Document:

Exhibit
10.5

 

AGREEMENT

 

THIS
AGREEMENT (this
“Agreement”) is made as of this 12th day of September, 2005,
between Heritage Property Investment Trust, Inc., a corporation organized
under the State of Maryland and having its principal place of business at 131
Dartmouth Street, Boston, Massachusetts 02116 (the “Company”), and David
C. Sweetser of Wellesley, Massachusetts (the “Executive”).

 

RECITALS

 

WHEREAS, the Company and Executive have
previously entered into a Severance Agreement, dated as of February 6,
2004 (the “Severance  Agreement”), pursuant to which the Company
has agreed to provide Executive certain severance benefits in the event his
employment with the Company is terminated, including subsequent to a “Change of
Control” of the Company, as set forth in the Severance Agreement; and

 

WHEREAS, the Company wishes to amend the
Severance Agreement as described herein;

 

NOW,
THEREFORE, in
consideration of the mutual premises set forth below and for other good and
valuable consideration, the parties hereto agree as follows:

 

1.             Amendment to Section 5 of Severance Agreement

 

Section 5 of the
Severance Agreement is hereby amended by deleting such section in its
entirety and inserting the following new Section 5 in place thereof:

 

“5.           SEVERANCE/COVERED TERMINATION FOLLOWING CHANGE OF
CONTROL

 

In the event that a
Covered Termination occurs during the term of this Agreement, including during
a period of two (2) years following the consummation of a Change of
Control, the Executive shall be entitled to receive, and the Company shall pay
the Executive as severance an amount determined by multiplying two (2) times
the sum of:

 

(a)           the Executive’s Annual Base Salary as in
effect immediately prior to the Date of Termination; and

 

(b)           the Executive’s Bonus Amount as of the
Date of Termination.”

 

2.             Except
as herein provided, all of the terms and provisions of the Employment Agreement
shall remain unmodified and in full force and effect.

 

[Signature Page Follows]

 

 

IN WITNESS
WHEREOF, and
intending to be legally bound hereby, the parties hereto have caused this
Agreement to be duly executed under seal as of the date first above written.

 

 

	
  HERITAGE PROPERTY

  INVESTMENT TRUST, INC.

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/Thomas C. Prendergast

  	
   

  	
  /s/David Sweetser

  	
   

  
	
  Title: 

  	
   President and CEO

  	
   

  	
   

  
						

 

2Exhibit 10.6

 

AGREEMENT

 

THIS
AGREEMENT (this
“Agreement”) is made as of this 12th day of September, 2005,
between Heritage Property Investment Trust, Inc., a corporation organized
under the State of Maryland and having its principal place of business at 131
Dartmouth Street, Boston, Massachusetts 02116 (the “Company”), and Louis
Zicht of Boston, Massachusetts (the “Executive”).

 

RECITALS

 

WHEREAS, the Company and Executive have
previously entered into a Severance Agreement, dated as of February 2,
2004 (the “Severance  Agreement”), pursuant to which the Company
has agreed to provide Executive certain severance benefits in the event his
employment with the Company is terminated, including subsequent to a “Change of
Control” of the Company, as set forth in the Severance Agreement; and

 

WHEREAS, the Company wishes to amend the
Severance Agreement as described herein;

 

NOW,
THEREFORE, in
consideration of the mutual premises set forth below and for other good and
valuable consideration, the parties hereto agree as follows:

 

1.             Amendment to Section 5 of Severance Agreement

 

Section 5 of the
Severance Agreement is hereby amended by deleting such section in its
entirety and inserting the following new Section 5 in place thereof:

 

“5.           SEVERANCE/COVERED TERMINATION FOLLOWING CHANGE OF
CONTROL

 

In the event that a
Covered Termination occurs during the term of this Agreement, including during
a period of two (2) years following the consummation of a Change of
Control, the Executive shall be entitled to receive, and the Company shall pay
the Executive as severance an amount determined by multiplying two (2) times
the sum of:

 

(a)           the Executive’s Annual Base Salary as
in effect immediately prior to the Date of Termination; and

 

(b)           the Executive’s Bonus Amount as of the
Date of Termination.”

 

2.             Except
as herein provided, all of the terms and provisions of the Employment Agreement
shall remain unmodified and in full force and effect.

 

[Signature Page Follows]

 

 

IN WITNESS
WHEREOF, and
intending to be legally bound hereby, the parties hereto have caused this
Agreement to be duly executed under seal as of the date first above written.

 

 

	
  HERITAGE PROPERTY

  INVESTMENT TRUST, INC.

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/Thomas C. Prendergast

  	
   

  	
  /s/Louis Zicht

  	
   

  
	
  Title: 

  	
   President and CEO

  	
   

  	
   

  
						

 

2Exhibit 10.1

 

Execution Version

 

AMENDMENT TO LOAN
AGREEMENT

 

THIS AMENDMENT TO
LOAN AGREEMENT (this “Amendment”), dated as of September 12, 2005, is
made by and among ARC III, L.L.C. (“ARC”), a Delaware limited liability
company, ARC Silver Leaf LP (“Silver Leaf”), a Delaware limited
partnership, and ARC Meadow Glen LP (“Meadow Glen”; and collectively,
with ARC and Silver Leaf, the “Borrower”), a Delaware limited
partnership, and CITIGROUP GLOBAL MARKETS REALTY CORP., a New York corporation,
both as collateral agent (in such capacity, the “Collateral Agent”) and
lender (in such capacity, the “Lender”).

 

R E C I T A L S:

 

ARC, Lender and
Collateral Agent are parties to a Loan Agreement, dated as of September 23,
2004, as modified by that certain Joinder, Modification and Reaffirmation
Agreement, dated as of November 1, 2004 among ARC, Silver Leaf, Meadow Glen,
Affordable Residential Communities LP, a Delaware limited partnership, and
Lender (as so modified, the “Original Loan Agreement”; as amended hereby
and as it may hereafter be amended, supplemented or otherwise modified, the “Loan
Agreement”), pursuant to which Lender agreed, subject to the terms and
conditions set forth in the Original Loan Agreement, to make a loan the (“Original
Loan”) to Borrower as provided in the Original Loan Agreement. Terms used
but not defined herein shall have the respective meanings ascribed to such
terms in the Original Loan Agreement, as amended hereby.

 

NOW, THEREFORE, in
consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows, effective as of the date hereof:

 

Section 1.       Commitment Fee.   On
the date hereof, Borrower shall pay to Lender a Commitment Fee in the amount of
$425,000, in connection with, and as a condition to the effectiveness of, this
Amendment.

 

Section 2.       Advance Fee.   On
the date hereof, Borrower shall pay to Lender an Advance Fee in the amount of
$292,820.31, in connection with, and as a condition to the effectiveness of,
this Amendment. Borrower and Lender acknowledge that such Advance Fee
constitutes the “initial Advance Fee” referenced in the amended and restated
definition of “Advance Fee” in Section 3.1 below.

 

Section 3.       Revised Definitions.

 

3.1           Effective as of the
date hereof, the definition of the term “Advance Fee” in the Original Loan
Agreement shall be amended and restated to read as follows:

 

““Advance Fee” means an amount equal to 0.5% of the principal
amount of each Advance, payable on each related Advance Date; provided, that,
other than the initial Advance Fee paid to Lender with respect to the first
$58,764,061 funded, Advance Fees shall only be due

 

 

in connection with Advances after which the then outstanding Principal
Indebtedness exceeds the highest previously outstanding Principal
Indebtedness.”

 

3.2           Effective as of the
date hereof, the definition of the term “Exit Fee” in the Original Loan
Agreement shall be amended and restated to read as follows:

 

““Exit Fee” means 0.375% of the maximum Principal Indebtedness
that has been outstanding during the term of the Loan.”

 

3.3           Effective as of the
date hereof, the definition of the term “Maturity Date” in the Original Loan
Agreement shall be amended and restated to read as follows:

 

““Maturity Date” means the earlier of (a) the Payment Date in
September, 2006 or (b) such earlier date on which he entire Loan is required to
be paid in full, by acceleration or otherwise, under this Agreement or any of
the other Loan Documents.”

 

Section 4.       Interest Rate.   Section
2.5(b) of the Original Loan Agreement is amended to delete “2.95%” and to insert
“2.75%” in its place.

 

Section 5.       Minimum
Advance Amount.   Section 2.1(a)(ii) of the Original Loan
Agreement is amended to delete “$5,000,000” and to insert “$2,000,000” in its
place.

 

Section 6.       Non-Usage Fee.

 

6.1           The Original Loan
Agreement is amended to add a new Section 2.17 as follows:

 

““Section 2.17.  Non-Usage Fee.   Borrower
shall be required to pay to Lender on each Payment Date a fee (the “Non-Usage
Fee”) equal to the product of (i) 0.10% per annum multiplied by (ii) the
Undrawn Balance for the prior calendar month. The “Undrawn Balance” shall mean,
with respect to any calendar month, the difference between (x) the maximum
Principal Indebtedness that has been outstanding during the term of the Loan
and (y) the minimum Principal Indebtedness outstanding during such calendar
month.”

 

6.2           Section 2.12(b) of
the Original Loan Agreement is amended to insert the following clause after clause
2.12(b)(i):

 

“(ii)  second, to the payment to Lender of any
Non-Usage Fee owing with respect to the previous calendar month;”

 

Furthermore, existing clauses (ii), (iii), (iv), (v), (vi), (vii) and
(viii) of Section 2.12(b) of the Original Loan Agreement shall be renumbered
and otherwise amended to reflect the insertion of new clause (ii).

 

Section 7.       Hedge
Agreement.   Lender hereby agrees to permit Borrower, upon
the expiration of the Hedge Agreement, to enter into a new interest rate hedge
agreement on substantially similar terms to the Hedge Agreement. Lender and
Borrower herby acknowledge that, should a new interest rate hedge agreement be
executed in accordance with this Section, the

 

2

 

Loan Agreement and the other Loan Documents shall be amended
(including, without limitation, to revise the definition of “Maximum LTV” in
the Loan Agreement) and/or new Loan Documents shall be executed, to the extent
necessary to reflect the fact that such new interest rate hedge agreement has
replaced the Hedge Agreement.

 

Section 8.       Loan Document
Modifications.

 

8.1           Borrower shall,
within ten (10) Business Days following Lender’s written request, execute and
deliver to Lender such documents, instruments, certificates, assignments and
other writings, and do such other acts necessary, to evidence, preserve and/or
protect the Collateral (and/or Collateral Agent’s security interest therein) at
any time securing or intended to secure the Note, as Lender may reasonably
require (including, without limitation, amendments or modifications to the
Mortgages, UCC financing statements or Collateral Security Instruments and a
satisfactory date-down of the Title Insurance Policy).

 

Section 9.       Expenses.

 

9.1           Borrower hereby
acknowledges and agrees that it shall be responsible for the payment of any
out-of-pocket costs, fees and expenses of the Lender incurred in connection
with the preparation, negotiation, execution or delivery of this Amendment
(including, without limitation, the reasonable fees and disbursements of
Lender’s counsel).

 

Section 10.     Covenants,
Representations and Warranties.

 

10.1         Borrower hereby
remakes all of the representations and warranties contained in the Loan
Documents, as amended hereby, as of the date hereof.

 

10.2         Borrower hereby
reaffirms all terms and covenants made in the Loan Documents as amended hereby
or pursuant hereto.

 

10.3         Borrower hereby
represents and warrants to Lender that (a) this Amendment and the Loan
Agreement as modified by this Amendment, constitute the legal, valid and
binding obligation of Borrower, enforceable against Borrower in accordance with
their terms, and (b) the execution and delivery by Borrower of this Amendment
has been duly authorized by all requisite action on the part of Borrower and
will not violate any provision of the organizational documents of Borrower.

 

10.4         Borrower hereby
represents and warrants to Lender that, as of the date hereof, (a) to
Borrower’s knowledge, no Event of Default has occurred and is continuing, and
no other Event of Default will occur as a result of the execution, delivery and
performance by Borrower of this Amendment and (b) Borrower does not have has
any offsets, defenses, counterclaims, set offs, or similar rights with respect
to its obligations of payment and performance under the Loan Documents.

 

Section 11.     Effect Upon
Loan Documents.

 

11.1         Except as
specifically set forth herein, the Loan Documents shall remain in full force
and effect and are hereby ratified and confirmed. The provisions of this
Amendment

 

3

 

shall be subject to the provisions of Section 9.24 of the Loan
Agreement, which provisions are incorporated by reference as if herein set
forth in full. All references to the “Loan Agreement” in the Loan Documents
shall mean and refer to the Loan Agreement as modified and amended hereby.

 

11.2         The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of
any right, power or remedy of Lender under the Loan Documents, or any other
document, instrument or agreement executed and/or delivered in connection
therewith.

 

Section 12.     Governing Law.   THIS
AMENDMENT SHALL BE CONSTRUED, INTERPRETED AND GOVERNED BY THE LAW OF THE STATE
OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PRINCIPLES.

 

Section 13.     Counterparts.   This
Amendment may be executed in any number of counterparts, and all such
counterparts shall together constitute the same agreement.

 

[REST OF PAGE
INTENTIONALLY LEFT BLACK]

 

4

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the day and year first above written.

 

	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIGROUP GLOBAL MARKETS REALTY

  
	
   

  	
  CORP., a New York corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Vadon

  
	
   

  	
   

  	
  Name:

  	
  David Vadon

  
	
   

  	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  ARC III, L.L.C., a Delaware limited liability

  company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott L. Gesell

  
	
   

  	
   

  	
  Name:

  	
  Scott L. Gesell

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Loan Agreement Amendment
Signature Page

 

 

	
   

  	
  ARC SILVER LEAF LP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ARC3GP LLC,

  
	
   

  	
   

  	
  a Delaware limited liability company,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott L. Gesell

  
	
   

  	
   

  	
  Name:

  	
  Scott L. Gesell

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ARC MEADOW GLEN LP, a Delaware limited

  partnership

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ARC3GP LLC,

  
	
   

  	
   

  	
  a Delaware limited liability company,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott L. Gesell

  
	
   

  	
   

  	
  Name:

  	
  Scott L. Gesell

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  

 

Loan Agreement Amendment
Signature Page

 

 

	
   

  	
  COLLATERAL AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIGROUP GLOBAL MARKETS REALTY

  
	
   

  	
  CORP., a New York corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Vadon

  
	
   

  	
   

  	
  Name:

  	
  David Vadon

  
	
   

  	
   

  	
  Title:

  	
  Authorized Agent

  
					

 

Loan Agreement Amendment
Signature Page

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]