Document:

Exhibit 10.8

 

PURCHASE AND REGISTRATION RIGHTS AGREEMENT

 

PURCHASE AND REGISTRATION RIGHTS AGREEMENT, dated as of November [ · ], 2017 (this “Agreement”), by and between Workspace Property Trust, a Maryland real estate investment trust (the “Company”) and Safanad Suburban Office Partnership, LP (“SSOP”), a Delaware limited partnership, SSOP Management, LLC (“SSOP Management”), a Delaware limited liability company, and SSOP SLP Splitter, LLC (“SSOP Splitter”), a Delaware limited liability company (each of SSOP, SSOP Management and SSOP Splitter being referred to herein individually as a “Safanad Entity” and collectively as “Safanad”).

 

RECITALS

 

WHEREAS, the Company has entered into an underwriting agreement, dated as of the date hereof (the “Underwriting Agreement”), with Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Underwriters”) in connection with the initial public offering of the Company (the “IPO”), pursuant to which the Company has agreed to sell common shares of beneficial interest, $0.01 par value per share (the “Shares”), as set forth in the final prospectus filed by the Company with the Securities and Exchange Commission (the “SEC”) in connection with the IPO on or immediately following the date hereof (the “Prospectus”);

 

WHEREAS, at Closing (as defined below), Safanad will own a number of common units of limited partnership interest (the “Units”) in Workspace Property Trust, L.P., a Delaware limited partnership (the “OP”);

 

WHEREAS, the Units are subject to certain restrictions on redemption pursuant to the Second Amended and Restated Limited Partnership Agreement of the OP dated as of the date hereof (the “Partnership Agreement”);

 

WHEREAS, pursuant to a letter dated October 26, 2017, the Company has agreed to waive the prohibition on redemptions of the Units held by Safanad during the Twelve-Month Period (as defined in the Partnership Agreement) if such redemption is requested at any time more than six months following the closing of the IPO (the “Letter Agreement”);

 

WHEREAS, pursuant to the Registration Rights Agreement dated as of the date hereof by and among the Company, the OP, Safanad and certain other holders of Shares (the “Registration Rights Agreement”), holders of Shares have been granted certain registration rights with respect to the Shares; and

 

WHEREAS, the Company and Safanad have agreed that the Company will repurchase up to $50 million of Units (based on the initial offering price of the Shares set forth on the front cover of the Prospectus) (the “Purchased Units”) from Safanad in connection with the exercise by the Underwriters of their over-allotment option under the Underwriting Agreement, if, when and to the extent such over-allotment option is exercised, and that Safanad will be granted certain registration rights in addition to the rights set forth in the Registration Rights Agreement, in each

 

 

case on the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, and intending to be legally bound hereby, the Parties agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.1                                    Certain Defined Terms.   Capitalized terms used and not defined herein shall have the meanings set forth in the Registration Rights Agreement.  For purposes of this Agreement:

 

“Encumbrance” means any charge, claim, limitation, condition, equitable interest, mortgage, lien, option, pledge, security interest, easement, encroachment, right of first refusal, adverse claim or restriction of any kind, including any federal, state or local tax lien and any restriction on transfer or other assignment, as security or otherwise, of or relating to use, quiet enjoyment, voting, transfer, receipt of income or exercise of any other attribute of ownership (except for such conditions and such restrictions on transfer as may apply pursuant to applicable securities Law and/or the terms of the Partnership Agreement).

 

“Governmental Authority” means any United States or non-United States federal, national, supranational, state, provincial, local or similar government, governmental, regulatory or administrative authority, branch, agency or commission or any court, tribunal, or arbitral or judicial body (including any grand jury).

 

“Law” means any statute, law, ordinance, regulation, rule, code, executive order, injunction, judgment, decree or order of any Governmental Authority.

 

“Party” means each of the Company and each Safanad Entity.

 

ARTICLE II
 PURCHASE AND SALE

 

Section 2.1                                    Purchase and Sale of the Units.  If, when and to the extent the Underwriters exercise their over-allotment option, the Company shall use the first $50 million of the net proceeds from the sale of additional Shares to purchase the Purchased Units (or if the net proceeds realized upon any such exercise are less than $50 million, then such lesser amount of net proceeds that are so realized).  Upon the terms and subject to the conditions of this Agreement, at the Closing (as defined below), Safanad shall sell, assign, transfer, convey and cause to be delivered to the Company the Purchased Units, free and clear of all Encumbrances, and the Company, in reliance on the representations, warranties and covenants of Safanad contained herein, shall purchase the Purchased Units, at a purchase price per Unit (the “Purchase Price”) equal to the initial public offering price set forth on the front cover of the Prospectus.

 

Section 2.2                                    Closing. The sale and purchase of the Purchased Units shall take place at a closing (the “Closing”) to be held at or directed from the offices of Seyfarth Shaw LLP, 620 Eighth Avenue, New York, New York 10018, concurrently with or immediately following the

 

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closing under the Underwriting Agreement with respect to the exercise of the over-allotment option by the Underwriters.  The day on which the Closing takes place is referred to as the “Closing Date.”  In connection with the Closing, Safanad shall advise the Company of the number of Purchased Units, if any, to be sold by each Safanad Entity. At the Closing and to the extent the Underwriters exercise their over-allotment option, immediately following such exercise and the receipt by the Company of the net proceeds of the Shares sold by it in connection therewith (i) the Company shall pay or cause to be paid the Purchase Price for the Purchased Units by wire transfer of immediately available funds to an account or accounts designated by Safanad, and (ii) Safanad shall deliver or cause to be delivered the Purchased Units to the Company (or its designee).

 

ARTICLE III
 REPRESENTATIONS AND WARRANTIES OF SAFANAD

 

Each Safanad Entity hereby represents and warrants to the Company as follows:

 

Section 3.1                                    Organization.  Such Safanad Entity is a limited partnership or limited liability company, as the case may be, duly formed and validly existing under the laws of the State of Delaware.

 

Section 3.2                                    Authority.  Such Safanad Entity has the requisite limited partnership power and authority to execute and deliver this Agreement, and to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement by such Safanad Entity, and the performance by such Safanad Entity of its obligations under this Agreement, have been duly and validly authorized by all necessary action on scuh Safanad Entity’s part.  This Agreement has been duly executed and delivered by such Safanad Entity, and constitutes the legal, valid and binding obligation of such Safanad Entity, enforceable against such Safanad Entity in accordance with its terms (except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar Laws affecting the enforcement of creditors’ rights generally or by general principles of equity).

 

Section 3.3                                    No Conflict; Required Filings and Consents.

 

(a)                                 The execution and delivery by such Safanad Entity of this Agreement, the performance by such Safanad Entity of its obligations under this Agreement, and the consummation of the transactions contemplated hereby, do not and will not:

 

(i)                                     conflict with or violate such Safanad Entity’s organizational documents;

 

(ii)                                  conflict with or violate in any material respect Laws applicable to such Safanad Entity or the Units or otherwise applicable to such Safanad Entity’s consummation of the transactions contemplated hereby; or

 

(iii)                               result in any material breach of, constitute a material default (or an event that, with notice or lapse of time or both, would become a default) under, require any consent of or notice to any Person pursuant to, give to others any right of termination,

 

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amendment, modification, acceleration or cancellation of, or result in the creation of any Encumbrance on any Purchased Units pursuant to, any material note, bond, mortgage, indenture, agreement, lease, license, permit, franchise, instrument, obligation or other contract to which such Safanad Entity is a party or is bound or by which any of the Purchased Units are bound or affected (except, in the case of the foregoing clause (ii) or this clause (iii), for any such violation, breach default as would not prevent such Safanad Entity from consummating the transactions contemplated hereby and other than consents that will have been obtained on or prior to the Closing and that will be in full force and effect as of such Closing, notices that will have been duly made on or prior to the Closing and rights that will have been waived on or prior to such Closing, which waivers will be in full force and effect as of such Closing or any such consents, notices or waivers the failure of which to have been obtained, made or received would not prevent such Safanad Entity from consummating the transactions contemplated hereby).

 

(b)         Such Safanad Entity is not required to file, seek or obtain any notice, authorization, approval, order, permit or consent of or with any Governmental Authority in connection with the execution and delivery by such Safanad Entity of this Agreement or the performance by such Safanad Entity of its obligations under this Agreement, other than any filing by such Safanad Entity and/or any affiliate of such Safanad Entity with the SEC that may be required pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or except as would not prevent such Safanad Entity from consummating the transactions contemplated hereby.

 

Section 3.4                                    Title to Units.  Such Safanad Entity is the record and legal owner of the Purchased Units to be purchased from it.  Such Safanad Entity has the right, authority and power to sell, assign and transfer such Purchased Units to the Company.  Upon delivery to the Company of such Purchased Units at the Closing and the Company’s payment of the Purchase Price for such Purchased Units, the Company shall acquire good, valid and marketable title to such Purchased Units, free and clear of any Encumbrance.

 

Section 3.5                                    Brokers.  No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of such Safanad Entity.

 

Section 3.6                                    No Other Representations or Warranties.  Such Safanad Entity acknowledges and agrees that it is not relying upon any representations or warranties of the Company, express or implied, except those contained herein, and such Safanad Entity specifically does not request, desire or require the Company to make any other representations or warranties whatsoever with respect to the Company or the Purchased Units or any other matter with respect to any of the transactions contemplated hereby.

 

ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby represents and warrants to each Safanad Entity as follows:

 

Section 4.1                                    Organization.  The Company is a real estate investment trust duly formed, validly existing and in good standing under the laws of the State of Maryland.

 

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Section 4.2                                    Authority.  The Company has the requisite trust power and authority to execute and deliver this Agreement, and to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement by the Company, and the performance by the Company of its obligations under this Agreement, have been duly and validly authorized by all necessary trust action.  This Agreement has been duly and validly executed and delivered by the Company.  This Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms (except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar Laws affecting the enforcement of creditors’ rights generally or by general principles of equity).

 

Section 4.3                                    No Conflict; Consents.

 

(a)                                 The execution and delivery by the Company of this Agreement, the performance by the Company of its obligations under this Agreement, and the consummation of the transactions contemplated hereby, do not and will not:

 

(i)                                     conflict with or violate the declaration of trust or bylaws of the Company;

 

(ii)                                  conflict with or violate in any material respect Laws applicable to the Company or otherwise applicable to the transactions contemplated hereby; or

 

(iii)                               result in any material breach of, constitute a material default (or an event that, with notice or lapse of time or both, would become a default) under, require any consent of or notice to any Person pursuant to, give to others any right of termination, amendment, modification, acceleration or cancellation of, any material note, bond, mortgage, indenture, agreement, lease, license, permit, franchise, instrument, obligation or other contract to which the Company is a party (except, in the case of the foregoing clause (ii) or this clause (iii), for any such violation, breach default as would not prevent the Company from consummating the transactions contemplated hereby and other than consents that will have been obtained on or prior to the Closing and that will be in full force and effect as of such Closing, notices that will have been duly made on or prior to the Closing and rights that will have been waived on or prior to such Closing, which waivers will be in full force and effect as of such Closing or any such consents, notices or waivers the failure of which to have been obtained, made or received would not prevent the Company from consummating the transactions contemplated hereby).

 

(b)                                 The Company is not required to file, seek or obtain any notice, authorization, approval, order, permit or consent of or with any Governmental Authority in connection with the execution and delivery by the Company of this Agreement or the performance by the Company of its obligations under this Agreement, other than any filing by the Company with the SEC that may be required pursuant to the Exchange Act or except as would not prevent the Company from consummating the transactions contemplated hereby.

 

Section 4.4                                    Brokers.  No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Company (other than underwriting

 

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discounts and commissions payable in connection with the sale of shares pursuant to the Underwriting Agreement).

 

Section 4.5                                    No Other Representations or Warranties.  The Company acknowledges and agrees that it is not relying upon any representations or warranties of any Safanad Entity, express or implied, except those contained herein, and the Company specifically does not request, desire or require any Safanad Entity to make any other representations or warranties whatsoever with respect to Safanad and/or the Units or any other matter with respect to any of the transactions contemplated hereby.

 

ARTICLE V
 COVENANTS

 

Section 5.1                                    Consents and Filings; Further Assurances.  The Parties shall use their reasonable best efforts to take, or cause to be taken, all appropriate action to do, or cause to be done, all things necessary, proper or advisable under applicable Law or otherwise to consummate and make effective the transactions contemplated by this Agreement as promptly as practicable.  Without limiting the foregoing, the Company covenants and agrees that it shall use commercial best efforts to do all things necessary or appropriate to effectuate any election or request by Safanad of a waiver pursuant to the Letter Agreement so as to permit the realization by Safanad of the registration rights provided for by this Agreement.

 

ARTICLE VI
 CONDITIONS TO CLOSING

 

Section 6.1                                    General Conditions.  The respective obligations of the Company and Safanad to consummate the sale and purchase of the Purchased Units contemplated by this Agreement shall be subject to the fulfillment, at or prior to the Closing, of the following conditions, which may, to the extent permitted by applicable Law, be waived in writing by any Party in its sole discretion (provided, that such waiver shall only be effective as to the conditions to the obligations of the waiving Party):

 

(a)                                 No Injunction or Prohibition.  No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Law (whether temporary, preliminary or permanent) that is then in effect and that enjoins, restrains, conditions, makes illegal or otherwise prohibits the consummation of the sale and purchase of the Purchased Units contemplated by this Agreement.

 

Section 6.2                                    Conditions to Obligations of Safanad.  The obligation of Safanad to consummate the sale and purchase of the Purchased Units contemplated by this Agreement shall be subject to the fulfillment, at or prior to the Closing, of each of the following conditions, any of which, to the extent permitted by applicable Law, may be waived in writing by Safanad in its sole discretion:

 

(a)                                 Representations, Warranties and Covenants.  The representations and warranties of the Company contained in this Agreement shall be true and correct in all respects both when made and as of the Closing Date.  The Company shall have performed all obligations and agreements and complied with all covenants required by this Agreement to be

 

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performed or complied with by it prior to or at the Closing.

 

(b)                                 Purchase Price.  The Company shall have delivered the Purchase Price for the Purchased Units, as specified in Section 2.1 hereof.

 

Section 6.3                                    Conditions to Obligations of the Company.  The obligation of the Company to consummate the purchase of the Purchased Units contemplated by this Agreement shall be subject to the fulfillment, at or prior to the Closing, of each of the following conditions, any of which, to the extent permitted by applicable Law, may be waived in writing by the Company in its sole discretion:

 

(a)                                 Representations, Warranties and Covenants.  The representations and warranties of each Safanad Entity contained in this Agreement shall be true and correct in all respects both when made and as of the Closing Date.  Each Safanad Entity shall have performed all obligations and agreements and complied with all covenants required by this Agreement to be performed or complied with by it prior to or at the Closing.

 

(b)                                 Instruments of Transfer.  Safanad shall have delivered to the Company appropriate instruments of transfer to effect the delivery of the Purchased Units to the Company in accordance with Article II.

 

(c)                                  Exercise of Over-Allotment Option.  The IPO shall have been consummated, and the Underwriters shall have exercised their over-allotment option in whole or in part in accordance with the Underwriting Agreement, and closing with respect thereto shall be occurring concurrently with or prior to the Closing.

 

ARTICLE VII
 REGISTRATION RIGHTS

 

Section 7.1                                    Registration Rights.  To the extent that the Underwriters do not exercise their over-allotment option or the Company does not repurchase $50 million of Units from Safanad with proceeds from any such exercise, Safanad shall be granted the registration rights set forth in Sections 7.2 and 7.3 for up to $65 million of Shares (before underwriting discounts), less the amount of any Units that the Company repurchased from Safanad in connection with any exercise of the over-allotment option by the Underwriters (the “Safanad Registrable Shares”), provided, however, that if the Company has repurchased $50 million of Units from Safanad in connection with the exercise of the over-allotment option by the Underwriters, no registration rights shall be granted to Safanad pursuant to this Article VII.

 

Section 7.2                                    Safanad Demand Registration.

 

(a)                                 Request for Registration.  If Safanad gives notice of its exercise of the waiver pursuant to the Letter Agreement and some or all of its Units are to be redeemed for Shares in accordance with the Partnership Agreement in connection therewith, then at any time concurrently with or after giving of such notice until the one year anniversary of the consummation of the IPO (the “Safanad Registration Rights Period”), Safanad may make a written request for registration under the Securities Act of all or part of the Safanad Registrable Shares (a “Safanad Demand Registration”).  The Company shall not be obligated to effect more

 

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than one (1) Safanad Demand Registrations pursuant to this Section 7.2.  Any request for a Safanad Demand Registration will specify the number of Safanad Registrable Shares  proposed to be sold and will also specify the intended method of disposition thereof.

 

(b)                                 Effective Registration.  A registration will not count as a Safanad Demand Registration until it has become effective.

 

(c)                                  Underwritten Safanad Demand Registrations.  If Safanad so elects by written notice to the Company, the offering of such Safanad Registrable Shares pursuant to such Safanad Demand Registration shall be in the form of an underwritten offering. The Company shall select the Underwriter or Underwriters to serve as book-running manager or managers in connection with any such Safanad Demand Registration and any additional investment banks and managers to be used in connection with the offering, provided, however that the book-running manager(s) shall be reasonably acceptable to Safanad; provided, further, that any of the book-running managers for the IPO shall be deemed acceptable to Safanad as book-running managers in connection with any Safanad Demand Registration.  Any request for an underwritten offering hereunder shall be made to the Company in accordance with the notice provisions of this Agreement.

 

Section 7.3                                    Safanad Piggy-Back Registration. If, at any time following the completion of the IPO and prior to the expiration of the Safanad Registration Rights Period, the Company proposes to file a registration statement under the Securities Act with respect to an underwritten offering of Shares by the Company for its own account or for the account of any of its respective securityholders (other than a registration statement on Form S-4 or S-8 (or any substitute form that may be adopted by the Commission) or filed in connection with an exchange offer or offering of securities solely to the Company’s existing securityholders), then the Company shall give written notice of such proposed filing to Safanad as soon as practicable (but in no event less than five (5) Business Days before the anticipated filing date), and such notice shall offer Safanad the opportunity to register such number of Safanad Registrable Shares as Safanad may request (a “Safanad Piggy-Back Registration”).  The Company shall use its commercially reasonable efforts to cause the managing Underwriter or Underwriters of a proposed underwritten offering to permit the Safanad Registrable Shares requested to be included in a Safanad Piggy-Back Registration to be included on the same terms and conditions as any similar securities of the Company included therein.  The foregoing notwithstanding, the Company shall not be obligated to effect, or take any action to effect, a Safanad Piggy-Back Registration if Safanad has previously sold all of the Safanad Registrable Shares.  The right set forth in this Section 7.3 shall be available if Safanad makes a request for waiver pursuant to the Letter Agreement in connection with the exercise of its piggy-back rights hereunder and its Units are to be redeemed for Shares in accordance with the Partnership Agreement in connection with such request.

 

Section 7.4                                    Reduction of Offering. Notwithstanding anything contained herein, if the managing Underwriter or Underwriters of an underwritten offering pursuant to a Safanad Piggy-Back Registration advise in writing to the Company and Safanad that the size of the offering that Safanad and/or the Company participating in such offering intend to make is such that the success of the offering would be materially and adversely affected by inclusion of the Safanad Registrable Shares requested to be included, then the number of Shares to be offered for the account of the Company shall have priority and the number of shares to be offered for the

 

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account of Safanad shall be reduced (according to the number of Shares included in such registration statement) to the extent necessary to reduce the total number of Shares to be included in such offering to the number of Shares recommended by such managing Underwriter(s).  For the avoidance of doubt (a) in the case of a Safanad Demand Registration, Safanad shall have priority over any other party to the extent any other party seeks to have securities included in such registration or offering and (b) in the case of a Safanad Piggy-Back Registration, Safanad shall have priority over any party, other than the Company selling securities for its own account, seeking to have securities included in such registration or offering.

 

Section 7.5                                    Waiver.  Attached hereto as Exhibit A is a waiver from all Holders who are parties to the Registration Rights Agreement of their rights under Section 2.3 of the Registration Rights Agreement with respect to a Safanad Demand Registration or a Safanad Piggy-Back Registration.

 

Section 7.6                                    Additional Registration Terms and Procedures.  The Parties agree that the terms, provisions and procedures set forth in Section 2.5 through 2.14 of the Registration Rights Agreement shall apply to any Safanad Demand Registration or Safanad Piggy-Back Registration effected pursuant to this Agreement; provided that notwithstanding Section 2.5(a) of the Registration Rights Agreement, a Suspension Event shall not apply to any Safanad Demand Registration or Safanad Piggy-Back Registration pursuant to this Agreement more than one time or for more than an aggregate of forty-five (45) days during the Safanad Registration Rights Period.

 

ARTICLE VIII
 TERMINATION

 

Section 8.1                                    Termination.  This Agreement may be terminated at any time by mutual written consent of the Parties prior to the Closing.  In addition, in the event that the Underwriting Agreement is terminated for any reason prior to the closing of the IPO, this Agreement shall automatically terminate without the need for any notice from or further action by any Party.

 

Section 8.2                                    Effect of Termination.  In the event of termination of this Agreement as provided in Section 8.1, this Agreement shall forthwith become void, and there shall be no liability on the part of any Party to another Party, except that (a) the provisions of this Section 8.2 and Article IX shall survive termination, and (b) nothing herein shall relieve any Party from liability for any breach of this Agreement.

 

ARTICLE IX
 GENERAL PROVISIONS

 

Section 9.1                                    Fees and Expenses.  Except as set forth in the Registration Rights Agreement, each of the Parties shall bear its own fees and expenses incurred in connection with or related to this Agreement and the transactions contemplated hereby ; provided, however, that in any action or proceeding to enforce rights under this Agreement, the prevailing Party shall be entitled to recover costs and attorneys’ fees.

 

Section 9.2                                    Amendment and Modification.  This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by

 

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an instrument in writing specifically designated as an amendment hereto, signed by or on behalf of each Party.

 

Section 9.3                                    Waiver.  No failure or delay of any Party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Parties hereunder are cumulative and are not exclusive of any rights or remedies which they would otherwise have hereunder.  Any agreement on the part of any Party to any such waiver shall be valid only if set forth in a written instrument executed and delivered by a duly authorized officer or other authorized representative on behalf of such Party.

 

Section 9.4                                    Notices.  All notices and other communications hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if by e-mail, upon written confirmation of the receipt thereof by e-mail or otherwise, (b) on the first Business Day following the date of dispatch if delivered utilizing a next- day service by a recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid.  All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the Party to receive such notice:

 

(i)                                     if to the Company, to:

 

Workspace Property Trust

700 Dresher Road, Suite 150

Horsham, Pennsylvania 19044

Attention: Christopher B. Allen, Chief Financial Officer

Email: callen@workspaceproperty.com

 

With a copy (which shall not constitute notice) to:

 

Seyfarth Shaw LLP

620 Eighth Avenue

New York, New York 10018

Attention: Blake Hornick
 Email: BHornick@seyfarth.com

 

(ii)                                  if to Safanad or to any Safanad Entity, to:

 

c/o Safanad Suburban Office Partnership, LP

505 Fifth Avenue

24th Floor

New York, New York 10017

Attention: [ · ]

Email: [ · ]

 

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With a copy (which shall not constitute notice) to:

 

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, New York 10166

Attention: Glenn Pollner

Email: GPollner@gibsondunn.com

 

Section 9.5                                    Interpretation.  When a reference is made in this Agreement to a Section or Article such reference shall be to a Section or Article of or to this Agreement, unless otherwise indicated.  The headings contained in this Agreement are for convenience of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  All words used in this Agreement will be construed to be of such gender or number as the circumstances require.  The word “including” and words of similar import when used in this Agreement will mean “including, without limitation,” unless otherwise specified.

 

Section 9.6                                    Entire Agreement.  This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous written or oral agreements, arrangements, communications and understandings, between the Parties with respect to the subject matter hereof.

 

Section 9.7                                    No Third-Party Beneficiaries.  Other than as set forth in Section 9.9 hereof, nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the Parties and their respective successors and permitted assigns any legal or equitable right, benefit or remedy of any nature under or by reason of this Agreement.

 

Section 9.8                                    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to its choice of law provisions.

 

Section 9.9                                    Assignment; Successors.  Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of Law or otherwise, by any Party without the prior written consent of the other Parties, and any such assignment without such prior written consent shall be null and void.  Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

 

Section 9.10                             Enforcement.  The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  Accordingly, each of the Parties shall be entitled to specific performance of the terms hereof, including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any New York state or federal court, this being in addition to any other remedy to which such Party is entitled at law or in equity.  Each of the Parties hereby further waives (a) any defense in any action for specific performance that a remedy at law would be adequate and (b) any requirement under any law to post security as a prerequisite to obtaining equitable relief.

 

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Section 9.11                             Severability.  Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein, so long as the economic and legal substance of the transactions contemplated hereby are not affected in a manner materially adverse to any party hereto.

 

Section 9.12                             WAIVER OF JURY TRIAL.  EACH OF THE PARTIES TO THIS AGREEMENT (ON ITS BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS SHAREHOLDERS OR UNITHOLDERS, AS APPLICABLE, AND AFFILIATES) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 9.13                             Counterparts.  This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party.

 

Section 9.14                             Facsimile or Electronic Signature.  This Agreement may be executed by facsimile or electronic signature and a facsimile or electronic signature shall constitute an original for all purposes.

 

Section 9.15                             Survival of Representations and Warranties.  Each of the representations and warranties of the Parties contained herein shall survive the Closing.

 

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IN WITNESS WHEREOF, the Company and each of the Safanad Entities have caused this Agreement to be executed as of the date first written above by their respective officers or other authorized representatives thereunto duly authorized.

 

	
 
    	
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By
    	
 
    
	
 
    	
 
    	
Name:
    	
Roger   W. Thomas
    
	
 
    	
 
    	
Title:
    	
President,   Secretary, Treasurer & Chief Operating Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SAFANAD   SUBURBAN OFFICE PARTNERSHIP, LP
    
	
 
    	
 
    
	
 
    	
By:   SSOP GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:   
    	
 
    
	
 
    	
 
    
	
 
    	
SSOP   MANAGEMENT, LLC
    
	
 
    	
 
    
	
 
    	
By:   Safanad Inc., its sole member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:   
    
	
 
    	
 
    
	
 
    	
SSOP   SLP SPLITTER, LLC
    
	
 
    	
 
    
	
 
    	
By:   Safanad Inc., as manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:   
    

 

 

	
Acknowledged   by:
    	
 
    
	
 
    	
 
    
	
WORKSPACE   PROPERTY TRUST, L.P.
    	
 
    
	
 
    	
 
    
	
By:
    	
Workspace   RVFP, L.P., its General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
RVFP   WS GP, LLC, its General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
RV   Office, LLC, its Managing Member
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:   Roger W. Thomas
    	
 
    
	
Title:   Chief Operating Officer & President
    	
 
    
				

 

14Exhibit 10.9

 

TIME-BASED LTIP UNIT AGREEMENT (2017)

 

This LTIP Unit Agreement (this “Agreement”), dated as of       , 2017 (the “Grant Date”), is made by and between Workspace Property Trust, a Maryland real estate investment trust (the “Trust”), Workspace Property Trust, L.P., a Delaware limited partnership (the “Partnership”), and           (the “Participant”).

 

WHEREAS, the Trust and the Partnership maintain the Workspace Property Trust 2017 Incentive Award Plan (as amended from time to time, the “Plan”);

 

WHEREAS, the Trust and the Partnership wish to carry out the Plan (the terms of which are hereby incorporated by reference and made a part of this Agreement);

 

WHEREAS, Section 9.7 of the Plan provides for the issuance of LTIP Units to Eligible Individuals for the performance of services to or for the benefit of the Partnership (a) in the Eligible Individual’s capacity as a partner of the Partnership, (b) in anticipation of the Eligible Individual becoming a partner of the Partnership, or (c) as otherwise determined by the Administrator; and

 

WHEREAS, the Administrator has determined that it would be to the advantage and in the best interest of the Trust to issue the Award (as defined below) to the Participant as an inducement to enter into or remain in the service of the Trust, the Partnership or any Subsidiary, and as an additional incentive during such service, and has advised the Trust thereof.

 

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

 

1.             Issuance of Award. Pursuant to the Plan, in consideration of the Participant’s agreement to provide services to or for the benefit of the Partnership, the Partnership hereby (a) issues to the Participant an award of             LTIP Units (the “Award”),  and (b) if not already a Partner, admits the Participant as a Partner of the Partnership on the terms and conditions set forth herein, in the Plan and in the Partnership Agreement.  The Partnership and the Participant acknowledge and agree that the LTIP Units are hereby issued to the Participant for the performance of services to or for the benefit of the Partnership in his or her capacity as a Partner, in anticipation of the Participant becoming a Partner, or as otherwise determined by the Administrator.  Upon receipt of the Award, the Participant shall, automatically and without further action on his or her part, be deemed to be a party to, signatory of and bound by the Partnership Agreement.  At the request of the Partnership, the Participant shall execute the Partnership Agreement or a joinder or counterpart signature page thereto.  The Participant acknowledges that the Partnership may from time to time issue or cancel (or otherwise modify) LTIP Units in accordance with the terms of the Partnership Agreement.  The Award shall have the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption and conversion set forth herein, in the Plan and in the Partnership Agreement.

 

2.             Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below.  All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan and/or the Partnership Agreement, as applicable.

 

(a)           “Cause” means “Cause” as defined in the Participant’s applicable employment or severance agreement with the Trust if such an agreement exists and contains a definition of Cause, or, if no such agreement exists or such agreement does not contain a definition of Cause, then Cause shall mean the commission by Participant of any of the following acts or omissions: (i) willful and continued failure or habitual neglect in the

 

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performance of Participant’s duties to the Trust (other than any such failure resulting from Participant’s incapacity due to physical or mental illness) after written demand for substantial performance is delivered by the Trust specifically identifying the manner in which the Trust believes Participant has not substantially performed his duties and Participant has failed to cure such circumstance within thirty (30) days after receipt of such notice; (ii) any act of fraud, embezzlement, misappropriation, or dishonesty related to Participant’s duties to the Trust that results in material harm to the Trust; (iii) a conviction of or plea of “guilty” or “no contest” to a felony under the laws of the United States or any state thereof; (iv) material violation of any written agreement to which the Participant is a party imposing restrictive covenants upon Participant’s activities; or (v) willful and continuing breach of any agreement between the Participant and the Trust or Partnership, after written demand for substantial performance is delivered by the Trust or Partnership specifically identifying the manner in which the Trust or Partnership believes Participant has breached the applicable agreement and Participant has failed to materially cure such breach within thirty (30) days after receipt of such notice. For purposes of this Section 2(a), no act, or failure to act, on Participant’s part shall be considered “willful” unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in furtherance of, or not opposed to, the interests of the Trust. Any determination of Cause will be made by the Board at a duly held meeting of the Board (held after reasonable notice to Participant and reasonable opportunity for him, together with his counsel, to be heard before the Board at the meeting) and pursuant to resolutions duly adopted by the affirmative vote of the majority of the Board present and voting at such meeting finding that in the good faith opinion of the Board that Participant has engaged in acts or omissions constituting Cause, provided that no such determination may be made, until Participant has been given written notice detailing the specific Cause event and, where applicable, the lapsing of any cure period.

 

(b)           “Disability” means “Disability” as defined in the Participant’s applicable employment or severance agreement with the Trust if such an agreement exists and contains a definition of Disability, or, if no such agreement exists or such agreement does not contain a definition of Disability, then Disability means the inability of Participant, as a result of any medically determinable physical or mental disease, injury, or congenital condition, to substantially perform his principal duties to the Trust, with or without reasonable accommodation, for a continuous period of one hundred and eighty (180) days, or periods aggregating two hundred and seventy (270) days in any twelve (12) month period.

 

(c)           “Good Reason” means “Good Reason” as defined in the Participant’s applicable employment or severance agreement with the Trust if such an agreement exists and contains a definition of Good Reason, or, if no such agreement exists or such agreement does not contain a definition of Good Reason, then Good Reason means the occurrence of any of the following events or conditions without the Participant’s written consent:

 

(i)                                     a material diminution in the Participant’s authority, duties or responsibilities;

 

(ii)                                  a reduction in the Participant’s then-effective annual base salary; or

 

(iii)                               a material change in the geographic location at which Participant must perform the services to the Trust or the Partnership to any location other a relocation to the metropolitan areas of Philadelphia, Pennsylvania or New York, New York.

 

A termination of employment by the Participant shall not be deemed to be for Good Reason unless (A) the Participant gives the Trust written notice describing the event or events which are the basis for such termination within sixty (60) days after the Participant first becomes aware (or reasonably should have  become aware) of such event, (B) such grounds for termination (if susceptible to correction) are not corrected by the Trust within thirty (30) days of the Trust’s receipt of such notice (“Correction Period”), and (C) the Participant terminates his or her employment no later than thirty (30) days following the expiration of the Correction Period.

 

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(d)           “Qualifying Termination” means a Termination of Service by reason of (i) the Participant’s death, (ii) a termination by the Trust, the Partnership or any Subsidiary due to the Participant’s Disability, (iii) a termination by the Trust, the Partnership or any Subsidiary other than for Cause, or (iv) a termination by the Participant for Good Reason; provided that in each case the Participant (or his beneficiary) executes and does not revoke any release of claims or similar agreement required as a condition to the receipt of separation benefits following such Qualifying Termination by the Participant’s applicable employment or severance agreement, or if the Participant is not a party to such an agreement, a release of claims in such form as the Committee may reasonably require.

 

(e)           “Restrictions” means the exposure to forfeiture set forth in Section 5.

 

(f)            “Service Provider” means an Employee, Consultant or member of the Board, as applicable.

 

3.             LTIP Units Subject to Partnership Agreement; Transfer Restrictions.

 

(a)           The Award and the LTIP Units are subject to the terms of the Plan and the terms of the Partnership Agreement, including, without limitation, the restrictions on transfer of Units (including, without limitation, LTIP Units) set forth in Section 11.3 of the Partnership Agreement.  Any permitted transferee of the Award or LTIP Units shall take such Award or LTIP Units subject to the terms of the Plan, this Agreement, and the Partnership Agreement.  Any such permitted transferee must, upon the request of the Partnership, agree to be bound by the Plan, the Partnership Agreement, and this Agreement, and shall execute the same on request, and must agree to such other waivers, limitations, and restrictions as the Partnership or the Trust may reasonably require.  Any Transfer of the Award or LTIP Units which is not made in compliance with the Plan, the Partnership Agreement and this Agreement shall be null and void and of no effect.

 

(b)           Without the consent of the Administrator (which it may give or withhold in its sole discretion), the Participant shall not sell, pledge, assign, hypothecate, transfer, or otherwise dispose of (collectively, “Transfer”) any unvested LTIP Units or any portion of the Award attributable to such unvested LTIP Units (or any securities into which such unvested LTIP Units are converted or exchanged), other than by will or pursuant to the laws of descent and distribution (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions shall not apply to any Transfer of unvested LTIP Units or of the Award to the Partnership or the Trust.

 

4.             Vesting.

 

(a)           Time Vesting.  Subject to Sections 4(b) and 5 below, the Restrictions set forth in Section 5 below will lapse and the LTIP Units will vest and become nonforfeitable in accordance with and subject to the time vesting schedule set forth on Exhibit A attached hereto, subject to the Participant’s continued status as a Service Provider through each applicable vesting date.

 

(b)           Change in Control.  Notwithstanding the foregoing, in the event that a Change in Control occurs and the Participant has not incurred a Termination of Service prior to such Change in Control, any LTIP Units that are not continued, converted, assumed, or replaced by the surviving or successor entity in such Change in Control will vest in full and become nonforfeitable immediately prior to such Change in Control in accordance with, and to the extent provided by, Section 12.2(d) of the Plan.

 

5.             Effect of Termination of Service.

 

(a)           Termination of Service.  Subject to Section 5(b) below, in the event of the Participant’s Termination of Service for any reason, any and all LTIP Units that have not vested as of the date of such 

 

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Termination of Service (after taking into account any accelerated vesting that occurs in connection with such termination) will automatically and without any further action be cancelled and forfeited without payment of any consideration therefor, and the Participant shall have no further right to or interest in such LTIP Units.  No LTIP Units which have not vested as of the date of the Participant’s Termination of Service shall thereafter become vested.

 

(b)           Qualifying Termination.  In the event that the Participant incurs a Qualifying Termination, the LTIP Units will vest in full and become nonforfeitable upon such Qualifying Termination.

 

6.             Execution and Return of Documents and Certificates.  At the Trust’s or the Partnership’s request, the Participant hereby agrees to promptly execute, deliver and return to the Partnership any and all documents or certificates that the Trust or the Partnership deems necessary or desirable to effectuate the cancellation and forfeiture of the unvested LTIP Units and the portion of the Award attributable to the unvested LTIP Units, or to effectuate the transfer or surrender of such unvested LTIP Units and portion of the Award to the Partnership.

 

7.             Covenants, Representations and Warranties. The Participant hereby represents, warrants, covenants, acknowledges and agrees on behalf of the Participant and his or her spouse, if applicable, that:

 

(a)           Investment.  The Participant is holding the Award and the LTIP Units for the Participant’s own account, and not for the account of any other Person.  The Participant is holding the Award and the LTIP Units for investment and not with a view to distribution or resale thereof except in compliance with applicable laws regulating securities.

 

(b)           Relation to the Partnership.  The Participant is presently an executive officer and employee of, or consultant to, the Partnership, or is otherwise providing services to or for the benefit of the Partnership, and in such capacity has become personally familiar with the business of the Trust and the Partnership.

 

(c)           Access to Information.  The Participant has had the opportunity to ask questions of, and to receive answers from, the Partnership with respect to the terms and conditions of the transactions contemplated hereby and with respect to the business, affairs, financial conditions, and results of operations of the Partnership.

 

(d)           Registration. The Participant understands that the LTIP Units have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and the LTIP Units cannot be transferred by the Participant unless such transfer is registered under the Securities Act or an exemption from such registration is available.  The Partnership has made no agreements, covenants or undertakings whatsoever to register the transfer of the LTIP Units under the Securities Act.  The Partnership has made no representations, warranties, or covenants whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act, will be available.  If an exemption under Rule 144 is available at all, it will not be available until at least six (6) months from issuance of the Award and then not unless the terms and conditions of Rule 144 have been satisfied.

 

(e)           Public Trading.  None of the Partnership’s securities are presently publicly traded, and the Partnership has made no representations, covenants or agreements as to whether there will be a public market for any of its securities.

 

(f)            Tax Advice.  The Partnership has made no warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Agreement (including, without limitation, with respect to the consequences of making an election under Section 83(b) of the Code as required by Section 10), and the Participant is in no manner relying on the Partnership or its representatives for an assessment of such tax consequences.  Participant hereby recognizes that the Internal Revenue Service has

 

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proposed regulations under Sections 83 and 704 of the Code that may affect the proper treatment of the LTIP Units for federal income tax purposes.  In the event that those proposed regulations are finalized, the Participant hereby agrees to cooperate with the Partnership in amending this Agreement and the Partnership Agreement, and to take such other action as may be required, to conform to such regulations.  Participant hereby further recognizes that the U.S. Congress is considering legislation that would change the federal tax consequences of owning and disposing of LTIP Units.  The Participant is advised to consult with his or her own tax advisor with respect to such tax consequences and his or her ownership of the LTIP Units.

 

8.             Capital Account.  The Participant shall make no contribution of capital to the Partnership in connection with the Award and, as a result, the Participant’s Capital Account balance in the Partnership immediately after its receipt of the LTIP Units shall be equal to zero, unless the Participant was a Partner in the Partnership prior to such issuance, in which case the Participant’s Capital Account balance shall not be increased as a result of its receipt of the LTIP Units.

 

9.             Redemption Rights. Notwithstanding the contrary terms in the Partnership Agreement, Partnership Common Units which are acquired upon the conversion of LTIP Units pursuant to Section 16.9 of the Partnership Agreement shall not, without the consent of the Partnership (which may be given or withheld in its sole discretion), be redeemed pursuant to Section 15.1 of the Partnership Agreement within twelve (12) months of the date of the conversion of such LTIP Units.

 

10.          Section 83(b) Election.  The Participant covenants that the Participant shall make a timely election under Section 83(b) of the Code (and any comparable election in the state of the Participant’s residence) with respect to the LTIP Units covered by the Award, and the Partnership hereby consents to the making of such election(s).  In the event that the Participant fails to make a timely election, the Participant shall indemnify the Partnership against any additional expense incurred as a result of such failure.  In connection with such election, the Participant and the Participant’s spouse, if applicable, shall promptly provide a copy of such election to the Partnership.  Instructions for completing an election under Section 83(b) of the Code and a form of election under Section 83(b) of the Code are attached hereto as Exhibit B.  The Participant represents that the Participant has consulted any tax advisor(s) that the Participant deems advisable in connection with the filing of an election under Section 83(b) of the Code and similar state tax provisions. The Participant acknowledges that it is the Participant’s sole responsibility and not the Trust’s to timely file an election under Section 83(b) of the Code (and any comparable state election), even if the Participant requests that the Trust or any representative of the Trust make such filing on the Participant’s behalf. The Participant should consult his or her tax advisor to determine if there is a comparable election to file in the state of his or her residence.

 

11.          Ownership Information.  The Participant hereby covenants that so long as the Participant holds any LTIP Units, at the request of the Partnership, the Participant shall disclose to the Partnership in writing such information relating to the Participant’s ownership of the LTIP Units as the Partnership reasonably believes to be necessary or desirable to ascertain in order to comply with the Code or the requirements of any other appropriate taxing authority.

 

12.          Taxes. The Partnership and the Participant intend that (i) the LTIP Units be treated as a “profits interest” as defined in Internal Revenue Service Revenue Procedure 93-27, as clarified by Revenue Procedure 2001-43, (ii) the issuance of such units not be a taxable event to the Partnership or the Participant as provided in such revenue procedure, and (iii) the Partnership Agreement, the Plan and this Agreement be interpreted consistently with such intent. In furtherance of such intent, effective immediately prior to the issuance of the LTIP Units, the Partnership may revalue all Partnership assets to their respective gross fair market values, and make the resulting adjustments to the “Capital Accounts” (as defined in the Partnership Agreement) of the partners, in each case as set forth in the Partnership Agreement. The Trust, the Partnership or any Subsidiary may withhold from the Participant’s wages, or require the Participant to pay to such entity, any applicable withholding or 

 

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employment taxes resulting from the issuance of the Award hereunder, from the vesting or lapse of any restrictions imposed on the Award, or from the ownership or disposition of the LTIP Units.

 

13.          Remedies.  The Participant shall be liable to the Partnership for all costs and damages, including incidental and consequential damages, resulting from a disposition of the Award or the LTIP Units which is in violation of the provisions of this Agreement. Without limiting the generality of the foregoing, the Participant agrees that the Partnership shall be entitled to obtain specific performance of the obligations of the Participant under this Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce the same. The Participant will not urge as a defense that there is an adequate remedy at law.

 

14.          Restrictive Legends.  Certificates evidencing the Award, to the extent such certificates are issued, may bear such restrictive legends as the Partnership and/or the Partnership’s counsel may deem necessary or advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends or any legends similar thereto:

 

“The securities represented hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Any transfer of such securities will be invalid unless a Registration Statement under the Securities Act is in effect as to such transfer or in the opinion of counsel for Workspace Property Trust, L.P. (the “Partnership”) such registration is unnecessary in order for such transfer to comply with the Securities Act.”

 

“The securities represented hereby are subject to forfeiture, transferability and other restrictions as set forth in (i) a written agreement with the Partnership, (ii) the Workspace Property Trust 2017 Incentive Award Plan and (iii) the Amended and Restated Agreement of Limited Partnership of the Partnership, in each case, as has been and as may in the future be amended (or amended and restated) from time to time, and such securities may not be sold or otherwise transferred except pursuant to the provisions of such documents.”

 

15.          Restrictions on Public Sale by the Participant.  To the extent not inconsistent with applicable law, the Participant agrees not to effect any sale or distribution of the LTIP Units or any similar security of the Trust or the Partnership, or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during the fourteen (14) days prior to, and during the up to 180-day period beginning on, the date of the pricing of any public or private debt or equity securities offering by the Trust or the Partnership (except as part of such offering), if and to the extent requested in writing by the Partnership or the Trust in the case of a non-underwritten public or private offering or if and to the extent requested in writing by the managing underwriter or underwriters (or initial purchaser or initial purchasers, as the case may be) and consented to by the Partnership or the Trust, which consent may be given or withheld in the Partnership’s or the Trust’s sole and absolute discretion, in the case of an underwritten public or private offering (such agreement to be in the form of a lock-up agreement provided by the Trust, the Partnership, managing underwriter or underwriters, or initial purchaser or purchasers as the case may be).

 

16.          Conformity to Securities Laws.  The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of all applicable federal and state laws, rules and regulations (including, but not limited to the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including without limitation the applicable exemptive conditions of Rule 16b-3 of the Exchange Act) and to such approvals by any listing, regulatory or other governmental authority as may, in the opinion of counsel for the Partnership or the Trust, be necessary or advisable in connection therewith. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award of LTIP Units is made, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan, this Agreement and the Award shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

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17.          Code Section 409A.  To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the effective date of this Agreement. Notwithstanding any provision of this Agreement to the contrary, in the event that following the effective date of this Agreement, the Trust or the Partnership determines that the Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the effective date of this Agreement ), the Trust or the Partnership may adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect ), or take any other actions, that the Trust or the Partnership determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance; provided, however, that this Section 17 shall not create any obligation on the part of the Trust, the Partnership or any Subsidiary to adopt any such amendment, policy or procedure or take any such other action.

 

18.          No Right to Continued Service.  Nothing in this Agreement shall confer upon the Participant any right to continue as a Service Provider of the Trust, the Partnership or any Subsidiary, or shall interfere with or restrict in any way the rights of the Trust, the Partnership or any Subsidiary, which rights are hereby expressly reserved, to discharge the Participant at any time for any reason whatsoever, with or without cause.

 

19.          Miscellaneous.

 

(a)           Incorporation of the Plan.  This Agreement is made under and subject to and governed by all of the terms and conditions of the Plan. In the event of any discrepancy or inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall control. By signing this Agreement, the Participant confirms that he or she has received access to a copy of the Plan and has had an opportunity to review the contents thereof.

 

(b)           Clawback.  This Award shall be subject to any clawback or recoupment policy currently in effect or as may be adopted by the Trust or the Partnership, in each case, as may be amended from time to time.

 

(c)           Successors and Assigns. Subject to the limitations set forth in this Agreement, this Agreement shall be binding upon, and inure to the benefit of, the executors, administrators, heirs, legal representatives, successors and assigns of the parties hereto, including, without limitation, any business entity that succeeds to the business of the Trust or the Partnership.

 

(d)           Entire Agreement; Amendments and Waivers. This Agreement, together with the Plan and the Partnership Agreement, constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties.  In the event that the provisions of such other agreement or letter conflict or are inconsistent with  the provisions of this Agreement, the provisions of this Agreement shall control.  Except as set forth in Section 17 above, this Agreement may not be amended except in an instrument in writing signed on behalf of each of the parties hereto and approved by the Administrator. No amendment, supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

(e)           Survival of Representations and Warranties. The representations, warranties and covenants contained in Section 7 hereof shall survive the later of the date of execution and delivery of this Agreement or the issuance of the Award.

 

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(f)            Severability.  If for any reason one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument.

 

(g)           Titles.  The titles, captions or headings of the Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 

(h)           Counterparts.  This Agreement may be executed in any number of counterparts, any of which may be executed and transmitted by facsimile (including, without limitation, transfer by .pdf), and each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument.

 

(i)            Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland applicable to contracts entered into and wholly to be performed within the State of Maryland by Maryland residents, without regard to any otherwise governing principles of conflicts of law that would choose the law of any state other than the State of Maryland.

 

(j)            Notices. Any notice to be given by the Participant under the terms of this Agreement shall be addressed to the General Counsel of the Trust at the Trust’s address set forth in Exhibit A attached hereto.  Any notice to be given to the Participant shall be addressed to him or her at the Participant’s then current address on the books and records of the Trust.  By a notice given pursuant to this Section 19(j), either party may hereafter designate a different address for notices to be given to him or her. Any notice which is required to be given to the Participant shall, if the Participant is then deceased, be given to the Participant’s personal representative if such representative has previously informed the Trust of his or her status and address by written notice under this Section 19(j) (and the Trust shall be entitled to rely on any such notice provided to it that it in good faith believes to be true and correct, with no duty of inquiry). Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed as set forth above or upon confirmation of delivery by a nationally recognized overnight delivery service.

 

(k)           Fractional Units.  For purposes of this Agreement, any fractional LTIP Units that vest or become entitled to distributions pursuant to the Partnership Agreement will be rounded as determined by the Trust or the Partnership; provided, however, that in no event shall such rounding cause the aggregate number of LTIP Units that vest or become entitled to such distributions to exceed the total number of LTIP Units set forth in Section 1 of this Agreement.

 

[Signature Page Follows]

 

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

 

	
 
    	
WORKSPACE PROPERTY TRUST,
    
	
 
    	
a Maryland real estate   investment trust, both on behalf of itself and on behalf of, and in its   capacity as General Partner of, Workspace Property Trust, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
The Participant hereby accepts and agrees to be   bound by all of the terms and conditions of this Agreement.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

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Exhibit A

 

Vesting Schedule and Notice Address

 

Vesting Commencement Date:                , 2017.

 

Vesting Schedule

 

	
Vesting Dates
   (Anniversaries of Vesting
   Commencement Date)
    	
 
    	
Percentage of Total Award Vesting
    	
 
    
	
First Anniversary
    	
 
    	
20
    	
%
    
	
Second Anniversary
    	
 
    	
20
    	
%
    
	
Third Anniversary
    	
 
    	
20
    	
%
    
	
Fourth Anniversary
    	
 
    	
20
    	
%
    
	
Fifth Anniversary
    	
 
    	
20
    	
%
    

 

Trust Address

 

 

Exhibit B

 

FORM OF SECTION 83(b) ELECTION AND INSTRUCTIONS

 

These instructions are provided to assist you if you choose to make an election under Section 83(b) of the Internal Revenue Code, as amended, with respect to the LTIP Units of Workspace Property Trust,  L.P. transferred to you. Please consult with your personal tax advisor as to whether an election of this nature will be in your best interests in light of your personal tax situation.

 

The executed original of the Section 83(b) election must be filed with the Internal Revenue Service not later than 30 days after the grant date.  PLEASE NOTE: There is no remedy for failure to file on time. Follow the steps outlined below to ensure that the election is mailed and filed correctly and in a timely manner. PLEASE ALSO NOTE: If you make the Section 83(b) election, the election is irrevocable.

 

Complete all of the Section 83(b) election steps below:

 

1.         Complete the Section 83(b) election form (sample form follows) and make four (4) copies of the signed election form. (Your spouse, if any, should also sign the Section 83(b) election form.)

 

2.         Prepare a cover letter to the Internal Revenue Service (sample letter included, following election form).

 

3.         Send the cover letter with the originally executed Section 83(b) election form and one (1) copy via certified mail, return receipt requested to the Internal Revenue Service at the address of the Internal Revenue Service where you file your personal tax returns.

 

It is advisable that you have the package date-stamped at the post office. Enclose a self-addressed, stamped envelope so that the Internal Revenue Service may return a date-stamped copy to you. However, your postmarked receipt is your proof of having timely filed the Section 83(b) election if you do not receive confirmation from the Internal Revenue Service.

 

4.         One (1) copy must be sent to Workspace Property Trust,  L.P.’s legal department for its records.

 

5.         Retain the Internal Revenue Service file stamped copy (when returned) for your records.

 

Please consult your personal tax advisor for the address of the office of the Internal Revenue Service to which you should mail your election form.

 

 

ELECTION PURSUANT TO SECTION 83(B) OF THE INTERNAL REVENUE CODE

 

The undersigned hereby elects pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in the undersigned’s gross income for the taxable year in which the property was transferred the excess (if any) of the fair market value of the property described below, over the amount the undersigned paid for such property, if any, and supplies herewith the following information in accordance with the Treasury regulations promulgated under Section 83(b):

 

1.                                      The name, address and taxpayer identification (social security) number of the undersigned, and the taxable year in which this election is being made, are:

 

TAXPAYER’S NAME:

 

TAXPAYER’S SOCIAL SECURITY NUMBER:

 

ADDRESS:

 

TAXABLE YEAR:

 

The name, address and taxpayer identification (social security) number of the undersigned’s spouse are (complete if applicable):

 

SPOUSE’S NAME:

 

SPOUSE’S SOCIAL SECURITY NUMBER:

 

ADDRESS:

 

2.                                      The property with respect to which the election is made consists of             LTIP Units (the “Units”) of Workspace Property Trust,  L.P. (the “Partnership”), representing an interest in the future profits, losses and distributions of the Partnership.

 

3.                                      The date on which the above property was transferred to the undersigned was            , 2017.

 

4.                                      The above property is subject to the following restrictions: The Units are subject to forfeiture to the extent unvested upon a termination of service with the Trust under certain circumstances. These restrictions lapse upon the satisfaction of certain conditions as set forth in an agreement between the taxpayer and the Partnership.  In addition, the Units are subject to certain transfer restrictions pursuant to such agreement and the Second Amended and Restated Agreement of Limited Partnership of Workspace Property Trust,  L.P., as amended (or amended and restated) from time to time, should the taxpayer wish to transfer the Units.

 

5.                                      The fair market value of the above property at the time of transfer (determined without regard to any restrictions other than those which by their terms will never lapse) was $0.

 

6.                                      The amount paid for the above property by the undersigned was $0.

 

7.                                      The undersigned taxpayer will file this election with the Internal Revenue Service office with which taxpayer files his or her annual income tax return not later than 30 days after the date of transfer of the property.  A copy of this election will be furnished to the person for whom the services were performed.  The undersigned is the person performing the services in connection with which the property was transferred.

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The undersigned spouse of the taxpayer joins in   this election. (Complete if applicable.)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Spouse   Name:
    

 

 

VIA CERTIFIED MAIL

 

RETURN RECEIPT REQUESTED

 

Internal Revenue Service

 

	
 
    	
 
    
	
[Address   where taxpayer files returns]
    	
 
    

 

Re: Election under Section 83(b) of the Internal Revenue Code of 1986

 

Taxpayer:

Taxpayer’s Social Security Number:

Taxpayer’s Spouse:

Taxpayer’s Spouse’s Social Security Number:

 

Ladies and Gentlemen:

 

Enclosed please find an original and one copy of an Election under Section 83(b) of the Internal Revenue Code of 1986, as amended, being made by the taxpayer referenced above. Please acknowledge receipt of the enclosed materials by stamping the enclosed copy of the Election and returning it to me in the self-addressed stamped envelope provided herewith.

 

Very truly yours,

 

Enclosures

cc: Workspace Property Trust, L.P.

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