Document:

Exhibit

Exhibit 10.3
RESTRICTED COMMON SHARE UNIT AWARD AGREEMENT
THIS RESTRICTED COMMON SHARE UNIT AWARD AGREEMENT (this “Agreement”) is entered into as of                                  , 20    (the “Effective Date”), by and between Whitestone REIT, a Maryland real estate investment trust (the “Company”), and                                             (the “Participant”).  Capitalized terms not defined in this Agreement shall have the meanings ascribed to such terms in the 2018 Long-Term Equity Incentive Ownership Plan, as it may be amended from time to time (the “Plan”).
WHEREAS, the Participant is a Trustee and/or an Employee; and 
WHEREAS, the Company maintains the Plan, which is incorporated into and forms a part of this Agreement, and the Participant has been selected by the Committee to receive an award of Restricted Common Share Units under the Plan.
NOW, THEREFORE, IT IS AGREED, by and between the Company and the Participant, as follows:
1.Restricted Common Share Unit Award.  The Participant is hereby granted                      Restricted Common Share Units (the “Units”) subject to the restrictions and on the terms and conditions set forth in this Agreement (the “Award”).  Each Unit shall represent the right to receive one (1) Common Share.  The number of Units subject to this Award and the number of Common Shares deliverable with respect to such Units may be adjusted from time to time in accordance with Section 4.2 of the Plan.
2.    Restriction on the Units.
(a)    Period of Restriction.  Except as otherwise set forth herein, all the Units issued to the Participant pursuant to this Agreement shall be subject to a period of restriction (the “Period of Restriction”) during which the Participant’s rights in and to such Units shall be subject to the limitations and obligations set forth in this Section 2.
(b)    Lapse of Period of Restriction.  The Period of Restriction shall lapse in accordance with the provisions of Exhibit A, which is attached hereto and forms part of this Agreement.  During the period that the Units are subject to the Period of Restriction, such Units are referred to herein as “Restricted Units.”
(c)    Delivery of the Common Shares.  Subject to Section 2(d) below, upon the lapse of the Period of Restriction with respect to a Unit, the Unit shall be converted into the right to receive a Common Share, and the Company will deliver to the Participant a number of Common Shares equal to the number of Units subject to this Award, on the applicable date of the lapse of the Period of Restriction or as soon as practicable (and in all events within 60 days) thereafter. The form of delivery (e.g., a share certificate or electronic entry evidencing such shares) shall be determined by the Company.
(d)    Termination of Service.  Notwithstanding any other provision of this Agreement to the contrary, if the Participant’s service as an Employee (if the Participant is an Employee but not a Trustee), a Trustee (if the Participant is a Trustee but not an Employee) or as a Trustee and an Employee (if the Participant is a Trustee and an Employee) terminates for any reason (or no reason), other than the Participant’s death or Disability, any Restricted Units that are subject to the Period of Restriction on the date of the Participant’s termination shall be immediately forfeited by the Participant and shall be automatically transferred to and reacquired by the Company at no cost to the Company, and neither the Participant nor his or her heirs, executors, administrators or successors shall have any right or interest in such Restricted Units or the underlying Common Shares.  In the event of the Participant’s death or Disability, any Restricted Units that are subject to the Period of Restriction on the date of death or Disability shall immediately vest and the Participant or his or her heirs, executors, administrators or successors shall have the right and interest in such Restricted Units.
3.    No Rights as a Shareholder.  Until Common Shares shall have been delivered to the Participant in accordance with Section 2(c) hereof, subject to the terms of this Agreement and the Plan, the Participant shall have no rights of a shareholder with respect to the Restricted Units, including no right to vote the Restricted Units and no right to receive current dividends (or dividend equivalents) with respect to the Restricted Units.  
4.    Change in Control.  Notwithstanding Section 2 of this Agreement, if the Participant holds Restricted Units at the time a Change in Control occurs, the Period of Restriction with respect to such Restricted Units granted in Section 1 shall automatically lapse immediately prior to the consummation of such Change in Control.  
5.    Withholding.  All deliveries and distributions under this Agreement shall be subject to withholding of all applicable taxes.  The Participant agrees to make appropriate arrangements with the Company for satisfaction of any applicable federal, state or local tax withholding requirements. The Participant agrees that the Company shall be authorized to take such action as the Company may deem necessary (including, without limitation, in accordance with applicable law, withholding amounts from any compensation or other amount owing from the Company or an Affiliate to the Participant or net withholding whereby upon settlement of the Restricted Units the Company withholds a number of Common Shares having a Fair Market Value equal to the applicable tax withholding obligation) to satisfy all obligations for the payment of such taxes.  
6.    Restrictions on Transfer.  During the Period of Restriction, the Participant shall not sell, transfer, pledge, hypothecate, assign, exchange or otherwise dispose of the Restricted Units.  Any attempted sale, transfer, pledge, hypothecation, assignment, exchange or other disposition shall be null and void and of no force or effect and the Company shall have the right to disregard the same on its books and records and to issue “stop transfer” instructions to its transfer agent.
7.    Plan Provisions Control.  This Agreement is subject to the terms and conditions of the Plan, which are incorporated herein by reference.  Notwithstanding anything to the contrary contained herein, the provisions of the Plan shall govern if and to the extent that there are inconsistencies between the provisions of the Plan and the provisions of this Agreement.  The Participant acknowledges that the Participant has received a copy of the Plan prior to the execution of this Agreement.
8.    No Rights Conferred.  Nothing in this Agreement shall give the Participant any right to continue in the employ or service of the Company or any Affiliate and/or as a member of the Company’s Board of Trustees or in any other capacity, or interfere in any way with the right of the Company or any Affiliate to terminate the employment or services of the Participant.
9.    Consent to Electronic Delivery.  The Company may choose to deliver certain materials relating to the Plan in electronic form. By accepting this Agreement, the Participant agrees that the Company may deliver the Plan prospectus and the Company’s annual report to the Participant in an electronic format.  If at any time the Participant would prefer to receive paper copies of these documents, please contact the Chief Financial Officer of the Company to request paper copies of these documents.
10.    Adjustments.  All references to the number and class of shares covered by this Agreement and other terms in this Agreement may be appropriately adjusted in accordance with Section 4.2 of the Plan.
11.    Compliance with Section 409A of the Code.  The Participant hereby consents (without further consideration) to any change to this Agreement or the Award so the Participant can avoid paying penalties under Section 409A of the Code, even if those changes affect the terms and conditions of this Agreement of the Award and reduce its value or potential value.
12.    Binding Effect.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.  This Agreement may not be assigned or transferred in whole or in part by the Participant, nor may the Participant delegate any duty or obligation under this Agreement, and any attempt to so assign, transfer or delegate shall be null and void and of no force or effect.
13.    Interpretation of this Agreement.  All determinations and interpretations made by the Committee with regard to any questions arising under the Plan or this Agreement shall be final, binding and conclusive as to all persons, including without limitation the Participant and any person claiming rights from or through the Participant.
14.    Venue.  Each party to this Agreement hereby irrevocably (i) consents and submits to the exclusive jurisdiction of the state and federal courts in Harris County, Texas in connection with any disputes arising out of this Agreement, and (ii) waives any objection based on venue or inconvenient forum with respect to any action instituted therein arising under this Agreement or the transactions contemplated hereby, and agrees that any dispute with respect to such matters shall be heard only in the courts described above.
15.    Governing Law; Entire Agreement; Amendment.  This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland, without regard to such state’s conflict of laws principles.  The Plan and this Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof; provided, however, that if the Participant is party to an employment, change in control or similar agreement with the Company or an Affiliate and such agreement contains terms applicable to equity awards of the type granted by this Agreement that are more favorable to the Participant than is provided for in this Agreement, the terms of such employment, change in control or similar agreement shall control.  This Agreement may be amended by the Committee, subject to the Participant’s consent if such amendment materially and adversely affects the rights of the Participant, except that the consent of the Participant shall not be required for any amendment made pursuant to Section 4.2 or Section 15.11 of the Plan, or as set forth in Section 11 of this Agreement.
16.    Tax Elections.  THE PARTICIPANT UNDERSTANDS THAT HE OR SHE (AND NOT THE COMPANY) SHALL BE RESPONSIBLE FOR THE PARTICIPANT’S OWN TAX LIABILITY THAT MAY ARISE AS A RESULT OF THE ACQUISITION OF THE UNITS HEREUNDER. THE PARTICIPANT ACKNOWLEDGES AND AGREES THAT HE OR SHE HAS CONSIDERED THE ADVISABILITY OF ALL TAX ELECTIONS IN CONNECTION WITH THE ISSUANCE OF THE UNITS.
17.    Notices.  Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed given (i) when delivered personally, or (ii) three days after being deposited in the United States mail, by certified or registered mail, postage prepaid, or (iii) the next business day after sent by nationally recognized overnight delivery service, and addressed, if to the Company, at its principal place of business, Attention: Chief Financial Officer, and if to the Participant, at his or her most recent address as shown in the employment or stock records of the Company.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.
WHITESTONE REIT

By:    __________________________
Name:    __________________________
Title:    __________________________
Participant:    ____________________

Date:    [        ]

Exhibit A
LAPSE OF PERIOD OF RESTRICTION
The purpose of this Exhibit A is to set forth the [performance goals and measures that will be applied to determine the amount of the Award that vests][date of lapse of the Period of Restriction] under the terms of the attached Restricted Common Share Unit Award Agreement (the “Agreement”). This Exhibit A is incorporated into and forms a part of the Agreement.
The Period of Restriction will lapse as follows:

1ex_125196.htm

Exhibit 10.1.1

 

AGREEMENT FOR DISCOUNTED PAYOFF

 

 

THIS AGREEMENT FOR DISCOUNTED PAYOFF ("Agreement") dated this _______ day of October, 2018, is made and entered into by and among Wells Fargo Bank, National Association ("Wells Fargo"), and SB Partners (the "Borrower") and Eagle IV Realty, LLC (“Mortgagor”).

 

RECITALS

 

A.     Wells Fargo made a loan to the Borrower in the original principal amount of $6,000,000.00 (the "Loan"). The Loan is evidenced by a promissory note (the “B-Note”) dated April 29, 2011 executed by the Borrower in favor of Wells Fargo, in the original principal amount of the Loan ("Note").

 

B.     As of September 5, 2018, the unpaid principal balance of the Loan is $5,693,855.94, the accrued, but unpaid interest thereon is $              0             , and the per diem interest is $              0             .

 

C.     The Note is secured by, among other things, liens on real property (the “Maple Grove Property”) as evidenced by that Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement dated April 29, 2011 (the “Mortgage”) made by Mortgagor and recorded May 5, 2011, as Document No. 9651267, in the Official Records of the County of Hennepin, State of Minnesota and by the filing of various UCC-1 financing statements.

 

D.     The Note is further secured by, among other things, a pledge of Borrower’s membership interest in the Mortgagor (the “Pledged Interests”) as evidenced by a Pledge Agreement dated April 29, 2011 made by Borrower (the “Pledge Agreement”) and by the filing of various UCC-1 financing statements.

 

E.     The Note, Mortgage, Pledge and all other agreements, documents and instruments executed from time to time in connection with the loan evidenced by the Note or related thereto are collectively referred to as the “Loan Documents.”

 

F.     Borrower has requested that Wells Fargo accept payment of $4,000,000.00 ("Discounted Payoff Amount") in full satisfaction of the Note and Wells Fargo is willing to do so subject to the execution, delivery and strict performance of the terms and conditions of this Agreement.

 

 

 

 

NOW, THEREFORE, in consideration of the foregoing and for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto intending to be legally bound hereby agree as follows:

 

1.             CONDITIONS PRECEDENT. The following are conditions precedent to Wells Fargo's obligations under this Agreement:

 

1.01      Receipt by Wells Fargo of the fully executed original of this Agreement, and any and all other documents and agreements which are required by this Agreement, each in form and content acceptable to Wells Fargo on or before October 5, 2018. Unless and until Borrower and Mortgagor execute and return this Agreement to Wells Fargo by such date and Wells Fargo signs this Agreement, Wells Fargo shall have no obligation to accept the Discounted Payoff Amount in full satisfaction of the Note and the Wells Fargo is entitled to immediately exercise all rights and remedies available to it.

 

1.02      The representations and warranties contained in this Agreement are true and correct.

 

1.03      Borrower shall deliver to Wells Fargo the Discounted Payoff Amount, plus Wells Fargo’s attorney’s fees and expenses in connection with this Agreement, in cash or by cashier's check (from a lender acceptable to Wells Fargo) or by confirmed wire transfer, in immediately available U.S. federal funds on or before 3:00 p.m., October 30, 2018. If payment is remitted by wire transfer, instructions are as follows:

 

Bank Name: Wells Fargo Bank NA

 

Routing Number: 121000248

 

Account Name: Wires In Process – WSLC

 

Account Number 0065668-4050720

 

Ref: SB Partners, Obligor 5468770332, Obligation 26, Loan # WB17338

 

Attention: Heather Jones

 

2.             REPRESENTATIONS AND WARRANTIES.

 

2.01     Borrower and Mortgagor acknowledge and agree that the Recitals hereinabove are true and correct, that the indebtedness evidenced by the Note is due and owing to Wells Fargo without offset, defense or counterclaim, and further acknowledge and agree that the Note, the Mortgage, Pledge and all other Loan Documents, are valid and binding and fully enforceable according to their terms.

 

2.02     The Borrower represents and warrants that, other than those listed as parties to this Agreement, there is no individual or entity owned by, controlled by, under common ownership with, or affiliated with Borrower or Mortgagor, which possesses a claim, demand, or cause of action of any kind and nature whatsoever arising out of or related to the Loan against Wells Fargo, or any of its past or present subsidiaries, divisions, affiliates, attorneys, officers, employees, directors, agents, alter egos, shareholders, partners, heirs, executors, administrators, legal successors and assigns, or their respective insurers and underwriters.

 

 

 

 

2.03     Borrower and Mortgagor represent and warrant that Borrower and Mortgagor are the owners of and have not assigned, sold, transferred, or otherwise disposed of any of the Pledged Interests and Maple Grove Property, respectively.

 

2.04     Borrower and Mortgagor each represents and warrants that each individual executing this Agreement on their behalf is duly authorized to execute this Agreement and has all requisite power, authority, and approval required to enter into, execute, and deliver this Agreement, including the releases given in this Agreement.

 

2.05     Borrower represents and warrants that it understands that this Agreement constitutes a forgiveness of debt by Wells Fargo and as such, Wells Fargo shall file all applicable documents required by bank regulatory agencies and taxing authorities in connection with the forgiveness of debt by national banks;

 

3.            BORROWER'S OBLIGATIONS. Borrower agrees to satisfy the conditions precedent set forth in Section 1, above.

 

4.            RELEASE OF DOCUMENTS AND COLLATERAL.   Upon satisfaction (or waiver by Wells Fargo) of the conditions precedent in Section 1 of this Agreement including, but not limited to, the receipt of the Discounted Payoff Amount (the "Effective Date"), Wells Fargo shall (i) satisfy the Mortgage, (ii) release the security interest on the Pledged Interests under the Pledge Agreement, (iii) release the financing statements; and (iv) release the Note marked “Paid in Full” and Borrower and Mortgagor shall without further act be released and discharged from their respective obligations and liabilities under the Loan Documents in respect of the Note, except for those obligations and liabilities that by their terms survive the payment in full of the indebtedness and except for their respective obligations and liabilities under this Agreement. This Agreement only pertains to the Loan and nothing in this Agreement modifies or waives any rights that Wells Fargo may have with respect to any other banking or financial relationship between Wells Fargo and the Borrower or the Mortgagor.

 

5.            DEFAULT UNDER TERMS OF AGREEMENT.   The Borrower and Mortgagor understand and agree that Wells Fargo’s agreements hereunder are conditioned upon receipt of the Discounted Payoff Amount in accordance with the terms of this Agreement, and the execution of, and strict performance by Borrower and Mortgagor under, this Agreement. Borrower and Mortgagor agree that if Wells Fargo does not receive the Discounted Payoff Amount by the date specified above, or if any amount applied in payment of the Note is or must be, or is claimed or ordered to be, rescinded, avoided or returned by Wells Fargo to any person or entity for any reason whatsoever (including, without limitation, bankruptcy, insolvency, or reorganization of Borrower, Mortgagor or any other person), the full amount of indebtedness evidenced by the Note (without the discount of the Note granted by Wells Fargo pursuant to this Agreement) shall become immediately due and payable in full without notice or demand and Wells Fargo shall be entitled to all of its rights and remedies as provided by the Note, the Mortgage, Pledge and the Loan Documents and applicable law.

 

 

 

 

6.            GENERAL RELEASE AND INDEMNITY. In consideration of Wells Fargo’s execution of this Agreement, the Borrower and Mortgagor do hereby, on behalf of themselves, their agents, insurers, heirs, successors and assigns, release, acquit and forever discharge Wells Fargo and Wells Fargo & Company, and any and all of their parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns, together with all of their present and former directors, officers, agents, attorneys and employees (together, the “Released Parties”) from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which the Borrower and Mortgagor, or either of them, has had, now has or has made claim to have against the Released Parties for, upon or by reason of any act, omission, matter, cause or thing whatsoever relating to any or all of the Note, Mortgage, Pledge and Loan Documents, and arising from the beginning of time to and including the date of this Agreement (the “Released Claims”), whether such claims, demands and causes of action are matured or unmatured, liquidated or unliquidated, known or unknown, fixed, contingent, direct or indirect, and shall indemnify and hold harmless the Released Parties from any and all expenses, costs, liability and fees (including but not limited to attorney’s fees and expenses) incurred by any such Released Party as a result of any such action or proceeding instituted by Borrower, the Mortgagor or any third party. Borrower and Mortgagor irrevocably covenant and agree forever to refrain from initiating, filing, instituting, maintaining or proceeding upon, or encouraging, advising or voluntarily assisting any other person or entity to initiate, institute, maintain or proceed upon any Released Claim of any nature whatsoever released in this General Release and Indemnity.

 

7.            GENERAL PROVISIONS.

 

7.01     Each party to this Agreement acknowledges and warrants that it has been represented by independent counsel of its own choice throughout all negotiations which preceded the execution of this Agreement. Each party has read or had read to it all of this Agreement and had it explained to it by his attorney and fully understands all the terms used and their significance;

 

7.02     If any action or proceeding is brought to enforce or interpret this Agreement, the prevailing party, in addition to all other legal or equitable remedies possessed, shall be entitled to be reimbursed for all costs and expenses, including reasonable attorneys fees, incurred by reason of such action or proceeding;

 

7.03     This Agreement contains the entire agreement and understanding concerning the subject matter hereof between the parties, and supersedes and replaces all prior negotiations, proposed agreements and agreements written or oral. Each of the parties to this Agreement acknowledges that no other party to this Agreement, nor any agent or attorney of any such party, has made any promise, representation or warranty whatsoever, express or implied, not contained in this Agreement, to induce him to execute this Agreement. Each of the parties further acknowledge that he is not executing this Agreement in reliance on any promise, representation or warranty not contained in this Agreement.

 

7.04     Whenever, in this Agreement, the context may so require, the masculine or neuter gender shall be deemed to refer to and include the feminine, masculine, and neuter, and the singular to refer to and include the plural.

 

 

 

 

7.05     The substantive laws of the applicable state as provided in the Loan Documents shall govern the construction of this Agreement and the rights and remedies of the parties hereto.

 

7.06     It is expressly understood and agreed that this Agreement is being made solely for the purpose of avoiding the expense and inconvenience of litigation and that it is not an admission of wrongful conduct or of any liability to any other party, all of which is expressly denied.

 

7.07     This Agreement may be executed in several counterparts, all of which shall be an original and enforceable against any party who signed it, and all of which shall constitute one and the same document.

 

7.08     CONFIDENTIALITY. Borrower and Mortgagor, for and on behalf of themselves, and their agents, heirs, insurers, successors and assigns, covenant that they will keep this Agreement and all negotiations with Wells Fargo concerning the Note and this Agreement strictly confidential and, except as may otherwise be required by law, will not disclose the terms of this Agreement or the content of any of Borrower's and Mortgagor’s negotiations with Wells Fargo to any person or entity, except to their legal, tax and other advisors and to enforce this Agreement, but only after advising them of this obligation of confidentiality. Borrower and Mortgagor shall be responsible for any breach of this provision by any person to whom Borrower or Mortgagor shall provide information or documents required to be kept confidential under this provision.

 

7.09     WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT, OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THE AGREEMENT (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

7.10     ARBITRATION. Wells Fargo and each party to this agreement hereby agree, upon demand by any party, to submit any Dispute to binding arbitration in accordance with the terms of this arbitration provision. Arbitration may be demanded before the institution of a judicial proceeding, or during a judicial proceeding, but not more than 60 days after service of a complaint, third party complaint, cross-claim, or any answer thereto, or any amendment to any of such pleadings. A "Dispute" shall include any dispute, claim or controversy of any kind, whether in contract or in tort, legal or equitable, now existing or hereafter arising, relating in any way to any aspect of this agreement, or any related agreement incorporating this arbitration provision (the "Documents"), or any renewal, extension, modification or refinancing of any indebtedness or obligation relating thereto, including without limitation, their negotiation, execution, collateralization, administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or termination. DISPUTES SUBMITTED TO ARBITRATION ARE NOT RESOLVED IN COURT BY A JUDGE OR JURY. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARBITRATED PURSUANT TO THIS ARBITRATION PROVISION.

 

 

 

 

A.     Governing Rules. Any arbitration proceeding will (i) be governed by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice of law provision in any of the documents between the parties; and (ii) be conducted by the American Arbitration Association ("AAA"), or such other administrator as the parties shall mutually agree upon, in accordance with the AAA's commercial dispute resolution procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs, in which case the arbitration shall be conducted in accordance with the AAA's optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes are referred to herein, as applicable, as the "Rules"). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control. Arbitration proceedings hereunder shall be conducted at a location mutually agreeable to the parties, or if they cannot agree, then at a location selected by the AAA in the state of the applicable substantive law primarily governing the Note. Any party who fails or refuses to submit to arbitration following a demand by any other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any Dispute. The arbitrator shall award all costs and expenses of the arbitration proceeding. Nothing contained herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under 12 U.S.C. Section 91 or any similar applicable state law.

 

B.     No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any party to (i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any Dispute to arbitration or reference hereunder, including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph.

 

C.     Arbitrator Qualifications and Powers. Any arbitration proceeding in which the amount in controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to the Rules, and who shall not render an award of greater than $5,000,000.00. Any Dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of three arbitrators; provided however, that all three arbitrators must actively participate in all hearings and deliberations. Every arbitrator must be a neutral practicing attorney or a retired member of the state or federal judiciary, in either case with a minimum of ten years’ experience in the substantive law applicable to the subject matter of the Dispute. The arbitrator will determine whether or not an issue is arbitral and will give effect to the statutes of limitation in determining any claim. In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator's discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. The arbitrator shall resolve all Disputes in accordance with the applicable substantive law and may grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make effective any award. The arbitrator shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the applicable state rules of civil procedure, or other applicable law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief.

 

 

 

 

D.     Discovery. In any arbitration proceeding discovery will be permitted in accordance with the Rules. All discovery shall be expressly limited to matters directly relevant to the Dispute being arbitrated and must be completed no later than 20 days before the hearing date. Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the party's presentation and that no alternative means for obtaining information is available.

 

E.     Class Proceedings and Consolidations. No party hereto shall be entitled to join or consolidate disputes by or against non-parties in any arbitration, or to include in any arbitration any dispute as a representative or member of a class, or to act in any arbitration in the interest of the general public or in a private attorney general capacity. As used herein, “non-parties” shall mean all persons and entities except Lender and the party(ies) executing this agreement or any related Document.

 

F.     Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclude any arbitration proceeding within 180 days of the filing of the Dispute with the AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by a party required in the ordinary course of its business or by applicable law or regulation. If more than one agreement for arbitration by or between the parties potentially applies to a Dispute, the arbitration provision most directly related to the documents between the parties or the subject matter of the Dispute shall control. This arbitration provision shall survive the repayment of the Note and the termination, amendment or expiration of any of the Documents or any relationship between the parties.

 

 

 

 

7.11     TIME IS OF THE ESSENCE. TIME IS OF THE ESSENCE IN THIS AGREEMENT.

 

 

 

	
			WELLS FARGO BANK, 

			NATIONAL ASSOCIATION

			 

			 

			By: _____________________________

			Name:

			Title:

				
			SB PARTNERS,

			a New York limited partnership

			 

			By: SB Partners Real Estate Corporation, a

			New York corporation, its sole general

			partner

			 

			By:______________________________

			Name:____________________________

			Title:_____________________________

			
	 	 
	 	 
	 	
			EAGLE IV REALTY, LLC,

			a Delaware limited liability company

			 

			By:         SB Partners Real Estate Corporation

			a New York corporation, its manager

			 

			 

			By:      ________________________

			Name: ________________________

			Title:    Vice President

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