Document:

Exhibit 10.7

 

EXECUTION VERSION

 

AMENDED AND RESTATED PROPERTY MANAGEMENT AGREEMENT

 

THIS AMENDED AND RESTATED PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made and entered into as of June 5, 2015, by and among Reit Management & Research LLC, a Maryland limited liability company (“Managing Agent”), and Reit Management & Research Trust, a Massachusetts business trust, on behalf of itself and those of its subsidiaries and affiliates as may from time to time own properties subject to this Agreement (each, an “Owner” and, collectively, “Owners”).

 

W I T N E S S E T H:

 

WHEREAS, Owners and Managing Agent are parties to a Property Management Agreement, dated as of September 1, 2011 (the “Original Agreement”); and

 

WHEREAS, Owners and Managing Agent wish to amend and restate the Original Agreement in its entirety;

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Owners and Managing Agent agree that the Original Agreement is hereby amended and restated to read in its entirety as follows:

 

1.                                      Engagement.  Subject to the terms and conditions hereinafter set forth, Owners hereby engage Managing Agent to provide property management and administrative services with respect to office and other properties now owned or hereafter acquired by Owners or with respect to which Owners may have property management obligations (collectively, the “Managed Premises”), subject to and upon the terms and conditions set forth in this Agreement.  Managing Agent hereby accepts such engagement and agrees to devote such time, attention and effort as may be appropriate to operate and manage the Managed Premises in a diligent, orderly and efficient manner.  Managing Agent may subcontract out some or all of its obligations hereunder to third parties; provided, however, that, in any such event, Managing Agent shall be and remain primarily liable to Owners for performance hereunder.

 

2.                                      General Parameters.  Any or all services may be performed or goods purchased by Managing Agent under arrangements jointly with or for other properties owned or managed by Managing Agent and the costs shall be reasonably apportioned.  Managing Agent may employ personnel who are assigned to work exclusively at the Managed Premises or partly at the Managed Premises and other buildings owned and/or managed by Managing Agent.  Wages, benefits and other related costs of centralized accounting personnel and employees employed by Managing Agent and assigned to work exclusively or partly at the Managed Premises shall be fairly apportioned and reimbursed, pro rata, by Owners in addition to the Fee and Construction Supervision Fee (each as defined in Section 6).

 

3.                                      Duties.  Without limitation, Managing Agent agrees to perform the following specific duties:

 

 

(a)                                 To seek tenants for the Managed Premises in accordance with market rents and to negotiate leases, including renewals thereof, and to lease space to tenants, at rentals, and for periods of occupancy all on market terms.  To employ appropriate means in order that the availability of rental space is made known to potential tenants, including, but not limited to, the employment of brokers.  The brokerage and legal expenses of negotiating such leases and leasing such space shall be paid by the applicable Owner.

 

(b)                                 To collect all rents and other income from the Managed Premises and to give receipts therefor, both on behalf of Owners, and deposit such funds in such banks and such accounts as are named, from time to time, by Owners, in agency accounts for and under the name of Owners.  Managing Agent shall be empowered to sign disbursement checks on these accounts.  Managing Agent may also use pooled bank accounts for the benefit of Owners and other owners for whom the Managing Agent provides services, provided separate records and accountings of such funds are maintained.

 

(c)                                  To make contracts for and to supervise any repairs and/or alterations to the Managed Premises, including tenant improvements on reasonable commercial terms.

 

(d)                                 For Owners’ account and at its expense, to hire, supervise and discharge employees as required for the efficient operation and maintenance of the Managed Premises.

 

(e)                                  To obtain, at Owners’ expense, appropriate insurance for the Managed Premises protecting Owners and Managing Agent while acting on behalf of Owners against all normally insurable risks relating to the Managed Premises and complying with the requirements of Owners’ mortgagee, if any, and to cause the same to be provided and maintained by all tenants with respect to the Managed Premises to the extent required by the terms of such tenants’ leases.  Notwithstanding the foregoing, Owners may determine to purchase insurance directly for their own account.

 

(f)                                   To promptly notify the applicable Owner’s insurance carriers, as required by the applicable policies, of any casualty or injury to person or property at the Managed Premises, and complete customary reports in connection therewith.

 

(g)                                  To procure seasonably all supplies, other materials and services as may be necessary for the proper operation of the Managed Premises, at Owners’ expense.

 

(h)                                 To pay promptly from rental receipts, other income derived from the Managed Premises, or other monies made available by Owners for such purpose, all costs incurred in the operation of the Managed Premises which are expenses of Owners hereunder, including wages or other payments for services rendered, invoices for supplies or other items furnished in relation to the Managed Premises, and pay over forthwith the balance of such rental receipts, income and monies to Owners or as Owners shall from time to time direct.  (In the event that the sum of the expenses to operate and the compensation due Managing Agent exceed gross receipts in any month and no excess funds from prior months are available for payment of such excess, Owners shall pay

 

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promptly the amount of the deficiency thereof to Managing Agent upon receipt of statements therefor.)

 

(i)                                     To keep Owners apprised of any material developments in the operation of the Managed Premises.

 

(j)                                    To establish reasonable rules and regulations for tenants of the Managed Premises.

 

(k)                                 On behalf of and in the name of Owners, to institute or defend, as the case may be, any and all legal actions or proceedings relating to operation of the Managed Premises.

 

(l)                                     To maintain the books and records of Owners reflecting the management and operation of the Managed Premises, making available for reasonable inspection and examination by Owners or their representatives all books, records and other financial data relating to the Managed Premises at the place where the same are maintained.

 

(m)                             To prepare and deliver seasonably to tenants of the Managed Premises such statements of expenses or other information as shall be required on the landlord’s part to be delivered to such tenants for computation of rent, additional rent, or any other reason.

 

(n)                                 To aid, assist and cooperate with Owners in matters relating to taxes and assessments and insurance loss adjustments, notify Owners of any tax increase or special assessments relating to the Managed Premises and to enter into contracts for tax abatements services.

 

(o)                                 To provide such emergency services as may be required for the efficient management and operation of the Managed Premises on a twenty-four (24)-hour basis.

 

(p)                                 To enter into contracts on commercially reasonable terms for utilities (including, without limitation, water, fuel, electricity and telephone) and for building services (including, without limitation, cleaning of windows, common areas and tenant space, ash, rubbish and garbage hauling, snow plowing, landscaping, carpet cleaning and vermin extermination), and for other services as are appropriate to the Managed Premises.

 

(q)                                 To seek market terms for all items purchased or services contracted by it under this Agreement.

 

(r)                                    To take such action generally consistent with the provisions of this Agreement as Owners might with respect to the Managed Premises if personally present.

 

(s)                                   To, from time to time, or at any time requested by Owners, make reports of its performance of the foregoing services to the Company.

 

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4.                                      Authority.  Owners give to Managing Agent the authority and powers to perform the foregoing duties on behalf of Owners and authorize Managing Agent to incur such reasonable expenses, as contemplated in Sections 2, 3 and 5 on behalf of Owners as are necessary in the performance of those duties.

 

5.                                      Special Authority of Managing Agent.  In addition to, and not in limitation of, the duties and authority of Managing Agent contained herein, Managing Agent shall perform the following duties:

 

(a)                                 Terminate tenancies and sign and serve in the name of Owners such notices therefor as may be required for the proper management of the Managed Premises.

 

(b)                                 At Owners’ expense, institute and prosecute actions to evict tenants and recover possession of rental space, and recover rents and other sums due; and when expedient, settle, compromise and release such actions or suits or reinstate such tenancies.

 

6.                                      Compensation.

 

(a)                                 In consideration of the services to be rendered by Managing Agent hereunder, Owners agree to pay and Managing Agent agrees to accept as its compensation (i) a management fee (the “Fee”) equal to three percent (3%) of the gross collected rents actually received by Owners from the Managed Premises, such gross rents to include all fixed rents, percentage rents, additional rents, operating expense and tax escalations, and any other charges paid to Owners in connection with occupancy of the Managed Premises, but excluding any amounts collected from tenants to reimburse Owners for the cost of capital improvements or for expenses incurred in curing any tenant default or in enforcing any remedy against any tenant; and (ii) a construction supervision fee (the “Construction Supervision Fee”) in connection with all interior and exterior construction renovation or repair activities at the Managed Premises, including, without limitation, all tenant and capital improvements in, on or about the Managed Premises, undertaken during the term of this Agreement, other than ordinary maintenance and repair, equal to five percent (5%) of the cost of such construction which shall include the costs of all related professional services and the cost of general conditions.

 

(b)                                 Unless otherwise agreed, the Fee shall be due and payable monthly, in arrears based on a reasonable annual estimate or budget with an annual reconciliation within thirty (30) days after the end of each calendar year.  The Construction Supervision Fee shall be due and payable periodically, as agreed by Managing Agent and Owners, based on actual costs incurred to date.

 

(c)                                  Notwithstanding anything herein to the contrary, Owners shall reimburse Managing Agent for reasonable travel expenses incurred when traveling to and from the Managed Premises while performing its duties in accordance with this Agreement; provided, however, that, reasonable travel expenses shall not include expenses incurred for travel to and from the Managed Premises by personnel assigned to work exclusively at the Managed Premises.

 

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(d)                                 Managing Agent shall be entitled to no other additional compensation, whether in the form of commission, bonus or the like for its services under this Agreement.  Except as otherwise specifically provided herein with respect to payment by Owners of legal fees, accounting fees, salaries, wages, fees and charges of parties hired by Managing Agent on behalf of Owners to perform operating and maintenance functions in the Managed Premises, and the like, if Managing Agent hires third parties to perform services required to be performed hereunder by Managing Agent without additional charge to Owners, Managing Agent shall (except to the extent the same are reasonably attributable to an emergency at the Managed Premises) be responsible for the charges of such third parties.

 

7.                                      Term of Agreement.

 

(a)                                 The initial term of this Agreement shall commence on the date hereof and shall expire on December 31, 2016 (the “Initial Term”) and shall be automatically renewed for successive one-year terms (each, a “Renewal Term”) upon the expiration of the Initial Term and each Renewal Term unless notice of non-renewal is given in writing by the Managing Agent or Owner not less than thirty (30) calendar days before the expiration of the Initial Term or any Renewal Term.

 

(b)                                 In addition, either the Owner or Managing Agent may terminate this Agreement at any time, for any reason or for no reason at all, without payment of a premium and penalty, by the giving of not less than thirty (30) days prior written notice thereof to the other.  In such event, this Agreement shall terminate on the date set forth in such notice and neither party shall have any further rights or obligations hereunder except to pay to the other any amounts due through the termination date and for any obligations which expressly survive such termination.

 

8.                                      Termination.  Upon termination of this Agreement with respect to any of the Managed Premises for any reason whatsoever, Managing Agent shall as soon as practicable turn over to Owners all books, papers, funds, records, keys and other items relating to the management and operation of such Managed Premises, including, without limitation, all leases in the possession of Managing Agent and shall render to Owners a final accounting with respect thereto through the date of termination.  Owners shall be obligated to pay all compensation for services rendered by Managing Agent hereunder prior and up to the effective time of such termination, including, without limitation, any Fees and Construction Supervision Fees, and shall pay and reimburse to Managing Agent all expenses and costs incurred by Managing Agent prior and up to the effective time of such termination which are otherwise payable or reimbursable to Managing Agent pursuant to the terms of this Agreement (collectively, “Accrued Fees”).

 

A computation of all Accrued Fees, if any, due upon termination shall be delivered by Managing Agent to Owners within thirty (30) days following the effective date of termination. The Accrued Fees due upon termination shall be payable within ten (10) business days following the delivery to Owners of such computation.

 

9.                                      Assignment of Rights and Obligations.  Neither party may assign this Agreement or its rights hereunder or delegate its duties hereunder without the written consent of

 

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the other party, except that Managing Agent may assign this Agreement to any subsidiary of Reit Management & Research, Inc. (“Parent”) so long as such subsidiary is then and remains controlled by Parent and Owners may assign this Agreement to any person controlling or under common control with Owners.

 

10.                               Indemnification and Insurance.

 

(a)                                 Owners agree to defend, indemnify and hold harmless Managing Agent from and against all costs, claims, expenses and liabilities (including reasonable attorneys’ fees) arising out of Managing Agent’s performance of its duties in accordance with this Agreement including, without limitation, injury or damage to persons or property occurring in, on or about the Managed Premises and violations or alleged violations of any law, ordinance, regulation or order of any governmental authority regarding the Managed Premises except any injury, damage or violation resulting from Managing Agent’s fraud, gross negligence or willful misconduct in the performance of its duties hereunder.

 

(b)                                 Owners and Managing Agent shall maintain such commercially reasonable insurance as shall from time to time be mutually agreed by Owners and Managing Agent.

 

11.                               Notices.  Any notice, report or other communication required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, upon confirmation of receipt when transmitted by facsimile transmission, on the next business day if transmitted by a nationally recognized overnight courier or on the third business day following mailing by first class mail, postage prepaid, in each case as follows (or at such other United States address or facsimile number for a party as shall be specified by like notice):

 

If to Owners:

 

Reit Management & Research Trust
 255 Washington Street
 Newton, Massachusetts 02458
 Attention:  President 
 Facsimile No.:  (617) 969-1437

 

If to Managing Agent:

 

Reit Management & Research LLC
 255 Washington Street
 Newton, Massachusetts 02458
 Attention:  President 
 Facsimile No.:  (617) 928-1305

 

12.                               Acquisitions and Dispositions of Properties.  Unless Owners and Managing Agent otherwise agree in writing, all properties from time to time acquired by Owners or their affiliates or which they shall be obligated to manager shall automatically become subject to this Agreement without amendment hereof.  Similarly, this Agreement shall automatically terminate

 

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with respect to all properties disposed of by Owners or as to which their obligation to manage shall terminate in the ordinary course of business, effective upon such disposition.

 

13.                               Modification of Agreement.  This Agreement may not be modified, altered or amended in any manner except by an amendment in writing, duly executed by the parties hereto.

 

14.                               Independent Contractor.  This Agreement is not one of general agency by Managing Agent for Owners, but Managing Agent is being engaged as an independent contractor.  Nothing in this Agreement is intended to create a joint venture, partnership, tenancy-in-common or other similar relationship between Owners and Managing Agent for any purposes whatsoever, and, without limiting the generality of the foregoing, neither the terms of this Agreement nor the fact that Owners and Managing Agent have joint interests in any one or more investments, ownership or other interests in any one or more entities or may have common officers or employees or a tenancy relationship shall be construed so as to make them such partners or joint venturers or impose any liability as such on either of them.

 

15.                               Law Governing.  The provisions of this Agreement and any Dispute, whether in contract, tort or otherwise, shall be governed by and construed in accordance with the laws of the State of Maryland without regard to principles of conflicts of law.

 

16.                               Successors and Assigns.  This Agreement shall be binding upon, and inure to the benefit of, any successors or permitted assigns of the parties hereto as provided herein.

 

17.                               No Third Party Beneficiary.  Except as otherwise provided in Section 20, no person or entity other than the parties hereto and their successors and permitted assigns is intended to be a beneficiary of this Agreement.

 

18.                               Severability.  If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof.

 

19.                               Survival.  Except for Sections 1 through 5 and Sections 9 and 13, all other provisions of this Agreement shall survive the termination hereof.  Any termination of this Agreement shall be without prejudice to the rights of the parties hereto accrued prior to the termination or upon termination.

 

20.                               Arbitration.

 

(a)                                 Any disputes, claims or controversies arising out of or relating to this Agreement, the provision of services by Managing Agent pursuant to this Agreement or the transactions contemplated hereby, including any disputes, claims or controversies brought by or on behalf of Owners, Parent or Managing Agent or any holder of equity interests (which, for purposes of this Section 20, shall mean any holder of record or any beneficial owner of equity interests or any former holder of record or beneficial owner of equity interests) of Owners, Parent or Managing Agent, either on his, her or its own

 

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behalf, on behalf of Owners, Parent or Managing Agent or on behalf of any series or class of equity interests of Owners, Parent or Managing Agent or holders of any equity interests of Owners, Parent or Manager Agent against Owners, Parent or Managing Agent or any of their respective trustees, directors, members, officers, managers (including Managing Agent or its successor), agents or employees, including any disputes, claims or controversies relating to the meaning, interpretation, effect, validity, performance or enforcement of this Agreement, including this arbitration agreement or the governing documents of Owners, Parent or Managing Agent (all of which are referred to as “Disputes”), or relating in any way to such a Dispute or Disputes shall, on the demand of any party to such Dispute or Disputes, be resolved through binding and final arbitration in accordance with the Commercial Arbitration Rules (the “Rules”) of the American Arbitration Association (“AAA”) then in effect, except as those Rules may be modified in this Section 20.  For the avoidance of doubt, and not as a limitation, Disputes are intended to include derivative actions against the trustees, directors, officers or managers of Owners, Parent or Managing Agent and class actions by a holder of equity interests against those individuals or entities and Owners, Parent or Managing Agent.  For the avoidance of doubt, a Dispute shall include a Dispute made derivatively on behalf of one party against another party.  For purposes of this Section 20, the term “equity interest” shall mean, (i) in respect of Reit Management & Research Trust, shares of beneficial interest of Reit Management & Research Trust, (ii) in respect of Managing Agent, “membership interest” in the Manager as defined in the Maryland Limited Liability Companies Act and (iii) in respect of Parent, shares of capital stock of Parent.

 

(b)                                 There shall be three (3) arbitrators. If there are only two (2) parties to the Dispute, each party shall select one (1) arbitrator within fifteen (15) days after receipt by respondent of a copy of the demand for arbitration.  The arbitrators may be affiliated or interested persons of the parties. If there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand, shall each select, by the vote of a majority of the claimants or the respondents, as the case may be, one (1) arbitrator within fifteen (15) days after receipt of the demand for arbitration.  The arbitrators may be affiliated or interested persons of the claimants or the respondents, as the case may be. If either a claimant (or all claimants) or a respondent (or all respondents) fail(s) to timely select an arbitrator then the party (or parties) who has selected an arbitrator may request AAA to provide a list of three (3) proposed arbitrators in accordance with the Rules (each of whom shall be neutral, impartial and unaffiliated with any party) and the party (or parties) that failed to timely appoint an arbitrator shall have ten (10) days from the date AAA provides the list to select one (1) of the three (3) arbitrators proposed by AAA. If the party (or parties) fail(s) to select the second (2nd) arbitrator by that time, the party (or parties) who have appointed the first (1st) arbitrator shall then have ten (10) days to select one (1) of the three (3) arbitrators proposed by AAA to be the second (2nd) arbitrator; and, if he/they should fail to select the  second (2nd) arbitrator by such time, AAA shall select, within fifteen (15) days thereafter, one (1) of the three (3) arbitrators it had proposed as the second (2nd) arbitrator. The two (2) arbitrators so appointed shall jointly appoint the third (3rd) and presiding arbitrator (who shall be neutral, impartial and unaffiliated with any party) within fifteen (15) days of the appointment of the second (2nd) arbitrator. If the third (3rd) arbitrator has not been appointed within the time limit specified herein, then AAA shall provide a list of

 

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proposed arbitrators in accordance with the Rules, and the arbitrator shall be appointed by AAA in accordance with a listing, striking and ranking procedure, with each party having a limited number of strikes, excluding strikes for cause.

 

(c)                                  The place of arbitration shall be Boston, Massachusetts unless otherwise agreed by the parties.

 

(d)                                 There shall be only limited documentary discovery of documents directly related to the issues in dispute, as may be ordered by the arbitrators.  For the avoidance of doubt, it is intended that there shall be no depositions and no other discovery other than limited documentary discovery as described in the preceding sentence.

 

(e)                                  In rendering an award or decision (the “Award”), the arbitrators shall be required to follow the laws of the State of Maryland.  Any arbitration proceedings or award rendered hereunder and the validity, effect and interpretation of this arbitration agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §1 et seq.  The Award shall be in writing and shall state the findings of fact and conclusions of law on which it is based.  Any monetary award shall be made and payable in U.S. dollars free of any tax, deduction or offset.  Subject to Section 20(g), each party against which the Award assesses a monetary obligation shall pay that obligation on or before the thirtieth (30th) day following the date of the Award or such other date as the Award may provide.

 

(f)                                   Except to the extent expressly provided by this Agreement or as otherwise agreed by the parties thereto, each party involved in a Dispute shall bear its own costs and expenses (including attorneys’ fees), and the arbitrators shall not render an award that would include shifting of any such costs or expenses (including attorneys’ fees) or, in a derivative case or class action, award any portion of Owners’, Parent’s or Managing Agent’s, as applicable, award to the claimant or the claimant’s attorneys.  Each party (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand, respectively) shall bear the costs and expenses of its (or their) selected arbitrator and the parties (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand) shall equally bear the costs and expenses of the third (3rd) appointed arbitrator.

 

(g)                                  Notwithstanding any language to the contrary in this Agreement, the Award, including but not limited to, any interim Award, may be appealed pursuant to the AAA’s Optional Appellate Arbitration Rules (“Appellate Rules”). The Award shall not be considered final until after the time for filing the notice of appeal pursuant to the Appellate Rules has expired. Appeals must be initiated within thirty (30) days of receipt of the Award by filing a notice of appeal with any AAA office. Following the appeal process, the decision rendered by the appeal tribunal may be entered in any court having jurisdiction thereof.  For the avoidance of doubt, and despite any contrary provision of the Appellate Rules, Section 20(f) hereof shall apply to any appeal pursuant to this Section and the appeal tribunal shall not render an award that would include shifting of any costs or expenses (including attorneys’ fees) of any party.

 

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(h)                                 Following the expiration of the time for filing the notice of appeal, or the conclusion of the appeal process set forth in Section 20(g), the Award shall be final and binding upon the parties thereto and shall be the sole and exclusive remedy between those parties relating to the Dispute, including any claims, counterclaims, issues or accounting presented to the arbitrators.  Judgment upon the Award may be entered in any court having jurisdiction.  To the fullest extent permitted by law, no application or appeal to any court of competent jurisdiction may be made in connection with any question of law arising in the course of arbitration or with respect to any award made except for actions relating to enforcement of this agreement to arbitrate or any arbitral award issued hereunder and except for actions seeking interim or other provisional relief in aid of arbitration proceedings in any court of competent jurisdiction.

 

(i)                                     This Section 20 is intended to benefit and be enforceable by Owners, Managing Agent, Parent and their respective holders of equity interests, trustees, directors, officers, managers (including Managing Agent or its successor), agents or employees, and their respective successors and assigns and shall be binding upon Owners, Managing Agent, Parent and their respective holders of equity interests, and be in addition to, and not in substitution for, any other rights to indemnification or contribution that such individuals or entities may have by contract or otherwise.

 

21.                               Consent to Jurisdiction and Forum.  The exclusive jurisdiction and venue in any action brought by any party hereto pursuant to this Agreement shall lie in any federal or state court located in Baltimore, Maryland.  By execution and delivery of this Agreement, each party hereto irrevocably submits to the jurisdiction of such courts for itself and in respect of its property with respect to such action. The parties irrevocably agree that venue would be proper in such court, and hereby waive any objection that such court is an improper or inconvenient forum for the resolution of such action.  The parties further agree and consent to the service of any process required by any such court by delivery of a copy thereof in accordance with Section 11 and that any such delivery shall constitute valid and lawful service of process against it, without necessity for service by any other means provided by statute or rule of court.  EACH PARTY HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE PROVISION OF SERVICES BY MANAGING AGENT PURSUANT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  Notwithstanding anything herein to the contrary, if a demand for arbitration of a Dispute is made pursuant to Section 20, this Section 21 shall not pre-empt resolution of the Dispute pursuant to Section 20.

 

22.                               Entire Agreement.  This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes any pre-existing agreements with respect to such subject matter.

 

23.                               Other Agreements.  Reit Management & Research Trust and Managing Agent are also parties to a Business Management Agreement, dated as of the date hereof, as in effect from time to time (the “Business Management Agreement”).  The parties agree that this Agreement does not include or otherwise address the rights and obligations of the parties under the Business Management Agreement and that the Business Management Agreement provides for its own separate rights and obligations of the parties thereto, including without limitation

 

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separate compensation payable to Managing Agent thereunder for services to be provided by the Managing Agent pursuant to the Business Management Agreement.

 

[Signature Page To Follow.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Property Management Agreement as a sealed instrument as of the date above first written.

 

	
 
    	
MANAGING AGENT:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
REIT MANAGEMENT &   RESEARCH LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew P. Jordan
    
	
 
    	
 
    	
Matthew P. Jordan
    
	
 
    	
 
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
OWNERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
REIT MANAGEMENT &   RESEARCH TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adam D. Portnoy
    
	
 
    	
 
    	
Adam D. Portnoy
    
	
 
    	
 
    	
President and Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SOLELY IN   RESPECT OF
    	
 
    	
 
    
	
SECTION 20,   PARENT:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
REIT MANAGEMENT &   RESEARCH INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew P. Jordan
    
	
 
    	
 
    	
Matthew P. Jordan
    
	
 
    	
 
    	
Treasurer and Chief   Financial Officer
    

 

[Signature Page to Trust Amended and Restated Property Management Agreement]Exhibit 10.8

 

EXECUTION VERSION

 

AMENDED AND RESTATED BUSINESS MANAGEMENT

AND SHARED SERVICES AGREEMENT

 

THIS AMENDED AND RESTATED BUSINESS MANAGEMENT AND SHARED SERVICES AGREEMENT (this “Agreement”) is made as of June 5, 2015, by and between SONESTA INTERNATIONAL HOTELS CORPORATION, a Maryland corporation (“Sonesta”), and REIT MANAGEMENT & RESEARCH LLC, a Maryland limited liability company (“RMR LLC”).

 

W I T N E S S E T H:

 

WHEREAS, Sonesta and RMR LLC are parties to a Shared Services Agreement, dated as of January 31, 2012 (the “Original Agreement”); and

 

WHEREAS, Sonesta and RMR LLC wish to amend and restate the Original Agreement in its entirety;

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Sonesta and RMR LLC hereby agree as follows:

 

1.                                      Services.  RMR LLC shall make available to Sonesta the services described below (each, a “Service”, and collectively, the “Services”), in each case to the extent requested by Sonesta:

 

(a)                                 Advice and assistance with accounting, tax, audit and financial reporting and policies, including, without limitation, advice and assistance in (i) setting up and maintaining systems for financial record keeping; (ii) conducting the administration of the day-to-day book keeping and accounting functions; (iii) contracting for and supervising audits; and (iv) preparing financial reports.

 

(b)                                 Advice and assistance relating to business development and strategic opportunities.

 

(c)                                  Advice and assistance relating to financing transactions.

 

(d)                                 Advice and assistance in maintaining bank accounts, including opening and closing of operating, depository and other cash accounts; bank administration; maintaining brokerage accounts; and maintaining bank and broker relationships.

 

(e)                                  Advice and assistance in risk management, including procuring, evaluating and maintaining insurance policies.

 

 

(f)                                   Review of and advice concerning regulatory issues, coordination and supervision of all third party legal services and oversight of processing of claims by or against Sonesta.

 

(g)                                  Advice and assistance with development and maintenance of information technology system applications, including, without limitation, intranet, financial, accounting, record-keeping and clerical systems.

 

(h)                                 Advice and assistance in review and negotiation of company contracts and agreements.

 

(i)                                     Advice and assistance relating to adoption, implementation and enforcement of a code of conduct, trading policies and the like.

 

(j)                                    Advice and assistance relating to human resources and employment issues, including, but not limited to, employee recruitment, performance evaluation, benefits program and establishment of salary, bonus and other compensation scales and executive and staff employee structure.

 

(k)                                 Advice and assistance relating to network infrastructure and information technology, including telephone and data transmission lines, voice mail, facsimile machines, cellular phones, pagers and computer support.

 

(l)                                     Market research support.

 

(m)                             Advice and assistance in the preparation, review and filing of all federal, state and other required tax returns and tax related matters.

 

(n)                                 Advice, assistance and oversight of the retention of consultants and other third party professionals on behalf of Sonesta.

 

(o)                                 So long as the corporate offices of Sonesta and RMR LLC are located in the same building, access to and use of RMR LLC’s conference rooms from time to time when available.

 

(p)                                 Such other services as Sonesta may from time to time reasonably request.

 

RMR LLC shall make its executive officers and other personnel available to Sonesta for the provision of Services.

 

Notwithstanding anything herein, it is understood and agreed that the duties of, and services to be provided by, RMR LLC pursuant to this Agreement shall not include (i) any investment management or related services with respect to any assets of Sonesta as Sonesta may wish to allocate from time to time to investments in “securities” (as defined in the Investment Advisers Act of 1940, as amended),  (ii) any services that would subject RMR LLC to registration with the Commodity Futures Trading Commission as a “commodity trading advisor” (as such term is defined in Section 1a(12) of the Commodity Exchange Act and in CFTC 

 

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Regulation 1.3(bb)(1)) or affirmatively require it to make any exemptive certifications or similar filings with respect to “commodity trading advisor” registration status or (iii) any services or the taking of any action that would render RMR LLC a “municipal advisor” as defined in Section 15B(e)(4) of the Securities Exchange Act of 1934, as amended.

 

2.                                      Performance of Services.

 

RMR LLC covenants that it will perform or cause to be performed the Services in a timely, efficient and workmanlike manner.  RMR LLC may retain third parties or its affiliates to provide certain of the Services hereunder.  In such cases, and notwithstanding anything herein to the contrary, Sonesta shall pay the fees and costs of such third parties and reimburse RMR LLC in accordance with Section 3(b) for RMR LLC’s actual out-of-pocket costs and expenses for arranging for such Services (including, without limitation, the fees and costs of such third parties paid by RMR LLC) to the extent Sonesta is not billed or does not pay directly.

 

3.                                      Fees and Costs.

 

(a)                                 Sonesta shall pay RMR LLC a fee for the Services provided to Sonesta under this Agreement (the “Fee”) equal to 0.6% of Revenues as hereinafter defined.  “Revenues” are the total revenues of Sonesta from all sources reportable under generally accepted accounting principles in the United States (“GAAP”) less any revenues reportable by Sonesta with respect to hotels for which Sonesta provides management services plus revenues of hotels managed by Sonesta (except to the extent such managed hotel revenues are included in Sonesta’s gross revenues under GAAP).  The Fee shall be estimated and paid monthly by Sonesta in advance based on the prior calendar month’s Revenues, and such payment shall be paid within fifteen (15) calendar days at the end of the applicable prior calendar month unless otherwise agreed.  The calculation of the Fee for any month shall be based upon Sonesta’s monthly financial statements and shall be in reasonable detail.  A copy of the computations shall promptly be delivered to RMR LLC accompanied by payment of the Fee thereon to be due and payable.  The Fee shall be prorated for any partial month this Agreement shall be in effect.  The aggregate annual Fee paid in any fiscal year shall be subject to adjustment as of the end of that fiscal year.  Within thirty (30) days after availability of Sonesta’s annual financial statements for each fiscal year, Sonesta shall deliver to RMR LLC a notice setting forth (a) the Revenues for such year, (ii) Sonesta’s computation of the Fee payable for such year and (iii) the amount of the Fee theretofore paid to RMR LLC in respect of such year.  If the annual Fee payable for said fiscal year exceeds the aggregate amounts previously paid with respect thereto by Sonesta, Sonesta shall pay the additional amount due RMR LLC at the time of delivery of such notice.  If the annual Fee payable for said fiscal year as shown in such notice is less than the aggregate amounts previously paid with respect thereto by Sonesta, Sonesta shall specify in such notice whether RMR LLC should (i) refund to Sonesta payment in an amount equal to such difference or (ii) grant Sonesta a credit against the Fee next coming due in the amount of such difference until such amount has been fully paid or otherwise discharged.

 

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(b)                                 Sonesta shall also reimburse RMR LLC for reasonable out-of-pocket expenses of RMR LLC employees incurred in their performance of the services and for reasonable third party expenses RMR LLC incurs on behalf of Sonesta that are not billed directly to Sonesta, in each case, within thirty (30) days after receipt of an invoice therefor.

 

4.                                      Term.

 

(a)                                 The initial term of this Agreement shall commence on the date hereof and shall expire on December 31, 2016 (the “Initial Term”) and shall be automatically renewed for successive one-year terms (each, a “Renewal Term”) upon the expiration of the Initial Term and each Renewal Term unless notice of non-renewal is given in writing by Sonesta or RMR LLC not less than thirty (30) calendar days before the expiration of the Initial Term or any Renewal Term.

 

(b)                                 In addition, either RMR LLC or Sonesta may terminate this Agreement at any time, for any reason or for no reason at all, without payment of a premium and penalty, by the giving of not less than thirty (30) days prior written notice thereof to the other.  In such event, this Agreement shall terminate on the date set forth in such notice and neither party shall have any further rights or obligations hereunder except to pay to the other any amounts due through the termination date and for any obligations which expressly survive such termination.

 

(c)                                  Upon the expiration or sooner termination of this Agreement, RMR LLC shall deliver to Sonesta all property and documents of Sonesta then in its custody or possession.  In addition, Sonesta shall pay to RMR LLC any amounts accrued and unpaid or unbilled pursuant to Section 2.

 

5.                                      Action Upon Termination.

 

(a)                                 From and after the effective date of any termination of this Agreement, RMR LLC shall be entitled to no compensation for the remainder of the then current term of this Agreement, but shall be paid, on a pro rata basis as set forth in this Section 5, all compensation due for services performed prior to the effective date of such termination.  Upon such termination, RMR LLC shall as promptly as practicable deliver to Sonesta all property and documents of Sonesta then in its custody or possession.

 

(b)                                 The Fee for any partial month prior to termination will be computed by multiplying the Fee which would have been earned for the full month by a fraction, the numerator of which is the number of days in the portion of such month during which this Agreement was in effect, and the denominator of which shall be 30.

 

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6.                                      Indemnification.

 

(a)                                 Sonesta shall indemnify, defend and hold RMR LLC, and its directors, officers, employees and agents harmless from and against any and all damages, claims, losses, expenses, costs, obligations and liabilities, including, without limitation, liabilities for all reasonable attorneys’, accountants’ and experts’ fees and expenses incurred (collectively, “Losses and Expenses”) or suffered by them by reason of or arising out of the course of performing the Services and any duties on behalf of Sonesta, except for matters covered by Section 6(b).

 

(b)                                 RMR LLC shall indemnify, defend and hold Sonesta and its subsidiaries and their respective directors, trustees, officers, employees and agents harmless from and against Losses and Expenses suffered by them by reason of or arising out of any willful bad faith or gross negligence in the performance of any obligation or agreement of RMR LLC herein.

 

7.                                      Co-Employment of Senior Executives.  The parties acknowledge and agree that certain senior executives of Sonesta may be employees of both Sonesta and RMR LLC.  Each party shall be solely responsible for payment of compensation to such senior executives for services rendered to or on behalf of such party.

 

8.                                      Code of Conduct, Etc.  In performing the Services, RMR LLC shall adhere to, and shall require its officers and employees in the course of providing the Services to adhere to, any code of conduct and ethics from time to time adopted by Sonesta.  In addition, RMR LLC shall make available to its officers and employees providing the Services any applicable procedures for complaints regarding accounting, internal accounting controls or auditing matters relating to Sonesta and for confidential anonymous submission by such officers and employees of concerns regarding questionable accounting or auditing matters relating to Sonesta.

 

9.                                      Arbitration.

 

(a)                                 Any disputes, claims or controversies arising out of or relating to this Agreement, the provision of services by RMR LLC pursuant to this Agreement or the transactions contemplated hereby, including any disputes, claims or controversies brought by or on behalf of Sonesta, Reit Management & Research Inc., a Maryland corporation (“Parent”), or RMR LLC or any holder of equity interests (which, for purposes of this Section 9, shall mean any holder of record or any beneficial owner of equity interests or any former holder of record or beneficial owner of equity interests) of Sonesta, Parent or RMR LLC, either on his, her or its own behalf, on behalf of Sonesta, Parent or RMR LLC or on behalf of any series or class of equity interests of Sonesta, Parent or RMR LLC or holders of any equity interests of Sonesta, Parent or RMR LLC against Sonesta, Parent or RMR LLC or any of their respective trustees, directors, members, officers, managers (including RMR LLC or its successor), agents or employees, including any disputes, claims or controversies relating to the meaning, interpretation, effect, validity, performance or enforcement of this Agreement, including 

 

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this arbitration agreement or the governing documents of Sonesta, Parent or RMR LLC (all of which are referred to as “Disputes”), or relating in any way to such a Dispute or Disputes shall, on the demand of any party to such Dispute or Disputes, be resolved through binding and final arbitration in accordance with the Commercial Arbitration Rules (the “Rules”) of the American Arbitration Association (“AAA”) then in effect, except as those Rules may be modified in this Section 9.  For the avoidance of doubt, and not as a limitation, Disputes are intended to include derivative actions against the trustees, directors, officers or managers of Sonesta, Parent or RMR LLC and class actions by a holder of equity interests against those individuals or entities and Sonesta, Parent or RMR LLC.  For the avoidance of doubt, a Dispute shall include a Dispute made derivatively on behalf of one party against another party.  For purposes of this Section 9, the term “equity interest” shall mean, (i) in respect of RMR LLC, “membership interest” in RMR LLC as defined in the Maryland Limited Liability Companies Act and (ii) in respect of Sonesta or Parent, shares of capital stock of Sonesta or Parent, respectively.

 

(b)                                 There shall be three (3) arbitrators. If there are only two (2) parties to the Dispute, each party shall select one (1) arbitrator within fifteen (15) days after receipt by respondent of a copy of the demand for arbitration.  The arbitrators may be affiliated or interested persons of the parties. If there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand, shall each select, by the vote of a majority of the claimants or the respondents, as the case may be, one (1) arbitrator within fifteen (15) days after receipt of the demand for arbitration.  The arbitrators may be affiliated or interested persons of the claimants or the respondents, as the case may be. If either a claimant (or all claimants) or a respondent (or all respondents) fail(s) to timely select an arbitrator then the party (or parties) who has selected an arbitrator may request AAA to provide a list of three (3) proposed arbitrators in accordance with the Rules (each of whom shall be neutral, impartial and unaffiliated with any party) and the party (or parties) that failed to timely appoint an arbitrator shall have ten (10) days from the date AAA provides the list to select one (1) of the three (3) arbitrators proposed by AAA. If the party (or parties) fail(s) to select the second (2nd) arbitrator by that time, the party (or parties) who have appointed the first (1st) arbitrator shall then have ten (10) days to select one (1) of the three (3) arbitrators proposed by AAA to be the second (2nd) arbitrator; and, if he/they should fail to select the  second (2nd) arbitrator by such time, AAA shall select, within fifteen (15) days thereafter, one (1) of the three (3) arbitrators it had proposed as the second (2nd) arbitrator. The two (2) arbitrators so appointed shall jointly appoint the third (3rd) and presiding arbitrator (who shall be neutral, impartial and unaffiliated with any party) within fifteen (15) days of the appointment of the second (2nd) arbitrator. If the third (3rd) arbitrator has not been appointed within the time limit specified herein, then AAA shall provide a list of proposed arbitrators in accordance with the Rules, and the arbitrator shall be appointed by AAA in accordance with a listing, striking and ranking procedure, with each party having a limited number of strikes, excluding strikes for cause.

 

(c)                                  The place of arbitration shall be Boston, Massachusetts unless otherwise agreed by the parties.

 

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(d)                                 There shall be only limited documentary discovery of documents directly related to the issues in dispute, as may be ordered by the arbitrators.  For the avoidance of doubt, it is intended that there shall be no depositions and no other discovery other than limited documentary discovery as described in the preceding sentence.

 

(e)                                  In rendering an award or decision (the “Award”), the arbitrators shall be required to follow the laws of the State of Maryland.  Any arbitration proceedings or award rendered hereunder and the validity, effect and interpretation of this arbitration agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §1 et seq.  The Award shall be in writing and shall state the findings of fact and conclusions of law on which it is based.  Any monetary award shall be made and payable in U.S. dollars free of any tax, deduction or offset.  Subject to Section 9(g), each party against which the Award assesses a monetary obligation shall pay that obligation on or before the thirtieth (30th) day following the date of the Award or such other date as the Award may provide.

 

(f)                                   Except to the extent expressly provided by this Agreement or as otherwise agreed by the parties thereto, each party involved in a Dispute shall bear its own costs and expenses (including attorneys’ fees), and the arbitrators shall not render an award that would include shifting of any such costs or expenses (including attorneys’ fees) or, in a derivative case or class action, award any portion of Sonesta’s, Parent’s or RMR LLC’s, as applicable, award to the claimant or the claimant’s attorneys.  Each party (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand, respectively) shall bear the costs and expenses of its (or their) selected arbitrator and the parties (or, if there are more than two (2) parties to the Dispute, all claimants, on the one hand, and all respondents, on the other hand) shall equally bear the costs and expenses of the third (3rd) appointed arbitrator.

 

(g)                                  Notwithstanding any language to the contrary in this Agreement, the Award, including but not limited to, any interim Award, may be appealed pursuant to the AAA’s Optional Appellate Arbitration Rules (“Appellate Rules”). The Award shall not be considered final until after the time for filing the notice of appeal pursuant to the Appellate Rules has expired. Appeals must be initiated within thirty (30) days of receipt of the Award by filing a notice of appeal with any AAA office. Following the appeal process, the decision rendered by the appeal tribunal may be entered in any court having jurisdiction thereof.  For the avoidance of doubt, and despite any contrary provision of the Appellate Rules, Section 9(f) hereof shall apply to any appeal pursuant to this Section and the appeal tribunal shall not render an award that would include shifting of any costs or expenses (including attorneys’ fees) of any party.

 

(h)                                 Following the expiration of the time for filing the notice of appeal, or the conclusion of the appeal process set forth in Section 9(g), the Award shall be final and binding upon the parties thereto and shall be the sole and exclusive remedy between those parties relating to the Dispute, including any claims, counterclaims, issues or accounting presented to the arbitrators.  Judgment upon the Award may be entered in any court 

 

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having jurisdiction.  To the fullest extent permitted by law, no application or appeal to any court of competent jurisdiction may be made in connection with any question of law arising in the course of arbitration or with respect to any award made except for actions relating to enforcement of this agreement to arbitrate or any arbitral award issued hereunder and except for actions seeking interim or other provisional relief in aid of arbitration proceedings in any court of competent jurisdiction.

 

(i)                                     This Section 9 is intended to benefit and be enforceable by Sonesta, RMR LLC, Parent and their respective holders of equity interests, trustees, directors, officers, managers (including RMR LLC or its successor), agents or employees, and their respective successors and assigns and shall be binding upon Sonesta, RMR LLC, Parent and their respective holders of equity interests, and be in addition to, and not in substitution for, any other rights to indemnification or contribution that such individuals or entities may have by contract or otherwise.

 

10.                               Notices.

 

(a)                                 Any and all notices, demands, consents, approvals, offers, elections and other communications required or permitted under this Agreement shall be deemed adequately given if in writing and the same shall be delivered either in hand, or by mail or Federal Express or similar expedited commercial carrier, addressed to the recipient of the notice, postpaid and registered or certified with return receipt requested (if by mail), or with all freight charges prepaid (if by Federal Express or similar carrier).

 

(b)                                 All notices required or permitted to be sent hereunder shall be deemed to have been given for all purposes of this Agreement upon the date of receipt or refusal.

 

(c)                                  All such notices shall be addressed:

 

If to Sonesta, to:

 

Two Newton Place

255 Washington Street

Newton, Massachusetts 02458

Attn:  President

 

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If to RMR LLC, to:

 

Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458

Attn:  President

 

(d)                                 By notice given as herein provided, the parties hereto and their respective successors and assigns shall have the right from time to time and at any time during the term of this Agreement to change their respective addresses effective upon receipt by the other parties of such notice and each shall have the right to specify as its address up to two other addresses within the United States of America.

 

11.                               Entire Agreement.  This Agreement constitutes and sets forth the entire agreement and understanding of the parties pertaining to the subject matter hereof, and no prior or contemporaneous written or oral agreements, understandings, undertakings, negotiations, promises, discussions, warranties or covenants not specifically referred to or contained herein or attached hereto shall be valid and enforceable.  No supplement, modification, termination in whole or in part, or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby.  No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision hereof (whether or not similar), nor shall any such waiver constitute a continuing waiver unless otherwise expressly provided.

 

12.                               Binding Effect.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, each of their respective successors and permitted assigns.

 

13.                               Severability.  If any provision of this Agreement shall be held invalid by a court or arbitration panel with jurisdiction over the parties to this Agreement, then and in that event such provision shall be deleted from the Agreement, which shall then be construed to give effect to the remaining provisions thereof.  If any one or more of the provisions contained in this Agreement or in any other instrument referred to herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then in that event, to the maximum extent permitted by law, such invalidity, illegality or enforceability shall not affect any other provisions of this Agreement or any other such instrument.

 

14.                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall be considered one and the same instrument.

 

15.                               Amendments.  The Agreement shall not be amended, changed, modified, terminated, or discharged in whole or in part except by an instrument in writing signed by each of the parties hereto, or by their respective successors or assigns, or otherwise as provided herein.

 

16.                               Assignment.  Neither party may assign this Agreement or its rights hereunder or delegate its duties hereunder without the written consent of the other party, except that RMR LLC may assign this Agreement to any subsidiary of Parent so long as such subsidiary is then 

 

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and remains controlled by Parent and Sonesta may assign this Agreement to any person controlling or under common control with Sonesta.

 

17.                               No Partnership or Joint Venture.  The parties are not partners or joint venturers with each other and neither the terms of this Agreement nor the fact that Sonesta has common employees shall be construed so as to make them partners or joint venturers or impose any liability on either of them as partners or joint venturers.

 

18.                               Captions.  The headings and titles of the various paragraphs of this Agreement are inserted merely for the purpose of convenience, and do not expressly or by implication limit, define, extend or affect the meaning or interpretation of this Agreement or the specific terms or text of the paragraph so designated.

 

19.                               Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of Maryland.

 

20.                               Equal Employment Opportunity Employers.  RMR LLC and Sonesta are equal employment opportunity employers and comply with all applicable state and federal laws to provide a work environment free from discrimination and without regard to race, color, sex, sexual orientation, national origin, ancestry, religion, creed, physical or mental disability, age, marital status, veteran’s status or any other basis protected by applicable laws.

 

[Signature Page to Follow.]

 

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

 

	
 
    	
SONESTA   INTERNATIONAL HOTELS CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carlos Flores
    
	
 
    	
 
    	
Carlos Flores
    
	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
REIT MANAGEMENT &   RESEARCH LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adam D. Portnoy
    
	
 
    	
 
    	
Adam D. Portnoy
    
	
 
    	
 
    	
President and CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SOLELY IN   RESPECT OF
    	
 
    	
 
    
	
SECTION 9,   PARENT:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
REIT MANAGEMENT &   RESEARCH INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew P. Jordan
    
	
 
    	
 
    	
Matthew P. Jordan
    
	
 
    	
 
    	
Treasurer and Chief   Financial Officer
    

 

[Signature Page to Sonesta Business Management Agreement]

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