Document:

Exhibit 10.1

 

EXECUTION VERSION

 

November 13, 2019

 

Peter F. Riley

c/o The Howard Hughes Corporation

One Galleria Tower

13355 Noel Road, 22nd Floor

Dallas, Texas 75240

 

RE: Amendment to Employment Agreement

 

Dear Peter:

 

Reference is made to your Employment Agreement
with The Howard Hughes Corporation (the “Company”), dated as of November 6, 2017 (as amended or supplemented
from time to time, the “Employment Agreement”). This letter sets forth below certain amendments to the Employment
Agreement in connection with your agreed-upon relocation to the Houston, Texas metropolitan area. Capitalized terms used but not
defined in this letter have the meanings given to them in the Employment Agreement.

 

		·	Term: The Employment Period set forth in Section 1 of the Employment Agreement is hereby
extended to expire on December 31, 2025 (unless renewed in accordance with such Section 1 or earlier terminated pursuant to Section
3 of the Employment Agreement).
	 	 	 

		·	Compensation Increases: If you remain employed with the Company through November 6, 2022,
the Annual Base Salary and Target Bonus Amount will increase effective as of such date to $577,500 and $840,000, respectively.
For the avoidance of doubt, this means that the Target Bonus Amount for calendar year 2022 shall be prorated among the new Target
Bonus Amount based on the period of time commencing on November 6, 2022 and ending on December 31, 2022 (i.e., $840,000) and your
Target Bonus Amount in effect from January 1, 2022 and ending on November 5, 2022 (i.e., $800,000).
	 	 	 

		·	Relocation to Houston: You hereby agree to relocate your principal residence to the Houston,
Texas metropolitan area by no later than August 15, 2020 (or such other date communicated to you by the Company). In connection
with such relocation, and in full satisfaction of the Company’s obligations under Section 2(b)(v) of the Employment Agreement
in connection with such relocation, you shall be treated as a member of the most senior group of Company employees to whom relocation
benefits have been offered in connection with moving the Company’s headquarters to Houston, Texas.
	 	 	 

		·	Equity Vesting Upon Retirement: If you voluntarily retire from employment with the Company
on or after December 31, 2025, then you shall continue to be eligible to vest in any then-outstanding (i) Time Vesting LTIP Awards
on their regularly scheduled vesting dates, and (ii) Performance Vesting LTIP Awards based on actual achievement of the applicable
performance metrics in accordance with their terms. You acknowledge and agree that, to accommodate these additional vesting opportunities,
future Annual LTIP Awards may be awarded to you
in the form of restricted stock units (instead of restricted stock).

 

     

     

    

 

		·	Certain Terminations without Cause: If you are terminated by the Company without Cause prior
to December 31, 2025, then, in addition to the severance benefits available to you under Sections 4(a) or 4(d) of the Employment
Agreement, as applicable, in accordance with their terms, the Company shall (subject to your compliance with the condition set
forth in Section 4(e) of the Employment Agreement) additionally (i) purchase your principal residence in the Houston, Texas metropolitan
area from you at its fair market value on the date of your termination of employment (as determined by an independent, third-party
appraiser selected by the Company with experience in the Houston, Texas metropolitan area residential real estate market), and
(ii) reimburse your reasonable, documented, out-of-pocket moving expenses incurred in relocating you and your family and possessions
from your principal residence in the Houston, Texas metropolitan area to the Dallas, Texas metropolitan area (which, for the avoidance
of doubt, shall not include the cost of purchasing a new principal residence).
	 	 	 

		·	Waiver of Good Reason in Connection with Relocation to Houston, Texas: You hereby expressly
acknowledge and agree that you shall not have, and hereby waive, any right to resign your employment with the Company for Good
Reason in connection with the relocation of the Principal Location (and your principal residence) to the Houston, Texas, metropolitan
area.

 

The amendments to the
Employment Agreement set forth above will not be effective until this letter is executed by both you and the Company. Except as
expressly set forth in this letter, all terms and conditions of the Employment Agreement will continue in full force and effect
in accordance with their terms. This letter, together with the Employment Agreement, constitutes the entire understanding of you
and the Company with respect to the matters set forth herein, and may not be amended except by a written instrument signed by both
you and the Company. The captions in this letter are for reference purposes only, are not part of the substantive provisions hereof,
and shall have no force or effect. This letter shall be governed by and construed in accordance with the law of the State of Delaware
(other than principles of conflicts of laws) applicable to contracts made and to be performed entirely within that State. This
letter may be executed in counterparts (electronically or otherwise), each of which shall be an original, with the same effect
as if the signatures thereto were upon the same instrument.

 

*          *          *          *          *

 

[signature page follows]

 

    -2-

     

    

 

	Sincerely,	 
	 	 
	/s/ Paul Layne	 
	Paul Layne	 
	Chief Executive Officer	 
	 	 
	ACKNOWLEDGED AND AGREED:	 
	 	 
	/s/ Peter F. Riley	 
	Peter F. RileyExhibit

Exhibit 4.1
OAKTREE REAL ESTATE INCOME TRUST, INC.
Oaktree Investor Share Repurchase Arrangement
Effective as of September 11, 2019
Definitions

Company – shall mean Oaktree Real Estate Income Trust, Inc., a Maryland corporation.

Eligible Shares – shall mean Class I Shares acquired by the Oaktree Investor prior to the breaking of escrow in the Offering.

Excess Operating Cash Flow – shall mean, for any given month, the Company’s net cash provided by operating activities, if any, computed in a manner consistent with U.S. generally accepted accounting principles, less any amounts of such cash provided by operating activities used, or designated for use, to pay distributions to Stockholders.

Existing Share Repurchase Plan – shall mean the Class T, S, D and I Share Repurchase Plan, effective as of March 20, 2018, as amended or supplemented.

Monthly Repurchase Amount – shall mean, for any given month, the number of Eligible Shares having an aggregate NAV equal to (i) the net proceeds from new subscriptions for Shares in the Company’s public offering that month (which subscriptions will be accepted as of the first calendar day of the following month) less (ii) the aggregate repurchase price (excluding any amount of the aggregate repurchase price paid using Excess Operating Cash Flow) of Shares repurchased by the Company that month pursuant to the Existing Share Repurchase Plan.

NAV – shall mean the net asset value of the Company or a class of its Shares, as the context requires, determined in accordance with the Company’s valuation policies and procedures.

Oaktree Investor – shall mean Oaktree Fund GP I, L.P. or its affiliated designee.

Offering – shall mean the continuous public offering of the Shares.

Shares – shall mean shares of the Company’s common stock.

Stockholders – shall mean the holders of the Shares.

Transaction Price – shall mean the repurchase price per share for each class of Shares, which shall be equal to the then-current offering price before applicable selling commissions and dealer manager fees, as determined monthly.

Share Repurchase Arrangement

The Oaktree Investor has notified the Company of its intent to subscribe for Class I Shares in an amount such that, together with all other subscriptions for Shares, the escrow minimum offering amount for the Offering will be satisfied. In recognition of the Oaktree Investor supporting the escrow break for the Offering, the Company has adopted this Share Repurchase Arrangement.
 
Timing and Amount of Repurchase Offers

After escrow is broken for the Offering, subject to the limitations below, as of the last calendar day of each month the Company will offer to repurchase Eligible Shares from the Oaktree Investor in an amount equal to (1) the Monthly Repurchase Amount for that month plus (2) any Monthly Repurchase Amounts from prior months that have not yet been repurchased. The Oaktree Investor will notify the Company if and to what extent it elects to have the Company repurchase the Eligible Shares offered for repurchase in a manner agreed upon by the Company and the Oaktree Investor. The Company will make these repurchase offers until all Eligible Shares have been repurchased from the Oaktree Investor. For the avoidance of doubt, the amount of the repurchase offers to the Oaktree Investor are not subject to the volume limitations in the Existing Share Repurchase Plan.

Price of Repurchase Offers

The price per share for each repurchase from the Oaktree Investor will be the lesser of (1) the initial cost of the Eligible Shares when purchased by the Oaktree Investor, which, for the avoidance of doubt, will be $10.00 per share, and (2) the Transaction Price for the Class I Shares in effect at the time of repurchase. There shall be no obligation by the Oaktree Investor to proceed 

with a repurchase in the event the Transaction Price shall apply for the month in question pursuant to the immediately preceding sentence.

Limitations

Notwithstanding the foregoing, no repurchase offer will be made to the Oaktree Investor for any month in which (1) the 2% monthly or 5% quarterly repurchase limitations in the Existing Share Repurchase Plan have been decreased or (2) the full amount of all Shares (excluding the Eligible Shares) requested to be repurchased under the Existing Share Repurchase Plan is not repurchased. Additionally, should repurchase requests, in the Company’s judgment, place an undue burden on the Company’s liquidity, adversely affect the Company’s operations or risk having an adverse impact on the Company as a whole, the Company may elect not to offer to repurchase shares from the Oaktree Investor, or may offer to purchase less than the Monthly Repurchase Amount. Further, the Company’s board of directors may modify, suspend or terminate this share repurchase plan if it deems such action to be in the best interest of the Company and its Stockholders. Material modifications to and suspensions of this share repurchase arrangement will be promptly disclosed to Stockholders in a prospectus supplement (or post-effective amendment if required by the Securities Act of 1933, as amended) or special or periodic report filed by the Company. In addition, the Company may in its sole discretion determine to suspend purchases under this share repurchase arrangement if it is prohibited from purchasing Shares by a legal, contractual or regulatory restriction applicable to it or its affiliates.

The Oaktree Investor will not request that Eligible Shares be repurchased under the Existing Share Repurchase Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]