Document:

Exhibit 10.2

Distribution Agreement

 

 

 

AGREEMENT, made
the 30th day of October 2015, by Hispanica International Delights of America, Inc. (HISP) a Distribution corporation
with offices located at 3536 Daniel Crescent Baldwin, NY 11510 (“Distributor”), and Just Buns, Inc. (“Company”)
Brands a wholly owned brand of a New York corporation with offices located in Rockland County, NY. 

 

W I T N
E S S E T H:

 

WHEREAS, Company is currently owner
and manufacturer of the Just Buns (JBI) brands (the “Products”).

 

WHEREAS, Distributor is engaged
in the business of distributing food and beverage products through various independent operators; and retail locations.

 

WHEREAS, Company is desirous of
selling its line of Products, only, to Distributor and granting Distributor a designated territory for the purpose of causing the
Products to be distributed therein and Distributor is willing to do so, subject to the terms and conditions hereof;

 

NOW THEREFORE, in consideration
of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

 

1.Definitions.The terms listed below
as used in this Agreement have the following meanings and, as the context requires, the singular includes the plural and the masculine
gender includes the feminine and gender neutral, and vice versa:

 

(a)The term “Person” means: any natural
person, corporation, division of a corporation, company, partnership, proprietorship, joint venture, association, trust, estate,
foundation or any other entity, whether or not incorporated, and any governmental authority, unit or agency.

 

(b)The term “Products” means: (i) the Pastries
and other baked products associated with the Trademarks together with all enhancements and modifications to, and changes in ingredients
of the Pastries or other baked products irrespective of whether or not the term “new” or “improved” or
words of similar import are added thereto or if Company uses a different product code or name therefore; and (ii) also includes
any new products in any way associated with any of the Trademarks or offered by company in the territory.

 

(c)The term “Territory” means: the geographical
area specified on Schedule A

 

(d)The term “Trademarks” means: those trademarks,
trade names, copyrighted materials, logos, slogans, designs and distinctive bottles, advertising and packaging which are used,
at any time during the term hereof, in connection with the production, sale or distribution of Products, including, without limitation,
those set forth on Schedule 1(d) and any enhancements, modifications or derivatives thereof and changes thereto.

 

(e)The term “UCC” means: the New York Uniform
Commercial Code.

 

2.Acknowledgement; Recognized Territory.
(a) Company hereby acknowledges Distributor as the exclusive distributor of Products within the Territory (Schedule A), with the
right to re-distribute same to various independent operators for further distribution within the Territory. Accordingly, the Company
shall (and can) directly or indirectly sell Products to any Person(s) located within the Territory or authorize or
permit any other person to do so and it is Distributor responsibility to service that Person(s) under terms set forth by Company.

 

(b)Distributor may market, sell and otherwise distribute
Products to any Person located and taking delivery within the Territory in any reasonable commercial manner not inconsistent with
this Agreement.

 

(c)Company hereby acknowledges that Distributor is
currently, and will be in the future, engaged in the business of marketing, selling and distributing baked products, for other
companies some of which are or may be competitive with, or constitute substitutes for, Products. The Distributor can not though
distribute, market, or sell likewise flavored products using the same flavored names used by the Company without Company approval.
As such, it is specifically understood and agreed that such activities shall not be deemed improper or violate any obligation of
Distributor hereunder or under applicable law, including, without limitation, the UCC. Accordingly, notwithstanding anything to
the contrary contained herein or under applicable law (including, without limitation, the UCC), Distributor shall only have an
obligation to use reasonable commercial efforts to market, distribute, sell or otherwise promote the sale of Products.

 

Further, Distributor shall be required
to devote its time and efforts to marketing, selling, distributing or promoting the sale of Products. Such time and efforts must
be within reason and not hamper the Distributor’s efforts to sell, market, and distribute other products in its portfolio.

 

(d)During the term hereof, Company grants to Distributor
the right and license to use the Trademarks within the Territory for purposes of marketing, selling and otherwise distributing
Products within the Territory.

 

Company represents and warrants to Distributor
that all Products sold pursuant hereto will be, and the Trademarks are, free from rightful claims of any Person arising from patent
and/or trademark infringement. Company hereby acknowledges that it is a merchant regularly dealing inpastries and baked goods.
In the event any reasonable claim arises with regard to Products sold pursuant hereto or any of the Trademarks concerning patent
and/or trademark infringement, a breach of this representation and warranty shall have occurred and Company shall indemnify
and hold Distributor harmless from and against any loss, cost, claim, action, damage, liability or expense (including, without
limitation, reasonable legal fees) incurred by Distributor in connection therewith.

 

The provisions of this paragraph 2(d) shall
survive the expiration or termination of this Agreement, as the case may be, for a period of three (3)
years.

 

3.Supply. (a) Company shall supply to Distributor
and Distributor shall purchase exclusively from the Company or third party designation by the Company all of Distributor’s
requirements for baked goods Products to be distributed to Persons located and taking delivery within the Territory. Distributor
shall specify such requirements pursuant to purchase orders to be submitted by Distributor to Company from time to time pursuant
to paragraph 4(a).

 

Company further acknowledges and agrees
that Distributor shall have the right to reduce its requirements for Products at any time or from time to time for any bona fide
business reason or none at all, even if such reduction in requirements is not made in good faith or is substantially disproportionate
relative to Distributor’s previous requirements, it being understood that Distributor is not obligated to use its best efforts
to avoid reducing its requirements.  By way of example and not by way of limitation, Distributor
shall have the right to reduce its requirements to avoid losses. If such reduction in purchases occur the
Distributor acknowledges that the Company could find that reason or cause for termination of this agreement.

 

 

(b)Any provision contained in a sales order, invoice,
acceptance document or other acknowledgment submitted by or on behalf of Company which is inconsistent with or contains terms in
addition to, or in variance of the terms and conditions contained in this Agreement, shall not be binding on Distributor nor have
any force of effect on or otherwise affect the provisions hereof or the transactions contemplated hereby.

 

(c)During the term of this Agreement, Company shall
use its best efforts to promptly tender delivery of Products to Distributor pursuant to the provisions hereof and to use
its best efforts to advertise and promote the sale of the Products in the Territory under the Trademarks.

 

4.Delivery, Risk of Loss and Related Matters.
(a) With respect to each purchase order submitted by Distributor to Company pursuant to paragraph 3(a), Company
shall deliver the Products ordered pursuant thereto within thirty (45) business days from Distributor’s submission thereof
to the Company. Such purchase orders may be made in writing and mailed via electronic or regular postal mail. For purposes
of this paragraph 4, a purchase order shall be deemed duly submitted by Distributor to Company, or third party designated
by Company, upon communicating it in writing, and upon transmitting same if the purchase order is made electronically.

 

Products ordered pursuant to each purchase
order shall be tendered by Company in a single delivery, at the Company’s warehouse located at the address stated above.
The risk of loss shall pass to Distributor once Products are loaded on a truck furnished by Company
and /or Distributor.

 

5.Purchase Price and Payment Terms. (a) Distributor
shall pay the Company’s or a third party designated by Company then applicable wholesale price charged to Distributors
at the time of the submission of Distributor’s purchase order pursuant to paragraph 4(a).

 

(b)Distributor shall pay each invoice upon receipt
of such Products to the Company, or a percentage in advance that will be necessary to produce the product or under terms set
forth by third party designation of the Company. Distributor may make such payment with a company check wire transfer, or direct
deposit into Company’s Bank of choice.

 

 

6.Inspection and Returns. (a) Products delivered
pursuant hereto are subject to inspection by Independent Contractor/ Distributor before acceptance. Distributor shall conduct such
inspection at the delivery of products and after Products
are loaded on Distributor’s vehicle. Such inspection shall be binding on the parties.

 

Company expressly represents and warrants
that Products shall conform with all applicable federal, state and local laws, rules and regulations and have been approved by
all governmental authorities, and further represents and warrants that Products delivered pursuant hereto will be fit for human
consumption, merchantable, of good average quality, and are free from any and all defects. Company also represents and warrants
that Products sold pursuant hereto will be free from any security interests, liens or other claims or encumbrances of any nature
whatsoever. These representations and warranties shall survive inspection, delivery, acceptance or payment by Distributor for Products.
Company shall indemnify and hold Distributor harmless from and against any loss, cost, claim, action, damage, liability or expense
(including, without limitation, reasonable legal fees and expenses) incurred by Distributor in connection with a breach of any
of the foregoing warranties contained in this paragraph 6(a). The provisions of this paragraph 6(a) shall survive the termination
or expiration of this Agreement, as the case may be, for a period of three (3) years.

 

(b)All Products not fully up to standard, or not in
compliance with the warranties specified in this Agreement or with any other provisions hereof, or shipped contrary to instructions,
or in excess of the quantity ordered, or substituted for Products ordered or, if not all of the Products ordered are delivered,
or if a portion of Products are physically damaged or non-conforming, such non-conformity shall be deemed to substantially impair
the value of the shipment in question and this Agreement so that all or a portion of the Products actually delivered may, at Distributor’s
sole and absolute option, be rejected by Distributor or Distributor may revoke its acceptance, as the case may be, whereas Distributor
shall have the right to return same to Company or hold same at Distributor’s warehouse at Company’s expense and risk.

 

7.Term; Renewal. The term of this Agreement
shall be for a period of sixty (60) consecutive calendar months (“Initial Term”), commencing on the date hereof, unless
sooner terminated pursuant to paragraph 8. Upon the expiration of the Initial Term, the term of this Agreement shall automatically
renew for successive sixty (60) consecutive month periods unless sooner terminated pursuant to paragraph 8, or one party notifies
the other party of its intention not to renew at least ninety (14) days prior to the expiration of the then current term.

 

8.Termination.(a) Subject to paragraph
9, Company shall have the right to terminate this Agreement in accordance with New York State Law Section 55-C and for any reason
or cause with no less than a two week written notice.

 

 

9.Post-termination Obligations. No obligations
will be pursuant between both parties if this agreement is terminated other than the normal due payments on last purchase.

 

10. Independent Contractor Status and Related Matters.
(a) Distributor’s status hereunder shall at all times be that of an independent contractor. Nothing in this Agreement is
intended, nor shall it be construed, to (i) make Company and Distributor partners or joint ventures nor grant a right in or to
any business activity or investments of or to the income or proceeds disbursed there from; or (ii) allow Distributor access to
Company’s proprietary information including, but not limited, to: trade secrets, formulas, sales, financial statements, vendors’
contacts, customers, or (iii) create a relationship between Company and Distributor of principal and agent or employer and employee,
or (iv), in any way, circumvent the Company’s relationships with its vendors for the purpose of producing a private label
branded business that directly competes with the Company’s line of products.

(b)Distributor shall have the sole and exclusive responsibility
for maintaining and operating its vehicles and equipment in compliance with all federal, state and local laws, rules and regulations.
All risks, obligations and responsibilities associated with the operation and ownership of Distributor’s vehicles and equipment
shall be borne by Distributor. Distributor shall at all times have the sole and absolute responsibility for any and all damage,
theft or other loss of its vehicles and equipment.

 

(c)Distributor shall be solely and exclusively liable
and responsible for: (i) hiring, supervising, training and instructing its employees and other personnel; (ii) obtaining and maintaining
any requisite licenses and permits for the operation of its business enterprises; (iii) compensating its employees and other personnel;
and (iv) making all required federal, state and local withholdings, deductions and insurance (including, but not limited to, workman’s
compensation insurance and unemployment insurance). Company is only concerned with the results to be accomplished by Distributor
in its marketing, distribution and sale of Products pursuant hereto; the manner and means to be employed by Distributor in achieving
such results are entirely within its own authority and control. Distributor is free to schedule its own operations and truck routing.

 

11.Indemnification. Company shall indemnify
and hold Distributor harmless from and against any and all liabilities, losses, costs, damages, claims, actions and expenses (including,
without limitation, reasonable legal fees) incurred by Distributor arising out of, relating to or resulting from: (i) a breach
of any warranty made by Company hereunder; (ii) the consumption of Products; and (iii) Company’s breach of failure to perform
any term or condition contained herein. The provisions of this paragraph 12 shall survive the termination or expiration of this
Agreement, as the case may be, for a period of three (3) years.

 

12.Transhipping. The Distributor shall not
sell any Products to any Person outside of the Territory or to any Person Distributor knows will sell Products to any Person outside
of the Territory.

 

13. Additional Products. In the event Company
shall desire to sell other baked or snack products (the “New Products”) within the Territory, Distributor shall first
be offered in writing the exclusive right to distribute the New Products on substantially the same terms and conditions of this
Agreement. Distributor shall have thirty (30) days from receipt of the notice from Company to notify Company in writing of its
election to distribute the New Products.

 

14. Pricing Structure and Disputed Accounts:
In the event that two or more Independent Contractors/Distributors are engaged in the “direct selling” of the
Company’s products in the same geographic territory to the same accounts- they must do so with the Company’s authorization
and acknowledgement as well as have a recognized “floor” pricing which must be established and agreed to by the different
parties to prevent the Company’s line being sold “below market” prices. This only relates to Direct Store Distribution
(DSD) transactions. In the Event that two, or more, Distributors service the same account then it is the Company’s duty to
designate the order of preference among the distributors to service the account being disputed.

 

15.Miscellaneous Provisions.

 

(a)Notices. All notices permitted, required
or provided for by this Agreement shall be made in writing, and shall be deemed adequately delivered if delivered by hand or by
the mailing of the notice in the U.S. mail, pre-paid certified or registered mail, return receipt requested, or by a nationally
recognized overnight courier service that regularly maintains records of its pick-ups and deliveries, to the parties at their respective
addresses set forth above or to any other address designated by a party hereto by written notice of such address change. Notices
delivered personally shall be deemed given and received as of the date of actual receipt, mailed notices shall be deemed given
when mailed and received two (2) days thereafter. Notices sent by overnight courier service shall be deemed given when delivered
to the courier service and received one (1) day later.

 

(b)Modification or Amendment. This Agreement
may not be modified or amended except by an instrument in writing signed by the party or parties against whom enforcement is sought.

 

(c)Headings. The headings in this Agreement
are intended solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

 

(d)Invalidity of Provision. Any term or provision
of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement
or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. Further,
to the extent that any term or provision hereof is deemed invalid, void or otherwise unenforceable, but may be made enforceable
by amendment thereto, the parties agree that such amendment may be made so that the same shall, nevertheless, be enforceable to
the fullest extent permissible under the laws and public policies applied in any such jurisdiction in which enforcement is sought.

 

(e)Event on Non-Business Days. Whenever any
action is to be taken or any event is to occur, other than the giving of notice for which separate provision is made above, under
or pursuant to this Agreement, on any Saturday, Sunday or a public holiday under the laws of the place of performance of such action,
such action shall be taken and such event shall occur on the next succeeding business day.

 

(f)Governing Law. All questions pertaining to
the validity, construction, execution and performance of this Agreement shall be construed and governed in accordance with the
laws of the State of New York according to Section 55-C, without
giving effect to the conflicts or choice of law provisions thereof.

 

(g)Waiver of Breach. Any waiver of any of the
provisions of this Agreement, or of any inaccuracy in or non-fulfillment of any of the representations, warranties or obligations
hereunder or contemplated hereby, shall not be effective unless made in writing and signed by the party against whom the enforcement
of any such waiver is sought. A waiver given in any case shall only apply with respect to that particular act, omission or breach,
and shall not be effective as to any further or subsequent act, omission or breach, regardless of whether they be of the same or
similar nature.

 

(h)Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which shall constitute but one and the same instrument.

 

		(i)	Entire Agreement. This writing is intended by the parties to be a final, complete and
exclusive statement of their agreement with respect to the subject matter hereof. All prior or contemporaneous oral or written
statements are hereby excluded and are superseded. It is expressly agreed that no course of performance, course of dealing or usage
of trade shall be admissible to contradict, supplement or explain the terms of this Agreement. Furthermore, it is expressly agreed
that a party’s acceptance of or acquiescence in a course of performance under this Agreement shall not be admissible to modify,
waive, supplement or explain the terms hereof, even if that party is aware of the course of performance and has an opportunity
to object to it.

 

 

Neither party shall be bound by and specifically
objects to any additional term or condition whatsoever that is different from or in addition to the provisions of this Agreement,
whether or not such term or condition will materially alter this Agreement. Any additional or different terms stated by Company
or Distributor in any proposal, quotation, purchase order, confirmation or invoice shall be of no force and effect.

 

All exhibits attached hereto, and all certificates,
documents and other instruments delivered or to be delivered pursuant to the terms hereof are hereby expressly made a part of this
Agreement as fully as those set forth herein, and all references herein to the terms “this Agreement”, “hereof”,
“hereunder”, “herein”, “hereby” or “hereto” shall be deemed to refer to this Agreement
and to all such writings.

 

 

 

IN WITNESS
WHEREOF, each of the parties hereto have caused this Agreement to be executed and delivered by a duly authorized member or
officer, as the case may be made this the 30th day of October, 2015.

	COMPANY:	Distributor:
	Just Buns, Inc.	Hispanica International Delights of America, Inc.
	 	 
	By:/s/ Dana E. Taaffee	By:/s/ Fernando Leonzo
	Name: Dana E. Taaffee	Name: Fernando “Oswaldo” Leonzo
	Title: President-Owner	Title:
    Chairman & CEO

     

     

    

 

EXHIBIT A

 

Territory

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

 

EXHIBIT B

 

QuantitiesExhibit

Exhibit 10.1

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT is made and entered into this 17th day of August, 2015 ("Agreement"), by and between RETAIL PROPERTIES OF AMERICA, INC., a Maryland corporation (the "Company"), and HEATH R. FEAR ("Indemnitee").

WHEREAS, at the request of the Company, Indemnitee currently serves as an officer of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of his service; and

WHEREAS, as an inducement to Indemnitee to continue to serve as such officer, the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section I.    Definitions.  For purposes of this Agreement:

(a)        "Change in Control" means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the "Act"), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if after the Effective Date (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Act) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of the Company's then outstanding securities without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person attaining such percentage interest; (ii) there occurs a proxy contest, or the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) during any period of two consecutive years, other than as a result of an event described in clause (a)(ii) of this Section 1, individuals who at the beginning of such period constituted the Board of Directors (including for this purpose any new director whose election or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute at least a majority of the Board of Directors.

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(b)"Corporate Status" means the status of a person who is or was a director, trustee, officer, employee or agent of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise for which such person is or was serving at the request of the Company.

(c)"Disinterested Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

(d)"Effective Date" means the date set forth in the first paragraph of this Agreement.

(e)"Expenses" shall include all reasonable and out-of-pocket attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.

(f)"Independent Counsel" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any other party to or witness in the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. If a Change of Control has not occurred, Independent Counsel shall be selected by the Board of Directors, with the approval of Indemnitee, which approval will not be unreasonably withheld. If a Change of Control has occurred, Independent Counsel shall be selected by Indemnitee, with the approval of the Board of Directors, which approval will not be unreasonably withheld.

(g)"Proceeding" includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether civil, criminal, administrative or investigative (including on appeal), except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee.

Section 2.    Services by Indemnitee.  Indemnitee will serve as an officer of the Company. However, this Agreement shall not impose any obligation on Indemnitee or the Company to continue Indemnitee's service to the Company beyond any period otherwise required by law or by other agreements or commitments of the parties, if any.

Section 3.    Indemnification - General.  The Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the date hereof and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the date hereof. The rights of Indemnitee 

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provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law ("MGCL").

Section 4.    Proceedings Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of indemnification provided in this Section 4 if, by reason of his/her Corporate Status, he/she is, or is threatened to be, made a party to or a witness in any threatened, pending, or completed Proceeding, other than a Proceeding by or in the right of the Company. Pursuant to this Section 4, Indemnitee shall be indemnified against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by him/her or on his/her behalf in connection with a Proceeding by reason of his/her Corporate Status unless it is established that (i) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty, (ii) Indemnitee actually received an improper personal benefit in money, property or services, or (iii) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his/her conduct was unlawful.

Section 5.    Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of indemnification provided in this Section 5 if, by reason of his/her Corporate Status, he/she is, or is threatened to be, made a party to or a witness in any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 5, Indemnitee shall be indemnified against all amounts paid in settlement and all Expenses actually and reasonably incurred by him/her or on his/her behalf in connection with such Proceeding unless it is established that (i) the act or omission of Indemnitee was material to the matter giving rise to such a Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (ii) Indemnitee actually received an improper personal benefit in money, property or services.

Section 6.    Court-Ordered Indemnification.  Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification in the following circumstances:

(a)if it determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the expenses of securing such reimbursement; or

(b)if it determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses actually and reasonably incurred by him/her or on his/her behalf in connection with a Proceeding.

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Section 7.    Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee is, by reason of his/her Corporate Status, made a party to and is successful, on the merits or otherwise, in the defense of any Proceeding, he/she shall be indemnified for all Expenses actually and reasonably incurred by him/her or on his/her behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by him/her or on his/her behalf in connection with each successfully resolved claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 8.    Advance of Expenses.  The Company shall advance all reasonable Expenses actually and reasonably incurred by or on behalf of Indemnitee in connection with any Proceeding (other than a Proceeding brought to enforce indemnification under this Agreement, applicable law, the Charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors) to which Indemnitee is, or is threatened to be, made a party or a witness, within ten days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee's good faith belief that the standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established that the standard of conduct has not been met and which have not been successfully resolved as described in Section 7. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee's financial ability to repay such advanced Expenses and without any requirement to post security therefor.

Section 9.    Procedure for Determination of Entitlement to Indemnification.

(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

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(b)Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 9(a) hereof, a determination, if required by applicable law, with respect to Indemnitee's entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred, (A) by the Board of Directors (or a duly authorized committee thereof) by a majority vote of a quorum consisting of Disinterested Directors (as herein defined), or (B) if a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even if obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, or (C) if so directed by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 9. Any Expenses actually and reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

Section 10.    Presumptions and Effect of Certain Proceedings.

(a)In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making of any determination contrary to that presumption.

(b)The termination of any Proceeding by judgment, order, settlement, conviction, a plea of nolo contendere or its equivalent, or an entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

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Section 11.    Remedies of Indemnitee.

(a)    If (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 9(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, of his/her entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee, at his/her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 11(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce his/her rights under Section 7 of this Agreement.

(b)    In any judicial proceeding or arbitration commenced pursuant to this Section 11 the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be.

(c)    If a determination shall have been made pursuant to Section 9(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 11, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification.

(d)    In the event that Indemnitee, pursuant to this Section 11, seeks a judicial adjudication of or an award in arbitration to enforce his/her rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by him/her in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.

Section 12.    Defense of the Underlying Proceeding.

(a)Indemnitee shall notify the Company promptly upon being served with or receiving any summons, citation, subpoena, complaint, indictment, information, notice, request or other document relating to any Proceeding which may result in the right to indemnification or the advance 

6

of Expenses hereunder; provided, however, that the failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company's ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

(b)Subject to the provisions of the last sentence of this Section 12(b) and of Section 12(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 12(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee. This Section 12(b) shall not apply to a Proceeding brought by Indemnitee under Section 11 above or Section 18 below.

(c)Notwithstanding the provisions of Section 12(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee's Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that he/she may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee's choice, subject to the prior approval of the Company, which shall not be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee's choice, subject to the prior approval of the Company, which shall not be unreasonably withheld, at the expense of the Company (subject to Section 11(d)), to represent Indemnitee in connection with any such matter.

Section 13.    Non-Exclusivity; Survival of Rights; Subrogation; Insurance.

(a)The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision 

7

hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his/her Corporate Status prior to such amendment, alteration or repeal.

(b)In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

(c)The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 14.    Insurance. The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors of the Company, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee for service as a director or officer of the Company and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee for service as a director or officer of the Company. Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and reasonable Expenses actually and reasonably incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence.

Section 15.    Indemnification for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of his/her Corporate Status, a witness in any Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is not a party but in which the Indemnitee receives a subpoena to testify, he/she shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by him/her or on his/her behalf in connection therewith.

Section 16.    Duration of Agreement; Binding Effect.

(a)This Agreement shall continue until and terminate ten years after the date that Indemnitee's Corporate Status shall have ceased; provided, that the rights of Indemnitee hereunder shall continue until the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advance of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement relating thereto.

(b)The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as 

8

to an Indemnitee who has ceased to be a director, trustee, officer, employee or agent of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the written request of the Company, and shall inure to the benefit of Indemnitee and his/her spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

(c)The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

Section 17.    Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 18.    Exception to Right of Indemnification or Advance of Expenses. Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to indemnification or advance of Expenses under this Agreement with respect to any Proceeding brought by Indemnitee, unless (a) the Proceeding is brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Sections 8 and 11 of this Agreement, or (b) the Company's Bylaws, as amended, the Charter, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

Section 19.    Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

Section 20.    Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 21.    Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver 

9

of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

Section 22.    Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
(a)    If to Indemnitee, to: The address set forth on the signature page hereto.
(b)    If to the Company to:
Retail Properties of America, Inc.
2021 Spring Road, Suite 200
Oak Brook, Illinois  60523
Attn:  President and Chief Executive Officer

With a copy to:
Retail Properties of America, Inc.
2021 Spring Road, Suite 200
Oak Brook, Illinois  60523
Attn:  General Counsel

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

Section 23.    Governing Law. The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.

Section 24.    Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

	
				
	ATTEST:
	 
	COMPANY

	 
	 
	 
	 

	 
	 
	RETAIL PROPERTIES OF AMERICA, INC., a

	 
	 
	Maryland corporation

	 
	 
	 
	 

	/s/ DENNIS K. HOLLAND
	 
	By:
	/s/ STEVEN P. GRIMES

	Dennis K. Holland
	 
	 
	Steven P. Grimes

	Secretary
	 
	 
	President and Chief Executive Officer

	
				
	 
	 
	INDEMNITEE

	 
	 
	 
	 

	 
	 
	/s/ HEATH R. FEAR

	 
	 
	Heath R. Fear

	 
	 
	 
	 

	 
	 
	Address:
	Retail Properties of America, Inc.

	 
	 
	 
	2021 Spring Road, Suite 200

	 
	 
	 
	Oak Brook, Illinois 60523

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EXHIBIT A

FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED
The Board of Directors of Retail Properties of America, Inc.

Re: Undertaking to Repay Expenses Advanced

Ladies and Gentlemen:

This undertaking is being provided pursuant to that certain Indemnification Agreement dated the ____ day of     ___________________, 20___, by and between Retail Properties of America, Inc. (the "Company") and the undersigned Indemnitee (the "Indemnification Agreement"), pursuant to which I am entitled to advance of expenses in connection with [description of proceeding] (the "Proceeding").

Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm that at all times, insofar as I was involved as a [director or officer] of the Company, in any of the facts or events giving rise to the Proceeding, I (1) acted in good faith and honestly, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.

In consideration of the advance of Expenses by the Company for reasonable attorneys' fees and related expenses incurred by me in connection with the Proceeding (the "Advanced Expenses"), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established and which have not been successfully resolved as described in Section 7 of the Indemnification Agreement. To the extent that Advanced Expenses do not relate to a specific claim, issue or matter in the Proceeding, I agree that such Expenses shall be allocated on a reasonable and proportionate basis.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this day of __________________, _______ .

WITNESS:

________________________ (SEAL)

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