Document:

Exhibit

PICO Holdings, Inc.
Amended and Restated Nonemployee Director Compensation Policy

		
	1.
	General

The PICO Holdings, Inc. Amended and Restated Nonemployee Director Compensation Policy (the “Policy”) is designed to provide for the compensation of each member of the board of directors (the “Board”) of PICO Holdings, Inc. (the “Company”) who is a Nonemployee Director (as defined in the PICO Holdings, Inc. 2014 Equity Incentive Plan (the “EIP”)) (each, a “Nonemployee Director”).  The Policy will become effective on May 3, 2018 and will continue in effect until its termination by the Board.  The Policy will replace and supersede any and all compensation policies or programs previously established or maintained by the Company with respect to Nonemployee Directors.

		
	2.
	Administration

The Policy will be administered by the Board.  The Board will have the sole discretion and authority to administer, interpret, amend and terminate the Policy, and the decisions of the Board will in every case be final and binding on all persons having an interest in the Policy.

		
	3.
	Eligibility

Each Nonemployee Director will be eligible to receive the compensation set forth in the Policy in accordance with the terms of the Policy.  Such compensation will be paid or granted, as applicable, automatically and without further action of the Board to each Nonemployee Director. 

		
	4.
	Annual Retainers

(a)General.  Subject to Sections 4(b), 4(c) and 4(d), each Nonemployee Director will be eligible to receive annual retainers (each, an “Annual Retainer”) in the values set forth in the following table for each calendar year of service as a member of the Board.  

	
		
	Dollar Value
Per Calendar Year If Paid Fully in Cash
(“Cash Dollar Value”)
	Dollar Value
Per Calendar Year If Paid Fully in RSUs
(“RSU Dollar Value”)

	$35,000
	$43,750

For clarity, an individual will not be eligible to receive any Annual Retainer set forth in the table above (the “Table”) unless he or she is a Nonemployee Director on the applicable payment or grant date.

(b)Prorated Annual Retainers for Mid-Year Appointees.  Section 4(a) will apply to any Nonemployee Director who is newly appointed as a member of the Board, in each case after January 1 of a calendar year (each, a “Mid-Year Appointee”); provided, however, that with respect to any Annual Retainer for such Mid-Year Appointee’s first (partial) calendar year of service, “Cash Dollar Value” and “RSU Dollar Value” will mean, as applicable, (i) the amount set forth in the Table, multiplied by (ii) a fraction, the numerator of which is the number of days in the period beginning on (and including) the effective date of such Mid-Year Appointee’s appointment and ending on (and including) December 31 of such calendar year and the denominator of which is the total number of days during such calendar year.

(c)Dollar Value of Annual Retainers.  The dollar value of each Annual Retainer payable to a Nonemployee Director will be determined in accordance with the following terms.

(i)If a Nonemployee Director makes an election pursuant to Section 4(d) to receive any portion of an Annual Retainer in the form of cash, the dollar value of such portion will be equal to (A) the applicable Cash Dollar Value (as set forth in the Table and adjusted pursuant to Section 4(b), if applicable) or 100% of any lesser amount elected by such Nonemployee Director pursuant to Section 4(d)(i), as applicable, multiplied by (B) the percentage elected by such Nonemployee Director (the “Cash Election Percentage”).

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(ii)If a Nonemployee Director makes an election pursuant to Section 4(d) to receive any portion of an Annual Retainer in the form of a restricted stock unit (“RSU”) award, the dollar value of such portion will be equal to (A) the applicable RSU Dollar Value (as set forth in the Table and adjusted pursuant to Section 4(b), if applicable) or 125% of any lesser amount elected by such Nonemployee Director pursuant to Section 4(d)(i), as applicable, multiplied by (B) the percentage elected by such Nonemployee Director (the “RSU Election Percentage”).

(d)Election for Annual Retainers.

(i)With respect to any Annual Retainer, each Nonemployee Director may make an election (A) to receive the full amount of such Annual Retainer (i.e., based on the applicable Cash Dollar Value and/or RSU Dollar Value (as set forth in the Table and adjusted pursuant to Section 4(b), if applicable)) or any lesser amount (including zero) and (B) to receive any portion of such Annual Retainer in the form of cash or an RSU award. 

(ii)With respect to any Annual Retainer for a particular calendar year of service, any election made pursuant to this Section 4(d) (A) must be made on a form provided by the Company, (B) must be made on or before December 31 of the year immediately prior to such calendar year (or such earlier date as required by the Company); provided, however, that any such election made by a Mid-Year Appointee who will become a new member of the Board may be made before the effective date of his or her appointment to the Board, and (C) will be irrevocable once made.

(iii)If a Nonemployee Director does not make an election pursuant to this Section 4(d) or fails to submit such an election on a timely basis, such Nonemployee Director will be deemed to have elected (A) to receive the full amount of his or her Annual Retainer(s), and (B) to receive his or her Annual Retainer(s) in the form of cash only.

(e)Terms of Annual Retainers in the Form of Cash.  

(i)Subject to Section 4(e)(ii), with respect to any Annual Retainer for a particular calendar year of service, the portion (if any) of such Annual Retainer to be paid in the form of cash, as determined in accordance with Section 4(c)(i), will be paid in substantially equal quarterly installments on January 1, April 1, July 1 and October 1 of such calendar year, provided that the Nonemployee Director is in service as a member of the Board on the applicable payment date.
(ii)With respect to any Annual Retainer for a Mid-Year Appointee’s first (partial) calendar year of service, the portion (if any) of such Annual Retainer to be paid in the form of cash will be paid as follows: 

(A)     the first installment will be paid on the effective date of such Mid-Year Appointee’s appointment and the amount of such first installment will be equal to (x) the total amount of the portion of such Annual Retainer to be paid in the form of cash, minus (y) an amount equal to the product of (1) 25% multiplied by (2) the applicable Cash Dollar Value (as set forth in the Table, without any adjustment pursuant to Section 4(b)) or 100% of any lesser amount elected by such Mid-Year Appointee pursuant to Section 4(d)(i), as applicable, multiplied by (3) the Cash Election Percentage multiplied by (4) the number of quarterly payment dates (i.e., April 1, July 1 and October 1) remaining in such calendar year after the effective date of such Mid-Year Appointee’s appointment; and

(B)    any remaining installments will be paid in substantially equal amounts on April 1 (if such effective date occurs prior to April 1), July 1 (if such effective date occurs prior to July 1) and October 1 (if such effective date occurs prior to October 1) of such calendar year, provided that such Mid-Year Appointee is in service on the applicable payment date.

(f)Terms of Annual Retainers in the Form of RSU Awards.  With respect to any Annual Retainer for a particular calendar year of service, the portion (if any) of such Annual Retainer to be paid in the form of an RSU award will be subject to the following terms.

(i)Such award will be granted under the EIP and will be subject to the terms of the EIP, the applicable award agreement and the Policy.

(ii)Such award will be granted on the first trading day in January of such calendar year; provided, however, that with respect to any such award for a Mid-Year Appointee’s first (partial) calendar year of service, such award will be granted on the effective date of such Mid-Year Appointee’s appointment.

(iii)The number of RSUs subject to such award will be equal to (A) the dollar value of such portion, as determined in accordance with Section 4(c)(ii), divided by (B) the average of the daily volume weighted average prices (“VWAP”) of the Company’s common stock for all of the trading days during the 30 calendar day period ending on (and including) the last 

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trading day immediately prior to the grant date of such award, rounded down to the nearest whole share; provided, however, that the number of RSUs subject to such award, together with any RSUs or shares subject to any other Nonemployee Director Awards (as defined in the EIP) granted to the Nonemployee Director, may not exceed the limit set forth in Section 5.5 of the EIP.

(iv)Such award will vest in substantially equal quarterly installments on the grant date of such award and on April 1, July 1 and October 1 of the calendar year in which such award is granted; provided, however, that:
(A)    with respect to any such award for a Mid-Year Appointee’s first (partial) calendar year of service, such award will vest as follows:

(x)    the first installment will vest on the effective date of such Mid-Year Appointee’s appointment and the number of RSUs in such first installment will be equal to (1) the total number of RSUs with respect to the portion of such Annual Retainer to be paid in the form of an RSU award, minus (2) an amount equal to the product of (I) 25% multiplied by (II) the number of RSUs that would be subject to the full Annual Retainer (as adjusted if any lesser amount is elected by such Mid-Year Appointee pursuant to Section 4(d)(i)), without any adjustment pursuant to Section 4(b), determined as if the award were granted on the effective date of such Mid-Year Appointee’s appointment, multiplied by (III) the RSU Election Percentage multiplied by (IV) the number of quarterly vesting dates (i.e., April 1, July 1 and October 1) remaining in such calendar year after the effective date of such Mid-Year Appointee’s appointment; and

(y)     any remaining installments will vest in substantially equal amounts on April 1 (if such effective date occurs prior to April 1), July 1 (if such effective date occurs prior to July 1) and October 1 (if such effective date occurs prior to October 1) of such calendar year;

(B)    vesting will be fully accelerated upon a Change in Control (as defined in the EIP), as set forth in Section 13.2 of the EIP; and

(C)    vesting will cease upon the termination of the Nonemployee Director’s service as a member of the Board and any RSUs subject to such award that are unvested on the date of such termination will be forfeited by such Nonemployee Director on such date.

(v)Except as provided in Section 4(f)(vi), the issuance of any shares pursuant to such award, to the extent vested, will occur on the date of the Nonemployee Director’s termination of service as a member of the Board, provided that such termination constitutes a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), subject to Section 6 and the terms of the award agreement.

(vi)Each RSU subject to such award (whether vested or unvested) will be credited with any cash dividend, stock dividend or other distribution that is paid with respect to a share of the Company’s common stock.  Any such dividend or other distribution will be credited to such RSU on the same date and in the same form as such dividend or other distribution is paid to the Company’s shareholders.  Any such dividend or other distribution that is credited to such RSU will be issued (A) on the date of such crediting if such RSU is vested on such date or (B) on the date such RSU becomes vested if such RSU is unvested on the date of such crediting, in each case in the same form paid to the Company’s shareholders.  For clarity, any such dividend or other distribution that is credited to an unvested RSU will be unvested and will only vest and be issued if the underlying RSU vests.

5.Expenses

Subject to Section 6, each Nonemployee Director will be eligible for reimbursement from the Company for all reasonable out-of-pocket expenses incurred in connection with his or her duties as a Nonemployee Director.

Each Nonemployee Director may consult the chairperson of the Board on a case-by-case basis with respect to reimbursement for any expenses related to attending any seminars (including the proposed budget for any such seminar).

		
	6.
	Section 409A

The Company intends that any amounts provided under the Policy be exempt from or comply with the requirements of Section 409A of the Code and the regulations and rulings issued thereunder (collectively, “Section 409A”), and the Policy will be so construed.  Without limiting the generality of the foregoing and notwithstanding any other provision of the Policy to the contrary:

(a)If any amount under the Policy (i) constitutes a “deferral of compensation” within the meaning of Section 409A, (ii) is payable pursuant to an individual’s “separation from service” within the meaning of Section 409A, and (iii) such individual 

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is a “specified employee” within the meaning of Section 409A (determined using the identification methodology selected by the Company from time to time, or if none, the default methodology) as of the date of such individual’s separation from service, then except as otherwise permitted by Section 409A, such amount will be paid to such individual on the date that is six months and one day after such individual’s separation from service or, if earlier, the date of such individual’s death following such separation from service.

(b)Each payment made under the Policy will be treated as a separate payment.

(c)To the extent that any taxable reimbursements are provided to any Nonemployee Director, they will be provided in accordance with Section 409A, including, but not limited to, the following provisions: (i) the amount of any such expenses eligible for reimbursement during such individual’s taxable year may not affect the expenses eligible for reimbursement in any other taxable year; (ii) the reimbursement of an eligible expense must be made no later than the last day of such individual’s taxable year that immediately follows the taxable year in which the expense was incurred; and (iii) the right to any reimbursement may not be subject to liquidation or exchange for another benefit.

4Exhibit 10.1

 

OP PARTNERSHIP AGREEMENT PREFERRED UNIT AMENDMENT

 

Twenty-Sixth Amendment to the
 First Amended and Restated Agreement
 of Limited Partnership
 of SL Green Operating Partnership, L.P.

 

This Amendment is made as of May 1, 2019 by SL Green Realty Corp., a Maryland corporation, as managing general partner (the “Company” or the “Managing General Partner”) of SL Green Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”), and as attorney-in-fact for the Persons named on Exhibit A to the First Amended and Restated Agreement of Limited Partnership of SL Green Operating Partnership, L.P., dated as of August 20, 1997, as amended from time to time (the “Partnership Agreement”), for the purpose of amending the Partnership Agreement. Capitalized terms used herein and not defined shall have the meanings given to them in the Partnership Agreement.

 

WHEREAS, pursuant to that certain purchase, sale exchange and contribution agreement (the “Relevant Agreement”), dated as of December 13, 2017, by and among 460 West 34th Street Associates LP, a New York limited partnership (the “Seller”), 460 OP Unit LLC, a Delaware limited liability company (“Unit Seller”), 460 C Seller LLC, a New York limited liability company, Dapesa TIC LLC, a Delaware limited liability company, 460 Rollover Sub LLC, a Delaware limited liability company and 460W34 Owner LLC, a Delaware limited liability company and wholly-owned subsidiary of the Partnership (the “Purchaser”), the Purchaser has agreed to acquire certain real property from Unit Seller in exchange for, among other things, preferred partnership units of the Partnership.

 

WHEREAS, the Partnership owns a direct or indirect interest in the Purchaser.

 

WHEREAS, Section 4.02A of the Partnership Agreement grants the Managing General Partner authority to cause the Partnership to issue interests in the Partnership to Persons other than the Managing General Partner in one or more classes or series, with such designations, preferences and relative, participating optional or other special rights, powers and duties as may be determined by the Managing General Partner in its sole and absolute discretion, subject to applicable Delaware law.

 

WHEREAS, the Managing General Partner has determined that, in connection with the issuance of the preferred partnership units contemplated by the Relevant Agreement, it is necessary and desirable to amend the Partnership Agreement to create and set forth the terms of the preferred partnership units having the designations, rights and preferences set forth herein.

 

WHEREAS, solely to the extent necessary to effect the establishment of the Series V Preferred Units (as defined herein) with the terms and conditions described herein, the following shall be deemed to amend Articles V and VI and Section 8.06 of the Partnership Agreement.

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Managing General Partner hereby amends the Partnership Agreement as follows:

 

 

1.                                      Article I of the Partnership Agreement is hereby amended by adding the following definition:

 

“Series V Preferred Units” means the series of Partnership Units established pursuant to this Twenty-Sixth Amendment to this Partnership Agreement, representing units of Limited Partnership Interest designated as the Series V Preferred Units, with the preferences, rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of repurchase and conversion as described herein.

 

2.                                      In accordance with Section 4.02A of the Partnership Agreement, set forth below are the terms and conditions of the Series V Preferred Units hereby established:

 

A.                                    Designation and Number. A series of Partnership Units, designated as Series V Preferred Units, is hereby established. The maximum number of Series V Preferred Units shall be 40,000.

 

B.                                    Rank. The Series V Preferred Units, with respect to rights to the payment of dividends and the distribution of assets upon the liquidation, dissolution or winding up of the Partnership, rank (a) senior to the Class A Units, the Class B Units (collectively, the “Common Units”) and all Partnership Interests outstanding or issued in the future by the Partnership, the terms of which do not expressly provide that such Partnership Interests rank senior to or on a parity with the Series V Preferred Units, (b) on a parity with the Series F Preferred Units, the Series G Preferred Units, the Series I Preferred Units, the Series K Preferred Units, the Series L Preferred Units, the Series M Preferred Units, the Series O Preferred Units, the Series P Preferred Units, the Series Q Preferred Units, the Series R Preferred Units, the Series S Preferred Units, the Series T Preferred Units, the Series U Preferred Units and all Partnership Interests outstanding or issued in the future by the Partnership, the terms of which expressly provide that such Partnership Interests rank on a parity with the Series V Preferred Units and (c) junior to all Partnership Interests issued in the future by the Partnership, the terms of which expressly provide that such Partnership Interests rank senior to the Series V Preferred Units (provided prior consent of the holders of the Series V Preferred Units has been obtained prior to the issuance of such Partnership Interests).

 

C.                                    Distributions.

 

(i)                                     Pursuant to Section 5.01 of the Partnership Agreement but subject to the rights of holders of any Partnership Interests ranking senior to the Series V Preferred Units as to the payment of distributions, the holders of the then outstanding Series V Preferred Units shall be entitled to receive, when, as and if authorized by the Managing General Partner, out of Available Cash, cumulative quarterly preferential cash distributions in an amount per unit equal to 3.50% per annum of the $25.00 liquidation preference (equivalent to a fixed amount per annum of $0.875 per unit).

 

Distributions on the Series V Preferred Units shall accrue and be fully cumulative from the date of original issuance and shall be payable quarterly when, as and if authorized by the Managing General Partner, in equal amounts in arrears on the fifteenth day of each January, April, July and October or, if not a business day, the next succeeding business day (each, a

 

 

“Series V Preferred Unit Distribution Payment Date”). Any distribution (including the initial distribution) payable on the Series V Preferred Units for any partial distribution period shall be prorated and computed on the basis of a 360-day year consisting of twelve 30-day months. “Distribution Period” shall mean the period from and including the date of original issuance and ending on but excluding the fifteenth day of July, 2019, and each subsequent period from and including such Series V Preferred Unit Distribution Payment Date and ending on but excluding the next following Series V Preferred Unit Distribution Payment Date. For the avoidance of doubt, the first Distribution Period is the period from and including May 1, 2019 and ending on but excluding the fifteenth day of July, 2019 (or, if not a business day, the next succeeding business day).

 

(ii)                                  No distribution on the Series V Preferred Units shall be authorized by the Managing General Partner or declared or paid or set apart for payment by the Partnership at such time as the terms and provisions of any agreement of the Managing General Partner or the Partnership, including any agreement relating to its indebtedness, prohibits such authorization, declaration, payment or setting apart for payment or provides that such authorization, declaration, payment or setting apart for payment would constitute a breach thereof, or a default thereunder, or if such authorization, declaration, payment or setting apart for payment shall be restricted or prohibited by law. No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment or payments on the Series V Preferred Units which may be in arrears.

 

(iii)                               Notwithstanding the foregoing, distributions with respect to the Series V Preferred Units shall accumulate whether or not any of the foregoing restrictions exist, whether or not there is sufficient Available Cash for the payment thereof and whether or not such distributions are authorized. Accumulated but unpaid distributions on Series V Preferred Units shall not bear interest and holders of the Series V Preferred Units shall not be entitled to any distributions in excess of full cumulative distributions. Any distribution payment made on the Series V Preferred Units shall first be credited against the earliest accumulated but unpaid distribution due with respect to such units which remains payable.

 

(iv)                              Except as provided in section 2.C.(v), unless full cumulative distributions have been or contemporaneously are declared and paid or authorized, declared and a sum sufficient for the payment thereof set apart for such payment on the Series V Preferred Units for all past distribution periods and the then current distribution period, no distributions (other than in Partnership Interests ranking senior to the Series V Preferred Units as to the payment of dividends and the distribution of assets upon any liquidation, dissolution or winding up of the Partnership) shall be authorized, declared or paid or set apart for payment nor shall any other distribution be authorized, declared or made upon any other Partnership Interests ranking, as to the payment of distributions or the distribution of assets upon any liquidation, dissolution or winding up of the Partnership, junior to or on a parity with the Series V Preferred Units for any period, nor shall any other Partnership Interests ranking junior to or on a parity with the Series V Preferred Units as to the payment of distributions or the distribution of assets upon any liquidation, dissolution or winding up of the Partnership, be redeemed, purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any such Partnership Interests) by the Partnership (except by conversion into or exchange for Partnership Interests ranking junior to the Series V Preferred Units as to the

 

 

payment of distributions and the distribution of assets upon any liquidation, dissolution or winding up of the affairs of the Partnership).

 

(v)                                 When distributions are not paid in full (or a sum sufficient for such full payment is not so set apart) upon the Series V Preferred Units and any other Partnership Interests ranking on a parity as to the payment of distributions with the Series V Preferred Units, all distributions authorized and declared upon the Series V Preferred Units and any other Partnership Interests ranking on a parity as to the payment of distributions with the Series V Preferred Units shall be declared pro rata so that the amount of distributions authorized and declared per Series V Preferred Unit and such other Partnership Interests shall in all cases bear to each other the same ratio that accumulated distributions per each Series V Preferred Unit and such other Partnership Interests (which shall not include any accumulation in respect of unpaid distributions for prior distribution periods if such other Partnership Interests do not have a cumulative distribution) bear to each other.

 

(vi)                              Holders of Series V Preferred Units shall not be entitled to any distribution, whether payable in cash, property or Partnership Interests, in excess of full cumulative distributions on the Series V Preferred Units as described above. Accrued but unpaid distributions on the Series V Preferred Units will accumulate as of the Series V Preferred Units Distribution Payment Date on which they first become payable.

 

D.                                    Allocations. Allocations of the Partnership’s items of income, gain, loss and deduction shall be allocated among holders of Series V Preferred Units in accordance with Article VI of the Partnership Agreement.

 

E.                                     Liquidation Preference.

 

(i)                                     In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Partnership, the holders of the Series V Preferred Units shall be entitled to receive out of the assets of the Partnership available for distribution to the Partners pursuant to Section 13.02.A of the Partnership Agreement a liquidation preference of $25.00 per Series V Preferred Unit, plus an amount equal to any accumulated and unpaid distributions (whether or not earned or authorized) to the date of payment (the “Series V Liquidation Value”), before any distribution of assets is made to holders of any other Partnership Interests that rank junior to the Series V Preferred Units as to the distribution of assets upon the liquidation, dissolution or winding up of the Partnership, but subject to the preferential rights of the holders of Partnership Interests ranking senior to the Series V Preferred Units as to the distribution of assets upon the liquidation, dissolution or winding up of the Partnership.

 

(ii)                                  If upon any such voluntary or involuntary liquidation, dissolution or winding up of the Partnership, the assets of the Partnership legally available for distribution to its Partners are insufficient to make such full payment to the holders of the Series V Preferred Units, and the corresponding amounts payable on all other Partnership Interests ranking on a parity with the Series V Preferred Units as to the distribution of assets upon the liquidation, dissolution or winding up of the Partnership, then the holders of the Series V Preferred Units, and all other holders of such Partnership Interests on a parity with the Series V Preferred Units shall share ratably in any such distribution of assets in proportion to the full liquidating distributions

 

 

(including, if applicable, accumulated and unpaid distributions) to which they would otherwise be respectively entitled.

 

(iii)                               After payment of the full amount of the Series V Liquidation Value, the holders of the Series V Preferred Units, shall have no right or claim to any of the remaining assets of the Partnership.

 

(iv)                              None of a consolidation or merger of the Partnership with or into another entity, a merger of another entity with or into the Partnership, a statutory unit exchange by the Partnership or a sale, lease or conveyance of all or substantially all of the Partnership’s property or business shall be considered a liquidation, dissolution or winding up of the affairs of the Partnership.

 

F.                                      Repurchase at the Option of the Holder.

 

(i)                                     Notwithstanding any other provision of the Partnership Agreement to the contrary, the holders of the Series V Preferred Units shall have the right to require the Partnership to repurchase for cash all or a portion of the Series V Preferred Units at any time after the date hereof (the “Cash Repurchase Right”), subject to clause (ii) of this Section 2.F. The repurchase price per Series V Preferred Unit upon such repurchase shall be paid by the Partnership in cash and shall be in an amount equal to the Series V Liquidation Value of such Series V Preferred Units to the date of such repurchase (the “Repurchase Consideration”). From and after the applicable repurchase date, the Series V Preferred Units so repurchased shall no longer be outstanding and all rights hereunder, to distributions or otherwise, with respect to such Series V Preferred Units shall cease.

 

(ii)                                  Each holder of Series V Preferred Units who desires to require the Partnership to repurchase all or a portion of the Series V Preferred Units shall provide notice to the Partnership (with a copy to the Managing General Partner) in the form of the Notice of Repurchase Demand attached as Exhibit A hereto (a “Repurchase Demand Notice”) via facsimile, hand delivery or other mail or messenger service. The date upon which the Partnership initially receives a Repurchase Demand Notice shall be a “Notice Date.” The Partnership shall pay to such holder of Series V Preferred Units the Repurchase Consideration within ten (10) Business Days after the Notice Date. A holder of Series V Preferred Units may not request repurchase of less than 10,000 Series V Preferred Units or, if such holder of Series V Preferred Units holds less than 10,000 Series V Preferred Units, of less than all of the Series V Preferred Units held by such holder of Series V Preferred Units.

 

(iii)                               From and after the applicable repurchase date, the Series V Preferred Units so repurchased shall no longer be outstanding and all rights hereunder, to distributions or otherwise, with respect to such Series V Preferred Units shall cease.

 

G.                                    Voting Rights. Except as required by applicable law, the Series V Preferred Units shall have no voting rights, except that no amendment of the Partnership Agreement shall be made that materially adversely affects the rights of the holders of Series V Preferred Units without the consent of a majority of such holders (unless all holders of Partnership Interests are materially adversely affected to the same degree). For the avoidance of doubt, any amendment to

 

 

create, establish or amend the rights and designations of a series of Partnership Units shall not require the consent of the holders of the Series V Preferred Units.

 

H.                                   Conversion.                               The Series V Preferred Units are not convertible into or exchangeable for any other property or securities of the Partnership.

 

I.                                        Transfer. In addition to the restrictions set forth in Section 11.03 of the Partnership Agreement, except as set forth in section 2.F above and the permitted transfers pursuant to Section 2(h) and 2(i) of the OP Unit Recipient Agreement by and among the Company, the Partnership and the 460 OP Unit LLC, dated as of even date herewith, a holder of the Series V Preferred Units may not Transfer any of the Series V Preferred Units without the consent of the Managing General Partner, which consent may be withheld in the Managing General Partner’s sole discretion. Any attempt to effect a Transfer of the Series V Preferred Units without the Managing General Partner’s consent shall be void ab initio.

 

For purposes of this Section 2.1, “Transfer” shall have the meaning of “transfer” as defined in 11.1(A) in the Partnership Agreement. The term “Transfer” as used in this section 2.1 or Article XI of the Partnership Agreement shall not include any repurchase of the Series V Preferred Units by the Partnership.

 

J.                                        Restrictions on Ownership. No person that is not a legal resident of the United States of America shall be permitted to beneficially own, directly or indirectly for U.S. federal income tax purposes, any Series V Preferred Units. The acquisition of any Series V Preferred Units by any person or entity that would result in a violation of the preceding sentence, whether or not in accordance with Section 2.1 above, shall be void al, initio.

 

3.                                      Except as modified herein, all terms and conditions of the Partnership Agreement shall remain in full force and effect, which terms and conditions the Managing General Partner hereby ratifies and confirms.

 

4.                                      This Amendment shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to conflicts of law.

 

5.                                      If any provision of this Amendment is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first set forth above.

 

	
 
    	
SL   GREEN REALTY CORP., a Maryland corporation,
    
	
 
    	
as Managing General Partner   of SL Green Operating Partnership, L.P.
    
	
 
    	
and   on behalf of existing Limited Partners
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew Levine
    
	
 
    	
 
    	
Name:
    	
Andrew Levine
    
	
 
    	
 
    	
Title:
    	
Executive Vice President,   Chief Legal Officer, General Counsel and Secretary
    

 

 

Exhibit A to OP Partnership Agreement Unit Amendment

 

Notice of Repurchase Demand

 

The undersigned holder of Series V Preferred Units hereby irrevocably requests SL Green Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”), to repurchase the number of Series V Preferred Units stated herein in accordance with the terms of the First Amended and Restated Agreement of Limited Partnership of SL Green Operating Partnership, L.P., as amended from time to time in accordance with its terms, and the Cash Repurchase Right referred to therein; and the undersigned irrevocably (i) surrenders such Series V Preferred Units and all right, title and interest therein and (ii) directs that the Repurchase Consideration deliverable in accordance with this Notice be delivered in the name(s) and at the address(es) specified below.

 

The undersigned hereby represents, warrants, and certifies that the undersigned (a) has good and unencumbered title to the Series V Preferred Units that are the subject of this Notice, free and clear of the rights or interests of any other person or entity, (b) has the full right, power, and authority to demand repurchase and surrender the Series V Preferred Units that are the subject of this Notice and (c) has obtained the consent or approval of all persons or entities, if any, having the right to consent or approve such repurchase and surrender.

 

	
Number   of Series V Preferred Units tendered:
    	
 
    
	
 
    	
 
    
	
Dated:
    	
 
    	
 
    
	
 
    	
 
    
	
Redemption Date:
    	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
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(Signature)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
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