Document:

EX-10.2

 Exhibit 10.2 

AMENDED AND RESTATED 

CHANGE IN CONTROL SEVERANCE AGREEMENT 

This Amended and Restated Change in Control Severance Agreement (the “Agreement”) is made as of June 26, 2017, by and between Cempra,
Inc., a Delaware corporation with its principal executive offices at 6320 Quadrangle Drive, Suite 360, Chapel Hill, NC 27517 (the “Company”), and
                     (the “Employee”), residing at
                                . 

W I T N E S S E T H: 

WHEREAS, the Company presently employs Employee as its
                                ; and 

WHEREAS, the Company and Employee previously entered into a Change in Control Severance Agreement dated
                    , 201     (the “Original Agreement”); and 

WHEREAS, the Company and Employee desire to amend and restate the Original Agreement with regard to the consideration to be paid to Employee
if his employment is terminated under certain circumstances, including a termination under certain circumstances following a “Change in Control” of the Company as defined herein; and 

WHEREAS, the Company wishes to protect its investment in its business, employees, customer relationships, and confidential information, by
requiring Employee to abide by certain restrictive covenants regarding competition and other matters, each of which is an inducement to the Company to provide Employee with the benefits described in this Agreement; and 

NOW, THEREFORE, in consideration of the foregoing, the mutual promises herein contained, and other good and valuable consideration, including
the continued employment of Employee by the Company and the compensation received by Employee from the Company from time to time, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows: 
 1. Definitions. For the purposes of the Agreement, the following terms shall be defined as set out below: 

(a) “Base Salary” shall mean Employee’s then current annual base salary; provided that for purposes of
Section 2(b), 2(c) and 2(d), Base Salary shall be calculated without giving effect to any reduction therein constituting Good Reason or which is effected on or following a Change in Control. 

(b) “Board” means the Company’s Board of Directors. 

(c) “Effective Date” shall mean the date first written above. 

  
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 (d) A “Change In Control” shall be deemed to have occurred upon (i) the
consummation of a merger, consolidation or similar transaction in which the stockholders of the Company immediately prior to the merger or consolidation cease to own, directly or indirectly, at least 50% of either (A) the then-outstanding
common stock of the combined entity or (B) the combined voting power of the then-outstanding securities entitled to vote in the election of directors of the combined entity, in either case immediately following the merger, consolidation or
similar transaction; (ii) the consummation of a sale of all or substantially all of the assets of the Company; (iii) the acquisition (other than pursuant to a merger, consolidation or similar transaction described in clause (i) above)
by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of direct or indirect beneficial ownership of any capital stock of the Company, if, after such
acquisition, such individual, entity or group owns more than 50% of either (A) the then-outstanding common stock of the Company or (B) the combined voting power of the then-outstanding securities of the Company entitled to vote in the
election of directors; (iv) individuals, who on the Effective Date are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board, provided, however,
that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of the Plan, be
considered as a member of the Incumbent Board; or (v) the liquidation or dissolution of the Company. 
 (e) “Cause”
shall be determined by a majority of the Board (excluding Employee if a Board member) and shall mean: 
 (i) The willful failure, disregard
or refusal by Employee to materially perform his duties as an employee of the Company; 
 (ii) Any willful, intentional or grossly
negligent act by Employee having the effect of injuring, in a material way (whether financial or otherwise), the business or reputation of the Company or any of its affiliates; 

(iii) Willful misconduct by Employee in respect of the duties or obligations of Employee, including, without limitation, insubordination with
respect to lawful directions received by Employee from the Company or the Board; 
 (iv) Employee’s conviction of any felony
(including entry of a nolo contendere or no contest plea); 
 (v) The determination by the Company, after a reasonable and good-faith
investigation by the Company following a written allegation by another employee of the Company, that Employee personally engaged in some form of discrimination, harassment or retaliatory conduct prohibited by law (including, without limitation,
discrimination based on race, color, religion, sex, national origin, age, disability or other status protected by law); 
 (vi) Any
violation of the Company’s Code of Conduct (as it may be modified from time to time) or Insider Trading Policy or other similar policies that materially injures, or in the determination of the Board, can reasonably be expected to injure in a
material way (whether financial or otherwise), the business or reputation of the Company or any of its affiliates that, if capable of being cured, is not cured by Employee within thirty (30) days after notice thereof is given to Employee by the
Company; 

  
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 (vii) Any misappropriation or embezzlement of the property of the Company or its affiliates
(whether or not a misdemeanor or felony); 
 (viii) Breach by Employee of the Confidentiality and Assignment of Inventions Agreement
entered into by and between Employee and the Company prior to the date hereof (the “Confidentiality and Assignment of Inventions Agreement”), that, if capable of being cured, is not cured by Employee within thirty (30) days
after notice thereof is given to Employee by the Company; or 
 (ix) Breach by Employee of any provision of this Agreement other than those
contained in the Confidentiality and Assignment of Inventions Agreement, that, if capable of being cured, is not cured by Employee within thirty (30) days after notice thereof is given to Employee by the Company. 

(f) The “Code” means the Internal Revenue Code of 1986, as amended. 

(g) “Good Reason” shall mean any of the following: (i) the assignment to Employee of duties materially inconsistent with
Employee’s position, duties, responsibilities or title as described herein; (ii) material reduction by the Company of Employee’s duties and responsibilities; (iii) any reduction or series of reductions in excess of ten percent
(10%) by the Company of Employee’s Base Salary or target bonus payable hereunder (it being understood that a reduction of benefits applicable to all employees of the Company, including Employee, shall not be deemed a reduction of
Employee’s compensation package for purposes of this definition); or (iv) a change of more than thirty-five (35) miles in the geographic location at which Employee must perform services for the Company. Notwithstanding the foregoing,
Employee shall not have Good Reason for termination unless Employee gives written notice of termination for Good Reason within thirty (30) days after the event giving rise to Good Reason occurs, and the Company does not correct the action or
failure to act that constitutes the grounds for Good Reason, as set forth in Employee’s notice of termination, within thirty (30) days after the date on which Employee gives written notice of termination. 

(h) “Disability” shall mean that Employee has been unable to substantially perform the essential job duties of his position
hereunder with or without a reasonable accommodation for ninety (90) or more consecutive days, or more than one hundred twenty (120) days in any consecutive twelve (12) month period, by reason of any physical or mental illness or
injury, as determined by the Board in its reasonable discretion. 
 (i) “Restricted Period” shall mean a period of twelve
(12) months following a termination or cessation of Employee’s employment with the Company by either party for any reason whatsoever, unless such termination of employment is under the circumstances described in Section 2(c), in which
case the Restricted Period shall be eighteen (18) months following the termination or cessation of Employee?s employment with the Company. The Restricted Period will be tolled and will not run during any time Employee is in violation of Section 6 of
this 

  
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Agreement or while litigation with respect to any violation is pending, it being the intent of the parties that the Restricted Period will be extended for any period of time in which Employee is
in violation of Section 6, and any period during which litigation is pending relating to such breach. 
 (j) The
“Term” of this Agreement shall mean an initial period of five (5) years following the Effective Date, plus successive one (1) year renewal periods thereafter so long as the Company does not provide Employee with written
notice of its intention not to renew this Agreement at least ninety (90) days prior to the expiration of the initial five (5) year period or any additional one (1) year renewal period ; provided, however, that if a Change in Control
shall have occurred during the Term, the Term shall expire on the last day of the twelfth (12th) month following the month in which such Change in Control occurred. 

(k) “Termination Date” shall mean the effective date of Employee’s termination of employment with the Company. 

(l) “Effective Release” is defined as a general release of claims in favor of the Company in a form reasonably acceptable to
the Company’s counsel that is executed by Employee after the Termination Date and within any consideration period required by applicable law and that is not revoked by Employee within any legally prescribed revocation period. 

2. Compensation upon Termination. 

(a) Upon termination of employment by either party for any reason whatsoever, Employee shall be entitled to continue to receive his Base
Salary, minus applicable withholdings required by law or authorized by Employee, and reimbursement of any accrued, unpaid and appropriately documented business expenses through the Termination Date. 

(b) If during the Term of this Agreement, Employee’s employment with the Company is terminated either by the Company without Cause (and
other than due to death or Disability) or by Employee for Good Reason (and not under the circumstances described in Section 2(c) or 2(d)), and (1) such termination results in Employee incurring a “separation from service” as
defined under Treasury Regulation 1.409A-1(h); (2) Employee has not breached this Agreement or the Confidentiality and Assignment of Inventions Agreement; and (3) conditioned upon Employee’s execution of an Effective Release, Employee
shall be entitled to, in lieu of any other separation payment or severance benefit: 
 (i) Payment of an amount equal to twelve
(12) months of his Base Salary, minus applicable withholdings required by law or authorized by Employee, to be paid ratably over a twelve (12) month period pursuant to the Company’s standard payroll practices and procedures, beginning
on the Company’s next regular pay day occurring sixty (60) days following the Termination Date; 
 (ii) Payment in a lump sum, on
the Company’s next regular pay day occurring sixty (60) days following the Termination Date, of a pro rata bonus based upon Employee’s target bonus amount for the year in which the Termination Date occurs, pro-rated for the portion of
the calendar year through the Termination Date; 

  
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 (iii) At the Board’s discretion, (A) accelerated vesting of all or a portion of
Employee’s equity grants from the Company, which accelerated vested grants shall become immediately and fully exercisable, subject to all other terms of the applicable equity plan and award agreement, and/or (B) an extension of the
exercise period for any of Employee’s options that have vested prior to the Termination Date through the date that is twelve (12) months following the Termination Date, but in no event beyond the original expiration date of the each
affected option, provided that Employee shall be solely responsible for any tax consequences resulting from any extended exercise period, including without limitation, any failure of any such options to qualify as incentive stock options under
Section 422 of the Code; and 
 (iv) Conditioned on Employee’s proper and timely election to continue his health insurance
benefits under COBRA after the Termination Date, payment of Employee’s applicable COBRA premiums for the lesser of twelve (12) months following the Termination Date or until Employee becomes eligible for insurance benefits from another
employer, provided, however, that the Company has the right to terminate such payment of COBRA premium reimbursement to Employee and instead pay Employee a lump sum amount equal to the applicable COBRA premium multiplied by the number of months
remaining in the specified period if the Company determines in its discretion that continued payment of the COBRA premiums is or may be discriminatory under Section 105(h) of the Code. 

(c) If during the Term of this Agreement, (1) a Change in Control occurs within twelve (12) months after the Effective Date; and
(2) Employee’s employment with the Company is terminated within twelve (12) months after such Change in Control either by the Company without Cause (and other than due to death or Disability) or by Employee for Good Reason; and
(3) such termination results in Employee incurring a “separation from service” as defined under Treasury Regulation 1.409A-1(h); and (4) Employee has not breached this Agreement or the Confidentiality and Assignment of Inventions
Agreement; and (5) conditioned upon Employee’s execution of an Effective Release, then Employee shall be entitled to, in lieu of any other separation payment or severance benefit: 

(i) Payment of an amount equal to eighteen (18) months of his Base Salary, minus applicable withholdings required by law or authorized
by Employee, to be paid ratably over a eighteen (18) month period pursuant to the Company’s standard payroll practices and procedures, beginning on the Company’s next regular pay day occurring sixty (60) days following the
Termination Date; 
 (ii) Payment in a lump sum, on the Company’s next regular pay day occurring sixty (60) days following the
Termination Date, an amount equal to one and one half (1  1⁄2) times Employee’s target bonus for the year in which the Termination Date occurs (which
target shall be determined without giving effect to any reductions in target bonus effected following or in contemplation of a Change in Control); 

  
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 (iii) Accelerated vesting of all outstanding and unvested stock options and other equity in the
Company held by Employee, which shall become immediately and fully exercisable, subject to all other terms of the applicable equity plan and award agreement; 

(iv) Conditioned on Employee’s proper and timely election to continue his health insurance benefits under COBRA after the Termination
Date, payment of Employee’s applicable COBRA premiums for the lesser of eighteen (18) months following the Termination Date or until Employee becomes eligible for insurance benefits from another employer, provided, however, that the
Company has the right to terminate such payment of COBRA premium reimbursement to Employee and instead pay Employee a lump sum amount equal to the applicable COBRA premium multiplied by the number of months remaining in the specified period if the
Company determines in its discretion that continued payment of the COBRA premiums is or may be discriminatory under Section 105(h) of the Code; 

(v) Outplacement assistance through a service provider selected by the Company for a period of eighteen (18) months; and 

(vi) The exercise period for any of Employee’s options that have vested prior to the Termination Date, or pursuant to
Section 2(c)(iii) above, will be extended through the date that is twelve (12) months following the Termination Date, but in no event beyond the original expiration date of the each affected option. Employee shall be solely responsible for
any tax consequences resulting from the extended exercise period, including without limitation, any failure of any such options to qualify as incentive stock options under Section 422 of the Code. 

(d) If during the Term of this Agreement, (1) a Change in Control occurs more than twelve (12) months after the Effective Date; and
(2) Employee’s employment with the Company is terminated within twelve (12) months after such Change in Control, either by the Company without Cause (and other than due to death or Disability) or by Employee for Good Reason; and
(3) such termination results in Employee incurring a “separation from service” as defined under Treasury Regulation 1.409A-1(h); and (4) Employee has not breached this Agreement or the Confidentiality and Assignment of Inventions
Agreement; and (5) conditioned upon Employee’s execution of an Effective Release, then Employee shall be entitled to, in lieu of any other separation payment or severance benefit: 

(i) Payment of an amount equal to twelve (12) months of his Base Salary, minus applicable withholdings required by law or authorized by
Employee, to be paid ratably over a twelve (12) month period pursuant to the Company’s standard payroll practices and procedures, beginning on the Company’s next regular pay day occurring sixty (60) days following the Termination
Date; 
 (ii) Payment in a lump sum, on the Company’s next regular pay day occurring sixty (60) days following the Termination
Date, an amount equal to Employee’s target bonus for the year in which the Termination Date occurs (which target shall be determined without giving effect to any reductions in target bonus effected following or in contemplation of a Change in
Control); 

  
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 (iii) Accelerated vesting of all outstanding and unvested stock options and other equity in the
Company held by Employee, which shall become immediately and fully exercisable, subject to all other terms of the applicable equity plan and award agreement; 

(iv) Conditioned on Employee’s proper and timely election to continue his health insurance benefits under COBRA after the Termination
Date, payment of Employee’s applicable COBRA premiums for the lesser of twelve (12) months following the Termination Date or until Employee becomes eligible for insurance benefits from another employer, provided, however, that the Company
has the right to terminate such payment of COBRA premium reimbursement to Employee and instead pay Employee a lump sum amount equal to the applicable COBRA premium multiplied by the number of months remaining in the specified period if the Company
determines in its discretion that continued payment of the COBRA premiums is or may be discriminatory under Section 105(h) of the Code; and 

(v) Outplacement assistance through a service provider selected by the Company for a period of twelve (12) months; and 

(vi) The exercise period for any of Employee’s options that have vested prior to the Termination Date, or pursuant to
Section 2(d)(iii) above, will be extended through the date that is twelve (12) months following the Termination Date, but in no event beyond the original expiration date of the each affected option. Employee shall be solely responsible for
any tax consequences resulting from the extended exercise period, including without limitation, any failure of any such options to qualify as incentive stock options under Section 422 of the Code. 

(e) Upon termination of Employee’s employment (i) as a result of Employee’s death or Disability, (ii) by the Company for
Cause, (iii) by Employee without Good Reason, or (iv) for any reason following the Term of this Agreement, Employee shall not be entitled to additional compensation under this Agreement beyond that accrued as of the Termination Date. 

3. Section 409A. 

(a) The parties hereby acknowledge and agree that all benefits or payments provided by the Company to Employee pursuant to this Agreement are
intended either to be exempt from the provisions of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively, “Section 409A”), or to be in compliance with
Section 409A, and the Agreement shall be interpreted to the greatest extent possible to be so exempt or in compliance. If there is an ambiguity in the language of the Agreement, or if Section 409A guidance indicates that a change to the
Agreement is required or desirable to achieve exemption or compliance with Section 409A, Company and Employee agree to attempt to renegotiate in good faith to clarify the ambiguity or make such change. 

(b) If any severance or other payments that are required by the Agreement are to be paid in a series of installment payments, each individual
payment in the series shall be considered a separate payment for purposes of Section 409A. 

  
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 (c) If any severance compensation or other benefit provided to Employee pursuant to this
Agreement that constitutes “nonqualified deferred compensation” within the meaning of Section 409A is considered to be paid on account of “separation from service” within the meaning of Section 409A, and Employee is a
“specified employee” within the meaning of Section 409A, then to the extent required to avoid the imposition of taxation under Section 409A, no payments of any of such severance or other benefit shall made for six (6) months
plus one (1) day after the separation date (the “New Payment Date”). The aggregate of any such payments that would have otherwise been paid during the period between the separation date and the New Payment Date shall be paid to
the Employee in a lump sum on the New Payment Date. In the event that that period for the consideration of (and effectiveness of) the Effective Release spans two calendar years then, to the extent necessary to comply with Section 409A, payments
hereunder will not commence or be made until the latter calendar year. 
 4. Excess Parachute Payments. If any payments or benefits
received or to be received by Employee pursuant to this Agreement in connection with or contingent on a change in ownership or control are deemed to be an “excess parachute payment” within the meaning of Section 280G of the Code
(“Excess Parachute Payment”), and if the Company has no publicly traded stock, the Company will use commercially reasonable efforts to obtain “shareholder approval” within the meaning of Section 280G(b)(5) of the Code
of such payments or benefits in order to exempt such payments or benefits from being considered an Excess Parachute Payment. Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit received or to be received
by the Employee (including any payment or benefit received in connection with a Change in Control or the termination of the Employee’s employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all
such payments and benefits being hereinafter referred to as the “Total Payments”) would be subject (in whole or part) to the excise tax imposed pursuant to Section 4999 of the Code (the “Excise Tax”), then the Total Payments
shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax, but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and
local income taxes on such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total
Payments and the amount of Excise Tax to which the Employee would be subject in respect of such unreduced Total Payments). The Company shall bear the cost of all tax or other consultants retained to perform the calculations required in order to make
the determinations required under this Section 4. If a reduction in the Total Payments is required under this Section 4, the specific payments under this Agreement shall be reduced by the Company in its reasonable discretion following
consultation with Employee. 
 5. Employment at Will. Nothing herein is meant to alter the “at will” status of
Employee’s employment with the Company. Subject to the provisions of Section 2 above regarding payments in connection with a termination following a Change in Control, Employee’s employment with the Company may be terminated at any
time, for any or no cause or reason, by either Employee or by the Company. 
 6. Non-Competition, Non-Solicitation and
Non-Disparagement. 

  
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 (a) While Employee is employed by the Company and during the applicable Restricted Period,
Employee will not, directly on Employee’s own behalf or indirectly for or in conjunction with others: 
 (i) Within the Restricted
Territory (as defined in subsection (b) below), engage in any business or enterprise (whether as owner, partner, officer, director, employee, consultant, investor, lender or otherwise) that develops, manufactures, markets, licenses or sells any
pharmaceutical antibiotic products that compete with the products being sold or developed by the Company at the time of Employee’s termination (collectively, the “Competitive Products”) in any management or executive role in
which Employee would perform duties that are the same or substantially similar to those duties actually performed by Employee for the Company in the twelve (12) months immediately prior to the termination of Employee’s employment, or in
any position where Employee or such business or enterprise would benefit from Employee’s use or disclosure of the Company’s Proprietary Information as defined in the Confidentiality and Assignment of Inventions Agreement; 

(ii) Within the Restricted Territory, solicit or accept employment or be retained by an individual or entity who, at any time during the term
of this Agreement, was an agent, client, licensee, or customer of the Company, where Employee would have any management or executive role or be in any position (whether as an employee, contractor or consultant) in which Employee would perform duties
that are the same or substantially similar to those duties actually performed by Employee for the Company in the twelve (12) months immediately prior to the termination of Employee’s employment or in any position where Employee or such
individual or entity would benefit from Employee’s use or disclosure of the Company’s Proprietary Information as defined in the Confidentiality and Assignment of Inventions Agreement; 

(iii) Within the Restricted Territory, become financially interested in an enterprise that is engaged, as a substantial part of its
operations, in developing, manufacturing, marketing, licensing or selling the Competitive Products; provided, however, that nothing in this Agreement shall be construed to prevent Employee from owning less than five percent (5%) of the
outstanding voting securities of any entity whose voting securities are listed on a national securities exchange; 
 (iv) Solicit or accept
the business of any customer of the Company whom Employee solicited or serviced for the Company during the last twelve (12) months of Employee’s employment with the Company for the purpose of selling or providing Competitive Products to
such customer; and/or 
 (v) Solicit, induce or encourage any employee, consultant, or independent contractor of the Company to terminate
his or her employment or contracting relationship with the Company. 
 (b) For purposes of this Agreement, the “Restricted
Territory” means North America; but if such territory is determined to be overly broad, then the United States; and, if such territory is also determined to be overly broad, then each state or province in North

  
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America in which the Company engages in material business activities or sells or licenses its products. Provided, however, that it shall not be a violation of this Section 6 for Employee to
work outside of the Restricted Territory for any business or enterprise that develops, manufactures, markets, licenses or sells Competitive Products, so long as that business or enterprise does not manufacture, market, license or sell any
Competitive Products that compete with the Company’s products within the Restricted Territory. 
 (c) During Employee’s employment
with the Company and at all times thereafter, the Company and Employee each further agree that neither party shall directly or indirectly disparage or defame the name or reputation of the other party or any of its affiliates, including but not
limited to any officer, director, employee or shareholder of the Company or any of its affiliates ; provided that nothing herein shall prohibit truthful testimony compelled by law, it being agreed that the parties shall immediately notify each other
in the event that notice of any such compelled testimony is received. In addition, pursuant to 18 U.S.C. § 1833(b), Employee will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade
secret of the Company or an affiliate that (a) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to Employee’s attorney and (ii) solely for the purpose of reporting or
investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If Employee files a lawsuit for retaliation by the Company for reporting a suspected
violation of law, Employee may disclose the trade secret to Employee’s attorney and use the trade secret information in the court proceeding, if Employee (I) files any document containing the trade secret under seal, and (II) does not
disclose the trade secret, except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. 

(d) In the event of a breach or threatened breach of this Section 6 by Employee, then, in addition to any other rights which the Company
may have, (i) the Company will have the right to immediately terminate any remaining payment obligations to Employee pursuant to Sections 2(b), 2(c), and 2(d) above without any further obligation to Employee, and Employee will immediately repay
to the Company any amounts previously paid to Employee pursuant to Section 2(b), 2(c), and 2(d) above; (ii) the Company will be entitled to injunctive relief to enforce this Section 6 (and notwithstanding anything set forth in
Section 7(b) below, the Company may seek injunctive relief in any court of competent jurisdiction without waiving the right to arbitration under Section 7(b)); and (iii) the Company will have the right to require Employee to account
for and pay over to the Company all compensation, profits, monies, accruals, increments and other benefits (collectively, the “Benefits”) derived or received by Employee as a result of any transaction constituting a breach of any of
the provisions of Section 6, and Employee hereby agrees to account for and pay over such Benefits to the Company. Notwithstanding the foregoing, the sole remedy available to the Company with respect to a breach by Employee of (6)(a)(i),
(6)(a)(iii) or (6)(a)(iv) above that relates to Competitive Products other than a product or products in the fusidane or macrolide classes of products shall be termination effective as of the breach of any remaining payment obligations
pursuant to Sections 2(b), 2(c), and 2(d) of this Agreement. 

  
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 (e) Each of the rights and remedies enumerated in Section 6(d) shall be independent of the
others and shall be in addition to, and not in lieu of, any other rights and remedies available to the Company at law or in equity. If any of the covenants contained in this Section 6, or any part of any of them, is hereafter construed or
adjudicated to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants or rights or remedies which shall be given full effect without regard to the invalid portions. If any of the covenants contained in this
Section 6 is held to be invalid or unenforceable because of the duration of such provision or the area covered thereby, the parties agree that the court or arbitrator making such determination shall have the power to reduce the duration and/or
area of such provision and in its reduced form such provision shall then be enforceable. No such holding of invalidity or unenforceability in one jurisdiction shall bar or in any way affect the Company’s right to the relief provided in this
Section 6 or otherwise in the courts of any other state or jurisdiction within the geographical scope of such covenants as to breaches of such covenants in such other respective states or jurisdictions, such covenants being, for this purpose,
severable into diverse and independent covenants. 
 (f) The provisions of this Section 6 will survive any termination of this
Agreement and the termination of Employee’s employment with the Company. 
 7. Miscellaneous. 

(a) This Agreement is governed by and will be construed and interpreted in accordance with the laws of the State of North Carolina, without
reference to its conflict of laws principles. 
 (b) With the exception of actions by the Company to enforce its rights under Section 6
hereof, any dispute arising out of, or relating to, this Agreement or the breach thereof, or regarding the interpretation thereof, shall be finally settled by binding arbitration conducted in Raleigh, North Carolina and administered by the American
Arbitration Association (“AAA”) pursuant to its then-current Employment Arbitration Rules and Mediation Procedures (available at www.adr.org). The arbitration shall be conducted by a single experienced arbitrator or retired judge,
to be chosen via the AAA’s selection procedures. The arbitrator’s award shall be final and binding. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator may award
monetary damages and, in the arbitrator’s discretion, attorneys’ fees and/or costs to the prevailing party if allowed by statute. The arbitrator may not award punitive damages or any other type of exemplary damages unless such damages are
specifically authorized by statute. Any filing fees and the fees and costs of the arbitrator shall be paid equally by the Company and Employee. Each party shall pay the fees of his or its attorneys, the expenses of his or its witnesses, and any
other expenses that party incurs in connection with the arbitration. For the purpose of any judicial proceeding to enforce such award or incidental to such arbitration or to compel arbitration, the parties hereby submit to the sole and exclusive
jurisdiction of the state or federal courts sitting in Orange County, North Carolina, and agree that service of process in such arbitration or court proceedings shall be satisfactorily made upon it or him if sent by registered mail addressed to it
or him at the address referred to in Section 7(g) of this Agreement. 

  
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 (c) This Agreement shall be binding upon and inure to the benefit of the parties hereto, and
their respective heirs, legal representatives, successors and assigns. 
 (d) This Agreement, and Employee’s rights and obligations
hereunder, may not be assigned by Employee. The Company may assign its rights, together with its obligations, hereunder in connection with any sale, transfer or other disposition of all or substantially all of its business or assets, but no such
assignment shall release the Company of its obligations hereunder. 
 (e) This Agreement cannot be amended orally, or by any course of
conduct or dealing, but only by a written agreement signed by the parties hereto. 
 (f) The failure of either party to insist upon the
strict performance of any of the terms, conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment of future compliance therewith, and such terms, conditions and provisions shall remain in full force and effect.
No waiver of any term or condition of this Agreement on the part of either party shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such party. The Employee is not required to seek other employment or to
attempt in any way to reduce any amounts payable to the Employee by the Company. 
 (g) All notices, requests, consents and other
communications, required or permitted to be given hereunder, shall be in writing and shall be delivered personally or by an overnight courier service or sent by registered or certified mail, postage prepaid, return receipt requested, to the parties
at the addresses set forth on the first page of this Agreement, and shall be deemed given when so delivered personally or by overnight courier, or, if mailed, five (5) days after the date of deposit in the United States mail. Either party may
designate another address, for receipt of notices hereunder by giving notice to the other party in accordance with this paragraph (g). 

(h) This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof, and supersedes all
prior agreements, arrangements and understandings, written or oral, relating to the subject matter hereof, including but not limited to the Original Agreement. No representation, promise or inducement has been made by either party that is not
embodied in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement not so set forth. 

(i) As used in this Agreement, an “affiliate” of a specified person or entity shall mean and include any person or entity
controlling, controlled by or under common control with the specified person or entity. 
 (j) The section headings contained herein are for
reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 
 (k) This Agreement may be
executed in any number of counterparts, each of which shall constitute an original, but all of which together shall constitute one and the same instrument. 

  
 12 

 [Remainder of Page Intentionally Left Blank] 

  
 13 

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

			
	CEMPRA, INC.
		
	By:	 	  

	Name:	 	David S. Zaccardelli, Pharm.D
	Title:	 	Chief Executive Officer
	
	EMPLOYEE
		
	By:	 	  

	Name:	 	

 [Signature Page to Change in Control Severance Agreement]Exhibit 10.1

 

CITIGROUP GLOBAL MARKETS INC. 

388 Greenwich Street

New York, New York 10013

 

As of June 27, 2017

 

GOVERNMENT PROPERTIES INCOME TRUST

Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458-2076

	
Attention:
    	
Mark L. Kleifges
    
	
 
    	
Treasurer and Chief Financial   Officer
    

 

Government Properties Income Trust

$750,000,000 Senior Unsecured Bridge Loan

COMMITMENT LETTER

 

Ladies and Gentlemen:

 

Government Properties Income Trust, a Maryland real estate investment trust (the “Company” or “you”), has advised Citigroup Global Markets Inc. (“CGMI”), on behalf of Citi (as defined below) (together with any additional Lender which may become a Commitment Party after the date hereof pursuant to a joinder to this Commitment Letter, a “Commitment Party,” and collectively, the “Commitment Parties,” “we” or “us”) that, in connection with the Acquisition described below, the Company intends to obtain a $750,000,000 senior unsecured bridge loan (the “Facility”). In connection with the foregoing, CGMI, on behalf of Citi, is pleased to advise you of Citi’s commitment to provide the entire principal amount of the Facility (such commitment amount being $750,000,000), subject only to the conditions set forth in Section 1(c) of this Commitment Letter (this commitment letter, collectively with Annex I hereto, and as amended or otherwise modified from time to time, this “Commitment Letter”) and the section entitled “Conditions Precedent to Funding” contained in Annex I attached hereto. The commitments of the Commitment Parties hereunder are several and not joint. Citi is referred to herein as the “Initial Lender”.

 

Further, CGMI (in such capacity, the “Arranger”) is pleased to inform the Company of its agreement to act as sole lead arranger and sole bookrunner for the Facility, subject only to the conditions set forth in Section 1(c) of this Commitment Letter and the section entitled “Conditions Precedent to Funding” contained in Annex I attached hereto. In addition, CGMI is pleased to inform the Company of Citi’s agreement to act as sole administrative agent for the Facility (in such capacity, the “Administrative Agent”), subject to the terms and conditions of this Commitment Letter. For purposes of this Commitment Letter, “Citi” shall mean CGMI, Citibank, N.A., Citicorp USA, Inc., Citicorp North America, Inc. and/or any of their affiliates as Citi may determine to be appropriate to provide the services contemplated herein.

 

The Company has informed us that the Company intends to acquire (the “Acquisition”) 100% of the outstanding equity interests in First Potomac Realty Trust, a Maryland real estate investment trust (the “Target”). The Acquisition of the Target will be effected pursuant to (i) a merger of the Target’s subsidiary, First Potomac Realty Investment Limited Partnership (“FP LP”), with and into a newly formed subsidiary of the Company, with FP LP as the surviving entity, followed by a merger of the Target with and into a wholly-owned subsidiary of the Company, with such subsidiary being the surviving entity, or (ii) by means of a tender offer for all outstanding common shares of the Target. In addition to financing the Acquisition as described in the preceding sentence, the proceeds of the Facility will be used to pay costs and expenses incurred in connection with the Acquisition, the Facility and related transactions. Capitalized terms not defined herein shall have the meanings given thereto in Annex I.

 

Section 1. Engagement; Matters Related to Engagement; Conditions Precedent. (a) The Company hereby engages the Arranger, on an exclusive basis, to act as sole lead arranger and sole bookrunner in connection with the Facility. The parties agree that Citi will act as the sole administrative agent with respect to the Facility. Citi shall have “left” placement in any and all marketing materials or other documentation

 

 

used in connection with the Facility (and shall hold the leading role and responsibilities conventionally associated with such “left” placement).

 

(b)                                 The Company acknowledges that the Arranger has been engaged, in its capacity as such, solely to provide the services set forth in this Commitment Letter. In rendering such services, the Arranger shall act as an independent contractor, and any obligations of the Arranger arising out of its engagement hereunder shall be owed solely to the Company.

 

(c)                                  The obligations of the Arranger and its affiliates and each Commitment Party and its affiliates hereunder are several and not joint and are subject solely to satisfaction of the following conditions: (i) the negotiation, execution and delivery by the Borrower and the Guarantors (if any) of customary definitive documentation with respect to the Facility, based on documentation relating to the Existing Credit Facility, consistent with the terms and conditions of this Commitment Letter, with such changes as are described in Annex I and otherwise reasonably satisfactory to the Arranger and its counsel and each Commitment Party and its counsel, as applicable (as amended or otherwise modified from time to time, the “Operative Documents”); (ii) the payment in full of all fees, expenses and other amounts due and payable by the Borrower on or prior to the Closing Date (which fees and expenses shall have been invoiced at least two business days prior to being due and payable) under this Commitment Letter (which amounts may be offset against the proceeds of the Facility); (iii) the execution and delivery by the Company of this Commitment Letter; and (iv) the satisfaction of the other conditions precedent to the initial funding of the Facility contained in the section entitled “Conditions Precedent to Funding” in Annex I.

 

Notwithstanding anything in this Commitment Letter, the Fee Letter or any other letter agreement or other undertaking concerning the financing of the Acquisition to the contrary, (i) the only representations and warranties which shall be a condition to availability and funding of the Facility on the Closing Date shall be (A) such of the representations made by the Target or its affiliates in the Acquisition Agreement that are material to the interests of the Lenders, but only to the extent that you have the right to terminate your obligations under the Acquisition Agreement as a result of a breach of such representations in the Acquisition Agreement (the “Acquisition Agreement Representations”) and (B) the Specified Representations (as defined below) and (ii) the terms of the Operative Documents shall be in a form such that they do not impair availability of the Facility on the Closing Date if the conditions expressly set forth in Section 1(c) of this Commitment Letter and the conditions contained in the section entitled “Conditions Precedent to Funding” in Annex I are satisfied (it being acknowledged that delivery of guaranties (if any) to be provided by the Target and any subsidiary of the Target that is required to become a Guarantor shall be effected on the Closing Date substantially simultaneously with the consummation of the Acquisition). For purposes hereof, “Specified Representations” means the representations and warranties made by the Company and each Guarantor (if any) in the Operative Documents as to corporate status, corporate power and authority to enter into the Operative Documents; the due authorization, execution, delivery and enforceability of the Operative Documents; the Operative Documents not conflicting with charter documents of the Company and each Guarantor (if any) or law; solvency as of the Closing Date of the Company and its subsidiaries on a consolidated basis (in the manner consistent with Exhibit B attached to Annex I hereto); Federal Reserve margin regulations; use of proceeds of the Facility not violating anti-money laundering, anti-terrorism and anti-bribery laws, the Patriot Act or OFAC; and the Investment Company Act. This paragraph, and the provisions herein, shall be referred to as the “Certain Funds Provisions”.

 

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Each of the parties hereto agrees that this Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including an agreement to negotiate in good faith the Operative Documents by the parties hereto in a manner consistent with this Commitment Letter, it being understood and agreed that the commitments provided hereunder and the funding of the Facility on the Closing Date are subject solely to the conditions precedent set forth in Section 1(c) and the conditions precedent contained in the section entitled “Conditions Precedent to Funding” in Annex I. The parties hereto agree to use good faith efforts to negotiate and finalize the Operative Documents reasonably in advance of the anticipated Closing Date.

 

Section 2. Commitment Termination. This Commitment Letter and the commitments hereunder will terminate on the earlier to occur of (a) December 31, 2017, and (b) the date the Operative Documents become effective (in which case the commitments shall survive under the Operative Documents) (such earlier date, the “Termination Date”). The Initial Lenders’ commitments hereunder shall be superseded by the commitments in respect of the Facility set forth in the Operative Documents.

 

Section 3. Syndication. The Arranger reserves the right, before or after the execution of the Operative Documents, to syndicate all or a portion of the Facility to one or more financial institutions and institutional lenders that will become parties to the Operative Documents as Lenders, provided that each such financial institution or institutional lender to whom any portion of the Facility is syndicated on or before the execution of the Operative Documents shall be reasonably satisfactory to you (it being understood that after the execution of the Operative Documents the provisions of the Operative Documents shall govern your rights to approve such financial institutions and institutional lenders; provided that in the absence of a default or an event of default under the Operative Documents, this Commitment Letter or the Fee Letter, your consent (not to be unreasonably withheld or delayed) will be required in the case of any assignment of all or a portion of the Facility or any commitments in respect thereof to any person or entity other than a Lender, an affiliate of a Lender or an Approved Fund (as defined in the Existing Credit Facility)). The Company understands (i) that the Arranger intends to commence such syndication efforts promptly and (ii) the Arranger may elect to appoint one or more agents to assist it in such syndication efforts. The Arranger agrees that any such agent will be reasonably satisfactory to you.

 

The Arranger will manage all aspects of the syndication of the Facility in consultation with the Company, including the timing of all offers to potential Lenders, the determination of all amounts offered to potential Lenders, the selection of Lenders (subject to the Company’s consent rights provided herein), the allocation of commitments among the Lenders, the assignment of any titles and the compensation to be provided to the Lenders (which shall not exceed the amounts agreed to by the Company herein and in the Fee Letter).

 

The commitments of the Commitment Parties hereunder shall be reduced, on a ratable basis, dollar-for-dollar as and when commitments for the Facility are received from Lenders approved by the Arranger and, to the extent expressly provided herein, by the Borrower; provided that, notwithstanding any other provision in this Commitment Letter, with respect to any assignment to any Lender, no Commitment Party shall be relieved, released or novated from its obligations hereunder (including its obligation to fund the Facility on the Closing Date) in connection with any syndication or assignment of the Facility to any Lender including its commitment in respect thereof, until after the Closing Date has occurred; provided further that the Commitment Parties shall be relieved of such obligations to the extent of the commitment of any Lender that executes a joinder to this Commitment Letter and becomes a Commitment Party hereunder (provided that such joinder is also executed by the Borrower).

 

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Until the earliest of (x) the termination of the syndication of the Facility as determined by the Arranger, (y) the consummation of a Successful Syndication (as defined in the Fee Letter, defined below) and (z) 90 days after the Closing Date (such period, the “Syndication Period”), the Company shall assist the Arranger in forming a syndicate reasonably acceptable to the Arranger and the Company. The Company’s assistance in forming such syndicate shall include but not be limited to: (a) making senior management, representatives and advisors of the Company available (and using commercially reasonable efforts to cause senior management, representatives and advisors of the Target to be made available) to participate in a reasonable number of informational meetings with potential Lenders at times and places to be mutually agreed; (b) using commercially reasonable efforts to ensure that the syndication effort benefits from the Company’s existing lending relationships; (c) assisting (including using commercially reasonable efforts to cause its affiliates and advisors to assist) in the preparation of a customary confidential information memorandum for the Facility and other customary marketing materials to be used in connection with the syndication of the Facility; (d) providing the Arranger with customary projections of the Company and its subsidiaries, including updated projections of the Company and its subsidiaries, from time to time reasonably requested by the Arranger during the Syndication Period; and (e) promptly providing the Arranger with customary and reasonably available information about the Company and its subsidiaries and their businesses (and the Company will use its commercially reasonable efforts to obtain such information from the Target and its subsidiaries (to the extent relating to the Target and such subsidiaries)) to the extent reasonably requested by the Arranger and reasonably deemed necessary by them to successfully complete the syndication of the Facility. Without limiting your obligations to assist with the syndication efforts as set forth herein, the Commitment Parties agree that the commitments of the Commitment Parties to fund the Facility on the Closing Date are not conditioned upon the Company’s compliance with the foregoing or the commencement, conduct or completion of the syndication of the Facility or the completion of a Successful Syndication and in no event shall the successful syndication of the Facility constitute a condition to the availability of the Facility on the Closing Date.

 

The Company acknowledges that (i) the Arranger may make available any Information and Projections (each as defined in Section 8) (collectively, the “Company Materials”) on a confidential basis to potential Lenders by posting the Company Materials on IntraLinks®, Debtdomain®, the Internet or another similar electronic system (the “Platform”) and (ii) certain of the potential Lenders may be public side Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to you) (each, a “Public Lender”). The Company agrees that (A) at the request of the Arranger, it will prepare a version of the information package and presentation to be provided to potential Lenders that does not contain material non-public information concerning you, your affiliates or any securities of any thereof for purposes of United States federal and state securities laws; (B) all Company Materials that are to be made available to Public Lenders will be clearly and conspicuously marked “PUBLIC” which, at a minimum, will mean that the word “PUBLIC” will appear prominently on the first page thereof; (C) by marking Company Materials “PUBLIC,” the Company will be deemed to have authorized the Arranger and the proposed Lenders to treat such Company Materials as not containing any material non-public information (although they may be confidential or proprietary) with respect to you, your affiliates or any securities of any thereof for purposes of United States federal and state securities laws; (D) all Company Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Lender,” and (E) the Arranger will be entitled to treat any Company Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Lender.”

 

It is understood that in connection with your assistance described above, you will provide customary authorization letters (in the case of a public-side version of the Company Materials, containing a customary representation as to the absence of material non-public information therefrom) authorizing the distribution of the Company Materials to prospective Lenders.

 

To ensure an orderly and effective syndication of the Facility, the Company agrees that, during the Syndication Period, the Company will not and will not permit any of its subsidiaries to, syndicate or issue,

 

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attempt to syndicate or issue, announce or authorize the announcement of the syndication or issuance of, any debt security or commercial bank or other debt facility (including any renewals thereof) other than the Facility, without the prior written consent of the Arranger; provided, however, that the foregoing shall not limit the Company’s or any subsidiary’s ability to issue common equity, preferred equity, public or 144/Regulation S debt securities, non-recourse property level secured debt or other mortgage financing, any revolving credit indebtedness incurred under the Existing Credit Facility (as defined in Annex I) (including, provided that there has been a Successful Syndication, pursuant to any increase in commitments thereunder) or in the ordinary course of business, any capitalized leases or purchase money financings, any equity or debt securities or other debt issued to finance the Acquisition or any debt incurred to refinance or replace any indebtedness of the Target assumed in connection with the Acquisition.

 

The Company agrees that no additional agents, co-agents or lead arrangers will be appointed, or other titles conferred, without the consent of the Arranger (such consent not to be unreasonably withheld). The Company further agrees that no Lender will receive any compensation of any kind for its participation in the Facility, except as expressly provided in this Commitment Letter and the Fee Letter.

 

Section 4. Fees. The Company will pay (or cause to be paid) the non-refundable fees (when due and payable) set forth in (a) Annex I and (b) without duplication, any separate letter agreement executed and delivered by the Company and to which the Arranger and/or the Administrative Agent is a party, as the same may be amended from time to time (individually or collectively, as the context may require, and as amended or otherwise modified from time to time, the “Fee Letter”) in accordance with the terms thereof. The Company agrees that the Commitment Parties shall be granted the benefit of “most favored nation” treatment with respect to any beneficial terms whether economic or otherwise) granted to any Lender or any affiliate of any Lender to induce such Lender to extend its commitment to the Facility (exclusive of any such grant that would violate Section 106 of the Bank Holding Company Act Amendments of 1970, 12 U.S.C. 1972). Such “most favored nation” treatment shall not, however, require the Arranger, the Commitment Parties or their respective affiliates to accept any term or condition that is less favorable to them than those presently existing. Upon its execution and delivery, the terms of the Fee Letter shall become an integral part of the Arranger’s and each Commitment Party’s obligations hereunder and constitute part of this Commitment Letter for all purposes hereof. Each of the fees described in this Commitment Letter and Annex I shall be nonrefundable when paid except as expressly set forth therein.

 

Section 5. Indemnification. You agree to indemnify and hold harmless the Arranger, each Commitment Party, each Lender and each of their respective affiliates and each of their respective officers, directors, partners, employees, agents, advisors and representatives (each, an “Indemnified Person”, and collectively, the “Indemnified Persons”) from and against any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable and documented fees and disbursements of a single counsel to the Arranger, the Commitment Parties and their affiliates and of a single reasonably necessary special and local counsel for each applicable jurisdiction and, solely in the case of an actual or perceived conflict of interest, one additional counsel in each applicable jurisdiction to the affected person or entity), joint or several, that may be incurred by or asserted or awarded against any Indemnified Person (including, without limitation, in connection with, any investigation, litigation or proceeding or the preparation of any defense in connection therewith) in each case arising out of or in connection with or relating to this Commitment Letter or the Operative Documents or the transactions contemplated hereby or thereby, or any use made or proposed to be made with the proceeds of the Facility, or any untrue statement or alleged untrue statement of a material fact contained in, or omissions or alleged omissions from any filing with any governmental agency or similar statements or omissions in or from any information furnished by the Company or any of its subsidiaries or affiliates to any of the Indemnified Person or any other person or entity in connection with the Facility or any commitment in respect thereof, except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Person’s gross negligence, willful misconduct or bad faith breach of a material provision of this Commitment Letter. In the case of an investigation, litigation or proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective, whether or

 

5

 

not such investigation, litigation or proceeding is brought by the Company, the Target, any of your or their affiliates, any of your or their respective security holders or creditors, an Indemnified Person or any other person or entity, or an Indemnified Person is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated. The reimbursement and indemnity obligations of the Company under this paragraph will be in addition to any liability which the Company may otherwise have, will extend upon the same terms and conditions to any affiliate of the Arranger and any Commitment Party and the partners, directors, agents, employees, and controlling persons or entities (if any), as the case may be, of the Arranger or any Commitment Party and any such affiliate, and will be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the Arranger, each Commitment Party, any such affiliate and any such person or entity.

 

If any action, litigation, proceeding or investigation is commenced as to which any of the Indemnified Persons proposes to demand indemnification, they shall notify the Company with reasonable promptness; provided, however, that any failure by any of the Indemnified Persons to so notify the Company shall not relieve the Company from its obligations hereunder. The Indemnified Persons shall have the right to retain counsel of their choice (which counsel shall be reasonably acceptable to the Company and limited to a single counsel to the Arranger, the Commitment Parties and their affiliates and of a single reasonably necessary special and local counsel for each applicable jurisdiction and, solely in the case of an actual or perceived conflict of interest, one additional counsel in each applicable jurisdiction to the affected person or entity), and the Company shall jointly and severally pay the reasonable and documented fees, expenses and disbursement of such counsel; and such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the Company and any counsel designated by the Company. Without the prior written consent of the applicable Indemnified Person, the Company shall not settle or compromise any claim with respect to such Indemnified Person under this section, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement, compromise or consent includes, as an unconditional term thereof, the giving by the claimant to each of the applicable Indemnified Persons of an unconditional and irrevocable release from all liability in respect of such claim.

 

None of the Company or any of your affiliates or any Indemnified Person shall have any liability (whether direct or indirect, in contract, tort or otherwise) arising out of, related to or in connection with the transactions contemplated hereby for special, indirect, consequential or punitive damages, provided that nothing contained in this sentence shall limit your indemnity and reimbursement obligations to the extent such special, indirect, punitive or consequential damages are included in any third party claim in connection with which such Indemnified Person is entitled to indemnification hereunder. It is further agreed that in connection with the transactions contemplated hereby the Arranger and each Commitment Party shall have liability only to you and shall have no third party liability to any other person or entity.

 

The Company acknowledges that information and documents relating to the Facility may be transmitted through the Platform. No Indemnified Person will be liable to the Company or any of its affiliates or any of their respective security holders or creditors for any damages arising from the use by unauthorized persons or entities of information or other materials sent through the Platform that are intercepted by such persons or entities, except to the extent such damages are found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Person’s gross negligence, willful misconduct or bad faith breach of a material provision of this Commitment Letter.

 

Section 6. Costs and Expenses. You shall pay or reimburse the Arranger and each Commitment Party on demand for all reasonable and documented out-of-pocket costs and expenses incurred by the Arranger and its affiliates or such Commitment Party and its affiliates, as applicable (whether incurred before or after the date hereof), in connection with the Facility and the preparation, negotiation, execution and delivery of this Commitment Letter and the Operative Documents, including, without limitation, the reasonable and documented fees and disbursements of counsel (limited to a single counsel to the Arranger, the Commitment Parties and their affiliates and of a single reasonably necessary special and local counsel for each applicable jurisdiction), regardless of whether any of the transactions contemplated hereby are

 

6

 

consummated. The Company further agrees to pay all reasonable and documented out-of-pocket costs and expenses of the Arranger and its affiliates and each Commitment Party and its affiliates (including, without limitation, reasonable fees and disbursements of counsel (limited to a single counsel to the Arranger, the Commitment Parties and their affiliates and of a single reasonably necessary special and local counsel for each applicable jurisdiction and, solely in the case of an actual or perceived conflict of interest, one additional counsel in each applicable jurisdiction to the affected person or entity)) incurred in connection with the enforcement of any of its rights or remedies hereunder.

 

Section 7. Confidentiality. (a) By accepting delivery of this Commitment Letter, the Company agrees that this Commitment Letter and the Fee Letter are for its confidential use only and that neither their existence nor the terms hereof or thereof will be disclosed by it to any person or entity. Notwithstanding the foregoing, (i) the Company may disclose this Commitment Letter and the Fee Letter (provided that the Fee Letter is redacted in a manner reasonably satisfactory to the Arranger) to the Target and its officers, directors, employees, affiliates, independent auditors, legal counsel and other advisors on a confidential basis in connection with the Acquisition and the other transactions contemplated hereby, (ii) the Company may disclose this Commitment Letter and the Fee Letter to its officers, directors, employees, affiliates, independent auditors, legal counsel and other advisors on a confidential basis in connection with the transactions contemplated hereby, (iii) the Company may disclose this Commitment Letter as may be required by law, or compelled in a judicial or administrative proceeding or as otherwise required by law or requested by a governmental authority, (iv) the Company may disclose this Commitment Letter to rating agencies, on a confidential basis, (v) following the Company’s acceptance of the provisions hereof and its return of an executed counterpart of this Commitment Letter to the Arranger as provided below, the Company may file a copy of any portion of this Commitment Letter (but not the Fee Letter) in any public record in which it is required by law to be filed, (vi) the Company may make such other public disclosures of any of the terms and conditions hereof as the Company is required by law to make, including but not limited to any filings with the Securities and Exchange Commission and any other applicable regulatory authorities and stock exchanges; (vii) the Company may disclose this Commitment Letter (but not the Fee Letter) in any offering memoranda relating to any issuance and sale by the Company of unsecured notes (the “Notes”) in a public offering or in a Rule 144A or other private placement, (viii) the Company may disclose the fees as part of the Projections, pro forma information or a generic disclosure of aggregate sources and uses related to fee amounts related to the Acquisition and the other transactions contemplated thereby to the extent customary or required in any public release or filing relating to the Acquisition and the other transactions contemplated thereby, and (ix) the Company may disclose any terms and conditions hereof with our prior written consent.

 

(b)                                 We will treat as confidential all confidential information provided to us by or on behalf of you hereunder, provided that nothing herein shall prevent us from disclosing any such information (i) as may be required by law, or compelled in a judicial or administrative proceeding or as otherwise required by law or requested by a governmental authority, (ii) to the extent that such information becomes publicly available other than by reason of disclosure by us in violation of this paragraph, (iii) to the Arranger’s, each Commitment Party’s or such Lender’s affiliates, head office, branches and representative offices, and their officers, directors, employees, independent auditors, legal counsel, agents and other advisors and service providers on a confidential basis, and (iv) to actual or potential assignees or participants in the Facility who agree to be bound by the terms of this paragraph or substantially similar confidentiality provisions, provided that our confidentiality obligations under this sentence shall terminate on the earlier of (x) the Closing Date and (y) one year following the date of this Commitment Letter, provided that for the avoidance of doubt, the confidentiality undertakings set forth in this paragraph shall automatically terminate and be superseded by the provisions of the Operative Documents upon the effectiveness thereof. We further advise you that we will not make available to you confidential information that we may have obtained or may obtain from any other customer.

 

(c)                                  Notwithstanding any other provision in this agreement or any other document, the parties hereby agree that each party (and each employee, representative, or other agent of each party) may disclose to any and all persons and entities, without limitation of any kind, the United States tax treatment and United

 

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States tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to each party relating to such United States tax treatment and United States tax structure.

 

Section 8. Representations and Warranties of the Company. You represent and warrant (which representation and warranty shall be deemed to be to your knowledge with respect to information relating to the Target and its subsidiaries and their respective businesses) that (a) all information, other than Projections (as defined below) and information of a general economic or industry nature, that has been or will hereafter be made available to the Arranger, any Commitment Party, any Lender or any potential Lender by or on behalf of the Company, or any of your representatives in connection with the transactions contemplated hereby (the “Information”), when taken as a whole, is and will be complete and correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements were or are made and (b) all financial projections (taking into account the consummation of the transactions contemplated hereby), if any, that have been or will be prepared by or on behalf of the Company, or any of your representatives and made available to the Arranger, any Commitment Party, any Lender or any potential Lender (the “Projections”) have been or will be prepared in good faith based upon assumptions that are believed by you to be reasonable at the time made and at the time the related financial projections are made available to the Arranger or the Commitment Parties. If, at any time from the date hereof until the termination of this Commitment Letter, any of the representations and warranties in the preceding sentence would not be accurate and complete in any material respect if the Information or Projections were being furnished, and such representations and warranties were being made, at such time, then the Company will promptly supplement the Information and or Projections so that such representations and warranties contained in this paragraph remain accurate and complete in all material respects under those circumstances.

 

In issuing this Commitment Letter and in arranging the Facility, including the syndication of the Facility, the Arranger and the Commitment Parties will be entitled to use, and to rely on the accuracy of, the Information furnished to them by or on behalf of the Company, its affiliates and any of your or their respective representatives without responsibility for independent verification thereof.

 

Section 9. No Third Party Reliance, Not a Fiduciary, Etc. The agreements of the Arranger and each Commitment Party hereunder and of any Lender that issues a commitment to provide financing under the Facility are made solely for your benefit and the benefit of the Arranger, such Commitment Party or such Lender, as applicable, and may not be relied upon or enforced by any other person or entity. Please note that those matters that are not covered or made clear herein are subject to mutual agreement of the parties. You may not assign or delegate any of your rights or obligations hereunder without the Arranger’s and each Commitment Party’s prior written consent.

 

You hereby acknowledge that the Arranger and each Commitment Party is acting pursuant to a contractual relationship on an arm’s length basis, and the parties hereto do not intend that the Arranger or any Commitment Party act or be responsible as a fiduciary to you, your management, stockholders, creditors or any other person or entity, in each case in connection with the transactions contemplated hereby. The Arranger and each Commitment Party hereby expressly disclaims any fiduciary relationship to you in connection with the transactions contemplated hereby and agrees they are each responsible for making their own independent judgments with respect to any transactions entered into between them. You also hereby acknowledge that neither the Arranger nor any Commitment Party has advised or is advising you as to any legal, accounting, regulatory or tax matters, and that you are consulting your own advisors concerning such matters to the extent you deem it appropriate.

 

You understand that the Arranger and its affiliates and each Commitment Party and its affiliates (in each case, collectively, a “Group”) are engaged in a wide range of financial services and businesses (including investment management, financing, securities trading, corporate and investment banking and research) and that no Group is required to restrict its activities as a result of this Commitment Letter except

 

8

 

to the extent required by applicable law. Members of each Group and businesses within such Group generally act independently of each other, both for their own account and for the account of clients. Accordingly, there may be situations where parts of a Group and/or their clients either now have or may in the future have interests, or take actions that may conflict with your interests. For example, a Group may, in the ordinary course of business, engage in trading in financial products or undertake other investment businesses for their own account or on behalf of other clients, including without limitation, trading in or holding long, short or derivative positions in securities, loans or other financial products of you or your affiliates or other entities connected with the Facility or the transactions contemplated hereby.

 

You also acknowledge that none of the Commitment Parties or their respective affiliates has any obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, the Company or your or their respective subsidiaries, confidential information obtained by the Commitment Parties and their respective affiliates from other persons or entities. This Commitment Letter and the Fee Letter are not intended to create a fiduciary relationship among the parties hereto or thereto.

 

You acknowledge that you have retained Citi as financial advisor (in such capacity, “Buy-Side Financial Advisor”) in connection with the Acquisition. You agree not to assert any claim you might allege based on any actual or potential conflicts of interest that might be asserted to arise or result from, on the one hand, the engagement of any such Buy-Side Financial Advisor and, on the other hand, our and our affiliates’ relationships with you as described and referred to herein.

 

Section 10. Assignments. The Company may not assign or delegate any of its rights or obligations under this Commitment Letter without the Arranger’s prior written consent, and any attempted assignment without such consent shall be void ab initio.

 

Section 11. Amendments. This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed by each party hereto.

 

Section 12. Governing Law, Etc. THIS COMMITMENT LETTER, AND ALL RIGHTS, REMEDIES, OBLIGATIONS, CLAIMS, CONTROVERSIES, DISPUTES OR CAUSES OF ACTION (WHETHER IN CONTRACT, TORT OR OTHERWISE) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE IN ANY WAY TO THIS COMMITMENT LETTER, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS COMMITMENT LETTER OR THE TRANSACTIONS CONTEMPLATED HEREBY, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLE OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION OF ANY OTHER LAW; PROVIDED, HOWEVER, THAT (A) THE INTERPRETATION OF THE DEFINITION OF COMPANY MATERIAL ADVERSE EFFECT AND WHETHER OR NOT A COMPANY MATERIAL ADVERSE EFFECT HAS OCCURRED, (B) THE DETERMINATION OF THE ACCURACY OF ANY ACQUISITION AGREEMENT REPRESENTATIONS AND WHETHER AS A RESULT OF ANY INACCURACY THEREOF YOU HAVE THE RIGHT TO TERMINATE (OR DECLINE TO PERFORM) YOUR OBLIGATIONS UNDER THE ACQUISITION AGREEMENT, AND (C) THE DETERMINATION OF WHETHER THE ACQUISITION HAS BEEN CONSUMMATED IN ACCORDANCE WITH THE TERMS OF THE ACQUISITION AGREEMENT AND, IN ANY CASE, CLAIMS OR DISPUTES ARISING OUT OF ANY SUCH INTERPRETATION OR DETERMINATION OR ANY ASPECT THEREOF, IN EACH CASE, FOR THE PURPOSES OF THIS COMMITMENT LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF MARYLAND, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS. This Commitment Letter sets forth the entire agreement among the parties with respect to the matters addressed herein and supersedes all prior communications, written or oral, with respect hereto. This Commitment Letter may be executed in any number of counterparts, each of which, when so executed, shall be deemed to be an original and all of which, taken together, shall constitute one and the same Commitment Letter. Delivery of an executed

 

9

 

counterpart of a signature page to this Commitment Letter by telecopier or other electronic transmission (including PDF’s) shall be as effective as delivery of a manually executed counterpart of this Commitment Letter. The reimbursement (if applicable), indemnification, sharing of information, jurisdiction, governing law, venue, waiver of jury trial, syndication and confidentiality provisions (except as expressly set forth in Section 7(b)) contained herein and in the Fee Letter shall remain in full force and effect regardless of whether any Operative Documents shall be executed and delivered and notwithstanding the termination or expiration of this Commitment Letter or the commitments hereunder, provided that your obligations under this Commitment Letter (but not the Fee Letter, and other than your obligations with respect to (a) assistance to be provided in connection with the syndication of such commitments during the Syndication Period and (b) confidentiality) shall automatically terminate and be superseded by the provisions of the Operative Documents upon the effectiveness thereof, and you shall automatically be released from all liability in connection therewith at such time.

 

Section 13. Taxes; Payments. All payments under this Commitment Letter (including without limitation, the Fee Letter) will, except as otherwise provided herein, be made in U.S. Dollars in New York, New York and will be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto.

 

To the fullest extent permitted by law, the Company will make all payments hereunder regardless of any defense or counterclaim, including, without limitation, any defense or counterclaim based on any law, rule or policy which is now or hereafter promulgated by any governmental authority or regulatory body and which may adversely affect the Company’s obligation to make, or the right of the Arranger or any Commitment Party to receive, such payments.

 

Section 14. WAIVER OF JURY TRIAL, ETC. EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, LITIGATION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS COMMITMENT LETTER OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARTIES HERETO IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 

The Company hereby irrevocably and unconditionally agrees that it will not commence any action, litigation or other proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, arising out of or relating to this Commitment Letter or the transactions contemplated hereby, against the Administrative Agent, the Arranger, the Commitment Parties or any other Indemnified Persons in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof and each party hereto irrevocably and unconditionally submits to the jurisdiction of such courts, and each party hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in any such New York State court or, to the extent permitted or required by law, in such Federal court. Each party hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by law, (i) any objection that it may now or hereafter have to the laying of venue of any action, litigation or proceeding arising out of or relating to this Commitment Letter or the transactions contemplated hereby in any New York State or Federal court specified in the preceding paragraph, and (ii) the defense of an inconvenient forum to the maintenance of such action, litigation or proceeding in any such court.

 

A final judgment in any such action, litigation or proceeding will be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing herein will affect the right of the Administrative Agent, the Arranger, any Commitment Party or any other Indemnified

 

10

 

Persons to serve legal process in any other manner permitted by law or affect the right of the Administrative Agent, the Arranger, any Commitment Party or any other Indemnified Persons to bring any action, litigation or proceeding arising out of or relating to this Commitment Letter or the transactions contemplated hereby against the Company or its property in the courts of any jurisdiction.

 

Section 15. Time of Essence. Time shall be of the essence whenever and wherever a date or period of time is prescribed or referred to in this Commitment Letter.

 

Section 16. Patriot Act Compliance. The Commitment Parties hereby notify you that pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Patriot Act”), the Arranger, the Commitment Parties and the Lenders are required to obtain, verify and record information that identifies the Company and each affiliate thereof that is a party to the Operative Documents, which information includes the name, address, tax identification number and other information regarding the Company and such affiliates that will allow the Arranger, such Commitment Party or such Lender to identify the Company and each such affiliate in accordance with the Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and is effective as to the Arranger, the Commitment Parties and the Lenders.

 

Section 17. Power, Authority and Binding Effect. Each of the parties hereto represents and warrants to each of the other parties hereto that (a) it has all requisite power and authority to enter into this Commitment Letter and the Fee Letter and (b) each of this Commitment Letter and the Fee Letter has been duly and validly authorized by all necessary corporate action on the part of such party, has been duly executed and delivered by such party and constitutes a legally valid and binding agreement of such party, enforceable against it in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally. For the avoidance of doubt, this Commitment Letter supersedes and replaces any commitment letter previously issued by the Arranger on behalf of the Initial Lender in respect of the Facility.

 

Section 18. Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Each of the parties hereto hereby agrees to the provisions in attached Annex II, which provisions are incorporated into and made a part of this Commitment Letter as though fully set forth herein.

 

[Balance of Page Intentionally Left Blank.]

 

11

 

Please indicate the acceptance by the Company of the provisions hereof by signing a copy of this Commitment Letter and the Fee Letter and returning them to David Bouton, Managing Director, Citigroup Global Markets Inc., 390 Greenwich Street, New York, New York 10013 or via electronic transmission to david.bouton@citi.com, at or before 11:59 p.m. (New York City time) one (1) business day after the date hereof, the time at which the obligations of the Commitment Parties set forth above (if not so accepted prior thereto) will terminate. If the Company elects to deliver this Commitment Letter and/or the Fee Letter by electronic transmission, please arrange for executed originals to follow to counsel for CGMI.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
CITIGROUP GLOBAL MARKETS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By 
    	
/s/ Christopher J. Albano
    
	
 
    	
 
    	
Name: Christopher J. Albano
    
	
 
    	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
ACCEPTED AND AGREED
    	
 
    
	
on  June 27, 2017:
    	
 
    
	
 
    	
 
    
	
GOVERNMENT PROPERTIES INCOME TRUST
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ David M. Blackman
    	
 
    	
 
    
	
 
    	
Name: David M. Blackman
    	
 
    	
 
    
	
 
    	
Title: President and Chief Operating Officer
    	
 
    	
 
    

 

SIGNATURE PAGE TO GOVERNMENT PROPERTIES INCOME TRUST COMMITMENT LETTER

 

 

ANNEX I

 

SUMMARY OF TERMS 

 

[see attached pages.]

 

 

Annex I

 

Summary of Terms and Conditions

 

GOVERNMENT PROPERTIES INCOME TRUST

 

$750,000,000 Senior Unsecured Bridge Loan

 

 

	
BORROWER:
    	
 
    	
Government Properties Income   Trust (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
GUARANTORS:
    	
 
    	
Consistent with the   Existing Credit Facility (defined below).
    
	
 
    	
 
    	
 
    
	
EXISTING CREDIT FACILITY:
    	
 
    	
The existing $1.3   billion senior unsecured revolving credit and term loan facilities extended   pursuant to that certain Credit Agreement dated as of November 21, 2014   by and among the Borrower, the financial institutions party thereto, as   lenders, Wells Fargo Bank, National Association, as administrative agent, and   the other agents and arrangers party thereto, as the same may be amended,   amended and restated, restated, modified or replaced with the approval in   writing of the lenders thereunder as required pursuant thereto, provided that such approving lenders include, among   others, persons or entities that constitute Commitment Parties holding at   least a majority of aggregate commitments under the Commitment Letter (as   defined below) (the “Existing Credit Facility”). Capitalized terms used and   not defined herein are used as defined in the Existing Credit Facility.
    
	
 
    	
 
    	
 
    
	
SOLE LEAD ARRANGER AND SOLE   BOOKRUNNER:
    	
 
    	
The Sole Lead Arranger   and Sole Bookrunner will be Citigroup Global Markets Inc. (“CGMI” or the   “Arranger”).
    
	
 
    	
 
    	
 
    
	
ADMINISTRATIVE AGENT:
    	
 
    	
An affiliate of CGMI   will act as the administrative agent (the “Administrative Agent”).
    
	
 
    	
 
    	
 
    
	
LENDERS:
    	
 
    	
Syndicate of Lenders   acceptable to the Arranger and Borrower (collectively, the “Lenders”).
    
	
 
    	
 
    	
 
    
	
FACILITY:
    	
 
    	
$750,000,000 (the   “Facility Amount”) senior unsecured bridge loan (the “Bridge Loan”).
    
	
 
    	
 
    	
 
    
	
AVAILABILITY:
    	
 
    	
The Facility Amount   will be disbursed in a single drawing on the Closing Date.
    
	
 
    	
 
    	
 
    
	
PURPOSE:
    	
 
    	
To consummate the   acquisition (the “Acquisition”) by the Borrower of 100% of the outstanding   equity interests in First Potomac Realty Trust (the “Target”), and for the   payment of costs and expenses incurred in connection with the Acquisition,   the Bridge Loan and related transactions.
    

 

 

	
AMORTIZATION:
    	
 
    	
Interest only during   the term of the Bridge Loan (except as provided in the Mandatory Prepayments   section below). The outstanding principal balance of the Bridge Loan will be   due in full on the Maturity Date.
    
	
 
    	
 
    	
 
    
	
MATURITY:
    	
 
    	
The Bridge Loan shall   mature 364 days after the Closing Date (the “Maturity Date”).
    
	
 
    	
 
    	
 
    
	
OPTIONAL PREPAYMENT:
    	
 
    	
The Borrower may prepay   the Bridge Loan, in whole or in part, at any time without fees, premiums or   penalty, subject to customary reimbursement of the Lenders’ pro rata breakage   and redeployment costs associated with any LIBOR borrowings prepaid on a date   other than the last day of the applicable interest period.
    
	
 
    	
 
    	
 
    
	
MANDATORY PREPAYMENTS AND   COMMITMENT REDUCTIONS:
    	
 
    	
An amount equal to the   following amounts shall be applied to prepay the Bridge Loan, without fees,   premiums or penalty (other than customary breakage and redeployment costs   associated with any LIBOR borrowings prepaid on a date other than the last   day of the applicable interest period) (and, prior to the Closing Date, the   commitments pursuant to the Commitment Letter relating to the Bridge Loan to   which the Arranger and the Borrower are parties (the “Commitment Letter”) or   the definitive loan documentation for the Bridge Loan, as applicable, shall   be permanently and automatically reduced by an amount equal to): 100% of the   Net Cash Proceeds (as defined below) of all (i) Capital Raising   Transactions (as defined below), (ii) Material Asset Sales (as defined   below) and (iii) cash equity contributions to the Borrower, in each case   on or after the date of the Commitment Letter.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
A “Capital Raising   Transaction” shall be public or 144A common equity, preferred equity   (including preferred equity convertible into common stock), or debt   securities (including debt securities convertible into common stock) or other   unsecured debt for borrowed money issued or guaranteed by the Borrower; provided, however, that   “Capital Raising Transaction” shall not include (i) intercompany debt   among the Borrower and/or its subsidiaries; (ii) borrowings under the   Existing Credit Facility (including, provided that there shall have been a   Successful Syndication of the Bridge Loan, pursuant to any increase in   commitments thereunder); and (iii) any debt incurred to refinance or   replace any indebtedness of the Target assumed in connection with the   Acquisition. Other customary carveouts to be agreed by the parties.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
A “Material Asset Sale”   shall mean any non-ordinary course asset sale by the Borrower or any of its   subsidiaries generating Net Cash Proceeds in excess of $5,000,000 in any   transaction.
    

 

	
 
    	
$750,000,000 Senior   Unsecured Bridge Loan
    	
Page 2
    

 

 

	
 
    	
 
    	
“Net Cash Proceeds”   shall mean (a) with respect to any asset sale, the aggregate amount of   all cash (which term, for the purpose of this definition, shall include cash   equivalents) proceeds (including any cash proceeds received by way of   deferred payment of principal pursuant to a note or installment receivable or   purchase price adjustment or otherwise, but only as and when received) actually   received in respect of such asset sale, including property insurance or   condemnation proceeds paid on account of any loss of any property or assets,   net of (1) all reasonable attorneys’ fees, accountants’ fees, brokerage,   consultant and other customary fees and commissions, title and recording tax   expenses and other reasonable fees and expenses incurred in connection   therewith, (2) all taxes paid or reasonably estimated to be payable as a   result thereof, (3) all payments made, and all installment payments   required to be made, with respect to any obligation (A) that is secured   by any assets subject to such asset sale, in accordance with the terms of any   Operative Document or instrument with respect to a lien upon such assets, or   (B) that must by its terms, or in order to obtain a necessary consent to   such asset sale, or by applicable law, be repaid (including pursuant to any   mandatory prepayment or redemption requirement) out of the proceeds from such   asset sale, (4) all distributions and other payments required to be made   to minority interest holders in subsidiaries or joint ventures as a result of   such asset sale, or to any other person or entity (other than the Borrower or   any of its subsidiaries) owning a beneficial interest in the assets disposed of   in such asset sale, and (5) the amount of any reserves established by   the Borrower or any of its subsidiaries in accordance with GAAP to fund   purchase price or similar adjustments, indemnities or liabilities, contingent   or otherwise, reasonably estimated to be payable in connection with such   asset sale (provided that to the extent and at the time any such amounts are   released from such reserve, such amounts shall constitute Net Cash Proceeds);   and (b) with respect to any equity issuance or debt incurrence, the   aggregate amount of all cash proceeds actually received in respect of such   equity issuance or debt incurrence, net of reasonable fees, expenses, costs,   underwriting discounts and commissions incurred in connection therewith and   net of taxes paid or reasonably estimated by the Borrower to be payable as a   result thereof.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Upon each repayment or   prepayment of the Bridge Loan, the aggregate Bridge Loan commitments of the   Lenders shall be automatically and permanently reduced, on a pro rata basis, by   the amount of such repayment or prepayment. Amounts repaid may not be   reborrowed. Once terminated, a Bridge Loan commitment may not be reinstated.
    
	
 
    	
 
    	
 
    
	
INTEREST RATE:
    	
 
    	
Pricing (the   “Applicable Margin”) will be determined in accordance with the pricing grid   as set forth in the attached Exhibit A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If the Borrower obtains   ratings from Moody’s, S&P and Fitch that are not equivalent, the   Applicable Margin shall be determined by the lower of the highest two   ratings. If the Borrower obtains ratings from only Moody’s and S&P, the   Applicable Margin shall be determined by the higher of the two ratings. If   the Borrower obtains ratings from only one of S&P or Moody’s plus Fitch,   the Applicable Margin shall be determined by the S&P or Moody’s rating.   If the Borrower shall cease to have a Credit Rating from
    

 

	
 
    	
$750,000,000 Senior   Unsecured Bridge Loan
    	
Page 3
    

 

 

	
 
    	
 
    	
S&P or Moody’s, the   Applicable Margin shall be determined based on Level 5 of such grid.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“LIBOR” means, with   respect to any LIBOR Loan for any Interest Period, the rate of interest   obtained by dividing (i) the ICE Benchmark Administration Limited LIBOR   Rate (“ICE LIBOR”), as published by Reuters (or another commercially   available source providing quotations of ICE LIBOR, as determined by the   Administrative Agent from time to time for purposes of providing quotations   of interest rates applicable to Dollar deposits in the London interbank   market) at approximately 11:00 a.m., London time, on the date that is two   Business Days prior to the first day of such Interest Period and having a   maturity equal to such Interest Period; provided that if such rate of   interest is less than zero, such rate shall be deemed to be zero, by   (ii) a percentage equal to 1 minus the stated maximum rate   (stated as a decimal) of all reserves, if any, required to be maintained with   respect to Eurocurrency funding (currently referred to as “Eurocurrency   liabilities”) as specified in Regulation D of the Board of Governors of the   Federal Reserve System (or against any other category of liabilities which   includes deposits by reference to which the interest rate on LIBOR Loans is   determined or any applicable category of extensions of credit or other assets   which includes loans by an office of any Lender outside of the United States   of America). Any change in such maximum rate shall result in a change in   LIBOR on the date on which such change in such maximum rate becomes   effective.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Interest Period” means   with respect to each LIBOR Loan, each period commencing on the date such   LIBOR Loan is made, or in the case of the continuation of a LIBOR Loan the   last day of the preceding Interest Period for such Loan, and ending 7 days   thereafter or on the numerically corresponding day in the first, third or   sixth calendar month thereafter, as the Borrower may select in a notice of   borrowing, notice of continuation or notice of conversion, as the case may   be, except that each Interest Period (other than an Interest Period having a   duration of 7 days) that commences on the last business day of a calendar   month (or on any day for which there is no numerically corresponding day in   the appropriate subsequent calendar month) shall end on the last business day   of the appropriate subsequent calendar month. Notwithstanding the foregoing:   (i) if any Interest Period would otherwise end after the Maturity Date,   such Interest Period shall end on the Maturity Date; and (ii) each   Interest Period that would otherwise end on a day which is not a business day   shall end on the immediately following business day (or, if such immediately   following business day falls in the next calendar month, on the immediately   preceding business day).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Base Rate” means the   LIBOR Market Index Rate; provided, that if for any reason the LIBOR Market   Index Rate is unavailable, Base Rate shall mean the per annum rate of   interest equal to the Federal Funds Rate plus one and one-half of one percent   (1.50%).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“LIBOR Market Index   Rate” means, for any day, LIBOR as of that day that would be applicable for a   LIBOR Loan having a one-month Interest Period determined at approximately   11:00 a.m. Eastern Standard time for such day (or if such day is not a business   day, the immediately preceding
    

 

	
 
    	
$750,000,000 Senior   Unsecured Bridge Loan
    	
Page 4
    

 

 

	
 
    	
 
    	
business day). The   LIBOR Market Index Rate shall be determined on a daily basis.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest will be   payable monthly, computed on the actual days elapsed in a 360 day year.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Bridge Loan   documentation will include customary provisions (a) protecting the   Lenders against increased costs or loss of yield resulting from changes in   reserve, tax, capital adequacy and other requirements of law, and   (b) indemnifying the Lenders for breakage costs incurred in connection   with, among other things, any failure to borrow a LIBOR loan, or any   repayment of a LIBOR loan on a day other than the last day of an interest   period with respect thereto. While an event of default exists, the interest   rate on all outstanding obligations will be equal to the Base Rate plus the   Applicable Margin plus 2.0%. The loan documentation will contain customary   provisions addressing the Foreign Account Tax Compliance Act.
    
	
 
    	
 
    	
 
    
	
CERTAIN FEES:
    	
 
    	
As set forth in   Exhibit A.
    
	
 
    	
 
    	
 
    
	
FINANCIAL COVENANTS:
    	
 
    	
Same as, and limited to   those contained in, the Existing Credit Facility.
    
	
 
    	
 
    	
 
    
	
OTHER COVENANTS:
    	
 
    	
Same as, and limited to   those contained in, the Existing Credit Facility.
    
	
 
    	
 
    	
 
    
	
REPORTING REQUIREMENTS:
    	
 
    	
Same as, and limited to   those contained in, the Existing Credit Facility.
    
	
 
    	
 
    	
 
    
	
INDEMNIFICATION:
    	
 
    	
Same as Existing Credit   Facility.
    
	
 
    	
 
    	
 
    
	
CONDITIONS PRECEDENT TO   FUNDING:
    	
 
    	
Limited to those   conditions set forth in Section 1(c) of the Commitment Letter, plus   the conditions set forth below (the date upon which all such conditions   precedent to funding shall be satisfied and the funding of the Bridge Loan   occurs, the “Closing Date”):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.
    	
The Administrative   Agent shall have received (a) customary legal opinions as reasonably   required by the Administrative Agent, (b) evidence of authorization and   organizational documents with respect to the Borrower and the Guarantors (if   any) consisting of (i) applicable certificates or articles of   incorporation, formation, organization, limited partnership or other   comparable organizational instrument of the Borrower and each Guarantor (if   any) certified by the secretary of state, (ii) incumbency certificate   for the Borrower and each Guarantor (if any), (iii) copies of applicable   organizational documents of the Borrower and each Guarantor (if any)   certified by an officer of the Borrower or such Guarantor (if any), as   applicable and (iv) customary good standing certificates (with respect   to the applicable jurisdiction of incorporation or organization of the   Borrower and each Guarantor (if
    

 

	
 
    	
$750,000,000 Senior   Unsecured Bridge Loan
    	
Page 5
    

 

 

	
 
    	
 
    	
 
    	
any)),   (c) customary insurance certificates or other evidence of insurance   coverage and (d) a customary borrowing notice.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
The substantially   concurrent consummation of the Acquisition on or prior to the Closing Date in   accordance in all material respects with that certain Agreement and Plan of   Merger, dated as of June 27, 2017 (such agreement, including all exhibits and   schedules thereto, the “Acquisition Agreement”),   by and among Government Properties Income Trust, GOV New Oppty   REIT, GOV New Oppty LP, First Potomac Realty Trust and First Potomac Realty Investment   Limited Partnership, without amendment, modification or waiver thereof or any   consent thereunder (including any change in the definition of Company   Material Adverse Effect or lender protective provisions or in the purchase   price (excluding any adjustments provided for in the Acquisition Agreement)   which is materially adverse to the Lenders (unless consented to by the   Arranger).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
On the Closing Date,   there shall not exist any event, change, or occurrence arising after the date   of the Acquisition Agreement that, individually or in the aggregate,   constitutes a Company Material Adverse Effect (as defined in the Acquisition   Agreement).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.
    	
To the extent   reasonably requested at least 10 business days prior to the Closing Date, the   Administrative Agent shall have received at least three business days prior   to the Closing Date all documentation and other information with respect to   the Borrower and the Guarantors (if any) that the Administrative Agent or the   Arranger reasonably determines is required by U.S. regulatory authorities   under applicable “know your customer” and anti-money laundering   rules and regulations, including the PATRIOT Act.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.
    	
The Arranger shall have   received (a) audited financial statements for the Target and its   consolidated subsidiaries for the fiscal year most recently ended at least 90   days before the Closing Date (without any qualified opinion thereon) and   (b) to the extent available, unaudited financial statements for the   Target and its consolidated subsidiaries for each completed fiscal quarter   since the date of such audited financial statements ending at least 45 days   before the Closing Date, which shall be prepared in accordance with, or reconciled   to, U.S. generally accepted accounting principles. In addition, the Arranger   shall have received pro forma financial statements giving effect to the   Acquisition to the extent required pursuant to Regulation S-X under the   Securities Act of 1933, as amended, to be filed with the SEC on or prior to   the consummation of the Acquisition, provided that the Borrower shall be   deemed to have satisfied this requirement to the extent that such pro forma   financial statements have been filed and are publicly available   electronically at www.sec.gov (or a successor web site thereto).
    

 

	
 
    	
$750,000,000 Senior   Unsecured Bridge Loan
    	
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6.
    	
The Specified   Representations shall be true and correct in all material respects as of the   Closing Date.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.
    	
The Acquisition   Agreement Representations shall be true and correct in all respects as of the   Closing Date except to the extent that the Borrower would not have the right   to terminate its obligations under the Acquisition Agreement as a result of a   breach of such representations in the Acquisition Agreement.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
8.
    	
The Lenders shall have   received a solvency certificate from the chief financial officer of the   Company in the form attached hereto as Schedule I.
    
	
 
    	
 
    	
 
    
	
REPRESENTATIONS AND WARRANTIES:
    	
 
    	
Subject in all respects   to the Certain Funds Provisions, same as, and limited to those contained in,   the Existing Credit Facility.
    
	
 
    	
 
    	
 
    
	
EVENTS OF DEFAULT:
    	
 
    	
Same as, and limited to   those contained in, the Existing Credit Facility.
    
	
 
    	
 
    	
 
    
	
ASSIGNMENTS/ PARTICIPATIONS:
    	
 
    	
Same as Existing Credit   Facility; provided that, notwithstanding any other provision in the   Operative Documents, but subject to the provisions of the Commitment Letter,   with respect to any assignment to any Lender, no Commitment Party (as defined   in the Commitment Letter) shall be relieved, released or novated from its   obligations under the Commitment Letter (including its obligation to fund the   Facility on the Closing Date) in connection with any syndication or   assignment of the Facility to any Lender, including its commitments in   respect thereof, until after the Closing Date has occurred.
    
	
 
    	
 
    	
 
    
	
WAIVERS AND AMENDMENTS:
    	
 
    	
Same as Existing Credit   Facility.
    
	
 
    	
 
    	
 
    
	
EXPENSES:
    	
 
    	
The Borrower will pay   all reasonable and documented out-of-pocket costs and expenses associated   with the preparation, due diligence, administration, syndication and   enforcement of all documentation executed in connection with the Bridge Loan,   including, without limitation, the reasonable and documented legal fees of   Shearman & Sterling LLP, counsel to the Administrative Agent, the   Arranger and the Commitment Party, regardless of whether or not the Bridge   Loan is closed. The Borrower will also pay the reasonable and documented   expenses of each Lender in connection with the “workout” or enforcement of   any loan documentation for the Bridge Loan.
    
	
 
    	
 
    	
 
    
	
GOVERNING LAW:
    	
 
    	
New York.
    

 

	
 
    	
$750,000,000 Senior   Unsecured Bridge Loan
    	
Page 7
    

 

 

	
OTHER:
    	
 
    	
Subject in all respects   to the Certain Funds Provisions, the definitive documentation for the Bridge   Loan shall include customary representations regarding anti-corruption laws,   and, consistent with the Existing Credit Facility, waivers by each party to its   right to trial by jury and submission by each party to State of New York   jurisdiction. This Summary of Terms and Conditions is intended only as an   outline of certain of the material terms of the Facility and does not purport   to summarize all of the conditions, covenants, representations, warranties   and other provisions that would be contained in definitive documentation for   the Facility contemplated hereby. 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Loan documentation   shall include:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.
    	
Waiver by each of the   parties of its right to a trial by jury.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
Submission by each of   the parties to State of New York jurisdiction.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Normal agency, set-off   and sharing language.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.
    	
Receipt and   verification of all necessary information in connection with the USA Patriot   Act, “Know Your Customer” and other customary requirements.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.
    	
Customary defaulting   lender provisions.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.
    	
Customary provisions   regarding OFAC, sanctions and anti-corruption laws.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.
    	
Customary European   Union “bail-in” provisions.
    

 

	
 
    	
$750,000,000 Senior   Unsecured Bridge Loan
    	
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EXHIBIT A

 

PRICING GRID

 

	
RATINGS: S&P AND
   MOODY’S
    	
 
    	
THE
   GREATER
   OF
   A- AND A3
    	
 
    	
THE
   GREATER
   OF
   BBB+ AND
   BAA1
    	
 
    	
THE
   GREATER
   OF
   BBB AND
   BAA2
    	
 
    	
THE
   GREATER
   OF
   BBB- AND
   BAA3
    	
 
    	
BELOW
   BOTH
   BBB- AND
   BAA3
    
	
LEVEL
    	
 
    	
Level I
    	
 
    	
Level II
    	
 
    	
Level III
    	
 
    	
Level IV
    	
 
    	
Level V
    
	
APPLICABLE   MARGIN*
    	
 
    	
90.0
    	
 
    	
97.5
    	
 
    	
115.0
    	
 
    	
140.0
    	
 
    	
190.0
    

 

*: In basis points per annum

 

All margins and fees change as of the first day of the month following the rating classification changes.

 

	
FUNDING FEE:
    	
Due and payable to the Administrative Agent on the   Closing Date for the account of each Lender in an amount equal to each such   Lender's final allocated commitment that is funded on the Closing Date (but   only if the Closing Date occurs), multiplied by 35 bps.
    
	
 
    	
 
    
	
DURATION FEE:
    	
Due and payable to the Administrative Agent for the   ratable benefit of the Lenders on each of (i) the 90th day following the Closing Date in an amount   equal to 25 bps multiplied by the aggregate principal amount of the Facility   outstanding as of such date, (ii) the 180th day following   the Closing Date in an amount equal to 50 bps multiplied by the aggregate   principal amount of the Facility outstanding as of such date, and (iii) the 270th day following the Closing Date in an amount   equal to 75 bps multiplied by the aggregate principal amount of the Facility   outstanding as of such date.
    
	
 
    	
 
    
	
TICKING FEE:
    	
Due and payable to the Administrative Agent, for the   ratable account of the Commitment Parties, 12.5 bps per annum of the daily   average undrawn commitments of the Commitment Parties in respect of the   Facility under the Commitment Letter, accruing from the date that is 120 days   from the date hereof until the earlier of (x) the Closing Date and (y) the   termination or expiration of the commitments under the Commitment Letter in   accordance with the terms thereof. The Ticking Fee shall be earned and payable   on such earlier date.
    

 

	
 
    	
$750,000,000   Senior Unsecured Bridge Loan
    	
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EXHIBIT B

 

FORM OF SOLVENCY CERTIFICATE

 

[·], 20   

 

This Solvency Certificate is being executed and delivered pursuant to Section [·] of that certain [·]1 (the “Loan Agreement”); the terms defined therein being used herein as therein defined.

 

I, [·], the [chief financial officer/equivalent officer] of the Company, in such capacity and not in an individual capacity, hereby certify that I am the [chief financial officer/equivalent officer] of the Company and that I am generally familiar with the businesses and assets of the Company and its subsidiaries (taken as a whole), I have made such other investigations and inquiries as I have deemed appropriate and I am duly authorized to execute this Solvency Certificate on behalf of the Company pursuant to the Loan Agreement.

 

I further certify, in my capacity as [chief financial officer/equivalent officer] of the Company, and not in my individual capacity, as of the date hereof and after giving effect to the [Acquisition] and the incurrence of the indebtedness and obligations being incurred in connection with the Loan Agreement and the [Acquisition], that, (i) the sum of the debt (including contingent liabilities) of the Company and its subsidiaries, taken as a whole, does not exceed the present fair saleable value of the assets (at a fair valuation) of the Company and its subsidiaries, taken as a whole; (ii) the capital of the Company and its subsidiaries, taken as a whole, is not unreasonably small in relation to the business of the Company and its subsidiaries, taken as a whole, contemplated as of the date hereof; and (iii) the Company and its subsidiaries, taken as a whole, do not intend to incur, or believe that they will incur, debts including current obligations beyond their ability to pay such debt as they mature in the ordinary course of business.

 

[Remainder of page intentionally left blank]

 

1 NTD: Describe the Credit Agreement

 

	
 
    	
$750,000,000   Senior Unsecured Bridge Loan
    	
Page 10

 
    

 

 

IN WITNESS WHEREOF, I have executed this Solvency Certificate on the date first written above.

 

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
[·]
    
	
 
    	
 
    	
Title:
    	
[·]
    

 

	
 
    	
$750,000,000   Senior Unsecured Bridge Loan
    	
Page 11

 
    

 

 

ANNEX II

 

ACKNOWLEDGEMENT AND CONSENT TO BAIL-IN OF EEA FINANCIAL INSTITUTIONS

 

Notwithstanding anything to the contrary in this Commitment Letter or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under this Commitment Letter, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if applicable, (i) a reduction in full or in part or cancellation of any such liability, (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Commitment Letter or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

As used in this Annex II, the terms listed below shall have the respective meanings set forth below (such meanings to be equally applicable to both the singular and plural forms of the terms defined). The capitalized terms used herein without definition have the respective meanings given to them in the Commitment Letter (as defined below) including Annex I attached hereto.

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Commitment Letter” means, collectively (a) the letter agreement dated as of the date hereof (as amended or otherwise modified from time to time) among Citigroup Global Markets Inc. and Government Properties Income Trust regarding a $750 million senior unsecured bridge loan, and (b) the Fee Letter under and as defined therein.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published

 

 

by the Loan Market Association (or any successor Person), as in effect from time to time.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

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