Document:

Exhibit

Exhibit 10.9

EXECUTION VERSION

February 9, 2018

TRMT CB Lender LLC
c/o Tremont Realty Advisors LLC
Two Newton Place
255 Washington Street, Suite 300
Newton, MA  02458
Attention: Douglas Lanois

		
	Re:
	Master Repurchase Agreement, dated as of February 9, 2018 (as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Master Repurchase Agreement”) by and between TRMT CB Lender LLC (“Seller”) and Citibank, N.A. (“Buyer”).

Ladies and Gentlemen:
Reference is hereby made to, and this fee letter (this “Fee Letter”) is hereby incorporated by reference into, the Master Repurchase Agreement.  Capitalized terms used herein that are not otherwise defined herein shall have the meanings set forth in the Master Repurchase Agreement.
Section 1.Definitions.  The following terms shall have the meanings set forth below.
“Applicable Spread” shall mean, with respect to each Purchased Asset, the “Applicable Spread” set forth below unless otherwise agreed to between Seller and Buyer on a case-by-case basis and in each case as set forth in the related Confirmation:

	
									
	Property Type
	Multi Family Asset
	Applicable Spread
	 
	Commercial Asset
	Applicable Spread
	 
	Hotel  
Asset
	Applicable Spread

	Purchase Price Debt Yield
	Greater than or equal to 8.5%
	200
	 
	Greater than or equal to 9.5%
	210
	 
	Greater than or equal to 11.0%
	225

	 
	Less than 8.5%
	225
	 
	Less than 9.5%
	235
	 
	Less than 11.0%
	250

Notwithstanding the above, with respect to each Purchased Asset purchased pursuant to a Transaction on a Purchase Date, the “Applicable Spread” may be any other amount determined by Buyer in its sole discretion; provided, that any such change in the Applicable Spread determined by Buyer on a Purchase Date with respect to a Purchased Asset shall not have any effect on the Applicable Spread for Purchased Assets already purchased on prior Purchase Dates.

“Effective Purchase Price Percentage” means, with respect to each Purchased Asset, the quotient of the outstanding Purchase Price divided by the outstanding principal balance of such Purchased Asset.

“Exit Fee” shall mean, with respect to the repurchase of a Purchased Asset, an amount equal to the product of 0.5% multiplied by the then outstanding Purchase Price for such Purchased Asset.
“Facility Amount” shall mean $100,000,000.
“Guarantor Threshold” shall mean $1,000,000.00.
“Margin Amount” shall mean, with respect to any Purchased Asset on any date, an amount equal to the product of (i) the Margin Percentage on such date with respect to such Purchased Asset and (ii) the Purchase Price of such Purchased Asset on such date.
“Margin Percentage” shall mean, with respect to any Purchased Asset as of any date, a percentage equal to the quotient of (i) one (1) divided by (ii) the Purchase Price Percentage for such Purchased Asset as of any such date. 

“Minimum Portfolio Purchase Price Debt Yield” shall mean 9.0%. 

“Minimum Purchase Price Debt Yield” shall mean 8.0%.
“Mortgaged Property LTV Threshold” shall mean 80%.
“Portfolio Purchase Price Debt Yield” shall mean as of any date of determination the Purchase Price Debt Yield of all Purchased Assets (calculated on a weighted average basis based on outstanding Purchase Price), as determined by Buyer.
“Pricing Rate” shall mean, for any Pricing Rate Period, an annual rate equal to the sum of (i) LIBOR plus (ii) the Applicable Spread, in each case, for the applicable Pricing Rate Period for the related Purchased Asset.  The Pricing Rate shall be subject to adjustment and/or conversion as provided in the Transaction Documents (including, without limitation, as provided in Article 3(g) of the Master Repurchase Agreement) or the related Confirmation.

“Purchase Price” shall mean, with respect to any Purchased Asset, (a) as of the Purchase Date, (i) the price at which such Purchased Asset is transferred by Seller to Buyer on the applicable Purchase Date, which shall be equal to the amount equal to the product of (A) the Purchase Price Percentage for such Purchased Asset multiplied by (B) the lesser of (x) the unpaid principal balance of such Purchased Asset (without inclusion of any future funding obligation thereunder) and (y) the Market Value of such Purchased Asset, and (b) as of any other date of determination, the amount described in the preceding clause (a) for such Purchased Asset, reduced by (i) any amount of any Margin Deficit transferred by Seller to Buyer pursuant to Article 4 of the Master Repurchase Agreement with respect to such Purchased Asset and applied to reduce the Purchase Price for such Purchased Asset, (ii) the portion of any Principal Payments applied as principal to the Purchase Price of such Purchased Asset by Buyer pursuant to Articles 5(f) and 5(g) of the Master Repurchase Agreement, and (iii) any other payments made by or on behalf of Seller and applied by Buyer to reduce the outstanding Purchase Price, including any such payments pursuant to Article 3(d) of the Master Repurchase Agreement or such applications by Buyer pursuant to Article 13(b)(ii)(D) of the Master Repurchase Agreement, for such Purchased Asset in accordance with the Transaction 

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Documents, and increased by any amounts constituting Future Funding Advance Draws or Margin Excess Advances paid to Seller with respect to such Purchased Asset pursuant to Article 3(e)(iii) or 3(e)(iv), respectively.
“Purchase Price Debt Yield” shall mean, on any date with respect to any Purchased Asset, a fraction (expressed as a percentage) (A) the numerator of which is the Underwritten Net Cash Flow of the related Mortgaged Property or Mortgaged Properties, as determined by Buyer in its sole good faith discretion, and (B) the denominator of which is the Purchase Price of such Purchased Asset on such date.
“Purchase Price Differential” shall mean, with respect to any Purchased Asset as of any date of determination, the amount equal to the product of (a) the applicable Pricing Rate for such Purchased Asset and (b) the outstanding Purchase Price of such Purchased Asset, calculated on the basis of a 360-day year and the actual number of days during the period commencing on (and including) the Purchase Date for such Purchased Asset and ending on (but excluding) the date of determination (reduced by any amount of such Purchase Price Differential previously paid by Seller to Buyer with respect to such Purchased Asset).
“Purchase Price LTV” shall mean, on any date with respect to any Purchased Asset, a fraction (expressed as a percentage) (A) the numerator of which is the then outstanding Purchase Price of the Purchased Asset, and (B) the denominator of which is the “as-is” appraised value identified on the Appraisal(s) of the related Mortgaged Property or Mortgaged Properties.
“Purchase Price Percentage” shall mean, with respect to any Purchased Asset, 75% (or such other Purchase Price Percentage set forth on the related Confirmation for such Purchased Asset as agreed to by Seller and Buyer on a case by case basis); provided that, unless otherwise agreed in writing by Buyer and Seller:
(i)     as of the related Purchase Date, the Purchase Price Percentage shall not result in a Purchase Price LTV for such Eligible Asset that is equal to or greater than 60% or a Purchase Price Debt Yield that is less than the Minimum Purchase Price Debt Yield, and
(ii)     at any time, the Purchase Price Percentage shall be subject to adjustment by Buyer to the extent necessary to result in a Portfolio Purchase Price Debt Yield that is not less than the Minimum Portfolio Purchase Price Debt Yield. 
“Seller Threshold” shall mean $100,000.00.
“Underwritten Net Cash Flow” shall mean, with respect to any one or more Purchased Assets, in-place underwritten net cash flow from the Mortgaged Property or Mortgaged Properties securing such Purchased Asset(s), after deduction for normalized capital expenditure amounts and leasing costs and adjusted for any amounts held in a reserve by Seller (provided such reserve is subject to a first priority perfected security interest in favor of Buyer) or subject to a committed or conditionally committed future funding obligation of Seller pursuant to the Purchased Asset 

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Documents in an amount determined by Buyer to be adequate, in all cases as determined by Buyer in its sole discretion.
“Unused Fee” shall mean a non-refundable fee that shall be deemed due, earned and payable every third Remittance Date, commencing with the Remittance Date in May 2018, for the prior three-month period from and including the Remittance Date in the first month of such three-month period to but excluding the Remittance Date in the third month of such three-month period, in an amount equal to the product of (i) the positive difference between (A) the aggregate approved Purchase Prices for Eligible Assets which Buyer has approved in its sole discretion pursuant to requests from Seller in accordance with the Transaction Documents as of any date and (B) the average daily aggregate outstanding Purchase Price of all Transactions as of such date, (ii) 0.25% and (iii) the actual number of days during such period of calculation divided by 360.  The Non-Utilization Fee shall be paid to the Buyer in arrears on every third Remittance Date for the immediately preceding three-month period. 
“Upfront Fee” shall mean a non-refundable fee that shall be deemed due, earned and payable upon the Closing Date equal to the product of (a) 0.50% and (b) Facility Amount as of the Closing Date (i.e., $500,000).
Section 2.    Exit Fee.  
Seller shall be required to pay the Exit Fee with respect to any Purchased Asset upon the repurchase of such Purchased Asset prior to the Repurchase Date of such Purchased Asset.  Notwithstanding anything to the contrary contained herein or in any other Transaction Document, no Exit Fee shall be payable by Seller with respect to the repurchase of a Purchased Asset: (i) if the source of funds for the repurchase of such Purchased Asset is a sale, refinancing, or repayment by the Mortgagor of such Purchased Asset, (ii) if Seller elects to repurchase such Purchased Asset after a Margin Deficit existed with respect to such Purchased Asset or an Event of Default has occurred and is continuing or (iii) if Seller terminates the Master Repurchase Agreement pursuant to Article 5(j)(viii) or the proviso to Article 13(a)(xvi) of the Master Repurchase Agreement.
Section 3.    Unused Fee.  
The Unused Fee shall be fully earned by, and due and payable to, Buyer, and payable by Seller in accordance with the terms of the definition of “Unused Fee” in Section 1 of this Fee Letter.
Section 4.    Amendment.
This Fee Letter may not be amended nor any provision hereof waived or modified except by an instrument in writing signed by the Seller and the Buyer.
Section 5.    GOVERNING LAW.
THIS FEE LETTER SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH 

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LAWS WITHOUT REGARD TO THE CONFLICT OF LAWS DOCTRINE APPLIED IN SUCH STATE (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).
Section 6.    Severability.
Each provision of this Fee Letter shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Fee Letter shall be prohibited by or be invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Fee Letter.
Section 7.    Confidentiality.
The terms set forth in this Fee Letter shall be kept confidential and shall not be disclosed by Seller, Guarantor or Buyer to any Person except as permitted in accordance with Article 28(j) of the Master Repurchase Agreement.
[SIGNATURES FOLLOW]

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Please evidence your agreement to the terms of this Fee Letter by signing a counterpart of this Fee Letter and returning it to the undersigned.

	
		
	 
	Sincerely,

	 
	 

	 
	CITIBANK, N.A.,
a national banking association

	 
	 

	 
	 

	 
	By: /s/ Richard B. Schlenger      
Name: Richard B. Schlenger
Title: Authorized Signatory

[signatures continue on following page]

 [Signature Page to Fee Letter]

	
		
	ACCEPTED AND AGREED:
	 

	 
	 

	TRMT CB LENDER LLC, 
a Delaware limited liability company
	 

	 
	 

	 
	 

	By: /s/ David M. Blackman   
Name: David M. Blackman
Title:   Chief Executive Officer
	 

	 
	 

	 
	 

 [Signature Page to Fee Letter]Exhibit

Exhibit 10.11

SECOND AMENDMENT TO FEE AGREEMENT
THIS SECOND AMENDMENT TO FEE AGREEMENT (this “Amendment”), dated as of February 4, 2019 (the “Effective Date”), is made by and among CITIBANK, N.A. (together with its successors and/or assigns, “Buyer”), TRMT CB LENDER LLC, a Delaware limited liability company (“Seller”), and for the purpose of acknowledging and agreeing to the provision set forth in Section 3 hereof, TREMONT MORTGAGE TRUST, a Maryland real estate investment trust (“Guarantor”).
W I T N E S S E T H:
WHEREAS, Seller and Buyer have entered into that certain Master Repurchase Agreement, dated as of February 9, 2018, as amended by the First Amendment to Master Repurchase Agreement, dated as of November 6, 2018 (as such agreement may be further amended, supplemented, extended, restated, replaced or otherwise modified from time to time, the “Repurchase Agreement”);
WHEREAS, in connection with the Repurchase Agreement, Seller and Buyer entered into that certain Fee Agreement, dated as of February 9, 2018, as amended by the First Amendment to Fee Agreement, dated as of November 6, 2018 (as the same may be further amended, supplemented or otherwise modified from time to time, the “Fee Agreement”); 
WHEREAS, all capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Repurchase Agreement; and
WHEREAS, Seller and Buyer desire to modify the definition of Facility Amount as set forth herein.
NOW, THEREFORE, in consideration of ten dollars ($10) and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Seller and Buyer covenant and agree as follows as of the Effective Date, and Guarantor acknowledges and agrees as to the provision set forth in Section 3 as of the Effective Date:
1.Amendment to Fee Agreement.  
(a)The following definitions are hereby added to Section 1 of the Fee Agreement in their respective appropriate alphabetical location: 
“RMR Indebtedness” shall mean, with respect to Guarantor, obligations in respect of borrowed money which indebtedness satisfies each of the following clauses (i) through (vi):
		
	(i)
	proceeds of advances under such indebtedness are used either (x) together with advances of Purchase Price by Buyer pursuant to Transactions, to fund Purchased Assets consistent with the Guarantor’s business plan which has been approved by its board of directors or (y) to be held by Guarantor in order to satisfy the 

1

minimum Cash Liquidity (as such term is defined in the Guaranty) financial covenant required under the Guaranty,
		
	(ii)
	such indebtedness matures on or after the latest of (x) three (3) years from the date of issuance of such indebtedness, (y) thirty (30) days after the Repurchase Date (as such date may be extended) and (z) thirty (30) days after the maturity date of the Texas Capital Bank Note (as such date may be extended),

		
	(iii)
	such indebtedness prohibits assignment of such indebtedness to a holder (or issuance of a participation interest in such indebtedness to an entity) that is not Controlled by Manager’s Parent,

		
	(iv)
	such indebtedness provides that, while the Repurchase Agreement and the Texas Capital Bank Note are outstanding and have not been terminated, such indebtedness is prepayable only in whole or in part with funds the source of which is net cash proceeds received by Guarantor in connection with a public offering of its common stock or issuance of preferred equity and any such funds applied towards such prepayment may not be re-borrowed, 

		
	(v)
	such indebtedness bears interest at a rate calculated and paid quarterly in arrears equal to 6.50% per annum, and

		
	(vi)
	such indebtedness will include an event of default in the event Guarantor ceases to be managed by Manager.

“Supplemental Facility Fee” shall mean an amount equal to the product of (x) 0.50%, (y) the increase in the Facility Amount described and established under the proviso to the definition of Facility Amount and (z) a fraction, expressed as a percentage, the numerator of which equals the number of calendar days from the Business Day on which such increase in the Facility Amount is effective to November 6, 2021 and the denominator of which equals 1,095. 
“Texas Capital Bank Note” shall mean that certain Promissory Note, dated July 27, 2018, in the principal amount of up to $32,290,400.00 made by TRMT TCB Lender LLC payable to Texas Capital Bank, National Association.
(b)The following definition in Section 1 of the Fee Agreement is hereby deleted in its entirety and replaced by the version below: 
“Facility Amount” shall mean $135,000,000; provided, that, notwithstanding the foregoing, commencing on and after the date Guarantor has issued Indebtedness which, in the reasonable determination of Buyer, satisfies the requirements to be treated as RMR Indebtedness, then the Facility Amount shall increase by $3.00 for each $1.00 borrowed under the RMR Indebtedness, up to a maximum Facility Amount equal to $210,000,000, 

2

which increase shall be effective on the date such borrowing under the RMR Indebtedness occurs.  Seller shall notify Buyer in writing of each borrowing under the RMR Indebtedness by not later than the second (2nd) Business Day prior to the Business Day on which funds are advanced.
(c)The following is hereby added as Section 9 of the Fee Agreement:
Section 9.  Supplemental Facility Fee.
Seller shall pay to Buyer the Supplemental Facility Fee on each Business Day on which the Facility Amount is increased as described and established in the proviso to the definition of Facility Amount, which Supplemental Facility Fee shall be non-refundable and shall be deemed fully earned by Buyer and due and payable to Buyer on each such Business Day.
2.    Seller’s Representations.  Seller has taken all necessary action to authorize the execution, delivery and performance of this Amendment.  This Amendment has been duly executed and delivered by or on behalf of Seller and constitutes the legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles.  No Event of Default has occurred and is continuing, and no Event of Default will occur as a result of the execution, delivery and performance by Seller of this Amendment.  Any consent, approval, authorization, order, registration or qualification of or with any Governmental Authority required for the execution, delivery and performance by Seller of this Amendment has been obtained and is in full force and effect (other than consents, approvals, authorizations, orders, registrations or qualifications that if not obtained, are not reasonably likely to have a Material Adverse Effect).  
3.    Reaffirmation of Guaranty.  Guarantor has executed this Amendment for the purpose of acknowledging and agreeing that, notwithstanding the execution and delivery of this Amendment and the amendment of the Repurchase Agreement hereunder, all of Guarantor’s obligations under the Guaranty remain in full force and effect and the same are hereby irrevocably and unconditionally ratified and confirmed by Guarantor in all respects.  
4.    Conditions Precedent.  This Amendment and its provisions shall become effective upon the execution and delivery of this Amendment by a duly authorized officer of each of Seller, Buyer and Guarantor.
5.    Agreement Regarding Expenses.  Seller agrees to pay Buyer’s reasonable out of pocket expenses (including reasonable legal fees) incurred in connection with the preparation and negotiation of this Amendment promptly (and after Buyer or Buyer’s counsel gives Seller an invoice for such expenses).
6.    Full Force and Effect.  Except as expressly modified hereby, all of the terms, covenants and conditions of the Repurchase Agreement and the other Transaction Documents remain unmodified and in full force and effect and are hereby ratified and confirmed by Seller.  Any inconsistency between this Amendment and the Repurchase Agreement (as it existed before this 

3

Amendment) shall be resolved in favor of this Amendment, whether or not this Amendment specifically modifies the particular provision(s) in the Repurchase Agreement inconsistent with this Amendment.  All references to the “Agreement” in the Repurchase Agreement or to the “Repurchase Agreement” in any of the other Transaction Documents shall mean and refer to the Repurchase Agreement as modified and amended hereby.
7.    No Waiver.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Buyer under the Repurchase Agreement, the Guaranty, any of the other Transaction Documents or any other document, instrument or agreement executed and/or delivered in connection therewith.
8.    Headings.  Each of the captions contained in this Amendment are for the convenience of reference only and shall not define or limit the provisions hereof.
9.    Counterparts.  This Amendment may be executed in any number of counterparts, and all such counterparts shall together constitute the same agreement.  Signatures delivered by email (in PDF format) shall be considered binding with the same force and effect as original signatures.
10.    Governing Law.  This Amendment shall be governed in accordance with the terms and provisions of Article 19 of the Repurchase Agreement.

[No Further Text on this Page; Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized representatives as of the day and year first above written and effective as of the Effective Date.

	
			
	 
	 
	SELLER:
 CB LENDER LLC, 
a Delaware limited liability company
By:_/s/ G. Douglas Lanois____________ 
Name: G. Douglas Lanois    
Title: Chief Financial Officer

	 
	 
	 

	
	
	 

[SIGNATURES PAGES CONTINUE ON NEXT PAGE]

    

GUARANTOR:
TREMONT MORTGAGE TRUST,
a Maryland real estate investment trust

By:  /s/ G. Douglas Lanois_________
Name: G Douglas Lanois
Title: Chief Financial Officer

[SIGNATURES PAGES CONTINUE ON NEXT PAGE] 

    

BUYER:
CITIBANK, N.A. 

 
By:  /s/ Richard B. Schlenger__________ 
       Name: Richard B. Schlenger 
       Title: Authorized Signatory

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