Document:

Exhibit

EXHIBIT 10.10

THIRD AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT

This THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Third Amendment”) is made and entered into as of March 17, 2017 (the “Third Amendment Effective Date”) by and among TIER OPERATING PARTNERSHIP LP, a limited partnership formed under the laws of the State of Texas (together with its successors and assigns, the “Borrower”), TIER REIT, INC., a corporation formed under the laws of the State of Maryland (the “Parent”), each of the undersigned Lenders (as defined below) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”). 

WITNESSETH:

WHEREAS, the Borrower, the Parent, the Administrative Agent and the financial institutions initially a signatory to the Credit Agreement (as defined below) together with their successors and assigns under Section 13.5 of the Credit Agreement (the “Lenders”) are parties to that certain Amended and Restated Credit Agreement dated as of June 30, 2015 (as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of July 20, 2015 and by that certain Increase and Second Amendment to Amended and Restated Credit Agreement dated as of March 15, 2016, the “Credit Agreement”); 

WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders amend certain terms and conditions of the Credit Agreement as described herein; and

WHEREAS, the Administrative Agent and the Lenders party to this Third Amendment have agreed to so amend certain terms and conditions of the Credit Agreement to make certain agreed upon modifications on the terms and conditions set forth below in this Third Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto hereby agree as follows:

		
	1.
	Definitions. All capitalized undefined terms used in this Third Amendment shall have the meanings ascribed thereto in the Credit Agreement, as amended hereby.

		
	2.
	Amendments to Credit Agreement.  Effective as set forth in Section 3 below, the Credit Agreement is hereby amended as follows:

		
	a.
	Section 1.1 of the Credit Agreement is hereby amended to add the following new definition in the appropriate alphabetical order:

“Third Amendment Effective Date” means March 17, 2017.
		
	b.
	The following definitions appearing in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety as follows:

“Development Property” means a Property on which the improvements (other than tenant improvements on unoccupied space) related to the development have not been completed.

        

“Fee Letters” means, collectively, each of those certain fee letters dated as of September 26, 2014, April 20, 2015 and February 17, 2017, by and among the Borrower, the Arrangers, the Administrative Agent and the Syndication Agent.
“Interest Expense” means, for any period, without duplication, (a) total interest expense of the Parent, including capitalized interest not funded under a construction loan interest reserve account but excluding any non-cash interest charges to the extent accruing as the result of hedge ineffectiveness under GAAP, determined on a consolidated basis in accordance with GAAP for such period, plus (b) the Parent’s Ownership Share of Interest Expense of Unconsolidated Affiliates for such period.
“Total Asset Value” means, at a given time, the sum (without duplication) of all of the following of the Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP applied on a consistent basis: (a) cash and Cash Equivalents (other than tenant deposits and other cash and Cash Equivalents that are subject to a Lien or a Negative Pledge or the disposition of which is restricted in any way); plus (b) with respect to all Properties owned (or leased pursuant to a Ground Lease) by the Borrower or any Subsidiary for the 12-month period ending on such date of determination, the quotient of (i) Net Operating Income of the Parent and its Subsidiaries for such 12-month period, divided by (ii) the Capitalization Rate; plus (c) with respect to any Property acquired during the 12-month period ending on such date of determination, the acquisition price paid for all such Properties; plus (d) the GAAP book value of all Development Properties; plus (e) the acquisition price of Unimproved Land, less any GAAP impairment charges specific to any such asset; plus (f) the acquisition price of all mortgage notes receivable and mezzanine loans, less any GAAP impairment charges specific to any such asset.  The Borrower’s Ownership Share of assets held by Unconsolidated Affiliates (excluding assets of the type described in the immediately preceding clause (a)) will be included in the calculation of Total Asset Value consistent with the above described treatment for wholly owned assets.  For purposes of determining Total Asset Value, Properties which are not valued under subsections (c), (d), or (e), of this definition above, and which either have an Occupancy Rate of less than 85% as of the applicable date of determination or shall have had an Occupancy Rate of 85% or more for less than two (2) consecutive fiscal quarters during the six (6) consecutive fiscal quarter period ending on such date of determination, shall be valued at the greater of (i) gross book value (undepreciated) reported for GAAP purposes and (ii) the capitalized value obtained under subsection (b) of this definition above, provided, however, that any such Property (x) may only be included in the calculation of Total Asset Value with a valuation calculated pursuant to this clause for a maximum of six (6) consecutive fiscal quarters (and thereafter any such Property shall be valued in accordance with subsection (b) above), and (y) may not be included in the calculation of Total Asset Value with a valuation calculated pursuant to this clause if such Property has already been valued pursuant to this clause and subsequently valued in any other manner.  Notwithstanding the foregoing, for purposes of determining Total Asset Value, to the extent the amount of Total Asset Value attributable to (A) Properties leased under Ground Leases would exceed 20% of Total Asset Value, such excess shall be excluded, (B) Properties subject to adjustment above for having an Occupancy Rate of less than 85% would exceed 

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25% of Total Asset Value, such excess shall be excluded, (C) assets of the type described in the foregoing clauses (d), (e), (f) and the Borrower’s Ownership Share of assets held by Unconsolidated Affiliates would exceed, in the aggregate, 30% of Total Asset Value, such excess shall be excluded and (D) Development Properties would exceed 10% of Total Asset Value, such excess shall be excluded.
“Unencumbered Asset Value” means, at a given time, the sum (without duplication) of all of the following of the Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP applied on a consistent basis:  (a) with respect to all Unencumbered Pool Properties owned (or leased pursuant to a Ground Lease) by the Borrower or any Subsidiary for the 12-month period ending on such date of determination, the quotient of (i) Unencumbered NOI (excluding NOI attributable to Development Properties) for the 12-month period ending on such date of determination  divided by (ii) the Capitalization Rate, plus (b) with respect to any Unencumbered Pool Property acquired during the 12-month period ending on such date of determination, the acquisition price paid for all such Unencumbered Pool Properties plus (c) the GAAP book value of all Unencumbered Development Properties.  Notwithstanding the foregoing, for purposes of determining Unencumbered Asset Value, to the extent the amount of Unencumbered Asset Value attributable to (A) Unencumbered Pool Properties leased under Ground Leases would exceed 10% of Unencumbered Asset Value, such excess shall be excluded and (B) Unencumbered Development Properties would exceed 15% of Unencumbered Asset Value, such excess shall be excluded.
“Unsecured Interest Expense” means, with respect to a Person and for any period, all Interest Expense of such Person for such period attributable to Unsecured Indebtedness of such Person.
		
	c.
	Section 1.1 of the Credit Agreement is hereby amended to add the following new definition in the appropriate alphabetical order:

“Unencumbered Development Property” means any Development Property (or any Property that shall have (a) previously been a Development Property, (b) had (i) an Occupancy Rate of less than 85% as of the applicable date of determination or (ii) an Occupancy Rate of 85% or more for less than two (2) consecutive fiscal quarters during the six (6) consecutive fiscal quarter period ending on such date of determination and (c) been valued on a gross book value basis for purposes of calculating Total Asset Value as of the applicable date of determination) that satisfies all of the following requirements as confirmed by the Administrative Agent: (w) such Development Property is owned in fee simple, or leased under a Ground Lease, by the Borrower or a Guarantor; (x) such Development Property is located in a State of the United States of America or in the District of Columbia; (y) regardless of whether such Development Property is owned by the Borrower or a Subsidiary, the Borrower has the right directly, or indirectly through a Subsidiary, to take the following actions without the need to obtain the consent of any Person: (i) to create Liens on such Development Property as security for Indebtedness of the Borrower or such Subsidiary, as applicable, and (ii) to sell, transfer or otherwise dispose of such Development Property; and (z) neither such Development Property, nor if such Development Property is owned by a Subsidiary, any of the Borrower’s 

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direct or indirect ownership interest in such Subsidiary, is subject to (i) any Lien other than Permitted Liens or (ii) any Negative Pledge.
		
	d.
	Section 10.1(a) of the Credit Agreement is hereby amended (i) to replace “$1,053,000,000” appearing therein with “$909,185,575” and (ii) to replace “Second Amendment Effective Date” appearing therein with “Third Amendment Effective Date”.

		
	e.
	Section 10.1(e) of the Credit Agreement is hereby amended and restated in its entirety as follows: “[Reserved.]”.

		
	3.
	Conditions to Effectiveness.    This Third Amendment shall become effective upon (a) the Administrative Agent’s receipt of (i) counterparts of (A) this Third Amendment duly executed and delivered by the Borrower, the Parent, the Administrative Agent and the Requisite Lenders and (B) the Consent and Reaffirmation attached as Annex I hereto duly executed by the Guarantors (the “Consent and Reaffirmation”) and (ii) a Compliance Certificate dated as of the Third Amendment Effective Date and calculated on a pro forma basis for the Parent’s fiscal quarter ending December 31, 2016 signed by a Responsible Officer of the Parent and (b) the payment of all fees and expenses required to be paid on or before the effectiveness of this Third Amendment.

		
	4.
	Representations and Warranties.  Each of the Parent and the Borrower hereby represent and warrant to the Administrative Agent, each Issuing Bank and each Lender as follows:

		
	a.
	Except for changes in factual circumstances specifically and expressly permitted under the Loan Documents, the representations and warranties of the Borrower and each other Loan Party contained in Article VII of the Credit Agreement or any other Loan Document to which any of them is a party, are true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty shall be true and correct in all respects) on and as of the date hereof with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty shall be true and correct in all respects) on and as of such earlier date).

		
	b.
	No Default or Event of Default exists on the date hereof or would exist immediately after giving effect to this Amendment.

		
	5.
	Limited Amendment; Ratification of Loan Documents.  Except as specifically amended or modified hereby, the terms and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect, and are hereby ratified and affirmed in all respects.  This Third Amendment shall not be deemed a waiver of, or consent to, or a modification or amendment of, any other term or condition of the Credit Agreement or any other Loan Document, except as expressly set forth herein.

		
	6.
	Governing Law. This Third Amendment shall be governed by and construed in accordance with the laws of the State of New York. 

		
	7.
	Miscellaneous. This Third Amendment may be executed in any number of counterparts, which shall together constitute an entire original agreement, and shall be binding upon and inure to the benefit 

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of the parties hereto and their respective successors and assigns.  This Third Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby.  No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.  Any determination that any provision of this Third Amendment or the Consent and Reaffirmation or any application hereof or thereof is invalid, illegal, or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality, or enforceability of any other provisions of this Third Amendment or the Consent and Reaffirmation.  Each of the Borrower and the Parent represents and warrants that it has consulted with independent legal counsel of its selection in connection herewith and is not relying on any representations or warranties of the Administrative Agent or its counsel in entering into this Third Amendment.  Each of this Third Amendment and the Consent and Reaffirmation shall constitute a Loan Document.
*******

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IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed as of the date first above written.

	
		
	TIER OPERATING PARTNERSHIP LP,
as the Borrower

	 
	 

	By: Tier GP, Inc., a Delaware corporation, its general partner

	 
	 

	By:
	/s/ Dallas E. Lucas

	Name:
	Dallas E. Lucas

	Title:
	Chief Financial Officer

	 
	 

	TIER REIT, INC.,
as the Parent

	 
	 

	By:
	/s/ Dallas E. Lucas

	Name:
	Dallas E. Lucas

	Title:
	Chief Financial Officer

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent, an Issuing Bank, the Swingline Lender, and a Lender

By:        /s/ Dale Northup    
Name:    Dale Northup
Title:    Senior Vice President

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

JPMORGAN CHASE BANK, N.A., as an Issuing Bank and as a Lender  

		
	By: 
	/s/ Ryan M. Dempsey             
Name:  Ryan M. Dempsey  
Title:     Authorized Officer

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

U.S. BANK NATIONAL ASSOCIATION, as a Lender 

By: /s/ Sergio Reyes        
     Name: Sergio Reyes    
      Title:   SVP    

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender 

By: /s/ Ashish Tandon            
     Name: Ashish Tandon    
      Title:  Vice President    

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

ASSOCIATED BANK, NATIONAL ASSOCIATION, as a Lender 

By:  /s/ Michael J. Sedivy            
     Name: Michael J. Sedivy    
      Title:  Senior Vice President    

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

FIFTH THIRD BANK, an Ohio banking corporation, as a Lender 

By: /s/ Michael Glandt            
     Name: Michael Glandt    
      Title:  Vice President    

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

PNC BANK, NATIONAL ASSOCIATION, as a Lender 

By: /s/ Joseph J. Seroke            
     Name: Joseph J. Seroke    
      Title:  Vice President    

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

DEUTSCHE BANK AG, NEW YORK BRANCH, as a Lender 

By: /s/ James Rolison                
     Name: James Rolison    
     Title:   Managing Director    

By:  /s/ Joanna Soliman                
     Name: Joanna Soliman    
      Title:   Vice President    

Signature Page to 
Third Amendment to
Amended and Restated Credit Agreement

ANNEX I
CONSENT AND REAFFIRMATION
March 17, 2017
Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Third Amendment to Amended and Restated Credit Agreement dated as of June 30, 2015 (as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of July 20, 2015, by that certain Increase and Second Amendment to Amended and Restated Credit Agreement dated as of March 15, 2016, and as may be further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) by and among TIER OPERATING PARTNERSHIP LP, a limited partnership formed under the laws of the State of Texas (together with its successor and assigns, the “Borrower”), TIER REIT, INC., a corporation formed under the laws of the State of Maryland (the “Parent”), the Lenders party thereto from time to time and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”), which Third Amendment is dated as of March 17, 2017 (the “Amendment”).  Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement as amended by the Amendment.
Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the Guaranty and any other Loan Document executed by it and acknowledges and agrees that the Guaranty and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed.  All references to the Credit Agreement contained in the above‐referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, restated, supplemented or otherwise modified.

[Signature Pages Follow]

GUARANTORS:

TIER REIT, INC., a Maryland corporation

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC FLORIDA III HOLDINGS, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC FLORIDA III, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC (US), LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

101 SOUTH TRYON GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

101 SOUTH TRYON LP, a Delaware limited partnership

By: 101 SOUTH TRYON GP, LLC, a Delaware
limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmation

BUENA VISTA PLAZA GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

BUENA VISTA PLAZA LP, a Delaware limited partnership

By: BUENA VISTA PLAZA GP, LLC, a Delaware
limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

BURNETT PLAZA GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

BURNETT PLAZA LP, a Texas limited partnership

By: BURNETT PLAZA GP, LLC, a Delaware
limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

CENTREPORT OFFICE CENTRE GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmation

CENTREPORT OFFICE CENTRE LP, a Texas limited partnership

By: CentrePort Office Centre GP, LLC,
a Delaware limited liability company, its
general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TR ELDRIDGE GP, LLC, a Texas limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TR ELDRIDGE LP, a Texas limited partnership

By: TR Eldridge GP, LLC,
a Texas limited liability company, its
general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC REALTY II, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC LOOP CENTRAL HOLDINGS, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmation

IPC LOOP CENTRAL, LP, a Delaware limited partnership

By: IPC REALTY II, LLC, a Delaware limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC LP/WP HOLDINGS, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC LOUISVILLE PROPERTIES, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TR TERRACE GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TR TERRACE LP, a Delaware limited partnership

By: TR TERRACE GP, LLC, a Delaware limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

WOODCREST IV, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmation

5950 SHERRY PROPERTY, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

WOODCREST HOLDING, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

WOODCREST I, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

WOODCREST II, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

WOODCREST III, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

WOODCREST ROAD ASSOCIATES, L.P., a Pennsylvania limited partnership

By: WOODCREST I, LLC, a Delaware limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmation

WOODCREST ROAD URBAN RENEWAL, LLC, a New Jersey limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TR DOMAIN, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

BURNETT PARKING LP, a Delaware limited partnership

By: Burnett Parking GP, LLC, a Delaware limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

BURNETT PARKING GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TIER PARTNERS, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TIER BUSINESS TRUST, a Maryland statutory trust

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TIER BT, INC., a Delaware corporation

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmation

IPC METROCENTER, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC METROCENTER HOLDINGS, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC RETAIL PROPERTIES, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

THREE PARKWAY HOLDING, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

THREE PARKWAY, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TR ELDRIDGE PLACE GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TR ELDRIDGE PLACE LP, a Delaware limited partnership

By: TR Eldridge Place GP, LLC, a Delaware limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmation

TWO BRIARLAKE PLAZA GP, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

TWO BRIARLAKE PLAZA LP, a Delaware limited partnership

By: TWO BRIARLAKE PLAZA GP, LLC, a Delaware limited liability company, its general partner

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC 500 PRATT STREET, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

IPC 500 PRATT STREET HOLDINGS, LLC, a Delaware limited liability company

By:    /s/ Dallas E. Lucas    
Name:    Dallas E. Lucas
Title:    Chief Financial Officer

Signature Page to
Consent and Reaffirmationtsla-ex107_954.htm

 

Exhibit 10.7

 

February 20, 2017

 

Deepak Ahuja

 

Dear Deepak:

 

Tesla, Inc. (“Tesla” or the “Company”) is pleased to offer you the exempt, salaried position of Chief Financial Officer (CFO) on the terms set forth below.  As CFO you will perform the duties customarily associated with this position. You will report to Elon Musk, Chief Executive Officer. Your duties, responsibilities, job title, and work location may be changed at any time by Tesla.

 

Your annualized salary will be $500,000 per year, subject to standard payroll deductions and withholdings. As an exempt employee, you will not be entitled to overtime.  You will be eligible for vacation and sick leave according to Tesla's standard policy.  Subject to the rules of the applicable plan documents, you will also be eligible to receive other benefits Tesla may provide to its employees (e.g., health and dental insurance coverage) beginning on your date of hire.  Tesla may consider you for bonuses, although the amount of such bonuses, if any, and the criteria for determining the award of such bonuses, if any, shall be in the sole discretion of Tesla.  Of course, Tesla reserves the right to modify your compensation and benefits from time to time, as it deems necessary.

 

Tesla, Inc. offers a competitive benefits package described below:

 

Shares:  Should you decide to accept the position we will recommend to Tesla’s Board of Directors, or committee thereof, that the company grant you an equity award of $15,000,000 of which 25% will be in the form of Stock Options and the rest in the form of Restricted Stock Units (“RSUs”), which you will only receive at the time of vesting, as described below.  This value is determined based on our standard equity granting policies.  The actual number of RSUs and Stock Options that you receive will depend on the value of our stock at or around the time your grant is approved, as determined by Tesla’s Compensation Committee.  Please note that for purposes of this allocation, one (1) Stock Option is equivalent to three (3) Stock Option Shares (“SOSs”).  This award shall be subject to the terms and conditions of Tesla's 2010 Equity Incentive Plan and your Award Agreement, including vesting requirements.  

 

Specifically, the RSUs shall vest over a period of four years as follows: twenty-five percent (25%) of the award shall vest on the first anniversary and six and twenty-five hundredths percent (6.25%) shall vest quarterly thereafter for the following twelve quarters on the date vesting begins, (such date to be indicated in your Award Agreement), subject to your continuing eligibility through the applicable vesting dates. No RSUs shall vest other than on the first anniversary and twelve subsequent quarterly vest dates, and no right to any vesting shall be earned or accrued prior to such date.  

 

In contrast, with respect to Stock Options, twenty-five percent (25%) of the SOSs, subject to the Stock Option, shall vest on the first anniversary and the remaining SOSs shall vest monthly over the next thirty-six (36) months in equal monthly amounts subject to your continuing eligibility through applicable vesting dates.  No SOSs shall vest other than on the first anniversary and thirty-six subsequent monthly vest dates and no rights to any vesting shall be earned or accrued prior to such date.  

 

 

 

Please be aware that Tesla makes no representation about the future value of the equity award granted herein, and you should be aware that the value of this award will fluctuate in the future.  Finally, the receipt of this award is subject to your signing the appropriate  Award Agreement through the E*Trade portal.

 

401K Program: You will be eligible to participate in Tesla’s 401K program after your first pay check. Our 401K program is administered by Fidelity Investments.

 

Vacation Program: Regular full-time employees and part-time employees who work 20 hours per week are eligible for PTO immediately and accrue PTO at 1.25 days per month (for a total of 15 days per calendar year).

 

The Company is excited about your joining and looks forward to a beneficial and fruitful relationship.  Nevertheless, you should be aware that your employment with the Company is for no specified period and constitutes at-will employment.  As a result, you are free to resign at any time, for any reason or for no reason, with or without notice.  Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice.

 

We ask that, if you have not already done so, you disclose to Tesla any and all agreements relating to your prior employment that may affect your eligibility to be employed by Tesla or limit the manner in which you may be employed.  It is Tesla’s understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case.  We want to emphasize that we do not wish you to bring any confidential or proprietary materials of any former employer which would violate any obligations you may have to your former employer.  You agree not to make any unauthorized disclosure to Tesla or use on behalf of Tesla any confidential information belonging to any of your former employers (except in accordance with agreements between Tesla and any such former employer).  You also warrant that you do not possess any property containing a third party's confidential and proprietary information.  Of course, during your employment with Tesla, you may make use of information generally known and used by persons with training and experience comparable to your own, and information which is common knowledge in the industry or is otherwise legally available in the public domain. Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which Tesla is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to Tesla.

 

As a Tesla employee, you will be expected to abide by all Tesla policies and procedures, and, as a condition of your employment, you will sign and comply with Tesla's standard confidentiality agreement which prohibits unauthorized use or disclosure of Tesla confidential information or the confidential information of Tesla's clients.

 

 

 

In addition, to ensure the rapid and economical resolution of disputes that may arise in connection with your employment with Tesla, you and Tesla agree that any and all disputes, claims, or causes of action, in law or equity, arising from or relating to your employment, or the termination of your employment, will be resolved, to the fullest extent permitted by law by final, binding and confidential arbitration in your city and state of employment conducted by the Judicial Arbitration and Mediation Services/Endispute, Inc. (“JAMS”), or its successors, under the then current rules of JAMS for employment disputes; provided that:  

 

	
 
	
a.
	
Any claim, dispute, or cause of action must be brought in a party’s individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding; and

	
 
	
b.
	
The arbitrator shall have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and 

	
 
	
c.
	
The arbitrator shall not have the authority to consolidate the claims of other employees and shall not have the authority to fashion a proceeding as a class or collective action or to award relief to a group or class of employees in one arbitration proceeding; and

	
 
	
d.
	
The arbitrator shall issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award; and

	
 
	
e.
	
Both you and Tesla shall be entitled to all rights and remedies that you or Tesla would be entitled to pursue in a court of law; and

	
 
	
f.
	
Tesla shall pay all fees in excess of those which would be required if the dispute was decided in a court of law.

Nothing in this agreement is intended to prevent either you or Tesla from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  Notwithstanding the foregoing, you and Tesla each have the right to resolve any issue or dispute arising under the Proprietary Information and Inventions Agreement by Court action instead of arbitration.

Arbitrable claims do not include, and this Agreement does not apply to or otherwise restrict, administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict your ability to file such claims (including discrimination and/or retaliation claims filed with the Equal Employment Opportunity Commission and unfair labor practice charges filed with the National Labor Relations Board). Otherwise, it is agreed that arbitration shall be the exclusive remedy for administrative claims.

 

You acknowledge and agree that: (i) in the course of your employment by the Company, it will be necessary for you to create, use, or have access to (A) technical, business, or customer information, materials, or data relating to the Company’s present or planned business that has not been released to the public with the Company’s authorization, including, but not limited to, confidential information, materials, or proprietary data belonging to the Company or relating to the Company’s affairs (collectively, “Confidential Information”) and (B) information and materials that concern the Company’s business that come into the Company’s possession by reason of employment with the Company (collectively, “Business Related Information”); (ii) all Confidential Information and Business Related Information are the property of the Company; (iii) the use, misappropriation, or disclosure of any Confidential Information or Business Related Information

 

 

would constitute a breach of trust and could cause serious and irreparable injury to the Company; and (iv) it is essential to the protection of the Company’s goodwill and maintenance of the Company’s competitive position that all Confidential Information and Business Related Information be kept confidential and that you do not disclose any Confidential Information or Business Related Information to others or use Confidential Information or Business Related Information to your own advantage or the advantage of others.

 

In recognition of the acknowledgment  above, you agree that until the Confidential Information and/or Business Related Information becomes publicly available (other than through a breach by you), you shall: (i) hold and safeguard all Confidential Information and Business Related Information in trust for the Company; (ii) not appropriate or disclose or make available to anyone for use outside of the Company’s organization at any time any Confidential Information and Business Related Information, whether or not developed by you; (iii) keep in strictest confidence any Confidential Information or Business Related Information; (iv) not disclose or divulge, or allow to be disclosed or divulged by any person within your control, to any person, firm, or corporation, or use directly or indirectly, for your own benefit or the benefit of others, any Confidential Information or Business Related Information; and (v) upon the termination of your employment, return all Confidential Information and Business Records and not make or retain any copies or exacts thereof.

 

If you accept our offer, your first day of employment as a Transition Employee will be February 22nd 2017, and your first day of employment as CFO will be March 2nd, 2017. This letter agreement constitutes the complete, final and exclusive embodiment of the entire agreement between you and Tesla with respect to the terms and conditions of your employment, and it supersedes any other agreements or promises made to you by anyone, whether oral or written. This Agreement cannot be changed, amended, or modified except in a written agreement signed by an officer of Tesla. This letter agreement shall be construed and interpreted in accordance with the laws of the State of California.

 

As required by immigration law, this offer of employment is conditioned upon satisfactory proof of your right to work in the United States.  

 

This offer of employment is contingent upon the successful completion of your reference and background checks.

 

If you choose to accept our offer under the terms described above, please indicate your acceptance, by signing below and returning it to me by February 21st, 2017 after which date this offer will expire. 

 

 

 

We look forward to your favorable reply and to a productive and enjoyable work relationship.

 

	
 
	
Very truly yours,

	
 
	
Tesla, Inc.

	
 
	

 

	
 
	
 
	
 
	
 
	
Elon Musk

	
 
	
 
	
 
	
 
	
Chairman of the Board and CEO

	
 
	
 
	
 
	
 
	
 

	
Accepted by:
	
 
	
/s/ Deepak Ahuja
	
 
	
Date: 
	
February 21, 2017

	
 
	
 
	
 
	
 
	
 
	
 

	
Start Date:
	
 
	
February 22nd 2017

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