Document:

Exhibit 10.1

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION SERVICES AGREEMENT (this “Agreement”) dated as of May 25, 2016, is by and among New York REIT, Inc., a Maryland corporation (the “Company”), New York Recovery Operating Partnership, L.P., a Delaware limited partnership and the operating partnership of the Company (the “Operating Partnership”), and New York Recovery Advisors, LLC, a Delaware limited liability company (the “Service Provider”). The Company and the Operating Partnership are sometimes referred to herein collectively as the “Recipients” and each individually as a “Recipient.”

 

WITNESSETH:

 

WHEREAS, the Company is a Maryland corporation created in accordance with applicable provisions of the Maryland General Corporation Law, as amended from time to time (the “MGCL”);

 

WHEREAS, the purposes of the Company are, as determined from time to time by the board of directors of the Company (the “Board of Directors”), to engage in any lawful business or activity for which a corporation may be created under the MGCL;

 

WHEREAS, the Company is the general partner of the Operating Partnership;

 

WHEREAS, on the date hereof, the Company is entering into a master combination agreement with JBG Properties Inc., JBG/Operating Partners, L.P. and their affiliates (the “Master Combination Agreement”);

 

WHEREAS, the Company desires, for a period beginning on the closing of the transactions contemplated by the Master Combination Agreement (the “Closing Date”), and ending on the date on which the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 is filed with the SEC (as defined below), on its own behalf and in its capacity as general partner of the Operating Partnership, to avail itself of the assistance of the Service Provider and to have the Service Provider undertake the duties and responsibilities hereinafter set forth; and

 

WHEREAS, the Service Provider is willing to render such services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth;

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, IT IS AGREED that:

 

1.                                      Definitions. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Company’s Charter (as herein defined), and the following terms, as used herein, shall have the meanings set forth below:

 

“Affiliate” means any Person that controls, is controlled by or under common control of, another Person. For purposes of this definition, the term “controls,” “is controlled by,” or “is under common control with” shall mean the possession, direct or indirect, of the power to direct

 

 

or cause the direction of the management and policies of an entity, whether through the ownership of voting rights, by contract or otherwise.

 

“Charter” shall mean the Articles of Amendment and Restatement of the Company in effect on the date hereof, as amended from time to time.

 

“Partnership Agreement” shall mean the Fifth Amended and Restated Agreement of Limited Partnership of the Operating Partnership dated as of the Closing Date, as amended and restated from time to time.

 

“Person” shall mean an individual, corporation, partnership, joint venture, association, company (whether of limited liability or otherwise), trust, bank or other entity, or government or any agency or political subdivision of a government.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

2.                                      Duties of the Service Provider.

 

(a)                                 The Company, on its own behalf, and in its capacity as general partner of the Operating Partnership, hereby retains and appoints the Service Provider to perform the services set forth on Schedule A hereto (the “Services”), and the Service Provider hereby accepts such appointment, all subject to the terms and conditions hereinafter set forth. The Service Provider shall devote such time and resources to the performance of the Services hereunder as it shall determine to be reasonably necessary.

 

(b)                                 It is understood and agreed that the Service Provider may retain, third-party service providers (including its Affiliates) to provide some or all of the Services to the Recipients. The Service Provider shall in all cases retain responsibility for the provision to the Recipients of Services to be performed by any third-party service provider or subcontractor or by any of the Service Provider’s Affiliates.

 

3.                                      Standard of Service.

 

(a)                                 The Service Provider represents, warrants and agrees that the Services shall be provided in good faith, in accordance with applicable law and, except as specifically provided in the Schedule A, in a manner generally consistent with the historical provision of the Services and with the same standard of care as historically provided. Subject to Section 2(b), the Service Provider agrees to assign sufficient resources and qualified personnel as are reasonably required to perform the Services in accordance with the standards set forth in the preceding sentence.

 

(b)                                 Except as expressly set forth in Section 3(a) or in any contract entered into hereunder, the Service Provider makes no representations and warranties of any kind, implied or expressed, with respect to the Services, including, without limitation, no warranties of merchantability or fitness for a particular purpose, which are specifically disclaimed. The Recipients acknowledge and agree that this Agreement does not create a fiduciary relationship,

 

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partnership, joint venture or relationships of trust or agency between the parties and that all Services are provided by Seller as an independent contractor.

 

4.                                      REIT Qualification; Other Limitations on the Service Provider Actions. Anything else in this Agreement to the contrary notwithstanding, the Service Provider shall refrain from any action which, (i) in its sole judgment (made in good faith) or (ii) the Board of Directors has previously notified the Service Provider in writing, would (a) adversely affect the status of the Company as a real estate investment trust pursuant to Section 856 of the Code; (b) cause the Recipients to be classified as an “investment company” for purposes of the Investment Company Act of 1940, as amended; (c) cause the Operating Partnership to be classified other than as a partnership for purposes of the Code; (d) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Recipients or over their securities; or (e) be prohibited by the Company’s Charter or the Partnership Agreement.

 

5.                                      Fees and Other Compensation of the Service Provider. As consideration for the Services, the Service Provider shall receive from the respective Recipients (by wire transfer of immediately available funds to account(s) specified by Service Provider in writing)  (a) an aggregate of $7,000,000 (the “Fee”) payable at the times specified on Schedule B and (b) all reasonable and documented out-of-pocket fees and costs and expenses incurred by the Service Provider in connection with providing the Services, payable within ten (10) business days of a request by the Service Provider. At the Company’s request, the Service Provider shall furnish to the Recipients a statement showing the computation of the out-of-pocket fees and costs and expenses, if any, payable under this section.

 

6.                                      Term; Termination of Agreement. The term of this Agreement shall begin on the Closing Date and shall continue in force until the date on which the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 is filed with the SEC (the “Initial Term”). Notwithstanding any other provision to the contrary, this Agreement may be terminable by the Recipients at any time upon sixty (60) days’ prior written notice to the Service Provider.  Notwithstanding anything contained herein to the contrary, in the event the Master Combination Agreement is terminated in accordance with its terms prior to the Closing, this Agreement shall terminate automatically and be of no further force or effect.  The provisions of this Section 6 and Sections 9-17 shall survive the expiration or earlier termination of this Agreement.

 

7.                                      Amendments. This Agreement shall not be changed, modified, terminated or discharged in whole or in part except by an instrument in writing signed by all parties hereto, or their respective successors or permitted assigns, or otherwise as provided herein.

 

8.                                      Assignment. This Agreement shall not be assigned by any Recipient without the prior written consent of the Service Provider, except to a Person which is a successor to such Recipient. Any assignee shall be bound hereunder to the same extent as such Recipient. Notwithstanding anything to the contrary contained herein, the economic rights of the Service Provider hereunder, including the right to receive all compensation hereunder, may be sold, transferred or assigned by the Service Provider without the consent of the Recipients.

 

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9.                                      Action Upon Termination. From and after the date of termination of this Agreement, the Service Provider shall not be entitled to compensation for further service rendered hereunder but shall be (a) paid an amount equal to the Fee not previously paid to the Service Advisor on the date of such termination and (b) reimbursed for all expenses accrued through the date of such termination within ten (10) days of such termination. The Service Provider shall forthwith upon such termination:

 

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

 

(b)                                 deliver to the Recipients a full accounting, including a statement showing all payments collected by it and a statement of all moneys held by it, covering the period following the date of the last accounting furnished to the Recipients; and

 

(c)                                  deliver to the Recipients all property and documents of the Recipients then in the custody of the Service Provider.

 

10.                               Indemnification.

 

(a)                                 Indemnification of the Recipients by the Service Provider. Subject to Section 11, the Service Provider shall indemnify, defend and hold harmless the Recipients and their respective partners, members, stockholders, other equity holders, directors, officers, employees and agents, from and against any and all claims, actions, suits, proceedings, losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and disbursements) (collectively, “Damages”), arising out of or resulting from the acts or omissions of the Service Provider and its directors, officers, employees, contractors, subcontractors and agents, which constitute gross negligence or willful misconduct with respect to the Services. The remedies provided in this Section 10(a) constitute the sole and exclusive remedy of the Recipients for any and all Damages or other claims relating to or arising from this Agreement.

 

(b)                                 Indemnification of the Service Provider by the Recipients. The Recipients shall indemnify, defend and hold harmless the Service Provider and its partners, members, stockholders, other equity holders, directors, officers, employees and agents, from and against any and all Damages arising out of or resulting from the performance by the Service Provider of the Services, including, without limitation, the negligent (but not grossly negligent) acts or omissions of the Service Provider in connection with the performance of the Services and any other acts which the Service Provider reasonably believed to be within the scope of authority conferred upon the Service Provider hereunder.

 

(c)                                  The Recipients will advance amounts to the Service Provider or its Affiliates for legal expenses and other costs incurred as a result of any legal action for which indemnification is being sought is permissible only if all of the following conditions are satisfied: (i) the legal action relates to acts or omissions with respect to the performance of duties or services on behalf of the Recipients, (ii) the legal action is initiated by a third party who is not a stockholder or is initiated by a stockholder acting in his or her capacity as such and a court of

 

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competent jurisdiction specifically approves the advancement and (iii) the Service Provider or its Affiliates undertake in writing to repay the advanced funds to the Recipients, together with the applicable legal rate of interest thereon, in cases in which such the Service Provider or its Affiliates are found not to be entitled to indemnification.

 

11.                               Limitation on Liability.  In no event shall (i) the Service Provider have any liability under this Agreement for any punitive, incidental, consequential, special or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple, whether based on statute, contract, tort or otherwise, and whether or not arising from the other party’s sole, joint, or concurrent negligence, strict liability, criminal liability or other fault or (ii) the Service Provider’s aggregate liability under this Agreement exceed an amount equal to the aggregate fees received by the Service Provider under this Agreement.

 

12.                               Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in writing, and shall be given by delivering such notice by hand or by certified mail, return receipt requested, postage pre-paid, at the following addresses of the parties hereto:

 

Recipients:

 

The Company:

 

JBG Realty Trust, Inc.

4445 Willard Avenue, Suite 400

Chevy Chase, Maryland 20815

Attention:                                         W. Matthew Kelly

E-mail:        mkelly@jbg.com

 

With a copy to:

 

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, District of Columbia 20004

Phone:                                                          (202) 637-5868

Facsimile:                                        (202) 637-5910

Attention:                                         David W. Bonser, Esq.

E-mail:                                                       david.bonser@hoganlovells.com

 

The Operating Partnership:

 

JBG Realty, L.P.

4445 Willard Avenue, Suite 400

Chevy Chase, Maryland 20815

 

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Attention:                                         W. Matthew Kelly

E-mail:        mkelly@jbg.com

 

With a copy to:

 

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, District of Columbia 20004

Phone:                                                          (202) 637-5868

Facsimile:                                        (202) 637-5910

Attention:                                         David W. Bonser, Esq.

E-mail:                                                       david.bonser@hoganlovells.com

 

The Service Provider:

 

c/o AR Global LLC

New York REIT, Inc.

405 Park Ave., 14th Floor

New York, NY 10022

Attention:                                         Jesse Galloway

 

With a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019

Phone:                                                          (212) 373-3105

Facsimile:                                        (212) 492-0105

Attention:                                         Jeffrey D. Marell, Esq.

E-mail:                                                       jmarell@paulweiss.com

 

Any party may at any time change its address for the purpose of this section by like notice.

 

13.                               Headings. The section headings herein have been inserted for convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement.

 

14.                               No Waivers. Neither the failure nor any delay on the party of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrences. No

 

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waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

15.                               Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which shall together constitute one and the same instrument.

 

16.                               Entire Agreement. 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.

 

17.                               Governing Law. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York as at the time in effect.

 

18.                               Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

19.                               Parties in Interest. The Company shall be a third-party beneficiary of this Agreement. Nothing in this Agreement shall create or be deemed to create any third-party beneficiary rights in any other person not a party to this Agreement.

 

[END OF TEXT]

 

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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be signed as of the day and year first above written.

 

 

	
 
    	
NEW   YORK REIT, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael A. Happel
    
	
 
    	
 
    	
Name:   Michael A. Happel
    
	
 
    	
 
    	
Title:   Chief Executive Officer and President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEW   YORK OPERATING PARTNERSHIP, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael A. Happel
    
	
 
    	
 
    	
Name:   Michael A. Happel
    
	
 
    	
 
    	
Title:   Chief Executive Officer and President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEW   YORK RECOVERY ADVISOR, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael A. Happel
    
	
 
    	
 
    	
Name:   Michael A. Happel
    
	
 
    	
 
    	
Title:   Chief Executive Officer and President
    

 

Signature page to Transition Services Agreement

 

 

Schedule A

 

Services

 

During the Initial Term, to the extent requested by a Recipient, the Services to be performed by the Service Provider shall be:

 

1.              Provide assistance in connection with the preparation of the Company’s required securities filings, including the Company’s (i) Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016 and (ii) Annual Report on Form 10-K for the year ended December 31, 2016.

 

2.              Provide assistance in connection with property accounting matters related to the properties and assets owned, directly or indirectly, by a Recipient.

 

3.              Provide assistance in connection with the preparation of the portion of the Company’s financial statement and Sarbanes-Oxley audits that relates to the NYRT properties for the year ended December 31, 2016.

 

4.              At a Recipient’s request, the Service Provider shall, subject to applicable confidentiality requirements, make available to the Recipient all relevant books, records, systems and data pertaining to the Recipients that are in the Service Provider’s possession and assist Recipient in accessing such books, records, systems and data in connection with  the Recipient’s migration of such books, records, systems or data to the Recipient; provided, however, that in no event shall the Service Provider be responsible for the migration of such books, records, systems or data to the Recipient.

 

 

Schedule B

 

Payment Terms

 

As consideration for the Services during the Initial Term, the Recipients shall pay to the Service Provider the Fee as follows: $2,833,334 shall be payable on the Closing Date and the remaining $4,166,666 shall be payable in equal installments (i.e., $833,333) on the first day of each of the five months following the Closing Date; provided, however, in the event the Agreement is terminated for any reason, all unpaid amounts shall be payable concurrently with such termination.

 

2Exhibit 10.2

 

OMNIBUS AMENDMENT AND TERMINATION AGREEMENT

FOR THE NEW YORK REIT, INC.

SECOND AMENDED AND RESTATED
 2014 ADVISOR MULTI-YEAR OUTPERFORMANCE AGREEMENT

 

This OMNIBUS AMENDMENT AND TERMINATION AGREEMENT FOR THE NEW YORK REIT, INC. SECOND AMENDED AND RESTATED 2014 ADVISOR MULTI-YEAR OUTPERFORMANCE AGREEMENT, dated as of May 25, 2016 (this “Agreement”), is entered into by and among New York REIT, Inc. (the “Company”), New York Recovery Operating Partnership, L.P. (the “Partnership”), New York Recovery Advisors, LLC (the “Advisor”) and each of the persons whose names are set forth on Schedule A hereto (the “Transferees”).

 

WHEREAS, the Company, the Partnership and the Advisor are party to that certain New York REIT, Inc. Second Amended and Restated 2014 Advisor Multi-Year Outperformance Agreement, effective as of August 5, 2015 (as amended, modified or supplemented, the “OPP Agreement”) (capitalized terms used but not defined herein will have the respective meanings set forth for them in the OPP Agreement);

 

WHEREAS, the Company previously issued to the Advisor the Award LTIP Units under the OPP Agreement and the Advisor previously distributed a portion of such Award LTIP Units to certain of the Transferees;

 

WHEREAS, the Award LTIP Units are governed by (i) the OPP Agreement and (ii) that certain Fourth Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of April 15, 2014 (as amended, modified or supplemented, the “Partnership LPA”);

 

WHEREAS, in addition to the Award LTIP Units, (i) the Company previously issued to the Advisor and/or the Transferees OP Units and (ii) the Advisor previously distributed the OP Units issued to the Advisor to certain of the Transferees;

 

WHEREAS, the OP Units are governed by the Partnership LPA;

 

WHEREAS, in accordance with the Partnership LPA, certain of the Transferees previously (i) received shares of common stock, par value $0.01 per share of the Company (the “Company Stock”) in respect of the redemption of certain of their OP Units and (ii) submitted a redemption request to the Partnership on May 13, 2016 (the “Redemption Request”), in respect of their respective OP Units not previously redeemed (the OP Units subject to such redemption request, the “Redeemed OP Units”);

 

WHEREAS, the Company previously issued to certain Transferees shares of restricted Company Stock, with the number of shares that remain unvested as of the date hereof set forth opposite such Transferees’ names on Schedule A (such unvested shares, the “Unvested Stock”);

 

WHEREAS, as of the date hereof, each Transferee owns the number of Award LTIP Units, OP Units (excluding Redeemed OP Units), Redeemed OP Units and shares of Unvested Stock set forth opposite such Transferee’s name on Schedule A;

 

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WHEREAS, the Company and the Partnership have entered into that certain Master Combination Agreement, dated as of the date hereof, by and among JBG Properties, Inc. (“Jaguar”), JBG/Operating Partners, L.P. and their affiliates that are parties thereto (the “Combination Agreement”);

 

WHEREAS, the consummation of the transactions contemplated by the Combination Agreement (the “Closing”) will constitute a “Change of Control” for purposes of the OPP Agreement;

 

WHEREAS, in connection with the transactions contemplated by the Combination Agreement, the Company, the Partnership (acting through the Committee) and the Advisor desire to amend the OPP Agreement and subsequently terminate the OPP Agreement, in each case, in accordance with the terms hereof.

 

NOW, THEREFORE, in consideration of the premises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree to the following:

 

1.             Effective as of immediately prior to, but subject to, the Closing:

 

a.           (i) All Award LTIP Units (whether currently held by the Advisor or a Transferee) that have been earned based on performance through the Closing in accordance with Sections 3 and 4(c) of the OPP Agreement and that are outstanding as of immediately prior to the Closing and (ii) 2,925,810 of the remaining Award LTIP Units that are outstanding as of immediately prior to the Closing shall automatically become earned and fully vested as of the Closing (collectively, the “Earned LTIP Units”).

 

b.           All Award LTIP Units not constituting Earned LTIP Units shall be automatically cancelled, forfeited and null and void as of the Closing.

 

2.             Notwithstanding Section 3(f) of the OPP Agreement or Sections 8.04 and 13.02 of the Partnership LPA (except for the book-up in accordance with Section 6.3(c) of Combination Agreement), subject to and effective immediately prior to the Closing (but conditioned thereon) and without any action on the part of the Company, the Partnership, the Advisor, the Transferees or any other person:

 

a.     (i) the Earned LTIP Units shall automatically convert into OP Units and (ii) immediately thereafter and on the same day as such conversion (and also immediately prior to the Closing, such OP Units shall be redeemed by the Partnership, and, in consideration therefor, the Partnership shall deliver to (A) the Advisor 2,925,810 shares of Company Stock (such shares, the “Advisor Consideration”) and (B) each Transferee a number of shares of Company Stock equal to the number set forth opposite such Transferee’s name on Schedule A (the “Transferee Consideration” and together with the Advisor Consideration, the “OPP Consideration”); and

 

b.     the OP Units not constituting Redeemed OP Units shall be redeemed by the Partnership, and, in consideration therefor, the Partnership deliver to each Transferee a number of shares of Company Stock equal to the number set forth opposite such Transferee’s name on Schedule A.

 

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The parties agree that the steps pursuant to this Section 2 shall be deemed to be taken in the following order: (i) the Award LTIP Units being earned in accordance with Section 1(a)(ii); (ii) the vesting of the Earned LTIP Units; (iii) the book-up in accordance with Section 6.3(c) of the Combination Agreement, (iv) conversion of Earned LTIP Units into OP Units; (v) the redemption of the OP Units for Company Stock in accordance with Section 2(b); and (vi) the Closing.

 

3.             The Partnership shall redeem the Redeemed OP Units in consideration for Company Stock in accordance with the terms of the Partnership LPA and the Redemption Request; provided, that the delivery of the shares of Company Stock in respect of such Redeemed OP Units shall be made no later than the Closing.

 

4.             The number of shares of Company Stock to be delivered to the Advisor or a Transferee in respect of the OPP consideration or as contemplated by Section 2(b) shall be appropriately adjusted in the event of any stock dividend, stock split, combination or other similar recapitalization affecting the Company Stock prior to the Closing.

 

5.             The Company and the Partnership each hereby acknowledge and agree that (i) all distributions to which the Advisor or a Transferee are entitled in respect of Award LTIP Units, OP Units, Redeemed OP Units or Unvested Stock (collectively, the “Equity”) shall be made monthly and (ii) from and after the conversion or redemption of the Equity, all distributions in respect of the shares of Company Stock delivered in exchange for such Equity shall be made at the same time and manner as the distributions made to all other shares of Company Stock.

 

6.             The Company and the Partnership shall each use their respective commercially reasonable efforts to ensure that all of the shares of Company Stock held by the Advisor or a Transferee as of the date hereof and, when issued, any shares of Company Stock acquired pursuant to the terms of this Agreement (including, without limitation, the OPP Consideration, the Unvested Stock and the shares of Company Stock issued in respect of the Redeemed OP Units and the OP Units) can be freely resold and transferred by the Transferees and the Advisor pursuant to an effective registration statement (the “Registration Statement”) and without any restrictions or limitations as soon as practicable, and in any event within 30 days of mailing of the proxy statement mailed to the shareholders of the Company in connection with the Combination Agreement.

 

7.             Each of the Advisor and each Transferee acknowledges and agrees that, except as otherwise expressly provided herein, from and after the Closing neither the Advisor nor any Transferee will have any rights to, or otherwise in respect of, any Award LTIP Units or otherwise under the OPP Agreement, including, without limitation, no right to earn or otherwise receive any additional Award LTIP Units or other amounts pursuant to the OPP Agreement or to convert any Award LTIP Units (including Earned LTIP Units) into OP Units.

 

8.             Effective as of the date hereof, this Agreement amends and is hereby incorporated in and forms a part of the OPP Agreement, and, except as amended hereby, all terms and provisions of the OPP Agreement shall be unmodified and remain in full force and effect.  Prior to the Closing or, if earlier, the termination of the Combination Agreement in accordance with its terms prior to the Closing, the OPP Agreement shall not be further amended or modified, and this Agreement

 

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shall not be rescinded, amended or otherwise modified, unless such amendment or modification is in writing and signed by the parties hereto.

 

9.             Each of the parties hereby acknowledges and agrees that, effective as of the Closing, the OPP Agreement shall be terminated and of no further force or effect; provided, that the termination of the OPP Agreement shall have no effect on the rights of the Transferees or the Advisor with respect to the matters set forth herein.  The Advisor represents and warrants to the Company and the Partnership that no individual other than the Transferees (and, if applicable, any spouse or beneficiary of any Transferee) has any right in respect of Award LTIP Units.

 

10.          The Advisor and/or the Transferees, as the case may be, shall be solely responsible for all federal, state, local or foreign taxes or any taxes under the Federal Insurance Contributions Act with respect to any payments made hereunder.  Notwithstanding anything to the contrary in this Agreement, any party providing payment under this Agreement shall, to the extent permitted by law, be entitled to deduct and withhold from any amounts otherwise payable in connection with this Agreement such amounts as are required to be deducted and withheld under the Code or any provision of applicable law.

 

11.          This Agreement supersedes all prior agreements between the parties with respect to the subject matter thereof and constitutes a complete and exclusive statement of the terms of the agreement between the parties with respect to the subject matter thereof.

 

12.          This Agreement may be executed in counterparts (including by facsimile or other electronic transmission), each one of which shall be deemed an original and all of which together shall constitute one and the same Agreement.

 

13.          This Agreement shall be governed by, interpreted under, and construed and enforced in accordance with, the Law of the State of New York, not taking into account any rules of conflicts of laws that would cause the application of the laws of any other jurisdiction.

 

14.          If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

15.          Except as expressly provided herein, this Agreement shall automatically terminate and be of no further force and effect if the Combination Agreement terminates prior to the Closing.

 

[Signature page follows]

 

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

 

 

	
 
    	
NEW   YORK REIT, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael A. Happel
    
	
 
    	
 
    	
Name:   Michael A. Happel
    
	
 
    	
 
    	
Title:   Chief Executive Officer and President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEW   YORK RECOVERY OPERATING PARTNERSHIP, L.P.
    
	
 
    	
 
    
	
 
    	
By:   New York REIT, Inc., its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Michael A. Happel
    
	
 
    	
 
    	
 
    	
Name:   Michael A. Happel
    
	
 
    	
 
    	
 
    	
Title:   Chief Executive Officer and President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NEW   YORK RECOVERY ADVISORS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Michael A. Happel
    
	
 
    	
 
    	
 
    	
Name:   Michael A. Happel
    
	
 
    	
 
    	
 
    	
Title:   Chief Executive Officer and President
    
							

 

 

	
 
    	
TRANSFEREES:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nicholas S. Schorsch
    
	
 
    	
 
    	
Name:   Nicholas S. Schorsch
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shelley D. Schorsch
    
	
 
    	
 
    	
Name:   Shelley D. Schorsch
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William M. Kahane
    
	
 
    	
 
    	
Name:   William M. Kahane
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter M. Budko
    
	
 
    	
 
    	
Name:   Peter M. Budko
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Edward M. Weil, Jr.
    
	
 
    	
 
    	
Name:   Edward M. Weil, Jr.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian S. Block
    
	
 
    	
 
    	
Name:   Brian S. Block
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael A. Happel
    
	
 
    	
 
    	
Name:   Michael A. Happel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nicholas Radesca
    
	
 
    	
 
    	
Name:   Nicholas Radesca
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jesse C. Galloway
    
	
 
    	
 
    	
Name:   Jesse C. Galloway
    

 

 

	
 
    	
TRANSFEREES   (cont’d):
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louisa Quarto
    
	
 
    	
 
    	
Name:   Louisa Quarto
    

 

 

SCHEDULE A

 

[Intentionally Omitted]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]