable square feet of the Leased Premises, is Five Million Four Hundred Seventy-Six Thousand, Three Hundred Forty-six and 05/100 Dollars ($5,476,346.05) payable in equal monthly installments of Four Hundred Fifty-Six Thousand Three Hundred Twenty-six and 17/100 Dollars ($456,326.17) and (ii) the initial Minimum Annual Rent for the Storage Area is Thirty Thousand Eight Hundred and 04/100 Dollars ($30,800.04) payable in equal monthly installments of Two Thousand Five Hundred Sixty-six and 67/100 Dollars ($2,566.67). 
 
5.    Acceleration Costs. Tenant acknowledges and agrees that, at the request of Tenant, Landlord incurred additional costs to accelerate the Rent Commencement Date from the originally contemplated Rent Commencement Date of June 1, 2013. Landlord and Tenant agree that those costs are $190,991.00 (the “Acceleration Costs”).  

6.    West Patio Costs.  Pursuant to Section 2(b) of the Lease Landlord and Tenant agreed that Tenant would reimburse Landlord fifty percent (50%) of the West Patio Total Costs up to $400,000.00 and 100% of the West Patio Total Costs in excess of $400,000.00 will be fully reimbursed by Tenant to Landlord. Landlord and Tenant agree that those costs are $231,822.00 (the “West Patio Costs”). 

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Exhibit 10.02

7.    Construction Credits. Pursuant to agreements between Landlord and Tenant during construction of the Building and the Leased Premises Tenant is entitled to certain credits from Landlord for certain items (e. g. certain smoke curtains and certain portions of the Building sprinkler system) shown on the Base Building drawings (e. g. certain smoke curtains and certain portions of the Building sprinkler system) that were not required to be installed within the Building or Leased Premises because of the nature and layout of the Leased Premises. Landlord and Tenant agree that those credits are $121,229.00 (the “Construction Credits”). As a result of the Acceleration Costs, the West Patio Costs and the Construction Credits Tenant is obligated to pay Landlord the sum of $301,585.00.

Landlord and Tenant agree that the above sum of $301,585.00 and the amount of $93,000.00 payable to Landlord as a Construction Management fee will be netted against Tenant Reimbursement Request #15 from the Construction Allowance in the amount of $446,199.00 with the effect that Landlord will pay Tenant the sum of $51,614.00 in full and final payment of Tenant Reimbursement Request #15, which sum shall be due and payable within thirty (30) days after the date of this Agreement.

8.Waiver of Damages and Release of Damage Guarantors. Tenant acknowledges and agrees that because the Rent Commencement Date of the Lease was accelerated and Tenant is in lawful occupancy of the Leased Premises and Storage Space prior to June 1, 2013 (i) no Completion Delay occurred and (ii) no Termination Event occurred. Consequently, Tenant suffered no Completion Delay Damages or Termination Event Damages and the provisions of Section 3(c) and Section 3(d) of the Lease are null and void and of no further force or effect.  Tenant also forever waives and releases the Damage Guarantors from any and all liabilities under the Guaranty dated July 11, 2011. 

9.    Miscellaneous Provisions.

(a)    This Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their successors and assigns.
(b)     Landlord and Tenant each represents and warrants to the other that the person(s) signing this Agreement its behalf have the requisite authority and power to execute this Agreement and to thereby bind the party on whose behalf it is being signed.
(c)     If any inconsistency appears with respect to this Agreement and the Lease, as previously amended, the terms of this Agreement shall govern.
        
10.Ratification of Lease.     All of the terms and conditions of the Lease, as amended by this Agreement, are hereby ratified and remain in full force and effect.

[Signature Page Follows]

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Exhibit 10.02

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

WITNESS/ATTEST:            LANDLORD:

F. P. ROCKVILLE II LIMITED PARTNERSHIP 
_______________________         a Maryland limited partnership

By: FP RMP II GP, Inc., its General Partner                    
By: Foulger Investments, Inc., its sole shareholder                                                  

By: /s/ Clayton Foulger (Seal)

Name: Clayton F. Foulger
        
Title: Vice President, Secretary/Treasurer

                            
WITNESS/ATTEST:            TENANT:

CHOICE HOTELS INTERNATIONAL 
SERVICES CORP.,
a Delaware corporation
_________________________        

By: /s/ David White (Seal)
                            
Name: David White
        
Title: SVP, CFO

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