Document:

ex10_1.htm

Exhibit 10.1 

 

 

AMENDMENT TO LOAN AGREEMENT

AND REAFFIRMATION OF LOAN DOCUMENTS

 

THIS AMENDMENT TO LOAN AGREEMENT AND REAFFIRMATION OF LOAN DOCUMENTS (this “Amendment”) is made and entered into as of August 4, 2009, by and among MAGUIRE PARTNERS-PLAZA LAS FUENTES, LLC,
a Delaware limited liability company (“Borrower”); EUROHYPO AG, NEW YORK BRANCH, as a Lender (in such capacity, “Eurohypo”), WELLS FARGO BANK, N.A., as a Lender (“Wells
Fargo”); EUROHYPO AG, NEW YORK BRANCH, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”); and WELLS FARGO BANK, N.A., as Syndication Agent (“Syndication
Agent”).  Each of the parties identified above as a Lender, together with any other party who becomes a lender party to the Loan Agreement (as defined below) after the date hereof pursuant to Section 12.24(2) of the Loan Agreement, are sometimes referred to herein individually as a “Lender” and collectively as the “Lenders”.  All
capitalized terms used but not defined herein shall have the meanings set forth in Loan Agreement, as modified hereby.

 

 

R E C I T A L S :

 

A.           Borrower, the Administrative Agent, Syndication Agent, Eurohypo and Wells Fargo entered into that certain Loan Agreement, dated as of September 29, 2008 (the “Loan Agreement”).  Subsequent
thereto, pursuant to various Assignments and Acceptances, AIB Debt Management Limited acquired its interest as a Lender under the Loan Agreement.

 

B.           In connection with the Loan Agreement, Maguire Properties, L.P., a Maryland limited partnership (“Guarantor”), executed and delivered that certain Recourse Guaranty (the “Recourse
Guaranty”) and that certain Lease Reserve and Interest Carry Guaranty (the “Lease Reserve/Interest Guaranty”), each dated as of September 29, 2008, in favor of the Administrative Agent and the Lenders.

 

C.           The parties hereto desire to enter into this Amendment in order to set forth certain modifications to the Loan Agreement and Loan Documents, and to provide for the delivery of certain modifications to the Recourse Guaranty, the Lease Reserve/Interest Guaranty, the Mortgage,
and the Borrower Cash Management Agreement, all upon the satisfaction of the conditions set forth herein.  The Lenders party hereto are all of the Lenders from whom consents for the modifications provided for herein are required to be obtained pursuant to Section 12.2 of the Loan Agreement.

 

A G R E E M E N T

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants, conditions and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, Administrative Agent, Syndication Agent and Lenders party hereto agree as follows:

 

  

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1.           Conditions to the Modification Effectiveness Time.  The effectiveness of Lenders' obligations under this Amendment and the modifications to the Loan Agreement,
the Recourse Guaranty and the Lease Reserve/Interest Guaranty provided for herein shall be subject to the satisfaction of the conditions precedent set forth herein, in each case to the satisfaction of the Administrative Agent.  The time as of which all such conditions have been satisfied is referred to herein as the “Modification Effectiveness Time.”  The conditions which must be satisfied to the
satisfaction of the Administrative Agent prior to the Modification Effectiveness Time are as follows: 

 

(a)           Deposit of Loan Modification Documents and Other Items.  Borrower and the other Borrower Parties identified below shall have executed and delivered to the Administrative Agent this Amendment and
the following amendments to or supplements of the Loan Documents:

 

(i)           Agreement Supplementing Deed of Trust.  An Agreement Supplementing Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, substantially in the form of Attachment
A attached hereto, executed by Borrower and in form for recording (the “Agreement Supplementing Deed of Trust”);

 

(ii)           Guarantor Documents.  A Modification and Reaffirmation of Guarantor Documents with respect to the Recourse Guaranty, the Lease Reserve/Interest Guaranty and Guarantor’s obligations under
the Environmental Indemnity, substantially in the form of Attachment B attached hereto, executed by Guarantor (the “Guarantor Modification and Reaffirmation Agreement”);

 

(iii)           Operating Lessee’s Consent.  The consent and reaffirmation from the Operating Lessee in the form of Attachment C attached
hereto, executed by the Operating Lessee; and

 

(iv)           Amendment to Cash Management Agreement.  An Amendment to Cash Management Agreement (Borrower) executed by Borrower, the Property Manager and the Depository Bank in the form of Attachment
D attached hereto.

 

(b)           Principal Prepayment.  In accordance with the provisions of Section 2(g) below, Borrower shall have paid to the Administrative Agent
for distribution to the Lenders, a principal prepayment in the amount of Four Million Dollars ($4,000,000), in immediately available funds.  No prepayment premium shall be applicable to such principal prepayment.

 

(c)           Covenant Compliance Certificate.  Guarantor shall have delivered a certificate executed by an Authorized Officer of Guarantor certifying that, as of June 30, 2009 and as of the Modification Effectiveness
Time, Guarantor is in compliance with the covenants set forth in Section 3.04 of each of the Recourse Guaranty and the Lease Reserve/Interest Guaranty, as modified by the Guarantor Modification and Reaffirmation Agreement.

 

(d)           Title Insurance; Priority; Recordation.

 

(i)           Title Endorsements.  The title insurance company which insured the Mortgage shall have recorded or be irrevocably and unconditionally committed to record the 

 

  

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Agreement Supplementing Deed of Trust described above, and shall have issued such endorsements (including without limitation a CLTA Endorsement No. 110.5, without deletion or exception other than as approved by Administrative Agent) to the title insurance policy that insures the Mortgage to the effect that the validity and priority of the
Mortgage insured thereunder have not been and will not be impaired by this Amendment or the transactions contemplated by it, and confirming the priority of the Mortgage, as supplemented by the Agreement Supplementing Deed of Trust, over all matters other than Permitted Encumbrances (including, without limitation, over all mechanics’ and materialmen’s liens) and such other endorsements to such title insurance policy as may be deemed reasonably necessary by the Administrative Agent, in such form as
may be reasonably acceptable to the Administrative Agent; and

 

(ii)           Costs and Expenses for Title Coverage.  Borrower shall have paid, or shall have made other arrangements acceptable to the Title Company to pay, to the title insurance company all expenses and
premiums of the title insurance company in connection with the issuance of such endorsements and all recording and filing fees payable in connection with recording the Agreement Supplementing Deed of Trust.

 

(e)           Legal Opinions.  The Administrative Agent shall have received favorable written opinions, dated as of the Modification Effectiveness Time, of counsel to Borrower and the Guarantor with respect
to this Amendment and the other documents to be delivered pursuant hereto, as reasonably required by Administrative Agent and in such forms as may be deemed satisfactory by the Administrative Agent.

 

(f)           Organizational Documents; Resolutions and Authorizations.  The Administrative Agent shall have received the following documents with respect to Borrower and the other Borrower Parties identified
below, in each case as constituted upon and after giving effect to the Modification Effectiveness Time:

 

(i)           Certificates of Incorporation, Certificates of Formation, Certificates of Limited Partnership, similar formation documents and all other Organizational Documents for Borrower and each of the other parties as to whom such documentation was delivered to the Administrative
Agent in connection with the original closing of the Loans, certified by the Secretary of State of the state of formation of such Person as of a recent date, or, to the extent such documentation has not been modified since the original closing of the Loans, a certificate to such effect from Borrower;

 

(ii)           The applicable resolutions and authorizations of Borrower and each of the other parties as to whom resolutions and authorizations were delivered to the Administrative Agent in connection with the original closing of the Loans, authorizing the execution and delivery
of this Amendment and the other documents to be delivered pursuant hereto, in each case certified by an Authorized Officer on behalf of such party as of the Modification Effectiveness Time as being accurate and complete, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel, or, to the extent such documentation has not been modified since the original closing of the Loans, a certificate to such effect from Borrower;

 

  

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(iii)           Certificates signed by an Authorized Officer on behalf of the applicable Person certifying the name, incumbency and signature of one or more individuals authorized to execute this Amendment and the other documents to be delivered pursuant hereto,
on which the Administrative Agent and the Lenders may rely; and 

 

(iv)           Good standing certificates with respect to Borrower and each of the other parties as to whom such certificates were delivered to the Administrative Agent in connection with the original closing of the Loans, dated as of a current date.

 

(g)           Representations and Warranties.  As of the Modification Effectiveness Time, all of the representations and warranties in the Loan Documents of Borrower, Guarantor and the other Borrower Parties
(except that, the representations and warranties of Borrower and each Borrower Party with respect to financial statements set forth in Section 7.3 of the Loan Agreement shall refer to the most recent financial statements of Borrower and each Borrower Party delivered to Administrative Agent) shall be true and correct, after giving effect to the modifications intended to become effective as of the Modification Effectiveness Time.

 

(h)           No Events of Default.  As of the Modification Effectiveness Time, after giving effect to the modifications provided for in this Amendment, no Event of Default or Potential Default shall exist.

 

(i)           Fees and Expenses.  Borrower shall have paid any costs, fees and expenses due to the Administrative Agent or Syndication Agent pursuant to Section 12.5 of
the Loan Agreement with respect to the modifications provided for in this Amendment and the other documents to be delivered pursuant hereto or otherwise incurred pursuant to Section 12.5 prior hereto, it being understood that all costs, fees and expenses incurred by the Administrative Agent or Syndication Agent in connection with this Amendment and the other documents to be delivered pursuant hereto are costs, fees and expenses for which Borrower
is obligated to reimburse the Administrative Agent or Syndication Agent, respectively, pursuant to Section 12.5 of the Loan Agreement.

 

Notwithstanding anything to the contrary set forth herein, this Amendment shall be null and void and of no further force or effect unless the Modification Effectiveness Time shall occur on or prior to the close of business, California time, on August 4, 2009.

 

2.           Loan Modifications.  Upon the Modification Effectiveness Time, the Loan Agreement and the other Loan Documents shall be modified as follows:

 

(a)           The following additional defined terms are hereby added to the Loan Agreement:

 

“Accelerated Principal Pay-Down Period” means the period commencing on the Modification Effectiveness Time and ending on the date on which the aggregate principal prepayments made pursuant to Section 1(b) of
the Modification Agreement and Section 3.3(a)(xi)(i) of the Cash Management Agreement equal Seven Million Dollars ($7,000,000).

 

“Guarantor Modification and Reaffirmation Agreement” means that certain Modification and Reaffirmation of Guarantor Documents, dated as of August 4, 2009 

 

  

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executed and delivered by Guarantor to the Administrative Agent for the benefit of the Lenders.

 

(b)           The definition of “Loan Documents” set forth in Section 1.1(148) of the Loan Agreement is hereby modified by
adding the following sentence at the end thereof:

 

The Modification Agreement and each of the modifications to the Loan Documents delivered pursuant thereto are each ‘Loan Documents.’

 

(c)           The following defined terms are hereby added to the Loan Agreement:

 

“Modification Agreement” means that certain Amendment to Loan Agreement and Reaffirmation of Loan Documents, dated as of August 4, 2009, entered into among Borrower, the Administrative Agent and the Lenders.

 

“Modification Effectiveness Time” has the meaning assigned to such term in the Modification Agreement.

 

(d)           Section 2.4(2)(a) of the Loan Agreement is hereby modified by adding thereto the following sentences at the end of such Section:

 

On each Payment Date after the Modification Effectiveness Time, commencing August 9, 2009, and until the Accelerated Principal Pay-Down Period ends, the sums that are required to be deposited in the Debt Service Reserve Account pursuant to Section 3.3(a)(xi)(i) of the Borrower
Cash Management Agreement shall be applied (in accordance with Section 2(g) of the Modification Agreement) as a principal prepayment, without prepayment premium.  In addition, on the First Payment Date after the Accelerated Principal Pay-Down Period ends, and on each Payment Date thereafter, the monthly principal reduction payment required to be made pursuant to the first sentence of this Section
2.4(2)(a) shall be increased to Two Hundred Thousand Dollars ($200,000).

 

(e)           Section 4.5(1) of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

Deposits.  During any Low DSCR Trigger Period which exists or occurs after the Accelerated Principal Pay-Down Period ends, Borrower shall cause all funds remaining in the Borrower Cash Management Account (after giving effect to deposits required pursuant to Sections
3.3(a)(i) through (ix) and Section 3.3(a)(xi)(i) of the Borrower Cash Management Agreement) (“Excess Cash”) to be paid each month directly to Administrative Agent for deposit in the Sweep Account as additional collateral for the Loans.  Amounts so deposited shall hereinafter
be collectively referred to as the “Low DSCR Reserve Fund”.

 

(f)            From and after the Modification Effectiveness Time, all references in the Loan Documents to the “Loan Agreement,” the “Loan Documents”
or to any Loan Document (whether by reference to a “Loan Document” or to the specific document name or defined term for a document included within the meaning of “Loan Document”) shall be deemed to refer to the Loan Agreement, the Loan Documents and such Loan Document, as applicable, as amended, modified and supplemented hereby and by the documents executed in connection with this Amendment.

 

(g)           It is understood and agreed that, as a material inducement to the Administrative Agent, Syndication Agent and Lenders to agree to the modifications of the Loan 

 

  

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Agreement and the Loan Documents that are provided for herein, Borrower has elected to make the principal prepayment provided for in Section 1(b) of this Amendment, as well as the principal prepayments that will result from the application of the provisions of Section
3.3(a)(xi)(i) of the Borrower Cash Management Agreement and that are required under the provisions of Section 2.4.2(a) of the Loan Agreement, each as modified hereby.  Borrower hereby confirms that each of principal prepayments made pursuant to the foregoing provisions are and shall be principal prepayments which the Borrower has elected to make, and Borrower’s election to make such principal prepayments is and shall be absolute,
unconditional and irrevocable; and Borrower hereby absolutely and unconditionally waives any right to rescind, revoke, alter or modify each such election.  The Lenders agree that no prepayment premium shall apply to, nor shall any requirement for prior notice of such prepayments be applicable to, any of such principal prepayments.

 

3.           Reaffirmation and Waiver.

 

(a)           Borrower hereby (i) reaffirms, ratifies, confirms, and acknowledges its obligations under the Notes, the Loan Agreement, and all the other Loan Documents, and agrees to continue to be bound thereby and perform thereunder, (ii) agrees and acknowledges that all
such Loan Documents and all of Borrower’s obligations thereunder are and remain in full force and effect and, except as expressly provided herein, have not been modified.  Except as expressly provided herein, nothing in this Amendment shall alter or affect any provision, condition, or covenant contained in the Loan Agreement or other Loan Documents or affect or impair any rights, powers, or remedies of the Administrative Agent, the Syndication Agent or the Lenders, it being the intent of the parties
hereto that the provisions of the Loan Agreement and other Loan Documents shall continue in full force and effect except as expressly modified hereby.

 

(b)           Concurrently herewith, Guarantor is executing and delivering to Administrative Agent the Guarantor Modification and Reaffirmation Agreement referred to in Section 1(a)(ii) above.  Such reaffirmation
is a “Loan Document” and all references herein, in the Loan Agreement and in the Loan Documents to the “Loan Documents”, to the “Guaranty” or to any specific Guaranty shall be deemed to include such reaffirmation.

 

4.           Representations and Warranties.  Borrower hereby represents and warrants to the Administrative Agent and the Lenders as of the date hereof and as of the Modification Effectiveness
Time as follows:

 

(a)           Borrower has full power and authority to enter into this Amendment and the documents and instruments to be delivered by Borrower pursuant hereto and to perform its obligations hereunder and thereunder, and Borrower’s execution and delivery of this Amendment and
the documents and instruments to be delivered by Borrower pursuant hereto has been duly authorized by all necessary organizational action.  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by Borrower of this Amendment or any document or instrument to be delivered by Borrower pursuant hereto.  This Amendment and the
documents and instruments to be delivered by Borrower pursuant hereto have been duly executed and delivered, and constitute the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with their 

 

  

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respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally, or by equitable principles relating to enforceability.

 

(b)           As of the Modification Effectiveness Time, no Event of Default or Potential Default exists.

 

(c)           As of the date hereof and immediately after giving effect to this Amendment and the actions contemplated thereby, Borrower reaffirms all of its obligations under the Loan Documents, and acknowledges that it has no claims, offsets or defenses with respect to the payment
of sums due or performance of any other obligations under the Notes or any other Loan Document.  Without limiting the foregoing, as of the date hereof, Borrower hereby confirms that Loans in the aggregate amount of $99,100,000 are outstanding and that interest on the Loans has been paid through (but not including) July 9, 2009.

 

(d)           As of the date hereof and immediately after giving effect to this Amendment and the actions contemplated thereby, all representations and warranties made and given by Borrower in the Loan Documents are true, accurate and correct (except that, the representations and warranties
of Borrower and each Borrower Party with respect to financial statements set forth in Section 7.3 of the Loan Agreement shall refer to the most recent financial statements of Borrower and each Borrower Party delivered to Administrative Agent).

 

5.           Miscellaneous.

 

(a)           Controlling Provisions.  In the event of any inconsistencies between the provisions of this Amendment and the provisions of any other Loan Document, the provisions of this Amendment shall govern
and prevail.  Except as expressly modified by this Amendment, the Loan Documents shall not be modified and shall remain in full force and effect.

 

(b)           Further Assurances.  At Administrative Agent’s request, Borrower shall promptly execute any other document or instrument and/or seek any consent or agreement from any third party that Administrative
Agent reasonably determines is necessary to evidence or further, or is otherwise relevant to, the intent of the parties, as set forth in this Amendment, provided, the same shall not result in a decrease of the rights of Borrower or result in an increase in Borrower’s obligations under the Loan Documents.  At Administrative Agent’s request, Borrower shall promptly cause any other Borrower Party or any of the holders of any equity interest in any other Borrower Party, as applicable, to execute
any other document or instrument and/or diligently seek any consent or agreement from any third party that Administrative Agent reasonably determines is necessary to evidence or further, or is otherwise relevant to, the intent of the parties, as set forth in this Amendment, provided the same shall not result in a decrease of the rights of such Borrower Party or result in an increase in such Borrower Party’s obligations under the Loan Documents.

 

(c)           Counterparts.  This Amendment may be executed by one or more of the parties to this Amendment in any number of separate counterparts, each of which, when so executed, shall be deemed an original,
and all of said counterparts taken together shall be deemed to constitute but one and the same instrument.

 

  

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(d)           Entire Agreement.  This Amendment is a Loan Document.  This Amendment, together with the other Loan Documents and the Assignments and Acceptances referred to in the
Recitals hereto, set forth the entire agreement and understanding among Borrower, the Administrative Agent, the Syndication Agent and the Lenders, and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof.  This Amendment shall not prejudice any rights or remedies of the Administrative Agent, the Syndication Agent or the Lenders under the Loan Documents.  The Administrative Agent, the Syndication
Agent and each Lender reserve, without limitation, all rights which each has against any indemnitor, guarantor, or endorser of the Notes.  Nothing in this Amendment shall impair the lien of the Mortgage, which as amended pursuant hereto shall remain a deed of trust with a power of sale, creating a first lien encumbering the Project. 

 

(e)           GOVERNING LAW.  PURSUANT TO SECTION 12.21 OF THE LOAN AGREEMENT, THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

 

(f)           No Third Parties Benefited.  This Amendment is made and entered into for the sole protection and legal benefit of Borrower, Administrative Agent, the Syndication Agent, the Lenders and their permitted
successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Amendment or any of the other Loan Documents.

 

(g)           Exculpation Parties.  The provisions of Article 13 of the Loan Agreement are incorporated herein by this reference.

 

(h)           Time of the Essence.  Time is of the essence of each term of the Loan Agreement and Loan Documents, including this Amendment.

 

 

 [SIGNATURES APPEAR ON NEXT PAGE]

  

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IN WITNESS WHEREOF, Borrower, Administrative Agent, Syndication Agent and the Lenders party hereto have caused this Amendment to be executed by their duly authorized representatives as of the day, month and year first above written. 

 

BORROWER:

 

MAGUIRE PARTNERS-PLAZA LAS FUENTES, 

LLC, a Delaware limited liability company

 

By:  /s/ MARK T. LAMMAS                        

 

Name:  Mark T. Lammas                                    

 

Title:   Vice President                                      

  

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LENDERS: 

 

EUROHYPO AG, NEW YORK BRANCH,

as a Lender

 

By:   /s/ JEFFERY A. ALTENAU                   

 

Name:    Jeffery A. Altenau                                 

 

Title:  Director                                                   

 

 

By:  /s/ JOHN C. HAYES                                

 

Name:  John C. Hayes                                       

 

Title:  Director                                                   

  

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WELLS FARGO BANK, N.A., 

as a Lender and as Syndication Agent

 

By:  /s/ SEAN MAHON                                  

 

Name:  Sean Mahon                                        

 

Title:  Managing Director                               

  

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ADMINISTRATIVE AGENT: 

 

EUROHYPO AG, NEW YORK BRANCH,

as Administrative Agent

 

By:   /s/ JEFFERY A. ALTENAU                  

 

Name:   Jeffery A. Altenau                             

 

Title:  Director                                                   

 

 

By: /s/ JOHN C. HAYES                                 

 

Name:  John C. Hayes                                     

 

Title:  Director                                                   

 

  

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Attachment B 

Form of Modification and Reaffirmation of Guarantor Documents

 

MODIFICATION AND REAFFIRMATION OF GUARANTOR DOCUMENTS

 

As consideration for the agreements and covenants contained in that certain Amendment to Loan Agreement and Reaffirmation of Loan Documents, dated as of August 4, 2009 (the “Amendment”), entered into among MAGUIRE
PARTNERS-PLAZA LAS FUENTES, LLC, a Delaware limited liability company (“Borrower”); each of the Lenders named therein (individually, a “Lender” and, collectively, the “Lenders”); EUROHYPO
AG, NEW YORK BRANCH, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”); and WELLS FARGO BANK, N.A., as Syndication Agent (“Syndication Agent”), which Amendment modifies that certain
Loan Agreement, dated as of September 29, 2008 among said parties (the “Loan Agreement”), and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned, MAGUIRE PROPERTIES, L.P., a Maryland limited partnership (“Guarantor”),
hereby acknowledges, covenants and agrees as follows:

 

1.           By this Modification and Reaffirmation of Guarantor Documents (the “Modification Agreement”), Guarantor hereby consents to the Amendment, the transactions contemplated thereby
and all the amendments, modifications and supplements to the Loan Documents and the Loan entered into in connection therewith.  This Modification Agreement and the modifications to the Guaranties (as defined below) shall only be effective upon the occurrence of the Modification Effectiveness Time, as defined in the Amendment.

 

2.           With respect to (a) that certain Recourse Guaranty, dated as of September 29, 2008 (the “Recourse Guaranty”) and (b) that certain Lease Reserve and Interest Carry Guaranty,
dated as of September 29, 2008 (the “Lease Reserve/Interest Carry Guaranty”) (the Recourse Guaranty and the Lease Reserve/Interest Carry Guaranty are collectively referred to herein as the “Guaranties”), each executed by Guarantor to Administrative Agent for the benefit of the Lenders in connection with the Loans made
or to be made by the Lenders pursuant to the Loan Agreement, Guarantor covenants and agrees with the Administrative Agent and the Lenders that the financial covenants of Guarantor set forth in Section 3.04 of each of the Guaranties are hereby amended as follows:

 

(a)           Effective June 30, 2009, Section 3.04(a) of each of the Recourse Guaranty and the Lease Reserve/Interest Carry Guaranty shall be modified to read in its entirety as follows:

 

Tangible Net Worth.  Guarantor shall at all times maintain a Tangible Net Worth of not less than $200,000,000.

 

(b)           Effective June 30, 2009, Section 3.04(b) of each of the Recourse Guaranty and the Lease Reserve/Interest Carry Guaranty shall be null, void and of no further force or effect with respect to any quarterly
period ending on or after June 30, 2009.

 

  

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(c)           Effective June 30, 2009, Section 3.04(e) of each of the Recourse Guaranty and the Lease Reserve/Interest Carry Guaranty shall be modified to read in its entirety as follows: 

 

Net Liquid Assets.  Guarantor shall at all times maintain Net Liquid Assets of not less than $20,000,000.

 

(d)           The definition of “Tangible Net Worth” set forth in subsection (xl) of Section 3.04(f) of each of the Recourse Guaranty and the Lease Reserve/Interest Carry Guaranty shall be modified to read
in its entirety as follows:

 

 

"Tangible Net Worth" means as of any date the amount determined as follows:

 

(A) the sum of (I) Total Asset Value as of such date plus (II) the following tangible asset accounts for the Guarantor and its Subsidiaries (including, in the case of the General Partner and its Subsidiaries, the JV Pro Rata Share of any such asset accounts for each Joint Venture) at net book value in accordance with GAAP, as reported in
the most recent quarterly or annual financial statements of the Guarantor issued prior to such date: (aa) land held for development and construction in progress, (bb) cash and cash equivalents, (cc) restricted cash (less restricted cash which secures any portion of the indebtedness of the Guarantor or any of its Subsidiaries (including, in the case of the General Partner and its Subsidiaries, the JV Pro Rata Share of any such restricted cash for each Joint Venture) to the extent that such indebtedness is excluded
from the definition of “Debt for Borrowed Money” pursuant to the proviso that is contained in such definition), (dd) rents and other receivables, net, (ee) due from affiliates and (ff) other assets, minus (III) the amount of any interest rate swap asset as reported in the footnotes of the most recent quarterly or annual financial statements of the Guarantor issued prior to such date (or, in the case of the General Partner and its Subsidiaries, the JV Pro Rata Share of any such interest rate swap asset
for each Joint Venture), minus

 

(B) the sum of as of such date of (I) Debt for Borrowed Money, plus (II) the following liability accounts for the Guarantor and its Subsidiaries (including, in the case of the General Partner and its Subsidiaries, the JV Pro Rata Share of any such liability accounts for each Joint Venture) at net book value in accordance with GAAP, as reported
in the most recent quarterly or annual financial statements of the Guarantor issued prior to such date: (aa) accounts payable and other liabilities (except for any portion thereof consisting of non-cash GAAP liabilities, including, without limitation “deferred rent liability” and “deferred gain on sale”) plus (bb) capital lease payables, minus (III) the amount of any interest rate swap liability as reported in the footnotes of the most recent quarterly or annual financial statements of
the Guarantor issued prior to such date (or, in the case of the General Partner and its Subsidiaries, the JV Pro Rata Share of any such liability for each Joint Venture).

(e)           Effective June 30, 2009, the definition of “Applicable Capitalization Rate” set forth in subsection (iii) of Section 3.04(f) of
each of the Recourse Guaranty and the Lease Reserve/Interest Carry Guaranty shall be modified to read in its entirety as follows:

  

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“Applicable Capitalization Rate” means, with respect to any Real Property of a type set forth below, the percentage set forth below for such type of Real Property: 

 

Office Real Property:                                  i6.75%

Retail Real Property:                          t       t6.75%

Hotel Real Property:                                    8.00%

(f)           Effective June 30, 2009, the definition of “Asset Value” set forth in subsection (iv) of Section 3.04(f) of each of the Recourse
Guaranty and the Lease Reserve/Interest Carry Guaranty shall be modified to read in its entirety as follows:

“Asset Value" means, at any date of determination, (a) in the case of any Real Property (other than any Development Property or Other Real Property), (i) the Annualized Net Operating Income attributable to such Real Property for the fiscal quarter most recently ended less all
management fees payable to an unaffiliated property manager in respect of such Real Property during such period, divided by (ii) the Applicable Capitalization Rate (based on the relevant asset type), provided, however, that in the case of any Real Property (other than any Development Property or Other Real Property) in which the General Partner or any of its Subsidiaries has acquired any direct or indirect interest (including through the acquisition of Equity Interests) during the fiscal quarter of determination,
"Asset Value" for such fiscal quarter shall be the lesser of (1) the Annualized Net Operating Income for such Real Property divided by the Applicable Capitalization Rate and (2) the purchase price of such Real Property, and (b) in the case of any Development Property or Other Real Property, the most recently appraised value (such appraisal to have been conducted within the last twelve months) of such Development Property or Other Real Property or, in the absence of any such appraisal, the book value of such Development
Property or Other Real Property.  At any date of determination, in no case shall the Asset Value for the applicable fiscal quarter for any Real Property be less than zero.

3.           References to the Guaranties or (in respect of Guarantor’s obligations thereunder) that certain Environmental Indemnity Agreement, dated as of September 29, 2008, delivered by Borrower and Guarantor to the Administrative Agent for the benefit of the Lenders (the
“Environmental Indemnity Agreement” and, collectively with the Guaranties, the “Guarantor Documents”) in any or all of the Loan Documents shall be deemed to include references to the Guarantor Documents as reaffirmed, ratified and amended by this Modification Agreement.  References to the Loan Documents in Guarantor Documents shall be deemed
to include references to the Loan Documents as amended, modified or supplemented by the Amendment.

 

4.           Guarantor reaffirms that the Guarantor Documents remain unchanged, except as modified hereby, and in full force and effect.

 

5.           Guarantor reaffirms all of the obligations contained in the Guarantor Documents (as modified hereby), which shall remain in full force and effect for all the obligations of Guarantor now or hereafter owing to Administrative Agent (on behalf of the Lenders) pursuant to
the terms and conditions of the Guarantor Documents (as modified hereby) and acknowledges, agrees, represents and warrants that no agreements exist with respect to the Guarantor Documents (as modified hereby) or with respect to the obligations of Guarantor thereunder 

 

  

3

  

except those specifically set forth therein or in this Modification Agreement.  Guarantor further reaffirms all its waivers in the Guarantor Documents and each and every one of the possible defenses to the obligations contained in the Guarantor Documents.  Guarantor acknowledges and reaffirms that its obligations contained
in the Guarantor Documents are separate and distinct from those of Borrower on the Loans.

 

6.           Guarantor hereby represents and warrants to the Administrative Agent and the Lenders as of June 30, 2009, as of the date hereof and as of the Modification Effectiveness Time (and immediately after giving effect to this Modification Agreement and the modifications provided
for herein) as follows:

 

(a)           Guarantor has full power and authority to enter into this Modification Agreement and perform its obligations hereunder, and Guarantor’s execution and delivery of this Modification Agreement has been duly authorized by all necessary partnership action.  No
approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by Guarantor of this Modification Agreement.  This Modification Agreement has been duly executed and delivered, and constitutes the legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with their respective terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally, or by equitable principles relating to enforceability.

 

(b)           Guarantor reaffirms all of its obligations under the Guarantor Documents, and Guarantor acknowledges that it has no claims, offsets or defenses with respect to the payment of sums due or performance of any other obligations under the Guarantor Documents.

 

(c)           All representations and warranties made and given by Guarantor in the Guarantor Documents are true, accurate and correct (except that, the representations and warranties of Guarantor with respect to the financial statements and securities law filings of the REIT set forth
in Section 2.05 of the Recourse Guaranty and the Lease Reserve/Interest Guaranty shall refer to the most recent financial statements and 10-Q securities law filings of the REIT delivered to Administrative Agent dated as of March 31, 2009).

 

(d)           No Guarantor Event of Default exists or would, with the giving of notice, the passage of time, or both, exist.

 

7.           THE PROVISIONS OF SECTION 5.01 OF EACH GUARANTY ARE HEREBY INCORPORATED IN THIS MODIFICATION AGREEMENT BY THIS REFERENCE.

 

  

4

  

IN WITNESS WHEREOF, Guarantor has caused this Modification and Reaffirmation of Guarantor Documents to be duly executed and delivered as of this August 4, 2009. 

 

 

MAGUIRE PROPERTIES, L.P.,

a Maryland limited partnership

 

 

By:          Maguire Properties, Inc.,

a Maryland corporation,

its General Partner

 

By:  /s/ MARK T. LAMMAS                        

 

Name:    Mark T. Lammas                                

 

Its:   Vice President                                          

 

 

 

 

5f1012ga1iex10ii_ctm.htm

    
 

    Exhibit
10.2

    
 

     

    MASTER
SERVICES AGREEMENT

    
 

    THIS
MASTER SERVICES AGREEMENT, dated as of [INSERT DATE], 2009 (this
“Agreement”), is entered into by and between CTM Media Holdings, Inc., a
Delaware corporation (“ CTM ”), and IDT Corporation, a Delaware corporation (“
IDT ”). For purposes of this Agreement, “ Party ” or “ Parties ” shall mean
either CTM or IDT, individually or collectively.

     

    BACKGROUND

     

    WHEREAS,
IDT is executing a spin-off of CTM, a wholly-owned subsidiary, to its
stockholders, and has agreed to provide certain corporate, tax and accounting
support, administrative and other services to CTM on the terms and conditions
set forth herein.

     

    NOW
THEREFORE, in consideration of the foregoing, the mutual agreements contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereto hereby agree as
follows:

     

    AGREEMENT

     

    1.
Representations and Warranties.

     

    As an
inducement to enter into this Agreement, CTM and IDT each hereby represents and
warrants to the other as follows:

     

    (a) It is
an entity duly organized, validly existing and in good standing under the laws
of the state of Delaware.  Such Party has all necessary corporate
power and authority to enter into this Agreement, to carry out its obligations
hereunder and to consummate the transactions contemplated hereby.  The
execution and delivery by such Party of this Agreement, the performance by such
Party of its obligations hereunder and the consummation by such Party of the
transactions contemplated hereby have been duly authorized by all requisite
corporate action on the part of such Party.

     

    (b) The
execution and delivery by such Party of this Agreement, the performance by such
Party of its obligations hereunder and the consummation by such Party of the
transactions contemplated hereby do not and will not (i) violate, conflict with
or result in the breach of any provision of the certificate of incorporation or
bylaws of such Party, (ii) conflict with or violate any law or governmental
order applicable to such Party, or (iii) conflict with, or result in any breach
of, constitute a default (or event which, with the giving of notice or lapse of
time, or both, would become a default) under, require any consent under, or give
to others any rights of termination, amendment, acceleration, suspension,
revocation or cancellation of, any note, bond, mortgage or indenture, contract,
agreement, lease, sublease, license, permit, franchise or other instrument or
arrangement to which such Party is a party, which would adversely affect the
ability of such Party to carry out its obligations under, and to consummate the
transactions contemplated by, this Agreement.

    
 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    2.
Provision and Term of Services; Termination.

     

    (a) IDT
agrees to provide to CTM the services (collectively, the “Services”) as set
forth on each Schedule A  that is appended hereto from time to
time.  The Services shall be provided in accordance with the terms and
provisions of this Agreement and the applicable  Schedule A
..  As used herein, the term “ Provider ” shall refer to IDT or any
affiliate designated by IDT that is providing Services, and the term “ Recipient
” shall refer to CTM.

     

    (b)
Provider shall, and where appropriate shall ensure that any officer, employee,
agent or sub-contractor providing Services on behalf of Provider shall, use
reasonable care, skill and diligence in providing the Services.

     

    (c)
Provider shall maintain accurate records and accounts of all transactions
relating to the Services performed by it pursuant to this
Agreement.  Such records and accounts shall be maintained separately
from such Provider’s own records and accounts and shall reflect such information
as would normally be examined by an independent accountant in performing a
complete audit pursuant to U.S. generally accepted auditing standards for the
purpose of certifying financial statements, and to permit verification thereof
by governmental agencies.  Recipient shall have the right to inspect
and copy, upon reasonable notice and at reasonable intervals during the
Provider’s regular office hours, the separate records and accounts maintained by
Provider relating to the Services.

     

    (d) All
of the Services shall be provided during the term of this
Agreement.  The term of this Agreement shall commence on the date
hereof and continue until [
INSERT FIRST ANNIVERSARY OF THE EFFECTIVE DATE OF THE SPIN-OFF ], and
shall automatically renew for additional six-month terms unless, no later than
ninety (90) days prior to the end of the then-current term of this Agreement,
IDT notifies CTM of its intent to terminate this Agreement, in which case this
Agreement shall terminate effective as of the end of the then-current
term,  provided  that certain Services shall terminate
earlier as set forth on the applicable  Schedule A .  This
Agreement or any Service being provided for Recipient may be terminated by
Recipient upon not less than thirty (30) days’ prior written notice
provided  that there are no break-up costs (including commitments made
to or in respect of personnel or third parties due to the requirement to provide
the Services and prepaid expenses related to the Services, or costs related to
terminating such commitments) incurred by the Provider as a result of such
termination unless Recipient agrees to be solely responsible for such
costs.

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

 

    (e) In
the event of a termination of this Agreement, all outstanding sums due hereunder
shall be paid immediately following the date of termination and any rights or
obligations to which any of the Parties may be entitled or be subject prior to
its termination shall remain in full force and effect. Provider shall cooperate
fully in the transition back to Recipient of any and all matters related to the
terminated Services such that Recipient shall not be prejudiced by such
termination (but Provider shall not be required to bear any out-of-pocket costs
for such transition).

     

    3.
Compensation for Services.

     

    (a)
Recipient shall pay Provider for the Services in accordance with the fee
schedule set forth on an applicable Schedule A .

     

    (b)
Unless otherwise specified on a Schedule A, such fees shall be paid by Recipient
within thirty (30) days of the delivery of an appropriate invoice related
thereto (which, unless otherwise provided for in a  Schedule A , shall
be issued no more frequently than monthly).  Such invoice must comply
with all applicable tax requirements and separately describe the amount for
fees, expenses and value added tax, if any.  Failure to provide an
invoice for fees for any given month shall not be deemed a waiver of such fees,
and such fees may be included, without prejudice, in a later invoice delivered
to Recipient.

     

    (c) If
not specified on the applicable Schedule A, the fees payable for a specific
Service shall be equal to the actual costs of Provider in providing such
Service, including a reasonable and good faith allocation of overhead expenses
of Provider.  Upon request of Recipient, Provider shall deliver to
Recipient such reasonable information and supporting documentation with respect
to such overhead allocation.

     

    (d)
Unless otherwise specified on a Schedule A, Recipient shall reimburse the
Provider for third-party, out-of-pocket, incidental travel, lodging and food
expenses incurred by Provider in providing the Services in accordance with
Provider’s customary travel policy.  Such reimbursement shall be
within thirty (30) days of receipt of an invoice from Provider for such
incidental expenses accompanied by such additional documentation reasonably
required by Recipient to verify the amount of the expense and that such expense
was incurred in connection with providing the Services.

     

    (e) All
amounts payable by Recipient to Provider shall be paid by wire transfer in
accordance with the wire transfer instructions provided by Provider to Recipient
from time to time.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4. Force
Majeure.

    
The
obligation of Provider to provide Services shall be suspended during the period
and to the extent that Provider is prevented or hindered from complying
therewith by any law or governmental order, rule, regulation or direction,
whether domestic or foreign, or by any cause beyond the reasonable control of
Provider, including, but not limited to, acts of nature, strikes, lock outs and
other labor and industrial disputes and disturbances, civil disturbances,
accidents, acts of terrorism, acts of war or conditions arising out of or
attributable to war (whether declared or undeclared), shortage of necessary
equipment, materials or labor, or restrictions thereon or limitations upon the
use thereof, and delays in transportation.  In such event, Provider
shall give notice of suspension as soon as reasonably practicable to Recipient
stating the date and extent of such suspension and the cause thereof and
Provider’s best estimate of the date on which it will be able to resume the
performance of its obligations.  In addition, Provider will use
commercially reasonable efforts during any such suspension to keep Recipient
informed as to the progress of removal of the cause of such
suspension.  Provider shall resume the performance of such obligations
as soon as reasonably practicable after the removal of the cause and Provider
shall so notify Recipient.  Recipient shall not be liable for payment
of fees for any Service for the period in which such Service could not be
provided pursuant to this Section 4.

     

    5.
Compliance With Law.

     

    Provider
shall undertake to provide Services in accordance with and adhere to all laws
and governmental rules, regulations and orders applicable at the place where
Services are rendered, including without limitation, data protection
regulations.

     

    6.
Confidentiality.

     

    (a) Each
Party agrees to hold in confidence, and to use reasonable efforts to cause its
employees, representatives and affiliates performing Services to hold in
confidence (at least to the extent that such Party keeps its own confidential
information in confidence, but in no event less than commercially reasonable
given the nature of the confidential information), all confidential information
concerning the other Party and its affiliates furnished to or obtained by such
Party in the course of providing the Services (except to the extent that such
information has been (i) in the public domain through no fault of such Party or
(ii) lawfully acquired on a non-confidential basis by such Party from sources
other than Recipient); and shall not disclose or release any such confidential
information to any person, except its employees, representatives and agents who
have a need to know such information in connection with such Party’s performance
under this Agreement, unless (A) such disclosure or release is compelled by the
judicial or administrative process or (B) in the opinion of counsel to Provider,
such disclosure or release is necessary pursuant to requirements of law or the
requirements of any governmental entity including, without limitation,
disclosure requirements under the Securities Act of 1933 or the Securities
Exchange Act of 1934, in each case as amended.

    
 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      
 

    

    (b) Each
Party shall supervise its personnel and establish systems to assure that
Recipient’s information is made available to such Party’s employees on an “as
needed” basis only.  Each Party shall use such information only for
purposes of providing the Services and for no other purpose.  In
particular, the department of a Party providing the Services shall in no way
make any information concerning Recipient available to any other management or
operational department or division of such Party or to personnel associated with
such divisions or departments except to the extent approved in writing by the
other Party.

     

    7.
Indemnification.

     

    (a) CTM
and its affiliates, officers, directors, employees, agents, successors and
assigns shall be indemnified and held harmless by IDT for and against any and
all liabilities, losses, diminution in value, damages (excluding special,
incidental, punitive, indirect and consequential damages), claims, costs and
expenses, interest, awards, judgments and penalties (including attorneys’ and
consultants’ fees and expenses) actually suffered or incurred by them (including
any action brought or otherwise initiated by any of them), arising out of or
resulting from:

     

    (i) the
breach of any representation or warranty made by IDT contained in this
Agreement;

     

    (ii) the
breach of any covenant or agreement by IDT contained in this
Agreement;

     

    (iii) the
gross negligence, fraud, willful defaults or willful misconduct of IDT or any
other Provider; and

     

    (iv) the
enforcement of the indemnification rights of CTM and its affiliates provided for
in this Agreement.

     

    (b) IDT
and its affiliates, officers, directors, employees, agents, successors and
assigns shall be indemnified and held harmless by CTM for and against any and
all liabilities, losses, diminution in value, damages (excluding special,
incidental, punitive, indirect and consequential damages), claims, costs and
expenses, interest, awards, judgments and penalties (including attorneys’ and
consultants’ fees and expenses) actually suffered or incurred by them (including
any action brought or otherwise initiated by any of them), arising out of or
resulting from:

     

    (i) the
breach of any representation or warranty made by CTM contained in this
Agreement;

     

    (ii) the
breach of any covenant or agreement by CTM contained in this
Agreement;

    
 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      
 

    

    (iii) the
gross negligence, fraud, willful defaults or willful misconduct of CTM;
and

    

    (iv) the
enforcement of the indemnification rights of IDT and its affiliates provided for
in this Agreement.

     

    8.
Liability.

     

    Provider
(or affiliate thereof) shall not have any liability whatsoever to Recipient or
any other Party for any error, act or omission in connection with the Services
to be rendered by Provider to Recipient hereunder unless any such error, act or
omission derives from the willful misconduct or gross negligence of Provider (or
its affiliates).  IN NO EVENT SHALL PROVIDER (OR AFFILIATE THEREOF) BE
LIABLE TO RECIPIENT OR ANY OTHER PARTY FOR ANY SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS, REVENUES
OR DATA), WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
OTHERWISE, WHETHER OR NOT PROVIDER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGE.  THE LIABILITY OF A PROVIDER (AND ITS AFFILIATES) FOR DAMAGES
OR ALLEGED DAMAGES HEREUNDER, WHETHER IN CONTRACT, TORT OR ANY OTHER LEGAL
THEORY, IS LIMITED TO, AND WILL NOT EXCEED, RECIPIENT’S DIRECT DAMAGES AND IN
ALL EVENTS WILL NOT EXCEED THE AGGREGATE FEES PAID BY RECIPIENT TO ALL PROVIDERS
HEREUNDER.

     

    9.
Notices.

     

    Any legal
notice, demand or other communication required or permitted to be given by any
provision of this Agreement (each a “ Notice ”) shall be in writing and shall be
deemed to have been properly given or served only if addressed to a Party at its
address set forth on  Schedule A  attached hereto, and if
delivered (i) by hand, (ii) by certified mail, return receipt requested, (iii)
by overnight commercial carrier or (iv) by telefax transmission with
confirmation of receipt.  All such communications shall be deemed to
have been properly given or served (i) if by hand, when received, (ii) if by
mail, on the date of receipt or of refusal to accept shown on the return
receipt, (iii) if by overnight commercial carrier, on the date that is one (1)
business day after the date upon which the same shall have been delivered to
such overnight commercial carrier, addressed to the recipient, with all shipping
charges prepaid,  provided  that the same is actually
received (or refused) by the recipient in the ordinary course and (iv) if by
telefax, on the date sent with transmission confirmed.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    10. No
Third Party Beneficiaries.

     

    This
Agreement shall be binding upon and inure solely to the benefit of the Parties
and their permitted successors and assigns, and Provider and Recipient shall be
entitled to enforce its respective rights under this Agreement against the other
Party.  Recipient may not assign this Agreement without the prior
written consent of Provider.

     

    11.
Governing Law.

     

    This
Agreement shall be governed by, and construed in accordance with the laws of the
state of New Jersey.  The Parties submit to the jurisdiction of any
state or federal court sitting in New Jersey for the purpose of any suit, action
or proceeding arising out of this Agreement.

     

    12.
Dispute Resolution.

     

    It is the
intention of the Parties that Provider shall act in the best interests of
Recipient.  If, in the course of providing or arranging for Services
hereunder, Provider identifies a conflict of interest that would lead a
reasonable person to conclude that Provider cannot act in the best interests of
Recipient while also acting in the best interests of Provider, such conflict
shall immediately be reported to Recipient so that it may be addressed without
prejudice to either Party.

     

    CTM and
IDT shall each use good faith efforts to resolve any disputes arising out of
this Agreement within fifteen (15) days of receipt of a Party’s written notice
of a dispute.  All disputes under this Agreement shall be referred to
the Chief Financial Officer or his/her designee of each of IDT and
CTM.  The executives shall meet as required for the purpose of
resolving any pending dispute referred to them under this Agreement and shall
consider the disputes in the order such disputes are brought before
them.  In the event that such executives are unable to resolve a
dispute within thirty (30) business days (or such longer period as the
executives may mutually determine), they shall submit the matter to binding
arbitration according to the rules of the American Arbitration Association for
commercial disputes.  The arbitration shall be conducted by one
arbitrator, expert in matters relating to commercial law, mutually selected by
the Parties . If the Parties fail to mutually agree upon one arbitrator within
ten (10) days of submission of the dispute to arbitration, one will be appointed
in accordance with the commercial rules and practices of the American
Arbitration Association.  Any award, order or judgment pursuant to
such arbitration shall be deemed final and binding and may be enforced in any
court of competent jurisdiction.  The Parties agree that the
arbitrator shall only have the power and authority to make awards and issue
orders as expressly permitted herein and shall not, in any event, make any award
that provides for punitive damages.  The schedule and rules for the
arbitration proceedings shall be as set by the arbitrator and the arbitration
proceedings shall be held in Newark, New Jersey. Each Party shall bear its own
costs of participating in the arbitration proceedings.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    13.
Entire Agreement.

     

    This
Agreement and the Schedules hereto sets forth all of the promises, covenants,
agreements, conditions, and undertakings between the Parties with respect to the
subject matter hereof and supersedes all prior and contemporaneous agreements
and understandings, inducements or conditions, express or implied, oral or
written.  The Schedules to this Agreement constitute an integral part
of this Agreement.

     

    14.
Binding.

     

    This
Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and permitted assigns.

     

    15.
Waiver.

     

    No
provision of this Agreement may be waived except by an instrument in writing
signed by the Party sought to be charged with the effect of such
waiver.  The failure of a Party to this Agreement to assert a right or
exercise a remedy hereunder shall not waive such right or remedy or any future
rights or remedies.

     

    16.
Status; Other Activities.

     

    (a) For
purposes of this Agreement, Provider is, and will be deemed to be, an
independent contractor only and not an agent, joint venturer, partner, or
representative of Recipient.  Neither a Provider nor a Recipient may
create any obligations or responsibilities on behalf of or in the name of the
other Party.

     

    (b)
Notwithstanding the amount of time, or percentage of business hours, spent by
any employee of Provider in the provision of Services hereunder, no such
employee shall, by reason of such provision, become an employee of, or have any
direct rights against, Recipient, or be deemed to have any relationship with
Recipient other than as a provider of Services hereunder.

     

    (c)
Nothing in this Agreement shall limit or restrict the right of any Party, or its
affiliates, directors, officers or employees to engage in any other business or
devote their time and attention in part to the management or other aspects of
any other business, whether of a similar nature, or to limit or restrict the
right of such parties to engage in any other business or to render services of
any kind to any corporation, firm, individual, trust or
association.

     

    17.
Amendment.

     

    This
Agreement may not be amended or modified except by an instrument in writing
signed by the Parties.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    18.
Severability.

     

    This
Agreement shall be deemed severable, and the invalidity or unenforceability of
any term or provision hereof shall not affect the validity or enforceability of
this Agreement or of any other term or provision hereof.  Furthermore,
in lieu of any such invalid or unenforceable term or provision, the Parties
intend that there shall be added as a part of this Agreement a provision as
similar in terms to such invalid or unenforceable provision as may be valid and
enforceable, so as to effect the original intent of the Parties to the greatest
extent possible.

     

    19.
Counterparts.

     

    This
Agreement may be executed in one or more counterparts, and by the
Parties  in separate counterparts, each of which when executed shall
be deemed to be an original but all of which taken together shall constitute one
and the same agreement.

    

    
 

    [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

    
 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
 

    

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

    
 

    
      
        
          
            
              
                
                  	
                          CTM
      MEDIA HOLDINGS, INC.

                        
	 
      	 
      
	
                          By:

                        	 
      	 
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        
	 
      
	
                          IDT
      CORPORATION

                        
	 
      	 
      
	
                          By:

                        	 
      	 
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        

                

              

            

          

        

      

    

    
 

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      

    

    

    

    SCHEDULE
A

    
 

    
      	
              Recipient:

            	
              CTM
      Media Holdings, Inc.

            

    

     

    
      	
              Provider:

            	
              IDT
      Corporation

            

    

     

    
      	
              Start
      Date:

            	
              [INSERT
      DATE]

            

    

     

    
      	
              Term:

            	
              Annual

            

    

    
 

    Description
of Service: [INSERT
DESCRIPTION]. This includes, but is not limited to, the following service
elements:

     

    
      	 
      	
              •

            	 
      	
              [INSERT
      ELEMENTS]

            

    

     

    Fee
(other than allocated cost basis): IDT’s costs to the extent incurred in
providing this Service to CTM. CTM will be accorded reasonable and appropriate
audit rights with respect to any IDT costs charged to CTM in accordance with the
foregoing.

     

    Recipient
Contacts:

    

    [INSERT
CONTACTS]

     

    Acknowledgement:

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Recipient:

                            	 
      	 
      	 
      	
                              Provider:

                            
	 	 	 	 	 
	
                              By:

                            	 
      	
                              CTM
      MEDIA HOLDINGS, INC.

                            	 
      	 
      	 
      	
                              By:

                            	
                              IDT
      Corporation

                            
	 	 	 	 	 	 	 	 
	
                              Name:

                            	 
      	 
      	 
      	 
      	 
      	
                              Name:

                            	 
      
	
                              Title:

                            	 
      	 
      	 
      	 
      	 
      	
                              Title:

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