Document:

exv10w1

Exhibit 10.1

AMENDED AND RESTATED

ADVISORY AGREEMENT

AMONG

PACIFIC OFFICE PROPERTIES TRUST, INC.,

PACIFIC OFFICE PROPERTIES, L.P.

AND

PACIFIC OFFICE MANAGEMENT, INC.

Dated as of March 3, 2009

 

 

AMENDED AND RESTATED 

 ADVISORY AGREEMENT

     THIS AMENDED AND RESTATED ADVISORY AGREEMENT (“Agreement”), made as of March 3, 2009, among
PACIFIC OFFICE PROPERTIES TRUST, INC., a Maryland corporation (“POP”), PACIFIC OFFICE PROPERTIES
L.P., a Delaware limited partnership (the “Operating Partnership”, and together with POP, the
“Company), and PACIFIC OFFICE MANAGEMENT, INC., a Delaware corporation (the “Advisor”).

     WHEREAS, POP, through the Operating Partnership, owns, manages, and operates real estate
assets;

     WHEREAS, POP is and intends to continue to be qualified as a “real estate investment trust”
within the meaning of Section 856(a) of the Internal Revenue Code of 1986, as amended;

     WHEREAS, the Company retained the Advisor for the purpose of providing day-to-day management
and administrative services to the Company as described in that certain Advisory Agreement, dated
as of March 19, 2008, among POP, the Operating Partnership and the Advisor (the “Original
Agreement”); and

     WHEREAS, the parties desire that the terms and conditions of the Original Agreement be amended
and restated in their entirety pursuant to the terms of this Agreement;

     NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein set
forth, the parties hereto agree as follows:

	1.	 	DEFINITIONS

	 	1.1	 	Definitions. As used in this Agreement, the following terms have the meanings set
forth below.
	 
	 	 	 	“Advisor” has the meaning set forth in the Preamble.
	 
	 	 	 	“Advisor Affiliate” means the Advisor, Shidler West Investment Partners, L.P.,
Shidler Hawaii Investment Partners, LLC, and any entity Controlling, Controlled by or
under common Control with the Advisor.
	 
	 	 	 	“Corporate Management Fee” has the meaning set forth in Section 6.1.
	 
	 	 	 	“Board” means the Board of Directors of POP.

 

 

	 	 	 	“Cause” means: (i) the Advisor’s continuous and intentional failure to perform its duties
under this Agreement after written notice from the Company to the Advisor of such
non-performance; (ii) the Advisor’s commission of any act of gross negligence in the
performance of its duties under this Agreement; (iii) the Advisor’s commission of any act
of fraud, misappropriation of funds, or embezzlement against the Company; (iv) the
Advisor’s commission of any other willful and intentional misconduct which is materially
injurious to the Company, monetarily or otherwise; and (v) the Advisor’s default in the
performance or observance of any material term, condition or covenant contained in this
Agreement to be performed or observed on its part, when such default continues for a
period of thirty (30) days after written notice thereof from the Company specifying such
default and requesting that the same be remedied within such thirty (30) day period;
provided, however, the Advisor shall have an additional sixty (60) days to cure any such
foregoing default if (A) such default cannot reasonably be cured within thirty (30) days
but can be cured within ninety (90) days, and (B) the Advisor shall have commenced to cure
such default within the initial thirty (30) day period and thereafter diligently proceeds
to cure the same within ninety (90) days of the date of the Company’s original notice of
the default.
	 
	 	 	 	“Code” means Internal Revenue Code of 1986, as amended from time to time.
	 
	 	 	 	“Common Stock” means shares of POP’s common stock, $.0001 par value per share, or Class
B common stock, $.0001 par value per share.
	 
	 	 	 	“Company” has the meaning set forth in the Preamble.
	 
	 	 	 	“Company Account” has the meaning set forth in Section 3.6.
	 
	 	 	 	“Company Property” means any real property owned or ground leased,, directly or
indirectly, by the Company, including any joint venture or other interest in real property
owned directly or indirectly by the Company.
	 
	 	 	 	“Control” means the direct or indirect ownership or more than 50% of the beneficial
equity interests and ownership of a majority of the voting interests of an entity.
	 
	 	 	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.
	 
	 	 	 	“GAAP” means generally accepted accounting principles in the United States of America as
of the date applicable.
	 
	 	 	 	“Independent Directors” means the directors of POP; (a) who are not employees of either the
Company, the Advisor or any of their respective subsidiaries, (b) are not directors of the
Advisor, and (c) do not have a material financial interest in the Advisor.

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	 	 	 	“LP Direction Votes” has the meaning set forth in Section 4.1.
	 
	 	 	 	“Master Agreement” means that certain Master Formation and Contribution Agreement by and
between Arizona Land Income Corporation, an Arizona corporation, and POP Venture, LLC, a
Delaware limited liability company, dated as of October 3, 2006, as subsequently amended.
	 
	 	 	 	“Net Book Value of the Company Property” means the gross cost basis of the Company
Property, less the accumulated depreciation and amortization attributable to the gross
cost basis of the Company Property in accordance with accounting principles generally
accepted in the United States and as reflected and or derived from the consolidated
financial statements of the Company as of a date relevant.
	 
	 	 	 	“Operating Partnership” has the meaning set forth in the Preamble.
	 
	 	 	 	“Partnership Agreement” means the Agreement of Limited Partnership of the Operating
Partnership, as hereafter amended, supplemented and modified.
	 
	 	 	 	“Partnership Units” shall have the meaning ascribed thereto in the Partnership
Agreement.
	 
	 	 	 	“Person” means any individual, corporation, partnership, joint venture, limited liability
company, estate, trust, unincorporated association, any federal, state, county or
municipal government or any bureau, department or agency thereof and any fiduciary acting
in such capacity on behalf of any of the foregoing.
	 
	 	 	 	“POP” has the meaning set forth in the Preamble.
	 
	 	 	 	“Property Management Agreements” has the meaning set forth in Section 2.2.
	 
	 	 	 	“Proportionate Voting Preferred Stock” means shares of Proportionate Voting Preferred
stock, $.0001 par value per share, of POP issued to the Advisor.
	 
	 	 	 	“Records” has the meaning set forth in Section 3.7.1.
	 
	 	 	 	“Securities Act” means the Securities Act of 1933, as amended from time to time.
	 
	 	 	 	“SOX” means The Sarbanes-Oxley Act of 2002, as amended from time to time.
	 
	 	 	 	“Subsidiary” has the following meaning: a Person is a Subsidiary of another Person if the
voting interests of such subsidiary Person are more than 50% owned by such other Person or
a majority of the outstanding equity interests of such subsidiary Person are owned,
directly or indirectly, by such other Person.

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	2.	 	ENGAGEMENT BY COMPANY

2.1 Engagement of Advisor. Subject to the terms and conditions hereinafter set
forth, the Company hereby engages the Advisor as its agent to manage, operate and
administer the assets, liabilities and business of the Company and its Subsidiaries, and
the Advisor hereby agrees to perform each of the duties set forth herein in accordance with
the provisions of this Agreement. By the execution and delivery of this Agreement, each
party represents and warrants that (i) it is duly organized, validly existing, in good
standing under the laws of the state of its organization and has all requisite power and
authority to enter into and perform its obligations under this Agreement, (ii) the person
signing this Agreement for such party is duly authorized to execute this Agreement on such
party’s behalf, (iii) the execution and delivery of this Agreement by such party and the
performance by such party of its obligations hereunder do not violate any provisions of
such party’s constituent documents, constitute a breach or default by any such party under
any material agreement to which such party is a signatory or cause such party to violate
any federal or state law, regulation or rule applicable to such party.

2.2 Engagement of Advisor Affiliates. For each Company Property, the Company, or
the subsidiary or affiliate of the Company that is the owner or ground lessee of such
Company Property, shall enter into a separate property management agreement (collectively,
the “Property Management Agreements") with an Advisor Affiliate designated by the Advisor,
pursuant to which the Advisor Affiliate shall be entitled to receive fees for property
management services. All property management fees payable to the Advisor Affiliate pursuant
to a Property Management Agreement shall be market-rate compensation based on the
prevailing market rates for similar services provided on an arms-length basis in the area
in which the subject property is located, and shall require the prior written approval of a
majority of Independent Directors of the Board. Such Property Management Agreements may
only be terminated by the Company effective upon termination of this Agreement and shall
contain commercially reasonable and customary terms for such arrangements. Notwithstanding
anything in this Section 2.2 to the contrary, in the case of a Company Property for which
an Advisor Affiliate provides property management services pursuant to a written agreement
(each, an “Existing Management Agreement") at the time such property becomes Company
Property, such Existing Management Agreement shall continue to remain in full force and
effect to the extent so provided in such Existing Management Agreement, and the Company
shall not be obligated to enter into a Property Management Agreement pursuant to this
Section 2.2 for so long as such Existing Management Agreement remains in full force and
effect.

	3.	 	RESPONSIBILITIES, AUTHORITY AND RIGHTS OF ADVISOR

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3.1 General Responsibilities. Subject to the supervision of the Board, the Advisor
shall:

3.1.1. Provide executive and administrative personnel, office space and office
services required in rendering services to the Company;

3.1.2. Manage, operate and administer the Company’s day-to-day operations, business
and affairs including, without limitation, the authority to oversee and conduct the
Company’s investment activities in accordance with guidelines and policies adopted and
implemented by the Board, monitor leases, mortgages and debt obligations, make payment of
the Company’s debt and obligations, make payment of dividends or distributions to POP’s
stockholders, maintain the appropriate back-office infrastructure to perform such
administrative functions, and perform such other services to the Company as the Company
may direct from time to time;

3.1.3. Serve as the Company’s consultant with respect to the periodic review of the
investment criteria and parameters for the investments, borrowings and operations of the
Company and make recommendations as to the foregoing to the Board for its approval;

3.1.4. Counsel the Company in connection with policy decisions to be made by the
Board;

3.1.5. Use commercially reasonably efforts to cause expenses incurred by the
Company or on its behalf to be reasonable and customary and within any budgeted
parameters or expense guidelines set by the Board from time to time;

3.1.6. Make recommendations to the Board regarding the Company’s capital structure
and capital raising activities;

3.1.7. Coordinate and manage operations of any joint venture or co-investment interests
held by the Company, and conduct all matters on behalf of the Company within the joint
venture or otherwise with co-investment partners.

3.1.8. Communicate on behalf of the Company with the Company’s investors,
stakeholders, analysts and other interested parties, which communication shall include, but
not be limited to, the maintenance of an investor relations program on behalf of the
Company;

3.1.9. Handle and resolve all claims, disputes or controversies (including all
litigation, arbitration, settlement or other proceedings or negotiations) in which the
Company may be involved or to which the Company may be subject arising out of the
Company’s day-to-day operations, subject to such limitations or parameters as may be
imposed form time to time by the Board;

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3.1.10. Evaluate and recommend to the Board potential hedging activities on the
Company’s behalf, consistent with POP’s status as a real estate investment trust and
with the Company’s investment guidelines;

3.1.11. Investigate, analyze and select possible investment opportunities and
originate, acquire, finance, retain, sell, negotiate for prepayment, restructure or
dispose Company investments consistent with the guidelines adopted and implemented by
the Board;

3.1.12. Assist the Company in developing criteria for asset purchase commitments that
are specifically tailored to the Company’s investment objectives and make available to the
Company its knowledge and experience with respect to real estate and other real estate
related assets;

3.1.13. Supervise, on the Company’s behalf, the Advisor Affiliates who provide, at the
Company’s expense, property management services and other services pursuant to Property
Management Agreements contemplated in Section 2.2;

3.1.14. Subject to the activities to be performed by the Advisor pursuant to
Section 6.3, engage and supervise, on the Company’s behalf and at the Company’s
expense, independent contractors who provide investment banking, mortgage brokerage,
securities brokerage and other financial services and such other services as may be
required relating thereto;

3.1.15. Invest or reinvest any of the Company’s money or securities, including
investing in short-term opportunities pending deployment of capital in long-term
opportunities.

3.1.16. Make recommendations to the Board regarding payment of fees, costs and
expenses, and payments of dividends or distributions to the Company’s stockholders and
limited partners;

3.1.17. Cause the Company to obtain appropriate credit facilities or other
financings for the investments consistent with the guidelines adopted and
implemented by the Board.

3.1.18. Cause the Company to obtain insurance covering such risks, with such insurers
and on such terms as the Company may reasonably determine.

3.1. 19. Monitor the operating performance of the investments and provide
periodic reports with respect thereto the Board.

3.1.20. Make recommendations to the Company regarding the retention of independent
accountants and legal counsel, as applicable, to assist in developing appropriate
accounting procedures, compliance procedures and testing systems with respect to
financial reporting obligations and compliance with the real estate investment trust
provisions of the Code and the regulations promulgated thereunder and to conduct
quarterly compliance reviews with respect thereto;

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3.1.21. Assist the Company in complying with all regulatory requirements applicable
to it in respect of the Company’s business activities, including preparing or causing to
be prepared all consolidated financial statements required under applicable regulations
and contractual undertakings and all reports and documents, if any, required under the
Exchange Act;

3.1.22. Take all necessary actions to enable the Company to make required tax filings and
reports, including soliciting stockholders for required information to the extent
provided by the real estate investment trust provisions of the Code and the regulations
promulgated thereunder.

3.1.23. Make recommendations to the Company regarding the maintenance of the
Company’s qualification for taxation as a real estate investment trust and monitor
compliance with the various real estate investment trust qualification tests and other
rules set out in the Code and the Treasury Regulations promulgated thereunder and use
commercially reasonable efforts to cause the Company to qualify for taxation as a REIT.

3.1.24. Counsel the Company regarding the maintenance of the Company’s exclusion
from status as an investment company under the Investment Company Act of 1940, as
amended, and monitor compliance with the requirements for maintaining such exclusion and
using commercially reasonable efforts to cause the Company to maintain such exclusion
from status as an investment company under the Investment Company Act;

3.1.25. Cause the Company to qualify to do business in all applicable jurisdictions and to
obtain and maintain all appropriate licenses.

3.1.26. Perform such other services as may be required from time to time for
management and other activities relating to the Company’s assets as the Board shall
reasonably request or the advisor shall deem appropriate under the particular
circumstances; and

3.1.27. Use commercially reasonable efforts to cause the Company to comply with
all other applicable laws.

3.2 Authority. The Advisor shall have full discretion and authority pursuant to this
Agreement to perform the duties and services specified in Section 3.1 hereof in such manner as the
Advisor reasonably considers appropriate, subject to the terms and restrictions contained in POP’s
Articles of Incorporation and Bylaws, as the same may be amended from time to time, and further
subject to the Operating Partnership’s Certificate of Limited Partnership and the Partnership
Agreement. In furtherance of the foregoing, POP and the Operating Partnership hereby designate and
appoint the Advisor as the agent

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and attorney-in-fact of POP and the Operating Partnership, with full power and authority and
without further approval of POP and the Operating Partnership, for purposes of accomplishing on
its behalf any of the foregoing matters or any matters which are properly the subject matter of
this Agreement. The Advisor may execute, in the name and on behalf of POP and the Operating
Partnership and their affiliates, all such documents and take all such other actions which the
Advisor reasonably considers necessary or advisable to carry out its duties hereunder.

3.3 Subcontract of Services. The Company acknowledges and agrees that any services to be
performed by the Advisor hereunder may be provided pursuant to subcontracts with third party
providers or pursuant to arrangements with affiliates of POP. In such connection, the Advisor
shall disclose to the Board upon its request the terms of any sub-contracting arrangement entered
into by the Advisor with third parties or affiliates of POP with respect to the services to be
provided by the Advisor hereunder.

3.4 Reporting Requirements. As frequently as the Advisor may deem necessary or advisable,
or at the direction of the Board, the Advisor shall prepare, or cause to be prepared, with
respect to any investment (i) reports and information on the Company’s operations and asset
performance, and (ii) other information reasonably requested by the Company.

3.5 Devotion of Time: Exclusivity. The Advisor will provide a management team to
deliver the management services to the Company hereunder, with the members of such management team
devoting such of their time to the management of the Company as the Advisor deems reasonably
necessary and appropriate for the proper performance of all of the Advisor’s duties hereunder,
commensurate with the level of activity of the Company from time to time. The Company shall have
the benefit of the Advisor’s reasonable judgment and effort in rendering services and, in
furtherance of the foregoing, the Advisor shall not undertake activities which, in its reasonable
judgment, will substantially adversely affect the performance of its obligations under this
Agreement. The Advisor shall at all times have and operate as its sole business the activities, the
actions, services, responsibilities, obligations and business contemplated by this Agreement. The
Advisor shall take all reasonable steps to ensure that all of its officers, directors and managers
and any persons or entities (and any officers, directors and managers of any such entity) to which
it subcontracts any of its services hereunder shall agree, as a condition to their acting in such
capacities, to agree not to compete with the Company or utilize any of the Company’s confidential
information to the detriment of the Company.

3.6 Bank Accounts. At the direction of the Board, the Advisor may establish and maintain,
as an agent and signatory on behalf of the Company, one or more bank accounts in the name of the
Company or any other Subsidiary (any such account, a “Company Account"), collect and deposit funds
into any such Company Account and disburse funds from any such Company Account, under such terms
and conditions as the Board may approve. The Advisor shall from time-to-time render appropriate
accountings of such collections and payments to the Board and, upon request, to the auditors of the
Company.

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	 	3.7	 	Book and Records; Confidentiality.

3.7.1 Records. The Advisor shall maintain appropriate books of account and records
relating to services performed by the Advisor pursuant to this Agreement (the “Records”),
and the Records shall be accessible for inspection by representatives of the Company at
any time during normal business hours. The Advisor shall have responsibility for the
maintenance and safekeeping of the Records.

3.7.2. Confidentiality. The Advisor shall keep confidential any nonpublic information
obtained in connection with the services rendered under this Agreement and shall not
disclose any such information (or use the same except in furtherance of its duties under
this Agreement), except (i) with the prior written consent of the Board; (ii) to legal
counsel, accountants, and other professional advisors; (iii) to appraisers, financing
sources and others in the ordinary course of the Company’s business; (iv) to governmental
officials having jurisdiction over the Company; (v) in connection with any governmental or
regulatory filings of the Company or disclosure or presentations to Company investors; or
(vi) as required by law or legal process to which the Advisor or any Person to whom
disclosure is permitted hereunder is a party. The foregoing shall not apply to information
which has previously become available through the actions of a Person other than the
Advisor not resulting from the Advisor’s violation of this Section 3.7.2. The provisions of
this Section 3.7.2 shall survive the expiration or earlier termination of this Agreement
for a period of two years.

	 	3.8	 	Obligations of the Advisor; Restrictions.

3.8.1. Internal Control. The Advisor shall (i) establish and maintain (and require
property managers and other contractors to establish and maintain) a system of internal
accounting and financial controls, (including, without limitation, internal controls to
safeguard records and to permit the Company to comply with the Exchange Act and SOX, and
designed to provide reasonable assurance of the reliability of financial reporting, the
effectiveness and efficiency of operations and compliance with applicable laws), (ii)
maintain records for each Company investment on a GAAP basis, (iii) develop accounting
entries and reports required by the Company to meet its reporting requirements under
applicable laws, (iv) consult with the Company, with respect to proposed or new
accounting/reporting rules identified by the Advisor or the Company, and (v) prepare
quarterly and annual financial statements as soon after the end of each such period as may
be reasonably requested and general ledger journal entries and other information necessary
for the Company’s compliance with applicable laws, including Regulations S-X, the Exchange
Act, Securities Act and SOX, in accordance with GAAP and cooperate with the Company’s
registered public accounting firm in connection with the auditing or review of such
financial statements, the cost of

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any such audit or review to be paid by the Company. Without limiting the generality of the
foregoing, the Advisor shall permit the Company’s registered public accounting firm to
review, audit and analyze the operations and controls of the Advisor to the extent
required by such accounting firm in connection with any audit or review by such accounting
firm of the internal controls of the Company.

3.8.2. Management Letters. The Advisor shall provide to the Company, within fifteen
(15) days of receipt by the Advisor, communications formally issued and submitted (devoid
of draft qualification and duly executed) by the independent accounting firm of the
Company required under Statement of Auditing Standards No. 112: Communicating Internal
Control Related Matters Identified in an Audit or any replacement or substituted
requirement (the “Management Letter”). In addition, the Advisor shall provide to the
Company, within 15 days of submission by the Advisor, communications formally issued and
submitted (devoid of draft qualifications and duly executed) to the independent accounting
firm of the Company in response to the Management Letter.

3.8.3. Restrictions. The Advisor shall refrain from taking any action which, in its
judgment made in good faith, or in the judgment of the Board as transmitted to the Advisor
in writing, (i) would adversely affect the status of the Company as a real estate
investment trust as defined and limited in the Code or the regulations and rulings
thereunder, or (ii) is not in compliance with the investment guidelines and policies
established by the Board, or (iii) violates any law, ordinance, rule or regulation of any
governing body or agency having jurisdiction over the Company or its securities or would
otherwise not be permitted by the Company’s constituent documents, or (iv) would make the
Company subject to the Investment Company Act of 1940, as amended. If the Advisor is
ordered to take any such action by the Board, the Advisor shall promptly notify the Board
of the Advisor’s judgment that such action would adversely affect such status or violate
any such law, ordinance, rule or regulation or constituent documents, and shall refrain
from taking such action pending further clarification or instructions from the Board. In
any event, the Advisor, the Advisor Affiliates and Subsidiaries, and their respective
members, stockholders, partners, managers, directors, officers, employees and agents shall
have no liability to the Company or the Operating Partnership, the Board or any of the
Company’s stockholders, members or partners for any such action, and the Advisor shall be
indemnified by the Company for any such action. In all events, the Advisor, its directors,
managers, officers, stockholders and employees shall not be liable to the Company, the
Board or the Company’s stockholders for any act or omission by the Advisor, its directors,
officers, managers, stockholders or employees taken in good faith except as set forth in
Section 5.1.

	4.	 	PROPORTIONATE VOTING PREFERRED STOCK

4.1 Voting. The Advisor shall cast all votes with respect to the share of Proportionate
Voting Preferred Stock in proportion to the votes (the “LP Direction Votes”) that the

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Advisor receives from the holders of Partnership Units (other than POP) entitled to vote
with respect to the share of Proportionate Voting Preferred Stock. The Advisor shall not cast any
votes with respect to the share of Proportionate Voting Preferred Stock unless it receives LP
Direction Votes with respect thereto.

4.2 Voting Procedure. In order to give effect to the provisions of Section 4.1, the Advisor
agrees to promptly deliver definitive proxy materials or other approved solicitation documents
received from the Company as to any matter as to which votes or consents are sought by POP from the
holder of Proportionate Voting Preferred Stock. In connection with such delivery, the Advisor shall
not make any recommendation to any holder of Common Stock or Partnership Units with respect to how
or whether such holder should vote its Common Stock or Partnership Units.

	5.	 	INDEMNIFICATION

	 	5.1	 	Indemnity.

5.1.1. The Company shall indemnify, defend and hold harmless the Advisor, and its
directors, officers, stockholders, affiliates, agents and employees (collectively, the
“Advisor Indemnitees”) from and against any and all liability, claims, demands, expenses,
fees, fines, suits, losses and causes of action of every kind and nature arising from the
performance by the Advisor of its obligations under this Agreement, other than any
liability, claim, demand, expense, fee, fine, suit, loss or cause of action arising from
(i) any acts of the Advisor or the Advisor Indemnitees which are outside the scope of
authority of the Advisor under this Agreement, unless the Advisor or the Advisor
Indemnitees acted in good faith and reasonably believed that it or their conduct was within
the scope of authority granted to the Advisor under this Agreement, or (ii) breach of any
material term of this Agreement where such breach constitutes gross negligence or willful
misconduct, or (iii) violation by the Advisor or the Advisor Indemnitees of any applicable
laws, subject to the provisions of Section 3.8.3 hereinabove.

5.1.2. The Advisor shall indemnify, defend and hold harmless the Company, and its
directors, officers, stockholders, affiliates, agents and employees (collectively, the
“Company Indemnitees”) from and against any and all liability, claims, demands, expenses,
fees, fines, suits, losses and causes of action of every kind and nature arising from any
(i) acts of the Advisor which are outside the scope of authority of the Advisor under this
Agreement, unless the Advisor or the Advisor Indemnitees acted in good faith and
reasonably believed that it or their conduct was within the scope of authority granted to
the Advisor under this Agreement, or (ii) breach of any material term of this Agreement
where such breach constitutes gross negligence or willful misconduct, or (iii) violation
by the Advisor or the Advisor Indemnitees of any applicable laws, subject to the
provisions of Section 3.8.3 hereinabove.

5.2 Additional Costs; Survival. The obligation to indemnify set forth in Section 5.1 above
shall include the payment of reasonable attorneys’ fees and investigation costs, as

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well as other reasonable costs and expenses incurred by the indemnified party in
connection with any such claim. At the option of, and upon receipt of notice from, the
indemnified party, the indemnifying party shall promptly and diligently defend any such
claim, demand, action or proceeding. The provisions of Sections 5.1 and 5.2 hereof shall
survive the expiration or earlier termination of this Agreement.

5.3 Insurance. The Advisor shall have the right to be named as an additional
insured
on all policies of liability insurance maintained by the Company including, without
limitation, the Commercial General Liability, Comprehensive Automobile Liability, Errors
and Omissions, Umbrella and Excess Liability Insurance policy. Certificates of Insurance
evidencing compliance with the provisions of the immediately preceding sentence shall be
furnished to the Advisor on request.

	6.	 	COMPENSATION

     The Advisor agrees to accept from the Company, and the Company agrees to pay to the Advisor,
the compensation set forth on Exhibit A attached hereto and made a part hereof by reference (the
“Compensation Schedule”), on the terms and conditions set forth herein, as full and complete
consideration for all of the services to be rendered by the Advisor pursuant to this Agreement.
Except as otherwise herein provided, the Advisor shall not be entitled to receive any other fees or
compensation from the Company.

	7.	 	EXPENSES

     Except as expressly set forth herein, the Advisor shall be responsible for, and shall not be
entitled to reimbursement from the Company for, any expenses incurred by the Advisor in connection
with the performance of its obligations under this Agreement (the “Advisor Expenses”). By way of
example, but not limitation, the Advisor shall not be entitled to reimbursement for office rent,
equipment costs, telecommunications expenses, office supplies, travel costs, or labor costs
incurred with respect to employees or subcontractors engaged by the Advisor.

     The Company shall be responsible for all direct expenses incurred by the Company or the
Operating Partnership for certain services for which the Company or the Operating Partnership is
the primary service obligee (the “Company Direct Expenses”). The Company Direct Expenses are as
follows: (i) fees and related expenses attributable to services rendered by the independent
accounting firm retained by the Company for the quarterly review and annual audit of the Company’s
financial statements; and (ii) fees and related expenses attributable to services rendered by the
internal control consultants of the Company for the design, implementation, testing and periodic
monitoring of the Company’s internal control structure; and (iii) fees paid to the directors of the
Company as compensation for their service on the Board; and (iv) insurance premiums incurred for
directors’ and officers’ coverage for the directors and officers of the Company and (vi) fees and
expenses of audit and audit related services, legal services, printer services and filing fees
resulting from any capital raising efforts and initiatives.

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     The annual Corporate Management Fee, as set forth on the Compensation Schedule, shall be
reduced by an amount equal to the annual Company Direct Expenses up to an amount equal to fifty
percent (50%) of the Corporate Management Fee. The Company Direct Expenses, whether paid by the
Company or paid by the Advisor and reimbursed to the Advisor by the Company, shall reduce the
Corporate Management Fee for the quarter in which such Company Direct Expenses were incurred;
provided, however, that the Corporate Management Fee shall not be reduced by more than fifty
percent (50%) annually. The quarterly reduction of the Corporate Management Fee for Company Direct
Expenses shall occur in the calendar quarter following the quarter in which the Company Direct
Expenses were incurred.

	8.	 	TERM OF AGREEMENT; TERMINATION

8.1 Term. Subject to any early termination provisions expressly set forth in this
Agreement, the term of this Agreement shall commence on the date set forth above and shall
terminate on March 19, 2018.

	 	8.2	 	Right of Termination.

8.2.1 The Company shall have the right to terminate this Agreement, with or without
Cause at any time upon thirty (30) days’ prior written notice to the Advisor, by
the vote of a majority of the Company’s Independent Directors. In the event that
this Agreement is terminated by the Company for Cause, the Advisor shall be
entitled only to payment of all earned and unpaid Fees, as set forth on the
Compensation Schedule, through the date of termination and all accrued and
unreimbursed Company Direct Expenses through the date of termination. In the event
that this Agreement shall have been terminated by the Company for Cause, the
Company shall have the right to offset any direct damages to the Company caused by
the actions giving rise to such termination for Cause against any amount otherwise
payable under this Section 8.2.

8.2.2. The Advisor may terminate this Agreement effective upon 30 days prior
written notice of termination to the Company in the event that the Company shall
default in the performance or observance of any material term, condition or
covenant in this Agreement and such default shall not be cured within thirty (30)
days after written notice thereof to the Company which notice shall specify the
nature of such default.

8.3 Internalization Fee. In the event that the Company terminates this Agreement in
order to internalize its management and become self-managed, the Company will be obligated
to pay the Advisor an internalization fee equal to $1,000,000 plus all accrued and
unreimbursed Company Direct Expenses owed pursuant to Section 7. The Advisor shall not be
reimbursed for any termination fees or other amounts owing to any third party retained on a
subcontract basis by the Advisor with regard to the services to be provided by the Advisor
hereunder.

8.4 Continued Responsibility. Notwithstanding termination of this Agreement as
provided above, the Advisor (i) shall continue to perform all of its obligations under
Section 4 of this Agreement, and (ii) shall use its best efforts to perform its duties
under this Agreement until the effective date of the termination of this Agreement.

13

 

8.5 Responsibilities Upon Termination. Upon termination of this Agreement, the
Advisor shall forthwith deliver the following to the Company, as applicable, on the
effective date of termination:

8.5.1. A final accounting reflecting the balance of funds held on behalf of
the Company as of the date of termination;

8.5.2. All files, records, documents and other property of any kind relating
to the Company, including, but not limited to, computer records, contracts, leases,
warranties, bank statements, rent rolls, employment records, plans and
specifications, inventories, correspondence, tenant records, receipts, paid and
unpaid bills or invoices, maintenance records;

8.5.3. Agreements to terminate all agreements with Advisor Affiliates and
third parties retained on a subcontracting basis by the Advisor, in each case, with
respect to the services to be provided by the Advisor hereunder; and

8.5.4. Evidence of the change of Advisor’s name to something that is not
confusingly similar to “Pacific Office.”

	9.	 	MISCELLANEOUS PROVISIONS

9.1 Notice. Any notice required or permitted under this Agreement shall be in
writing and shall be given by being delivered to the following addresses of fax numbers of
the parties hereto:

	 	 	 	 	 
	          To the Company:	 	Pacific Office Properties Trust, Inc.
	 	 	233 Wilshire Boulevard, Suite 830
	 	 	Santa Monica, California 90401
	 

	 	Attn:
	 	Jim Kasim and
	 

	 	 	 	Tamara Edwards
	 
	 	 	 	 
	          To the Advisor:	 	Pacific Office Management, Inc.
	 	 	233 Wilshire Boulevard, Suite 830
	 	 	Santa Monica, California 90401
	 

	 	Attn:
	 	Jim Kasim and
	 

	 	 	 	Tamara Edwards

or to such other address or fax number as may be specified from time to time by such party in
writing.

14

 

9.2 No Joint Venture. Nothing in this Agreement shall be construed to make the Company
and the Advisor partners or joint venturers or impose any liability as such on either of them.

9.3 Release of Money or Other Property Upon Written Request. The Advisor agrees that any
money or other property of the Company held by the Advisor under this Agreement shall be held by
the Advisor as custodian for the Company and the Advisor’s records shall be clearly and
appropriately marked to reflect the ownership of such money or other property by the Company. Upon
the receipt by the Advisor of a written request signed by a duly authorized officer of the Company
requesting the Advisor to release the Company any money or other property then held by the Advisor
for the account of the Company under this Agreement, the Advisor shall release such money or other
property to the Company within a reasonable period of time, but in no event later than thirty (30)
days following such request. The Advisor, its directors, officers, managers, stockholders and
employees will not be liable to the Company, any Subsidiary, any of their directors, officers,
stockholders, managers, owners or partners for any acts or omissions by the Company in connection
with the money or other property released to the Company in accordance with the terms hereof. The
Company shall indemnify the Advisor and its Advisor Affiliates, officers, directors, stockholders,
employees, agents and successors and assigns against any and all expenses, losses, damages,
liabilities, demands, charges and claims of any nature whatsoever which arise in connection with
the Advisor’s release of such money or other property to the Company in accordance with the terms
of this Section 9.3.

9.4 Entire Agreement: Amendment. This Agreement contains the entire agreement of the
parties hereto with respect to the subject matter hereof. This Agreement shall not be amended or
modified in any respect unless agreed to in writing by the Company and the Advisor.

9.5 Governing Law Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of California without reference to principles of conflicts of
law. The parties: (x) agree that any suit, action or legal proceeding relating to this Agreement
shall be brought exclusively in any federal court located in California, if federal jurisdiction is
available, and, otherwise, in any state court located in such state; (y) consent to the
jurisdiction of each such court in any such suit, action or proceeding; and (z) waive any objection
which they may have to the laying of venue in any such suit, action or proceeding in either such
court. Further, the parties hereby consent and submit to the personal jurisdiction of the
California courts, both state and federal, and hereby waive any and all objections now or hereafter
existing to personal jurisdiction of said courts over them. The parties waive, to the extent
permitted under applicable law, any right they may have to assert the doctrine of forum non
conveniens or to object to venue to the extent any proceeding is brought in accordance with this
section.

15

 

9.6 Assignment. This Agreement may not be assigned by any party hereto without the prior
written consent of the other parties hereto; provided, however, that the Advisor shall be
permitted to assign this Agreement or any of its rights hereunder, and delegate any and all of
its responsibilities and obligations hereunder, to an Advisor Affiliate, provided that the
Advisor shall remain fully responsible to the Company for all errors or omissions of such
assignee notwithstanding and following such assignment.

9.7 No Waiver. Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power or privilege preclude any other
or further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.

9.8 Headings. The headings of various Sections in this Agreement are for convenience
only, and are not to be utilized in construing the content or meaning of the substantive
provisions hereof.

9.9 Pronouns and Plurals. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns, pronouns and verbs shall include the plural and vice versa.

9.10 Further Action. The parties shall execute and deliver all documents, provide all
information and take or refrain from taking action as may be necessary or appropriate to achieve
the purposes of this Agreement.

9.11 Binding Effect. This Agreement shall be binding upon and insure to the benefit of
the parties hereto and their heirs, executors, administrators, successors, legal representatives
and permitted assigns.

9.12 Counterparts. This Agreement may be executed in any number of identical
counterparts, any of which may contain the signatures of less than all parties, and all of which
together shall constitute a single agreement.

9.13 Partial Invalidity. The provisions hereof shall be deemed independent and
severable, and the invalidity or partial invalidity or enforceability of any one provision
shall not affect the validity or enforceability of any other provision hereof.

9.14 Fax Signatures. Any signature page hereto delivered by a fax machine or telecopy
machine shall be binding to the same extent as an original signature page, with regard to any
agreement subject to the terms hereof or any amendment thereto. Any party who delivers such a
signature page agrees to later deliver an original counterpart to any party that requests it.

16

 

9.15 Construction. The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rule of strict construction will be
applied against any party. Any reference to any federal, state, local or foreign statute or law,
statute, rule or regulation will be deemed to also refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The use of the word “including” and similar
expressions means “including without limitation” and unless the context otherwise requires,
“neither,” “nor,” “any,” “either” and “or” shall not be exclusive. Unless otherwise noted, all
references to sections, exhibits and schedules are to sections, exhibits and schedules to this
Agreement. All words used in this Agreement shall be construed to be of such gender or number as
the circumstances require. The parties hereto intend that each representation, warranty and
covenant contained herein shall have independent significance. If any party has breached any
representation, warranty or covenant contained herein in any respect, the fact that there exists
another representation, warranty or covenant relating to the same subject matter (regardless of
the relative levels of specificity) which such party has not breach shall not detract from or
mitigate the fact that such party is in breach of the first representation, warranty or covenant.
All references to agreements hereunder include all exhibits and schedules to such agreements and
shall mean such agreements as they may be amended, restated, supplemented or otherwise modified
from time to time.

[Remainder of page intentionally left blank]

(Signature page follows.)

17

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 	 	 	 	 
	 	 	PACIFIC OFFICE PROPERTIES TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Dallas E. Lucas	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Dallas E. Lucas	 	 
	 	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PACIFIC OFFICE PROPERTIES L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PACIFIC OFFICE PROPERTIES TRUST, INC., its general
partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Dallas E. Lucas
 

Dallas E. Lucas
	 	 
	 

	 	 	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PACIFIC OFFICE MANAGEMENT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Dallas E. Lucas	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Dallas E. Lucas	 	 
	 	 	 	 	President and Chief Executive Officer	 	 

18

 

SCHEDULE A

Pacific Office Management, Inc.

Fee Summary

	 	 	 
	Fee	 	Description
	 
	     This Schedule A sets forth the fees that the Advisor shall earn and the Company
shall pay in accordance with Section 6 of the Agreement.
	 
	 	 
	Asset Acquisition Fees

	 	1.0% of the total purchase price of the property
acquired by the Company including, but not limited
to, assets acquired and wholly-owned by the Company
and assets acquired in a venture with a co-investment
partner. In the event such assets are acquired in a
joint venture in which the Company or the Operating
Partnership is a member or partner, directly or
indirectly, the Asset Acquisition Fee shall be an
amount equal to 1.0% of the purchase price of the
property acquired by such joint venture, subject to
the provisions set forth below.
	 
	 	 
	Asset Disposition Fees

	 	1.0% of the total sale price of any Company Property
disposed of including, but not limited to,
wholly-owned properties sold to independent
third-parties, wholly-owned properties contributed to
a joint venture in which the Company is a partner or
joint venture and properties that were owned by a
joint venture with a third party co-investment
partner. In the event such assets are sold by a joint
venture in which the Company or the Operating
Partnership is a member or partner, directly or
indirectly, the Asset Disposition Fee shall be an
amount equal to 1.0% of the total sale price of the
property sold by such joint venture, subject to the
provisions set forth below.
	 
	 	 
	Equity Placement Fees
	 	 
	 
	 	 
	o     
Co-Investment
Capital (including
any new joint venture
program)

	 	An amount equal to .50% of the total amount of co-investment equity capital procured.

 

 

	 	 	 
	o     Issuance of Equity Securities

	 	An amount equal to .50% of the total gross
offering proceeds including, but not limited to,
the issuance of common shares, senior common
shares, preferred shares, the private placement
of equity securities and the issuance of
Operating Partnership units.
	 
	 	 
	Debt Placement Fees
	 	 
	 
	 	 
	o     Financing

	 	.50% of the principal amount of any new
indebtedness originated including, but not
limited to, secured financings on new property
acquisitions, refinancings and unsecured
financings on existing properties that are
wholly owned by the Company, and on
properties owned in a joint venture with co
investment partners or entity-level financings.
	 
	 	 
	o     Credit Facilities

	 	.50% of the amount available under any credit
line available to the Company upon origination.
	 
	 	 
	o     Public Issuance of Debt Instruments

	 	.50% of the principal amount of any
indebtedness issued.

2

 

Pacific Office Management, Inc.

Fee Summary

	 	 	 
	Fee	 	Description
	 
	 	 
	Management Fees
	 	 
	 
	 	 
	o     Corporate Management

	 	An amount equal to .10% of the Net Book
Value of the Company Property, but, in
no event, less than $1,500,000. per
annum, less Company Direct Expenses up
to a maximum reduction of $750,000 per
annum
	 
	 	 
	o     Leasing

	 	Rates consistent with the market in
which the Company Property is located
	 
	 	 
	o     Property Management

	 	Fees equal to 2.5% to 4.5% of the Company
Property revenue, consistent with the
market in which each Company Property is
located
	 
	 	 
	Construction Management
	 	 
	 
	 	 
	o     Tenant Improvements

	 	As specified in the Asset Management
Agreement or Property Management
Agreement applicable to each Company
Property, but, in no event, greater than
an amount equal to 5.00% of the cost of
any tenant improvement construction
project.
	 
	 	 
	o     Building Improvements/Development

	 	An amount equal to 2.5% of total project
costs for any redevelopment or capital
improvement project for a Company
Property, plus any direct costs incurred
by the Advisor in connection with
providing the related services.

Notwithstanding any terms and conditions in this Agreement, including the Compensation Schedule, in
the event the Advisor and/or the Independent Directors reasonably believe that any fees set forth
herein should be adjusted in connection with a particular transaction, or in connection with
certain of the services provided by the Advisor, then the Advisor and the Company agree to adjust
such fees.

Notwithstanding any provision set forth in this Agreement, including the Compensation Schedule, all
fees paid to the Advisor pursuant to this Agreement shall be consistent with the market in which
the Company Property is located, and, to the extent the fees set forth in the
Compensation Schedule are in excess of the applicable market rates, the Advisor and the Company
agree to adjust such fees to reflect market rates.EX-10.1

EXHIBIT 10.1

WAIVER AND AMENDMENT AGREEMENT NO. 2

to that certain

CREDIT AGREEMENT

     This WAIVER AND AMENDMENT AGREEMENT NO. 2 TO THAT CERTAIN CREDIT AGREEMENT (this
“Amendment”) dated as of March 6, 2009, among (a) HARRIS INTERACTIVE INC. (the
“Borrower”), (b) JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as administrative agent (the
“Administrative Agent”) for itself and the other lenders (the “Lenders”)
who are or may become party to the Credit Agreement dated as of September 21, 2007 (as amended,
restated, supplemented or otherwise modified, and in effect from time to time, the “Credit
Agreement”) among the Borrower, the Administrative Agent and the Lenders; and (c) the
Lenders signatory hereto.

     WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to the Credit
Agreement, pursuant to which the Lenders, upon certain terms and conditions, have agreed to make
Loans to, and the Issuing Bank, upon certain terms and conditions, has agreed to issue Letters of
Credit for the benefit of, the Borrower;

     WHEREAS, Events of Default have occurred and continue as a result of the Borrower’s failure to
comply with the covenants contained in Section 5.2(d) of the Credit Agreement (as to matters
disclosed to the Administrative Agent and the Lenders), Section 6.1(c) of the Credit Agreement (as
a result of intercomapny loans made to Harris Decima Inc. and to Marketshare Limited) and Section
6.9(a) of the Credit Agreement for the period ended December 31, 2008 and Section 6.9(b) of the
Credit Agreement for the period ended December 31, 2008
(collectively, the “Current Events of
Default”);

     WHEREAS, the Borrower anticipates that it will fail to comply with Section 6.9(a) of the
Credit Agreement for the period ended March 31, 2009 and Section 6.9(b) of the Credit Agreement for
the period ended March 31, 2009 (collectively, the “Anticipated Events of
Default”, and together with the Current Events of Default, the “Specified
Events of Default”);

     WHEREAS, the Borrower has requested, among other things, that the Lenders and Administrative
Agent (a) waive the Specified Events of Default, and (b) amend the Credit Agreement as provided
more fully herein below; and

     WHEREAS, the Lenders and the Administrative Agent are willing (a) to waive the Specified
Events of Default, subject to the terms, conditions and other provisions hereof, and (b) to amend
certain provisions of the Credit Agreement as more fully provided herein;

 

 

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

     Section 1. Defined Terms. Capitalized terms used but not defined herein shall
have the same meanings herein as in the Credit Agreement.

     Section 2.
Waiver. Subject to the terms and conditions set forth herein, and on the express
understandings set forth in Section 4 hereof, the Lenders and the Administrative Agent
hereby agree to waive the Specified Events of Default during (but only during) the period (the
“Waiver Period”) ending on the earliest to occur of (a) May 8, 2009 at 2 p.m. Eastern Time,
(b) the occurrence after the date hereof of any Default or Event of Default other than the
Specified Events of Default, and (c) the occurrence of any Material Adverse Effect in the business,
assets, financial condition or prospects of the Borrower or Loan Parties other than in respect of
the Specified Events of Default and as otherwise disclosed in the Harris Financial Information (as
hereinafter defined). Such limited waiver shall automatically, and without action, notice, demand
or any other occurrence, expire on and as of the end of the Waiver Period. Upon the expiration or
termination of the Waiver Period, and from and after such time, (i) the Lenders and the
Administrative Agent shall retain all of the rights and remedies relating to the Specified Events
of Default and any other Default or Event of Default, (ii) the Specified Events of Default shall be
reinstated and shall be in full force and effect for all periods including periods after the Waiver
Period, and (iii) any obligation of the Lenders under the Credit Agreement shall be subject to the
terms and conditions set forth in the Credit Agreement. As used herein, “Harris Financial
Information” means, collectively, (i) Harris Interactive Inc. Draft Consolidated Balance Sheets for
the six months ending December 31, 2008, (ii) Harris Interactive Inc. Draft Consolidated Statement
of Operations for the six months ending December 31, 2008, (iii) Harris Interactive Inc. Draft
Consolidated Statement of Cash Flows for the six months ending December 31, 2008, (iv) Harris
Interactive Business Plan PowerPoint presentation dated January 29, 2009, (v) Harris Interactive
Summary of Business Plan (July 2007 through June, 2011), (vi) Harris Financial Forecast Yearly and
Quarterly Financials 01-29-09, (vii) Harris Interactive Consolidated Monthly Income Statement
01-29-09, (viii) Harris Interactive Consolidating Income Statement — Yearly and Quarterly
02-19-09, (ix) Harris Interactive Consolidated Income Statement — Monthly 02-19-09, (x) Harris
Interactive Summary of Business Plan (July 2007 — June 2011), (xi) Harris Interactive Consolidated
Monthly Income Statement 02-21-09, and (xii) Harris Interactive Consolidated Cash Flow — Yearly,
each of items (i) through (vii) inclusive having been delivered to the Administrative Agent on
January 29, 2009 and the Lenders on January 30, 2009, each of items (viii) and (ix) having been
delivered to the Administrative Agent on February 19, 2009, each of items (x) through (xii)
inclusive having been delivered to the Administrative Agent on February 21, 2009, and each of items
(viii) through (xii) inclusive having been delivered to the Lenders on March 2, 2009.

 

 

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     Section 3.
Amendments to the Credit Agreement.

     (a) The definition of “Swap Agreement” contained in Section 1.1 of the Credit Agreement is
hereby amended to read, in its entirety, as follows:

     “ “Swap Agreement” or “Swap Contract” means any agreement with respect to any
swap, forward, future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic, financial or pricing
risk or value or any similar transaction or any combination of these transactions; provided
that no phantom stock or similar plan providing for payments only on account of services provided
by current or former directors, officers, employees or consultants of the Borrower or the
Subsidiaries shall be a Swap Agreement or Swap Contract.”

     (b) Section 6.1(c) of the Credit Agreement is hereby amended by adding the following at the
end thereof:

     “provided that the Borrower will not, and will not permit any Subsidiary to, prepay, redeem,
purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or
make any payment in violation of any subordination terms of, any Indebtedness described in
Section 6.1(c)(ii), except regularly scheduled or required repayments or redemptions.”

     Section 4. Agreements and Covenants.

     (a) During the Waiver Period, notwithstanding any terms of the Credit Agreement to the
contrary, the Borrower hereby agrees that it shall not request any Revolving Loans or Letters of
Credit, and that it understands that it is a condition of the waiver contained herein that the
Lenders shall have no obligation to make any Revolving Loans, and the Issuing Bank shall have no
obligation to issue any Letters of Credit. In the event that the Lenders agree, notwithstanding
the provisions hereof, in their sole discretion, to advance any Loans or the Issuing Bank agrees to
issue any Letter of Credit, such Loans or Letters of Credit shall be considered Loans or Letters of
Credit under the Credit Agreement, Obligations thereunder, and entitled to all benefits thereof.

     Section 5. Affirmation and Acknowledgment of the
Borrower. The Borrower hereby ratifies and confirms all of its Obligations to the Lenders,
Issuing Bank and the Administrative Agent, including, without limitation, the Loans, and the
Borrower hereby affirms its absolute and unconditional promise to pay to the Lenders, the Issuing
Bank and the Administrative Agent the Loans and all other amounts due under the Credit Agreement as
amended hereby. The Borrower hereby confirms that the Obligations are secured pursuant to the
Collateral Documents and pursuant to all other instruments and documents executed and delivered by
the Borrower as security for the Obligations.

     Section 6. Representations and Warranties. Each Loan Party hereby
represents and warrants to the Lenders and Administrative Agent as follows:

 

 

-4-

     (a) The execution and delivery by such Loan Party of this Amendment and the Loan Documents to
which it is a party, and the performance by such Loan Party of its obligations and agreements under
this Amendment, the Credit Agreement as amended hereby, and the other Loan Documents, are within
the corporate authority of such Loan Party, have been duly authorized by all necessary corporate
proceedings on behalf of such Loan Party, and do not and will not contravene any provision of law,
statute, rule or regulation to which such Loan Party is subject or any of such Loan Party’s
charter, other incorporation papers, by-laws or any stock provision or any amendment thereof or of
any agreement or other instrument binding upon such Loan Party.

     (b) This Amendment, the Credit Agreement as amended hereby, and the other Loan Documents
constitute legal, valid and binding obligations of such Loan Party, enforceable in accordance with
their respective terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting generally the enforcement of creditors’ rights.

     (c) No approval or consent of, or filing with, any governmental agency or authority is
required to make valid and legally binding the execution, delivery or performance by such Loan
Party of this Amendment, the Credit Agreement as amended hereby, or the other Loan Documents.

     (d) The representations and warranties contained in Article III of the Credit Agreement are
true and correct at and as of the date made and as of the date hereof, except to the extent (i) of
changes resulting from transactions contemplated or permitted by this Amendment, the Credit
Agreement and the other Loan Documents, (ii) relating to the representation contained in Section
3.4(b) of the Credit Agreement, and (iii) relating to representations that expressly relate to an
earlier date.

     (e) Such Loan Party has performed and complied in all material respects with all terms and
conditions herein required to be performed or complied with by it prior to or at the time hereof,
and as of the date hereof, after giving effect to the provisions hereof, there exists no Event of
Default or Default.

     Section 7. Release. In order to induce the Administrative Agent and the Lenders to
enter into this Amendment, each Loan Party acknowledges and agrees that: (a) such Loan Party does
not have any claim or cause of action against the Administrative Agent, the Issuing Bank or any
Lender (or any of its respective directors, officers, employees or agents); (b) such Loan Party
does not have any offset right, counterclaim or defense of any kind against any of its respective
obligations, indebtedness or liabilities to the Administrative Agent, the Issuing Bank or any
Lender; and (c) the Administrative Agent, the Issuing Bank and each Lender have heretofore properly
performed and satisfied in a timely manner all of its obligations to the Loan Parties. Each Loan
Party wishes to eliminate any
possibility that any past conditions, acts, omissions, events, circumstances or matters would
impair or otherwise adversely affect the Administrative Agent’s, the Issuing Bank’s or any Lender’s
rights, interests, contracts, collateral security or remedies.

 

 

-5-

Therefore, each Loan Party
unconditionally releases, waives and forever discharges (i) any and all liabilities, obligations,
duties, promises or indebtedness of any kind of the Administrative Agent, the Issuing Bank or any
Lender to such Loan Party, except the obligations to be performed by any Administrative Agent, the
Issuing Bank or any Lender on or after the date hereof as expressly stated in this Amendment, the
Credit Agreement and the other Loan Documents, and (ii) all claims, offsets, causes of action,
suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether
known or unknown, which such Loan Party might otherwise have against the Administrative Agent, the
Issuing Bank, any Lender or any of its directors, officers, employees or agents, in either case (i)
or (ii), on account of any past or presently existing condition, act, omission, event, contract,
liability, obligation, indebtedness, claim, cause of action, defense, circumstance or matter of any
kind.

     Section 8. Conditions to Effectiveness. This Amendment shall become
effective subject to:

     (a) the receipt by the Administrative Agent (or its counsel) from each of the Borrower, the
Administrative Agent and the Required Lenders, of either (i) an original counterpart of this
Amendment signed on behalf of such party or (ii) written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed signature page of this
Amendment) that such party has signed a counterpart of this Amendment;

     (b) the receipt by the Administrative Agent (or its counsel) from each of the Loan Parties, of
either (i) an original counterpart of the Loan Parties’ acknowledgment attached to this Amendment
signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of this Amendment) that such
party has signed a counterpart of the Loan Parties’ acknowledgement;

     (c) the receipt by the Administrative Agent of such documents, resolutions and certificates as
the Administrative Agent or its counsel may reasonably request relating to the organization,
existence and good standing of the Loan Parties, the authorization of the entering into and
execution of this Amendment , and any other legal matters relating to the Loan Parties, this
Amendment or the other Loan Documents, all in form and substance satisfactory to the Administrative
Agent and its counsel;

     (d) the receipt by the Administrative Agent of all fees due and payable to the Administrative
Agent and the Lenders in immediately available funds, including a fee equal to twenty five basis
points on the aggregate amount of the Revolving Credit Commitment in effect on the date hereof, the
Outstanding Amount of the Term A Loans on the date hereof, and the Outstanding Amount of the Term B
Loans on the date hereof;

     (e) the payment of all reasonable legal fees and disbursements for which invoices have been
presented which have been incurred or sustained by the Administrative Agent in connection with this
Amendment and the Credit Agreement, the Loan Documents and any other related documents executed
and/or delivered in connection therewith; and

 

 

-6-

     (f) the delivery to the Administrative Agent of such other items, documents, agreements, items
or actions as the Administrative Agent may reasonably request.

     Section 9.
Miscellaneous Provisions.

     (a) Except as otherwise expressly provided by this Amendment, all of the terms, conditions and
provisions of the Credit Agreement shall remain the same. It is declared and agreed by each of the
parties hereto that the Credit Agreement, as amended hereby, shall continue in full force and
effect, and that this Amendment and the Credit Agreement shall be read and construed as one
instrument.

     (b) This Amendment shall be construed in accordance with and governed by the internal law of
the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations laws
of the State of New York).

     (c) This Amendment shall constitute a Loan Document under the Credit Agreement and all
obligations included in this Amendment (including, without limitation, all obligations for the
payment of principal, interest, fees and other amounts and expenses) shall constitute Obligations
under the Credit Agreement and be secured by the Collateral Documents securing the Obligations.

     (d) Any failure by the Borrower or the Loan Parties to comply with any of the terms and
conditions of this Amendment shall constitute an immediate Event of Default.

     (e) This Amendment may be executed in any number of counterparts, each of which shall
constitute an original, but all such counterparts shall together constitute but one contract. In
making proof of this Amendment it shall not be necessary to produce or account for more than one
counterpart signed by each party hereto by and against which enforcement hereof is sought.
Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other
electronic method of transmission shall be effective as delivery of a manually executed counterpart
of this Amendment.

     (f) The Borrower hereby agrees to pay to the Administrative Agent, on demand by the
Administrative Agent, all reasonable out-of-pocket costs and expenses incurred or sustained by the
Administrative Agent in connection with the preparation of this Amendment and any documentation
executed in connection with this Amendment (including reasonable legal fees).

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first
written above.

	 	 	 	 	 
	 	HARRIS INTERACTIVE INC.

 	 
	 	By:  	/s/ Deborah Rieger-Paganis
 	 
	 	 	Deborah Rieger-Paganis 	 
	 	 	Interim Chief Financial Officer 	 
	 

[Signature page to Waiver and Amendment Agreement No. 2]

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Administrative Agent

 	 
	 	By:  	/s/  Thomas C. Strasenburgh
 	 
	 	 	Name:  	Thomas C. Strasenburgh 	 
	 	 	Title:  	Vice President 	 
	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/  Thomas C. Strasenburgh
 	 
	 	 	Name:  	Thomas C. Strasenburgh 	 
	 	 	Title:  	Vice President 	 
	 

[Signature page to Waiver and Amendment Agreement No. 2]

 

 

	 	 	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY, as Lender

 	 
	 	By:  	/s/  Brett W. Rawlings
 	 
	 	 	Name:  	Brett W. Rawlings 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[Signature page to Waiver and Amendment Agreement No. 2]

 

 

	 	 	 	 	 
	 	RBS CITIZENS, NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/ Jeff Morse
 	 
	 	 	Name:  	Jeff Morse 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[Signature page to Waiver and Amendment Agreement No. 2]

 

 

	 	 	 	 	 
	 	NATIONAL CITY BANK, as Lender

 	 
	 	By:  	                   /s/ John P. Wojcik
 	 
	 	 	Name:  	John P. Wojcik 	 
	 	 	Title:  	Vice President 	 
	 

[Signature page to Waiver and Amendment Agreement No. 2]

 

 

	 	 	 	 	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/  Joseph M. Koenig
 	 
	 	 	Name:  	Joseph M. Koenig 	 
	 	 	Title:  	Vice President 	 
	 

[Signature page to Waiver and Amendment Agreement No. 2]

 

 

Loan Parties’ Acknowledgement

     Each of the undersigned Loan Parties hereby (a) acknowledges and consents to the foregoing
Amendment and the Borrower’s execution thereof; (b) joins the foregoing Amendment for the sole
purpose of consenting to and being bound by the provisions of Sections 6 and 7 thereof; (c)
ratifies and confirms all of their respective obligations and liabilities under the Loan Documents
to which any of them is a party and ratifies and confirms that such obligations and liabilities
extend to and continue in effect with respect to, and continue to guarantee and secure, as
applicable, the Obligations of each other Loan Party under the Loan Documents; (d) acknowledges and
confirms that the liens and security interests granted pursuant to the Loan Documents are and
continue to be valid and perfected first priority liens and security interests (subject only to
Permitted Encumbrances) that secure all of the Obligations on and after the date hereof; and (e)
acknowledges, affirms and agrees that, as of the date hereof, such Loan Party does not have any
defense, claim, cause of action, counterclaim, offset or right of recoupment of any kind or nature
against any of their respective obligations, indebtedness or liabilities to the Administrative
Agent, the Issuing Bank or any Lender.

 

 

	 	 	 	 	 
	 	Loan
Parties:

HARRIS INTERACTIVE INTERNATIONAL INC.

 	 
	 	By:  	/s/ Deborah Rieger-Paganis
 	 
	 	 	Deborah Rieger-Paganis 	 
	 	 	Interim Chief Financial Officer 	 
	 
	 	WIRTHLIN WORLDWIDE, LLC

 	 
	 	By:  	/s/ Deborah Rieger-Paganis
 	 
	 	 	Deborah Rieger-Paganis 	 
	 	 	Interim Chief Financial Officer 	 
	 
	 	THE WIRTHLIN GROUP INTERNATIONAL, L.L.C.

 	 
	 	By:  	/s/ Deborah Rieger-Paganis
 	 
	 	 	Deborah Rieger-Paganis 	 
	 	 	Interim Chief Financial Officer 	 
	 
	 	LOUIS HARRIS & ASSOCIATES, INC.

 	 
	 	By:  	/s/ Deborah Rieger-Paganis
 	 
	 	 	Deborah Rieger-Paganis 	 
	 	 	Interim Chief Financial Officer

 	 
	 	HARRIS INTERACTIVE ASIA, LLC	 
	 	 	 
	 	By:  	                    /s/ Deborah Rieger-Paganis
 	 
	 	 	Deborah Rieger-Paganis 	 
	 	 	Interim Chief Financial Officer 	 
	 
	 	GSBC OHIO CORPORATION

 	 
	 	By:  	/s/ Deborah Rieger-Paganis
 	 
	 	 	Deborah Rieger-Paganis 	 
	 	 	Interim Chief Financial Officer 	 
	 

[Signature page to Waiver and Amendment Agreement No. 2]

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