Document:

ex10-14.htm

Exhibit 10.14

 

AMENDMENT NUMBER TWO TO SECOND 

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

This AMENDMENT NUMBER TWO TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of August 24, 2016 is entered into by and between JMP HOLDING LLC, formerly known as JMP Group LLC, a Delaware limited liability company (“Borrower”), and CITY NATIONAL BANK, a national banking association (“Lender”), and in light of the following:

 

W I T N E S S E T H

 

WHEREAS, Borrower and Lender are party to that certain Second Amended and Restated Credit Agreement, dated as of April 30, 2014 (as amended, restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”); 

 

WHEREAS, the Borrower has requested that Agent and Lender make certain amendments to the Credit Agreement; and

 

WHEREAS, upon the terms and conditions set forth herein, Lender is willing to accommodate the Borrower’s requests.

 

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

 

1.         DEFINITIONS Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement, as amended hereby.

 

	
2.
	
AMENDMENTS TO CREDIT AGREEMENT. 

 

	
 
	
a.
	
Section 1.1 of the Credit Agreement is hereby amended and modified by deleting the definition of “Interest Coverage Ratio” in its entirety.

 

	
 
	
b.
	
Section 2.19 of the Credit Agreement is hereby amended and modified by restating Section 2.19(b)(iv) in its entirety as follows:

 

“(iv)          Borrower has delivered to Agent updated pro forma calculations (after giving effect to the applicable Increase) for Borrower and its Subsidiaries evidencing that: (i) the Fixed Charge Coverage Ratio for JMPG and its Subsidiaries, for the four consecutive fiscal quarter period ending as of the last day of the fiscal quarter most recently ended prior to the Increase Date as to which financial statements were required to be delivered pursuant to this Agreement, is greater than the ratio required by Section 6.14 for such period by at least 10% of such required ratio, and (ii) the Liquidity and Net Worth of for Loan Parties and their Subsidiaries, as of the Increase Date, is each greater than the respective amount required by Section 6.14 as of such date by at least 10% of such required amount.”

 

 

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c.
	
Section 6.14 of the Credit Agreement is hereby amended and modified by amending and restating Section 6.14(d) in its entirety as follows:

 

“(d)      Minimum Interest Coverage Ratio. Fail to maintain an Interest Coverage Ratio for JMPG or Uptimate Parent, if applicable, and their respective Subsidiaries, measured as of the last day of each fiscal quarter of JMPG or Ultimate Parent ending on or before March 31, 2016, if applicable during such period, for each twelve month period ending on any such date, of at least 2.00:1.00.”

 

	
 
	
d.
	
Exhibit C-1 of the Credit Agreement is hereby amended and restated in its entirety as set forth on Exhibit B hereto.

 

3.         REPRESENTATIONS AND WARRANTIES Borrower hereby represents and warrants to Lender as follows:

 

a.     Borrower has the requisite power and authority to execute and deliver this Amendment and the authority to perform its obligations hereunder and under the Loan Documents to which it is a party. The execution, delivery, and performance of this Amendment and the performance by Borrower of each Loan Document to which it is a party (i) have been duly approved by all necessary action and no other proceedings are necessary to consummate such transactions; and (ii) are not in contravention of (A) any law, rule, or regulation, or any order, judgment, decree, writ, injunction, or award of any arbitrator, court or governmental authority binding on it, (B) the terms of its organizational documents, or (C) any provision of any contract or undertaking to which it is a party or by which any of its properties may be bound or affected;

 

b.     This Amendment has been duly executed and delivered by Borrower. This Amendment will, upon its effectiveness in accordance with the terms hereof, and each Loan Document to which Borrower is a party is the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, and is in full force and effect except as such validity and enforceability is limited by the laws of insolvency and bankruptcy, laws affecting creditors’ rights and principles of equity applicable hereto;

 

c.     No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated herein has been issued and remains in force by any Governmental Authority against Borrower; 

 

d.     Borrower does not have any actual or potential claim or cause of action against Lender for any actions or events occurring on or before the date hereof, and Borrower hereby waives and releases any right to assert same;

 

e.     No Default or Event of Default has occurred and is continuing on the date hereof or as of the date of the effectiveness of this Amendment after giving effect to this Amendment; and

 

f.     The representations and warranties in the Credit Agreement and the other Loan Documents are true and correct in all material respects (except to the extent qualified by materiality, then such representations and warranties are true and correct in all respects) on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date).

 

 

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4.         CONDITIONS PRECEDENT TO THIS AMENDMENT The satisfaction of each of the following shall constitute conditions precedent to the effectiveness of this Amendment and each and every provision hereof:         

 

a.     Lender shall have received this Amendment, duly executed by Borrower, and the same shall be in full force and effect;

 

b.     Lender shall have received a reaffirmation and consent substantially in the form attached hereto as Exhibit A, duly executed and delivered by each Subsidiary of Borrower that is listed on the signature pages thereof; 

 

c.     The representations and warranties in the Credit Agreement and the other Loan Documents shall be true and correct in all respects on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date);

 

d.     No Default or Event of Default shall have occurred and be continuing as of the date of the effectiveness of this Amendment after giving effect to this Amendment; and

 

e.     No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated herein shall have been issued and remain in force by any Governmental Authority against Borrower.

 

f.     All other documents and legal matters in connection with the transactions contemplated by this Amendment shall have been delivered, executed, or recorded and shall be in form and substance reasonably satisfactory to Lender.

 

5.     Agreements.   This Amendment has been entered into without force or duress, of the free will of Borrower, and the decision of Borrower to enter into this Amendment is a fully informed decision and Borrower is aware of all legal and other ramifications of each decision. It has read and understands this Amendment, has consulted with and been represented by independent legal counsel of its own choosing in negotiations for and the preparation of this Amendment, has read this Amendment in full and final form, and has been advised by its counsel of its rights and obligations hereunder and thereunder. 

 

6.     Payment of Costs and Fees. Borrower shall reimburse Lender on demand for all of its actual out-of-pocket costs, expenses, fees and charges in connection with the preparation, negotiation, execution and delivery of this Amendment and any documents and instruments relating hereto (which costs may include the reasonable fees and expenses of any attorneys retained by Lender).

 

7.     CONSTRUCTION. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF CALIFORNIA.

 

 

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8.     ENTIRE AMENDMENT; EFFECT OF AMENDMENT. This Amendment, and terms and provisions hereof, the Credit Agreement and the other Loan Documents constitute the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersedes any and all prior or contemporaneous amendments or understandings with respect to the subject matter hereof, whether express or implied, oral or written. Except for the amendments to the Credit Agreement expressly set forth in Section 2, hereof, the Credit Agreement and other Loan Documents shall remain unchanged and in full force and effect. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of or as an amendment of any right, power, or remedy of the Lenders as in effect prior to the date hereof. The amendments set forth herein are limited to the specifics hereof, shall not apply with respect to any facts or occurrences (or any Subsidiary) other than those on which the same are based, shall not excuse future non-compliance with the Credit Agreement, and shall not operate as a consent to any further or other matter, under the Loan Documents. To the extent any terms or provisions of this Amendment conflict with those of the Credit Agreement or other Loan Documents, the terms and provisions of this Amendment shall control. This Amendment is a Loan Document.

 

9.     COUNTERPARTS; TELEFACSIMILE EXECUTION. This Amendment may be executed in any number of counterparts, all of which when taken together shall constitute one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile or electronic mail also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

 

10.     Effect on Loan Documents.

 

a.     The Credit Agreement, as amended hereby, and each of the other Loan Documents shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects. Except for the amendments to the Credit Agreement expressly set forth herein, the Credit Agreement and other Loan Documents shall remain unchanged and in full force and effect. The execution, delivery and performance of this Amendment shall not operate, except as expressly set forth herein, as a modification or waiver of any right, power, or remedy of Lender under the Credit Agreement or any other Loan Document. The amendments set forth herein are limited to the specifics hereof, and, except as expressly set forth herein, shall neither excuse any future non-compliance with the Credit Agreement, nor operate as a waiver of any Unmatured Event of Default or Event of Default. 

 

b.     Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “therein”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.

 

 

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c.     To the extent any terms or provisions of this Amendment conflict with those of the Credit Agreement or other Loan Documents, the terms and provisions of this Amendment shall control. To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.

 

d.     This Amendment is a Loan Document. 

 

e.     Unless the context of this Amendment clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”. 

 

11.     Reaffirmation of Obligations. The Borrower hereby restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement and the other Loan Documents to which it is a party effective as of the date hereof and as amended hereby. The Borrower hereby further ratifies and reaffirms the validity and enforceability of all of the liens and security interests in the Collateral heretofore granted, pursuant to and in connection with any Loan Document to Lender as collateral security for the obligations under the Loan Documents in accordance with their respective terms, and acknowledges that all of such liens and security interests, and all Collateral heretofore pledged as security for such obligations, continues to be and remain collateral for such obligations from and after the date hereof, in each case except as otherwise expressly provided in the Loan Documents. 

 

12.     Severability. In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

 

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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered as of the date first written above.

 

 

	
BORROWER:
	
JMP HOLDING LLC, formerly known as 

JMP Group LLC, 

a Delaware limited liability company
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
     /s/ RAYMOND S. JACKSON
	
 

	
 
	
Name:
	
             Raymond S. Jackson 
	
 

	
 
	
Title:
	
           Chief Financial Officer
	
 

 

 

[SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

 

 

 

	
AGENT AND LENDER:
	
CITY NATIONAL BANK, 
a national banking corporation, 
as Agent and as a Lender 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
          /s/ ERIC LO
	
 

	
 
	
Name:
	
               Eric Lo
	
 

	
 
	
Title:
	
          Vice President
	
 

 

 

[SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

 

 

 

EXHIBIT A

 

REAFFIRMATION AND CONSENT

 

All capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to them in (a) that certain Credit Agreement entered into between JMP HOLDING LLC, formerly known as JMP Group LLC, a Delaware limited liability company (“Borrower”), and CITY NATIONAL BANK, a national banking association (“Lender”), dated as of August 3, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), and (b) that certain Amendment Number Two to Second Amended and Restated Credit Agreement, dated as of August 24, 2016 (the “Amendment”) by and among Borrower and Lender. The undersigned hereby (a) represents and warrants to Lender that the execution, delivery, and performance of this Reaffirmation and Consent are within its powers, have been duly authorized by all necessary action, and are not in contravention of any law, rule, or regulation, or any order, judgment, decree, writ, injunction, or award of any arbitrator, court, or governmental authority, or of the terms of its charter or bylaws, or of any contract or undertaking to which it is a party or by which any of its properties may be bound or affected; (b) consents to the transactions contemplated by the Amendment and by each amendment to any Loan Document executed on or before the date hereof; (c) acknowledges and reaffirms its obligations owing to Lender under any Loan Documents to which it is a party; and (d) agrees that each of the Loan Documents to which it is a party is and shall remain in full force and effect. Although each of the undersigned has been informed of the matters set forth herein and has acknowledged and agreed to same, each understands that Lender has no obligation to inform it of such matters in the future or to seek its acknowledgment or agreement to future amendments, and nothing herein shall create such a duty. Delivery of an executed counterpart of this Reaffirmation and Consent by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Reaffirmation and Consent. Any party delivering an executed counterpart of this Reaffirmation and Consent by telefacsimile or electronic mail also shall deliver an original executed counterpart of this Reaffirmation and Consent but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Reaffirmation and Consent. This Reaffirmation and Consent shall be governed by the laws of the State of California.

 

[Signature page to follow.]

 

 

 

 

 

IN WITNESS WHEREOF, the undersigned have each caused this Reaffirmation and Consent to be executed as of the date of the Amendment.

 

 

	
 
	
HARVEST CAPITAL STRATEGIES LLC,

a Delaware limited liability company
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
    /s/ RAYMOND S. JACKSON
	
 

	
 
	
Title:
	
 Chief Financial Officer
	
 

	
 
	
 
	
 
	
 

 

	
 
	
JMP ASSET MANAGEMENT LLC,

a Delaware limited liability company
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
     /s/ RAYMOND S. JACKSON
	
 

	
 
	
Title:
	
 Chief Financial Officer
	
 

	
 
	
 
	
 
	
 

	 	 	 
	
 
	
JMP ASSET MANAGEMENT INC.,

a Delaware limited liability company
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
     /s/ RAYMOND S. JACKSON
	
 

	
 
	
Title: 
	
 Chief Financial Officer
	
 

	
 
	
 
	
 
	
 

 

	
 
	
JMP CREDIT ADVISORS LLC,

a Delaware limited liability company
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
    /s/ CRAIG KITCHIN
	
 

	
 
	
Title: 
	
 Chief Financial Officer
	
 

  

 

[Signature Page To REAFFIRMATION AND CONSENT TO Amendment Number TWO To 

second amended and restated Credit Agreement]

 

 

 

 

 

	
 
	
JMP INVESTMENT HOLDINGS LLC,

a Delaware limited liability company
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
    /s/ RAYMOND S. JACKSON
	
 

	
 
	
Title: 
	
 Chief Financial Officer
	
 

 

 

	
 
	
JMP REALTY TRUST INC.,

a Delaware limited liability company
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
    /s/ RAYMOND S. JACKSON
	
 

	
 
	
Title: 
	
 Chief Financial Officer
	
 

	
 
	
 
	
 
	
 

 

[Signature Page To REAFFIRMATION AND CONSENT TO Amendment Number TWO To 

second amended and restated Credit Agreement]

 

 

 

 

 

EXHIBIT B

 

FORM OF COMPLIANCE CERTIFICATE

 

 

[on Borrower’s letterhead]

 

 

	
To: 
	
 
	
City National Bank, as Agent

	
 
	
 
	
555 South Flower Street, 24th Floor

	
 
	
 
	
Los Angeles, California 90071

	 	 	
Attn: Eric Lo

	 	 	 
	 	 	Re:     Compliance Certificate dated                             

 

Ladies and Gentlemen:

 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of April 30, 2014 (the “Credit Agreement”) by and among JMP HOLDING LLC, a Delaware limited liability company (“Borrower”), the lenders identified on the signature pages thereof (such lenders, together with their respective successors and assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), and CITY NATIONAL BANK, a national banking association, as administrative agent for the Lenders and the Bank Product Providers (in such capacity, together with its successors and assigns, if any, in such capacity, “Agent”) and as lead arranger. Capitalized terms used in this Compliance Certificate have the meanings set forth in the Credit Agreement unless specifically defined herein.

 

The undersigned officer of Borrower hereby certifies that:

 

1.     The financial report of JMPG and its Subsidiaries furnished in Schedule 1 attached hereto (the “Financial Statements”), has been prepared in accordance with GAAP (except for the lack of footnotes and being subject to year-end audit adjustments) and fairly presents in all material respects the financial condition of JMPG and its Subsidiaries.

 

2.     Such officer has reviewed the terms of the Credit Agreement and has made, or caused to be made under his/her supervision, a review of the activities of Borrower and its Subsidiaries during the accounting period covered by the Financial Statements, with a view to determining whether Borrower and such Subsidiaries have fulfilled all of their respective obligations under the Loan Documents.

 

3.     Such review has not disclosed the existence on and as of the date hereof, and the undersigned does not have knowledge of the existence as of the date hereof, of any event or condition that constitutes an Unmatured Event of Default or Event of Default, except for such conditions or events listed on Schedule 2 attached hereto, specifying the nature and period of existence thereof and the actions Borrower has taken, is taking, or proposes to take with respect thereto.

 

4.     Without limiting the generality of the foregoing, JMPG and its Subsidiaries are in compliance with the covenants contained in Section 6.14 of the Credit Agreement as demonstrated on Schedule 3 hereof as of the end of the period specified in Schedule 3 hereof and as supported by reasonably detailed calculations set forth on Schedule 3A hereof. 

 

[Signature Page To REAFFIRMATION AND CONSENT TO Amendment Number TWO To 

second amended and restated Credit Agreement]

 

 

 

 

 

 

5.     Attached hereto on Schedule 4 is a description of all material Contingent Obligations of Borrower and its Subsidiaries that could reasonably be expected to result in payments (individually or in the aggregate) of greater than $5,000,000.

 

6.     Except as set forth on Schedule 5 hereto, Borrower has negotiated all transactions described in Section 6.8, other than transactions in de minimis amounts, in good faith and on an arm’s length basis.

 

7.     Attached hereto on Schedule 6 is a list of all Subsidiaries formed or acquired by Borrower or Guarantor that Borrower elects to designate as an Excluded Subsidiary. 

 

[Signature page follows.]

 

 

[Signature Page To REAFFIRMATION AND CONSENT TO Amendment Number TWO To 

second amended and restated Credit Agreement]

 

 

 

 

 

 

IN WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this _____ day of _____________, _____.

 

 

	
 
	
JMP HOLDING LLC, a Delaware limited liability 

company, as Borrower

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
By: 
	
 

	
 
	
Name:
	
 

	
 
	
Title:
	
 

 

 

 

 

 

SCHEDULE 1

 

Financial Information

 

 

 

 

 

SCHEDULE 2

 

Unmatured Event of Default or Event of Default

 

 

 

 

 

SCHEDULE 3

 

Financial Covenants

 

	
 
	
1.
	Fixed Charge Coverage Ratio. JMPG’s and its Subsidiaries’ Fixed Charge Coverage Ratio, measured on a Fiscal quarter-end basis, for the twelve month period ending _________ __, ____ is _____:1:00, which Fixed Charge Coverage Ratio [is/is not] greater than or equal to the Fixed Charge Coverage Ratio set forth in Section 6.14 of the Credit Agreement.      

 

	 	
2.
	
Minimum Net Worth. JMPG’s and its Subsidiaries’ Net Worth for the fiscal quarter ending _________ __, ____ is $______________, which amount [is/is not] greater than or equal to the amount set forth in Section 6.14(c) of the Credit Agreement.

 

	 	
3.
	
Minimum Liquidity. Loan Parties’ Liquidity on the last day of the fiscal quarter ending __________ __, ____ is $_____________, which amount [is/is not] greater than or equal to the amount set forth in Section 6.14(e) of the Credit Agreement.

 

 

 

 

 

SCHEDULE 3A

 

 

 

 

 

 

SCHEDULE 4

 

Contingent Obligations

 

 

[Signature Page To REAFFIRMATION AND CONSENT TO Amendment Number TWO To 

second amended and restated Credit Agreement]

 

 

 

 

 

SCHEDULE 5

 

 

 

 

 

SCHEDULE 6

 

	
New Subsidiary

	
[Name]

	  
	  
	  

 

 

 

 

 

 

 

 

 

Agent hereby [accepts/objects to] Borrower’s election to designate [Insert name of Subsidiary] as an Excluded Subsidiary. 

 

 

	
Date: ____________
	
CITY NATIONAL BANK,

a national banking association, as Agent
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
 
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:Blueprint

 

TRADUCCIÓN PÚBLICA 

SWORN TRANSLATION 

 

 

EIGHTH AGREEMENT FOR THE IMPLEMENTATION OF

AMENDMENTS

TO THE CORPORATE SERVICES MASTER AGREEMENT

 

[Except
for the signature page, all the pages that make up the source
document in Spanish carry six illegible initials.]

 

Agreement
made in the Autonomous City of Buenos Aires on the 12th day of November of
2015 by and between:

 

(i)
CRESUD S.A.C.I.F. y A.,
domiciled at Moreno 877, Piso 23 in the Autonomous City of Buenos
Aires, represented hereat by the undersigned attorneys-in-fact
(hereinafter “CRESUD”) as party of the one
part;

 

(ii)
IRSA Propiedades Comerciales
S.A., domiciled at Moreno 877, Piso 22 in the Autonomous
City of Buenos Aires, represented hereat by the undersigned
attorneys-in-fact (hereinafter “IRSAPC”), as party of
the second part, and

 

(iii)
IRSA Inversiones y Representaciones
Sociedad Anónima, domiciled at Bolívar 108, Piso
1o in the Autonomous City of Buenos Aires and having
established domicile for purposes hereof at Moreno 877, Piso 22 in
the Autonomous City of Buenos Aires, represented hereat by the
undersigned attorneys-in-fact, as party of the third part
(hereinafter “IRSA” and collectively with CRESUD and
IRSAPC designated as “THE PARTIES”).

 

WHEREAS: 

 

(i) On
June 30, 2004 THE PARTIES executed a Master Agreement for the
Exchange of Corporate Services (hereinafter “the Master
Agreement”);

 

(ii) On
August 23, 2007 THE PARTIES executed the first Agreement for the
Implementation of Amendments to the Corporate Services Master
Agreement (hereinafter the “First Agreement”), whereby
certain amendments were introduced to the Areas of Exchange of
Corporate Services and the Cost Distribution Bases, and new
Individually Responsible Persons were appointed;

 

(iii)
On August 14, 2008 and November 27, 2009, THE PARTIES executed the
Second Agreement for the Implementation of Amendments to the
Corporate Services Master Agreement (hereinafter the "Second
Agreement”) and the Third Agreement for the Implementation of
Amendments to the Corporate Services Master Agreement (hereinafter
the “Third Agreement”), respectively, whereby new
amendments were introduced to the Areas of Exchange of Corporate
Services and the Cost Distribution Bases;

 

(iv) On
March 12, 2010, THE PARTIES executed an Addendum to the Master
Agreement for the Exchange of Corporate Services (hereinafter the
“Addendum”) whereby THE PARTIES agree to unify in
CRESUD the services of the Areas of Exchange of Corporate Services,
to the effect of which the employment agreements of most of the
employees of such areas were transferred and the procedure to
allocate the costs of potential labor expenses arising from
retirement of employees was established;

 

 

1

 

 

 

(v) On
July 11, 2011, THE PARTIES executed the Fourth Agreement for the
Implementation of Amendments to the Corporate Services Master
Agreement (hereinafter the "Fourth Agreement”), on October
15, 2012, THE PARTIES executed the Fifth Agreement for the
Implementation of Amendments to the Corporate Services Master
Agreement (hereinafter the "Fifth Agreement"), on November 12,
2013, THE PARTIES executed the Sixth Agreement for the
Implementation of Amendments to the Corporate Services Master
Agreement (hereinafter the “Sixth Agreement”) and on
February 18, 2015, THE PARTIES executed the Seventh Agreement for
the Implementation of Amendments to the Corporate Services Master
Agreement (hereinafter the “Seventh Agreement” and
together with the First Agreement, the Second Agreement, the Third
Agreement, the Fourth Agreement, the Fifth Agreement and the Sixth
Agreement, the “Agreements”), whereby new amendments
were introduced to the Areas of Exchange of Corporate Services and
the Cost Distribution Bases;

 

(vi)
Pursuant to the structuring process of a new organizational model
of division of areas by business, an agreement was reached to
transfer to IRSA and/or IRSAPC the employment agreements of those
employees who render services related to the Technical,
Infrastructure and Services, Purchases, Architecture and Design and
Works Development Area, Real Estate Business Management, Real
Estate Business Human Resources, Safety and Real Estate Areas, all
of them related to the real estate business. On February 24, 2014
THE PARTIES executed a Second Addendum to the Master Agreement for
the Exchange of Corporate Services (hereinafter the “Second
Addendum”) whereby the mechanisms to be used for the
allocation of the costs of potential labor expenses that such
process would involve were established.

 

(vii)
THE PARTIES have implemented the Master Agreement based on an
Implementation Manual updated by Deloitte & Co. S.R.L.,
(hereinafter “Deloitte”) on February 11,
2008;

 

(viii)
In accordance with the recommendations made by Deloitte on its
semi-annual reports, new operational changes have been implemented
in the Areas of Exchange of Corporate Services and the Cost
Distribution Bases starting on June 11, 2015, which THE PARTIES
wish to acknowledge in writing;

 

(ix)
THE PARTIES have disclosed the content of the EIGHTH AGREEMENT FOR THE IMPLEMENTATION OF
AMENDMENTS TO THE CORPORATE SERVICES MASTER AGREEMENT
(hereinafter the “Eighth Agreement”) to their
respective Audit Committees; and

 

(x) The
Board of Directors of IRSAPC, CRESUD and IRSA approved the Eighth
Agreement at the meeting held on November 12, 2015;

 

NOW IN CONSIDERATION OF THE FOREGOING, THE PARTIES hereby
agree to execute this Eighth Agreement subject to the following
terms and conditions:

 

 

2

 

 

 

ONE: THE PARTIES ratify that the Areas (as defined in the
Master Agreement) and the calculation method applicable to the
Exchange of Operational Services (also as defined in the Master
Agreement) have been changed as from the dates listed below,
amending therefore Exhibits I and II, as amended by the Agreements,
to the Master Agreement as per the following detail:

 

(i)
Starting in July 2014, in relation to the Finance Area, a decision
was made (a) to exclude the Planning Department for it to be
incorporated into the Areas of Exchanges; and (b) to modify its
distribution method, thereby introducing changes into Exhibit I and
Exhibit II in a manner such that as from July 2014 the components
of said method shall be as detailed in new Exhibit I and Exhibit
II.

 

(ii)
Starting in July 2014, a decision was made to exclude the Shared
Services Center Department from the Administration and Control Area
and for the Shared Services Center Department to become covered by
the Areas of Exchange. In addition, as from July 2014 a decision
was made to change the distribution method of the Master Data
Sector.

 

In
January 2015 and in connection with the Shared Services Center
Area, there were two additions, namely: (a) the Back Office sector
was added and (b) the General Services sector was
added.

 

As a
result of the decision adopted in this clause, it was further
decided to modify Exhibit I and Exhibit II such that as from
January 2015 they shall be made up as detailed in the new Exhibit I
and Exhibit II.

 

(iii)
Starting in July 2014 and in connection with the Administration and
Control Area, a decision was made to (a) modify the distribution
method applicable to the Accounting and Reporting Department; (b)
modify the distribution method applicable to the Global Budget and
Management Control Department; and (c) modify the distribution
method applicable to the SOX Regulation Department thereby
modifying Exhibit II which as from that date shall be made up as
detailed in the new Exhibit II.

 

(iv)
Starting in July 2014, a decision was made to exclude the
Governmental Affairs Department from the Real Estate Area, to
incorporate the Governmental Affairs Department into the Areas of
Exchange and to modify its distribution method. Therefore, Exhibit
I and Exhibit II were amended accordingly so that as from such
date, they shall be made up as detailed in the new Exhibit I and
Exhibit II.

 

(v)
Starting in July 2014, a decision was made to incorporate the Real
Estate Accounting and Reporting Department into the Real Estate
Management Area. Therefore, Exhibit I and Exhibit II were amended
accordingly so that as from such date, they shall be made up as
detailed in the new Exhibit I and Exhibit II.

 

(vi)
Starting in July 2014 and in connection with the Human Resources
Area, a decision was made to (a) change the name of the department
known as “Project Management Department”, which shall
from now bear the following designation “Human Resources
Management Department”; (b) change the name of the department
known as “Safety and Hygiene Department”, which shall
from now on bear the following designation “Administration
and Labor Relations Department” and; (c) change the name of
the department known as Project Quality Department, which shall
from now on bear the following designation “Culture
Management Department”. Therefore, Exhibit II was amended
accordingly so that as from such date, it shall be made up as
detailed in the new Exhibit II.

 

 

3

 

 

 

In
consideration of the foregoing, the PARTIES hereby put on record
that, subject to the clarifications detailed in the preceding
clauses and for purposes of updating Exhibits I and II, they shall
read as hereto attached for the periods and as from the dates
indicated.

 

TWO: THE PARTIES agree that the costs related to the
employees acting in the new Areas included pursuant to this Eighth
Agreement, shall be governed in accordance with the terms and
conditions set forth in the Master Agreement, the Addendum and the
Second Addendum.

 

THREE: THE PARTIES represent that all the sections of the
Master Agreement, the Agreements, the Addendum and the Second
Addendum that have not been amended pursuant to this Eighth
Agreement continue to be fully in force.

 

In
witness whereof, this Agreement is executed in three (3) copies of
the same tenor and to a single effect in the place and on the date
first written.

 

 

CRESUD S.A.C.I.F.y A. 

 

[illegible
signature] [Seal:] Carlos Mariano Garriga - Attorney-in-fact /
[illegible signature] [Seal:] CRESUD S.A.C.I.F. y A. Agronomic
Engineer Alejandro G. Casaretto - Attorney-in-fact

 

IRSA Inversiones y Representaciones Sociedad
Anónima 

 

[illegible
signature] [Seal:] José Luis Rinaldini –
Attorney-in-fact / [illegible signature] Gastón
Lernoud

 

IRSA Propiedades Comerciales S.A. 

 

[illegible
signature] [Seal:] David A. Perednik Attorney-in-fact / [illegible
signature][Seal:] Mariano Mitelman, Attorney-in-fact.

 

 

 

4

 

Exhibit I 

 

Description of Corporate Services Areas of
Exchanges 

 

Human Resources 

 

The Human Resources sector renders to the Parties the service
consisting in Human Resources Administration; Human Resources
Management, and Organizational Culture Management. Within the main
activities of the sector we may mention labor relationships,
selection of managerial positions, leadership training and
interpersonal skills, remunerations and benefits, internal
communication, etc.

 

Finance 

 

The Finance sector renders to THE PARTIES the service consisting in
Investor Relations, Capital Markets, Financial Risk, Management of
Financial Transactions, Financial Analysis.

 

Planning 

 

The Planning area is responsible for medium- and long-term
planning, for aligning the PARTIES’ objectives and individual
goals, for coordinating the PARTIES’ investment analysis and
for coordinating all the management information flowing through the
businesses and submitted to the respective Boards of
Directors.

 

Institutional Relations 

 

The Institutional Relations sector renders to THE PARTIES the
service consisting in the development and control of advertising,
broadcasting and marketing actions, relations with the media,
preparation of articles, brochures and related
activities.

 

Administration and Control 

 

The Administration and Control sector is responsible for the
PARTIES’ management control, budget of structure expenses,
and SOX controls.

 

Shared Services Center 

 

The Shared Services Center provides THE PARTIES with all the
transactional and operational services associated to income and
expense management, to the services inherent in managing human
resources benefits and payroll processing, in commercial contract
management, in errand running services and in general services. And
it is equally responsible for managing, maintaining and providing
support to systems, technology and processes.

 

Insurance 

 

The Insurance sector is in charge of managing THE PARTIES’
assets’ coverage by negotiating, acquiring and monitoring
insurance policies, dealing with claims in terms of coverage,
collection, etc.

 

Safety 

 

The Safety sector renders to THE PARTIES the surveillance
service. 

 

Contracts 

 

The Contracts sector renders to THE PARTIES the service consisting
in aid to the preparation, analysis and response to legal briefs,
agreements, official letters, etc.

 

Technical, Infrastructure and Services, Architecture and Design,
and Works Development

 

 

5

 

 

 

The Technical, Infrastructure and Services, Architecture and
Design, and Works Development sector renders to THE PARTIES the
services consisting in operational coordination of the following
sectors: Architecture and Design; Works Development; and Technical,
Infrastructure and Services.

 

Purchases and Hirings 

 

The Purchases and Hirings sector bears the responsibility of
obtaining the most appropriate goods and/or services for the
purpose for which they will be used. Quality, costs and terms of
delivery are essential when taking the decision to hire. In
addition, this sector deals with the necessary means to obtain
appropriate funding of the purchases from suppliers.

 

Environment and Quality 

 

The Environment and Quality sector renders to the PARTIES the
services consisting in management of national and municipal permits
and licenses before the controlling entities. In addition, it
assesses the environmental impact of projects and activities in
order to define preventive and corrective actions for minimizing
such impacts, following the working methodology set forth in an
Environmental Management System.

 

Real Estate 

 

The Real Estate sector renders to THE PARTIES the services
consisting in sales and acquisitions of real estate, except for
real estate assigned to the agricultural business.

 

Governmental Affairs 

 

The Governmental Affairs sector takes part in the businesses
arising from governmental grants (exploitation concessions and
private initiatives).

 

Hotels 

 

The Hotels sector renders to THE PARTIES the services consisting in
the integration of the different areas of hotels along with their
business relations. It carries out activities to optimize and
control hotels’ management and organization.

 

Board of Directors to be Distributed 

 

The Board of Directors to be Distributed sector includes the
employees performing activities of support and assistance to the
Parties’ Board of Directors.

 

Real Estate Business Board of Directors to be
Distributed 

 

The Real Estate Business Board of Directors to be Distributed
sector includes the employees performing activities of support and
assistance to the Board of Directors of IRSA and
IRSAPC.

 

General Management Department to be Distributed 

 

The General Management Department to be Distributed sector includes
employees performing activities of support and assistance to the
Parties’ General Management Departments.

 

Board of Directors’ Safety 

 

The Board of Directors’ Safety sector renders to the Parties
the service consisting in comprehensive safety for the main
officers acting in their Board of Directors.

 

Audit Committee 

 

The Audit Committee sector includes the employees performing tasks
of support and assistance to THE PARTIES' Audit
Committees.

 

 

6

 

 

 

Real Estate Business Management 

 

The Real Estate Business Management sector renders the following
services to IRSA and IRSAPC: budget and control management,
accounting and reporting, analysis of new businesses, analysis of
the business clients’ credit risk, IT support to shopping
centers, marketing and leadership agreements for the business legal
aspects.

 

Real Estate Business HHRR 

 

The Real Estate Business HHRR sector renders to IRSA and IRSAPC the
service consisting in Human Resource Administration; Human Resource
Management; Workplace Safety, Hygiene and Environment;
Organizational Culture Management and Project Management. The main
sector activities include, among others: personnel management,
recruitment and training, compensation and benefits, internal
communication, third party control, etc.

 

Fraud Prevention 

 

The Fraud Prevention sector renders to THE PARTIES corporate Fraud
Prevention services.

 

Internal Audit 

 

The Internal Audit sector renders to THE PARTIES internal audit
services. 

 

 

 

7

 

Exhibit II 

Cost Distribution Bases 

 

	

Corporate
Departments

 

	

Department

 

	

Division
/ Subdivision

 

	

Distribution
Method

 

	

Human Resources

 

	

Human
Resources Management

 

	
 

	

By
headcount (non-corporate personnel) and weighting the percentages
of other areas (corporate personnel).

 

	
 

	

Culture
Management

 

	
 

	
 

	

Administration
and Labor Relations

 

	
 

	

Finance

 

 

	

Capital
Markets

 

	
 

	

Weighting
is as follows:

Capital
Markets 25%

Relations
with Investors 25%

Financial
Analysis 12.5%

Financial
Risk 12.5%

Financial
Administration 25%

Investors Relations: Number of business highlights during
the semester, number of result announcements, number of meetings
with investors (current or potential) to discuss the
companies’ business and strategy, number of active coverages,
number of result conferences, the complexity of the website of each
company, number of relevant facts published in the Argentine
Securities and Exchange Commission and the US Securities and
Exchange Commission, and number of Roadshows (Deal or Non-Deal). All items involved are weighted in equal
parts. 

Capital Markets: Amount of financial transactions conducted
in the period weighted at 70% and the remaining 30% corresponds to
updates of offering memoranda and “horizontal” works
(20F, annual reports, Press Release, etc.)

Financial Risk: Time invested in the duties
performed.

Financial Administration: Total assets weighted at 40% and
total liabilities weighted at 60%. The resulting percentage shall
be weighted at 80% over the total. The remaining 20% will
correspond to the percentage that each company consummates over the
total inquiries for special transactions.

Financial Analysis: Time devoted to the tasks
performed.

 

	

Relations
with Investors

 

	
 

	

Financial
Risk

 

	
 

	

Financial
Administration

 

	
 

	

Financial
Analysis

 

	
 

	

Planning

 

	
 

	
 

	

Proportional
among the three companies.

 

	

Institutional Relations

 

	
 

	
 

	

Tasks
performed and the time spent in each.

 

 

 

8

 

 

 

	

Administration and Control Each one of the sectors
comprising the Department is weighted.

 

	

Accounting
and Reporting

 

	
 

	

Tasks
conducted and hours spent in each task

 

	

Taxes

 

	
 

	

Salaries
are weighted according to the position and tasks performed (per
company and in equal shares)

 

	

Budget
and Global Management Control

 

	
 

	

The
preceding half year’s structure expenses are
pro-rated.

 

	

SOX
Regulation

 

	
 

	

Distribution
of key control % per front / company

 

	

Shared Services Center (CSC)

(The
percentages of all the sectors reporting to the CSC are weighted
according to projected salaries of the sector in question over CSC
total salaries).

 

	

Expenses
Administration

 

	
 

	

Number
of Expense Transactions performed by each Company + Direct
Allocation of Resources

 

	

Revenues
Administration

 

	
 

	

Number
of Revenue Transactions performed by each Company + Direct
Allocation of Resources

 

	

Customer
Administration

 

	
 

	

Direct
Allocation of Resources

 

	
 

	

Collections
Administration

 

	
 

	

Direct
Allocation of Resources

 

	
 

	

Treasury
Administration

 

 

	
 

	

Number
of Treasury Transactions performed by each Company.

 

	
 

	

Own
Account Administration

 

	
 

	

Number
of Transactions performed by each Company.

 

	
 

	

Technology

 

	
 

	

Weighting
of time spent in each task (related to the services).

 

	
 

	

IT
Services

 

	
 

	

Number
of CASTI incidents processed for each Company.

 

	
 

	

Master
Data

 

	
 

	

Number
of Transactions processed by each Company.

 

	
 

	

Maintenance
Systems

 

	
 

	

Hours
devoted to each task.

 

	
 

	

Project
Systems

 

	
 

	

Hours
devoted to each task.

 

	
 

	

Commercial
Transactions

 

	
 

	

Hours
devoted to each task.

 

	
 

	

IT
Security

 

	
 

	

Weighting
of time spent in each task.

 

	
 

	

Process
Quality

 

	
 

	

Weighting
of time spent in each task.

 

	
 

	

CSC
Human Resources

 

	
 

	

50%
weighting of % of CSC sectors; 50% weighting of Corporate
sectors.

 

	
 

	

Errand
Running Service

 

	
 

	

Number
of errands run.

 

	
 

	

Back
office

 

	
 

	

Hours
spent in each task.

 

	
 

	

General
Services

 

	
 

	

Hours
spent in each task.

 

	

Real Estate Business Management

(each
of the Departments comprising the Area are weighted. It does not
render services to Cresud)

 

 

	

Real
Estate IT Services

 

	
 

	

70%
IRSAPC, 30% to be distributed IRSAPC and IRSA based on supervised
projects.

 

	

Real
Estate Business Analysis

 

	
 

	

Hours
devoted to reviewed projects as applicable to IRSA PC or
IRSA.

 

	

Real
Estate Credit Risk

 

	
 

	

Hours
worked for each company.

 

	

Real
Estate Legal Affairs

 

	
 

	

Weighting
of hours and salaries.

 

	

Real
Estate Budget and Management Control

 

	
 

	

Actual
revenues per company.

 

	
 

	

Real
Estate Business Accounting and Reporting

 

	
 

	

Real
Estate Business accounting voucher weighting.

 

	

Real Estate Business Board of Directors to be
Distributed

 

	
 

	
 

	

Proportional
between IRSA and IRSAPC. Excludes Cresud.

 

	

Real Estate Business HHRR

 

	
 

	
 

	

Based
on payroll.

 

	

Insurance

 

	
 

	
 

	

Based
on the amount of premiums under the annual insurance
program.

 

	

Safety

 

	
 

	
 

	

Per
hour

 

	

Contract Department

 

	

Contracts

 

	
 

	

Number
of contracts executed.

 

	

Technical, Infrastructure and Services, Architecture and Design,
and Works Development Department

An
average is obtained from the Departments reporting to
it

 

	

Technical,
Infrastructure and Services

(IRSAPC
– IRSA: Weighted average from the Departments reporting to it
less the percentage allocated to CRESUD. CRESUD: a percentage is
calculated based on the hours spent in the tasks
performed/planned)

 

	

Planning
and Control

 

	

Weighted
average of the areas under the supervision of the TIS Department of
IRSA and IRSAPC, excluding CRESUD.

 

	

Logistics

 

	

Weighted
between directly assigned personnel and centralized personnel
distributed per square meter of the real property (IRSA and IRSAPC)
and time spent in tasks (CRESUD).

 

	

Distributed
Operations

 

	

Square
meters of real property held, operated and to which maintenance
services are provided (IRSA and IRSAPC) and time spent in tasks
(CRESUD).

 

	

Architecture

 

	

IRSA/IRSAPC:
Personnel distributed per surface area and number of
stores.

 

	

Third
parties' services

 

	

Distribution
of resource allocation.

 

	

Traveling
Personnel

 

	

Maintenance
hours (IRSA and IRSAPC) and time spent in tasks
(CRESUD).

 

	

Engineering
and Maintenance

 

	

Square
meters of real property held, to which maintenance, engineering and
other services are provided (IRSA and IRSAPC) and time spent in
tasks (CRESUD).

 

	

Works
Development

 

	
 

	

Tasks
performed and time spent in each.

 

	

Architecture
and Design

 

	
 

	

Completed
projects.

 

	

Purchases and Hirings

 

	
 

	
 

	

Weighted
volume and amounts of purchase orders.

 

	

Environment and Quality

 

	
 

	
 

	

The
distribution of corporate costs of the Environment, Farming Quality
and Standardization area will be made according to the hours
devoted to each global topic by person and company during the
period.

 

	

Real Estate

 

	
 

	
 

	

Tasks
performed and time spent in each.

 

	

Governmental Affairs

 

	
 

	
 

	

Weighting
of allocated projects.

 

	

Hotels

 

	
 

	
 

	

100%
IRSA.

 

	

Internal Audit

 

	
 

	
 

	

Times
estimated/forecast in the annual plan.

 

	

Fraud Prevention

 

	
 

	
 

	

Proportional
among the three companies

	

Board of Directors to be Distributed

 

	
 

	
 

	

Proportional
among the three companies

	

Audit Committee

 

	
 

	
 

	

Weighting
of tasks performed.

 

	

General Management Department to be Distributed

 

	
 

	
 

	

Proportional
among the three companies

 

	

Board of Directors’ Safety

 

	
 

	
 

	

Proportional
among the three companies

 

 

THIS DOCUMENT IS A TRUE AND
ACCURATE TRANSLATION into English of the document in Spanish
I have had before me in Buenos Aires, on this 27th day of September,
2016.

 

[For authentication purposes
only:]                                                                                                                              

ES TRADUCCIÓN FIEL al
inglés del documento adjunto redactado en idioma castellano
que he tenido ante mí y al cual me remito en Buenos Aires, a
los 27 días de setiembre de 2016.

 

 

9

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