Document:

Exhibit 10.1

 

Execution Version

 

 

AMENDMENT NO. 6 TO FIRST LIEN CREDIT
AGREEMENT

 

dated as of

 

January 27, 2020,

 

among

 

FOCUS FINANCIAL PARTNERS, LLC,

as the Borrower,

 

THE LENDERS PARTY HERETO,

 

and

 

ROYAL BANK OF CANADA,

as Term Administrative Agent, Collateral Agent and Fronting Bank

 

 

 

RBC
CAPITAL MARKETS,*

 

SUNTRUST ROBINSON HUMPHREY, INC.,

 

BMO CAPITAL MARKETS CORP.,

 

BOFA SECURITIES, INC.,

 

CAPITAL ONE, NATIONAL ASSOCIATION,

 

FIFTH THIRD SECURITIES,

 

GOLDMAN SACHS BANK USA,

 

MUFG BANK, LTD.,

 

REGIONS CAPITAL MARKETS, A DIVISION OF
REGIONS BANK

 

and 

 

KKR CAPITAL MARKETS LLC,

as Lead Arrangers and Bookrunners

 

 

 

 * RBC
Capital Markets is a brand name for the capital markets businesses of Royal Bank of Canada and its affiliates.

 

     

     

    

 

AMENDMENT NO. 6 TO FIRST LIEN CREDIT
AGREEMENT

 

This AMENDMENT NO. 6
TO FIRST LIEN CREDIT AGREEMENT, dated as of January 27, 2020 (this “Amendment”), among FOCUS FINANCIAL PARTNERS,
LLC, a Delaware limited liability company (the “Borrower”), ROYAL BANK OF CANADA, as term administrative agent
and collateral agent (in such capacities, the “Term Administrative Agent”) under the Credit Agreement referred
to below, each Repricing Participating Lender (as defined below) party hereto and the Fronting Bank (as defined below).

 

RECITALS:

 

WHEREAS, reference
is made to the First Lien Credit Agreement, dated as of July 3, 2017 (as amended, restated, amended and restated, supplemented
or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement” and as may
be further amended, restated, amended and restated, supplemented or otherwise modified from time to time, including by this Amendment,
the “Credit Agreement”), among the Borrower, the lenders or other financial institutions or entities from time
to time party thereto and the Term Administrative Agent (capitalized terms used but not defined herein having the meaning provided
in the Credit Agreement), pursuant to which the Lenders made Tranche B-2 Term Loans to the Borrower on the Amendment No. 4 Effective
Date in an aggregate initial principal amount of $803,000,000 and additional Tranche B-2 Term Loans to the Borrower on the Amendment
No. 5 Effective Date in an aggregate initial principal amount of $350,000,000;

 

WHEREAS, the Borrower
has requested Replacement Term Loans and Replacement Term Loan Commitments in an aggregate principal amount of $1,139,187,324.00
(the “Tranche B-3 Term Loans”; the Replacement Term Loan Commitments in respect of such Tranche B-3 Term Loans,
the “Tranche B-3 Term Loan Commitments”; and the Repricing Participating Lenders (as defined below) with Tranche
B-3 Term Loan Commitments and any permitted assignees thereof, the “Tranche B-3 Term Loan Lenders”), which will
be available on the Amendment No. 6 Effective Date (as defined below) to refinance all Tranche B-2 Term Loans outstanding under
the Existing Credit Agreement immediately prior to effectiveness of this Amendment (the “Existing Term Loans”)
and which Tranche B-3 Term Loans shall constitute Replacement Term Loans and Term Loans (as applicable) for all purposes of the
Credit Agreement and the other Credit Documents;

 

WHEREAS, each
Lender holding Existing Term Loans under the Existing Credit Agreement immediately prior to effectiveness of this Amendment (each,
an “Existing Term Lender”) executing and delivering a notice of participation in the Tranche B-3 Term Loans
in the form attached as Exhibit A hereto (a “Tranche B-3 Participation Notice”) and electing the cashless
settlement option therein (each such Existing Term Lender in such capacity and with respect to the Existing Term Loans so elected,
a “Converting Lender” and, together with each other Person executing and delivering a Tranche B-3 Participation
Notice or otherwise providing a Tranche B-3 Term Loan Commitment, the “Repricing Participating Lenders”) shall
be deemed to have exchanged on the Amendment No. 6 Effective Date the aggregate outstanding principal amount of its Existing Term
Loans under the Existing Credit Agreement for an equal aggregate principal amount of Tranche B-3 Term Loans under the Credit Agreement;

 

WHEREAS,
Royal Bank of Canada agrees to act as fronting bank for the syndication of the Tranche B-3 Term Loans (in such capacity, the
 “Fronting Bank”), and the Fronting Bank will purchase, and the Existing Term Lenders that execute and
deliver a Tranche B-3 Participation Notice and elect the cash settlement option therein (the “Non-Converting
Lenders”) will sell to the Fronting Bank, immediately prior to effectiveness of this Amendment, the Existing Term
Loans then held by the Non-Converting Lenders (the Existing Term Loans described in this recital, the “Participating
Cash Settlement Term Loans”);

 

    	 	2	 

     

    

 

WHEREAS, the Fronting
Bank will fund, on the Amendment No. 6 Effective Date, an aggregate principal amount of Tranche B-3 Term Loans equal to the aggregate
outstanding principal amount of the Existing Term Loans of Existing Term Lenders that do not execute and deliver a Tranche B-3
Participation Notice (the “Non-Participating Lenders”), the proceeds of which shall be used on the Amendment
No. 6 Effective Date to refinance such outstanding Existing Term Loans of the Non-Participating Lenders (the Existing Term
Loans described in this recital, the “Non-Participating Cash Settlement Term Loans” and, together with the Participating
Cash Settlement Term Loans, the “Reallocated Term Loans”);

 

WHEREAS, (a) to
the extent there exist (1) any Participating Cash Settlement Term Loans, the Fronting Bank shall be deemed to exchange on the Amendment
No. 6 Effective Date such Participating Cash Settlement Term Loans on a cashless settlement basis for an equal aggregate principal
amount of Tranche B-3 Term Loans under the Credit Agreement and (2) any Non-Participating Cash Settlement Term Loans, the Fronting
Bank shall apply on the Amendment No. 6 Effective Date proceeds of Tranche B-3 Term Loans in an aggregate amount equal to the aggregate
amount of such Non-Participating Cash Settlement Term Loans to the repayment of such Non-Participating Cash Settlement Term
Loans and (b) the Tranche B-3 Term Loans exchanged for or applied to the repayment of such Reallocated Term Loans shall promptly
(but not later than 30 days following the Amendment No. 6 Effective Date (or such later date as may be agreed to by the Fronting
Bank in its sole discretion)) thereafter be purchased by the applicable Repricing Participating Lenders (such Repricing Participating
Lenders, other than Existing Term Lenders, the “New Lenders”), Non-Converting Lenders, and Existing Term Lenders
that have elected to purchase additional Tranche B-3 Term Loans, each in accordance with such Repricing Participating Lenders’
respective Tranche B-3 Participation Notice and as allocated by the Lead Arrangers (as defined below) hereunder (in each case,
subject to the prior written consent of the Borrower);

 

WHEREAS, contemporaneously
with the effectiveness of the Tranche B-3 Term Loan Commitments on the Amendment No. 6 Effective Date, the Borrower wishes to (a)
make certain amendments to the Existing Credit Agreement to provide for the incurrence of the Tranche B-3 Term Loans and (b) make
certain other modifications to the Existing Credit Agreement set forth herein; and

 

WHEREAS, this
Amendment constitutes a Permitted Repricing Amendment, and the Borrower is hereby notifying the Term Administrative Agent that
it is requesting the establishment of Replacement Term Loans pursuant to Section 13.1 of the Existing Credit Agreement.

 

NOW, THEREFORE, in consideration of
the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

		1.	Existing Credit Agreement Amendments. Effective as of the Amendment No. 6 Effective
Date, the Existing Credit Agreement is hereby amended as follows:

 

		(a)	The Existing Credit Agreement is amended and supplemented by attaching thereto Schedule 1.1(d)
hereto, which sets forth the Tranche B-3 Term Loan Commitments of each of the Tranche B-3 Term Loan Lenders.

 

    	 	3	 

     

    

 

		(b)	Section 1.1 of the Existing Credit Agreement is hereby amended by deleting the definitions of “Tranche
B-2 Term Loan Lender”, “Tranche B-2 Term Loan Repayment Amount” and “Tranche B-2 Term Loan Repayment Date”
contained therein.

 

		(c)	Section 1.1 of the Existing Credit Agreement is hereby amended by adding the following new defined
terms in their correct alphabetical order:

 

“Amendment
No. 6” means Amendment No. 6 to this Agreement, dated as of January 27, 2020 among the Borrower, the Term Administrative
Agent, the Collateral Agent and the lenders party thereto.

 

“Amendment
No. 6 Effective Date” has the meaning assigned to such term in Amendment No. 6.

 

“Tranche
B-3 Term Loan Commitments” has the meaning assigned to such term in Amendment No. 6.

 

“Tranche
B-3 Term Loan Lender” shall mean a Lender with a Tranche B-3
Term Loan Commitment or an outstanding Tranche B-3 Term Loan.

 

“Tranche
B-3 Term Loan Maturity Date” shall mean July 3, 2024 or, if such date is not a Business Day, the immediately preceding
Business Day.

 

“Tranche
B-3 Term Loan Repayment Amount” shall have the meaning provided in Section 2.5(b).

 

“Tranche
B-3 Term Loan Repayment Date” shall have the meaning provided in Section 2.5(b).

 

“Tranche
B-3 Term Loans” has the meaning assigned to such term in Amendment No. 6.

 

		(d)	Global Amendments to Certain Defined Terms.

 

(i)       Each
reference to “Tranche B-2 Term Loan” and “Tranche B-2 Term Loans”, as applicable, contained in the definition
of “Repricing Transaction” set forth in Section 1.1 of the Existing Credit Agreement, Section 2.5(a), Section
2.7, Section 2.14(d), Section 5.1(b), Section 5.2(c) and 13.1 is replaced with a reference to “Tranche B-3 Term
Loan” or “Tranche B-3 Term Loans”, as appropriate;

 

(ii)      Each reference to “Tranche B-2 Term Loan Commitment” and “Tranche B-2 Term Loan Commitments”, as
applicable, contained in the definition of “Total Term Loan Commitment” set forth in Section 1.1 of the Existing Credit
Agreement is replaced with a reference to “Tranche B-3 Term Loan Commitment” or “Tranche B-3 Term Loan Commitments”,
as appropriate;

 

(iii)     Each
reference to “Tranche B-2 Term Loan Lender” and “Tranche B-2 Term Loan Lenders”, as applicable, contained
in Section 2.5(a), Section 2.5(b) and Section 5.2(c) is replaced with a reference to “Tranche B-3 Term Loan Lender”
or “Tranche B-3 Term Loan Lenders”, as appropriate;

 

    	 	4	 

     

    

 

(iv)     Each
reference to “Tranche B-2 Term Loan Maturity Date” contained in the definition of “Maturity Date” set
forth in Section 1.1 of the Existing Credit Agreement, Section 2.5(a), Section 2.5(b), Section 2.14(d), Section 2.14(g),
Section 10.5(c) and Section 13.1 is replaced with a reference to “Tranche B-3 Term Loan Maturity Date”;

 

(v)      Each
reference to “Tranche B-2 Term Loan Repayment Amount” and “Tranche B-2 Term Loan Repayment Amounts”, as
applicable, contained in the definition of “Repayment Amount” set forth in Section 1.1 of the Existing Credit Agreement,
Section 2.5(b), Section 5.1(a) and Section 13.1 is replaced with a reference to “Tranche B-3 Term Loan Repayment
Amount” or “Tranche B-3 Term Loan Repayment Amounts”, as appropriate; and

 

(vi)     Each
reference to “Tranche B-2 Term Loan Repayment Date” contained in Section 2.5(b) and Section 13.1 is replaced
with a reference to “Tranche B-3 Term Loan Repayment Date”.

 

		(e)	The definition of “Applicable Margin” set forth in Section 1.1 of the Existing Credit
Agreement is hereby amended by replacing clause (a) thereof in its entirety with the following:

 

“(a)      in connection with
the Tranche B-3 Term Loans, (1) for LIBOR Loans, 2.00% and (2) for ABR Loans, 1.00%; and”.

 

		(f)	The definition of “Class” set forth in Section 1.1 of the Existing Credit Agreement
is hereby amended by (i) adding a reference to “Tranche B-3 Term Loans,” immediately following the reference to
 “Tranche B-2 Term Loans,” contained in clause (i) thereof and (ii) adding a reference to “Tranche B-3 Term
Loan Commitment,” immediately following the reference to “Tranche B-2 Term Loan Commitment,” contained in clause (ii)
thereof.

 

		(g)	The definition of “Commitments” set forth in Section 1.1 of the Existing Credit Agreement
is hereby amended by adding a reference to “Tranche B-3 Term Loan Commitment,” immediately following the reference
to “Tranche B-2 Term Loan Commitment,” contained therein.

 

		(h)	The definition of “Term Loan Commitment” set forth in Section 1.1 of the Existing Credit
Agreement is hereby amended by replacing the reference to “and/or Tranche B-2 Term Loan Commitment” contained therein
with a reference to “, Tranche B-2 Term Loan Commitment and/or Tranche B-3 Term Loan Commitment”.

 

		(i)	The definition of “Term Loans” set forth in Section 1.1 of the Existing Credit Agreement
is hereby amended by adding a reference to “Tranche B-3 Term Loans,” immediately following the reference to “Tranche
B-2 Term Loans,” contained therein.

 

		(j)	Section 2.1 of the Existing Credit Agreement is hereby amended by adding the following new clause
(i) at the end thereof:

 

“(i) Subject to the
terms and conditions set forth herein and in Amendment No. 6, each Tranche B-3 Term Loan Lender with a Tranche B-3 Term Loan
Commitment severally agrees to make (or exchange, as applicable) on the Amendment No. 6 Effective Date, a Tranche B-3 Term
Loan to the Borrower denominated in Dollars in an amount equal to such Tranche B-3 Term Loan Lender’s Tranche B-3 Term
Loan Commitment. The Borrower may make only one borrowing under the Tranche B-3 Term Loan Commitments, which shall be on the
Amendment No. 6 Effective Date. Amounts borrowed under this Section 2.1(i) and repaid or prepaid may not be reborrowed.
Tranche B-3 Term Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.”

 

    	 	5	 

     

    

 

		(k)	Section 2.5(e) of the Existing Credit Agreement is hereby amended by adding a reference to “Tranche
B-3 Term Loan,” immediately following the reference to “Tranche B-2 Term Loan,” contained therein.

 

		(l)	Section 2.5(g) of the Existing Credit Agreement is hereby amended by adding a reference to “Tranche
B-3 Term Loans,” immediately following the reference to “Tranche B-2 Term Loans,” contained therein.

 

		(m)	Section 2.7 of the Existing Credit Agreement is hereby amended by replacing the reference to “Initial
Term Loan Commitments” contained therein with a reference to “Tranche B-3 Term Loan Commitments”.

 

		(n)	Section 4.3 of the Existing Credit Agreement is hereby amended by adding the following new clause
(g) at the end thereof:

 

“(g) The Tranche B-3 Term
Loan Commitments shall terminate immediately and without further action on the Amendment No. 6 Effective Date after giving effect
to the funding of the Tranche B-3 Term Loans on such date.”

 

		(o)	Section 5.1(b) of the Existing Credit Agreement is hereby amended by replacing the reference to
 “Amendment No. 5 Effective Date” contained therein with a reference to “Amendment No. 6 Effective Date”.

 

		(p)	Section 9.13 of the Existing Credit Agreement is hereby amended by (i) replacing the reference
to “and” at the end of clause (d) thereof with a reference to “,” and (ii) replacing the reference
to “.” at the end of clause (e) with a reference to the following:

 

“and (f) the Tranche B-3
Term Loans to refinance in full all the Tranche B-2 Term Loans outstanding on the Amendment No. 6 Effective Date and to pay related
fees and expenses.”

 

		(q)	Section 13.1 of the Existing Credit Agreement is hereby amended by adding the following new paragraph
to the end thereof:

 

“Notwithstanding
anything in this Agreement to the contrary, if the LIBOR Screen Rate for any LIBOR Quoted Currency is no longer available or
the syndicated loan market has otherwise adopted a replacement rate therefor, then the Borrower and the Administrative Agent
may amend this Agreement in order to adopt a broadly accepted replacement rate and make any other changes necessary or
advisable (in their good faith determination) to reflect such adoption. Such amendment shall become effective without any
further action or consent of any Lender or other Person so long as the Administrative Agent shall not have received, within
five (5) Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice
from the Required Lenders stating that such Required Lenders object to such amendment; provided that, if such alternate rate
of interest shall be less than zero, such rate shall be deemed to be zero.”

 

    	 	6	 

     

    

 

		(r)	Section 13 of the Existing Credit Agreement is hereby amended by adding the following new Section
13.24 thereto:

 

“13.24.    Acknowledgement
Regarding Any Supported QFCs. To the extent that the Credit Documents provide support, through
a guarantee or otherwise, for hedge agreements or any other agreement or instrument that is a QFC (such support, “QFC
Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows
with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title
II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the
 “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions
below applicable notwithstanding that the Credit Documents and any Supported QFC may in fact be stated to be governed by the laws
of the State of New York and/or of the United States or any other state of the United States):

 

(a)       In
the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding
under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any
interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported
QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective
under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and
rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party
or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights
under the Credit Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against
such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S.
Special Resolution Regime if the Supported QFC and the Credit Documents were governed by the laws of the United States or a state
of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties
with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or
any QFC Credit Support.

 

(b)       As
used in this Section 13.24, the following terms have the following meanings:

 

“BHC
Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance
with, 12 U.S.C. 1841(k)) of such party.

 

    	 	7	 

     

    

 

“Covered
Entity” means any of the following:

 

i. a
 “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

 

ii.
a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

 

iii.
a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§
252.81, 47.2 or 382.1, as applicable.

 

“QFC”
has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with,
12 U.S.C. 5390(c)(8)(D).”

 

		2.	Tranche B-3 Term Loans. Subject to the terms and conditions set forth herein, each
Tranche B-3 Term Loan Lender severally agrees to exchange Existing Term Loans for Tranche B-3 Term Loans and/or make
Tranche B-3 Term Loans to the Borrower in a single borrowing in Dollars on the Amendment No. 6 Effective Date. The Tranche B-3
Term Loans shall be subject to the following terms and conditions:

 

		(a)	Terms Generally. Other than as set forth herein, for all purposes under the Credit Agreement
and the other Credit Documents, the Tranche B-3 Term Loans shall have the same terms as the Existing Term Loans under the Existing
Credit Agreement and shall be treated for purposes of voluntary and mandatory prepayments (including for scheduled principal payments)
and all other terms as Existing Term Loans under the Existing Credit Agreement.

 

		(b)	Proposed Borrowing. Notwithstanding any other provisions of the Credit Agreement or any
other Credit Document to the contrary, solely for purposes of the Tranche B-3 Term Loans to be borrowed by the Borrower on the
Amendment No. 6 Effective Date, this Amendment shall constitute a Borrowing Request by the Borrower to borrow the Tranche B-3
Term Loans from the Tranche B-3 Term Loan Lenders under the Credit Agreement.

 

		(c)	New Lenders. Each New Lender (i) confirms that it has received a copy of the Existing Credit
Agreement and the other Credit Documents and the exhibits and schedules thereto, together with copies of the financial statements
referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Amendment and the Credit Agreement; (ii) agrees that it will, independently and without reliance upon the Term
Administrative Agent, the lead arrangers and bookrunners noted on the cover page hereof (the “Lead Arrangers”)
or any Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Term Administrative Agent
to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Credit Documents
as are delegated to the Term Administrative Agent by the terms thereof, together with such powers as are reasonably incidental
thereto; and (iv) agrees that it will perform all of the obligations which by the terms of the Credit Agreement are required to
be performed by it as a Lender, as the case may be, in each case, in accordance with
the terms thereof as set forth in the Credit Agreement. Each New Lender acknowledges and agrees that it shall become a “Tranche
B-3 Term Loan Lender” and a “Term Loan Lender” under, and for all purposes of, the Credit Agreement and the other
Credit Documents, and shall be subject to and bound by the terms thereof, and shall have all rights of a “Tranche B-3 Term
Loan Lender” and a “Term Loan Lender” thereunder. The Borrower hereby consents, for purposes of Section 13.6(b)(i)(A)
of the Credit Agreement, to the assignment on or within ninety (90) days of the Amendment No. 6 Effective Date of any Tranche B-3
Term Loans by the Fronting Bank, to (A) any Person that was an Existing Term Lender on the Amendment No. 6 Effective Date (immediately
prior to giving effect thereto) or (B) any assignees separately identified, and acceptable, to the Borrower.

 

    	 	8	 

     

    

 

		(d)	Credit Agreement Governs. Except as set forth in this Amendment, the Tranche B-3 Term Loans
shall otherwise be subject to the provisions of the Credit Agreement and the other Credit Documents.

 

		(e)	Exchange Mechanics.

 

		(i)	On the Amendment No. 6 Effective Date, upon the satisfaction or waiver (by the Lead Arrangers)
of the conditions set forth in Section 3 hereof, the outstanding principal amount of Existing Term Loans of each Converting Lender
exchanged pursuant to this Amendment shall be deemed to be exchanged for an equal outstanding principal amount of Tranche B-3 Term
Loans under the Credit Agreement. Such exchange shall be effected by book entry in such manner, and with such supporting documentation,
as may be reasonably determined by the Term Administrative Agent in its sole discretion in consultation with the Borrower. It is
acknowledged and agreed that each Converting Lender has agreed to accept as satisfaction in full of its right to receive payment
on the outstanding amount of Existing Term Loans of such Converting Lender the conversion of its Existing Term Loans into Tranche
B-3 Term Loans in accordance herewith, in lieu of the prepayment amount that would otherwise be payable by the Borrower pursuant
to the Credit Agreement in respect of the outstanding amount of Existing Term Loans of such Converting Lender. Notwithstanding
anything to the contrary herein or in the Credit Agreement, each Converting Lender hereby waives any rights or claims to compensation
pursuant to Section 2.11 of the Credit Agreement in respect of its Existing Term Loans exchanged for Tranche B-3 Term Loans.

 

		(ii)	(A) To the extent there exist (1) any Participating Cash Settlement Term Loans, the Fronting Bank
shall be deemed to exchange on the Amendment No. 6 Effective Date such Reallocated Term Loans on a cashless settlement basis for
an equal aggregate principal amount of Tranche B-3 Term Loans under the Credit Agreement and (2) any Non-Participating Cash Settlement
Term Loans, the Fronting Bank shall apply on the Amendment No. 6 Effective Date proceeds of Tranche B-3 Term Loans in an aggregate
amount equal to the aggregate amount of such Non-Participating Cash Settlement Term Loans to the repayment of such Non-Participating
Cash Settlement Term Loans and (B) promptly following the Amendment No. 6 Effective Date (but not later than 30 days following
the Amendment No. 6 Effective Date (or such later date as may be agreed to by the Fronting Bank in its sole discretion)), each
New Lender, each Non-Converting Lender and each Existing Term
Lender purchasing additional Tranche B-3 Term Loans shall purchase from the Fronting Bank the Tranche B-3 Term Loans exchanged
for or applied to the repayment of such Reallocated Term Loans as directed by the Lead Arrangers hereunder (in each case, subject
to the prior written consent of the Borrower), in accordance with such Repricing Participating Lender’s Tranche B-3 Participation
Notice and as allocated by the Lead Arrangers hereunder. Purchases and sales of Reallocated Term Loans and Tranche B-3 Term Loans
shall be without representations from the Fronting Bank other than as provided for in the relevant Assignment and Acceptance.

 

    	 	9	 

     

    

 

		3.	Effective Date Conditions. This Amendment will become effective on the date (the
 “Amendment No. 6 Effective Date”), on which each of the following conditions have been satisfied (or waived
by the Lead Arrangers) in accordance with the terms therein:

 

		(a)	the Term Administrative Agent (or its counsel) shall have received from each of the Borrower, the
Repricing Participating Lenders and the Fronting Bank, either (i) a counterpart of this Amendment signed on behalf of such party
or (ii) written evidence satisfactory to the Term Administrative Agent (which may include facsimile or other electronic transmission
of a signed counterpart of this Amendment) that such party has signed a counterpart to this Amendment;

 

		(b)	the Term Administrative Agent shall have received a certificate of the Borrower dated as of the
Amendment No. 6 Effective Date and executed by a secretary, assistant secretary or other senior officer (as the case may be) thereof
(i) (A) certifying and attaching the resolutions or similar consents adopted by the Borrower approving or consenting to this Amendment
and the Tranche B-3 Term Loans, (B) certifying that the certificate of formation and operating agreement of the Borrower have not
been amended since the Amendment No. 5 Effective Date, and (C) certifying as to the incumbency and specimen signature of each officer
executing this Amendment and any related documents on behalf of the Borrower and (ii) certifying as to the matters set forth in
clauses (d) and (e) below;

 

		(c)	the Term Administrative Agent shall have received all fees and other amounts previously agreed
to in writing by the Lead Arrangers and the Borrower to be due on or prior to the Amendment No. 6 Effective Date, including, to
the extent invoiced at least three Business Days prior to the Amendment No. 6 Effective Date (or such later date as is reasonably
agreed by the Borrower), the reasonable and documented out-of-pocket legal fees and expenses and the reasonable and documented
out-of-pocket fees and expenses of any other advisors in accordance with the terms of the Credit Agreement;

 

		(d)	the representations and warranties in Section 4 of this Amendment shall be true and correct in
all material respects on and as of the Amendment No. 6 Effective Date; provided that, (A) in the case of any such representation
and warranty which expressly relates to a given date or period, such representation and warranty shall be true and correct in all
material respects as of the respective date or for the respective period, as the case may be and (B) if any such representation
and warranty is qualified by or subject to a “material adverse effect”, “material adverse change” or similar
term or qualification such representation and warranty shall be true and correct in all respects;

 

    	 	10	 

     

    

 

 

		(e)	no Default or Event of Default shall exist on the Amendment No. 6 Effective Date before or after
giving effect to the effectiveness of this Amendment and the incurrence of the Tranche B-3 Term Loans; and

 

		(f)	the Term Administrative Agent shall have received a certificate dated as of the Amendment No. 6
Effective Date from the Chief Executive Officer, the President, the Chief Financial Officer, the Treasurer, the Vice President-Finance,
a Director, a Manager, or any other senior financial officer of the Borrower to the effect that after giving effect to this Amendment,
the Borrower is Solvent.

 

		4.	Representations and Warranties. On the Amendment No. 6 Effective Date, the Borrower,
on behalf of itself and each other Credit Party (as applicable), hereby represents and warrants that:

 

		(a)	The Borrower has the corporate or other organizational power and authority to execute, deliver
and carry out the terms and provisions under this Amendment and has taken all necessary corporate or other organizational action
to authorize the execution, delivery and performance of this Amendment. The Borrower has duly executed and delivered this Amendment
and this Amendment constitutes the legal, valid, and binding obligation of the Borrower enforceable in accordance with its terms,
except as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights
generally and subject to general principles of equity;

 

		(b)	neither the execution, delivery or performance by the Borrower of this Amendment nor compliance
with the terms and provisions hereof nor the consummation of the other transactions contemplated hereby will (a) contravene any
applicable provision of any material law, statute, rule, regulation, order, writ, injunction or decree of any court or governmental
instrumentality other than as would not reasonably be expected to result in a Material Adverse Effect, (b) result in any breach
of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition
of (or the obligation to create or impose) any Lien upon any of the property or assets of any Credit Party or any of the Restricted
Subsidiaries (other than Liens created under the Credit Documents or Permitted Liens) pursuant to, the terms of any material indenture,
loan agreement, lease agreement, mortgage, deed of trust, agreement or other material instrument to which any Credit Party or any
of the Restricted Subsidiaries is a party or by which it or any of its property or assets is bound other than any such breach,
default or Lien that would not reasonably be expected to result in a Material Adverse Effect or (c) violate any provision of the
certificate of incorporation, by-laws, articles or other organizational documents of the Borrower or any of the Restricted Subsidiaries;

 

		(c)	the execution, delivery and performance of this Amendment does not require any consent or approval
of, registration or filing with, or other action by, any Governmental Authority, except for (i) such as have been obtained or made
and are in full force and effect and (ii) such licenses, approvals, authorizations, registrations, filings or consents the failure
of which to obtain or make would not reasonably be expected to result in a Material Adverse Effect; and

 

		(d)	both immediately before and after giving effect to the Amendment No. 6 Effective Date and the incurrence
of the Tranche B-3 Term Loans, (i) the representations and warranties of the Credit Parties set forth in the Credit Agreement and
the other Credit Documents shall be true and correct in all material respects (or, in the case of any such representation

 

    11

     

    

 

and warranty that is qualified
by “material”, “material adverse effect” or a similar term, in all respects), in each case, on and as of
the Amendment No. 6 Effective Date with the same effect as though such representations and warranties had been made on and as of
the Amendment No. 6 Effective Date, except to the extent that such representations and warranties relate to an earlier date, in
which case such representations and warranties shall be true and correct in all material respects (or, in the case of any such
representation and warranty that is qualified by “material”, “material adverse effect” or a similar term,
in all respects) as of such earlier date and (ii) no Default or Event of Default shall have occurred and be continuing on the Amendment
No. 6 Effective Date or would result from the consummation of this Amendment and the transactions contemplated hereby.

 

		5.	Use of Proceeds. The proceeds of the Tranche B-3 Term Loans shall be applied in exchange
for or to prepay in full the aggregate principal amount of Existing Term Loans outstanding on the Amendment No. 6 Effective Date
in accordance with the terms hereof and to pay related fees and expenses.

 

		6.	Reaffirmation of the Credit Parties; Reference to and Effect on the Credit Agreement and
the other Credit Documents.

 

		(a)	The Borrower, on behalf of itself and each other Credit Party, hereby confirms and agrees that,
notwithstanding the effectiveness of this Amendment, each Credit Document to which any Credit Party is a party is, and the obligations
of such Credit Party contained in the Credit Agreement, this Amendment or in any other Credit Document to which it is a party are,
and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects, in each case as amended
by this Amendment. For greater certainty and without limiting the foregoing, the Borrower, on behalf of itself and each other Credit
Party, hereby confirms that the existing security interests and/or guarantees granted by any Credit Party in favor of the Secured
Parties pursuant to the Credit Documents in the Collateral described therein shall continue to secure the obligations of the Credit
Parties under the Credit Agreement and the other Credit Documents as and to the extent provided in the Credit Documents. Except
as specifically amended by this Amendment, the Credit Agreement and the other Credit Documents shall remain in full force.

 

		(b)	Except to the extent expressly set forth in this Amendment, the execution, delivery and performance
of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of any
Agent or Lender under, the Credit Agreement or any of the other Credit Documents.

 

		(c)	On and after the Amendment No. 6 Effective Date, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the
Credit Agreement, and each reference in the other Credit Documents to the “Credit Agreement”, “thereunder”,
 “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement
as amended by this Amendment.

 

		7.	Notice. For purposes of the Credit Agreement, the initial notice address of each
New Lender shall be as separately identified to the Term Administrative Agent.

 

    12

     

    

 

		8.	Tax Forms. For each New Lender, delivered herewith to the Term Administrative Agent
are such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such New
Lender may be required to deliver to the Term Administrative Agent pursuant to Section 5.2(e) of the Credit Agreement.

 

		9.	Recordation of the New Loans. Upon execution and delivery hereof, the Term Administrative
Agent will record the Tranche B-3 Term Loans made by each Tranche B-3 Term Lender in the Register.

 

		10.	Amendment, Modification and Waiver. This Amendment may not be amended, modified or
waived except as permitted by Section 13.1 of the Credit Agreement.

 

		11.	Integration. This Amendment,
the other Credit Documents and the agreements regarding certain fees referred to herein represent the agreement of the Borrower,
the Collateral Agent, the Administrative Agents and the Lenders with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Borrower, the Administrative Agents, the Collateral Agent nor any Lender relative
to subject matter hereof not expressly set forth or referred to herein, in the Credit Agreement or in the other Credit Documents.
Nothing in this Amendment or in the other Credit Documents, expressed or implied, is intended to confer upon any party other than
the parties hereto and thereto any rights, remedies, obligations or liabilities under or by reason of this Amendment or the other
Credit Documents. This Amendment shall not constitute a novation of any amount owing under the Credit Agreement and all
amounts owing in respect of principal, interest, fees and other amounts pursuant to the Credit Agreement and the other Credit Documents
shall, to the extent not paid on or prior to the Amendment No. 6 Effective Date, continue to be owing under the Credit Agreement
or such other Credit Documents until paid in accordance therewith.

 

		12.	APPLICABLE LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS. THIS AMENDMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK. Each party hereto irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or proceeding relating to this Amendment to the exclusive general jurisdiction
of the courts of the State of New York or the courts of the United States for the Southern District of New York, in each case sitting
in New York City in the Borough of Manhattan, and appellate courts from any thereof; (b) consents that any such action or proceeding
shall be brought in such courts and waives (to the extent permitted by applicable law) any objection that it may now or hereafter
have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient
court and agrees not to plead or claim the same or to commence or support any such action or proceeding in any other courts; (c)
agrees that service of process in any such action or proceeding shall be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such Person at its address set forth on Schedule 13.2 of
the Credit Agreement or at such other address of which the applicable Administrative Agent shall have been notified pursuant to
Section 13.2 of the Credit Agreement; (d) agrees that nothing herein shall affect the right of the Administrative Agents, any Lender
or another Secured Party to effect service of process in any other manner permitted by law or to commence legal proceedings or
otherwise proceed against the Borrower or any other Credit Party in any other jurisdiction; and (e) waives, to the maximum extent
not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section
12 any special, exemplary,

 

    13

     

    

 

punitive or
consequential damages; provided that nothing in this clause (e) shall limit the Credit Parties’ indemnification obligations
set forth in Section 13.5 of the Credit Agreement.

 

		13.	Severability. Any provision of this Amendment that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

		14.	Counterparts. This Amendment may be executed by one or more of the parties to this
Amendment on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts
taken together shall be deemed to constitute an original and one and the same instrument. Delivery of an executed counterpart of
a signature page to this Amendment by facsimile or by email as a “.pdf” or “.tiff” attachment shall be
effective as delivery of a manually executed counterpart of this Amendment.

 

		15.	WAIVER OF JURY TRIAL. EACH
PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE LAW) TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AMENDMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

		16.	Credit Document. On and after the Amendment No. 6 Effective Date, this Amendment
shall constitute a “Credit Document” for all purposes of the Credit Agreement and the other Credit Documents.

 

[Signature
Pages Follow]

 

    14

     

    

 

IN WITNESS WHEREOF,
each of the undersigned has caused its duly authorized officer to execute and deliver this Amendment as of the date first set forth
above.

 

 

	 	FOCUS
    FINANCIAL PARTNERS, LLC
	 	 
	 	 
	 	By: 	/s/ James Shanahan
	 	Name:
    James Shanahan
	 	Title:
    Chief Financial Officer

 

[Signature Page to Amendment No. 6 to
First Lien Credit Agreement]

 

    

     

    

 

	 	ROYAL
    BANK OF CANADA, as Term Administrative Agent and Collateral Agent
	 	 
	 	 
	 	By:	/s/ Helena Sadowski
	 	Name:
    Helena Sadowski
	 	Title:
    Manager, Agency

 

[Signature Page to Amendment No. 6 to
First Lien Credit Agreement]

 

    

     

    

 

	 	ROYAL
    BANK OF CANADA, as Fronting Bank and Lender
	 	 
	 	 
	 	By:	/s/ Alex Figueroa
	 	Name:
    Alex Figueroa
	 	Title:
    Authorized Signatory

 

[Signature Page to Amendment No. 6 to
First Lien Credit Agreement]

 

    

     

    

 

EXHIBIT A

Form of Tranche B-3 Participation Notice

 

Royal Bank of Canada, as Term Administrative Agent

20 King Street West, 4th Floor

Toronto, Ontario M5H 1C4

Attention:              Manager, Agency Services

Telephone:            (416) 842-5196

Fax:                       (416) 842-4023

 

FOCUS FINANCIAL PARTNERS, LLC

Tranche B-3 Participation Notice

 

Ladies and Gentlemen:

 

Reference is made to
Amendment No. 6 (the “Amendment”) to that certain First Lien Credit Agreement, dated as of July 3, 2017 (as
may be further amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among, inter alia, FOCUS FINANCIAL PARTNERS, LLC (the “Borrower”), the Lenders party
thereto from time to time and ROYAL BANK OF CANADA, as term administrative agent (in such capacity, the “Term Administrative
Agent”). Unless otherwise specified herein, capitalized terms used but not defined herein are used as defined in the
Amendment.

 

By delivery of this
letter agreement (this “Tranche B-3 Participation Notice”), each of the undersigned (each a “Repricing
Participating Lender”), hereby irrevocably consents to the Amendment and the amendment of the Credit Agreement contemplated
thereby and (check as applicable):

 

Name of Repricing
Participating Lender:

 

_____________________________________________

 

Amount
of Existing Term Loans of such Repricing Participating Lender:

 

$____________________

 

		 ̈	Cashless Settlement Option. Hereby (i) elects, upon the Amendment
No. 6 Effective Date, to exchange the full amount (or such lesser amount allocated to such Converting Lender by the Lead Arrangers)
of the outstanding Existing Term Loans of such Repricing Participating Lender for an equal outstanding amount of Tranche B-3 Term
Loans under the Credit Agreement and (ii) represents and warrants to the Term Administrative Agent that it has the organizational
power and authority to execute, deliver and perform its obligations under this Tranche B-3 Participation Notice and the Amendment
(including, without limitation, with respect to any exchange contemplated hereby) and has taken all necessary corporate and other
organizational action to authorize the execution, delivery and performance of this Tranche B-3 Participation Notice and the Amendment.

 

		 ̈	Cash Settlement Option. Hereby (i) elects to have the full
amount (or such lesser amount allocated to such Converting Lender by the Lead Arrangers) of the outstanding Existing Term Loans
of such Repricing Participating Lender repaid or purchased and agrees to promptly (but in any event, on or prior to the date that
is 30 days following the

 

- Exhibit A-

 

    

     

    

 

Amendment No. 6 Effective Date) purchase
(via assignment and assumption) an equal amount of Tranche B-3 Term Loans and (ii) represents and warrants to the Term Administrative
Agent that it has the organizational power and authority to execute, deliver and perform its obligations under this Tranche B-3
Participation Notice and the Amendment (including, without limitation, with respect to any exchange contemplated hereby) and has
taken all necessary corporate and other organizational action to authorize the execution, delivery and performance of this Tranche
B-3 Participation Notice and the Amendment.

 

[Signature Page Follows]

 

- Exhibit A-

 

 

    

     

    

 

	 	Very
    truly yours,
	 	 	 
	 	 	 	,
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

 

	 	By:	
	 	 	Name:
	 	 	Title:

 

- Exhibit A-

 

    

     

    

 

Schedule 1.1(d)

 

TRANCHE B-3 TERM LOANS

 

	Lender	Commitment
	Royal Bank of Canada	$49,179,153.23
	Converting Lenders	$1,090,008,170.77
	TOTAL	$1,139,187,324.00

 

- Schedule 1.1(c) -eprt-ex101_7.htm

Exhibit 10.1

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the 24th day of January, 2020, by and between Essential Properties Realty Trust, Inc., a Maryland corporation (the “Company”), and Lawrence J. Minich (“Indemnitee”).

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

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

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

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

Section 1.Definitions.  For purposes of this Agreement:

(a)“Change in Control” means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of all of the Company’s then-outstanding securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of the Effective Date or (B) whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective Date or whose election or nomination for election was previously so approved.

1

 

 

(b)“Corporate Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company.  As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company:  (i) if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership, limited liability company, joint venture, trust or other enterprise (1) of which a majority of the voting power or equity interest is or was owned directly or indirectly by the Company or (2) the management of which is controlled directly or indirectly by the Company and (ii) if, as a result of Indemnitee’s service to the Company or any of its affiliated entities, Indemnitee is subject to duties by, or required to perform services for, an employee benefit plan or its participants or beneficiaries, including as deemed fiduciary thereof.

(c)“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.

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

(e)“Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, arbitration and mediation costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding.  Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium, security for and other costs relating to any cost bond, supersedeas bond or other appeal bond or its equivalent.  

(f)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in 

2

 

 

representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  

(g)“Proceeding” means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, claim, demand, discovery request or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee.  If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

Section 2.Services by Indemnitee.  Indemnitee will serve in the capacity or capacities set forth in the first WHEREAS clause above.  However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company.  This Agreement shall not be deemed an employment contract between the Company (or any other entity) and Indemnitee.

Section 3.General.  The Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date.  The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by the Maryland General Corporation Law (the “MGCL”), including, without limitation, Section 2-418 of the MGCL.

Section 4.Standard for Indemnification.  If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding unless it is established that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

Section 5.Certain Limits on Indemnification.  Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to:

(a)indemnification hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable to the Company; 

3

 

 

(b)indemnification hereunder if Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status; or

(c)indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

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

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

(b)if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper without regard to any limitation on such court-ordered indemnification contemplated by Section 2-418(d)(2)(ii) of the MGCL.  

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

Section 8.Advance of Expenses for Indemnitee.  If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall, 

4

 

 

without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding.  The Company shall make such advance within ten days after the receipt by the Company of a statement or statements requesting such advance from time to time, whether prior to or after final disposition of such Proceeding and may be in the form of, in the reasonable discretion of the Indemnitee (but without duplication) (a) payment of such Expenses directly to third parties on behalf of Indemnitee, (b) advance of funds to Indemnitee in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee’s payment of such Expenses.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof.  To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis.  The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post security therefor.

Section 9.Indemnification and Advance of Expenses as a Witness or Other Participant.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Company or any other person, and to which Indemnitee is not a party, Indemnitee shall be advanced and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee.  In connection with any such advance of Expenses, the Company may require Indemnitee to provide an undertaking and affirmation substantially in the form attached hereto as Exhibit A. 

Section 10.Procedure for Determination of Entitlement to Indemnification.

(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary or appropriate to determine whether and to what extent Indemnitee is entitled to indemnification.  Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion.  The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

(b)Upon written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control has occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be 

5

 

 

delivered to Indemnitee, which Independent Counsel shall be selected by the Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval shall not be unreasonably withheld; or (ii) if a Change in Control has not occurred, (A) by a majority vote of the Disinterested Directors or, by the majority vote of a  group of Disinterested Directors designated by the Disinterested Directors to make the determination, (B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by the Indemnitee, which approval shall not be unreasonably withheld or delayed, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by the Board of Directors, by the stockholders of the Company, other than directors or officers who are parties to the Proceeding.  If it is so determined that Indemnitee is entitled to indemnification, the Company shall make payment to Indemnitee within ten days after such determination.  Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary or appropriate to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b).  Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

(c)The Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.

Section 11.Presumptions and Effect of Certain Proceedings.

(a)In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of overcoming that presumption in connection with the making of any determination contrary to that presumption.  

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

(c)The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

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Section 12.Remedies of Indemnitee.

(a)If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, or in an arbitration conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association, of Indemnitee’s entitlement to indemnification or advance of Expenses.  Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce Indemnitee’s rights under Section 7 of this Agreement.  Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.  

(b)In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be.  If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).  The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement.

(c)If a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification that was not disclosed in connection with the determination. 

(d)In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the 

7

 

 

Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by Indemnitee in such judicial adjudication or arbitration.  If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.  

(e)Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either the tenth day after the date on which the Company was requested to advance Expenses in accordance with Sections 8 or 9 of this Agreement or the 60th day after the date on which the Company was requested to make the determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) ending on the date such payment is made to Indemnitee by the Company.

Section 13.Defense of the Underlying Proceeding.

(a)Indemnitee shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding.  The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

(b)Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) above.  The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee.  This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement.

(c)Notwithstanding the provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld or delayed, that Indemnitee may have separate 

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

Section 14.Non-Exclusivity; Survival of Rights; Subrogation.

(a)The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise.  Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of the charter or Bylaws of the Company, this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

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

Section 15.Insurance.  

(a)The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of Indemnitee’s Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of Indemnitee’s Corporate Status.  In the event of a Change in Control, the Company shall 

9

 

 

maintain in force any and all directors and officers liability insurance policies that were maintained by the Company immediately prior to the Change in Control for a period of six years with the insurance carrier or carriers and through the insurance broker in place at the time of the Change in Control; provided, however, (i) if the carriers will not offer the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained and (ii) if any replacement insurance carrier is necessary to obtain a policy substantially comparable in scope and amount, such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of the existing insurance carrier; provided, further, however, in no event shall the Company be required to expend in the aggregate in excess of 250% of the annual premium or premiums paid by the Company for directors and officers liability insurance in effect on the date of the Change in Control.  In the event that 250% of the annual premium paid by the Company for such existing directors and officers liability insurance is insufficient for such coverage, the Company shall spend up to that amount to purchase such lesser coverage as may be obtained with such amount.

(b)Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee which would otherwise be indemnifiable hereunder arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in Section 15(a).  The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies.  If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.

(c)The Indemnitee shall cooperate with the Company or any insurance carrier of the Company with respect to any Proceeding. 

Section 16.Coordination of Payments.  The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 17.Contribution.  If the indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4 or due to the provisions of Section 5, then, in respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), to the fullest extent permissible under applicable law, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, penalties, and/or amounts paid or to be paid in settlement, in connection with any Proceeding without 

10

 

 

requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

Section 18.Reports to Stockholders.  To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.

Section 19.Duration of Agreement; Binding Effect.

(a)This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).  

(b)The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

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

(d)The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm.  Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing 

11

 

 

actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled.  Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith.  The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

Section 20.Severability.  If any provision or provisions of this Agreement shall be held to be invalid, void, illegal or otherwise unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 21.Counterparts.  This Agreement may be executed in one or more counterparts, (delivery of which may be by facsimile, or via e-mail as a portable document format (.pdf) or other electronic format), each of which will be deemed to be an original and it will not be necessary in making proof of this agreement or the terms of this Agreement to produce or account for more than one such counterpart.  One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

Section 22.Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 23.Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor, unless otherwise expressly stated, shall such waiver constitute a continuing waiver.

Section 24.Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

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(a)If to Indemnitee, to the address set forth on the signature page hereto.

(b)If to the Company, to:

Essential Properties Realty Trust, Inc.

902 Carnegie Center Boulevard

Suite 520

Princeton, New Jersey 08540

 

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

 

Section 25.Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.

[SIGNATURE PAGE FOLLOWS]

13

 

 

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

 

		
	
 
	
COMPANY:

	
 
	
Essential Properties Realty Trust, Inc

	
 
	
By:  _/s/ Hillary P. Hai

	
 
	
Name: Hillary P. Hai

	
 
	
Title: Chief Financial Officer

 

 

 

		
	
 
	
INDEMNITEE

	
 
	
/s/ Lawrence J. Minich__________________

	
 
	
Name: Lawrence J. Minich

	
 
	
Address: 

 

 

 

 

 

 

 

 

14

 

 

EXHIBIT A

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To:  The Board of Directors of Essential Properties Realty Trust, Inc.

 

Re:  Affirmation and Undertaking 

 

Ladies and Gentlemen:

 

This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement dated the _____ day of ______________, 20____, by and between Essential Properties Realty Trust, Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).

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

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

In consideration of the advance by the Company for Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.  

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this ___ day of ____________________, 20____.

 

		
	
 
	
Name: _____________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]