Document:

Blueprint

 

Exhibit 10.1

 

WAIVER AND THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS
WAIVER AND THIRD AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”)
dated as of July 31, 2018 among YUMA ENERGY, INC., a Delaware
corporation (“Yuma Energy”),
YUMA EXPLORATION AND PRODUCTION
COMPANY, INC., a Delaware corporation, PYRAMID OIL LLC, a California limited
liability company, and DAVIS
PETROLEUM CORP., a Delaware corporation (“Davis”, and
together with Yuma Energy, Yuma Exploration and Production Company,
Inc., and Pyramid Oil LLC, the “Borrowers”,
and each a “Borrower”),
the Guarantors existing on the date hereof, the undersigned Lenders
party to the Credit Agreement (the “Lenders”) and
SOCIÉTÉ
GÉNÉRALE, in its capacity as Administrative Agent
(the “Administrative
Agent”).

 

RECITALS

 

A.           The
Borrowers, the Lenders and the Administrative Agent are parties to
that certain Credit Agreement dated as of October 26, 2016, as
amended by that certain First Amendment to Credit Agreement and
Borrowing Base Redetermination dated as of May 19, 2017,
and as further amended by that certain Limited Waiver and Second
Amendment to Credit Agreement and Borrowing Base Redetermination
effective as of March 31, 2018 (as so amended, and as
otherwise amended, restated, amended and restated, supplemented or
otherwise modified prior to the date hereof, the
“Credit
Agreement”).

 

B.           Yuma
Energy, in its capacity as the Borrowing Agent, has notified the Administrative Agent
and the Lenders under the Credit Agreement that as of the last day
of the fiscal quarter ended June 30, 2018, Yuma Energy
and its Subsidiaries failed to maintain cash and Cash Equivalent
Investments held in accounts that are not subject to any
restriction on use or designated for a particular purpose or any
Lien other than the security interest in favor of the
Administrative Agent under the Security Documents (net of the
amount of any Borrowing Base Deficiency, if any), together with
borrowing availability under the Credit Agreement, of at least
$4,000,000.

 

C.           The
Borrowers have requested certain amendments and waivers to the
Credit Agreement and, subject to the conditions precedent set forth
herein, the parties hereto have agreed to so amend and waive
certain provisions of the Credit Agreement as set forth
herein.

 

NOW,
THEREFORE, in consideration of these premises and for other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as
follows:

 

1.          
Same Terms. All
terms used herein that are defined in the Credit Agreement shall
have the same meanings when used herein, unless the context hereof
otherwise requires or provides. In addition, (i) all references in
the Loan Documents to the “Agreement” shall mean the
Credit Agreement, as amended by this Amendment, and (ii) all
references in the Loan Documents to the “Loan
Documents” shall mean the Loan Documents, as amended by this
Amendment.

 

2.           
Waiver.

 

A.           At
the request of the Borrowers, the Administrative Agent and the
Lenders, hereby agree to waive any non-compliance by the
Borrowers’ with Section 6.1(d) of the Credit Agreement
for the fiscal quarter ended June 30, 2018, and any Default or
Event of Default directly arising as a result thereof are each
hereby waived (and any breach of any representation or warranty
under the Credit Agreement or any other Loan Document as a result
of the existence of such failure (if any) to comply is hereby
similarly waived).

 

 

 

B.           The
post-default rate of interest, which would otherwise apply as a
result of the breach described in the foregoing clause (A) of
this Section 2
to the aggregate outstanding amount of all Loans outstanding for
the period from June 30, 2018 until (but not including)
the date hereof, is hereby waived; provided that the waiver of the
post-default rate of interest herein shall apply only to the Events
of Default waived herein and not to any other Event of Default now
existing or that may hereafter occur.

 

The
waiver in this Section 2 is effective
only in respect of the matters and for the time periods expressly
set forth in this Section 2 and not for any
other period and, except as expressly set forth in this Amendment,
no other waivers are intended or made by this Amendment. No failure
or delay on the part of the Administrative Agent, any Lender, the
Issuing Bank or the holder of any Note in exercising any power or
right under the Credit Agreement or any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial
exercise of any such power or right preclude any other or further
exercise thereof or the exercise of any other power or right. No
waiver or approval by the Administrative Agent, any Lender, the
Issuing Bank or the holder of any Note under this Amendment, the
Credit Agreement or any other Loan Document shall, except as may be
otherwise stated in such waiver or approval, be applicable to any
subsequent transaction or any Default or Event of Default under any
Loan Document.

 

3.           Amendments
to Credit Agreement. Subject to the conditions precedent set
forth in Section 4
hereof, Section 5.1(h) of the Credit Agreement is hereby amended
and restated in its entirety to read as follows:

 

“(h)            Cash
flow and accounts payable reports. On (i) Thursday of
each week, commencing August 2, 2018, a 13-week cash flow
forecast for Yuma Energy and its Subsidiaries and, commencing
August 9, 2018, an update with respect to the immediately
preceding week’s 13-week cash flow forecast, including actual
performance for the immediately preceding week and variance reports
and (ii) the tenth day of each month, commencing
August 10, 2018, a report of the outstanding accounts
payable of Yuma Energy and its Subsidiaries (including an aging
report) as of the end of the immediately prior month (e.g., the report due on
August 10, 2018 shall be a report of the outstanding
accounts payable as of July 31, 2018), in each case, in
reasonable detail and otherwise in form and substance acceptable to
the Administrative Agent.”

 

4.           Conditions
Precedent. This Amendment shall become effective (the
“Amendment Effective
Date”) upon each of the following conditions being
satisfied:

 

A.           Amendment
to Credit Agreement. The Administrative Agent shall have
received multiple original counterparts, as requested by the
Administrative Agent, of this Amendment duly and validly executed
and delivered by duly authorized officers of the Borrowers, the
Guarantors, the Administrative Agent and each Lender.

 

B.           Representations
and Warranties; No Defaults. Each Borrower shall have confirmed and
acknowledged to the Administrative Agent and the Lenders, and by
its execution and delivery of this Amendment, each Borrower does
hereby confirm and acknowledge to the Administrative Agent and the
Lenders, that (i) all representations and warranties contained
herein or in the other Loan Documents or otherwise made in writing
in connection herewith or therewith shall be true and correct with
the same force and effect as though such representations and
warranties have been made on and as of the Amendment Effective Date
and (ii) no Default or Event of Default exists under the Credit
Agreement or any of the other Loan Documents.

 

5.                 Certain
Representations. Each Borrower represents and warrants that,
as of the Amendment Effective Date: (A) each Borrower has full
power and authority to execute this Amendment and the other
documents executed in connection herewith and this Amendment and
such other documents constitute the legal, valid and binding
obligation of each Borrower enforceable in accordance with their
terms, except as enforceability may be limited by general
principles of equity and applicable bankruptcy, insolvency,
reorganization, moratorium, and other similar laws affecting the
enforcement of creditors’ rights generally; and (B) no
authorization, approval, consent or other action by, notice to, or
filing with, any governmental authority or other person is required
for the execution, delivery and performance by each Borrower
thereof. In addition, each Borrower represents that after giving
effect to this Amendment all representations and warranties
contained in the Credit Agreement and the other Loan Documents are
true and correct in all material respects on and as of the
Amendment Effective Date as if made on and as of such date except
to the extent that any such representation or warranty expressly
relates solely to an earlier date, in which case such
representation or warranty is true and correct in all material
respects as of such earlier date.

 

Page 2

 

 

6.          
Agreement to Redetermine
the Borrowing Base in August 2018. The parties hereto agree
that the Borrowing Base shall be redetermined on
August 15, 2018 (the “August 2018
Redetermination”) based on the Engineering Reports
most recently provided by the Borrowing Agent to the Administrative
Agent and the Lenders, as well as any additional reports, data, or
supplemental information reasonably requested by the Required
Lenders. Each of the Borrowers, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, agree and
acknowledge that the August 2018 Redetermination shall not
constitute an Interim Redetermination (or a Scheduled
Redetermination).

 

7.                 No
Further Amendments or Waivers. Except as amended or waived
hereby, the Credit Agreement and the Loan Documents shall remain
unchanged and all provisions shall remain fully effective between
the parties.

 

8.               
Acknowledgments and
Agreements. Each Borrower acknowledges that on the date
hereof all outstanding Obligations are payable in accordance with
their respective terms, and each Borrower waives any defense,
offset, counterclaim or recoupment with respect thereto. Each
Borrower, the Administrative Agent and each Lender do hereby adopt,
ratify and confirm the Credit Agreement, as amended hereby, and the
Loan Documents and acknowledge and agree that the Credit Agreement,
as amended hereby, and the Loan Documents are and remain in full
force and effect. Each Borrower acknowledges and agrees that its
liabilities and obligations under the Credit Agreement, as amended
hereby, and under the Loan Documents, are not impaired in any
respect by this Amendment. Any breach of any representations,
warranties and covenants under this Amendment shall be an Event of
Default under the Credit Agreement.

 

9.                 Limitation
on Agreements. The modifications set forth herein are
limited precisely as written and shall not be deemed (A) to be
a consent under or a waiver of or an amendment to any other term or
condition in the Credit Agreement or any of the Loan Documents
(other than the waiver provided for in Section 2 of this Amendment),
or (B) to prejudice any right or rights that the
Administrative Agent now has or may have in the future under or in
connection with the Credit Agreement and the Loan Documents, each
as amended hereby, or any of the other documents referred to herein
or therein. This Amendment shall constitute a Loan Document for all
purposes.

 

10.               
Release of Administrative
Agent, Issuing Bank and Lenders; Etc. In consideration of
the amendments and waivers set forth in this Amendment, each of the
Borrowers and the Guarantors hereby releases, acquits, forever
discharges, and covenants not to sue, the Administrative Agent, the
Issuing Bank and each Lender, along with all of their respective
beneficiaries, officers, directors, shareholders, agents,
employees, servants, attorneys, accountants, consultants,
affiliates, owners and representatives, as well as their respective
heirs, executors, legal representatives, administrators,
predecessors in interest, successors and assigns (each
individually, a “Released
Party” and collectively, the “Released
Parties”) from any and all claims, demands, damages,
costs, expenses, debts, liabilities, contracts, agreements,
obligations, accounts, defenses, suits, offsets against the
indebtedness evidenced by the Loan Documents, actions, causes of
action or claims for damages or relief of whatever kind or nature,
whether equitable or monetary, whether known or unknown, fixed,
contingent or conditional, at law or in equity, suspected or
unsuspected by any Borrower which any Borrower, any Guarantor or
any Subsidiary of any of them, has, had or may have against any
Released Party, for or by reason of any matter, cause or thing
whatsoever occurring on, or at any time prior to, the date of this
Amendment, including, without limitation, any matter that relates
to, in whole or in part, directly or indirectly (a) the Credit
Agreement, any Note, any Security Document, any other Loan Document
or the transactions evidenced thereby, including, without
limitation, any disbursements under the Credit Agreement, any
Notes, the negotiation of any of the Credit Agreement, the Notes,
the Mortgages, the Hazardous Materials Undertaking and Indemnity or
the other Loan Documents, the terms thereof, or the approval,
administration or servicing thereof, or (b) any notice of
default, event of default in reference to any Loan Document or any
other matter pertaining to the collection or enforcement by any
Released Party of the indebtedness evidenced by any Loan Document
or any right or remedy under any Loan Document, or (c) any
purported oral agreements or understandings by and between any
Released Party and any Borrower or any Guarantor in reference to
any Loan Document.

 

11.                 Confirmation
of Security. Each Borrower hereby confirms and agrees that
all of the Security Documents, as may be amended in accordance
herewith, that presently secure the Obligations shall continue to
secure, in the same manner and to the same extent provided therein,
the payment and performance of the Obligations as described in the
Credit Agreement as modified by this Amendment.

 

Page 3

 

 

12.             
     Counterparts. This Amendment
may be executed in any number of counterparts, each of which when
executed and delivered shall be deemed an original, but all of
which constitute one instrument. In making proof of this Amendment,
it shall not be necessary to produce or account for more than one
counterpart thereof signed by each of the parties
hereto.

 

13.                 Incorporation
of Certain Provisions by Reference. The provisions of
Section 9.9 of the Credit Agreement captioned “Governing
Law; Jurisdiction; Waiver of Venue; Service of Process” are
incorporated herein by reference for all purposes.

 

14.              
Entirety, Etc. This
Amendment and all of the other Loan Documents embody the entire
agreement between the parties. THIS AMENDMENT AND ALL OF THE OTHER
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS AMONG THE PARTIES.

 

[The
rest of this page is intentionally left blank; the signature pages
follow.]

 

 

 

 

 

Page 4

 

 

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

 

BORROWERS

 

YUMA
ENERGY, INC.

 

 

By:
/s/ Sam L.
Banks

Name:
Sam L. Banks

Title:
Chief Executive Officer

 

 

YUMA
EXPLORATION AND PRODUCTION COMPANY, INC.

 

 

By:
/s/ Sam L.
Banks

Name:
Sam L. Banks

Title:
Chief Executive Officer

 

 

PYRAMID
OIL LLC

 

 

By:
/s/ Sam L.
Banks

Name:
Sam L. Banks

Title:
Chief Executive Officer

 

 

DAVIS
PETROLEUM CORP.

 

 

By:
/s/ Sam L.
Banks

Name:
Sam L. Banks

Title:
Chief Executive Officer

 

 

 

Signature
Page to Waiver and Third Amendment

 

 

ADMINISTRATIVE
AGENT

AND
LENDER:

 

SOCIÉTÉ
GÉNÉRALE

 

 

By:
/s/ Elena
Robciuc

Name:
Elena Robciuc

Title:
Director

 

 

LENDER:

 

CIT
BANK, N.A.

 

 

By:
/s/ John
Feeley

Name:
John Feeley

Title:
Director

 

 

 

LENDER:

 

LEGACYTEXAS
BANK

 

 

By:
/s/ Whitney
Randolph

Name:
Whitney Randolph

Title:
Senior Vice President

 

 

 

 

Signature
Page to Waiver and Third Amendment

 

 

THE
GUARANTORS HEREBY CONSENT TO THE

EXECUTION, DELIVERY
AND PERFORMANCE OF THE

TERMS
OF THIS AMENDMENT BY THE BORROWERS.

 

 

THE
YUMA COMPANIES, INC.

 

 

 

By:
/s/ Sam L.
Banks

Name:
Sam L. Banks

Title:
Chief Executive Officer

 

DAVIS
PETROLEUM ACQUISITION CORP.

 

 

 

By:
/s/ Sam L.
Banks

Name:
Sam L. Banks

Title:
Chief Executive Officer

 

 

 

Signature
Page to Waiver and Third AmendmentExhibit 10.1

 

TRANSACTION AGREEMENT

 

DATED AS OF JULY 31, 2018

 

BY AND BETWEEN

 

ABP TRUST

a Maryland statutory trust

 

AND

 

THE RMR GROUP LLC

a Maryland limited liability company

 

 

TABLE OF CONTENTS

 

	
SECTION 1.  Definitions
    	
1
    
	
1.1  Definitions
    	
1
    
	
 
    	
 
    
	
SECTION 2.  Formation and Management of the Partnership
    	
2
    
	
2.1  Formation
    	
2
    
	
2.2  Partnership Agreement
    	
2
    
	
2.3  Management
    	
2
    
	
2.4  Transaction Expenses
    	
3
    
	
 
    	
 
    
	
SECTION 3.  Contribution and Subscription
    	
3
    
	
3.1  Contribution and Subscription Agreement
    	
3
    
	
 
    	
 
    
	
SECTION 4.  Miscellaneous
    	
4
    
	
4.1  Notices
    	
4
    
	
4.2  Amendments
    	
5
    
	
4.3  Assignment; Successors and Assigns
    	
5
    
	
4.4  Severability
    	
5
    
	
4.5  Counterparts Complete Agreement, Etc.
    	
5
    
	
4.6  Section and Other Headings
    	
5
    
	
4.7  Governing Law
    	
5
    
	
4.8  Arbitration
    	
6
    
	
 
    	
 
    
	
Schedule A —   Contributed Properties
    	
 
    

 

i

 

TRANSACTION AGREEMENT

 

This TRANSACTION AGREEMENT (this “Agreement”) is executed as of July 31, 2018 by and between ABP Trust, a Maryland statutory trust (together with its subsidiaries, “ABP”) and The RMR Group LLC, a Maryland limited liability company (“RMR”).

 

RECITALS

 

WHEREAS, ABP desires to sponsor a private, open ended, real estate investment fund under the name “RMR Office Property Fund LP” (the “Partnership”) for investment in primarily commercial office properties and to contribute the Contributed Properties (defined below) to the Partnership;

 

WHEREAS, RMR desires to expand its business with respect to the management of private investment funds such as the Partnership; and

 

WHEREAS, the parties have agreed to enter into this Agreement to set forth certain understandings as to the terms on which ABP will form, and contribute the Contributed Properties to, the Partnership and RMR will provide management services to, and invest in, the Partnership;

 

NOW, THEREFORE, in consideration of the foregoing and the other terms contained in this Agreement, the parties hereto, intending to be legally bound hereby, agree as follows:

 

SECTION 1.                         Definitions.

 

1.1                               Definitions.  Capitalized terms used in this Agreement shall have the meanings set forth below or in the section of this Agreement referred to below.

 

“AAA” has the meaning given such term in Section 4.8(a).

 

“ABP” has the meaning set forth in the preamble.

 

“Agreement” has the meaning set forth in the preamble.

 

“Appellate Rules” has the meaning given such term in Section 4.8(g).

 

“Award” has the meaning given such term in Section 4.8(e).

 

“Contributed Properties”  means the properties listed on Schedule A attached hereto, including all buildings and improvements and ABP’s right, title and interest in (i) all easements, rights of way, privileges, licenses and appurtenances with respect thereto; (ii) all fixtures, machinery, systems, equipment and items of tangible personal property attached or appurtenant to, located on or used in connection with the ownership, use, operation or maintenance of such properties; and (iii) all intangible property (including leases, contracts and licenses and permits), to the extent transferable, arising from or used in connection with the ownership, use, operation or maintenance of such properties.

 

“Contribution Agreement” has the meaning given such term in Section 3.1.

 

“Contribution Date” means the date that the contribution of the Contributed Properties to the Partnership is completed.

 

“Disputes” has the meaning given such term in Section 4.8(a).

 

 

“General Partner” has the meaning set forth in Section 2.1.

 

“Management Agreements” has the meaning set forth in Section 2.3.

 

“Partnership” has the meaning set forth in the Recitals.

 

“Partnership Agreement” has the meaning set forth in Section 2.2.

 

“Property Management Agreement” has the meaning set forth in Section 2.3.

 

“RMR” has the meaning set forth in the preamble.

 

“Rules” has the meaning given such term in Section 4.8(a).

 

“Services Agreement” has the meaning given such term in Section 2.3.

 

“Units” has the meaning set forth in Section 2.2.

 

SECTION 2.                         Formation and Management of the Partnership.

 

2.1                               Formation.  The Partnership shall be formed as a Delaware limited partnership with a newly formed subsidiary of ABP serving as the general partner of the Partnership (the “General Partner”) and ABP and RMR as the initial limited partners of the Partnership.

 

2.2                               Partnership Agreement.  The initial limited partnership agreement for the Partnership (the “Partnership Agreement”) shall be on such terms and conditions as are mutually acceptable to each of ABP and RMR; provided, however, the initial Partnership Agreement will provide that (i) the Partnership will seek to acquire primarily commercial office properties in the United States, but will not otherwise be restricted in the type, size, or location of the commercial real estate assets in which it may invests; (ii) no management or incentive fees or “carry” will be paid to the General Partner of the Partnership; (iii) the General Partner will not be obligated to make any capital contributions to, and will not have any economic interest in, the Partnership; (iv) the units of limited partnership interest in the Partnership (“Units”) held by each of ABP and RMR will be the same class of Units with the same rights and privileges (including rights to distributions from the Partnership); (v) additional Units may be offered by the Partnership to other qualified investors from time to time; and (vi) subject to certain limitations, including the availability of funds, limited partners of the Partnership will have the periodic right to request redemption of their Units.

 

2.3                               Management.  The Partnership will engage RMR to provide property management, real estate management and administrative services to the Partnership and its properties pursuant to a Real Estate Asset Management and Administrative Services Agreement (the “Services Agreement”) and a Property Management Agreement (the “Property Management Agreement” and collectively with the Services Agreement, the “Management Agreements”).  The Management Agreements will be entered into contemporaneously with the Partnership Agreement and shall be on such terms and conditions as are mutually acceptable to each of ABP and RMR; provided, however, the Management Agreements will provide that (i) RMR will receive (x) an annual management fee of 1.00% of the net asset value of the Partnership for RMR’s services under the Services Agreement, (y) an annual management fee of 3.00% of gross collected rents from the Partnership’s properties as well as a construction supervision fee of 5.00% of the costs of construction of improvements at the Partnership’s properties for its services under the Property Management Agreement, and (z) RMR will be entitled to customary indemnification from the Partnership and reimbursement of its expenses under the Management Agreements; and (ii) the

 

2

 

Management Agreements will be subject to termination prior to liquidation of the Fund upon removal of the General Partner as the general partner of the Fund.

 

2.4                               Transaction Expenses.   RMR agrees that it shall bear and be responsible for (i) all organizational expenses of the Partnership through the Contribution Date, including in connection with (w) the drafting and negotiation of this Agreement, the Partnership Agreement, the Management Agreements, the Contribution Agreement and related documents, (x) the diligence and acquisition by the Partnership of the Contributed Properties, including survey expenses, all title insurance costs, premiums, and fees, (y) documentary, stamp, sales, intangible and other transfer taxes and fees incurred in connection therewith, and (z) state, city, county, municipal and other governmental recording and filing fees and charges; and (ii) all out of pocket costs of the Partnership in connection with the preparation and finalization of a private placement memorandum and form of subscription agreement for use in connection with the offer and sale of Units to third parties and related documents.  Amounts paid by RMR pursuant to this Section 2.4 will not be capital contributions by RMR to the Partnership and will not result in the issuance of any Units to RMR or reduce its unfunded capital commitment to the Partnership.  Except as otherwise set forth in this Section 2.4, each party shall bear and be responsible for its own costs and expenses in connection with the transactions contemplated by this Agreement.

 

SECTION 3.                         Contribution and Subscription.

 

3.1                               Contribution and Subscription Agreement.  Contemporaneously with the execution of the Partnership Agreement, ABP, RMR, the General Partner and the Partnership will enter into a Contribution and Subscription Agreement on terms acceptable to RMR and ABP (the “Contribution Agreement”).  Pursuant to the Contribution Agreement:

 

(a)               ABP will contribute (either directly or indirectly through the contribution of the equity of its title holding subsidiary) to the Partnership the Contributed Properties, free and clear of liens and encumbrances other than certain permitted exceptions, in exchange for the issuance of Units to ABP at an agreed to value of the Contributed Properties, based on current appraisals for the Contributed Properties obtained by RMR, of $206,300,000 and a Unit price of $1,000 per Unit.  The Contribution Agreement will also provide for the apportionment and allocation of rents, taxes, charges, costs, expenses and liabilities related to the Contributed Properties between ABP and the Partnership;

 

(b)               RMR will make a capital commitment to the Partnership in the amount of $100,000,000, which shall be callable from time to time by the General Partner in exchange for the issuance of Units to RMR based on a Unit price of the net asset value per Unit at the time of issuance.  RMR’s obligation to fund its capital commitment (to the extent not then funded) will expire one year following the date of RMR is admitted to the Partnership as a limited partner.  Unless otherwise agreed to by RMR, RMR’s capital commitment will be called before any capital commitments of limited partners admitted to the Partnership after RMR; and

 

(c)                The parties to the Contribution Agreement will make certain representations and warranties to each other that, subject to certain limitations and time periods, will survive the Contribution Date.

 

3

 

SECTION 4.                         Miscellaneous.

 

4.1                               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, by telecopier with confirmed receipt, 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 acknowledged receipt, in the case of a notice by telecopier, and, in all other cases, upon the date of receipt or refusal.

 

(c)                All such notices shall be addressed,

 

if to ABP, to:

 

ABP Trust
 Two Newton Place
 255 Washington Street, Suite 300
 Newton, Massachusetts  02458-1632
 Attn:  Adam D. Portnoy
 Telecopier No. (617) 928-1305

 

with a copy to:

 

Sullivan & Worcester LLP
 One Post Office Square
 Boston, Massachusetts  02109
 Attn:  Nicole L. Rives
 Telecopier No. (617) 338-2880

 

if to RMR, to:

 

The RMR Group LLC
 Two Newton Place
 255 Washington Street, Suite 300
 Newton, Massachusetts  02458-1632
 Attn:  Jennifer B. Clark
 Telecopier No. (617) 928-1305

 

with a copy to:

 

Skadden, Arps, Slate, Meagher & Flom LLP
 500 Boylston Street
 Boston, Massachusetts  02116
 Attn:  Margaret R. Cohen 
 Telecopier No. (617) 305-4859

 

and

 

Skadden, Arps, Slate, Meagher & Flom LLP
 Four Times Square

 

4

 

New York, NY  10036
 Attn:  Evan R. Levy
 Telecopier No. (917) 777-3889

 

(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 any other address within the United States of America.

 

4.2                               Amendments.  This Agreement may not be amended, nor shall any waiver, change, modification, consent or discharge be effected, except by an instrument in writing executed by or on behalf of the party against whom enforcement of any amendment, waiver, change, modification, consent or discharge is sought.

 

4.3                               Assignment; Successors and Assigns.  This Agreement and all rights and obligations hereunder shall not be assignable, directly or indirectly, by any party without the written consent of each other party.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns.  Except to the extent provided in Section 4.8, this Agreement is not intended and shall not be construed to create any rights in or to be enforceable in any part by any other persons.

 

4.4                               Severability.  If any provision of this Agreement shall be held or deemed to be, or shall in fact be, invalid, inoperative or unenforceable as applied to any particular case in any jurisdiction or jurisdictions, or in all jurisdictions or in all cases, because of the conflict of any provision with any constitution or statute or rule of public policy or for any other reason, such circumstance shall not have the effect of rendering the provision or provisions in question invalid, inoperative or unenforceable in any other jurisdiction or in any other case or circumstance or of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable to the extent that such other provisions are not themselves actually in conflict with such constitution, statute or rule of public policy, but this Agreement shall be reformed and construed in any such jurisdiction or case as if such invalid, inoperative or unenforceable provision had never been contained herein and such provision reformed so that it would be valid, operative and enforceable to the maximum extent permitted in such jurisdiction or in such case.

 

4.5                               Counterparts Complete Agreement, Etc.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and shall supersede and take the place of any other instruments purporting to be an agreement of the parties hereto relating to the subject matter hereof.

 

4.6                               Section and Other Headings.  The headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

4.7                               Governing Law.  This Agreement shall be interpreted, construed, applied and enforced in accordance with the laws of The Commonwealth of Massachusetts without regard to such state’s laws regarding conflict of laws.

 

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4.8                               Arbitration.

 

(a)               Any disputes, claims or controversies arising out of or relating to this Agreement or the transactions contemplated hereby, including any disputes, claims or controversies brought by or on behalf of ABP, RMR, the General Partner or the Partnership or any holder of equity interests (which, for purposes of this Section 4.8, 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 ABP, RMR, the General Partner or the Partnership, either on his, her or its own behalf, on behalf of ABP, RMR, the General Partner or the Partnership or on behalf of any series or class of equity interests of ABP, RMR, the General Partner or the Partnership or holders of any equity interests of ABP, RMR, the General Partner or the Partnership against ABP, RMR, the General Partner or the Partnership or any of their respective trustees, directors, members, officers, managers (including The RMR Group Inc. or its successor), agents or employees, including any disputes, claims or controversies relating to the meaning, interpretation, effect, validity, performance, application or enforcement of this Agreement, including this arbitration agreement or the governing documents of ABP, RMR, the General Partner or the Partnership (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 4.8.  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 ABP, RMR, the General Partner or the Partnership and class actions by a holder of equity interests against those individuals or entities and ABP, RMR, the General Partner or the Partnership.  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 4.8, the term “equity interest” shall mean, (i) in respect of ABP, shares of beneficial interest of ABP, (ii) in respect of RMR, “membership interests” in RMR as defined in the Delaware Limited Liability Companies Act; (iii) in respect of the General Partner, “membership interests” in the General Partner as defined in the Delaware Limited Liability Companies Act and (iv) in respect of the Partnership, Units of the Partnership.

 

(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 it/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)

 

6

 

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.

 

(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 (an “Award”), the arbitrators shall be required to follow the laws of the State of Maryland without regard to principles of conflicts of law.  Any arbitration proceedings or Award 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.  An 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 4.8(g), each party against which an Award assesses a monetary obligation shall pay that obligation on or before the thirtieth (30th) day following the date of such Award or such other date as such Award may provide.

 

(f)                 Except to the extent expressly provided by this Agreement or as otherwise agreed by the parties, to the maximum extent permitted by Maryland law, 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 ABP’s, RMR’s, the General Partner’s or the Partnership’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, any Award, including but not limited to, any interim Award, may be appealed pursuant to the AAA’s Optional Appellate Arbitration Rules (“Appellate Rules”).  An 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 an 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 4.8(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 4.8(g), an Award shall be final and

 

7

 

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 an 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 4.8 is intended to benefit and be enforceable by ABP, RMR, the General Partner, the Partnership and their respective holders of equity interests, trustees, directors, officers, managers (including The RMR Group Inc. or its successor), agents or employees, and their respective successors and assigns and shall be binding upon ABP, RMR, the General Partner, the Partnership 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.

 

4.9                               Nature of Relationship.  This Agreement shall not create any partnership, joint venture, employment, or other relationship between ABP and RMR.

 

[Signature page follows.]

 

8

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as a sealed instrument as of the date first above written.

 

	
 
    	
ABP:
    
	
 
    	
 
    
	
 
    	
ABP TRUST, a Maryland   statutory trust
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Adam D. Portnoy
    
	
 
    	
 
    	
Name:
    	
Adam D. Portnoy
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
RMR:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
THE RMR GROUP LLC, a   Maryland limited liability company
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Matthew P. Jordan
    
	
 
    	
 
    	
Name:
    	
Matthew P. Jordan
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President, Chief Financial Officer and Treasurer
    

 

9

 

SCHEDULE A

 

Contributed Properties

 

100 Pennsylvania, Ave., Framingham, MA

42 Longwater Drive, Norwell, MA

9 Galen Street, Watertown, MA

795 Horsham Road, Horsham, PA

912 South Capital of Texas Highway, Austin, TX (Vista Ridge)

206 Wild Basin Road, Austin, TX (Wild Basin — Building 1)

206 Wild Basin Road, Austin, TX, a/k/a 134 N. Wild Basin Rd. (Wild Basin — Building 2)

7501 N. Capital of Texas Highway, Austin, TX (Reserve at Bull Creek — Building A)

7501 N. Capital of Texas Highway, Austin, TX (Reserve at Bull Creek — Building B)

7501 N. Capital of Texas Highway, Austin, TX (Reserve at Bull Creek — Building C)

4800 Westfields Blvd., Chantilly, VA (Stoneleigh — Building 1)

4840 Westfields Blvd., Chantilly, VA (Stoneleigh — Building 2)

14151 Newbrook Drive, Chantilly, VA (Glenview — Building 1)

14155 Newbrook Drive, Chantilly, VA (Glenview — Building 2)

14150 Newbrook Drive, Chantilly, VA (Glenbrook II)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}]]