Document:

ex10-3.htm

Corporate Capital Trust 8-K

 

Exhibit 10.3

 

SPECIAL CUSTODY and PLEDGE AGREEMENT

AGREEMENT (hereinafter “Agreement”), dated as of June 4, 2013, among State Street Bank and Trust Company, a Massachusetts trust company, in its capacity as custodian hereunder (“Custodian”), Corporate Capital Trust, Inc. (the “Fund”), and BNP Paribas Prime Brokerage, Inc. (the “Counterparty”).

 

WHEREAS, the Fund provides Collateral (as defined herein) to Counterparty to secure obligations owing by the Fund to the Counterparty under the Committed Facility Agreement dated as of date hereof, as amended (the “Committed Facility Agreement”), and the account agreement included in the U.S. PB Agreement dated as of the date hereof with the Counterparty (the “Account Agreement” and together with the Committed Facility Agreement, the “40 Act Financing Agreements”); and

WHEREAS, Counterparty is required to comply with applicable laws and regulations pertaining to extensions of credit and borrowing of securities, including the margin regulations of the Board of Governors of the Federal Reserve System and of any relevant securities exchanges and other self-regulatory associations (collectively, the “Margin Rules”) and Counterparty’s internal policies; and

 

WHEREAS, to facilitate extensions of credit and the borrowing of securities from the Counterparty, the Fund and Counterparty desire to establish and evidence procedures for compliance with the Margin Rules; and

WHEREAS, Custodian has acted as custodian of certain assets of Fund pursuant to a custody agreement dated as of March 24, 2011 (the “Custody Agreement”).

NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, it is agreed as follows:

(1)           As used herein, capitalized terms have the following meanings unless otherwise defined herein:

“Adequate Performance Assurance” shall mean such Collateral placed in the Special Custody Account (as such term is hereinafter defined) as is adequate under the terms of the Committed Facility Agreement and, to the extent such Committed Facility Agreement (i) has been terminated or the commitment therein has expired or (ii) is otherwise inapplicable to any portion of the Collateral, the Account Agreement.

“Advice from Counterparty” means a notice or entitlement order (as defined in Section 8-102 of the UCC (as defined herein)) delivered by an Authorized Representative of Counterparty to the Fund or Custodian, as applicable hereunder, communicated: (i) in writing; (ii) by a facsimile-sending device; or (iii) in cases of calls for additional Collateral (as such term is hereinafter defined) or notices referred to in paragraph 8 hereof, by telephone to a person designated by the Fund or Custodian in writing as authorized to receive such advice or, in the event that no such person is available, to any officer of the Fund or Custodian and confirmed in writing promptly thereafter.  A duly-authorized officer of Counterparty will certify to Custodian, on Appendix A attached, the names and signatures of those employees of Counterparty who are authorized to sign Advices from Counterparty (each, an “Authorized Representative of Counterparty”), which certification may be amended from time to time.

“Business Day” means a day on which Custodian, the Fund and the Counterparty are open for business.

 

  

  

  

 

“Collateral” means U.S. cash, U.S. Government securities, or other U.S. margin-eligible securities acceptable to the Counterparty and Custodian which are pledged to the Counterparty as provided herein.

 

“Insolvency” means that:  (i) an order, judgment or decree has been entered under the bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law (herein called the “Bankruptcy Law”) of any jurisdiction adjudicating the Fund insolvent; or (ii) the Fund has petitioned or applied to any tribunal for, or consented to the appointment of, or taking possession by, a trustee, receiver, liquidator or similar official, of the Fund, or commenced a voluntary case under the Bankruptcy Law of the United States or any proceedings relating to the Fund under the Bankruptcy Law of any other jurisdiction, whether now or hereinafter in effect; or (iii) any such petition or application has been filed, or any such proceedings commenced, against the Fund and the Fund by any act has indicated its approval thereof, consent thereto or acquiescence therein, or an order for relief has been entered in an involuntary case under the Bankruptcy Law of the United States or any other jurisdiction, as now or hereinafter constituted, or an order, judgment or decree has been entered appointing any such trustee, receiver, liquidator or similar official, or approving the petition in any such proceedings.

“Instructions from Fund” means a request, direction or certification in writing signed in the name of the Fund by a person authorized by the Fund, on Appendix B attached (as may be amended from time to time), and delivered to Custodian or transmitted to it by a facsimile-sending device, except that instructions to pledge initial or additional Collateral may be given by telephone and thereafter confirmed in writing signed in the name of the Fund by a person authorized in writing by the Fund.

(2)           (a)           Upon instructions from the Fund, Custodian, in its capacity as a Securities Intermediary as defined in Revised Article 8 of the Uniform Commercial Code as in effect from time to time in the State of New York (the “UCC”), to the extent the same may be applicable, or in applicable federal law or regulations, shall segregate Collateral on its books and records as an account for Counterparty entitled “BNP Paribas Prime Brokerage, Inc., Pledgee of Corporate Capital Trust, Inc.” (“Special Custody Account”) and shall hold therein for the Counterparty as pledgee upon the terms of this Agreement all Collateral.  The Custodian hereby agrees that any Collateral except U.S. cash held in the Special Custody Account shall be treated as a financial asset for purposes of the UCC to the extent the same may be applicable, and Custodian shall elect to hold such Collateral that is U.S. cash as a deposit in its capacity as a “bank” as such term is defined in Section 9-102(a)(8) of the UCC, which deposit account shall constitute part of, and be maintained in the same manner as, the Special Custody Account.  The Fund agrees to instruct Custodian through Instructions from Fund as to the cash and specific securities which Custodian is to identify on its books and records as pledged to the Counterparty as Collateral in the Special Custody Account.

(b)           Provided that the Letter Agreement regarding Lending Operational Procedures has been agreed to by the Custodian, the Fund and Counterparty, upon receipt of an Advice from Counterparty, Custodian shall release Collateral identified by Counterparty from the Special Custody Account to the Fund’s custody account established pursuant to the terms of the Custody Agreement (the “Released Collateral”) for purposes of delivering such Released Collateral to Counterparty pursuant to the Letter Agreement regarding Lending Operational Procedures by and among the Custodian, the Fund and Counterparty.  The Fund hereby directs and authorizes Custodian to make such release, and any such Advice from Counterparty shall be “Proper Instructions” in accordance with the Custody Agreement.  In the event that there is inadequate Collateral in the Special Custody Account to satisfy such Advice from Counterparty, Custodian shall notify Counterparty and Fund of the shortfall amount, and other than issuing such notice, Custodian shall have no responsibility hereunder with respect to such Advice from Counterparty.

 

  

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(c)           The Fund agrees to provide and at all times maintain Adequate Performance Assurance in the Special Custody Account pursuant to the terms and conditions of this Agreement.  Such Collateral (a) may be released only in accordance with the terms of this Agreement; and (b) except as required to be released hereunder to the Counterparty, shall not be made available to the Counterparty or to any other person claiming through the Counterparty, including creditors of the Counterparty.  Custodian will maintain accounts and records for the Collateral in the Special Custody Account separate from the accounts and records of any other property of the Fund which may be held by Custodian, subject to the interest therein of the Counterparty as the pledgee thereof in accordance with the terms of this Agreement.  Such security interest in any item of Collateral will terminate at such time as such item of Collateral is released to the Fund as provided in paragraph 4 hereof.

Unless otherwise instructed in writing by the Fund, all distributions on Collateral received by the Custodian and any proceeds of transfer or other payments with respect to Collateral in the Special Custody Account, including, but not limited to, interest and dividends, shall not constitute Collateral and shall be delivered to the Fund’s custody account.  As between the Fund and the Counterparty, the Fund agrees to instruct the Custodian to credit any distribution on Collateral from a corporate action, redemption or issuer call received by the Custodian to the Special Custody Account as additional Collateral and shall be held in the Special Custody Account as Collateral until released therefrom or withdrawn in accordance with this Agreement.

 

(d)           The Fund, the Counterparty and Custodian agree that Collateral will be held for the Counterparty in the Special Custody Account by Custodian under the terms and conditions of this Agreement and that the Custodian will take such actions with respect to any Collateral in the Special Custody Account (including without limitation the delivery thereof in accordance with paragraph 8) as the Counterparty shall direct in an Advice from Counterparty, without further consent of the Fund.

(e)           The Fund hereby grants a continuing security interest to the Counterparty in the Special Custody Account and all Collateral and other financial assets credited thereto, from time to time, to secure the Fund’s obligations to the Counterparty under the Account Agreement.  Custodian shall have no responsibility for the validity or enforceability of such security interest.  For the avoidance of doubt, assets of the Fund held by the Custodian that are not Collateral or are not credited to the Special Custody Account shall not be subject to the foregoing security interest.

(f)           Reserved.

(3)           Custodian will confirm in writing to the Counterparty and the Fund, within one Business Day, all pledges, releases or substitutions of Collateral and will supply the Counterparty and the Fund with a monthly statement of Collateral in the Special Custody Account and transactions in the Special Custody Account during the preceding month.  Custodian will also advise the Counterparty and the Fund upon reasonable request, of the kind and amount of Collateral pledged to each of the Counterparty and the Fund.

(4)           Custodian agrees to release Collateral from the Special Custody Account only upon receipt of an Advice from Counterparty (including for whatever uses are permissible under the Committed Facility Agreement and Account Agreement, though Custodian shall at no time have responsibility for determining whether Counterparty is in compliance with those permissible uses). Counterparty agrees, upon request of the Fund, to provide such an Advice from Counterparty to Custodian with respect to Collateral selected by the Fund directing the release of such Collateral to the Fund:  (a) if said Collateral represents an excess in value of the Collateral necessary to constitute Adequate Performance Assurance at that time; (b) against receipt in the Special Custody Account of substitute Collateral having a value at least equal (with any remaining Collateral) to Adequate Performance Assurance; or (c) upon termination of the Fund’s accounts with Counterparty and settlement in full of all transactions therein and any amounts owed to the Counterparty with respect thereto.  It is understood that the Counterparty will be responsible for valuing Collateral; Custodian at no time has any responsibility for determining whether the value of Collateral is equal in value to Adequate Performance Assurance.

 

  

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(5)           The Fund represents and warrants to the Counterparty that securities pledged to the Counterparty shall be in good deliverable form (or Custodian shall have the unrestricted power to put such securities into good deliverable form), and that Collateral in the Special Custody Account will not be subject to any liens or encumbrances (including, to the best of its knowledge, those permitted by Rule 17f-5 promulgated under the Investment Company Act of 1940, as amended) other than the lien in favor of the Counterparty contemplated hereby.

(6)           Collateral in the Special Custody Account shall at all times remain the property of the Fund subject only to the extent of the interest and rights therein of the Counterparty as the pledgee and secured party thereof.  Custodian represents that Collateral in the Special Custody Account is not subject to any other lien, charge, security interest or other right or claim of the Custodian or any person claiming through Custodian. Custodian hereby waives any right, charge, security interest, lien or right of set off of any kind which it may have or acquire with respect to the Collateral in the Special Custody Account.  Except for the claims and interests of the Counterparty and the Fund, the Custodian has not, to the best of its knowledge, received written notice of any claim to, or interest in, the Special Custody Account, any financial asset credited thereto or any security entitlement in respect thereof.  Custodian shall use commercially reasonable efforts to notify the Counterparty and the Fund as soon as practicable if Custodian receives any notice of levy, lien, court order or other process purporting to affect the Collateral.

 

(7)           The Counterparty shall, on each Business Day, compute the aggregate net credit or debit balance under the Account Agreement, and advise the Fund by 11:00 A.M. New York time of the amount of the net debit or credit, as the case may be. If a net debit balance exists on such day, the Fund will cause, by the close of business on such day, an amount of Collateral to be deposited in the Special Custody Account to provide Adequate Performance Assurance related to such net debit balance; provided that, in the event that Counterparty advises the Fund of such net debit balance after 11:00 A.M., then such amount of Collateral shall be deposited in the Special Custody Account by the close of business on the following Business Day.  Counterparty will charge interest on debit balances in accordance with Counterparty’s policies as set forth in the Committed Facility Agreement (and to the extent such Committed Facility Agreement has been terminated or the commitment therein has expired, the Account Agreement) and Counterparty will not pay interest on credit balances.  Balances will be appropriately adjusted when extensions of credit are closed out.

(8)           The occurrence of any of the following constitutes a default by the Fund hereunder (a “Fund Default”):  (a) a Default (as defined in the Committed Facility Agreement), (b) an Event of Default (as defined in the Account Agreement), or (c) Fund’s Insolvency.  Upon Counterparty’s determination that a Fund Default has occurred, if Counterparty wishes to declare such default, Counterparty shall notify the Fund in an Advice from Counterparty of such Fund Default.  After transmittal by Counterparty of such Advice from Counterparty, if such Fund Default is then continuing, Counterparty may thereupon take Default Action or any other action permitted pursuant to the 40 Act Financing Agreements, including without limitation, the conversion of any convertible securities or exercise of Fund’s rights in warrants (if any) held in the Account and the Special Custody Account, the buy-in of any securities of which the Account may be short, and the sale of any or all property or securities in the Account and the Special Custody Account to the extent necessary to satisfy Fund’s obligations to Counterparty (in which event such Collateral shall be delivered to Counterparty as directed in an Advice from Counterparty). Any sale of Collateral made hereunder shall be made in accordance with the provisions of the New York Uniform Commercial Code (including, without limitation section 9-610(b) of the New York Uniform Commercial Code). Fund shall be liable to Counterparty for any deficiency which may exist after the exercise by Counterparty of its rights and remedies as aforesaid. Any surplus resulting from the sale of Collateral shall be transmitted to Custodian.  Counterparty shall notify Fund of any deficiency remaining thereafter in an Advice from Counterparty.  Any such sale of Collateral held in the Special Custody Account shall be made only after such Collateral has been withdrawn from the Special Custody Account by Counterparty.

 

  

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(9)           The Counterparty hereby covenants, for the benefit of the Fund, that the Counterparty will not instruct Custodian pursuant to an Advice from Counterparty to deliver Collateral free of payment with respect to any sale of Collateral pursuant to paragraph 8 until after the occurrence of the events set forth in paragraph 8.  The foregoing covenant is for the benefit of the Fund only and shall in no way be deemed to constitute a limitation on Custodian’s obligation to act upon instructions pursuant to an Advice from Counterparty and Custodian’s obligation to act upon such instructions, which instructions, for the avoidance of doubt, may include directions to deliver Collateral to Counterparty other than pursuant to paragraph 8 (including for other permissible uses under the Committed Facility Agreement and Account Agreement). Custodian shall not be required to make any determination as to whether such delivery is made in accordance with any provisions of this Agreement or any other agreement between the Counterparty and the Fund.  Custodian will, however, provide prompt telephone notice to an officer of the Fund of receipt by Custodian of an Advice from Counterparty to deliver Collateral.

(10)           Reserved.

(11)           Custodian’s duties and responsibilities are set forth in this Agreement.  Custodian shall act only upon receipt of an Advice from Counterparty regarding release of Collateral, except as required by applicable law.  Custodian shall not be liable or responsible for anything done, or omitted to be done by it in good faith and in the absence of negligence and may rely and shall be protected in acting upon any Advice from Counterparty which it reasonably believes to be genuine and authorized.  As between the Fund and Custodian, the terms of the Custody Agreement shall apply with respect to any losses or liabilities of such parties arising out of matters covered by this Agreement; for the avoidance of doubt, each Advice from Counterparty shall be considered a “Proper Instruction” under the Custody Agreement and as such is subject to the terms of the Custody Agreement and, in particular, the Fund’s indemnity of the Custodian thereunder. 

 

As between Custodian and Counterparty, Counterparty shall indemnify and hold Custodian harmless from and against any losses or liabilities (including reasonable legal fees) imposed on or incurred by Custodian subsequent to the taking of any action, or arising out of any omission, of Custodian in compliance with any Advice from Counterparty, except to the extent that any such loss or liability (i) results from Custodian’s negligence, fraud, recklessness, willful misconduct or bad faith; or (ii) represents special, consequential, punitive, exemplary or incidental damages. In matters concerning or relating to this Agreement, Custodian shall not be liable for the acts or omissions of any of the other parties to this Agreement.  In matters concerning or relating to this Agreement, Custodian shall not be responsible for compliance with any statute or regulation regarding the establishment or maintenance of margin credit, including but not limited to Regulations T or X of the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency or the U.S. Securities and Exchange Commission. Custodian shall have no duty to require any cash or securities to be delivered to it or to determine that the amount and form of assets deposited in the Special Custody Account comply with any applicable requirements.  Custodian may hold the securities in the Special Custody Account in bearer, nominee, book-entry, or other form and in any depository or clearing corporation (including omnibus accounts), with or without indicating that the securities are held hereunder; provided, however, that all securities held in the Special Custody Account shall be identified on Custodian’s records as subject to this Agreement and shall be in a form that permits transfer at the direction of Counterparty without additional authorization or consent of the Fund.

Neither Counterparty nor Custodian shall be responsible or liable for any losses resulting from nationalization, expropriation, devaluation, seizure, or similar action by any governmental authority, de facto or de jure; or enactment, promulgation, imposition or enforcement by any such governmental authority of currency restrictions, exchange controls, levies or other charges affecting the property in the Special Custody Account; acts of war, terrorism, insurrection or revolution; or acts of God; or any other similar event beyond the control of such party or its agents (any such event, a “Force Majeure Event”); provided, that, as between the Fund and Counterparty, should any Force Majeure Event occur with respect to Custodian and such event (a) prevents or would prevent Custodian from releasing the Collateral to Counterparty upon an Advice from Counterparty directing such release or (b) would inhibit Counterparty’s ability to monitor the amount of Collateral in the Special Custody Account (each of (a) and (b), a “Custodian Failure Event”), then during the period from the day on which the Force Majeure Event begins (the “Force Majeure Event Day”) up to the day on which the relevant Custodian Failure Event is no longer occurring, for purposes of determining whether Fund has met its obligation to provide and maintain Adequate Performance Assurance under this Agreement or to meet the Collateral Requirements (as defined in the Committed Facility Agreement), Counterparty shall take account only of the Collateral that was in the Special Custody Account on the Business Day immediately prior to the Force Majeure Event Day.  In no event shall any party to this Agreement be liable for indirect, special, or consequential damages even if advised of the possibility or likelihood thereof. This paragraph shall survive the termination of this Agreement.

     

  

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(12)           All charges for Custodian’s services under this Agreement shall be paid by the Fund.

(13)           The Counterparty shall not be liable for any losses, costs, damages, liabilities or expenses suffered or incurred by the Fund as a result of any transaction executed hereunder, or any other action taken or not taken by the Counterparty hereunder for the Fund’s account at Fund’s direction or otherwise, except to the extent that such loss, cost, damage, liability or expense is the result of the Counterparty’s gross negligence, willful misconduct or fraud.

(14)           No amendment of this Agreement shall be effective unless in writing and signed by an authorized officer of each of the Counterparty, the Fund and Custodian.

(15)           Written communications hereunder, other than an Advice from Counterparty,

shall be sent by facsimile-sending device or telegraphed when required herein, hand delivered or mailed first class postage prepaid, except that written notice of termination shall be sent by certified mail, in any such case addressed:

 

	
 (a)           if to Custodian, to:      

	State Street Bank and Trust Company 

John Hancock Tower

200 Clarendon Street

                    

	
 

	Boston, MA 02116 

Attn:    Paul Woods, Senior Vice President

Telephone:  617-662-6289

Telecopy:   617-937-3338

 

	
 (b)           if to the Fund, to:    

	
Corporate Capital Trust, Inc.

c/o CNL Fund Advisors Company

CNL Center at City Commons

450 S. Orange Avenue

Orlando, FL  32801

Attention: General Counsel and Chief Financial Officer

Telephone: (866) 745-3797

Facsimile:  (407) 540-7653

 

	
(c)           if to the Counterparty, to:

	

BNP Paribas Prime Brokerage, Inc.787 Seventh Avenue

New York, NY 10019

Attention:Tomer Seifan

Fax No.:201-850-4602

Phone No.:212-471-6565

Attention:Alex Bergelson

Fax No.:201-850-4601

Phone No.:212-471-6533

 

  

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BNP Paribas Prime Brokerage, Inc.

525 Washington Boulevard

Jersey City, NJ  07310

Attn: David Koppel

Tel:  201-850-5391

Fax: 201-850-4618

 

	
  

	
Copies of Custodian’s confirmations, statements and advices issued pursuant to paragraph 3 should be sent to:

 

 

	
 

	
State Street Bank and Trust Company

John Hancock Tower

200 Clarendon Street

Boston, MA 02116

Attn:    Paul Woods, Senior Vice President

Telephone:  617-662-6289

Telecopy:   617-937-3338

 

(16)           Any of the parties hereto may terminate this Agreement by thirty (30) days’ prior written notice to the other parties hereto; provided, however, that the status of any Collateral pledged to the Counterparty at the time of such notice shall not be affected by such termination until the release of such pledge pursuant to the terms of the Account Agreement and any applicable Margin Rules.  Upon termination of this Agreement or the Custody Agreement, (a) all assets of the Fund held in the Special Custody Account shall be transferred to a successor custodian specified by the Fund and reasonably acceptable to Counterparty in its good faith discretion.

(17)           Nothing in this Agreement prohibits the Counterparty, the Fund or Custodian from entering into similar agreements with others in order to facilitate options or other derivatives transactions and as contemplated by the Committed Facility Agreement and Account Agreement.

 

(18)           Custodian has not entered into, and until the termination of this Agreement will not enter into, any agreement with any person (other than the Counterparty) relating to the Special Custody Account and/or any financial asset credited thereto pursuant to which it has agreed, or will agree, to comply with entitlement orders of such person.

(19)           If any provision or condition of this Agreement shall be held to be invalid or unenforceable by any court, or regulatory or self-regulatory agency or body, such invalidity or unenforceability shall attach only to such provision or condition.  The validity of the remaining provisions and conditions shall not be affected thereby and this Agreement shall be carried out as if any such invalid or unenforceable provision or condition were not contained herein.

(20)           All references herein to times of day shall mean the time in New York, New York, U.S.A.

(21)           This Agreement and its enforcement (including, without limitation, the establishment and maintenance of the Special Custody Account and all interests, duties and obligations related thereto) shall be governed by the laws of the State of New York without regard to its conflicts of law rules other than Title 14 of Article 5 of New York General Obligations Law.  This Agreement shall be binding on the parties and any successor organizations thereof irrespective of any change or changes in personnel thereof.  The parties to this Agreement hereby submit to the non-exclusive jurisdiction of the courts of New York, including any appellate courts thereof.  Any right to trial by jury with respect to any claim, action, proceeding or counterclaim or other legal action is hereby waived by all parties to this agreement.

 

  

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(22)           This Agreement may be signed in counterparts, all of which shall constitute but one and the same instrument.

(23)           For the avoidance of doubt, the Fund and Custodian agree that, except for the rights of control in favor of Counterparty agreed to herein, nothing herein shall amend the terms of the Custody Agreement.

(25)           Counterparty may, upon notice to the Fund and Custodian, assign its rights or any interest under this Agreement to BNP Paribas Prime Brokerage International, Ltd. or any other entity guaranteed by BNP Paribas, provided that such assignment shall not have any effect on the then current requirements imposed on Customer or the BNPP Entities in relation to the withholding or deduction of Taxes and Customer shall have received evidence thereto in the form of any relevant Internal Revenue Service Form W-9, W-8ECI or W-8BEN forms or otherwise.

[Remainder of Page Intentionally Left Blank]

 

  

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CORPORATE CAPITAL TRUST, INC.

 

	
By:  

	
/s/ Paul S. Saint Pierre

	 
	Name: 	 Paul S. Saint Pierre	 
	Title:	 Chief Financial Officer	 

 

BNP PARIBAS PRIME BROKERAGE, INC.

 

	
By:  

	
/s/ Raphael Masgaux

	 
	Name: 	Raphael Masgaux	 
	Title:	Managing Director	 

 

	
By:  

	
/s/ M. Andrews Yeo

	 
	Name: 	 M. Andrews Yeo	 
	Title:	Chief Executive Officer	 

 

STATE STREET BANK AND TRUST COMPANY

 

	
By:  

	
/s/ Michael F. Rogers 

	 
	Name: 	 Michael F. Rogers	 
	Title:	Executive Vice President	 

           

  

  

  

APPENDIX A

To

Special Custody and Pledge Agreement

AUTHORIZED PERSONS FOR BNP PARIBAS PRIME BROKERAGE, INC.

The undersigned hereby represents and warrants to the Fund and Custodian that each person specifically identified below has actual authority to act, and as such, is authorized and empowered for and on behalf of Counterparty to deliver Advices from Counterparty.

Daily Collateral Movements (e.g., approving releases)

 

	
Name

	
Telephone/Fax

	
Signature

 

	
1.

	Dave Koppel  	
Tel: 201-850-5391

Fax. 201-850-4618  

	
1.__________________________

 

	 	 	 	 
	
2.

	Vincent Gazzillo   	
Tel: 201-850-4163

Fax: 201-850-6594

	
2. _________________________

 

	 	 	 	 
	
3.

	Dean Anastos	
Tel: 201-850-5293

Fax: 201-850-6594

	
3.__________________________

 

	 	 	 	 
	
4.

	Jeff Hoffmann  	
Tel: 201-850-5376

 Fax: 201-850-6594

	
4.__________________________

 

	 	 	 	 
	
5.

	Thomas Anderson	
Tel: 201-850-4161

Fax: 201-850-6594

	
5.__________________________

 

	 	 	 	 
	
6.

	Cindy Yeung 	
Tel: 201-850-5480

Fax: 201-850-6594

	
6.__________________________

 

 

	Authorized by: 	 	 
	 	Name:	 
	 	Title:	 
	 	
Date:

	 

 

  

  

  

 

Appendix B

To

Special Custody and Pledge Agreement

AUTHORIZED PERSONS FOR CORPORATE CAPITAL TRUST, INC.

Custodian and Counterparty are directed to accept and act upon Instructions from Fund received from any one of the following persons at Corporate Capital Trust, Inc., acting as authorized by the Fund.

 

	
Name

	
Telephone/Fax

	
Signature

 

	
1.

	  	
1.__________________________

 

	
2.

	  	
2. _________________________

 

	
3.

	  	
3.__________________________

 

	
4.

	  	
4.__________________________

 

	
5.

	  	
5.__________________________

 

	
6.

	  	
6.__________________________

 

	
7.

	  	
7.__________________________

 

 

	Authorized by: 	 	 
	 	Name:	 
	 	Title:	 
	 	
Date:ex10.1

 Exhibit 10.1
 

 Agreement For Consulting Services
 

 This agreement (the “Agreement”) is entered into by and between Strikly Berry Consulting, LLC, 14980 Ferns Corner Rd., Monmouth, OR 97361, USA (hereafter “Consultant”), and Patriot Berry Farms, 121 SW Salmon St., Suite 1100, Portland, OR 97204 (hereafter “Company”) (the Company and Consultant each a “Party, and collectively the “Parties”).
 

 Whereas, Consultant has certain experiences and contacts pertaining to berry crop physiology and production systems.
 

 Whereas, Company wishes to engage the services of the Consultant as an advisor and technical resource.
 

 In consideration of the mutual promises and covenants hereinafter set forth, the Parties agree as follows:
 

 1.
 CONSULTING SERVICES
 

 Consultant shall act as an advisor by providing information and suggestions for improvement of production systems of berry crops, particularly blueberry (Vaccinium), and on farms or properties being considered for purchase by the Company.  
 

 The Consultant is required to make Bernadine Strik available to perform the consulting work for the Company.
 

 Consultant shall provide services to the Company up to 120 hours per the 6-month period, inclusive of travel, for work conducted “off site” (at consultant’s office, for example) or “on site” (at Company location, farms, or prospective farms). Travel “days” for Company site visits will be billed at a maximum of 8 hours regardless of travel time. Each day spent consulting at existing or potential Company farms will be considered 1.5 days (12 hours) unless otherwise agreed upon in advance. 
 

 Duties include serving as an independent advisor to the Company’s berry farm development program including, but not limited to: assessment of land or existing farms the Company is considering acquiring, assistance with evaluation of historical farm performance and production system advice including, but not limited to, pre-plant decision making, fertility, and pruning/training recommendations of berry crops in all of Company’s locations, outside of the State of Oregon, USA, as agreed upon by both Parties.
 

 All travel required of Consultant by Company must be arranged as much in advance as possible and per an agreed upon itinerary. Consultant will fly economy fare. Flights for an agreed-upon itinerary may be paid for by Consultant (and reimbursed by Company pursuant to Section 4(b) of this Agreement) or Company. Any frequent flier miles accrued remain property of Consultant.
 

  
 

 
 Company may not publically advertise, in any way, the relationship between Consultant and Company without prior review of the proposed information and written consent, except that Company may make any required disclosure required by applicable securities laws (for example, on Form 8-K).
 

 Consultant hereby agrees to:
 

 ·
 carry out and complete consulting services with due diligence and professionalism 
 ·
 carry out and complete the consulting services within timeframes mutually agreed upon between Consultant and the Company
 ·
 provide a written report following site visits to the Company’s farms or prospective farms, if requested [time to compile report(s) will be considered as part of the contract time restriction]. Other advice may be written or verbal.
 ·
 Consultant will maintain records on time worked for the Company and will provide updates monthly or as otherwise requested by Company.
 

 2.
 TERM OF AGREEMENT
 

 This Agreement shall commence on June 1, 2013 and shall terminate on November 30, 2013 (6 months). 
 

 Upon termination of the agreement, any affiliation between Consultant and Company advertised (e.g. in promotional materials, brochures, on the Company web site), must be removed immediately.
 

 Termination of this agreement may be initiated by either Party upon thirty (30) days prior written notice. Consultant shall be paid for all services performed prior to such termination, including any authorized services performed during the notice period.  
 

 Any notice or communication permitted or required regarding this Agreement shall be deemed effective when sent by e-mail (written acknowledgement of receipt required, by e-mail), by facsimile (if available) or personally delivered or sent by courier or first class mail properly addressed to the appropriate Party at the address set forth below (or to such address as each Party may provide from time to time): 
 

 1.
 Notices to Consultant: Attn: Bernadine Strik, Strikly Berry Consulting, 14980 Ferns Corner Rd., Monmouth, OR 97361, USA; strik29bernadine@msn.com
  
 2.
 Notices to the Company: Attn: Alex Houstoun-Boswall, President, Patriot Berry Farms, One World Trade Center, 121 SW Salmon Street, Suite 1100, Portland, OR 97204; alex@patriotberry.com; 
 

 With a copy to Befumo & Schaeffer, PLLC, 1629 k Street NW, Suite 300, Washington DC, 20006; Andrew@befumolaw.com
 

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 3.
 No Notice provided to the Company shall be effective unless and until such notice is provided to Befumo & Schaeffer, PLLC.
 

 

 3.
 TIME DEVOTED BY CONSULTANT
 

 It is anticipated that the Consultant shall spend as much time as deemed necessary by the Consultant in order to perform the obligations of the agreement and can provide estimates of time spent through the contract period, when requested. Time for consulting includes, but is not limited to, telephone calls, correspondence, emails, meetings, research, review and drafting of documents or reports, site visits, and travel.
 

 The Consultant agrees to consult for the Company up to 120 hours (defined in Section no. 1) per contract period in “off site” or “on site” (Company) locations. 
  
 The timing for provision of services or activities related to this Agreement will be mutually agreed by Consultant and the Company.
 

 The terms of any consultancy services provided in excess of the 120 hours will be subject to further negotiation between the Consultant and the Company.
 

 4.
 PAYMENT FOR SERVICES
 

 (a)
 Fees:
 

 In consideration for the Consulting Services to be performed by Consultant under this Agreement, the Company will pay Consultant at the flat rate of US$3,000 per month for time spent on Consulting Services (total of $18,000 per contract period). This rate includes all aforementioned consulting services.   
 

 Billing will be set up as monthly “salary” compensation via direct bank wire transfer as follows:
 

 Washington Federal Savings
 1111 A NW Ninth Street
 Corvallis, OR 97330, USA
 

 Attn: Strikly Berry Consulting, LLC
 Routing number: XXXXXXXXXX
 Account number: XXXXXXXXXX 
 

 The Company will not be sent an invoice for the monthly salary compensation. Payment will be due in the above bank account on the last day of each month during the six (6) month contract period. Any fees incurred for cost of wire transfer at the Company bank must be paid for by
 

 

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 Company. Any fees incurred for wire transfer in Consultant’s account are responsibility of Consultant.
 

 In addition, the Company agrees to provide Consultant with 50,000 shares of restricted stock in the Company (the “Shares”). 
 

 The Consultant understands that the Shares have not been registered under the Securities Act of 1933 (the “Securities Act”) or any state securities laws and are being transferred to the Consultant in reliance upon specific exemptions from the registration requirements of federal and state securities laws.  Consultant covenants and agrees that it shall not transfer any of the Shares in a transaction that is not registered under the Securities Act, unless an exemption from registration and qualification requirements is available under the Securities Act and applicable state securities laws and the Company has received an opinion of counsel satisfactory to it stating that such registration and qualification is not required.  Consultant understands that certificates representing the Shares will be endorsed with the following legend, together with any other legends reasonably required by counsel for the Company:
 

 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT.  SUCH SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.  HEDGING TRANSACTIONS INVOLVING SUCH SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”
 

 (b)
 Expenses:
 

 Additionally, the Company will pay Consultant for the following expenses incurred while the Agreement between the Consultant and the Company exists: all travel expenses to and from Consultant’s place of work (Monmouth, Oregon) to the Company farm(s) as requested for on-site visit(s) including: miscellaneous travel expenses (flight(s); parking, tolls, rental car, if required by Company, etc.) and meal and lodging expenses. In addition, Company will be billed for any telephone charges, courier fees and any other costs/purchases required at Company’s request (such purchases will be pre-approved by Company via e-mail). Consultant will provide an invoice and receipts for all reimbursable expenses with payment due in the month following presentation of receipts.  No expenses shall be reimbursed to Consultant unless receipts for such expenses are presented to the Company within sixty (60) days of the date in which such expenses are incurred.
 

 INDEPENDENT CONTRACTOR
 

 Consultant is an independent company and does not represent Oregon State University.
 

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 Consultant shall perform all Services hereunder as an independent contractor, and nothing contained herein shall be deemed to create any partnership, association, joint venture or relationship of principal and agent or employer and employee between the Parties hereto or any affiliates or subsidiaries thereof, or to provide either Party with the right, power or authority, whether express or implied, to create any such duty or obligation on behalf of the other Party.
 

 Consultant also agrees not to be treated, or seek to be treated, as an employee of the Company for any purpose, including for the purpose of fringe benefits provided by the Company, or for disability income, or Social Security taxes and benefits, Federal unemployment compensation taxes, State unemployment insurance benefits, and Federal income tax withholding. Consultant hereby represents that Consultant has and at all times will maintain timely payments of all taxes due to the Internal Revenue Service and all other government agencies, including withholding and all other taxes in the USA.
 

 Company shall not be responsible for any federal, state, or local taxes based on Consultant’s income.
 

 5.
 PROPRIETARY OR CONFIDENTIAL INFORMATION
 

 In the course of performing consulting services, the Parties recognize that Consultant may come in contact with or become familiar with information which the Company or its subsidiaries or affiliates may consider confidential. This information may include, but is not limited to, information pertaining to the Company’s production systems, discoveries, inventions, and marketing, and financial information which may be of value to a competitor. It is hereby agreed that the Company may designate certain or all disclosed information as confidential for purposes of this Agreement. Consultant agrees to keep all such information confidential and not to discuss or divulge it to anyone other than appropriate Company personnel or their designees. 
 

 Confidential Information does not include: information which becomes generally available to the public other than as a result of a disclosure by the Consultant; information which is generally known to knowledgeable business people involved in the business conducted by the Company other than as a result of a disclosure by the Consultant in violation of this part; information that was available to the Consultant on a non-confidential basis prior to its disclosure to the Consultant by the Company; or information that becomes available to the Consultant on a non-confidential basis from a person or entity other than the Company, unless such disclosure by that person is itself in breach of a confidentiality commitment made directly or indirectly to the Company
 

 If Consultant is required to disclose the confidential information in response to a valid order by a court or other government body, or as otherwise required by law or as necessary to establish the rights of either Party under this Agreement, Consultant agrees to provide the Company with prompt written notice so as to provide the Company with a reasonable opportunity to protect such confidential information.
 

 

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 The Parties acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Section 5 of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Company shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Section 5 of this Agreement, and to enforce specifically the terms and provisions hereof (without the necessity of showing economic loss and without any bond or other security being required), this being in addition to any other remedy to which either Party may be entitled by law or in equity.
 

 6.
 LIMITATIONS OF LIABILITY
 

 Except for claims arising out of the gross negligence or intentional malfeasance of either Party, neither Party shall have liability for any claim relating to this Agreement in excess of the salary compensation paid to the Consultant during the contract period. 
 

 7.
 AGREEMENT
 

 This Agreement contains the complete agreement concerning the subject matter herein, and supersedes all other agreements between the Parties. The Parties stipulate that neither has made any representations with respect to the subject matter of this Agreement or any representation, including the execution and delivery hereof, except such representations as are specifically set forth herein, and each of the Parties hereto acknowledges that he or it has relied on his or its own judgment in entering into this Agreement.  The Parties hereto further acknowledge that any statement or representation that may have been made by either Party to the other are of no effect and that neither Party has relied thereon in connection with his or its dealings with the other.
 

 8.
 Governing Law 
 

 This Agreement shall be construed in accordance with the laws of the State of Oregon, USA.
 

 9.
 Mandatory Binding Arbitration  
 

 Any controversy or claim arising out of or relating to this Agreement, or the alleged breach thereof, or relating to Consultant's activities or remuneration under this Agreement, shall be settled solely by binding arbitration in Portland, Oregon, in accordance with the applicable rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator(s) shall be binding on the Parties and may be entered in any court having appropriate jurisdiction.  Each Party hereby surrenders any right it may have to trial by jury.  The Parties shall equally bear the cost of Arbitration, unless, in the sole discretion of the Arbitrator(s), the cost shall be borne unequally.
 

 10.
 Signatures 
 

 Each Party represents that the person signing this Agreement has full authority to sign and bind each Party for whom the person is signing.
 

 

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 11.
 Severability  
 

 The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision or any enforceable part of a provision of this Agreement.
 

 12.
 Captions and Headings  
 

 The captions and headings in this Agreement are for reference and navigation purposes only, and shall not operate as a waiver of any provision of this Agreement.
 

 13.
 Waiver  
 

 Failure to enforce any provision of this Agreement shall not operate as a waiver of any such provision or of any other provision in this Agreement.
 

 14.
 Time is of the Essence  
 

 Time is of the essence in the performance of the provisions, covenants and restrictions of this Agreement.
 

 15.
 Counterparts  
 

 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first set forth below.
 

 	 	
	 COMPANY
	 CONSULTANT

	 By:  /s/ Alex Houstoun-Boswall 
	 By:  /s/ Bernadine C. Strik

	 Print Name: Alex Houstoun-Boswall
	 Print Name:   Bernadine C. Strik

	 Title: President
 

 Date: June 10, 2013
	 Title: Sole Proprietor
 

 Date: June 11, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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