Document:

Exhibit 10.1

 

 

May 27, 2021

 

MacRab LLC

Attn: Mackey Alligood,
Manager

738 Mandalay Grove CT

Merritt Island, FL 32953

 

		Re:	Proposed Sale of approximately 33,191,371 Shares of Common Stock of Touchpoint
Group Holdings, Inc. (“Company”) by MacRab LLC Quoted on
the OTC Marketplace (“Market”) under the Symbol “TGHI” Registration
Statement on Form S-1, SEC File no. 333-256533

 

Dear Mr. Alligood:

 

This letter will confirm
the understanding and agreement (“Agreement”) between you and Wilson-Davis & Co., Inc., as follows:

 

We understand that
the Company has filed with the U.S. Securities and Exchange Commission (“SEC”), in accordance with the provisions
of the Securities Act of 1933, as amended (“Securities Act”), and the rules and regulations thereunder (“Securities
Act Regulations”), the Registration Statement, of which the prospectus is a part (together, the “Registration
Statement”), relating to the sale of shares of the Company to be sold by you as set forth under “Selling Stockholder”
in the Registration Statement (“Resale Shares”). Except when the context otherwise requires, the term “Registration
Statement” includes all amendments and supplements thereto and documents filed as part thereof or incorporated by reference
therein, including any information contained in a prospectus subsequently filed with the SEC pursuant to Rule 424(b) under
the Securities Act Regulations. You will furnish to us, for our use, copies of any prospectus relating to the Resale Shares. For
purposes of this Agreement, all references to the Registration Statement, the prospectus, or to any amendment or supplement thereto
will be deemed to include the most recent version filed with the SEC pursuant to its Electronic Data Gathering Analysis and Retrieval
System or, if applicable, the Interactive Data Electronic Application system when used by the SEC (collectively, “EDGAR”).

 

You agree that, from
time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, you may sell through
us the Resale Shares in the manner described under “Plan of Distribution” in the Registration Statement.

 

The amount of any discount,
commission, or other compensation to be paid by you to us in connection with the sale of the Resale Shares will be calculated in
accordance with the terms set forth in Schedule 1.

 

1.             Sale of Resale Shares by Us. Subject to the terms and conditions of this Agreement, we will use our commercially
reasonable efforts, consistent with our normal trading and sales practices; applicable state and federal laws, rules, and regulations;
and the rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”), and the Market, to sell the Resale
Shares in accordance with the Registration Statement and will confirm sales of the Resale Shares in accordance with our regular
practice. Confirmations will set forth the compensation payable by you to us for such sales and the net proceeds therefrom payable
to you in accordance with our usual settlement practices.

 

236 So. Main St. - Salt Lake City, UT
84101 or PO Box 11587 Salt Lake City, Utah 84147

Voice 801-532-1313 / Fax 801-578-2823
/ Website www.wdco.com

 

     

     

    

 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 2

 

 

 

2.             Suspension of Sales. We may suspend any sale of Resale Shares at any time and for any reason; provided, however,
that a suspension will not affect or impair any party’s obligations respecting any Resale Shares sold hereunder before the
suspension. We will notify you of our suspension of any sales promptly after such suspension.

 

3.             Delivery to Us and Sale; Settlement.

 

(a)           
Sale of Resale Shares. You acknowledge and agree that: (i) we cannot assure that we will be successful in selling
Resale Shares; (ii) we will incur no liability or obligation to you or any other person or entity if we do not sell Resale
Shares for any reason other than our failure to use our commercially reasonable efforts as required under this Agreement; and (iii) we
will be under no obligation to purchase the Resale Shares on a principal basis pursuant to this Agreement, except as otherwise
agreed by you and us.

 

(b)          
Settlement of Resale Shares. Settlement for sales of Resale Shares will occur on the second trading day (or such
earlier day as is industry practice for regular-way trading) following the date on which the sales are made (each, a “Settlement
Date”). The amount of proceeds to be delivered, or made available, to you on a Settlement Date against receipt of the
Resale Shares sold (“Net Proceeds”) will be equal to the aggregate sales price received by us, after deduction
for: (i) our commission, discount, or other compensation for the sales payable by you as set forth in Schedule 1 hereto;
(ii) any transaction fees imposed by any governmental or self-regulatory organization for the sales; and (iii) the balance
of any expenses reimbursable to us pursuant to section 7.

 

(c)          
Delivery of Resale Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent
to, electronically transfer the Resale Shares by crediting our account at The Depository Trust Company through its Deposit/Withdrawal
at Custodian (DWAC) system or by such other means of delivery as may be mutually agreed upon by the parties hereto, which in all
cases will be freely tradable, transferable, registered shares in good deliverable form. On each Settlement Date, we will deliver
the related Net Proceeds in same-day funds to an account designated by you. You agree that if the Company, or its transfer agent
(if applicable), defaults in its obligation to deliver Resale Shares on a Settlement Date through no fault of ours, you will, in
addition to and in no way limiting the rights and obligations otherwise set forth herein: (i) hold us harmless against any
loss, claim, damage, or expense (including reasonable legal fees and expenses) as incurred, arising out of or in connection with
the default by the Company or its transfer agent (if applicable); and (ii) pay to us (without duplication) any commission,
discount, or other compensation to which we would otherwise have been entitled absent the default.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 3

 

 

 

4.             Your Representations and Warranties. You represent and warrant that, as of the date of this Agreement and as of the
date of each sale of the Resale Shares and Settlement Date, unless such representation or warranty specifies a different time:

 

(a)          
Registration Statement and Prospectus. To the best of your Knowledge (as defined below) and assuming no act or omission
by us that would make such statement untrue: (i) the transactions contemplated by this Agreement meet the requirements, and
comply with the conditions, for the use of the Registration Statement under the Securities Act; (ii) the Registration Statement
has been filed with the SEC and has been declared effective by acceleration under the Securities Act; (iii) neither you nor
the Company has received, or has notice of, any order of the SEC preventing or suspending the use of the Registration Statement
or threatening or instituting proceedings for that purpose; and (iv) the Registration Statement and the offer and sale of
Resale Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and comply in all material
respects with said rule. The phrase “your Knowledge” or words of similar import mean your actual knowledge,
including facts of which you, in the reasonably prudent exercise of your duties and after due inquiry and investigation, should
be aware. You have not distributed and, before the later to occur of each Settlement Date and completion of the distribution of
the Resale Shares, will not distribute any offering material in connection with the offering or sale of the Resale Shares other
than the Registration Statement and any Issuer Free Writing Prospectus (as defined in Rule 433 of the Securities Act Regulations)
to which we have consented.

 

(b)          
No Misstatement or Omission. To the best of your Knowledge, the Registration Statement on its date conformed, and
will conform, in all material respects to the requirements of the Securities Act. To the best of your Knowledge, at each Settlement
Date, the Registration Statement, as of such date, will conform in all material respects to the requirements of the Securities
Act. To the best of your Knowledge, the Registration Statement when it became effective did not, and until the last Settlement
Date hereunder will not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading.
The foregoing will not apply to statements in, or omissions from, any document made in reliance upon, and in conformity with, information
furnished to the Company by us in writing specifically for use in the preparation thereof.

 

(c)           
Conformity with EDGAR Filing. To the best of your Knowledge, the prospectus delivered to us for use in connection
with the sale of the Resale Shares pursuant to this Agreement is identical to the version of the prospectus included in the Registration
Statement as filed via EDGAR, except to the extent permitted by Regulation S-T.

 

(d)          
No Material Adverse Change. To the best of your Knowledge, subsequent to the respective dates as of which information
is given in the Registration Statement and the Issuer Free Writing Prospectus, if any (including any document deemed incorporated
by reference therein), there has not been: (i) any material adverse change in the financial condition, business, earnings,
results of operations, assets, liabilities, operations, management, or prospects (“Material Adverse Effect”)
of the Company or any development involving a prospective Material Adverse Effect of the Company and its subsidiaries, if any,
taken as a whole; (ii) any transaction that is material to the Company; (iii) any obligation or liability, direct or
contingent (including any off-balance sheet obligations), incurred by the Company that is material to the Company; (iv) any
material change in the capital stock or outstanding long-term indebtedness of the Company; or (v) any dividend or distribution
of any kind declared, paid, or made on the capital stock of the Company, other than in each case above in the ordinary course of
business.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 4

 

 

 

(e)          
Authority; Enforcement; Ownership. You have the full legal capacity, right, power, and authority to enter into this
Agreement, to perform your obligations under this Agreement, and to consummate the transactions contemplated hereby. This Agreement
has been duly executed and delivered by you and constitutes your legal, binding, and valid obligation, enforceable against you
in accordance with its terms, except as the same may be limited by principles of equity and bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting creditors’ rights generally. You are, and will be at the time of sale, the record holder
of all of the Resale Shares, and all of the Resale Shares are owned by you free and clear of all liens, claims, encumbrances, voting
trusts, restrictions, or agreements of every kind and nature, and upon the sale of the Resale Shares as contemplated hereby, title
to the Resale Shares will vest in the buyer and transferee thereof, free and clear of all liens, claims, encumbrances, voting trusts,
restrictions, or agreements of every kind.

 

(f)           
No Conflicts. To the best of your Knowledge, the execution of this Agreement, the offering and sale of the Resale
Shares, the consummation of any of the transactions contemplated herein, and your compliance with the terms and provisions hereof:
(i) will not conflict with or result in a breach of any of the terms and provisions of, have not constituted or will not constitute
a default under, or have not resulted in or will not result in the creation or imposition of any lien, charge, or encumbrance upon
the Resale Shares pursuant to the terms of, any contract or other agreement to which you may be bound or to which any of your property
or assets is subject, except such conflicts, breaches, or defaults as may have been waived; and (ii) will not result in any
violation of the provisions of any of your organizational or governing documents or material violation of the provisions of any
statute or any order, rule, or regulation applicable to you or of any court or federal, state, or other regulatory authority or
other governmental body having jurisdiction over you.

 

(g)          
Patriot Act. You (including any director, officer, manager, partner, employee, agent, affiliate, or representative
of you) are not a person, or owned or controlled by a person, that is:

 

(i)          
the subject of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets
Control (“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or
other relevant sanctioning authorities (collectively, “Sanctions”); or

 

(ii)         
located, organized, or resident in a country or territory that is the subject of Sanctions.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 5

 

 

 

(h)          
No Prohibited Dealing or Transactions. During the past five years, you have not and are not now knowingly engaged
in any dealings or transactions with any person or in any country or territory that, at the time of the dealing or transaction,
is or was the subject of Sanctions.

 

5.            
Your Covenants. You covenant and agree that:

 

(a)          
No Prohibited Use of Proceeds. You will not, directly or indirectly, use the Net Proceeds or lend, contribute, or
otherwise make Net Proceeds available to any subsidiary, joint venture partner, or other person:

 

(i)          
to fund or facilitate any activities or business of or with any person or in any country or territory that, at the time
of such funding or facilitation, is the subject of Sanctions; or

 

(ii)         
in any other manner that will result in a violation of Sanctions by any person (including any person participating in the
offering, whether as underwriter, adviser, investor, or otherwise).

 

(b)          
No Prohibited Dealing or Transactions. You will not engage in any dealings or transactions with any person or in
any country or territory that, at the time of the dealing or transaction, is or was the subject of Sanctions.

 

(c)          
Delivery of Prospectus; Subsequent Changes. During any period in which a prospectus relating to the Resale Shares
is required to be delivered by us under the Securities Act for the offer and sale of the Resale Shares (including in circumstances
when the requirement may be satisfied pursuant to Rule 172 under the Securities Act) (the “Prospectus Delivery Period”),
you will comply with all requirements imposed upon you by the Securities Act, as from time to time in force. If, to your Knowledge,
during the Prospectus Delivery Period: (i) any event occurs that causes the prospectus, as then amended or supplemented, to
include any untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary
to make the statements made therein, in the light of the circumstances under which they were made, not misleading; or (ii) it
is necessary to amend or supplement the Registration Statement to comply with the Securities Act; you will promptly notify us to
suspend the offering of Resale Shares until the Company has appropriately amended or supplemented the Registration Statement to
correct the statement or omission and to effect compliance.

 

(d)          
Listing of Resale Shares. During the Prospectus Delivery Period, you will exercise reasonable efforts to cause the
Company: (i) to use its reasonable best efforts to cause the Resale Shares to be listed on the Market; and (ii) to qualify
the Resale Shares for sale under the securities laws of such jurisdictions as we may reasonably designate and to continue such
qualifications in effect so long as required for the distribution of the Resale Shares; provided, however, that the
Company will not be required in connection therewith to qualify as a foreign corporation or dealer in securities or file a general
consent to service of process in any jurisdiction.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 6

 

 

 

(e)          
Delivery of Registration Statement and Prospectus. At no cost to us, you will furnish, or cause the Company to furnish,
to us and our counsel copies of the Registration Statement during the Prospectus Delivery Period and all documents filed with the
SEC during such period that are deemed to be incorporated by reference therein, in each case, as soon as reasonably practicable
and in quantities as we may, from time to time, reasonably request; provided, however, that you will not be required
to furnish any document (other than the prospectus) to us to the extent such document is available on EDGAR. At our request, you
will also furnish copies of the prospectus to each exchange or market on which sales of the Resale Shares may be made.

 

(f)           
Notice of Other Sales. Without our prior written consent, you will not, directly or indirectly, offer to sell, sell,
contract to sell, grant any option to sell, or otherwise dispose of any common stock (other than the Resale Shares offered pursuant
to this Agreement or other shares of the common stock of the Company owned directly or indirectly by you that have been registered
under the Securities Act), securities convertible into or exchangeable for common stock, and warrants or rights to purchase or
acquire the Company’s common stock until all Resale Shares are sold or this Agreement is terminated.

 

(g)          
Market Activities. You will not, directly or indirectly: (i) take any action designed to cause or result in,
or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security
of the Company to facilitate the sale of the Resale Shares; (ii) sell, bid for, or purchase the Company’s common stock
in violation of Regulation M; or (iii) pay anyone, other than us, any compensation for soliciting purchases of the Resale
Shares.

 

(h)          
No Offer to Sell. You will not make, use, prepare, authorize, approve, or refer to any written communication (as
defined in Rule 405 under the Securities Act) required to be filed with the SEC that constitutes an offer to sell or solicitation
of an offer to buy Resale Shares hereunder.

 

6.            
Our Representations and Warranties.

 

(a)          
Registration and Licensure. We represent and warrant that we are, and will continue to be for the term of this Agreement:
(i) a duly registered broker-dealer under the Securities Exchange Act of 1934, as amended (“Exchange Act”),
and the applicable statutes and regulations of each state in which the Resale Shares will be offered and sold, except those states
in which we are exempt from registration or registration is not otherwise required; and (ii) a member in good standing of
FINRA. We will comply with all applicable laws and regulations in connection with sale of the Resale Shares, including Regulation
M.

 

(b)          
Anti-Money Laundering. We represent and warrant that we have policies, procedures, and internal controls in place
that are reasonably designed to comply with anti-money laundering and anti-terrorist laws and regulations applicable to us, including
the regulations and sanction programs administered by OFAC. Additionally, we represent and warrant that we have policies, procedures,
and internal controls reasonably designed to ensure that we do not accept investments in any fund, directly or indirectly, from
a person, government, organization, or entity: (i) that is or becomes subject to Sanctions administered by OFAC; (ii) that
is included in any executive order or is on the Specially Designated Nationals and Blocked Persons (SDN) List maintained by OFAC;
or (iii) whose name appears on such other lists of prohibited persons and entities as may be mandated by applicable local
law or regulation. In addition, we represent and warrant that we have policies, procedures, and internal controls reasonably designed
to be in compliance with our “know your customer” policies and procedures and any “know your customer”
regulations applicable to our activities as a selling agent and that we will consistently apply those procedures to ensure the
foregoing representations and warranties remain true and correct at all times.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 7

 

 

 

7.            
Payment of Expenses. You will pay all of your own expenses incident to the performance of your obligations under
this Agreement, including the costs of the preparation, issuance, and delivery of the Resale Shares to us, as well as any stock
or other transfer taxes, capital duties, stamp duties, or other duties payable upon the sale, issuance, or delivery of the Resale
Shares to us. In addition, you will reimburse us for all of our direct, third-party expenses, including: (a) the fees and
disbursements of our counsel; (b) the filing fees incident to any review by FINRA of the terms of the sale of the Resale Shares;
and (c) the fees and expenses incurred in connection with the qualification or registration of the Resale Shares under the
securities laws of any state. The total third-party expense reimbursement will not exceed $5,000, plus the actual amount of the
FINRA filing fee and any DWAC fees. You agree to advance to us, contemporaneously with the execution of this Agreement and as a
condition to any of our obligations hereunder, $5,000 to be applied to reimbursable costs hereunder. You authorize us to deduct
any additional amounts due to us from Net Proceeds. We will refund to you, promptly following the sale of all Resale Shares or
the termination of this Agreement, any portion of the advance not actually spent by us.

 

8.            
Conditions to Our Obligations. Our obligations hereunder are subject to the continuing accuracy and completeness
of your representations and warranties herein, your due performance of your obligations hereunder, our completion of a due diligence
review satisfactory to us in our reasonable judgment, and the continuing satisfaction (or our waiver in our sole discretion) of
the following additional conditions:

 

(a)          
Registration Statement Effective. The Registration Statement is effective and available for the sale of all Resale
Shares.

 

(b)          
No Material Notices. None of the following events will have occurred and be continuing: (i) receipt by you or
the Company of any request for additional information from the SEC or any other federal or state governmental authority during
the period of effectiveness of the Registration Statement, the response to which would require any post-effective amendments or
supplements to the Registration Statement; (ii) the issuance by the SEC or any other federal or state governmental authority
of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt by you or the Company of any notification respecting the suspension of the qualification or exemption from qualification
of any of the Resale Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; or
(iv) the occurrence of any event that requires the making of any changes in the Registration Statement so that it will not
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements made therein, in the light of the circumstances under which they were made, not misleading.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 8

 

 

 

(c)          
No Misstatement or Material Omission. We have not advised you or the Company that the Registration Statement contains
an untrue statement of fact that in our reasonable opinion is material or omits to state a fact that in our opinion is material
and is required to be stated therein or is necessary to make the statements made therein, in the light of the circumstances under
which they were made, not misleading.

 

(d)          
Material Changes. Except as contemplated in the Registration Statement or disclosed in the Company’s reports
filed with the SEC and incorporated by reference into the Registration Statement, there has not been any material adverse change
in the Company’s authorized capital stock or any Material Adverse Effect or any development that could reasonably be expected
to cause a Material Adverse Effect on the Company.

 

(e)          
Securities Act Filings Made. All filings with the SEC required by Rule 424 under the Securities Act have been made
within the applicable time period prescribed by Rule 424.

 

(f)           
Approvals. The sale of the Resale Shares either has been registered or is entitled to an exemption from registration
under the securities laws of the states in which such securities are to be offered and sold, and FINRA has not objected to the
fairness of the compensation to be received by us.

 

9.             Indemnification and Contribution.

 

(a)          
Your Indemnification. You agree to indemnify, and hold harmless, us and our directors, officers, employees, agents,
and each person, if any, who controls us within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, as follows:

 

(i)          
against all loss, liability, claim, damage, and expense whatsoever, as incurred, joint or several, arising out of or based
upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or the omission
or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements made therein,
in the light of the circumstances under which they were made, not misleading; provided that such statement or omission was
made in reliance upon written information provided by you to the Company;

 

(ii)         
against any and all loss, liability, claim, damage, and expense whatsoever, as incurred, joint or several, to the extent
of the aggregate amount paid in settlement of any commenced or threatened litigation, investigation, or proceeding by any governmental
agency or body or claim whatsoever, based upon any untrue statement or omission or any alleged untrue statement or omission contained
in the Registration Statement; provided that any such settlement is effected with your written consent, which will not be unreasonably
delayed or withheld; and

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 9

 

 

 

(iii)        
against all expense whatsoever, as expended (including the reasonable fees and disbursements of counsel), reasonably incurred
in investigating, preparing, or defending against any commenced or threatened litigation, investigation, or proceeding by any governmental
agency or body or claim whatsoever, based upon any untrue statement or omission or any alleged untrue statement or omission, to
the extent that any such expense is not paid under (i) or (ii) above;

 

provided,
however, that this indemnity agreement will not apply to any loss, liability, claim, damage, or expense to the extent arising
out of any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity
with written information furnished to you or the Company by us expressly for use in the Registration Statement (or any amendment
or supplement thereto).

 

(b)          
Our Indemnification. We agree to indemnify, and hold harmless, you and each person, if any, who: (i) controls
you within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act; or (ii) is controlled by or
under common control with you, against all loss, liability, claim, damage, and expense described in the indemnity contained in
this section 9, as incurred, but only respecting untrue statements or omissions, or alleged untrue statements or omissions, made
in the Registration Statement or any Issuer Free Writing Prospectus in reliance upon and in conformity with information furnished
to you or the Company in writing by us expressly for use therein.

 

(c)          
Procedure.

 

(i)          
Any party that proposes to assert the right to be indemnified under this section 9 will, promptly after receipt of notice
of commencement of any action against such party for which a claim is to be made against an indemnifying party or parties under
this section 9, notify each indemnifying party of the commencement of the action and provide a copy of all papers served, but the
omission so to notify each indemnifying party will not relieve the indemnifying party from: (1) any liability that it might
have to any indemnified party otherwise than under this section 9; and (2) any liability that it may have to any indemnified
party under the foregoing provision of this section 9 unless, and only to the extent that, such omission results in the forfeiture
or material impairment of substantive rights or defenses by the indemnifying party.

 

(ii)          
If any action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party
promptly after receiving notice of the commencement of the action from the indemnified party, to assume the defense of the action,
jointly with any other indemnifying party similarly notified, with counsel reasonably satisfactory to the indemnified party.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 10

 

 

 

(iii)        
After notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying
party will not be liable to the indemnified party for any legal or other expenses, except as provided below and except for the
reasonable costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified
party will have the right to employ its own counsel in any action, but the fees, expenses, and other charges of such counsel will
be at the expense of the indemnified party unless: (1) the employment of counsel by the indemnified party has been authorized
in writing by the indemnifying party; (2) the indemnified party has reasonably concluded (based on advice of counsel) that
there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available
to the indemnifying party; (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party)
between the indemnified party and the indemnifying party (in which case, the indemnifying party will not have the right to direct
the defense of such action on behalf of the indemnified party); or (4) the indemnifying party has not in fact employed counsel
to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action; in each
of which cases, the reasonable fees, disbursements, and other charges of counsel will be at the expense of the indemnifying party
or parties.

 

(iv)        
The indemnifying party or parties will not, in connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the reasonable fees, disbursements, and other charges of more than one separate firm admitted to practice in that
jurisdiction at any one time for all such indemnified party or parties.

 

(v)         
All fees, disbursements, and other charges will be reimbursed by the indemnifying party promptly after the indemnifying
party receives a written invoice relating to the fees, disbursements, and other charges in reasonable detail.

 

(vi)        
An indemnifying party will not, in any event, be liable for any settlement of any action or claim effected without its written
consent. No indemnifying party will, without the prior written consent of each indemnified party, settle or compromise, or consent
to the entry of any judgment in, any pending or threatened claim, action, or proceeding relating to the matters contemplated by
this section 9 (whether or not any indemnified party is a party thereto), unless the settlement, compromise, or consent includes
an unconditional release of each indemnified party from all liability arising out of the litigation, investigation, proceeding,
or claim and does not include a statement as to or an admission of fault, culpability, or failure to act by or on behalf of any
indemnified party.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 11

 

 

 

(d)          
Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnification
provided for in the foregoing paragraphs of this section 9 is applicable in accordance with its terms, but for any reason is held
to be unavailable from you or us, you and we will contribute to the total losses, claims, liabilities, expenses, and damages (including
any investigative, legal, and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any
action, suit, or proceeding or any claim asserted, but after deducting any contribution received by you from persons other than
us, such as persons who control you or the Company within the meaning of the Securities Act, and officers of the Company who signed
the Registration Statement and directors of the Company, who also may be liable for contribution) to which you or we may be subject
in a proportion that is appropriate to reflect the relative benefits received by you, on the one hand, and us, on the other hand.
The relative benefits received by the you, on the one hand, and us, on the other hand, will be deemed to be in the same proportion
as the total proceeds from the sale of the Resale Shares (before deducting expenses) received by you bears to the total compensation
received by us (before deducting expenses) from the sale of Resale Shares on your behalf. If, but only if, the allocation provided
by the foregoing sentence is not permitted by applicable law, the allocation of contribution will be made in a proportion that
is appropriate to reflect not only the relative benefits referred to in the foregoing sentence, but also the relative fault of
you, on the one hand, and us, on the other hand, respecting the statements or omission that resulted in the loss, claim, liability,
expense, or damage, or action in respect thereof, as well as any other relevant equitable considerations respecting the offering.
Relative fault will be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to information supplied by you or us, the intent of the parties
and their relative knowledge, access to information, and opportunity to correct or prevent the statement or omission. You and we
agree that it would not be just and equitable if contributions pursuant to this subsection 9(d) were to be determined by pro rata
or any other allocation method that does not take into account the equitable considerations referred to herein. The amount paid
or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage, or action in respect thereof,
will be deemed to include, for the purpose of this subsection 9(d), any legal or other expenses reasonably incurred by the indemnified
party in connection with investigating or defending any action or claim to the extent consistent with subsection 9(c) hereof. Notwithstanding
the foregoing provisions of this subsection 9(d), we will not be required to contribute any amount in excess of the commissions
received by us under this Agreement, and no person found guilty of fraudulent misrepresentation (within the meaning of Section
10(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
Any party entitled to contribution, promptly after receipt of notice of commencement of any action against that party for which
a claim for contribution may be made under this subsection 9(d), will notify any party or parties from whom contribution may be
sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other
obligation it or they may have under this subsection 9(d), except to the extent that the failure to so notify such other party
materially prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement
entered into pursuant to the last sentence of subsection 9(c) hereof, no party will be liable for contribution for any action or
claim settled without its written consent if the consent is required pursuant to subsection 9(c) hereof.

 

10.           Representations, Warranties, Covenants, and Agreements to Survive Delivery. The indemnity and contribution agreements
contained in section 9 of this Agreement and all representations, warranties, and covenants made by you herein or in certificates
delivered pursuant hereto will survive, as of their respective dates, regardless of: (a) any investigation made by or on behalf
of us, you, any controlling persons, or the Company (or any of their respective officers, directors, or controlling persons); (b) delivery
and acceptance of the Resale Shares and payment therefor; or (c) any termination of this Agreement.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 12

 

 

 

11.          
Termination. Each party may terminate this Agreement upon five days’ prior written notice to the other party.
If termination occurs before the Settlement Date for any sale of Resale Shares, the sale of such Resale Shares will settle in accordance
with the provisions of this Agreement. Upon termination of this Agreement, you will not have any liability to us for any discounts,
commissions, or other compensations respecting any Resale Shares not otherwise sold by us under this Agreement. You will, however,
remain liable for the reimbursement of any unpaid expenses to be borne by you as provided in section 7. This Agreement will terminate
automatically upon the settlement for the sale of the last of the Resale Shares.

 

12.          
Entire Agreement. This Agreement constitutes the entire agreement between the parties relating to the subject matter
hereof and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, between the parties
hereto respecting the subject matter hereof, and the parties agree that there are no commitments, agreements, or understandings
concerning the subject matter of this Agreement that are not contained in this document. The parties acknowledge that, in deciding
to enter into this Agreement, they have not relied upon any statements, promises, or representations, written or oral, express
or implied, other than those set forth in this Agreement. Accordingly, it is agreed that no deviation from the terms hereof will
be predicated upon any prior representations or agreements, whether oral or written. The parties acknowledge that they have negotiated
this Agreement at arm’s-length with adequate representation on an equal basis, and the filing of a suit challenging the negotiated
terms of this Agreement by either party will be deemed a default and this Agreement will be terminated as provided herein.

 

13.          
Amendment. Neither this Agreement nor any term hereof may be amended, and no amendment of any provision of this Agreement
will be valid, unless the same will be in writing and signed by all parties.

 

14.          
Severability. The provisions of this Agreement are severable and should any provision hereof be void, voidable, or
unenforceable under any applicable law, such void, voidable, or unenforceable provision will not affect or invalidate any other
provision of this Agreement, which will continue to govern the relative rights and duties of the parties as though the void, voidable,
or unenforceable provision was not a part hereof. In addition, it is the intention and agreement of the parties that all of the
terms and conditions hereof be enforced to the fullest extent permitted by law.

 

15.          
Applicable Law and Waiver. This Agreement will be governed by and construed in accordance with the laws of the state
of Utah without regard to the principles of conflicts of laws. Specified times of day refer to Utah time. You hereby irrevocably
waive, to the fullest extent permitted by applicable law, all right to trial by jury in any legal proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby.

 

16.          
Dispute Resolution; Arbitration. Any dispute arising under this Agreement will be resolved in accordance with the
arbitration provisions of your account agreement with us, which is incorporated herein by reference, and the rules of FINRA.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 13

 

 

 

17.          
Notices. Any notice, demand, request, or other communication permitted or required under this Agreement will be in
writing and will be deemed to have been given as of the date so delivered, if personally delivered; as of the date so sent, if
sent by electronic mail and receipt is acknowledged by the recipient; and one day after the date so sent, if delivered by a nationally
recognized overnight courier service, addressed as follows:

 

If to us, to:            Wilson-Davis
& Co., Inc.

236 S Main Street

Salt Lake City, UT 84101

Email: rmcbey@wdco.com

 

With copies to:    Michael
Best & Friedrich LLP

Attention: Kevin C. Timken

170 South Main Street, Suite 1000

Salt Lake City, Utah 84101

Email: kctimken@michaelbest.com

 

If to you, to:         MacRab
LLC

Attention: Mackey Alligood, Manager

738 Mandalay Grove CT

Merritt Island, FL 32953

Email: mmcfarlane@macrab.com

 

Notwithstanding the foregoing, service
of legal process or other similar communications will be given by personal delivery or nationally recognized overnight courier
and will not be given by electronic mail and will not be deemed duly given under this Agreement if delivered by such means. Each
party, by notice duly given in accordance herewith, may specify a different address for the giving of any notice hereunder.

 

18.          
Counterparts. This Agreement may be executed in any number of counterparts and any counterpart may be executed by
original, portable document format (pdf), or facsimile signature, each of which when executed and delivered will be deemed an original,
but all of which will constitute one and the same instrument.

 

19.          
Effect of Headings. The section and schedule headings herein are for convenience only and will not affect the construction
hereof.

 

20.          
Absence of Fiduciary Relationship. You acknowledge and agree that:

 

(a)          
Agency Relationship. We are acting solely as an agent in connection with the public offering of the Resale Shares,
each transaction contemplated by this Agreement, and the process leading to such transactions, and no fiduciary or advisory relationship
between the Company or any of its respective affiliates, stockholders (or other equity holders), creditors, employees, or other
party, on the one hand, and you, on the other hand, has been or will be created in respect of any of the transactions contemplated
by this Agreement, irrespective of whether or not we have advised, or are advising, the Company on other matters, and we have no
obligation to you respecting the transactions contemplated by this Agreement except the obligations expressly set forth in this
Agreement.

 

     

     

    
 

WILSON-DAVIS & CO., INC.

 

MacRab LLC

Attention: Mackey Alligood,
Manager

August 5, 2021

Page 14

 

 

 

(b)          
Capacity. You are capable of evaluating and understanding, and understand and accept, the terms, risks, and
conditions of the transactions contemplated by this Agreement.

 

(c)          
No Advice. We have not provided any legal, accounting, regulatory, or tax advice respecting the transactions contemplated
by this Agreement, and you have consulted your own legal, accounting, regulatory, and tax advisers to the extent you deemed appropriate.

 

(d)          
No Direct Conflict. You are aware that we and our affiliates are engaged in a broad range of transactions that may
involve interests that differ from yours, and we have no obligation to disclose those interests and transactions to you by virtue
of any fiduciary, advisory, or agency relationship or otherwise; provided, however, we hereby agree not to engage in any
such transaction that would cause our interests to be in direct conflict with your best interests.

 

(e)          
Waiver of Claims for Fiduciary Duty. You waive, to the fullest extent permitted by law, any claims you may have against
us for breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale of Resale Shares under this Agreement,
and you agree that we will not have any liability (whether direct or indirect, in contract, tort, or otherwise) to you in respect
of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on your behalf or in your right, other than in
respect of our obligations under this Agreement.

 

 

 

We look forward to
working with you. Please confirm that the foregoing correctly sets forth our Agreement by signing the enclosed duplicate of this
letter in the space provided and returning it to us, whereupon this letter will constitute a binding agreement as of the date first
above written.

 

	 	Very truly yours,
	 	 
	 	WILSON-DAVIS & CO., INC.
	 	 
	 	By:	 
	 	 	Robert McBey

President

  

Accepted and agreed to

    as of the above date:

 

MACRAB LLC

 

	By:	 	 
	 	Mackey Alligood, Manager	 

 

     

     

    

 

SCHEDULE 1

 

 

 

Compensation

 

 

 

You will pay to us
in cash, upon each sale of Resale Shares pursuant to this Agreement, usual and customary ticket charges and related transaction
fees plus a commission or mark-down in an amount equal to three and one-half percent (3.5%) of the gross proceeds from each sale
of Resale Shares in addition to all customary fees and charges typically imposed by us.Document

Exhibit 10.1

THIRD AMENDED AND RESTATED PROPERTY MANAGEMENT AGREEMENT
THIS THIRD AMENDED AND RESTATED PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made and entered into as of June 9, 2021, by and among The RMR Group LLC, a Maryland limited liability company (“Managing Agent”), and Diversified Healthcare Trust, a Maryland real estate investment trust (the “Company”), on behalf of itself and those of its subsidiaries as may from time to time own properties subject to this Agreement (each, an “Owner” and, collectively, “Owners”).
W I T N E S S E T H:
WHEREAS, Owners and Managing Agent are parties to a Second Amended and Restated Property Management Agreement, dated as of June 5, 2015 (as so amended, the “Original Agreement”), pursuant to which Owners have engaged Managing Agent to manage certain of their properties as described therein; and
WHEREAS, Owners and Managing Agent wish to continue the Original Agreement in force and effect with respect to services performed and fees due with respect to such services, on and prior to the date of this Agreement, but wish to amend and restate the Original Agreement as hereinafter provided, effective with respect to services performed and fees due with respect to such services after the date of this Agreement;
NOW, THEREFORE, in consideration of the premises and the agreements herein contained, Owners and Managing Agent hereby agree that the Original Agreement is hereby amended and restated to read in its entirety as follows:
1.Engagement.  
(a)Subject to the terms and conditions hereinafter set forth, Owners hereby continue to engage Managing Agent to provide the property management and administrative services with respect to the Managed Premises as contemplated by this Agreement.  Managing Agent hereby accepts such continued engagement as managing agent and agrees to devote such time, attention and effort as may be appropriate to operate and manage the Managed Premises in a diligent, orderly and efficient manner.  
As used in this Agreement, “Managed Premises” shall mean all properties of Owners that Owners shall from time to time designate as subject to this Agreement, including, without limitation, all of Owners’ office properties.   
(b)Managing Agent may subcontract out some or all of its obligations under this Agreement to third parties; provided, however, that, in any such event, Managing Agent shall be and remain primarily liable to Owners for performance hereunder.
(c)Notwithstanding anything to the contrary set forth in this Agreement, the services to be provided by Managing Agent hereunder shall exclude all services (including, without limitation, any garage management or cafeteria management services) 

whose performance by a manager to any Owner could give rise to an Owner’s receipt of “impermissible tenant service income” as defined in §856(d)(7) of the Internal Revenue Code of 1986 (as amended or superseded hereafter, the “Code”) or could in any other way jeopardize an Owner’s federal or state tax qualification as a real estate investment trust.  
2.General Parameters.  Any or all services may be performed or goods purchased by Managing Agent under arrangements jointly with or for other properties owned or managed by Managing Agent and the costs shall be reasonably apportioned.  Managing Agent may employ personnel who are assigned to work exclusively at the Managed Premises or partly at the Managed Premises and other properties owned and/or managed by Managing Agent.  Wages, benefits and other related costs of centralized accounting personnel and employees employed by Managing Agent and assigned to work exclusively or partly at the Managed Premises shall be fairly apportioned and reimbursed, pro rata, by Owners in addition to the Fee, Construction Supervision Fee and Major Renovation Fee (each as defined in Section 6).
3.Duties.  Without limitation, Managing Agent agrees to perform the following specific duties:
(a)To seek tenants for the Managed Premises in accordance with market rents and to negotiate leases, including renewals thereof, and to lease space to tenants, at rentals, and for periods of occupancy all on market terms.  To employ appropriate means in order that the availability of rental space is made known to potential tenants, including, but not limited to, the employment of brokers.  The brokerage and legal expenses of negotiating such leases and leasing such space shall be paid by the applicable Owner.
(b)To collect all rents and other income from the Managed Premises and to give receipts therefor, both on behalf of Owners, and deposit such funds in such banks and such accounts as are named, from time to time, by Owners, in agency accounts for and under the name of Owners.  Managing Agent shall be empowered to sign disbursement checks on these accounts.  Managing Agent may also use pooled bank accounts for the benefit of Owners and other owners for whom the Managing Agent provides services, provided separate records and accountings of such funds are maintained.
(c)To make contracts for and to supervise any repairs and/or alterations to the Managed Premises, including tenant improvements on reasonable commercial terms.
(d)For Owners’ account and at its expense, to hire, supervise and discharge employees as required for the efficient operation and maintenance of the Managed Premises.
(e)To obtain, at Owners’ expense, appropriate insurance for the Managed Premises protecting Owners and Managing Agent while acting on behalf of Owners against all normally insurable risks relating to the Managed Premises and complying with the requirements of Owners’ mortgagee, if any, and to cause the same to be provided and 
2

maintained by all tenants with respect to the Managed Premises to the extent required by the terms of such tenants’ leases.  Notwithstanding the foregoing, Owners may determine to purchase insurance directly for their own account.
(f)To promptly notify the applicable Owner’s insurance carriers, as required by the applicable policies, of any casualty or injury to person or property at the Managed Premises, and complete customary reports in connection therewith.
(g)To procure all supplies, other materials and services as may be necessary for the proper operation of the Managed Premises, at Owners’ expense.
(h)To pay promptly from rental receipts, other income derived from the Managed Premises, or other monies made available by Owners for such purpose, all costs incurred in the operation of the Managed Premises which are expenses of Owners hereunder, including wages or other payments for services rendered, invoices for supplies or other items furnished in relation to the Managed Premises, and pay over forthwith the balance of such rental receipts, income and monies to Owners or as Owners shall from time to time direct.  In the event that the sum of the expenses to operate and the compensation due Managing Agent exceeds gross receipts in any month and no excess funds from prior months are available for payment of such excess, Owners shall pay promptly the amount of the deficiency thereof to Managing Agent upon receipt of statements therefor.
(i)To keep Owners apprised of any material developments in the operation of the Managed Premises.
(j)To establish reasonable rules and regulations for tenants of the Managed Premises.
(k)On behalf of and in the name of Owner, to institute or defend, as the case may be, any and all legal actions or proceedings relating to the operation of the Managed Premises.
(l)To maintain the books and records of Owners reflecting the management and operation of the Managed Premises, making available for reasonable inspection and examination by Owners or their representatives all books, records and other financial data relating to the Managed Premises at the place where the same are maintained.
(m)To prepare and deliver seasonably to tenants of the Managed Premises such statements of expenses or other information as shall be required on the landlord’s part to be delivered to such tenants for computation of rent, additional rent, or any other reason.
(n)To aid, assist and cooperate with Owners in matters relating to taxes and assessments and insurance loss adjustments, notify Owners of any tax increase or special 
3

assessments relating to the Managed Premises and to enter into contracts for tax abatements services.
(o)To provide such emergency services as may be required for the efficient management and operation of the Managed Premises on a twenty-four (24)-hour basis.
(p)To enter into contracts on commercially reasonable terms for utilities (including, without limitation, water, fuel, electricity and telephone) and for building services (including, without limitation, cleaning of windows, common areas and tenant space, ash, rubbish and garbage hauling, snow plowing, landscaping, carpet cleaning and vermin extermination), and for other services as are appropriate to the Managed Premises.
(q)To seek market terms for all items purchased or services contracted by it under this Agreement.
(r)To take such action generally consistent with the provisions of this Agreement as Owners might with respect to the Managed Premises if personally present.
(s)To, from time to time, or at any time requested by the Board of Trustees of the Company (the “Trustees”), make reports of its performance of the foregoing services to the Company. 
In addition, with respect to the senior living communities owned by Owners and managed by third party operators, including, but not limited to, Five Star Senior Living Inc. or certain of its subsidiaries, if requested by Owners, Manager shall oversee major capital projects and repositionings as requested by Owners from time to time (“Major SL Capital Projects”). 
4.Authority.  Owners give to Managing Agent the authority and powers to perform the foregoing duties on behalf of Owners and authorize Managing Agent to incur such reasonable expenses, as contemplated in Sections 2, 3 and 5 on behalf of Owners as are necessary in the performance of those duties.
5.Special Authority of Managing Agent.  In addition to, and not in limitation of, the duties and authority of Managing Agent contained herein, Managing Agent shall perform the following duties:
(a)Terminate tenancies and sign and serve in the name of Owners such notices therefor as may be required for the proper management of the Managed Premises.
(b)At Owners’ expense, institute and prosecute actions to evict tenants and recover possession of rental space, and recover rents and other sums due; and when expedient, settle, compromise and release such actions or suits or reinstate such tenancies.
4

6.Compensation.
(a)In consideration of the services to be rendered by Managing Agent hereunder, Owners agree to pay and Managing Agent agrees to accept as its compensation (i) a management fee (the “Fee”) equal to three percent (3%) of the gross collected rents actually received by Owners from the Managed Premises, such gross rents to include all fixed rents, percentage rents, additional rents, operating expense and tax escalations, and any other charges paid to Owners in connection with occupancy of the Managed Premises, but excluding any amounts collected from tenants to reimburse Owners for the cost of capital improvements or for expenses incurred in curing any tenant default or in enforcing any remedy against any tenant; (ii) a construction supervision fee (the “Construction Supervision Fee”) in connection with all interior and exterior construction renovation or repair activities at the Managed Premises, including, without limitation, all tenant and capital improvements in, on or about the Managed Premises, undertaken during the term of this Agreement, other than ordinary maintenance and repair, equal to five percent (5%) of the cost of such construction which shall include the costs of all related professional services and the cost of general conditions; and (iii) a renovation and repositioning fee (the “Major Renovation Fee”) in connection with all Major SL Capital Projects equal to three percent (3%) of the cost of such Major SL Capital Projects which shall include the costs of all related professional services and the cost of general conditions.  
(b)Unless otherwise agreed, the Fee shall be due and payable monthly, in arrears based on a reasonable annual estimate or budget with an annual reconciliation within thirty (30) days after the end of each calendar year.  The Construction Supervision Fee and the Major Renovation Fee shall each be due and payable periodically, as agreed by Managing Agent and Owners, based on actual costs incurred to date.  
(c)Notwithstanding anything herein to the contrary, Owners shall reimburse Managing Agent for reasonable travel expenses incurred when traveling to and from the Managed Premises while performing its duties in accordance with this Agreement; provided, however, that reasonable travel expenses shall not include expenses incurred for travel to and from the Managed Premises by personnel assigned to work exclusively at the Managed Premises.
(d)Managing Agent shall be entitled to no other additional compensation, whether in the form of commission, bonus or the like for its services under this Agreement.  Except as otherwise specifically provided herein with respect to payment by Owners of legal fees, accounting fees, salaries, wages, fees and charges of parties hired by Managing Agent on behalf of Owners to perform operating and maintenance functions in the Managed Premises, and the like, if Managing Agent hires third parties to perform services required to be performed hereunder by Managing Agent without additional charge to Owners, Managing Agent shall (except to the extent the same are reasonably attributable to an emergency at the Managed Premises) be responsible for the charges of such third parties.
5

7.Term of Agreement. This Agreement shall continue in force and effect until December 31, 2041, and, on December 31 of each year after the effective date of this Agreement (each, an “Extension Date”), the term of this Agreement shall be automatically extended an additional year so that the term of this Agreement thereafter ends on the twentieth anniversary of such Extension Date.
Notwithstanding any other provision of this Agreement to the contrary, this Agreement, or any extension thereof, may be terminated prior to the expiration of the term:
(a)by the Company (on behalf of itself and Owners), (i) upon sixty (60) days’ prior written notice to Managing Agent (such termination, a “Termination for Convenience”), (ii) for Cause, immediately upon written notice to Managing Agent (such termination, a “Termination for Cause”), (iii) for a Performance Reason, upon written notice to Managing Agent given within sixty (60) days after the end of the calendar year giving rise to such Performance Reason (such termination, a “Termination for Performance”), or (iv) by written notice at any time during the twelve (12) month period immediately following the date a Managing Agent Change of Control occurred; or
(b)by Managing Agent, for Good Reason, upon sixty (60) days’ prior written notice to the Company (or ninety (90) days if the Company takes steps to cure any relevant default within thirty (30) days of written notice to the Company).
Any notice of termination shall include the reason for such termination.
In the event of a Termination for Convenience by the Company or a termination by Managing Agent pursuant to Section 7(b), the Company shall pay Managing Agent an amount in cash (the “Full Termination Fee”) equal to the sum of the present values of Monthly Future Fees payable for the Remaining Term, determined by assuming that a Monthly Future Fee is payable for each month in the Remaining Term on the thirtieth (30th) day after the end of that month and calculating for each Monthly Future Fee the present value of that fee by applying a discount rate to that fee equal to one-twelfth (1/12) the sum of the applicable Treasury Rate plus 300 basis points, with monthly periods for discounting.  
In the event of a Termination for Performance, the Company shall pay Managing Agent an amount in cash (the “Performance Termination Fee”) equal to the sum of the present values of Monthly Future Fees payable for the first one hundred twenty (120) months of the Remaining Term, determined by assuming that a Monthly Future Fee is payable for each of the first one hundred twenty (120) months in the Remaining Term on the thirtieth (30th) day after the end of that month and calculating for each Monthly Future Fee the present value of that fee by applying a discount rate to that fee equal to one-twelfth (1/12) the sum of the applicable Treasury Rate plus 300 basis points, with monthly periods for discounting.  It is expressly understood and agreed that a Termination for Performance and payment of the Performance Termination Fee is the Company’s intended remedy for a Performance Reason.
6

No Full Termination Fee or Performance Termination Fee shall be payable in the event of termination by the Company pursuant to Section 7(a)(ii) (Termination For Cause) or Section 7(a)(iv) (following a Managing Agent Change of Control).
The provisions of this Section 7 shall not apply as a limitation on the amount which may be paid by agreement of the Company and Managing Agent in connection with a transaction pursuant to which any assets or going business values of Managing Agent are acquired by the Company in association with termination of this Agreement and the Full Termination Fee or the Performance Termination Fee, as applicable, is in addition to any amounts otherwise payable to Managing Agent under this Agreement as compensation for services and for expenses of or reimbursement due to Managing Agent through the date of termination.
8. Termination.  Upon termination of this Agreement with respect to any of the Managed Premises for any reason whatsoever, Managing Agent shall as soon as practicable turn over to Owners all books, papers, funds, records, keys and other items relating to the management and operation of such Managed Premises, including, without limitation, all leases in the possession of Managing Agent and shall render to Owners a final accounting with respect thereto through the date of termination.  Owners shall be obligated to pay all compensation for services rendered by Managing Agent hereunder prior and up to the effective time of such termination, including, without limitation, any Fees, Construction Supervision Fees and Major Renovation Fees, as applicable, and shall pay and reimburse to Managing Agent all expenses and costs incurred by Managing Agent prior and up to the effective time of such termination which are otherwise payable or reimbursable to Managing Agent pursuant to the terms of this Agreement (collectively, “Accrued Fees”).  The amount of such fees paid as compensation pursuant to the foregoing sentence shall be subject to adjustment in accordance with the annual reconciliation contemplated by Section 6(b) and consistent with past practices in performing such reconciliation.
A computation of all Accrued Fees and of the Termination Fee, if any, due upon termination shall be delivered by Managing Agent to the Company within thirty (30) days following the effective date of termination. The Accrued Fees and, to the extent applicable, the Full Termination Fee or Performance Termination Fee, due upon termination shall be payable within ten (10) business days following the delivery to the Company of such computation.
In addition to other actions on termination of this Agreement, for up to one hundred twenty (120) days following the date of notice of a termination of this Agreement, Managing Agent shall cooperate with the Company and the Owners and use commercially reasonable efforts to facilitate the orderly transfer of (i) management of the Managed Premises and (ii) Major SL Capital Projects.  In connection therewith Managing Agent shall assign to the Company, to one or more Owners, or to their designee(s), as directed by the Company, and the Company, such Owner(s) or their designee(s) shall assume, all contracts entered into by Managing Agent pursuant to this Agreement, but excluding all insurance contracts, and multi-property contracts not limited in scope to the Managed Premises and all contracts with affiliates of Managing Agent.  Managing Agent shall also transfer to the Company all proprietary information with respect to the Company and/or the Owners.  Additionally, the Company, one or 
7

more Owners, or their designee(s) shall have the right to offer employment to any employee of Managing Agent whom Managing Agent proposes to terminate in connection with a Covered Termination and Managing Agent shall cooperate with the Company, such Owners, or their designee(s) in connection therewith.
9.Assignment of Rights and Obligations.
(a)Without Owners’ prior written consent, Managing Agent shall not sell, transfer, assign or otherwise dispose of or mortgage, hypothecate or otherwise encumber or permit or suffer any encumbrance of all or any part of its rights and obligations hereunder, and any transfer, encumbrance or other disposition of an interest herein made or attempted in violation of this paragraph shall be void and ineffective, and shall not be binding upon Owners.  Notwithstanding the foregoing, Managing Agent may assign its rights and delegate its obligations under this Agreement to any subsidiary of Parent so long as such subsidiary is then and remains Controlled by Parent. 
(b)Owners, without Managing Agent’s consent, may not assign their respective rights or delegate their respective obligations hereunder.
(c)Any assignment permitted hereunder shall not release the assignor hereunder.
10.Indemnification and Insurance.
(a)Owners agree to defend, indemnify and hold harmless Managing Agent from and against all costs, claims, expenses and liabilities (including reasonable attorneys’ fees) arising out of Managing Agent’s performance of its duties in accordance with this Agreement including, without limitation, injury or damage to persons or property occurring in, on or about the Managed Premises and violations or alleged violations of any law, ordinance, regulation or order of any governmental authority regarding the Managed Premises except any injury, damage or violation resulting from Managing Agent’s fraud, gross negligence or willful misconduct in the performance of its duties hereunder.
(b)Owners and Managing Agent shall maintain such commercially reasonable insurance as shall from time to time be mutually agreed by Owners and Managing Agent.
11.Notices.  Any notice, report or other communication required or permitted to be given hereunder shall be in writing and shall be deemed given on the date of actual delivery, if delivered personally, or on the date of receipt, if sent by overnight courier (providing proof of delivery) to the parties or if sent by email of a .pdf attachment (providing confirmation of transmission) at the following street addresses or email addresses, as applicable (or at such other United States street address or email address for a party as shall be specified by like notice):
8

If to the Company or the Owners:
Diversified Healthcare Trust
Two Newton Place
255 Washington Street, Suite 300
Newton, Massachusetts 02458
Attn: President 
Email: jfrancis@rmrgroup.com
Attn: Secretary
Email: jclark@rmrgroup.com
        with copies (which shall not constitute notice) to:
Sullivan & Worcester LLP
One Post Office Square
Boston, MA  02109
Attn: Lindsey A. Getz 
Email: lgetz@sullivanlaw.com
If to Managing Agent: 
The RMR Group LLC
Two Newton Place
255 Washington Street, Suite 300
Newton, Massachusetts 02458
Attn: Chief Financial Officer and Treasurer
Email: mjordan@rmrgroup.com
        with copies (which shall not constitute notice) to:
Skadden, Arps, Slate, Meagher & Flom LLP
One Rodney Square
920 N. King Street
Wilmington, Delaware 19801
Attn: Faiz Ahmad
Email: faiz.ahmad@skadden.com
12.Limitation of Liability.  The Declarations of Trust establishing certain Owners, a copy of each, together with all amendments thereto (the “Declarations”), are duly filed with the State Department of Assessments and Taxation of Maryland, provide that the names of such Owners refers to the trustees under such Declarations collectively as trustees, but not individually or personally.  No trustee, officer, shareholder, employee or agent of such Owners shall be held to any personal liability, jointly or severally, for any obligation of, or claim against, such Owners.  All persons and entities dealing with such Owners, in any way, shall look only to the respective assets of such Owners for the payment of any sum or the performance of any obligation of such Owners.  In any event, all liability of such Owners hereunder is limited to the 
9

interest of such Owners in the Managed Premises and, in the case of Managing Agent, to its interest hereunder.
13.Acquisitions and Dispositions of Properties.  Unless Owners and Managing Agent otherwise agree in writing, all properties from time to time acquired by Owners or their affiliates shall automatically become subject to this Agreement without amendment hereof.  Similarly, this Agreement shall automatically terminate with respect to all properties disposed of by Owners in the ordinary course of business, effective upon such disposition.
14.Modification of Agreement.  This Agreement may not be modified, altered or amended in any manner except by an amendment in writing, duly executed by the parties hereto.
15.Independent Contractor.  This Agreement is not one of general agency by Managing Agent for Owners, but Managing Agent is being engaged as an independent contractor.  Nothing in this Agreement is intended to create a joint venture, partnership, tenancy-in-common or other similar relationship between Owners and Managing Agent for any purposes whatsoever, and, without limiting the generality of the foregoing, neither the terms of this Agreement nor the fact that Owners and Managing Agent have joint interests in any one or more investments, ownership or other interests in any one or more entities or may have common officers or employees or a tenancy relationship shall be construed so as to make them such partners or joint venturers or impose any liability as such on either of them.
16.Governing Law.  The provisions of this Agreement and any Dispute (as defined below), whether in contract, tort or otherwise, shall be governed by and construed in accordance with the laws of the State of Maryland without regard to principles of conflicts of law.
17.Successors and Assigns.  This Agreement shall be binding upon, and inure to the benefit of, any successors or permitted assigns of the parties hereto as provided herein.
18.No Third Party Beneficiary.  Except as otherwise provided in Section 21(i), no person or entity other than the parties hereto and their successors and permitted assigns is intended to be a beneficiary of this Agreement.
19.Severability.  If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof.
20.Survival.  Except for Sections 1 through 5 and Section 13, all other provisions of this Agreement shall survive the termination hereof.  Any termination of this Agreement shall be without prejudice to the rights of the parties hereto accrued prior to the termination or upon termination.
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21.Arbitration.
(a)Any disputes, claims or controversies arising out of or relating to this Agreement, the provision of services by Managing Agent pursuant to this Agreement or the transactions contemplated hereby, including any disputes, claims or controversies brought by or on behalf of Company, any Owner, Parent, Managing Agent or any holder of equity interests (which, for purposes of this Section 21, shall mean any holder of record or any beneficial owner of equity interests or any former holder of record or beneficial owner of equity interests) of Company, any Owner, Parent or Managing Agent, either on his, her or its own behalf, on behalf of Company, any Owner, Parent or Managing Agent or on behalf of any series or class of equity interests of Company, any Owner, Parent or Managing Agent or holders of any equity interests of Company, any Owner, Parent or Managing Agent against Company, any Owner, Parent or Managing Agent or any of their respective trustees, directors, members, officers, managers (including Managing Agent or its successor), agents or employees, including any disputes, claims or controversies relating to the meaning, interpretation, effect, validity, performance or enforcement of this Agreement, including this arbitration agreement or the governing documents of Company, any Owner, Parent or Managing Agent (all of which are referred to as “Disputes”), or relating in any way to such a Dispute or Disputes shall, on the demand of any party to such Dispute or Disputes, be resolved through binding and final arbitration in accordance with the Commercial Arbitration Rules (the “Rules”) of the American Arbitration Association (“AAA”) then in effect, except as those Rules may be modified in this Section 21.  For the avoidance of doubt, Disputes are intended to include derivative actions against the trustees, directors, officers or managers of Company, any Owner, Parent or Managing Agent and class actions by a holder of equity interests against those individuals or entities and Company, any Owner, Parent or Managing Agent.  For the avoidance of doubt, and not as a limitation, a Dispute shall include a Dispute made derivatively on behalf of one party against another party.  For purposes of this Section 21, the term “equity interest” shall mean, (i) in respect of the Company, shares of beneficial interest of the Company, (ii) in respect of any other Owner, equity interests in that Owner, (iii) in respect of Managing Agent, “membership interest” in Managing Agent as defined in the Maryland Limited Liability Companies Act and (iv) in respect of Parent, shares of capital stock of Parent.
(b)There shall be three (3) arbitrators. If there are only two (2) parties to the Dispute, each party shall select one (1) arbitrator within fifteen (15) days after receipt by respondent of a copy of the demand for arbitration. The arbitrators may be affiliated or interested persons of the parties. The arbitrators may be affiliated or interested persons of the parties. If there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand, shall each select, by the vote of a majority of the claimants or the respondents, as the case may be, one (1) arbitrator within fifteen (15) days after receipt of the demand for arbitration.  The arbitrators may be affiliated or interested persons of the claimants or the respondents, as the case may be. If either a claimant (or all claimants) or a respondent (or all respondents) fail(s) to timely select an arbitrator then the party (or parties) who has selected an arbitrator may request AAA to 
11

provide a list of three (3) proposed arbitrators in accordance with the Rules (each of whom shall be neutral, impartial and unaffiliated with any party) and the party (or parties) that failed to timely appoint an arbitrator shall have ten (10) days from the date AAA provides the list to select one (1) of the three (3) arbitrators proposed by AAA. If the party (or parties) fail(s) to select the second (2nd) arbitrator by that time, the party (or parties) who have appointed the first (1st) arbitrator shall then have ten (10) days to select one (1) of the three (3) arbitrators proposed by AAA to be the second (2nd) arbitrator; and, if he/they should fail to select the  second (2nd) arbitrator by such time, AAA shall select, within fifteen (15) days thereafter, one (1) of the three (3) arbitrators it had proposed as the second (2nd) arbitrator. The two (2) arbitrators so appointed shall jointly appoint the third (3rd) and presiding arbitrator (who shall be neutral, impartial and unaffiliated with any party) within fifteen (15) days of the appointment of the second (2nd) arbitrator. If the third (3rd) arbitrator has not been appointed within the time limit specified herein, then AAA shall provide a list of proposed arbitrators in accordance with the Rules, and the arbitrator shall be appointed by AAA in accordance with a listing, striking and ranking procedure, with each party having a limited number of strikes, excluding strikes for cause.
(c)The place of arbitration shall be Boston, Massachusetts unless otherwise agreed by the parties.
(d)There shall be only limited documentary discovery of documents directly related to the issues in dispute, as may be ordered by the arbitrators.  For the avoidance of doubt, it is intended that there shall be no depositions and no other discovery other than limited documentary discovery as described in the preceding sentence.
(e)In rendering an award or decision (the “Award”), the arbitrators shall be required to follow the laws of the State of Maryland without regard to principles of conflicts of law.  Any arbitration proceedings or award rendered hereunder and the validity, effect and interpretation of this arbitration agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §1 et seq.  The Award shall be in writing and shall state the findings of fact and conclusions of law on which it is based.  Any monetary award shall be made and payable in U.S. dollars free of any tax, deduction or offset.  Subject to Section 21(g), each party against which the Award assesses a monetary obligation shall pay that obligation on or before the thirtieth (30th) day following the date of the Award or such other date as the Award may provide.
(f)Except to the extent expressly provided by this Agreement or as otherwise agreed by the parties thereto, each party involved in a Dispute shall bear its own costs and expenses (including attorneys’ fees), and the arbitrators shall not render an award that would include shifting of any such costs or expenses (including attorneys’ fees) or, in a derivative case or class action, award any portion of the Company’s, Parent’s or Managing Agent’s, as applicable, award to the claimant or the claimant’s attorneys.  Each party (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand, respectively) shall bear the costs and 
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expenses of its (or their) selected arbitrator and the parties (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand) shall equally bear the costs and expenses of the third (3rd) appointed arbitrator.
(g)Notwithstanding any language to the contrary in this Agreement, the Award, including but not limited to, any interim Award, may be appealed pursuant to the AAA’s Optional Appellate Arbitration Rules (“Appellate Rules”). The Award shall not be considered final until after the time for filing the notice of appeal pursuant to the Appellate Rules has expired. Appeals must be initiated within thirty (30) days of receipt of the Award by filing a notice of appeal with any AAA office. Following the appeal process, the decision rendered by the appeal tribunal may be entered in any court having jurisdiction thereof.  For the avoidance of doubt, and despite any contrary provision of the Appellate Rules, Section 21(f) hereof shall apply to any appeal pursuant to this Section and the appeal tribunal shall not render an award that would include shifting of any costs or expenses (including attorneys’ fees) of any party.
(h)Following the expiration of the time for filing the notice of appeal, or the conclusion of the appeal process set forth in Section 21(g), the Award shall be final and binding upon the parties thereto and shall be the sole and exclusive remedy between those parties relating to the Dispute, including any claims, counterclaims, issues or accounting presented to the arbitrators.  Judgment upon the Award may be entered in any court having jurisdiction.  To the fullest extent permitted by law, no application or appeal to any court of competent jurisdiction may be made in connection with any question of law arising in the course of arbitration or with respect to any award made except for actions relating to enforcement of this agreement to arbitrate or any arbitral award issued hereunder and except for actions seeking interim or other provisional relief in aid of arbitration proceedings in any court of competent jurisdiction.
(i)This Section 21 is intended to benefit and be enforceable by the Company, Owners, Managing Agent, Parent and their respective holders of equity interests, trustees, directors, officers, managers (including Managing Agent or its successor), agents or employees, and their respective successors and assigns and shall be binding upon the Company, Owners, Managing Agent, Parent and their respective holders of equity interests, and be in addition to, and not in substitution for, any other rights to indemnification or contribution that such individuals or entities may have by contract or otherwise.
22.Consent to Jurisdiction and Forum.  The exclusive jurisdiction and venue in any action brought by any party hereto pursuant to this Agreement shall lie in any federal or state court located in Baltimore, Maryland.  By execution and delivery of this Agreement, each party hereto irrevocably submits to the jurisdiction of such courts for itself and in respect of its property with respect to such action. The parties irrevocably agree that venue would be proper in such court, and hereby waive any objection that such court is an improper or inconvenient forum for the resolution of such action.  The parties further agree and consent to the service of any process required by any such court by delivery of a copy thereof in accordance with Section 11 
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and that any such delivery shall constitute valid and lawful service of process against it, without necessity for service by any other means provided by statute or rule of court.  EACH PARTY HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE PROVISION OF SERVICES BY MANAGING AGENT PURSUANT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  Notwithstanding anything herein to the contrary, if a demand for arbitration of a Dispute is made pursuant to Section 21, this Section 22 shall not pre-empt resolution of the Dispute pursuant to Section 21.
23.Entire Agreement.  This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes any pre-existing agreements with respect to such subject matter.
24.Other Agreements.  The Company and Managing Agent are also parties to a Business Management Agreement, dated as of the date hereof, as in effect from time to time (the “Business Management Agreement”).  The parties agree that this Agreement does not include or otherwise address the rights and obligations of the parties under the Business Management Agreement and that the Business Management Agreement provides for its own separate rights and obligations of the parties thereto, including, without limitation separate compensation payable by the Company to Managing Agent thereunder for services to be provided by the Managing Agent pursuant to the Business Management Agreement.
[Signature Page To Follow.]
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IN WITNESS WHEREOF, the parties hereto have executed this Third Amended and Restated Property Management Agreement as a sealed instrument as of the date above first written.
 																					
					MANAGING AGENT:

							
					THE RMR GROUP LLC

							
					By:	/s/ Matthew P. Jordan	
						Name: Matthew P. Jordan	
						Title: Executive Vice President, Chief Financial Officer and Treasurer	
						
							
					OWNERS:

							
					DIVERSIFIED HEALTHCARE TRUST, on its
own behalf and on behalf of its subsidiaries

				
							
					By:	/s/ Jennifer F. Francis	
						Name: Jennifer F. Francis	
						Title: President and Chief Executive Officer	
							
	SOLELY IN RESPECT OF
SECTION 21, PARENT:
				
				
							
					THE RMR GROUP INC.  

							
					By:	/s/ Matthew P. Jordan	
						Name: Matthew P. Jordan	
						Title: Executive Vice President, Chief Financial Officer and Treasurer	
						
							

[Signature Page to Third Amended and Restated Property Management Agreement]

Exhibit A
Definitions
The following definitions shall be applied to the terms used in the Agreement for all purposes, unless otherwise clearly indicated to the contrary.  All capitalized terms used in this Exhibit A but not defined in this Exhibit A shall have the respective meanings given to those terms in the Agreement.  Unless otherwise noted, all section references in this Exhibit A refer to sections in the Agreement.
(1)    “Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, the first Person.
(2)    “Cause” shall mean: (i) Managing Agent engages in any act that constitutes bad faith, fraud, willful misconduct or gross negligence in the performance of its obligations under this Agreement; (ii) a default by Managing Agent in the performance or observance of any material term, condition or covenant contained in this Agreement to be performed by Managing Agent, the consequence of which is a Material Adverse Effect; (iii) Managing Agent is convicted of a felony; (iv) any executive officer or senior manager of Managing Agent is convicted of a felony or other crime, whether or not a felony, involving his or her duties as an employee of Managing Agent and who is not promptly discharged and any actual loss suffered by the Company as a result of such felony or crime is not promptly reimbursed; (v) any involuntary proceeding is commenced against Managing Agent seeking liquidation, reorganization or other relief with respect to Managing Agent or its debts under bankruptcy, insolvency or similar law and such proceeding is not dismissed in one hundred twenty (120) days; or (vi) Managing Agent authorizes the commencement of a voluntary proceeding seeking liquidation, reorganization or other relief with respect to Managing Agent or its debts under bankruptcy, insolvency or similar law or the appointment of a trustee, receiver, liquidator, custodian or similar official of Managing Agent or any substantial part of its property.
(3)    “Charitable Organization” shall mean an organization that is described in section 501(c)(3) of the Code (or any corresponding provision of a future United States Internal Revenue law) which is exempt from income taxation under section 501(a) thereof.
(4)    “Continuing Parent Directors” shall mean, as of any date of determination, any member of the Board of Directors of Parent, who was (i) a member of the Board of Directors of Parent as of the date of this Agreement or (ii) nominated for election or elected to the Board of Directors of Parent by, or whose election to the Board of Directors of Parent was made or approved by, (x) the affirmative vote of a majority of Continuing Parent Directors who were members of the Board of Directors of Parent at the time of such nomination or election (and not including a director whose initial assumption of office is in connection with an actual or threatened contested solicitation, including, without limitation, a consent or proxy solicitation, relating to the election of directors of Parent or an unsolicited tender offer or exchange offer for Parent’s voting securities) or (y) so long as Parent is Controlled by one or both Founders, by one or both Founders.
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(5)    “Control” of an entity, shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities, by contract or otherwise and the participles “Controls” and “Controlled” have parallel meanings.
(6)    “Covered Termination” shall mean a Termination for Convenience, a Termination for Performance or a termination by Managing Agent pursuant to Section 7(b).
(7)    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.
(8)    “Founder” shall mean each of Barry M. Portnoy and Adam D. Portnoy.
(9)    “Good Reason” shall mean: (i) a default by the Company in the performance or observance of any material term, condition or covenant contained in this Agreement to be performed by the Company, the consequence of which was materially adverse to Managing Agent and which did not result from and was not attributable to any action, or failure to act, of Managing Agent, and such default shall continue for a period of sixty (60) days (or ninety (90) days if the Company takes steps to cure such default within thirty (30) days of written notice to the Company) after written notice thereof by Managing Agent specifying such default and requesting that the same be remedied in such sixty (60) day period; (ii) the Company materially reduces the duties and responsibilities historically performed by Managing Agent or materially reduces the scope of the authority of Managing Agent as historically exercised by Managing Agent under this Agreement, including, without limitation, the Company appoints or engages a Person or personnel to perform material services historically provided by Managing Agent or its personnel; or (iii) the consummation of any direct or indirect sale, lease, transfer, conveyance or other disposition, in one or a series of related transactions, of all or substantially all of the assets of the Company (including securities of the Company’s subsidiaries) on a consolidated basis, other than a sale, lease, transfer, conveyance or other disposition to a subsidiary of the Company Controlled by the Company, an RMR Managed Company or another entity to which Managing Agent has agreed to provide management services.
(10)    “Immediate Family Member” as used to indicate a relationship with any individual, shall mean (x) any child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, and any other individual (other than a tenant or employee), which individual is sharing the household of that individual or (y) a trust, the beneficiaries of which are the individual and/or any Immediate Family Member of such individual.
(11)    “Law” means any law, statute, ordinance, rule, regulation, directive, code or order enacted, issued, promulgated, enforced or entered by any governmental entity.
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(12)    “Managing Agent Change of Control” shall be deemed to have occurred upon any of the following events:
(i)    any “person” or “group” (as such terms are used in Sections 13(d) of the Exchange Act), other than a Permitted Managing Agent Transferee or a Person to whom Managing Agent would be permitted to assign this Agreement pursuant to Section 24 of this Agreement, becomes the “beneficial owner” (as defined in Rule 13d-3 and Rule 13d-5 promulgated under the Exchange Act, except that any person shall be deemed to beneficially own securities such person has a right to acquire whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of fifty percent (50%) or more of the then outstanding voting power of the voting securities of Managing Agent and/or Parent, as applicable;
(ii)    the consummation of any direct or indirect sale, lease, transfer, conveyance or other disposition, in one or a series of related transactions, of all or substantially all of the assets of Managing Agent (including securities of Managing Agent's subsidiaries) on a consolidated basis, except the transfer of outstanding voting power of the voting securities of Managing Agent or Parent to a Permitted Managing Agent Transferee or if the transaction constitutes a permissible assignment under Section 9 of this Agreement; or
(iii)    at any time, the Continuing Parent Directors cease for any reason to constitute the majority of the Board of Directors of Parent;
provided, however, that if Managing Agent is no longer a subsidiary of Parent as a result of a transaction not constituting a Managing Agent Change of Control, then a Managing Agent Change of Control shall be deemed to have occurred upon any of the foregoing events that affect Managing Agent only (and no Managing Agent Change of Control shall be deemed to have occurred if such event affects Parent).
(13)    “Material Adverse Effect” means any fact, circumstance, event, change, effect or occurrence that, individually or in the aggregate with all other facts, circumstances, events, changes, effects and occurrences, has had a material adverse effect on the business, results of operations or financial condition of the Company and its subsidiaries, taken as a whole, but will not include facts, circumstances, events, changes, effects or occurrences to the extent attributable to: (i) any changes in general United States or global economic conditions; (ii) any changes in conditions generally affecting any of the industry(ies) in which the Company and its subsidiaries operate; (iii) any Performance Reason or any decline in the market price, credit rating or trading volume of the Company’s securities (it being understood that the facts or occurrences giving rise to or contributing to such Performance Reason or decline may be taken into account in determining whether there has been a Material Adverse Effect); (iv) regulatory, legislative or political conditions or securities, credit, financial or other capital markets conditions, in each case in the United States or any foreign jurisdiction; (v) any failure by the Company to meet any internal or published projections, forecasts, estimates or predictions in respect of revenues, earnings or other financial or operating metrics for any period (it being understood that the facts or occurrences giving rise to or contributing to such failure may be taken into account in 
A-3

determining whether there has been a Material Adverse Effect); (vi) any actions that were not recommended by Managing Agent that are approved by the Independent Trustees, as defined in the Company’s Bylaws, as in effect from time to time, or the consequences thereof; (vii) any change in applicable Law or United States generally accepted accounting principles (or authoritative interpretations thereof); (viii) geopolitical conditions, the outbreak or escalation of hostilities, any acts of war, sabotage or terrorism; or (ix) any hurricane, tornado, flood, earthquake or other natural disaster.  
(14)    “Monthly Future Fee” shall mean (i) the sum of the total Fee, the total Construction Supervision Fee and the total Major Renovation Fee earned by Managing Agent under this Agreement for the twelve (12)-month period immediately preceding the effective date of a Covered Termination, divided by (ii) twelve (12), and rounded upward to the nearest whole number.
If there is a Covered Termination following a merger between the Company and another real estate investment trust to which Managing Agent is providing property management services (an “RMR Managed Company”), the Monthly Future Fee shall be calculated by reference to the sum of (i) the aggregate of the total Fee paid by the Company to Managing Agent and the total similar fee payable by the other RMR Managed Company to Managing Agent for the applicable period, (ii) the aggregate of the total Construction Supervision Fee payable by the Company to Managing Agent and the total construction supervision fee payable by the other RMR Managed Company to Managing Agent for the applicable period and (iii) the aggregate of the total Major Renovation Fee payable by the Company to Managing Agent and the total renovation fee, if applicable, payable by the other RMR Managed Company to Managing Agent for the applicable period.
If there is a Covered Termination following the spin-off of a subsidiary of the Company (by sale in whole or part to the public or distribution to the Company’s shareholders) to which the Company contributed properties (the “Contributed Properties”) and which was an RMR Managed Company both at the time of the spin-off and on the date of the Covered Termination, in determining the Monthly Future Fee, if any portion of the period with respect to which the Monthly Future Fee is calculated is prior to the spin-off, the monthly installments of the Fee shall be reduced to the extent they are based upon the gross collected rents of the Contributed Properties for such period, the monthly installments of the Construction Supervision Fees shall be reduced to the extent they are based upon the construction renovation or repair activities at the Contributed Properties for such period and the monthly installments of the Major Renovation Fees shall be reduced to the extent they are based upon the major renovation or repositioning activities at the Contributed Properties for such period.
(15)    “Parent” shall mean The RMR Group Inc., a Maryland corporation.
(16)    “Performance Reason” shall mean, for any period of three (3) consecutive calendar years beginning with the 2016 calendar year: (i) for each calendar year in such period, the TSR of the Company is less than (A) the percentage total shareholder return of the SNL Index (as defined in the Business Management Agreement) for the year, minus (B) five percent (5%) (for illustrative purposes and the avoidance of doubt, if the percentage total shareholder 
A-4

return of the SNL Index for a year is positive fifteen percent (15%), the TSR for the year must be less than ten percent (10%) in the same year to count as one of the three (3) consecutive years that may be included within a Performance Reason), and (ii) for each calendar year in such period, the TSR of the Company is less than the TSR (determined for each company separately) of sixty-six percent (66%) of the member companies in the SNL Index (for illustrative purposes and the avoidance of doubt, if there are ninety (90) member companies in the SNL Index, the Company’s TSR for a year must be less than the TSR of sixty (60) member companies in the SNL Index).  For purposes of the calculation of TSR and percentage total shareholder return of the SNL Index in clauses (i) and (ii) of the preceding sentence, each such calendar year shall be treated as a measurement period (a “Measurement Period”).
(17)    “Permitted Managing Agent Transferee” shall mean: (A) Parent or any of its Controlled subsidiaries; (B) any employee benefit plan of Managing Agent, Parent or any of their respective Controlled subsidiaries; (C) any Founder or any of a Founder’s lineal descendants; (D) any Immediate Family Member of a Founder or any of an Immediate Family Member’s lineal descendants; (E) any Qualifying Employee, any Immediate Family Member of a Qualifying Employee or any of the Qualifying Employee’s or Immediate Family Member’s lineal descendants; (F) a Person described in clause (C), (D) or (E) to whom securities are transferred by will or pursuant to the laws of descent and distribution by a Person described in clause (C), (D) or (E) of this definition; (G) any entity Controlled by any Person or Persons described in clause (B), (C), (D), (E) or (F) of this definition; (H) a Charitable Organization Controlled by any Person or Persons described in clause (C), (D), (E) or (F) of this definition; (I) an entity owned, directly or indirectly, by shareholders (or equivalent) of Managing Agent or Parent in substantially the same proportions as their ownership of Managing Agent or Parent, as applicable, immediately prior to the acquisition of beneficial ownership; (J) any Person approved by the Company in writing; or (K) an underwriter temporarily holding securities of Managing Agent or Parent, as applicable, pursuant to an offering of such securities; provided, however, that “lineal descendants” shall not include Persons adopted after attaining the age of eighteen (18) years and any such adopted Person’s descendants, and further provided that any subsidiary described in clause (A) or (B), any entity described in clause (G) and Charitable Organization described in clause (H), shall only be a Permitted Managing Agent Transferee so long as it remains Controlled as provided in clause (A), (B), (G) or (H). 
(18)    “Person” shall mean an individual or any corporation, partnership, limited liability company, trust, unincorporated organization, association, joint venture or any other organization or entity, whether or not a legal entity.
(19)     “Qualifying Employee” means any employee of Managing Agent or Parent or any of their respective subsidiaries who is and has been an employee of Managing Agent or Parent or any of their respective subsidiaries for at least thirty-six (36) months.
(20)    “Remaining Term” shall mean the remaining period in the term of this Agreement had the Agreement not been terminated (rounded to nearest month), up to a maximum of twenty (20) years.
A-5

(21)    “Treasury Rate” shall mean, for the calculation of the present value of a Monthly Future Fee, the arithmetic mean of the yields under the heading “Week Ending” published in the most recent Federal Reserve Statistical Release H.15 under the caption “Treasury Constant Maturities” for the maturity corresponding to the date that is the thirtieth (30th) day after the end of the month for which the Monthly Future Fee is assumed to be payable.  If no maturity exactly corresponds to such maturity, yields for the two published maturities most closely corresponding to such period shall be calculated pursuant to the immediately preceding sentence and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding in each of such relevant periods to the nearest month.  For purposes of calculating the applicable Treasury Rates, the most recent Federal Reserve Statistical Release H.15 (or any successor publication which is published weekly by the Federal Reserve System and which establishes yields on actively traded United States government securities adjusted to constant maturities) published prior to the required date of payment of the Termination Fee will be used.  If such statistical release is not published at the time of any determination under this Agreement, then any publicly available source of similar market data which shall be selected by Managing Agent, will be used.
(22)    “TSR” of a company shall be determined by (i) subtracting, for the relevant Measurement Period, (A) the closing price of the common shares of the company on the principal national securities exchange (as defined in the Exchange Act) on which the shares are traded, on the last trading day immediately prior to the beginning of the Measurement Period (the “Initial Price”) from (B) the sum of the average closing price of the common shares on the ten (10) consecutive trading days having the highest average closing prices during the final thirty (30) trading days of the Measurement Period, plus the aggregate amount of dividends declared in respect of a common share during the Measurement Period, and (ii) dividing the result by the Initial Price.
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