Document:

aeti-ex101_19.htm

Exhibit 10.1

Execution Version

 

EXCHANGE AGREEMENT

This Exchange Agreement (this “Agreement”) is dated as of August 5, 2019 (the “Effective Date”), by and among Chart Energy & Chemicals, Inc., a Delaware corporation and subsidiary of Chart Industries, Inc. (“Chart E&C”), Stabilis Energy, Inc., a Florida corporation (“SEI”), Stabilis Energy, LLC, a Texas limited liability company and subsidiary of SEI (“Stabilis”), and Stabilis LNG Eagle Ford LLC, a Delaware limited liability company and subsidiary of Stabilis (“Stabilis LNG”).

RECITALS

WHEREAS, Chart E&C is the owner and holder of a Secured Term Note (the “Note”, with the capitalized terms used herein and not otherwise defined being as defined in the Note) dated September 30, 2013 in the original principal amount of $20,350,000 issued by Stabilis LNG payable to the order of Chart E&C, which Note was amended as provided in the Allonge to Secured Term Note dated November 18, 2016 and the Amended and Restated Allonge to Secured Term Note dated August 21, 2017 (the Note, together with said Allonge and Amended and Restated Allonge, the “Stabilis Note”);

WHEREAS, in order to secure the Stabilis Note, (i) Stabilis LNG executed in favor of Chart E&C that certain Security Agreement and the Deed of Trust and (ii) Stabilis FHR Oilfield LNG LLC executed in favor of Chart E&C that certain Pledge Agreement (collectively, the “Security Documents”);

WHEREAS, as of the Effective Date, the outstanding principal balance of the Stabilis Note is $9,077,176 (the “Indebtedness”) and the accrued but unpaid interest thereon is approximately $520,000;

WHEREAS, Stabilis and Stabilis LNG are wholly-owned subsidiaries of SEI (with SEI being referred to in this Agreement on occasion as the “Issuer” and, collectively with SEI, Stabilis and Stabilis LNG, the “Issuer Parties”); and

WHEREAS, the parties hereto desire to provide for the exchange and cancellation of some or all of the Indebtedness for unregistered shares of the Issuer’s common stock (“Common Stock”) pursuant to the terms and conditions set forth in this Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby agreed and acknowledged, the parties hereby agree as follows:

AGREEMENT

1.Exchange of Indebtedness for Common Stock.

1.1Initial Exchange. In consideration of and in reliance upon the representations, warranties, covenants, terms and conditions of this Agreement, at the closing of the initial exchange (the “Initial Closing”), Chart E&C agrees to exchange $7,000,000 in aggregate principal amount of the Indebtedness (the amount of which as calculated in this 

 

 

Section 1.1 is called the “Exchanged Indebtedness”) for shares of Common Stock, and, in exchange therefor, the Issuer shall (i) issue and deliver to Chart E&C the number of shares of Common Stock that is determined by dividing (A) the aggregate principal amount of the Exchanged Indebtedness by (B) the Relevant Share Price (as defined below) and (ii) pay to Chart E&C an amount in cash (the “Relevant Cash Amount”) equal to the accrued and unpaid interest on the Exchanged Indebtedness due through the Initial Closing Date, plus any cash amount to be paid in lieu of the issuance of fractional shares of Common Stock; provided that, if the determination made in clause (i) above for the exchange of all of the Exchanged Indebtedness for shares of Common Stock at the Relevant Share Price would result in Chart E&C holding in excess of 9.00% of all of the issued and outstanding Common Stock following the consummation of such exchange, then (x) the amount of Indebtedness to be exchanged at the Initial Closing shall be reduced by an amount necessary to provide that Chart E&C will hold no more than 9.00% of the issued and outstanding Common Stock following the consummation of such exchange and (y) any remaining Indebtedness (the “Remaining Indebtedness”) not exchanged at the Initial Closing will remain outstanding under the Stabilis Restated Note (as defined below) subject to Chart E&C’s right to request an additional exchange of such Remaining Indebtedness as set forth in Section 1.2 of this Agreement.  For purposes of any such additional exchange, the Remaining Indebtedness shall be reduced by any principal payments made under the Stabilis Restated Note. The shares of Common Stock issued to Chart E&C pursuant to this Agreement (including any shares issued at the Initial Closing or any Additional Closing) are referred to in this Agreement as the “Shares.”

1.2Additional Exchange. Subject to the provisions of this Section 1.2, if at any time after six (6) months after the Effective Date, the Issuer receives a written request from Chart E&C to exchange all or any portion of the Remaining Indebtedness for Shares (the “Additional Exchange”), at the closing of such exchange (the “Additional Closing”), Chart E&C shall exchange such selected amount of the Remaining Indebtedness for Shares of the Issuer, and, in exchange therefor, the Issuer shall (i) issue and deliver to Chart E&C the number of Shares that is determined by dividing (A) the aggregate principal amount of Remaining Indebtedness exchanged by (B) the Relevant Share Price and (ii) pay to Chart E&C an amount in cash (the “Additional Relevant Cash Amount”) equal to accrued and unpaid interest on any such Remaining Indebtedness due through the Additional Closing Date, plus any cash amount paid in lieu of fractional Shares; provided that, the Issuer shall not be required to conduct more than one Additional Exchange.

	
 
	
1.3
	
Closing; Delivery. 

(a)Each exchange of Indebtedness for Shares shall take place remotely via the exchange of documents and signatures, at 10:00 a.m., Atlanta, Georgia time, on the Initial Closing Date (as defined below) or the Additional Closing Date (as defined below), as the case may be, or at such other time and place as the Issuer and Chart E&C mutually agree upon in writing (which time and place are designated as the “Closing”). In the event that there is an Additional Closing, the term “Closing” shall apply to each closing unless otherwise specified.

(b)At each Closing, the Issuer shall:

(i)  deliver to Chart E&C one or more stock certificates or evidence of a book-entry record, each including the restrictive legends referenced in Section 6.1 of this 

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Agreement and evidencing the number of Shares issuable to Chart E&C upon such exchange as determined in accordance with the terms of this Agreement, registered in the name of Chart E&C;

(ii)  pay by wire transfer to a bank account designated by Chart E&C, the Relevant Cash Amount or the Additional Relevant Cash Amount, as the case may be;

(iii)  deliver the documents and certificates required under Section 4 and Section 6.3; and

(iv)  if the Stabilis Note is not paid in full, deliver to Chart E&C the Stabilis Restated Note.

(c)At each Closing, Chart E&C shall deliver to the Issuer the documents and certificates contemplated by Section 5 and Section 6.3.

1.4Certain Definitions. In addition to the terms defined above and elsewhere in this Agreement, the following terms shall be construed to have the meanings set forth or referenced below.

(a)“Additional Closing Date” means the date that is ten (10) Trading Days after the date on which Chart E&C requests an Additional Exchange pursuant to Section 1.2 of this Agreement.

(b)“Board” means the Board of Directors of the Issuer.

(c)“Initial Closing Date” means the date set forth on Schedule 1.4(c) attached hereto.

(d)“Registrable Securities” means the Shares issued to Chart E&C pursuant to this Agreement and any other securities issued or issuable with respect to such Shares by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or reorganization; provided, that any Registrable Security will cease to be a Registrable Security when (a) a registration statement covering such Registrable Security has become effective, or has been declared effective by the SEC, and it has been disposed of pursuant to such effective registration statement, (b) it is sold under circumstances in which all of the applicable conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met, or (c) it is held by a Person that is not Chart E&C.

(e)“Relevant Share Price” means the price that is 90% of the average of the dollar volume-weighted average prices per share of the Common Stock on the Trading Market as calculated by Bloomberg for each of the five consecutive Trading Days ending on and including the third Trading Day immediately preceding the Initial Closing Date or the Additional Closing Date, as the case may be. 

(f)“Suspension Event” means any of (a) the Issuer or any of its subsidiaries are engaged in confidential negotiations or other confidential business activities, disclosure of which would be required if such registration statement were used (but would not be required if such registration statement were not used) and the Board determines in good faith that such 

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disclosure would be materially detrimental to the Issuer, (b) the Board determines that a postponement is in the best interest of the Issuer and its stockholders generally due to a pending transaction involving the Issuer (including a pending securities offering by the Issuer), or (c) the Issuer has experienced some other material non-public event or is in possession of material non-public information concerning the Issuer, and the Board determines in good faith that such disclosure would be materially detrimental to the Issuer.

(g)“Trading Day” means a day on which the Common Stock is quoted for trading on a Trading Market.

(h)“Trading Market” means the Nasdaq Stock Market, or any other recognized exchange or automated quotation system, including over-the-counter bulletin boards or exchanges, on which the Common Stock is quoted for trading on the applicable date.

 

2.Representations and Warranties of the Issuer Parties. The Issuer Parties, jointly and severally, hereby make the following representations and warranties to Chart E&C:

2.1Organization; Good Standing. Each Issuer Party has been duly incorporated or organized and is validly existing as a corporation or a limited liability company, as the case may be, in good standing in its respective jurisdiction of incorporation or organization, and has the corporate authority and power to (i) enter into this Agreement and effect the transactions contemplated hereby and (ii) own its properties and to carry on its business as now being conducted.

2.2Authorization; Enforcement. This Agreement has been duly authorized, executed and delivered by each Issuer Party, and constitutes the legal, valid and binding obligations of each Issuer Party, enforceable against each Issuer Party in accordance with its terms, except (i) as such enforceability may be limited by (A) general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and (B) laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (ii) insofar as indemnification and contribution provisions may be limited by applicable law.

2.3No Conflicts. The execution and delivery by each Issuer Party of, and the performance by each Issuer Party of its obligations under, this Agreement will not contravene any (i) provision of applicable law, (ii) the charter, bylaws or other organizational documents of each Issuer Party, (iii) any agreement or other instrument binding upon an Issuer Party or any of its respective subsidiaries, (iv) any judgment, order or decree of any governmental body, agency or court having jurisdiction over an Issuer Party or any of its respective subsidiaries or (v) applicable rules and regulations of the Trading Market, and no consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by each Issuer Party of its obligations under this Agreement other than those consents, approvals, authorizations, orders or qualifications which have been or will be obtained.

2.4The Shares. The issuance of the Shares by the Issuer pursuant to this Agreement has been duly authorized and the Shares, upon issuance in accordance with the terms 

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of this Agreement, will be validly issued, fully paid and non-assessable.  The execution of this Agreement and the issuance of the Shares will not give rise to any preemptive rights, rights of first refusal or other similar rights on behalf of any person.  

2.5SEC Reports; Financial Statements. Except as set forth on Schedule 2.5 attached hereto, SEI has filed all reports required to be filed by it under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) thereof, for the 12 months preceding the date hereof on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension and has filed all reports required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof. Such reports required to be filed by SEI under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, together with any materials filed or furnished by SEI under the Exchange Act, whether or not any such reports were required, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports” and, together with this Agreement, the “Disclosure Materials”. The SEC Reports filed by SEI with the Securities and Exchange Commission (“SEC”), from the commencement of the fiscal year covered by SEI’s most recent Annual Report on Form 10-K to the Effective Date (the “SEC Documents”), as of their respective dates, complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder applicable to such SEC Documents, and none of such SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the audited financial statements and unaudited interim financial statements of SEI and Stabilis included in the SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim financial statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of SEI or Stabilis, as the case may be, as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited interim financial statements, to normal year-end audit adjustments which will not be material, either individually or in the aggregate).

2.6Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the most recent balance sheet included (i) in SEI’s unaudited interim financial statements contained in SEI’s most recent Quarterly Report on Form 10-Q and (ii) in Stabilis’ unaudited interim financial statements contained in SEI’s most recent Definitive Proxy Statement on Schedule 14A filed with the SEC, except as disclosed in the SEC Documents filed subsequent to such Form 10-Q or such Schedule 14A, (x) there has been no material adverse change and no material adverse development in the business affairs, condition (financial or otherwise) or business prospects of SEI and Stabilis and their respective subsidiaries, all considered together as one enterprise and (y) neither SEI nor Stabilis, nor any of their respective subsidiaries, has (A) declared or paid any dividends other than regular quarterly dividends on such entity’s securities, (B) sold any assets outside of the ordinary course of business or (C) 

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made any material capital expenditures (either individually or in the aggregate). Neither SEI nor Stabilis, nor any of their respective subsidiaries, has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does SEI, Stabilis or any of their respective subsidiaries have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so.

2.7Private Placement. Assuming the accuracy of the representations and warranties of Chart E&C set forth in Section 3, no registration under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Shares by the Issuer to Chart E&C as contemplated hereby.

2.8Registration Rights. Except as set forth on Schedule 2.8 attached hereto, (i) no Issuer Party has granted or agreed to grant to any Person any rights (including “piggyback” registration rights) to have any securities of any Issuer Party registered with the SEC or any other governmental authority that have not expired or been satisfied or waived, and (ii) no Person has registration rights that would preempt or “cut-back” the registration rights granted to Chart E&C under this Agreement. For purposes of this Agreement, “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, a government or any department or agency thereof and any other legal entity.

2.9Manipulation of Price.  None of the Issuer Parties has, and to their knowledge no one acting on their behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the manipulation of the price of any security of the Issuer to facilitate the sale or resale of the Issuer’s Common Stock, (ii) sold, bid for, purchased or paid any compensation for soliciting purchases of the Issuer’s Common Stock, or (iii) paid or agreed to pay any person compensation for soliciting another to purchase any other securities of the Issuer.

3.Representations and Warranties of Chart E&C. Chart E&C hereby makes the following representations and warranties to each of the Issuer Parties:  

3.1Organization; Authority. This Agreement has been duly authorized, executed and delivered by or on behalf of Chart E&C, and constitutes the legal, valid and binding obligations of Chart E&C, enforceable against Chart E&C in accordance with its terms, except (i) as such enforceability may be limited by (A) general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and (B) laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (ii) insofar as indemnification and contribution provisions may be limited by applicable law.

3.2No Conflicts. The execution and delivery by Chart E&C of, and the performance by Chart E&C of its obligations under, this Agreement will not contravene any (i) provision of applicable law, (ii) the organizational documents of Chart E&C, (iii) any agreement or other instrument binding upon Chart E&C or its Affiliates, (iv) any judgment, order or decree of any governmental body, agency or court having jurisdiction over Chart E&C, and no consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by Chart E&C of its obligations under this Agreement.

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3.3No Public Sale or Distribution. Chart E&C is acquiring the Shares for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state securities laws, and Chart E&C does not have a present arrangement to effect any distribution of the Shares to or through any Person.

3.4Investor Status. Chart E&C is an “accredited investor” as defined in Rule 501(a) under the Securities Act. Chart E&C was not organized for the purpose of acquiring the Shares and is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

3.5No General Solicitation. Chart E&C is not acquiring the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media, broadcast over television or radio, disseminated over the Internet or presented at any seminar or any other general solicitation or general advertisement.

3.6Experience of Investor. Chart E&C, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment.

3.7Access to Information. Chart E&C acknowledges that it has reviewed the Disclosure Materials and all other materials Chart E&C deemed necessary for the purpose of making an investment decision with respect to the Shares, and has been afforded: (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Issuer concerning the Issuer’s business, management and financial affairs and terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Issuer and its subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Issuer possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Chart E&C has evaluated the risks of investing in the Shares, understands there are substantial risks of loss incidental to the investment and has determined that it is a suitable investment for Chart E&C.

3.8No Governmental Review. Chart E&C understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

3.9Restricted Securities. Chart E&C understands that the Shares are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Issuer in a transaction not involving a public offering and that under 

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such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances.

3.10Stabilis Note and Security Documents.  Chart E&C has good title to and is the sole legal and beneficial owner and holder of the Stabilis Note, free and clear of all liens, claims, encumbrances and other charges whatsoever, and the interests of Chart E&C in the Security Documents are not subject to any prior assignment.  As of the Effective Date, the Indebtedness is $9,077,716 and the accrued but unpaid interest thereon is approximately $520,000.

4.Conditions to Chart E&C’s Obligations at Closing. The obligations of Chart E&C to exchange Indebtedness for Shares at the Initial Closing or any Additional Closing are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived in writing by Chart E&C:

4.1Representations and Warranties. The representations and warranties of the Issuer Parties contained in Section 2 shall be true and correct in all material respects as of such Closing.

4.2Performance. The Issuer Parties shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Issuer Parties on or before such Closing in all material respects.

4.3Compliance Certificate. The President or similarly authorized officer of the Issuer shall deliver to Chart E&C at such Closing a certificate certifying that the conditions specified in Subsections 4.1 and 4.2 have been fulfilled.

4.4Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance of the Shares pursuant to this Agreement shall be obtained and effective as of such Closing.

4.5Confirmation of Exchanged Indebtedness. An authorized officer of the Issuer shall have executed a confirmation at such Closing (each, a  “Confirmation”) in writing of (i) the amount of the Exchanged Indebtedness and, if less than the Indebtedness, the amount of the Remaining Indebtedness, (ii) the Relevant Share Price to be used, (iii) the number of Shares to be issued to Chart E&C and (iv) the Relevant Cash Amount or Additional Relevant Cash Amount, as the case may be, to be paid to Chart E&C, at such Closing.

5.Conditions to the Issuer Parties’ Obligations at Closing. The obligations of the Issuer Parties to exchange Indebtedness for Shares at the Initial Closing or any Additional Closing are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived in writing by the Issuer:

5.1Representations and Warranties. The representations and warranties of Chart E&C contained in Section 3 shall be true and correct in all material respects as of such Closing.

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5.2Performance. Chart E&C shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by Chart E&C on or before such Closing in all material respects.

5.3Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance of the Shares pursuant to this Agreement shall be obtained and effective as of such Closing.

5.4Approval of Confirmation. An authorized representative of Chart E&C shall have approved and executed the Confirmation in respect of such Closing.

5.5Compliance Certificate. The President or similarly authorized officer of Chart E&C shall deliver to the Issuer at such Closing a certificate certifying that the conditions specified in Subsections 5.1 and 5.2 have been fulfilled.

 

6.Other Agreements of the Parties.

6.1Transfer Restrictions.

(a)Chart E&C acknowledges and understands that (i) the Shares may only be disposed of in compliance with state and federal securities laws and (ii) in connection with any transfer of Shares other than pursuant to an effective registration statement or Rule 144, to the Issuer or to an Affiliate of Chart E&C, the Issuer may require the transferor thereof to provide to the Issuer evidence, including a legal opinion, in form and substance of which shall be reasonably satisfactory to the Issuer, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of Chart E&C under this Agreement.  Any transfer or purported transfer of the Shares in violation of this Section 6.1 shall be void. For purposes of this Agreement, “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.

(b)Chart E&C agrees to the imprinting, so long as is required by this Section 6.1, of a legend on any of the Shares (and any certificates or instruments representing the Shares) in substantially the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR QUALIFIED UNDER ANY STATE SECURITIES LAWS.  SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION 

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REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW and IS MADE IN ACCORDANCE WITH THE terms of Section 6.1(A) of the EXCHANGE Agreement pursuant to which the securities were originally ISSUED.

6.2Furnishing of Information. Until the date that Chart E&C or any Affiliate of Chart E&C owning Shares may sell all of them without restriction under Rule 144 of the Securities Act (or any successor provision), the Issuer covenants to use its reasonable best efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Issuer after the date hereof pursuant to the Exchange Act.

6.3Treatment of Indebtedness and Remaining Indebtedness. The parties acknowledge and agree as follows:

(a)At the Initial Closing, in respect of the Remaining Indebtedness, (i) the Issuer shall execute and deliver to Chart E&C an Amended and Restated Note (the “Stabilis Restated Note”) substantially in the form of Exhibit A attached hereto and made a part hereof and (ii) Chart E&C will deliver to the Issuer the releases and/or termination statements substantially in the forms attached hereto as Exhibit B, which shall effect the release of all collateral other than the assets set forth in Exhibit C attached hereto; and

(b)Should the Indebtedness be paid in full at an Additional Closing, then at such Closing, Chart E&C will deliver to the Issuer the Stabilis Restated Note marked “CANCELLED” together with such other instruments as the Issuer may reasonably request to evidence the release or termination of all liens and/or security interests held by Chart E&C to secure the Stabilis Restated Note.

6.4Securities Laws Disclosure; Publicity. In accordance with the requirements of the Exchange Act, the Issuer shall cause a Current Report on Form 8-K relating to this Agreement and the transactions contemplated hereby to be transmitted to the SEC for filing, which Form 8-K shall be reasonably acceptable to Chart E&C, disclose the material terms of the transactions contemplated hereby, and attach a form of this Agreement thereto. The Issuer and Chart E&C shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and Chart E&C shall not issue any such press release or otherwise make any such public statement without the prior consent of the Issuer, which consent shall not unreasonably be withheld, except if such disclosure is required by law, in which case Chart E&C shall promptly provide the Issuer with prior notice of such initial public statement or communication. Notwithstanding the foregoing, the Issuer shall not publicly disclose the name of Chart E&C or any Affiliate of Chart E&C, or include the name of Chart E&C or any Affiliate of Chart E&C in any filing with the SEC or any regulatory agency or Trading Market, without the prior written consent of Chart E&C, except (i) as required by federal securities law in connection with the Form 8-K relating to this Agreement and a registration statement that includes the resale of Registrable Securities under Section 7 below and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Issuer shall provide Chart E&C with prior notice of such disclosure permitted under subclause (i) or (ii).

	
7.
	
Registration Rights.

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7.1Initial Demand Registration. The Issuer (i) shall prepare and file, no later than ninety (90) days following the Initial Closing Date, a Registration Statement (as defined below) on Form S-1 (or any successor form or other appropriate form under the Securities Act) to permit pursuant to Rule 415 under the Securities Act the public resale of all of the Registrable Securities then issued and outstanding in accordance with the terms of this Agreement and (ii) shall use commercially reasonable efforts to cause the Registration Statement to be declared effective under the Securities Act as promptly as practicable, but in any event no later than the earlier of (A) one hundred twenty (120) days (or one hundred fifty (150) days if the SEC notifies the Issuer that it will “Review” the Registration Statement) following the Initial Closing Date and (B) ten (10) business days following the date the SEC notifies (orally or in writing, whichever is earlier) the Issuer that it will not “Review” the Registration Statement or that the Registration Statement will not be subject to further review. Subject only to Section 7.2, the Issuer shall only be required to file one Registration Statement with respect to the Registrable Securities.

7.2Additional Demand. If at any time when (i) the Issuer is eligible to use a Form S-3 registration statement and (ii) Chart E&C or any Affiliate of Chart E&C is deemed to be an Affiliate of the Issuer for purposes of Rule 415 under the Securities Act, following receipt of a request from Chart E&C that the Issuer file a Form S-3 registration statement with respect to Registrable Securities, the Issuer shall use commercially reasonable efforts either (i) to convert such Registration Statement from a Form S-1 to a Form S-3 or (ii) to prepare and file, within forty-five (45) days after receipt of such request from Chat E&C, a Form S-3 registration statement to register under the Securities Act the resale of Registrable Securities requested to be included in such registration by Chart E&C; provided, however, the obligations of this Section 7.2 shall not apply with respect to Registrable Securities included in an effective registration statement; provided further Chart E&C shall only be entitled to deliver one request pursuant to this Section 7.2.

7.3Issuer Registration. 

(a)If the Issuer proposes to register (including, for this purpose, a registration effected by the Issuer for stockholders other than Chart E&C) any of its Common Stock under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Issuer shall, at such time, promptly give Chart E&C notice of such registration; provided, however, the obligations of this Section 7.3(a) shall not apply with respect to Registrable Securities included in an effective registration statement. Upon the request of Chart E&C given within two (2) days after such notice is given by the Issuer, the Issuer shall, subject to the provisions of Section 7.3(b), cause to be registered all of the Registrable Securities not so already covered by an effective registration statement that Chart E&C has requested to be included in such registration; provided, however, such amount of Registrable Securities shall exceed at least $5,000,000.  The Issuer shall have the right to terminate or withdraw any registration initiated by it under this Section 7.3(a) before the effective date of such registration, whether or not Chart E&C has elected to include Registrable Securities in such registration.

(b)In connection with any offering involving an underwriting of shares of the Issuer’s capital stock pursuant to Section 7.3(a), the Issuer shall not be required to include any of Chart E&C’s Registrable Securities in such underwriting unless Chart E&C accepts the terms of the underwriting as agreed upon between the Issuer and its underwriters, including, without 

11

 

 

limitation, any applicable lock-up period, and then only in such quantity as the managing underwriter(s) in their sole discretion determine can be sold in an orderly manner in such offering within a price range acceptable to the Issuer. If in connection with any offering involving an underwriting of shares of the Issuer’s capital stock pursuant to Section 7.3(a), and the managing underwriter(s) for such offering advise the Issuer that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold in an orderly manner in such offering within a price range acceptable to the Issuer, the Issuer shall only include in such offering the number which can be so sold in the following order of priority: (i) first, the securities the Issuer proposes to sell, and (ii) second, if there remains availability for additional shares of Common Stock to be included in such offering, pro rata among Chart E&C and any other holders of shares of Common Stock entitled to participate in such offering, if applicable, based on the relative number of shares of Common Stock then held by each such stockholder. 

(c)For purposes of this Section 7.3, “Excluded Registration” means (i) a registration relating to the sale of securities to employees of the Issuer or a subsidiary pursuant to a stock option, stock purchase, or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration statement on Form S-4; (iv) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (v) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

7.4Issuer Undertakings.  With respect to any registration statement filed pursuant to Sections 7.1, 7.2 or 7.3 of this Agreement to register the resale of Registrable Securities (each, a “Registration Statement”), the Issuer shall (a) use its commercially reasonable efforts to cause such Registration Statement to become effective as soon as reasonably practicable after such filing; (b) use its commercially reasonable efforts to cause such Registration Statement to remain effective at all times thereafter until the date when all of the Registrable Securities registered thereunder have been disposed of by Chart E&C; and (c) use its commercially reasonable efforts to prepare and file with the SEC such amendments and supplements to such Registration Statement (including documents filed pursuant to the Exchange Act, and incorporated by reference into such Registration Statement) and the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the period specified in this sentence above; provided that, before filing such Registration Statement or prospectus or any amendments or supplements thereto, the Issuer will furnish to Chart E&C copies of all such documents proposed to be filed reasonably in advance of such filing, which documents will be subject to review of Chart E&C.

7.5Registration Procedures. With respect to the registration of the resale of Registrable Securities under a Registration Statement filed pursuant to this Section 7, the Issuer shall:

(a)furnish to Chart E&C such number of copies of such Registration Statement, each amendment and supplement thereto, the prospectus included therein (including any preliminary prospectus) and such other documents as Chart E&C may reasonably request in order to facilitate the disposition of the Registrable Securities;

12

 

 

(b)use its commercially reasonable efforts to comply with all applicable securities laws in the U.S. and to register or qualify all Registrable Securities covered by such Registration Statement under such other securities or blue sky laws of such jurisdictions as Chart E&C reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable Chart E&C to consummate the disposition in such jurisdictions of the Registrable Securities to be sold by Chart E&C; provided that the Issuer will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction);

(c)notify Chart E&C, at any time when a prospectus relating to the resale of the Registrable Securities is required to be delivered under the Securities Act, upon discovery that, or upon the discovery of the happening of any event as a result of which, the prospectus included in such Registration Statement is not compliant with applicable securities laws or contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading in the light of the circumstances under which they were made, and the Issuer will promptly prepare and file with the SEC, and furnish to Chart E&C a reasonable number of copies of, a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will be compliant with applicable securities laws or will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in the light of the circumstances under which they were made, as applicable;

(d)use commercially reasonable efforts to cause all Registrable Securities to be sold in such offering to be listed on each Trading Market on which the Common Stock is then listed;

(e)otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC; and

(f)in the event of the issuance of any stop order suspending the effectiveness of the Registration Statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any securities included therein for sale in any jurisdiction, use commercially reasonable efforts to obtain the prompt withdrawal of such order.

7.6Information Supplied. It shall be a condition precedent to the obligations of the Issuer to take any action to register the resale of the Registrable Securities that Chart E&C shall furnish the Issuer with such information regarding Chart E&C that is pertinent to the disclosure requirements relating to the registration and the distribution of the Registrable Securities as the Issuer may from time to time reasonably request. Chart E&C agrees to promptly furnish to the Issuer all information required to be disclosed in order to make the information previously furnished to the Issuer by Chart E&C not misleading.

7.7Registration Expenses.  

(a)Except as expressly provided in this Section 7.7, the Issuer shall pay all Registration Expenses relating to any Registration Statement. “Registration Expenses” shall mean any and all fees and expenses incident to the Issuer’s performance of or compliance with 

13

 

 

this Section 7, including (i) SEC, Trading Market or Financial Industry Regulatory Authority, Inc. registration and filing fees and all related listing fees, (ii) fees and expenses of compliance with state securities or “blue sky” laws and in connection with the preparation of a “blue sky” survey, including reasonable fees and expenses of blue sky counsel, (iii) printing expenses, (iv) messenger and delivery expenses, (v) fees and disbursements of counsel for the Issuer, and (vi) fees and disbursements of all independent public accountants and fees and expenses of other Persons, including special experts, retained by the Issuer.

(b)Notwithstanding the foregoing, the provisions of this Section 7.7 shall be deemed amended to the extent necessary to cause these expense provisions to comply with “blue sky” laws of each state in which the offering is made.

	
 
	
7.8
	
Restrictions on Registration and Disposition. 

(a)Notwithstanding any other provision of this Agreement, the Issuer shall not be required to file a registration statement (or any amendment thereto) or effect any offering for so long as, (i) any event of the kind described in Section 7.5(c) or (ii) a Suspension Event, is occurring.  The Issuer shall not be entitled to exercise its right of suspension or postponement, as the case may be, pursuant to this Section 7.8(a) for more than an aggregate of 180 days in any 12-month period.

(b)Chart E&C agrees that, upon receipt of any notice from the Issuer of the happening of (i) any event of the kind described in Section 7.5(c) or (ii) a Suspension Event, Chart E&C will forthwith discontinue disposition of Registrable Securities pursuant to the applicable Registration Statement until Chart E&C’s receipt of the copies of the supplemental or amended prospectus contemplated by Section 7.5(c) or written notice from the Issuer that such Registration Statement is effective again and no amendment or supplement is needed.

7.9Indemnification.

(a)  To the fullest extent permitted by law, the Issuer will indemnify and hold harmless Chart E&C and its directors and officers and each other Person who controls or is controlled by Chart E&C and its Affiliates and their respective directors, officers, members, managers and general and limited partners (collectively, the “Chart Indemnified Parties”) against any losses, claims, damages and liabilities, joint or several, to which any Chart Indemnified Party may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities, joint or several, actions or proceedings (whether commenced or threatened in writing in respect thereof) (“Claims”) arise out of or are based upon: (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, or any prospectus or preliminary prospectus or any amendment thereof or supplement thereto (including all documents incorporated by reference therein) or any omission or alleged omission of a material fact required to be stated therein or necessary to made the statements therein not misleading in light of the circumstances under which they were made; or (ii) any untrue or alleged untrue statement of a material fact contained in any free writing prospectus prepared by the Issuer or authorized by it in writing for use by Chart E&C or any amendment thereof or supplement thereto (including all documents incorporated by reference therein) or any omission or alleged omission of a material fact required to be stated therein or necessary to made the statements therein not misleading in light of the circumstances under which they were made; provided, that 

14

 

 

the Issuer shall not be liable in any such case to the extent that any such Claim or expense arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made in conformity with written information prepared and furnished to the Issuer by Chart E&C expressly for use therein or by Chart E&C’s failure to deliver a copy of the prospectus or any amendments or supplements thereto; and provided, further, that the indemnity agreement contained in this Section 7.9(a) shall not apply to amounts paid in settlement of any such Claim if such settlement is effected without the consent of the Issuer, which consent shall not be unreasonably withheld or delayed; and provided, further, that the Issuer will not be liable to any Chart Indemnified Party pursuant to this Section 7.9 to the extent that any Claim for which such Chart Indemnified Party is seeking indemnification relates to a sale of Registrable Securities in violation of Section 7.8.

(b)To the fullest extent permitted by law, Chart E&C will indemnify and hold harmless the Issuer and its directors and officers and each other Person who controls or is controlled by the Issuer and its Affiliates and their respective directors, officers, members, managers and general and limited partners against all Claims and expenses arising out of or based upon: (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto (including all documents incorporated by reference therein) or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were  made; or (ii) any untrue or alleged untrue statement of a material fact contained in any free writing prospectus prepared by the Issuer or authorized by it in writing for use by Chart E&C or any amendment thereof or supplement thereto (including all documents incorporated by reference therein) or any omission or alleged omission of a material fact required to be stated therein or necessary to made the statements therein not misleading in light of the circumstances under which they were made; provided, that Chart E&C shall only be liable in any such case only to the extent that any such Claim or expense arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission is made in conformity with written information prepared and furnished to the Issuer by Chart E&C or Chart E&C’s agent expressly for use therein or by Chart E&C’s failure to deliver a copy of the prospectus or any amendments or supplements thereto; provided, that the indemnity agreement contained in this Section 7.9(b) shall not apply to amounts paid in settlement of any such Claim if such settlement is effected without the consent of Chart E&C, which consent shall not be unreasonably withheld or delayed; and provided, further, that the liability of Chart E&C hereunder will be limited to the amount of net proceeds received by Chart E&C from the sale of Registrable Securities pursuant to such Registration Statement.

(c)Any Person entitled to indemnification hereunder will (i) give prompt written notice to the Issuer of any Claim with respect to which it seeks indemnification and (ii) unless in such indemnified party’s reasonable judgment, based upon advice of counsel, a conflict of interest between such indemnified party and the indemnifying party may exist with respect to such Claim, permit the indemnifying party to assume the defense and settlement of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder unless the failure to give such notice is materially prejudicial to an indemnifying party's ability to defend such action. If such defense is assumed, the indemnified party will not be subject to any liability for any settlement made by the 

15

 

 

indemnifying party without its consent (but such consent will not be unreasonably withheld).  Anything to the contrary appearing in this Agreement notwithstanding, the indemnifying party will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified hereunder with respect to such Claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim.  If the indemnifying party assumes the defense, the indemnified party may engage its own counsel at its own sole cost and expense.  All fees and expenses of counsel to any indemnified party required to be paid by the indemnifying party shall be paid as incurred.

(d)The indemnification provided for under this Agreement will remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party and will survive the transfer of Registrable Securities by Chart E&C.  If the indemnification provided for herein is unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party or parties, on the other hand, in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations; provided, that in no event shall any contribution by Chart E&C exceed the amount of the net proceeds received by Chart E&C from the sale of Registrable Securities pursuant to such Registration Statement.

	
8.
	
Miscellaneous.

	

	
8.1Termination. This Agreement may be terminated by any party hereto, by written notice to the other parties, if the Initial Closing has not been consummated on or prior to December 31, 2019; provided, however, that the right to terminate this Agreement pursuant to this Section 8.1 shall not be available to any party if the failure of such party to perform any of its obligations under this Agreement has been a principal cause of, or resulted in, the failure of the Initial Closing to be consummated on or before such date. No termination pursuant to this Section 8.1 will affect the right of any party to sue for any breach by the other party (or parties).

8.2Fees and Expenses. Except as expressly set forth in this Agreement to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Issuer shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the issuance of the Shares.

8.3 Entire Agreement. This Agreement, together with the Stabilis Note and the exhibits and schedules hereto and thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

8.4 Notices. Any and all notices, requests, consents, or other communications 

16

 

 

or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered by hand or via email or facsimile prior to 5:30 p.m. (Eastern time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered by hand or via email or facsimile on a day that is not a Trading Day or later than 5:30 p.m. (Eastern time) on any Trading Day, (c) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given, if addressed as follows, or to such other address or addresses as may have been furnished in writing by a party to another party pursuant to this paragraph:

	
If to any Issuer Party:
	
with a copy to:

	
Stabilis Energy, Inc.
	
 Thompson & Knight LLP

	
10375 Richmond Ave., Ste 700
	
811 Main Street, Suite 2500

	
Houston, Texas 77042
	
Houston, Texas 77002

	
Attention: James C. Reddinger, CEO
	
Attention:  Jerry L. Metcalf

	
Email: jim.reddinger@stabilisenergy.com
	
Facsimile No.: (832) 746-8050

	

	
Email: jerry.metcalf@tklaw.com

 

	
If to Chart E&C:
	
with a copy to:

	
Chart Energy & Chemicals, Inc.
	
Calfee, Halter & Griswold LLP

	
8665 New Trails Dr., #100
	
1405 East 6th Street

	
Spring, TX 77381
	
Cleveland, OH 44114

	
Attention: Herb Hotchkiss
	
Attention:  Arthur C. Hall III

	
Email:
	
Facsimile No.: (216) 241-0816

Herbert.Hotchkiss@chartindustries.comEmail:ahall@calfee.com

8.5 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by each of the parties hereto or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

8.6 Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

8.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. Chart E&C may assign any or all of its rights under this Agreement to any Person to whom Chart E&C assigns or 

17

 

 

transfers any Shares, provided such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions hereof that apply to Chart E&C.

8.8No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 7.9.

8.9Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in Wilmington, Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the Wilmington, Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. If either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

8.10Survival. The representations, warranties, covenants and other agreements contained herein shall survive each Closing and the delivery of the Shares as applicable for the applicable statute of limitations.

8.11Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or email attachment, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or email-attached signature page 

18

 

 

were an original thereof.

8.12Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

8.13Replacement of Share Certificates. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Issuer shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Issuer of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that fact and an agreement to indemnify and hold harmless the Issuer for any losses in connection therewith. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares.

8.14Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of parties will be entitled to seek specific performance under this Agreement. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

*   *   *   *   *

19

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

STABILIS ENERGY, INC.

 

 

By: ____________________________________

Name:  James Reddinger

Title:    Chief Executive Officer

 

 

STABILIS ENERGY, LLC

 

 

By: ____________________________________

Name:  James Reddinger

Title:    Authorized Signatory

 

 

 

STABILIS LNG EAGLE FORD LLC

 

 

By: ____________________________________

Name:  James Reddinger

Title:    Authorized Signatory

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

CHART ENERGY & CHEMICALS, INC.

 

 

By: ____________________________________

Name:

Title:Exhibit

Exhibit 10.1

AMENDED AND RESTATED 
ADVISORY AGREEMENT (2019) 
among 
INDUSTRIAL PROPERTY TRUST INC., 
INDUSTRIAL PROPERTY OPERATING PARTNERSHIP LP 
and 
INDUSTRIAL PROPERTY ADVISORS LLC 

1

TABLE OF CONTENTS	
					
	1.
	 
	DEFINITIONS
	 
	3

	2.
	 
	APPOINTMENT
	 
	8

	3.
	 
	DUTIES OF THE ADVISOR
	 
	9

	4.
	 
	AUTHORITY OF ADVISOR
	 
	11

	5.
	 
	BANK ACCOUNTS
	 
	11

	6.
	 
	RECORDS; ACCESS
	 
	11

	7.
	 
	LIMITATIONS ON ACTIVITIES
	 
	11

	8.
	 
	RELATIONSHIP WITH DIRECTORS
	 
	12

	9.
	 
	FEES
	 
	12

	10.
	 
	EXPENSES
	 
	13

	11.
	 
	OTHER SERVICES
	 
	14

	12.
	 
	REIMBURSEMENT TO THE ADVISOR
	 
	15

	13.
	 
	OTHER ACTIVITIES OF THE ADVISOR
	 
	15

	14.
	 
	TERM; TERMINATION OF AGREEMENT
	 
	15

	15.
	 
	TERMINATION BY THE PARTIES
	 
	16

	16.
	 
	ASSIGNMENT TO AN AFFILIATE
	 
	16

	17.
	 
	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION
	 
	16

	18.
	 
	INDEMNIFICATION BY THE CORPORATION AND THE OPERATING PARTNERSHIP
	 
	16

	19.
	 
	INDEMNIFICATION BY ADVISOR
	 
	16

	20.
	 
	NOTICES
	 
	17

	21.
	 
	THIRD PARTY BENEFICIARY
	 
	17

	22.
	 
	MODIFICATION
	 
	17

	23.
	 
	SEVERABILITY
	 
	17

	24.
	 
	CONSTRUCTION
	 
	17

	25.
	 
	ENTIRE AGREEMENT
	 
	17

	26.
	 
	INDULGENCES, NOT WAIVERS
	 
	17

	27.
	 
	GENDER
	 
	18

	28.
	 
	TITLES NOT TO AFFECT INTERPRETATION
	 
	18

	29.
	 
	EXECUTION IN COUNTERPARTS
	 
	18

	30.
	 
	INITIAL INVESTMENT
	 
	18

2

THIS AMENDED AND RESTATED ADVISORY AGREEMENT (2019), dated as of June 12, 2019 is among Industrial Property Trust Inc., a Maryland corporation (the “Corporation”), Industrial Property Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”), and Industrial Property Advisors LLC, a Delaware limited liability company. 
W I T N E S S E T H 
WHEREAS, the Corporation intends to qualify as a REIT (as defined below), and to invest its funds in investments permitted by the terms of Sections 856 through 860 of the Code (as defined below); 
WHEREAS, the Corporation is the general partner of the Operating Partnership and intends to conduct its business and make investments in Assets primarily through the Operating Partnership;
 WHEREAS, the Corporation and the Operating Partnership desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities of the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the Board of Directors of the Corporation, all as provided herein; 
WHEREAS, the Corporation, the Operating Partnership and the Advisor are parties to that certain Amended and Restated Advisory Agreement (2018) dated August 12, 2018, which is amended and restated in its entirety hereby.
WHEREAS, the Advisor is willing to undertake to render such services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows: 
1. DEFINITIONS. As used in this Amended and Restated Advisory Agreement (2019) (the “Agreement”), the following terms have the definitions hereinafter indicated: 
Acquisition Expenses. Any and all expenses, exclusive of Acquisition Fees, incurred by the Corporation, the Operating Partnership, the Advisor, or any of their Affiliates in connection with the selection, acquisition, development or origination of any Asset, whether or not acquired, including, without limitation, legal fees and expenses, travel and communications expenses, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance, and the costs of performing due diligence. 
Acquisition Fees. Any and all fees and commissions, exclusive of Acquisition Expenses, paid by any Person to any other Person (including any fees or commissions paid by or to any Affiliate of the Corporation, the Operating Partnership or the Advisor) in connection with (i) the acquisition, development or construction of a Property, (ii) the acquisition of interests in a real estate related entity or (iii) making or investing in Mortgages or the origination or acquisition of other debt or other investments, including real estate commissions, selection fees, Development Fees, Construction Fees, if any, nonrecurring management fees, loan fees, points or any other fees of a similar nature. Excluded shall be development fees and construction fees paid to any Person not affiliated with the Sponsor in connection with the actual development and construction of a project. 
Advisor. Industrial Property Advisors LLC, a Delaware limited liability company, any successor advisor to the Corporation, the Operating Partnership or any person or entity to which Industrial Property Advisors LLC or any successor advisor subcontracts substantially all of its functions. Notwithstanding the forgoing, a Person hired or retained by Industrial Property Advisors LLC to perform property and securities management and related services for the Corporation or the Operating Partnership that is not hired or retained to perform substantially all of the functions of Industrial Property Advisors LLC with respect to the Corporation or the Operating Partnership as a whole shall not be deemed to be an Advisor. 
Affiliate or Affiliated. With respect to any Person, (i) any Person directly or indirectly owning, controlling or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such other Person; (ii) any Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, 

3

controlled or held, with the power to vote, by such other Person; (iii) any Person directly or indirectly controlling, controlled by or under common control with such other Person; (iv) any executive officer, director, trustee or general partner of such other Person; and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner. 
Asset. Any Property, Mortgage, other debt or other investment (other than investments in bank accounts, money market funds or other current assets) owned by the Corporation, directly or indirectly through one or more of its Affiliates. 
Asset Management Fee. A fee paid to the Advisor as compensation for services rendered in connection with the management and Disposition of the Corporation’s Assets. 
Average Invested Assets. For a specified period, the average of the aggregate book value of the Assets invested, directly or indirectly, in equity interests in and loans secured by or related to real estate (including, without limitation, equity interests in REITs, mortgage pools, commercial mortgage-backed securities, mezzanine loans and residential mortgage-backed securities), before deducting depreciation, bad debts or other non-cash reserves, computed by taking the average of such values at the end of each month during such period. 
Board of Directors or Board. The persons holding such office, as of any particular time, under the Charter of the Corporation, whether they be the Directors named therein or additional or successor Directors. 
Bylaws. The bylaws of the Corporation, as the same are in effect from time to time. 
Cause. With respect to the termination of this Agreement, fraud, criminal conduct or willful misconduct by the Advisor, or a material breach of this Agreement by the Advisor, which has not been cured within 30 days of such breach. 
Charter. The amended and restated articles of incorporation of the Corporation, as amended from time to time. 
Code. Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 
Construction Fees. The term “Construction Fees” shall have the meaning given such term in the Charter.  
Contract Purchase Price. The term “Contract Purchase Price” shall mean (i) the amount actually paid or allocated in respect of the acquisition of a Property, (ii) the Corporation’s proportionate share of the amount actually paid or allocated in respect of the Real Property owned by any real estate related entity in which the Corporation acquires a majority economic interest or which the Corporation consolidates for financial reporting purposes in accordance with generally accepted accounting principals, (iii) the amount actually paid or allocated in respect of an investment in any other real estate related entity or (iv) the amount actually paid or allocated in respect of the origination or acquisition of Mortgages, other debt investments or other investments; in each case including any third party expenses, debt, whether borrowed or assumed, and exclusive of Acquisition Fees and Acquisition Expenses. 
Contract Sales Price. The total consideration paid in connection with a Disposition, other than a Listing, including without limitation, any debt or other liabilities assumed or taken subject to by an acquirer. Without limiting the generality of the foregoing, in any transaction involving the acquisition of the equity of the Corporation, the Operating Partnership or other selling entity, the Contract Sales Price will be deemed to include (whether or not expressed in the net per share price), the value assigned by the applicable buyer to all assets (or the value of such assets implied by such buyer’s offer) before subtracting liabilities to derive the net per share purchase price.
Corporation. Corporation shall have the meaning set forth in the preamble of this Agreement. 
Dealer Manager Black Creek Capital Management, LLC, an Affiliate of the Advisor, or such other Person or entity selected by the Board of Directors to act as the dealer manager for the Offering. Black Creek Capital Management, LLC is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). 

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Dealer Manager Fee. The dealer manager fee payable to the Dealer Manager for serving as the dealer manager for the Offering and reallowable to Soliciting Dealers with respect to Shares sold by them, as described in the Corporation’s Prospectus. 
Director. A member of the Board of Directors of the Corporation. 
Disposition. The term “Disposition” shall include (i) a sale of one or more Assets, (ii) a sale of one or more Assets effectuated either directly or indirectly through the sale of any entity owning such Assets, including, without limitation, the Corporation or the Operating Partnership, (iii) a sale, merger or other transaction in which the Stockholders either receive, or have the option to receive, cash, securities redeemable for cash, and/or securities of a publicly traded company, or (iv) a Listing.
Distribution Fee. The distribution fee payable to the Dealer Manager as additional compensation for serving as the dealer manager for the Offering and reallowable to Soliciting Dealers with respect to Shares sold by them, as described in the Corporation’s Prospectus. 
 
Distributions. Any distributions of money or other property by the Corporation to owners of Shares, including distributions that may constitute a return of capital for federal income tax purposes. 
Equity Shares. Transferable shares of beneficial interest of the Corporation of any class or series, including common shares or preferred shares. 
FINRA. Financial Industry Regulatory Authority, Inc. 
GAAP. Generally accepted accounting principles as in effect in the United States of America from time to time. 
General Partner. General Partner shall have the meaning set forth in the recitals at the beginning of this Agreement.
Good Reason. With respect to the termination of this Agreement, (i) any failure to obtain a satisfactory agreement from any successor to the Corporation and/or the Operating Partnership to assume and agree to perform the Corporation’s and/or the Operating Partnership’s obligations under this Agreement; or (ii) any uncured material breach of this Agreement of any nature whatsoever by the Corporation and/or the Operating Partnership that remains uncured for 30 days after written notice of such material breach has been provided to the Corporation and the Operating Partnership by the Advisor. 
Gross Market Capitalization. The sum of (i) the total outstanding principal balance of all indebtedness of the Corporation, the Operating Partnership, and its subsidiaries, and (ii) the Gross Share Value.
Gross Proceeds. The aggregate purchase price of all Shares sold for the account of the Corporation through all Offerings, without deduction for Sales Commissions, Dealer Manager Fees, Distribution Fees, volume discounts, any marketing support and due diligence expense reimbursement or Organization and Offering Expenses. For the purpose of computing Gross Proceeds, the purchase price of any Share for which reduced Sales Commissions or Dealer Manager Fees are paid to the Dealer Manager or a Soliciting Dealer (where net proceeds to the Corporation are not reduced) shall be deemed to be the full amount of the offering price per Share pursuant to the Prospectus for such Offering without reduction. 
Gross Share Value. The product of (i) the total number of shares of the Corporation outstanding plus all OP Units outstanding that are held by parties other than the Corporation, and (ii) the Value Per Share.
Independent Director. Independent Director shall have the meaning set forth in the Charter. 
Independent Expert. A person or entity with no material current or prior business or personal relationship with the Advisor or the Directors and who is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the Corporation. 

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Joint Ventures. The joint venture, co-investment, co-ownership or partnership arrangements in which the Corporation or any of its subsidiaries is a co-venturer, co-owner or general partner which are established to acquire or hold Assets. 
Liquidity Event. The term “Liquidity Event” shall include, but shall not be limited to, (i) a Listing, (ii) a sale, merger or other transaction in which the Stockholders either receive, or have the option to receive, cash, securities redeemable for cash, and/or securities of a publicly traded company, and (iii) the sale of all or substantially all of the Corporation’s Assets where Stockholders either receive, or have the option to receive, cash or other consideration. 
Listing. The listing of the Shares on a national securities exchange or the receipt by the Corporation’s stockholders of securities that are listed on a national securities exchange in exchange for the Corporation’s common stock. Upon such Listing, the Shares shall be deemed Listed. 
Mortgages. In connection with mortgage financing provided, invested in, participated in or purchased by the Corporation, all of the notes, deeds of trust, security interests or other evidences of indebtedness or obligations, which are secured or collateralized by Real Property owned by the borrowers under such notes, deeds of trust, security interests or other evidences of indebtedness or obligations. 
NASAA REIT Guidelines. The Statement of Policy Regarding Real Estate Investment Trusts as adopted by the members of the North American Securities Administrators Association, Inc. on May 7, 2007. 
Net Income. For any period, the Corporation’s total revenues applicable to such period, less the total expenses applicable to such period other than additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of the Corporation’s Assets. 
Offering. The public offering of Shares pursuant to a Prospectus. 
Operating Partnership. Operating Partnership shall have the meaning set forth in the preamble of this Agreement. 
 
Operating Partnership Agreement. The Operating Partnership Agreement between the Corporation and Industrial Property Advisors Group LLC. 
OP Unit. Units of limited partnership interest in the Operating Partnership. 
Organization and Offering Expenses. Any and all costs and expenses, other than Sales Commissions, Dealer Manager Fees, and Distribution Fees, incurred in connection with the formation of the Corporation and the qualification and registration of all its Offerings, and the marketing and distribution of Shares, including, without limitation, total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys) payable to the Dealer Manager and Soliciting Dealers, expenses for printing and amending registration statements or supplementing prospectuses, mailing and distributing costs, salaries of employees while engaged in sales activity, telephone and other telecommunications costs, all advertising and marketing expenses (including the costs related to investor and broker-dealer sales meetings), charges of transfer agents, registrars, trustees, escrow holders, depositories and experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of the Shares under federal and state laws, including accountants’ and attorneys’ fees. The cumulative Organization and Offering Expense reimbursements paid by the Corporation in connection with all Offerings will not exceed 2.0% of Gross Proceeds from the sale of Shares of all Offerings. 
Person. An individual, corporation, partnership, trust, joint venture, limited liability company or other entity. 
Property or Properties. All or a portion of the Real Property or Real Properties acquired by the Corporation, directly or indirectly through joint venture or co-ownership arrangements or other partnership or investment entities. 
Prospectus. Prospectus shall have the meaning set forth in Section 2(10) of the Securities Act of 1933, as amended (the “Securities Act”), including a preliminary Prospectus, an offering circular as described in Rule 256 of the General Rules and Regulations under the Securities Act or, in the case of an intrastate offering, any document by whatever name known, utilized for the purpose of offering and selling securities to the public. 

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Real Estate Asset Value. The amount actually paid or allocated to the purchase, development, construction or improvement of a Real Property, exclusive of Acquisition Fees and Acquisition Expenses. 
Real Property. Land, rights in land (including leasehold interests), and any buildings, structures, improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land. Properties sold by the Corporation or any Affiliate to investors in tenancy-in-common interests (or pursuant to a Delaware statutory trust), beneficial interests in Delaware statutory trusts, and or similar interests shall be deemed Real Property for the purposes of this definition so long as (i) such properties are being leased by the Corporation or any Affiliate from the tenancy-in-common (or Delaware statutory trust) investors, and (ii) such properties are reflected as Assets of the Corporation in accordance with GAAP. 
REIT. A “real estate investment trust” under Sections 856 through 860 of the Code or as may be amended. 
Sale or Sales. Any transaction or series of transactions whereby: (A) the Corporation or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of any Property or portion thereof, including the lease of any Property consisting of a building only, and including any event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the Corporation or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of the Corporation or the Operating Partnership in any Joint Venture in which it is a co-venturer or partner; (C) any Joint Venture directly or indirectly (except as described in other subsections of this definition) in which the Corporation or the Operating Partnership as a co-venturer or partner sells, grants, transfers, conveys, or relinquishes its ownership of any Property or portion thereof, including any event with respect to any Property which gives rise to insurance claims or condemnation awards; (D) the Corporation or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, conveys or relinquishes its interest in any Mortgage or portion thereof (including with respect to any Mortgage, all payments thereunder or in satisfaction thereof other than regularly scheduled interest payments) of amounts owed pursuant to such Mortgage and any event which gives rise to a significant amount of insurance proceeds or similar awards; or (E) the Corporation or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of any other Asset not previously described in this definition or any portion thereof, but (ii) not including any transaction or series of transactions specified in clause (i) (A) through (E) above in which the proceeds of such transaction or series of transactions are reinvested by the Corporation in one or more Assets within 180 days thereafter. 
Sales Commission. A percentage of Gross Proceeds from the sale of primary Shares in the Offering (not including Shares sold pursuant to the Corporation’s distribution reinvestment plan) payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Shares sold by them. 
Securities. The term “Securities” shall mean any of the following issued by the Corporation, as the text requires: Equity Shares, any other stock, shares or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing. 
Shares. The shares of the common stock of the Corporation sold in the Offering. 
Soliciting Dealers. Broker-dealers who are members of FINRA, or that are exempt from broker-dealer registration, and who, in either case, have executed selected dealer or other agreements with the Dealer Manager to sell Shares. 
Special OP Units. The separate series of limited partnership interests to be issued in accordance with Paragraph 9(c). 
Sponsor. Any Person which (i) is directly or indirectly instrumental in organizing, wholly or in part, the Corporation, (ii) will control, manage or participate in the management of the Corporation, and any Affiliate of any 

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such Person, (iii) takes the initiative, directly or indirectly, in founding or organizing the Corporation, either alone or in conjunction with one or more other Persons, (iv) receives a material participation in the Corporation in connection with the founding or organizing of the business of the Corporation, in consideration of services or property, or both services and property, (v) has a substantial number of relationships and contacts with the Corporation, (vi) possesses significant rights to control Properties, (vii) receives fees for providing services to the Corporation which are paid on a basis that is not customary in the industry, or (viii) provides goods or services to the Corporation on a basis which was not negotiated at arm’s-length with the Corporation. “Sponsor” does not include any Person whose only relationship with the Corporation is that of an independent property manager and whose only compensation is as such, or wholly independent third parties such as attorneys, accountants and underwriters whose only compensation is for professional services. 
Stockholders. The registered holders of the Corporation’s Shares. 
Termination Date. The date of termination of this Agreement. 
Termination Event. The termination or nonrenewal of this Agreement (i) in connection with a merger, sale of Assets or transaction involving the Corporation pursuant to which a majority of the Directors then in office are replaced or removed, (ii) by the Advisor for Good Reason or (iii) by the Corporation and the Operating Partnership other than for Cause. 
Total Operating Expenses. All costs and expenses paid or incurred by the Corporation, as determined under generally accepted accounting principles, that are in any way related to the operation of the Corporation or to corporate business, including Asset Management Fees and other operating fees paid to the Advisor, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad debt reserves, (v) incentive fees, (vi) Acquisition Fees and Acquisition Expenses, (vii) real estate commissions on the Sale of Property, (viii) distributions made with respect to interests in the Operating Partnership, and (ix) other fees and expenses connected with the acquisition, Disposition, management and ownership of real estate interests, mortgage loans or other property (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and improvement of property). Notwithstanding the definition set forth above, any expense of the Corporation which is not part of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses for purposes hereof. 

Total Project Cost. With regard to any Real Property acquired prior to or during the development, construction or improvement stages, all hard and soft costs and expenses paid or incurred by or on behalf of the Corporation that are in any way related to the development, construction, improvement or stabilization (including tenant improvements) of such Real Property, including, but not limited to, any debt, whether borrowed or assumed, land and construction costs. 
Value Per Share. The term “Value Per Share” shall mean (i) in the event of a Listing pursuant to which incremental equity capital is expected to be raised through the issuance of shares of the Corporation, the final price at which such shares are actually issued, or an estimate thereof reasonably determined by mutual agreement of the Corporation and the Advisor, and (ii) in the event of a Listing pursuant to which no incremental equity capital is expected to be raised through the issuance of shares of the Corporation, the closing price at the end of the first day of trading of the Corporation’s shares upon Listing, or an estimate thereof reasonably determined by mutual agreement of the Corporation and the Advisor.
2%/25% Guidelines. For any year in which the Corporation qualifies as a REIT, the requirement pursuant to the NASAA REIT Guidelines that, in any 12 month period, Total Operating Expenses not exceed the greater of 2% of the Corporation’s Average Invested Assets during such 12 month period or 25% of the Corporation’s Net Income over the same 12 month period. 
2. APPOINTMENT. The Corporation and the Operating Partnership hereby appoint the Advisor to serve as their advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment. 

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3. DUTIES OF THE ADVISOR. The Advisor undertakes to use its reasonable efforts to present to the Corporation and the Operating Partnership potential investment opportunities and to provide a continuing and suitable investment program consistent with the investment objectives and policies of the Corporation as determined and adopted from time to time by the Board of Directors. In performance of this undertaking, subject to the supervision of the Board of Directors and consistent with the provisions of the Charter, the Bylaws and the Operating Partnership Agreement, and subject to the condition that any investment advisory services provided with respect to securities shall be provided by a registered investment adviser, the Advisor shall, either directly or by engaging an Affiliated or non-Affiliated Person: 
(a) serve as the Corporation’s and the Operating Partnership’s investment and financial advisor and provide research and economic and statistical data in connection with the Corporation’s assets and investment policies; 
(b) manage and supervise the Offering process, including, without limitation: (i) develop the product offering, including the determination of the specific terms of the Securities to be offered by the Corporation, prepare all offering and related documents, and obtain all required regulatory approvals; (ii) along with the Dealer Manager, approve the participating broker dealers and negotiate the related selling agreements; (iii) coordinate the due diligence process for participating broker dealers and their review of any Prospectus and other Offering and Corporation documents; (iv) assist in the preparation and approval of all marketing materials contemplated to be used by the Dealer Manager or others in the Offering of the Corporation’s Securities; (v) along with the Dealer Manager, negotiate and coordinate with the transfer agent for the receipt, collection, processing and acceptance of subscription agreements and other administrative support functions; and (vi) manage and supervise all other services related to the organization of the Corporation, the Operating Partnership or the Offering; 
(c) provide the daily management for the Corporation and the Operating Partnership and perform and supervise the various administrative functions reasonably necessary for the management of the Corporation and the Operating Partnership, including, without limitation: (i) provide or arrange for administrative services and items, legal and other services, office space, office furnishings, personnel and other items necessary and incidental to the Corporation’s business and operations; (ii) maintain accounting data and any other information requested concerning the activities of the Corporation and the Operating Partnership as shall be required to prepare and to file all periodic financial reports with the Securities and Exchange Commission and any other regulatory agency, including annual financial statements; (iii) oversee tax and compliance services and risk management services and coordinate with appropriate third parties, including independent accountants and other consultants, on related tax matters; (iv) manage and coordinate with the transfer agent the quarterly dividend process and payments to Stockholders; (v) consult with and assist the Board of Directors in evaluating and obtaining adequate insurance coverage based upon risk management determinations; (vi) provide the Board of Directors with updates related to the overall regulatory environment affecting the Corporation and the Operating Partnership, as well as managing compliance with such matters; (vii) consult with the Board of Directors with respect to the corporate governance structure and appropriate policies and procedures related thereto; (viii) oversee all reporting, record keeping, internal controls and 
similar matters in a manner to allow the Corporation and the Operating Partnership to comply with applicable law, including the Sarbanes-Oxley Act; (ix) manage communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports and other communications; and (x) establish technology infrastructure to assist in providing Stockholder support and service; 
(d) investigate, select, and, on behalf of the Corporation and the Operating Partnership, engage and conduct business with such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder, including but not limited to consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, real estate management companies, real estate operating companies, securities investment advisors, mortgagors, and any and all agents for any of the foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services, including but not limited to entering into contracts in the name of the Corporation and the Operating Partnership with any of the foregoing; 

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(e) consult with the officers and Board of Directors of the Corporation and assist the Board of Directors in the formulation and implementation of the Corporation’s financial policies, and, as necessary, furnish the Board of Directors with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Corporation and in connection with any borrowings proposed to be undertaken by the Corporation and/or the Operating Partnership; 
(f) subject to the provisions of Paragraphs 3(h) and 4 hereof, (i) locate, analyze and select potential investments, (ii) structure and negotiate the terms and conditions of transactions pursuant to which investments will be made; (iii) make investments on behalf of the Corporation and the Operating Partnership in compliance with the investment objectives and policies of the Corporation; (iv) oversee the due diligence process; (v) arrange for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with, investments; and (vi) enter into leases and service contracts for Properties and, to the extent necessary, perform all other operational functions for the maintenance and administration of such Properties; 
(g) upon request, provide the Board of Directors with periodic reports regarding prospective investments; 
(h) make investments in and Dispositions of Assets within the discretionary limits and authority as granted by the Board; 
(i) negotiate on behalf of the Corporation and the Operating Partnership with banks or lenders for loans to be made to the Corporation and the Operating Partnership, and negotiate on behalf of the Corporation and the Operating Partnership with investment banking firms and broker-dealers or negotiate private sales of Shares and Securities or obtain loans for the Corporation and the Operating Partnership, but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Corporation or the Operating Partnership; 
(j) obtain reports (which may but are not required to be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of investments or contemplated investments of the Corporation and/or the Operating Partnership in Assets; 
(k) from time to time, or at any time reasonably requested by the Board of Directors, make reports to the Board of Directors of its performance of services to the Corporation and the Operating Partnership under this Agreement, including reports with respect to potential conflicts of interest involving the Advisor or any of its affiliates; 
(l) provide the Corporation and the Operating Partnership with all necessary cash management services; 

(m) do all things necessary to assure its ability to render the services described in this Agreement; 
(n) deliver to or maintain on behalf of the Corporation copies of all appraisals obtained in connection with the investments in Real Properties and all valuations of other Assets as may be required to be obtained by the Board; 
(o) notify and obtain the approval of the Corporation’s investment committee for all non-affiliated transactions that have a Contract Purchase Price, Total Project Cost or Contract Sales Price of $30 million or less before such transactions are completed; 
(p) notify and obtain the approval of the Board for all proposed transactions that have a Contract Purchase Price, Total Project Cost or Contract Sales Price of more than $30 million before such transactions are completed; 
(q) notify and obtain the approval of a majority of the Board of Directors (including a majority of the Independent Directors) for all affiliated transactions before such transactions are completed; and 

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(r) effect any private placement of OP Units, tenancy-in-common, Delaware statutory trust, or other interests in Real Properties as may be approved by the Board. 
Notwithstanding the foregoing, the Advisor may delegate any or all of the foregoing duties to any Person so long as the Advisor or any Affiliate remains responsible for the performance of the duties set forth in this Paragraph 3, subject to the prior consent of the Corporation if all or substantially all of such duties are delegated to a Person that is not an Affiliate. 
4. AUTHORITY OF ADVISOR. 
(a) Pursuant to the terms of this Agreement (including the restrictions included in this Paragraph 4 and in Paragraph 7), and subject to the continuing and exclusive authority of the Board of Directors over the management of the Corporation, the Board of Directors hereby delegates to the Advisor the authority to (1) locate, analyze and select investment opportunities, (2) manage and supervise the offering process, (3) structure the terms and conditions of transactions pursuant to which investments will be made, acquired or disposed of for the Corporation and the Operating Partnership, (4) acquire and dispose of investments in compliance with the investment objectives and policies of the Corporation, (5) arrange for financing or refinancing for Assets, (6) enter into leases and service contracts for Properties, (7) oversee Affiliated and non-Affiliated property managers who perform services for the Corporation or the Operating Partnership, (8) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform certain of the services required to be performed under this Agreement, (9) manage communications with Stockholders, and (10) manage public reporting, internal controls, accounting and other record-keeping functions and general corporate services for the Corporation and the Operating Partnership. 
(b) Notwithstanding the foregoing, any investment in Real Properties, including any acquisition of Real Property by the Corporation or the Operating Partnership (including any financing of such acquisition), will require the prior approval of the Board, any particular Directors specified by the Board or any committee of the Board, as the case may be. 
(c) In connection with a proposed transaction that requires the approval of the Independent Directors, the Advisor will deliver to the Independent Directors all documents and other information required by them to properly evaluate the proposed transaction. 
The prior approval of a majority of the Board of Directors (including a majority of the Independent Directors) will be required for each transaction to which the Advisor or its Affiliates is a party. The Board of Directors may, at any time upon the giving of written notice to the Advisor, modify or revoke the authority set forth in this Paragraph 4. If and to the extent the Board so modifies or revokes the authority contained herein, the Advisor shall henceforth submit to the Board for prior approval such proposed transactions involving investments in Assets as thereafter require prior approval, provided however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Corporation prior to the date of receipt by the Advisor of such notification. 
 
5. BANK ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in the name of the Corporation, the Operating Partnership or the Operating Partnership’s subsidiaries and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Corporation, the Operating Partnership or the Operating Partnership’s subsidiaries, under such terms and conditions as the Board of Directors may approve, provided that no funds shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Board of Directors and to the auditors of the Corporation.
6. RECORDS; ACCESS. The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the Board of Directors and by counsel, auditors and authorized agents of the Corporation, at any time or from time to time during normal business hours. The Advisor shall at all reasonable times have access to the books and records of the Corporation and the Operating Partnership. 
7. LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made in good faith, would (a) adversely affect the status of the Corporation as a REIT, (b) subject the Corporation to regulation under the Investment 

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Corporation Act of 1940, as amended, or (c) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Corporation, its Shares or its Securities, or otherwise not be permitted by the Charter or Bylaws of the Corporation, except if such action shall be ordered by the Board of Directors, in which case the Advisor shall notify promptly the Board of Directors of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board of Directors. In such event the Advisor shall have no liability for acting in accordance with the specific instructions of the Board of Directors so given. Notwithstanding the foregoing, the Advisor, its members, managers, directors, officers, employees and stockholders, and members, managers, stockholders, directors and officers of the Advisor’s Affiliates, shall not be liable to the Corporation or to the Board of Directors or stockholders for any act or omission by the Advisor, its members, managers, directors, officers or employees, or stockholders, members, managers, directors or officers of the Advisor’s Affiliates taken or omitted to be taken in the performance of their duties under this Agreement except as provided in Paragraph 19 of this Agreement. 
8. RELATIONSHIP WITH DIRECTORS. Subject to Paragraph 7 of this Agreement and to restrictions advisable with respect to the qualification of the Corporation as a REIT, members, managers, directors, officers and employees of the Advisor or an Affiliate of the Advisor or any corporate parents of an Affiliate, may serve as a Director and as officers of the Corporation, except that no member, manager, director, officer or employee of the Advisor or its Affiliates who also is a Director or officer of the Corporation shall receive any compensation from the Corporation for serving as a Director or officer of the Corporation other than reasonable reimbursement for travel and related expenses incurred in attending meetings of the Board of Directors and no such Director shall be deemed an Independent Director for purposes of satisfying the Director independence requirement set forth in the Charter. 
9. FEES. 
(a) Acquisition Fees. The Advisor shall receive Acquisition Fees in connection with each Asset acquired on the Corporation’s behalf. For investments in Real Property, the Acquisition Fee will vary depending on whether with respect to the Real Property acquired, the Advisor provides either Development Services (defined below) or Development Oversight Services (defined below) either in connection with the acquisition of such Real Property (including, without limitation, forward commitment acquisitions), the stabilization of such Real Property (including, without limitation, development and value add transactions), or both (any of the foregoing being “Development Real Properties).  For each Real Property acquired, for which the Advisor does not provide either Development or Development Oversight Services either in connection with the acquisition of such Real Property, the stabilization of such Real Property, or both (the “Non-Development Real Properties”), the Acquisition Fee is an amount equal to 2.0% of the Contract Purchase Price of the Non-Development Real Property (or the Corporation’s proportional interest therein), including Real Property held in Joint Ventures or other entities that are co-owned.  In connection with providing services related to the development, construction, improvement or stabilization, including tenant improvements, of Development Real Properties (collectively, “Development Services”) or overseeing the provision of these services by third parties on behalf of the Corporation (“Development Oversight Services”), the Acquisition Fee (the “Development Acquisition Fee”) will be an amount that will equal up to 4.0% of Total Project Cost of such Development Real Property (or the Corporation’s proportional interest therein with respect to Real Property held in Joint Ventures or other entities that are co-owned). If the Advisor engages a third party to provide Development Services directly to the Corporation, the third party will be compensated directly by the Corporation, and the Advisor will receive the Development Acquisition Fee if it provides the Development Oversight Services. With respect to Non-Development Real Properties, the Advisor is also entitled to receive Acquisition Fees of (i) 2.0% of the Corporation’s proportionate share of the Contract Purchase Price of the Real Property owned by any real estate related entity in which the Corporation acquires a majority economic interest or that the Corporation consolidates for financial reporting purposes in accordance with GAAP and (ii) 2.0% of the Contract Purchase Price in connection with the acquisition of an interest in any other real estate related entity.  Additionally, in connection with the acquisition or origination of any Mortgage, any other type of debt investment or other investment, the Advisor is entitled to receive an Acquisition Fee of 1.0% of the Contract Purchase Price and any third-party expenses related to such investment. Acquisition Fees associated with a given Asset shall be calculated in the currency used to acquire such Asset and payable in U.S. dollars. Acquisition Fees shall be paid at or after the closing of an investment. The amount of Acquisition Fees payable pursuant to this Section 9(a) shall be given retroactive effect for each Real Property acquired prior to the date of this Agreement. The total of all Acquisition Fees and Acquisition Expenses payable with respect to any Asset, including any Development Acquisition Fees, shall not exceed 6% of the Contract 

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Purchase Price or the Total Project Cost (as applicable) of such Asset unless fees in excess of such amount are approved by a majority of the Board of Directors, including a majority of the Independent Directors. 
(b) Asset Management Fee. The Advisor shall receive the Asset Management Fee as partial compensation for services rendered in connection with the management and Disposition of the Corporation’s Assets. The Asset Management Fee shall be payable by the Corporation in cash or in Shares at the option of the Advisor, and may be deferred, in whole or in part, from time to time, by the Advisor (without interest). The Asset Management Fee shall consist of (i) a monthly fee equal to one-twelfth of 0.80% of the aggregate cost (before non-cash reserves and depreciation) of each Real Property (or the Corporation’s proportional interest therein with respect to Real Property held in Joint Ventures or real estate entities where the Corporation owns a majority economic interest or that the Corporation consolidates for financial reporting purposes in accordance with GAAP); provided, that the Asset Management Fee with respect to each Real Property located outside of the United States that the Corporation owns, directly or indirectly, will equal a monthly fee of one-twelfth of 1.20% of the aggregate cost (before non-cash reserves and depreciation) of each Real Property, (ii) a monthly fee equal to one-twelfth of 0.80% of the aggregate cost or investment with respect to an acquisition of an interest in any other real estate related entity or an origination or acquisition of any Mortgage, any other type of debt investment or other investment, and (iii) in connection with a Disposition, a fee equal to (x) 2.5% of the Gross Market Capitalization of the Corporation upon the occurrence of a Listing or (y) 2.5% of the Contract Sales Price upon the occurrence of any other Disposition. With the exception of any portion of the Asset Management Fee related to a Disposition, which shall be payable at the time of such Disposition, the Asset Management Fee shall be payable on the 1st day of each month. 
(c) Operating Partnership Interests. The Sponsor has made a capital contribution of $1,000 to the Operating Partnership in exchange for OP Units constituting a separate series of limited partnership interests (the “Special OP Units”). Upon the earliest to occur of the termination or nonrenewal of this Agreement for Cause, a Termination Event, or a Liquidity Event, all of the Special OP Units shall be redeemed by the Operating Partnership in accordance with the terms of the Operating Partnership Agreement. 
(d) Loans from Affiliates. The Advisor or any Affiliate thereof may not make any loan to the Corporation or the Operating Partnership unless a majority of the Board of Directors (including a majority of the Independent Directors) approve the loan as being fair, competitive, and commercially reasonable and no less favorable to the Corporation or the Operating Partnership than loans between unaffiliated parties under the same circumstances. 
(e) Exclusion of Certain Transactions. In the event the Corporation or the Operating Partnership shall propose to enter into any transaction with the Sponsor, the Advisor, a Director or any Affiliate thereof, then such transaction shall be approved by a majority of the Board of Directors (including a majority of the Independent Directors) as fair and reasonable to the Corporation. 
10. EXPENSES. 
(a) In addition to the compensation paid to the Advisor pursuant to Paragraph 9 hereof and subject to the limitations below, the Corporation or the Operating Partnership shall pay directly or reimburse the Advisor for all of the expenses paid or incurred by the Advisor in connection with the services it provides to the Corporation and the Operating Partnership pursuant to this Agreement, including, but not limited to: 
(i) Up to 2.0% of Gross Proceeds from all Offerings as Organization and Offering Expense reimbursements. The Advisor will use all or a portion of this reimbursement to pay for the Corporation’s Organization and Offering Expenses, including certain distribution-related expenses of the Dealer Manager and Soliciting Dealers. The Advisor or an Affiliate of the Advisor will be responsible for the cumulative Organization and Offering Expenses of all Offerings to the extent that such expenses exceed the amount remaining from the 2.0% Organization and Offering Expense reimbursements from all Offerings, without recourse against or reimbursement by the Corporation; 
 
(ii) Acquisition Expenses; 

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(iii) the actual cost of goods and services used by the Corporation and obtained from Persons not affiliated with the Advisor, other than Acquisition Expenses, including brokerage fees paid in connection with the purchase and sale of any securities; 
(iv) interest and other costs for borrowed money, including discounts, points and other similar fees; 
(v) taxes and assessments on income of the Corporation or Assets and any other taxes otherwise imposed on the Corporation; 
(vi) costs associated with insurance required in connection with the business of the Corporation or by the officers and Directors; 
(vii) expenses of managing and operating Assets owned by the Corporation, whether payable to an Affiliate of the Corporation or a non-affiliated Person; 
(viii) all expenses in connection with payments to the Directors and meetings of the Directors and Stockholders; 
(ix) expenses associated with a Listing, if applicable; 
(x) expenses connected with payments of Distributions in cash or otherwise made or caused to be made by the Corporation to the Stockholders; 
(xi) expenses of organizing, revising, amending, converting, modifying, or terminating the Corporation or the Charter; 
(xii) expenses of maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 
(xiii) personnel (and related employment) costs and overhead (including, but not limited to, allocated rent paid to both third parties and an affiliate of the Advisor, equipment, utilities, insurance, travel and entertainment, and other costs) incurred by the Advisor or its Affiliates in performing the services described in Section 3 hereof, including, but not limited to, total compensation, benefits and other overhead of all employees involved in the performance of such services; provided, however, that no reimbursement shall be made for costs of personnel to the extent that such personnel perform services in transactions for which the Advisor receives a separate fee; 
(xiv) audit, accounting and legal fees and other fees for professional services relating to the operations of the Corporation and all such fees incurred at the request, or on behalf of, the Independent Directors or any committee of the Board of Directors; 
(xv) out-of-pocket costs for the Corporation to comply with all applicable laws, regulations and ordinances; and 
(xvi) all other costs incurred by the Advisor in performing its duties hereunder. 
(b) Expenses incurred by the Advisor on behalf of the Corporation and the Operating Partnership and payable pursuant to this Paragraph 10 shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Corporation and the Operating Partnership and the calculation of the Asset Management Fee during each quarter, and shall deliver such statement to the Corporation and the Operating Partnership within 45 days after the end of each quarter. 
11. OTHER SERVICES. Should the Board of Directors request that the Advisor or any director, officer or employee thereof render services for the Corporation and the Operating Partnership other than set forth in Paragraph 3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Advisor and the Independent Directors of the Corporation, subject to the limitations contained in the Charter, and shall not be deemed to be services pursuant to the terms of this Agreement. 

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12. REIMBURSEMENT TO THE ADVISOR. For any year in which the Corporation qualifies as a REIT, the Corporation shall not reimburse the Advisor at the end of any fiscal quarter Total Operating Expenses that, in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year. Any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Corporation or, at the option of the Corporation, subtracted from the Total Operating Expenses reimbursed during the subsequent fiscal quarter unless a majority of the Independent Directors determine that such excess was justified based on unusual and nonrecurring factors which they deem sufficient, then the Excess Amount may be paid and within 60 days after the end of such Expense Year there shall be sent to the stockholders a written disclosure of such fact, together with an explanation of the factors the Independent Directors considered in determining that such excess expenses were justified. Such determination shall be reflected in the minutes of the meetings of the Board of Directors. The Corporation will not reimburse the Advisor or its Affiliates for services for which the Advisor or its Affiliates are entitled to compensation in the form of a separate fee. All figures used in the foregoing computation shall be determined in accordance with generally accepted accounting principles applied on a consistent basis. 
13. OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict the right of any member, manager, director, officer, employee, or stockholder of the Advisor or its Affiliates to engage in or earn fees from any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association and earn fees for rendering such services. The Advisor may, with respect to any investment in which the Corporation is a participant, also render advice and service to each and every other participant therein, and earn fees for rendering such advice and service. It is contemplated that the Corporation may enter into joint ventures or other similar co-investment arrangements with certain Persons, and pursuant to the agreements governing such joint ventures or arrangements, the Advisor may be engaged (directly or indirectly) to provide advice and service to such Persons, in which case the Advisor will earn fees for rendering such advice and service. The parties to this Agreement hereby acknowledge that the Advisor may provide advice and render services to Persons that will compete with the Corporation for investments. 
The Advisor shall report to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Corporation and its obligations to or its interest in any other partnership, corporation, limited liability company, firm, individual, trust or association. The Advisor or its Affiliates shall promptly disclose to the Board knowledge of such condition or circumstance. If the Advisor, its members, managers, directors, employees or Affiliates thereof have sponsored other investment programs with similar investment objectives which have investment funds available at the same time as the Corporation, it shall be the duty of the Independent Directors to ensure that the Advisor and its Affiliates follow the method approved by the Independent Directors, by which investments are to be allocated to the competing investment entities and to use their reasonable efforts to ensure that such method is applied fairly to the Corporation. 
The Advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the Corporation which is consistent with the investment policies and objectives of the Corporation, but neither the Advisor nor any Affiliate of the Advisor shall be obligated generally to present any particular investment opportunity to the Corporation even if the opportunity is of character which, if presented to the Corporation, could be taken by the Corporation. In the event an investment opportunity is located, the allocation procedure set forth under the caption “Conflicts of Interest—Conflict Resolution Procedures” in any Prospectus (as such procedures may be amended from time to time by a majority of the Board, including the Independent Directors) shall govern the allocation of the opportunity among the Corporation and Affiliates of the Advisor. 
14. TERM; TERMINATION OF AGREEMENT. This Agreement shall continue in force for a period of one year from the date hereof, subject to an unlimited number of successive one-year renewals upon mutual consent of the parties. It is the duty of the Independent Directors to evaluate the performance of the Advisor annually before renewing the Agreement, and each such renewal shall be for a term of no more than one year. 
 

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15. TERMINATION BY THE PARTIES. This Agreement may be terminated (i) immediately by the Corporation and/or the Operating Partnership for Cause (subject to any applicable cure period), (ii) upon 60 days written notice without Cause and without penalty by a majority of the Independent Directors of the Corporation or by the Advisor, (iii) upon 60 days written notice with Good Reason by the Advisor or (iv) immediately by the Corporation and/or the Operating Partnership in connection with a merger, sale of Assets or transaction involving the Corporation pursuant to which a majority of the Directors then in office are replaced or removed. 
16. ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the Advisor to an Affiliate or Affiliates with the approval of a majority of the Board of Directors (including a majority of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the approval of the Board of Directors. This Agreement shall not be assigned by the Corporation or the Operating Partnership without the consent of the Advisor, except in the case of an assignment by the Corporation or the Operating Partnership to a corporation, limited partnership or other organization which is a successor to all of the assets, rights and obligations of the Corporation or the Operating Partnership, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Corporation and the Operating Partnership are bound by this Agreement. 
17. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION. 
(a) After the Termination Date, the Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Corporation or the Operating Partnership within 30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this Agreement. In addition, in accordance with the provisions of Paragraph 12, the Advisor shall be entitled to receive any Excess Amount (as defined in Paragraph 12) for which the Independent Directors determined (before or after the Termination Date) that there was justification based on unusual and nonrecurring factors. 
(b) The Advisor shall promptly upon termination: 
(i) pay over to the Corporation and the Operating Partnership all money collected and held for the account of the Corporation and the Operating Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled; 
(ii) deliver to the Board of Directors a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board of Directors; 
(iii) deliver to the Board of Directors all Assets and documents of the Corporation and the Operating Partnership then in the custody of the Advisor; and 
(iv) cooperate with the Corporation and the Operating Partnership to provide an orderly management transition. 
18. INDEMNIFICATION BY THE CORPORATION AND THE OPERATING PARTNERSHIP. The Corporation and the Operating Partnership shall indemnify and hold harmless the Advisor and its Affiliates, including their respective members, managers, officers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, subject to any limitations imposed by the laws of the State of Maryland or the Charter. Notwithstanding the foregoing, the Corporation and the Operating Partnership may not indemnify or hold harmless the Advisor, its Affiliates, or any of their respective members, managers, officers, directors, partners or employees in any manner that would be inconsistent with the provisions of Section II.G of the REIT Guidelines adopted by the North American Securities Administrators Association. 
19. INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold harmless the Corporation and the Operating Partnership from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are incurred by reason of the Advisor’s bad faith, fraud, willful misfeasance, gross misconduct, gross negligence or 

16

reckless disregard of its duties, but the Advisor shall not be held responsible for any action of the Board of Directors in following or declining to follow any advice or recommendation given by the Advisor. 
 
20. NOTICES. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Charter, the Bylaws, or accepted by the party to whom it is given, and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses set forth herein: 
	
			
	 
	 
	 

	To the Directors and to the Corporation:
	 
	Industrial Property Trust Inc.
518 17th Street
17th Floor
Denver, CO 80202

	 
	 

	To the Operating Partnership:
	 
	Industrial Property Operating Partnership 
LP
518 17th Street
17th Floor
Denver, CO 80202

	 
	 

	To the Advisor:
	 
	Industrial Property Advisors LLC
518 17th Street
17th Floor
Denver, CO 80202

Any party may at any time give notice in writing to the other parties of a change in its address for the purposes of this Paragraph 20. 
21. THIRD PARTY BENEFICIARY.  The terms and provisions of this Agreement are intended solely for the benefit of each party hereto, their Affiliates and their respective successors and permitted assigns, and it is not the intention of the parties to confer third-party beneficiary rights upon any other Person.
22. MODIFICATION. This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or assignees. 
23. SEVERABILITY. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. 
24. CONSTRUCTION. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Colorado. 
25. ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 
26. INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the part of a party or any third party beneficiary to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 

17

27. GENDER. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
 
28. TITLES NOT TO AFFECT INTERPRETATION. The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 
29. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 
30. INITIAL INVESTMENT. The Advisor has made a capital contribution of $200,000 to the Corporation in exchange for 20,000 Shares. The Advisor may not sell any of such Shares while the Advisor acts in such advisory capacity to the Corporation, provided, that such Shares may be transferred to Affiliates of the Advisor. The restrictions included above shall not apply to any other Securities acquired by the Advisor or its Affiliates. The Advisor shall not vote any Shares it now owns, or hereafter acquires, in any vote for the election of Directors, the removal of the Advisor, or any vote regarding the approval or termination of any contract with the Advisor or any of its Affiliates. 
 

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IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Advisory Agreement (2019) as of the date and year first above written. 
 
	
			
	 
	 
	 

	INDUSTRIAL PROPERTY TRUST INC.

	 
	 

	By:
	 
	/s/ Dwight L. Merriman III

	Name:
	 
	Dwight L. Merriman III

	Title:
	 
	Chief Executive Officer

	 

	INDUSTRIAL PROPERTY OPERATING
PARTNERSHIP LP

	 

	By:  Industrial Property Trust Inc., its Sole General Partner

	 
	 

	By:
	 
	/s/ Dwight L. Merriman III

	Name:
	 
	Dwight L. Merriman III

	Title:
	 
	Chief Executive Officer

	 

	INDUSTRIAL PROPERTY ADVISORS LLC

	 

	By:  Industrial Property Advisors Group LLC, its Sole
Member

	 
	 

	By:
	 
	/s/ Evan H. Zucker

	Name:
	 
	Evan H. Zucker

	Title:
	 
	Manager

19

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