Document:

Exhibit 10.1

INDEMNIFICATION AGREEMENT

This Indemnification Agreement ("Agreement") is made as of ________ __, 20__ by and between ePlus inc., a Delaware corporation (the "Company"), and ______________, member of the Board of Directors of the Company ("Indemnitee").  This Agreement supersedes and replaces any and all previous Agreements between the Company and Indemnitee covering the subject matter of this Agreement.

RECITALS

WHEREAS, the Board of Directors of the Company (the "Board") believes that highly competent persons have become more reluctant to serve publicly-held corporations as [directors] [officers] or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

WHEREAS, the Board has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.  The Bylaws and Certificate of Incorporation of the Company require indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the "DGCL").  The Bylaws, Certificate of Incorporation, and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;

WHEREAS, the uncertainties relating to such insurance and to indemnification may increase the difficulty of attracting and retaining such persons;

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws,  Certificate of Incorporation and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and

WHEREAS, Indemnitee does not regard the protection available under the Bylaws, Certificate of Incorporation, and insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve or continue to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1.  Services to the Company.  Indemnitee agrees to serve as a director of the Company.  Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position.  This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.

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Section 2.  Definitions.  As used in this Agreement:

(a)  References to "agent" shall mean any person who is or was a director, officer, or employee of the Company or a subsidiary of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.

(b)  A "Change in Control" shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

i.  Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company's then outstanding securities unless the change in relative beneficial ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

ii.  Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

iii.  Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

iv.  Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets; and

v.  Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

For purposes of this Section 2(b), the following terms shall have the following meanings:

	 	
(A)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

	 
	 	
(B)  "Person" shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

	 
	 	
(C)  "Beneficial Owner" shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

 

	 

(c)  "Corporate Status" describes the status of a person who is or was a director, officer, employee or agent of the Company or of any other corporation, limited liability company, partnership or joint venture, trust or other enterprise which such person is or was serving at the request of the Company.

(d)  "Disinterested Director" shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

(e)  "Enterprise" shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, employee, agent or fiduciary.

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(f)  "Expenses" shall include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding.  Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14(d) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, by litigation or otherwise.  The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee's counsel as being reasonable in the good faith judgment of such counsel shall be presumed conclusively to be reasonable.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(g)  "Independent Counsel" shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.  The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

(h)  "Potential Change in Control" means the occurrence of any of the following events: (i) the Company enters into any written or oral agreement, undertaking or arrangement, the consummation of which would result in the occurrence of a Change in Control; (ii) any Person or the Company publicly announces an intention to take or consider taking actions which if consummated would constitute a Change in Control; (iii) any Person who becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 5% or more of the combined voting power of the Company's then outstanding securities entitled to vote generally in the election of directors increases his beneficial ownership of such securities by 5% or more over the percentage so owned by such Person on the date hereof; or (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred

(i)  The term "Proceeding" shall include any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee's part while acting pursuant to Indemnitee's Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement.  If the Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall be considered a Proceeding under this paragraph.

(j)  Reference to "other enterprise" shall include employee benefit plans; references to "fines" shall include any excise tax assessed with respect to any employee benefit plan; references to "serving at the request of the Company" shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner Indemnitee  reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Company" as referred to in this Agreement.

Section 3.  Indemnity in Third-Party Proceedings.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor, by reason of Indemnitee's Corporate Status.  Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding had no reasonable cause to believe that Indemnitee's conduct was unlawful.  The parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Certificate of Incorporation, the Bylaws, vote of its stockholders or disinterested directors or applicable law.

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Section 4.  Indemnity in Proceedings by or in the Right of the Company.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor by reason of Indemnitee's Corporate Status.  Pursuant to this Section 4, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company.  No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court (as hereinafter defined) or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

Section 5.  Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law.  For purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 6.  Indemnification For Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a witness or otherwise asked to participate in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.

Section 7.  Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

Section 8.  Additional Indemnification.

(a)  Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) by reason of Indemnitee's Corporate Status.

(b)  For purposes of Section 8(a), the meaning of the phrase "to the fullest extent permitted by applicable law" shall include, but not be limited to:

i.  to the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and

ii.  to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

Section 9.  Exclusions.  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnification payment in connection with any claim involving Indemnitee:

(a)  for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

(b)  for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as defined in Section 2(b) hereof) or similar provisions of state statutory law or common law, (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or

(c)  except as provided in Section 14(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

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Section 10.  Advances of Expenses.  Notwithstanding any provision of this Agreement to the contrary (other than Section 14(d)), the Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding (or any part of any Proceeding) not initiated by Indemnitee or any Proceeding initiated by Indemnitee with the prior approval of the Board as provided in Section 9(c), and such advancement shall be made within twenty (20) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding.  Advances shall be unsecured and interest free.  Advances shall be made without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement.  In accordance with Section 14(d), advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.  The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes to repay the amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.  No other form of undertaking shall be required other than the execution of this Agreement.  This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 9.

Section 11.  Procedure for Notification and Defense of Claim.

(a)  Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof.  The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding.  To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding.  The omission by Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.

(b)  The Company will be entitled to participate in the Proceeding at its own expense.

Section 12.  Procedure Upon Application for Indemnification.

(a)  Upon written request by Indemnitee for indemnification pursuant to Section 11(a), a determination, if required by applicable law, with respect to Indemnitee's entitlement thereto shall be made in the specific case:  (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.  Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any costs or Expenses (including attorneys' fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.  The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied.

(b)  In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be selected as provided in this Section 12(b).  If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected.  If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit.  If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 12(a) hereof.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

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Section 13.  Presumptions and Effect of Certain Proceedings.

(a)  In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.  Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

(b)  Subject to Section 14(e), if the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 13(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) of this Agreement.

(c)  The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful.

(d)  For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Enterprise.  The provisions of this Section 13(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

(e)  The knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

Section 14.  Remedies of Indemnitee.

(a)  Subject to Section 14(e), in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12(a) of this Agreement within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5, 6 or 7 or the second to last sentence of Section 12(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 8 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of Indemnitee's entitlement to such indemnification or advancement of Expenses.  Alternatively, Indemnitee, at Indemnitee's option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such Proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such Proceeding pursuant to this Section 14(a); provided, however, that the foregoing clause shall not apply in respect of a Proceeding brought by Indemnitee to enforce Indemnitee's rights under Section 5 of this Agreement.  The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration.

6

(b)  In the event that a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 14 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

(c)  If a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

(d)  The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder.  The Company shall, to the fullest extent permitted by law, indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.

(e)  Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

Section 15.  Establishment of Trust.

(a)  In the event of a Potential Change in Control or a Change in Control, the Company shall, upon written request by Indemnitee, create a trust for the benefit of Indemnitee (the "Trust") and from time to time upon written request of Indemnitee shall fund such Trust in an amount sufficient to satisfy the reasonably anticipated indemnification and advancement obligations of the Company to the Indemnitee in connection with any Proceeding for which Indemnitee has demanded indemnification and/or advancement prior to the Potential Change in Control or Change in Control (the "Funding Obligation"). The trustee of the Trust (the "Trustee") shall be a bank or trust company or other individual or entity chosen by the Indemnitee and reasonably acceptable to the Company. Nothing in this Section 15 shall relieve the Company of any of its obligations under this Agreement.

(b)  The amount or amounts to be deposited in the Trust pursuant to the Funding Obligation shall be determined by mutual agreement of the Indemnitee and the Company or, if the Company and the Indemnitee are unable to reach such an agreement, by Independent Counsel selected in accordance with Section 12(b) of this Agreement. The terms of the Trust shall provide that, except upon the consent of both the Indemnitee and the Company, upon a Change in Control: (i) the Trust shall not be revoked, or the principal thereof invaded, without the written consent of the Indemnitee; (ii) the Trustee shall advance, to the fullest extent permitted by applicable law, within two (2) business days of a request by the Indemnitee; (iii) the Trust shall continue to be funded by the Company in accordance with the Funding Obligation; (iv) the Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise; and (v) all unexpended funds in such Trust shall revert to the Company upon mutual agreement by the Indemnitee and the Company or, if the Indemnitee and the Company are unable to reach such an agreement, by Independent Counsel selected in accordance with Section 12(b) of this Agreement, that the Indemnitee has been fully indemnified under the terms of this Agreement. The Trust shall be governed by New York law (without regard to its conflicts of laws rules) and the Trustee shall consent to the exclusive jurisdiction of Chancery Court of the State of Delaware (the "Delaware Court"), in accordance with Section 24 of this Agreement.

Section 16.  Non-exclusivity; Survival of Rights; Insurance; Subrogation.

(a)  The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by  Indemnitee in Indemnitee's Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws, Certificate of Incorporation, and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

(b)  To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.  Indemnitee agrees to assist the Company efforts to do so, including compliance with the terms of such policies.

7

(c)  In the event of any payment made by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

(d)  The Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such other corporation, limited liability company, partnership, joint venture, trust or other enterprise.

Section 17.  Duration of Agreement.  This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director of the Company or (b) one (1) year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any Proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement relating thereto.  The indemnification and advancement of Expenses rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise, and shall inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

Section 18.  Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 19.  Enforcement.

(a)  The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as a director or officer of the Company.

(b)  This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

Section 20.  Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.

Section 21.  Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.

8

Section 22.  Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received:

(a)  If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company.

(b)  If to the Company to:

ePlus inc.

13595 Dulles Technology Drive

Herndon, VA 20171

Attention:  Erica S. Stoecker, General Counsel

Fax:  (703) 984-8720

or to any other address as may have been furnished to Indemnitee by the Company.

Section 23.  Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

Section 24.  Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or Proceeding arising out of or in connection with this Agreement shall be brought only in the "Delaware Court" and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or Proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or Proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or Proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

Section 25.  Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 26.  Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.  The headings of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

	
ePlus inc.

	 	
INDEMNITEE

	 	 	 
	 	 	 
	 	 	 
	
By: 

	 	 
	
Name:

	 	
Name:

	
Title:

	 	 
	 	 	 

 

 

 

9EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

STOCKHOLDERS AGREEMENT 

BETWEEN 
 EMPIRE STATE
REALTY TRUST, INC. 
 AND 

Q REIT HOLDING LLC 

Dated as of August 23, 2016 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE 1 DEFINED TERMS
	  	 	1	  
			
	 Section 1.1
	 	 Defined Terms
	  	 	1	  
	 Section 1.2
	 	 Table of Defined Terms
	  	 	4	  
		
	 ARTICLE 2 TOP UP RIGHTS
	  	 	5	  
			
	 Section 2.1
	 	 Large Issuance Top Up Right
	  	 	5	  
	 Section 2.2
	 	 Quarterly Top Up Right
	  	 	6	  
	 Section 2.3
	 	 Additional Top Up Right Terms
	  	 	7	  
		
	 ARTICLE 3 TRANSFER RESTRICTIONS; ORDINARY COURSE
	  	 	9	  
			
	 Section 3.1
	 	 Transfer Restrictions
	  	 	9	  
	 Section 3.2
	 	 Transfer to Affiliates
	  	 	9	  
	 Section 3.3
	 	 Ordinary Course
	  	 	9	  
	 Section 3.4
	 	 QH Obligations
	  	 	10	  
		
	 ARTICLE 4 VOTING AGREEMENT
	  	 	10	  
			
	 Section 4.1
	 	 Voting Arrangements
	  	 	10	  
	 Section 4.2
	 	 Irrevocable Proxy Coupled With Interest
	  	 	11	  
		
	 ARTICLE 5 RIGHT OF FIRST OFFER; ACCESS TO ADVICE AND EXPERTISE
	  	 	11	  
			
	 Section 5.1
	 	 Right of First Offer
	  	 	11	  
		
	 ARTICLE 6 TAX-RELATED PROVISIONS
	  	 	14	  
			
	 Section 6.1
	 	 Representations of the Company
	  	 	14	  
	 Section 6.2
	 	 FIRPTA Capital Gains
	  	 	15	  
	 Section 6.3
	 	 Notice of Tax Claims
	  	 	16	  
	 Section 6.4
	 	 Procedural Matters
	  	 	16	  
	 Section 6.5
	 	 Domestically Controlled Status
	  	 	17	  
	 Section 6.6
	 	 Additional Tax-Related Provisions
	  	 	17	  
	 Section 6.7
	 	 No Tax Representations
	  	 	18	  
		
	 ARTICLE 7 GENERAL PROVISIONS
	  	 	18	  
			
	 Section 7.1
	 	 Termination
	  	 	18	  
	 Section 7.2
	 	 Notifications
	  	 	18	  
	 Section 7.3
	 	 Material Compliance
	  	 	18	  
	 Section 7.4
	 	 Stockholder Group Representative
	  	 	19	  
	 Section 7.5
	 	 Subsidiary Obligations
	  	 	20	  
	 Section 7.6
	 	 Governing Law; Arbitration
	  	 	20	  
	 Section 7.7
	 	 Counterparts
	  	 	21	  
	 Section 7.8
	 	 Headings
	  	 	21	  
	 Section 7.9
	 	 Severability
	  	 	21	  
	 Section 7.10
	 	 Entire Agreement; Amendments; Waiver
	  	 	21	  
	 Section 7.11
	 	 Notices
	  	 	21	  

							
	 Section 7.12
	 	 Successors and Assigns
	  	 	22	  
	 Section 7.13
	 	 No Third Party Beneficiaries
	  	 	22	  
	 Section 7.14
	 	 Further Assurances
	  	 	22	  
	 Section 7.15
	 	 Specific Performance
	  	 	22	  
	 Section 7.16
	 	 Costs and Expenses
	  	 	23	  

 STOCKHOLDERS AGREEMENT 

This STOCKHOLDERS AGREEMENT (as the same may be amended, modified or supplemented from time to time, this “Agreement”), dated
as of August 23, 2016, is made and entered into by and among Empire State Realty Trust, Inc., a Maryland corporation (the “Company”), Q REIT Holding LLC, a Qatar Financial Centre limited liability company (the
“Stockholder”), and Qatar Holding LLC, a Qatar Financial Centre limited liability company (“QH”) (solely for the purpose of Section 3.4 hereof). 

WHEREAS, concurrently with the execution of this Agreement, the Stockholder and the Company are entering into a Securities Purchase
Agreement (the “Securities Purchase Agreement”) pursuant to which, among other things, the Company has agreed to issue and sell to the Stockholder, and the Stockholder has agreed to purchase from the Company, that aggregate number
of shares of the Company’s Class A common stock, par value $0.01 per share (the “Class A Common Stock”), set forth opposite the Stockholder’s name in column (3) on Schedule 1 hereto (the
“Purchased Shares”), upon the terms and conditions set forth therein; 
 WHEREAS, the Stockholder and the Company
are also entering into a Registration Rights Agreement, an Ownership Limitation Waiver and related Purchaser Representation Letter, each of even date herewith (such agreements and documents, together with the Securities Purchase Agreement, the
“Related Documents”); and 
 WHEREAS, in connection with the Related Documents, the Company and the Stockholder are
entering into this Agreement to provide certain rights and obligations on the terms and subject to the conditions set forth herein. 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows: 
 ARTICLE 1 

DEFINED TERMS 

Section 1.1 Defined Terms. The following definitions shall be for all purposes, unless otherwise clearly indicated to the
contrary, applied to the terms used in this Agreement. 
 “Affiliate” means, with respect to any specified Person, any
other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person. 

“Board” means the Board of Directors of the Company. 

“Business Day” means any day except a day on which commercial banks in Doha, Qatar are authorized or required by law to be
closed. 
 “Closing” shall have the meaning given to such term in the Securities Purchase Agreement. 

 “Closing Date” shall have the meaning given to such term in the Securities
Purchase Agreement. 
 “Company Securities” means (i) Equity Securities, (ii) Convertible Company Securities,
(iii) Voting Securities, (iv) any preferred equity or debt securities and instruments of the Company, the Operating Partnership or any of their subsidiaries, and (v) any options, warrants or rights to acquire any of the foregoing. For
the avoidance of doubt, “Company Securities” shall include any securities exposure which is held in derivative form. 

“Convertible Company Securities” means any Company Securities (other than Equity Securities) that provide the holder a right
to acquire Equity Securities of the Company or the Operating Partnership, including options, warrants and debt or preferred securities that are convertible into or exchangeable for any Equity Securities. 

“Equity Securities” means any common equity securities of the Company or the Operating Partnership, irrespective of voting
interests, that entitle its holder to receive common dividends and distributions as and when declared and paid by the Board and/or the Operating Partnership (including where subject to applicable vesting or earning), which as of the date of this
Agreement consist of Class A Common Stock, Class B Common Stock, OP units and LTIP units. 
 “fully diluted” or
“fully diluted economic interests” means (irrespective of the meaning of such term(s) under United States generally accepted accounting principles) as determined inclusive of all outstanding Equity Securities. 

“Group Owner” means the governmental authority of the State of Qatar established by Emiri Decree No. 22 of 2005. 

“Initial Ownership Percentage” means 9.9% of the fully diluted economic interests of the Company. 

“LTIP units” means long term incentive units of partnership interest in the Operating Partnership. 

“Minimum Ownership Percentage” means 5.0% of the fully diluted economic interests in the Company (excluding from the
denominator any Net New Securities issued in the current or prior calendar quarter for which corresponding Quarterly Top Up Shares remain subject to potential acquisition by the Stockholder pursuant to the Quarterly Top Up Right described in
Section 2.2); provided, that to the extent (i) the Stockholder Group is unable to purchase additional Class A Common Stock without violating the terms of the Ownership Limitation Waiver (the “Prohibited
Shares”), and (ii) the Stockholder Group has owned, at all times prior to such inability, Class A Common Stock in an amount at least equal to the Minimum Ownership Percentage (either through the exercise (in full or in part) by
the Stockholder of Top Up Rights under this Agreement or, in lieu of any Top Up Right, otherwise through the acquisition of Class A Common Stock in public transactions or otherwise from third parties effected contemporaneous with the time for
exercise of such Top Up Right), then the Stockholder Group’s ownership of Class A Common Stock shall be computed for purposes of this sentence as if the Stockholder Group owned the Prohibited Shares. 

  
 2 

 “New Equity Securities” means any Equity Securities that the Company or the
Operating Partnership issues or sells at any time or from time to time following the Closing Date, except for any Equity Securities issued upon conversion, exchange or exercise of other Equity Securities (including Class B Common Stock, OP units and
LTIP units). 
 “NYSE” means the New York Stock Exchange. 

“Operating Partnership” means Empire State Realty OP, L.P., a Delaware limited partnership. 

“OP units” means common units of limited partnership interests in the Operating Partnership. 

“Ownership” means, with respect to any security, the ownership of such security by any “Beneficial Owner,” as such
term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that, in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other
securities, whether such right is currently exercisable or is exercisable only after the passage of time. The terms “Own,” “Owned” and “Owner” shall have correlative meaning. 

“Ownership Limitation Waiver” means that certain Agreement Regarding Waiver of Ownership Limit between the Company and the
Stockholder of even date hereof pursuant to which the Company granted to the Stockholder Group a limited waiver from the ownership limitation provisions set forth in Section 7.2.1(a)(i)(1)-(2) of the Company’s Articles of Amendment
and Restatement. 
 “Person” means a natural person or any legal, commercial or governmental entity, such as, but not
limited to, a corporation, general partnership, joint venture, limited partnership, limited liability company, limited liability partnership, trust, business association, group acting in concert, or other legal personal representative, regulatory
body or agency, government or governmental agency, authority or entity however designated or constituted. 
 “Registration Rights
Agreement” means that certain Registration Rights Agreement, of even date herewith, by and between the Company and the Stockholder. 

“SEC” means the United States Securities and Exchange Commission. 

“Securities Act” means the U.S. Securities Act of 1933, as amended (or any successor regulation). 

“Stockholder Group” means, collectively, Group Owner and each of its directly or indirectly wholly owned subsidiaries
(including the Stockholder) over which Group Owner exercises control with respect to the acquisition and disposition of assets or, with respect to assets that are voting securities, the voting of those securities. 

  
 3 

 “Transfer” means (i) any direct or indirect offer, sale, lease, assignment,
encumbrance, pledge, grant of a security interest, hypothecation, disposition or other transfer (by operation of law or otherwise), either voluntary or involuntary, or entry into any contract, option or other arrangement or understanding with
respect to any offer, sale, lease, assignment, encumbrance, pledge, hypothecation, disposition or other transfer (by operation of law or otherwise), of any security or interest in any security or (ii) in respect of any security or interest in
any security, to enter into any swap or any other agreement, transaction or series of transactions that hedges or transfers, in whole or in part, directly or indirectly, the economic consequences of ownership of such security or interest in such
security, whether any such swap, agreement, transaction or series of transaction is to be settled by delivery of securities, in cash or otherwise. “Transferred,” “Transferor” and “Transferee” and
similar expressions shall have corresponding meanings. 
 “Voting Securities” means Class A Common Stock, Class B
Common Stock and all other securities of the Company or its subsidiaries entitled to vote on any matter coming before the stockholders of the Company for a vote from time to time (whether at a meeting or by written consent), disregarding the effect
of Section 4.1(a). 
 Section 1.2 Table of Defined Terms. Terms that are not defined in Section 1.1 have
the respective meanings set forth in the following Sections: 
  

			
	 DEFINED TERM
	  	
SECTION NO.

	Agreement	  	Preamble
	Applicable Investment	  	Section 6.2(a)
	Class A Common Stock	  	Recitals
	Code	  	Section 5.1(e)
	Company	  	Preamble
	Excess Voting Securities	  	4.1(a)
	FIRPTA Capital Gain Dividends	  	Section 6.2(a)
	Investment Opportunity	  	Section 5.1(a)
	Joint Venture	  	Section 5.1(a)
	Large Issuance	  	2.1(a)
	Large Issuance Exercise Notice	  	2.1(b)
	Large Issuance Notice	  	2.1(b)
	Large Issuance Top Up Right	  	2.1(a)
	Material Compliance	  	Section 7.3
	Materially Different	  	Section 5.1(f)
	Net New Securities	  	2.2(b)
	Purchased Shares	  	Recitals
	QH	  	Preamble
	Quarterly Top Up Exercise Notice	  	2.2(d)
	Quarterly Top Up Notice	  	2.2(b)
	Quarterly Top Up Right	  	2.2(a)
	Quarterly Top Up Shares	  	2.2(b)
	Related Documents	  	Recitals
	ROFO Notice	  	Section 5.1(b)

  
 4 

			
	 DEFINED TERM
	  	
SECTION NO.

	ROFO Reply Notice	  	Section 5.1(c)
	ROFO Right	  	Section 5.1(a)
	Securities Purchase Agreement	  	Recitals
	Stockholder	  	Preamble
	Stockholder Representative	  	Section 7.4(a)
	Tax Claim	  	Section 6.3
	Top Up Right	  	2.2(a)
	Top Up Shares	  	2.3(d)

 ARTICLE 2 

TOP UP RIGHTS 

Section 2.1 Large Issuance Top Up Right. 

(a) Large Issuance Top Up Right. For so long as the Stockholder Group continuously Owns at least the Minimum Ownership Percentage and is
in Material Compliance, then in connection with each issuance of New Equity Securities with an aggregate value equal to or in excess of $1.0 million (a “Large Issuance”), the Stockholder shall have the right (in accordance with this
Section 2.1), but not the obligation, to purchase from the Company, and the Company shall have the obligation to sell to the Stockholder, following the closing of the Large Issuance, that number of shares of Class A Common Stock
equal to the Initial Ownership Percentage multiplied by the number of New Equity Securities issued in the Large Issuance (such right, the “Large Issuance Top Up Right”). 

(b) Procedures. The Company will give the Stockholder written notice (a “Large Issuance Notice”) of its intention to
issue New Equity Securities in a Large Issuance as soon as practicable, but in no event later than the time authorization for such Large Issuance is granted by the Board. The Large Issuance Notice shall describe the price (or range of prices),
anticipated amount of securities, timing and other material terms of the Large Issuance, as well as the number of shares of Class A Common Stock that the Stockholder is entitled to purchase pursuant to the Large Issuance Top Up Right. The
Stockholder will have ten (10) Business Days from the date of the Large Issuance Notice to advise the Company in writing (a “Large Issuance Exercise Notice”) that it intends to exercise its Large Issuance Top Up Right and
acquire the applicable number of shares of Class A Common Stock. Subject to Section 2.3 below, a Large Issuance Top Up Right may be exercised, in whole or in part. If the Stockholder delivers a Large Issuance Exercise Notice with
respect to a Large Issuance, then closing for the Stockholder’s Large Issuance Top Up Right will be contingent upon, and will take place simultaneously with, or as soon as practicable after, the closing of such Large Issuance. Failure by the
Stockholder to deliver a Large Issuance Exercise Notice within ten (10) Business Days from the date of delivery of the Large Issuance Notice shall be deemed a waiver of the Stockholder’s Large Issuance Top Up Right with respect to such
Large Issuance. The Stockholder agrees that it will, and will cause each member of the Stockholder Group to, (i) maintain the confidentiality of any information included in any Large Issuance Notice delivered by the Company unless otherwise
required by 

  
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law or subpoena and (ii) after receiving written notice thereof, not effect any acquisition or disposition of any Company Securities until the public announcement of the Large Issuance
referenced in the Large Issuance Notice (other than the acquisition of Class A Common Stock pursuant to the Large Issuance Top Up Right). 

(c) The per-share purchase price for the Class A Common Stock issued by the Company pursuant to the Large Issuance Top Up Right shall
equal (i) in the case of issuances pursuant to the Company’s equity compensation plans, the average closing price of the Class A Common Stock as reported by the NYSE during the five (5) consecutive trading days immediately
preceding the delivery by the Company of the Large Issuance Notice, and (ii) in the case of all other issuances, the per-share or per-unit purchase price, consideration or implied value paid by investors for the New Equity Securities being
issued in the Large Issuance (in each case, disregarding any underwriting, placement agent or other fees and commissions borne by the Company in connection with such Large Issuance). 

(d) For the avoidance of doubt, the Company shall not be obligated to consummate any proposed Large Issuance, nor be liable to the Stockholder
if the Company fails to consummate any proposed Large Issuance for whatever reason. 
 Section 2.2 Quarterly Top Up Right. 

(a) Quarterly Top Up Right. For so long as the Stockholder Group continuously Owns at least the Minimum Ownership Percentage and is in
Material Compliance, the Stockholder shall have the right (in accordance with this Section 2.2), but not the obligation, to purchase from the Company, and the Company shall have the obligation to sell to the Stockholder, in each calendar
quarter following the Closing, an aggregate number of shares of Class A Common Stock equal to the Quarterly Top Up Shares (defined below) for the prior quarter (such right, the “Quarterly Top Up Right”). The Large Issuance Top
Up Right and the Quarterly Top Up Right are sometimes referred to herein collectively as the “Top Up Right.” 
 (b)
Quarterly Top Up Notice. Within thirty (30) days after the end of each calendar quarter following the Closing, and until the expiration of the Quarterly Top Up Right as provided in Section 2.2(a) above, the Company shall
provide to the Stockholder a notice (each, a “Quarterly Top Up Notice”) disclosing the aggregate number of New Equity Securities issued by the Company in such calendar quarter (exclusive of any New Equity Securities issued in a
Large Issuance during such calendar quarter), less (i) any New Equity Securities reacquired by the Company during such calendar quarter (including any OP units reacquired by the Company for cash in connection with the redemption of such OP
units in accordance with their terms), (ii) any shares of unvested restricted stock or LTIP units originally issued pursuant to an Equity Incentive Plan that are forfeited or repurchased by the Company during such quarter, and (iii) any
other adjustments necessary in order to provide an accurate reflection of the changes in capitalization during such calendar quarter (such number, less the items described in clauses (i), (ii) and (iii), being referred to as the
“Net New Securities” for such quarter); provided, however, that the Net New Securities for the calendar quarter ended September 30, 2016 shall equal the number of Net New Securities issued by the Company for the period
beginning on the Closing Date and ending on September 30, 2016. The “Quarterly Top Up Shares” for a given calendar quarter shall equal that number of shares of Class A Common Stock equal to (i) the Initial Ownership
Percentage, multiplied by (ii) 110.90% of the Net New Securities issued during such calendar quarter. 

  
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 (c) Certificate from Stockholder. In order to assist the Company in calculating the number
of Quarterly Top Up Shares that the Stockholder will have the option to purchase in any given calendar quarter, the Company shall notify the Stockholder, at the end of any given calendar quarter, of the aggregate number of shares of Class A
Common Stock reflected on the books and records of the Company’s transfer agent as held by the Stockholder Group as at the end of such calendar quarter, and the Stockholder shall, within ten (10) Business Days following receipt of such
notice, provide the Company with a certificate stating the number of shares of Class A Common Stock (calculated on a fully diluted basis) that the Stockholder Group Owned as of the end of such calendar quarter. 

(d) Quarterly Top Up Exercise Notice. Within ten (10) Business Days after the Stockholder receives a Quarterly Top Up Notice from
the Company, the Stockholder, if it so elects, shall provide the Company with written notice (each, a “Quarterly Top Up Exercise Notice”) that it is exercising the Quarterly Top Up Right for the applicable quarter. Subject to
Section 3.3 below, a Quarterly Top Up Right may be exercised, in whole or in part. 
 (e) Issuance of Common Stock.
Subject to the terms and conditions hereof, closings of the sale and issuance of the Class A Common Stock to be purchased by the Stockholder each quarter under this Agreement shall occur on the tenth (10th) Business Day following the Stockholder’s delivery of a Quarterly Top Up Exercise Notice to the Company or such other day as is agreed by the parties hereto. 

(f) Purchase Price. The per-share purchase price for the Class A Common Stock issued by the Company pursuant to the Quarterly Top
Up Right in a given quarter shall be included in the Quarterly Top Up Notice and shall equal (i) in the case of issuances pursuant to the Company’s equity compensation plans, the average closing price of the Class A Common Stock as
reported by the NYSE during the five (5) consecutive trading days immediately preceding such issuances, and (ii) in the case of all other issuances, the weighted average per-share or per-unit purchase price, consideration or implied value
paid by investors for the New Equity Securities issued (in each case, disregarding any underwriting, placement agent or other fees and commissions borne by the Company). 

Section 2.3 Additional Top Up Right Terms. 

(a) Ownership Limitation. Notwithstanding anything in this Article 2 to the contrary, in the event the exercise of a Top Up Right
hereunder would cause the Stockholder Group’s Ownership of Class A Common Stock (giving effect to purchases under the Top Up Right) to violate the terms of the Ownership Limitation Waiver, then the number of shares of Class A Common
Stock specified in the relevant Large Issuance Notice or Quarterly Top Up Notice, as applicable, shall automatically be deemed reduced to that number of shares of Class A Common Stock that the Stockholder could acquire without causing the
Stockholder Group to violate the terms of the Ownership Limitation Waiver. 

  
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 (b) Stockholder Group. Notwithstanding anything herein to the contrary, the Stockholder
shall be entitled to exercise Top Up Rights pursuant to this Article 2 in its own capacity as well as on behalf of another member of the Stockholder Group, in which case references in this Section 2.3 to the Stockholder shall be
deemed to be references to such other member of the Stockholder Group, unless the context otherwise requires. For the avoidance of doubt and notwithstanding anything herein to the contrary, in no event shall the Stockholder Group, collectively, have
the right to exercise Top Up Rights to acquire Top Up Shares in an amount that is, in the aggregate, in excess of the number of Top Up Shares to which the Stockholder would be entitled to acquire hereunder individually in connection with any given
Top Up Right. 
 (c) Other Exceptions. Notwithstanding anything in this Article 2 to the contrary, no Top Up Right shall apply
to issuances of New Equity Securities with respect to which the Company reasonably determines in good faith that the exercise of such Top Up Right would violate applicable law or would require the Company to obtain stockholder approval pursuant to
applicable rules and regulations of the NYSE and the SEC. 
 (d) Delivery of Shares. At each closing for any shares of Class A
Common Stock acquired by the Stockholder pursuant to a Top Up Right hereunder (collectively, “Top Up Shares”), the Company will, or will cause its transfer agent to, electronically transfer the Top Up Shares to be sold at such
closing to the Stockholder against payment by or on behalf of the Stockholder of the aggregate purchase price for the shares as provided herein by wire transfer to an account designated by the Company, or by such other means as shall be mutually
agreeable to the Stockholder and the Company. Each closing shall take place at the offices of the Company or by mail or email facilities or such other place or means as the Company and the Stockholder may agree, subject to the delivery by the
Stockholder of customary investor closing certificates and other documents for private placements of this nature. 
 (e) Securities Law
Matters. The Stockholder understands and agrees that any Top Up Shares acquired by it hereunder are being offered and issued to it in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act
and Rule 506 of Regulation D promulgated thereunder. No U.S. federal or state agency or any other government or governmental agency has passed or will pass on, or made or will make any recommendation or endorsement of, the Top Up Shares or the
fairness or suitability of an investment in the Top Up Shares. The Stockholder is and will be an “accredited investor”, as that term is defined in Rule 501(a) of Regulation D under the Securities Act, at any time it acquires Top
Up Shares hereunder. The Stockholder understands that its investment in the Top Up Shares involves a high degree of risk, and the Stockholder is able to afford a complete loss of such investment. The Stockholder has or will seek such accounting,
legal and tax advice as necessary to make an informed investment decision with respect to its acquisition of the Top Up Shares. The Stockholder will subscribe for the Top Up Shares for its own account for investment and not with a view toward, or
for resale in connection with, the public sale or distribution thereof. The Stockholder understands that the Top Up Shares will be “restricted securities” under applicable U.S. federal securities laws and that the Securities Act and the
rules and regulations promulgated thereunder provide in substance that the Stockholder may dispose of the Top Up Shares only pursuant to an effective registration statement under the Securities Act or an exemption therefrom, and the Stockholder
understands that, except as provided in the 

  
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Registration Rights Agreement, the Company has no obligation or intention to register the offer and resale of any of the Top Up Shares, or to take action so as to permit sales pursuant to the
Securities Act (including Rule 144 thereunder). Consequently, the Stockholder understands that the Stockholder may bear the economic risks of its investment in the Top Up Shares for an indefinite period of time. The Stockholder understands that
the certificates or other instruments representing any Top Up Shares may bear legends as required by the Company’s charter documents, the Securities Purchase Agreement, the Securities Act and the “blue sky” laws of any state as
reasonably determined by the Company (and a stop-transfer order may be placed against transfer of such share certificates). Each of the Company and the Stockholder acknowledge that it may have reporting obligations under applicable law with respect
to the exercise of Top Up Rights hereunder. 
 ARTICLE 3 

TRANSFER RESTRICTIONS; ORDINARY COURSE 

Section 3.1 Transfer Restrictions. The Stockholder shall not Transfer any portion of the Purchased Shares until the sixth-month
anniversary of the Closing. Beginning on the sixth-month anniversary of the Closing until the one-year anniversary of the Closing, the Stockholder shall not Transfer more than half of the Purchased Shares. Following the one year anniversary of the
Closing, all of the Purchased Shares shall be Transferable without restriction hereunder. 
 Section 3.2 Transfer to Affiliates.
Notwithstanding anything in this Agreement or the Related Documents to the contrary, the Stockholder shall be entitled to transfer any or all of the Purchased Shares to any member of the Stockholder Group without restriction and, subject to the
terms of Section 7.4 below, such member shall be entitled to exercise the rights of the Stockholder with respect such Purchased Shares hereunder, provided that any such transferee becomes a party to and assumes the obligations of the
Stockholder under this Agreement and the Related Documents with respect to such Purchased Shares without relieving the Stockholder of its obligations hereunder or thereunder. 

Section 3.3 Ordinary Course. The Stockholder hereby agrees that until the date on which the Stockholder Group Owns less than
(i) 9.8% of the Class A Common Stock of the Company and (ii) the Minimum Ownership Percentage, the Stockholder will, and will cause each member of the Stockholder Group to: 

(a) acquire and hold the shares of Class A Common Stock and any other Company Securities that it then Owns in the ordinary course of
business and not with the purpose nor with the effect of changing or influencing the control of the Company, nor in connection with or as a participant in any transaction having such purpose or effect; 

(b) not acquire any Company Securities if the aggregate amount of Company Securities the Stockholder Group would then Own would exceed the
Initial Ownership Percentage or any other ownership threshold applicable to the Stockholder Group under the Related Documents; 

  
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 (c) not acquire, agree to acquire or propose to acquire, in any manner, directly or indirectly,
any subsidiary, asset or property of the Company with a value, individually or in the aggregate, in excess of $50 million, other than as otherwise may be agreed by the Company in advance; and 

(d) not engage in or effect, directly or indirectly, or cause any other Person to engage or effect, directly or indirectly, any short sales or
similar transactions with respect to the Class A Common Stock or any other Equity Security (to the extent clearly identifiable as Equity Securities); 

provided, that in the event the Company publicly announces a definitive agreement to be acquired by a third party or the Board otherwise publicly
announces an intention to sell the Company to a third party, then, subject in all respects to the provisions of the Ownership Limitation Waiver, no member of the Stockholder Group shall be restricted hereunder from making an offer to the Board to
acquire the Company as a result of the provisions set forth in Section 3.3(a), Section 3.3(b) or Section 3.3(c). 

Section 3.4 QH Obligations. QH hereby agrees that in the case of the obligations, liabilities or commitments created by or on
behalf of any member of the Stockholder Group pursuant to any of Section 3.3, Section 4.1, Section 5.1(k), Section 6.6(b) and/or Section 7.4 of this Agreement, QH will, and/or will cause
such member of the Stockholder Group to, perform, honor or pay any such obligation, liability or commitment in accordance with the terms of this Agreement. 

ARTICLE 4 
 VOTING
AGREEMENT 
 Section 4.1 Voting Arrangements. 

(a) From and after the date of this Agreement, on any matter coming before the stockholders of the Company for a vote from time to time
(whether at a meeting or by written consent), the Stockholder Group may vote at its discretion up to that number of Voting Securities that represents up to a maximum of 9.90% of the total votes entitled to be cast on such matter, irrespective of
whether the Stockholder Group owns Voting Securities in excess of such amount on the relevant record date. With respect to any Voting Securities held by the Stockholder Group in excess of 9.90% of the total votes entitled to be cast on any matter
coming before the stockholders of the Company for a vote from time to time (whether at a meeting or by written consent) (any such Voting Securities, “Excess Voting Securities”), the Stockholder Group shall vote such Excess Voting
Securities (to the extent not already voted by the Board as proxy in accordance with Section 4.2), and such vote shall in any event be counted as if cast, in the same manner and proportion as the votes cast by the holders of Voting
Securities other than the Stockholder Group. 
 (b) Notwithstanding Section 4.1(a) above, the Stockholder Group shall vote all
Voting Securities Owned by it that are not Excess Voting Securities in favor of the election of each member of any slate of director nominees recommended by the Board. 

  
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 (c) For the avoidance of doubt, if subsequent to the date of this Agreement any Voting Securities
are (i) acquired by the Stockholder Group from the Company pursuant to the Top Up Rights, (ii) acquired by the Stockholder Group in the open market or otherwise, or (iii) issued by the Company to the Stockholder Group by reason of a
stock dividend, stock split, consolidation, reclassification or similar transaction, then such Voting Securities shall be subject to the voting arrangements described in this Article 4. 

(d) In furtherance of this Section 4.1, the Stockholder shall be, and shall cause each member of the Stockholder Group to be,
present in person or represented by proxy at all meetings of stockholders to the extent necessary so that all Voting Securities of the Company as to which they are entitled to vote shall be counted as present for the purpose of determining the
presence of a quorum at such meeting; provided, however, that the Stockholder, or any member of the Stockholder Group, shall not be required to be present or represented by proxy in the event a quorum would be satisfied in the absence
of such Stockholder or member of the Stockholder Group. 
 (e) Notwithstanding any provision in this Agreement to the contrary, in the event
of a breach by any member of the Stockholder Group of the voting arrangements described in this Article 4, the Company shall be entitled to seek an injunction enjoining any such breach and requiring specific performance. 

Section 4.2 Irrevocable Proxy Coupled With Interest. 

(a) The Stockholder hereby irrevocably designates and appoints the Board as the Stockholder’s sole and exclusive attorney-in-fact and
proxy, with full power of substitution and re-substitution, for and in the Stockholder’s name, to vote and exercise all voting and related rights (to the fullest extent the Stockholder is entitled to do so) with respect to the Excess Voting
Securities in the same manner and proportion as the votes cast by the holders of Voting Securities other than the Stockholder, on any matter coming before the stockholders of the Company for a vote from time to time (whether at a meeting or by
written consent). 
 (b) The irrevocable proxy and power of attorney granted by the Stockholder pursuant to this Section 4.2
is intended to be and shall be irrevocable to the full extent permitted by the Maryland General Corporation Law and is coupled with an interest sufficient in law to support an irrevocable power. 

(c) For the avoidance of doubt, the Transfer of any Voting Securities by the Stockholder pursuant to Section 3.2 hereof shall be
subject to such transferee providing its irrevocable proxy to the Company as provided in this Section 4.2. 
 ARTICLE 5

 RIGHT OF FIRST OFFER; ACCESS TO ADVICE AND EXPERTISE 

Section 5.1 Right of First Offer. 

(a) So long as the Stockholder Group is in Material Compliance, the Stockholder shall have a right of first offer (a “ROFO
Right”) to invest with the Company as a 

  
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joint venture partner on all future real estate asset investments and/or mergers and acquisitions initiated by the Company (including individual properties, portfolios, or real estate companies)
(each, an “Investment Opportunity”) for which the Company proposes to seek or otherwise include a joint venture partner. The Company shall present such Investment Opportunity to the Stockholder in accordance with the terms of this
Article 5 and, upon the Stockholder’s election, the Company and the Stockholder shall work in good faith to conclude the joint venture agreement on the terms of the ROFO Notice described below (each, a “Joint Venture”)
for the purpose of acquiring, owning, developing, managing and otherwise dealing with the applicable Investment Opportunity. The Company or its subsidiary will act as the general partner or manager of such ventures. 

(b) For any potential Investment Opportunity subject to the ROFO Right, the Company will provide the Stockholder with a written notice (a
“ROFO Notice”) consisting of an outline of the proposed Investment Opportunity, including the material economic, structural and legal terms being proposed (if known), and if requested, will provide the Stockholder (including its
representatives and advisors) with access to any and all due diligence materials and other information about the proposed Investment Opportunity in the Company’s possession or to which the Company has access (to the extent the Company is
legally permitted to provide such access), all of which will be subject to confidentiality obligations from the Stockholder (and its representatives and advisors) to the Company. 

(c) The Stockholder will then have five (5) Business Days to reply by written notice (a “ROFO Reply Notice”) to the
Company of its agreement to participate in the Investment Opportunity on the terms proposed, which ROFO Reply Notice will constitute the Stockholder’s and the Company’s irrevocable commitment to proceed promptly to conclude definitive
documentation with respect to the Investment Opportunity and the formation of the Joint Venture on the terms proposed in the ROFO Notice, it being agreed that if the Stockholder and the Company, negotiating in good faith, do not agree on
definitive documentation within the time which the Company reasonably determines is required to undertake the Investment Opportunity, then the Stockholder will be deemed to have declined to participate in the proposed Investment Opportunity. 

(d) At the time the Stockholder submits a ROFO Reply Notice in accordance with Section 5.1(c), the Stockholder may choose to limit
its participation in any proposed Joint Venture such that the Stockholder’s ownership will not exceed a 49% fully diluted interest (including the Stockholder’s deemed ownership through ownership of the Company’s Class A Common
Stock). At its discretion, the Company may choose to offer one or more other potential partners the opportunity to co-invest with the Company alongside the Stockholder to the extent of any remaining interests in the Joint Venture; provided,
that the economic terms offered to such co-investors are not Materially Different (as defined below) than the economic terms offered to the Stockholder. 

(e) The Company shall use commercially reasonable efforts to structure any Joint Venture in a manner that takes into account the tax
considerations of the Stockholder, including, to the extent practicable, organizing such Joint Venture as a “domestically controlled qualified investment entity”, as defined in Section 897(h)(4)(B) of the Internal Revenue Code of
1986, as amended (the “Code”), and the Treasury regulations promulgated thereunder. Neither 

  
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party will be obligated to enter into any Joint Venture in connection with an Investment Opportunity with the other party, other than on mutually agreed terms in accordance with the procedures
herein, and, in all cases, subject to tax, legal, regulatory and other due diligence. 
 (f) If (i) the Stockholder declines to
participate in the proposed Investment Opportunity, (ii) the Stockholder does not submit a ROFO Reply Notice within the time period specified in Section 5.1(c) above, or (iii) after the Stockholder submits a ROFO Reply Notice,
the Stockholder and the Company do not conclude definitive documentation within the time which the Company reasonably determines is required to undertake the Investment Opportunity, then the Company may proceed with third parties on such terms and
conditions as the Company deems appropriate in its sole discretion; provided, that if the economic terms that the Company presents or intends to present to third parties with respect to such Investment Opportunity are, taken as a whole,
Materially Different from those economic terms initially proposed to the Stockholder, then the Company must resubmit a ROFO Notice to the Stockholder. For purposes of this Section 5.1, “Materially Different”
economic terms means that, with respect to a third party investor, the overall transaction cost per unit of interest in the Investment Opportunity offered to such third party investor by the Company is less than 97.5% of the cost proposed to the
Stockholder in the ROFO Notice. 
 (g) Expiration of ROFO Right. 

(i) If the Stockholder and the Company shall not have consummated a Joint Venture transaction hereunder by the date that is the
fifth (5th) anniversary of the Closing, then the ROFO Right shall terminate on such date, unless the Stockholder and the Company shall mutually agree otherwise; 

(ii) If the Stockholder and the Company shall have consummated a Joint Venture transaction hereunder by the date that is the
fifth (5th) anniversary of the Closing, then the ROFO Right shall be extended for a further thirty (30) months from such date; and 

(iii) If the Stockholder and the Company shall have consummated a further Joint Venture transaction hereunder during such
thirty (30) month extension period (if any), then the ROFO Right shall be extended for a further thirty (30) months from the end of such initial extension period, following which the ROFO Right shall terminate. 

(h) Subject to any mutual agreement otherwise, each party shall bear its own costs and expenses with respect to the negotiation relating to a
proposed Investment Opportunity. 
 (i) The ROFO Right shall apply only if the Company decides, in its sole and absolute discretion, to seek
a joint venture partner on a particular Investment Opportunity. The ROFO Right shall not restrict the Company from pursuing, engaging in or acquiring any Investment Opportunity independently if the Company decides, in its sole and absolute
discretion, not to seek a joint venture partner on such Investment Opportunity, or from pursuing, engaging in or acquiring an Investment Opportunity with a joint venture partner other than the Stockholder during any period of time that the
exclusivity provisions described herein are not in 

  
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effect or as otherwise permitted by this Article 5. For the avoidance of doubt, the Company may invest in, and the ROFO Right shall not apply to, any joint venture of any kind brought
to the Company by a third party, and the Company shall be required to offer the Stockholder the opportunity to invest in such joint venture only if the Company decides, in its sole and absolute discretion, to seek a joint venture partner to share in
its portion of such third party Investment Opportunity. 
 (j) Notwithstanding anything herein to the contrary and subject to Section
7.4 hereof, the Stockholder shall be entitled to invest in any Joint Venture for which it is eligible to invest pursuant to this Article 5 in its own capacity as well as through any member of the Stockholder Group, in which case it
shall be deemed to be a Joint Venture between the Stockholder and the Company for all purposes of this Agreement; provided, for the avoidance of doubt, that nothing herein shall be deemed to give rise to more than one ROFO Right in any given
instance, in such aggregate amount(s) and pursuant to such terms as would be applicable hereunder to the Stockholder individually. 
 (k)
The Stockholder shall, and shall cause each member of the Stockholder Group and each of their respective officers, employees, partners, directors, managers, trustees and advisors to, (i) hold in confidence and trust any confidential and/or
non-public information provided or attributable to, or learned by them, in connection with the ROFO Right, and (ii) not use any such confidential and/or non-public information for any purpose other than in connection with the ROFO Right, in
each case unless otherwise required by law. 
 Section 5.2 For so long as the Stockholder Group maintains a fully diluted economic
interest in the Company equal to the Initial Ownership Percentage (calculated assuming the full exercise and consummation of any pending Top Up Rights) and is in Material Compliance, the Company or one of its subsidiaries shall, upon reasonable
request and advance notice, provide the Stockholder such advice and expertise as the Company may reasonably possess as same relates to current and future owned and managed real estate in New York City, New York, and other markets; provided,
that neither the Company nor any of its subsidiaries shall be obligated to provide the Stockholder with any confidential or proprietary information, or provide advice or expertise if providing such advice or expertise presents a conflict of interest
for the Company or the Company otherwise determines that providing such advice or expertise would conflict with any pre-existing obligations, agreements, fiduciary obligations or other commitments of or applicable to the Company or would violate
applicable law. 
 ARTICLE 6 

TAX-RELATED PROVISIONS 

Section 6.1 Representations of the Company. 

(a) The Company generally runs its business with the intent of generating the best returns for its investors over a long horizon. 

(b) Since the effective date of its formation, the Company’s business model has at all times included generating returns in the nature of
operating income and capital appreciation with a goal of generating the best returns for its investors, and the Company’s current intention is to continue to run its business in such a manner. 

  
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 (c) The Company has no current intention to dispose of any assets that would generate capital
gain dividends to its investors. 
 (d) The Board and senior management of the Company recognize, and seek to fulfill at all times, their
responsibilities to all investors in all matters, including without limitation capital transactions, operation and disposition of assets, and payment of dividends. 

Section 6.2 FIRPTA Capital Gains. 

(a) Indemnity. In the event that the Company declares and pays dividends on the Class A Common Stock attributable to capital
gain from the sale or exchange by the Company of United States real property interests within the meaning of Section 897(c) of the Code (the portion of such dividends that are so attributable, “FIRPTA Capital Gain
Dividends”), then the Company shall be obligated to indemnify the Stockholder in an amount equal to any applicable U.S. federal and state income and branch profits tax actually paid by the Stockholder on account of such FIRPTA Capital Gain
Dividends paid in respect of the Purchased Shares and any Top Up Shares; provided, that such indemnity obligation shall be applicable only to the extent (i) FIRPTA Capital Gain Dividends paid to the Stockholder in any one calendar year
exceed 2.0% of the sum of (A) the Stockholder’s initial investment in the Class A Common Stock plus (B) the Stockholder’s total investment in any Top Up Shares purchased (such amount, the “Applicable
Investment”), or (ii) FIRPTA Capital Gain Dividends paid to the Stockholder in the aggregate exceed 10.0% of the Stockholder’s Applicable Investment when combined with all prior FIRPTA Capital Gain Dividends paid by the Company to
the Stockholder in respect of the then cumulative amount of the Stockholder’s Applicable Investment. For purposes of this Section 6.2, the Stockholder’s investment in Purchased Shares shall mean the total amount paid by the
Stockholder with respect to the acquisition of the Purchased Shares, and the Stockholder’s “total investment in any Top Up Shares purchased” shall be the total amount paid by the Stockholder with respect to the acquisition of Top Up
Shares. For the avoidance of doubt, in no event shall the Company be obligated to indemnify the Stockholder for any penalties or interest paid by the Stockholder in connection with the Stockholder’s failure to timely pay any tax obligation.

 (b) Additional Payment. If an indemnity amount is owed by the Company to the Stockholder under Section 6.2(a) above,
then the amount paid by the Company to the Stockholder in respect of that claim shall be determined by taking into account the Stockholder’s percentage ownership of the Company on a fully diluted basis on the date the dividend is paid such that
the payment to the Stockholder shall be increased to the extent necessary to ensure that the Stockholder does not effectively participate in paying the indemnity amount. For example, if the Stockholder then holds a 9.9% fully diluted interest in the
Company on the date the dividend is paid and an indemnity payment of $100 is due to the Stockholder under Section 7.1(a) above, then the Company will pay the Stockholder approximately $110.99 such that the Stockholder receives $100 net of its
percentage ownership interest in the Company. 
 (c) Exclusions. For the avoidance of doubt, FIRPTA Capital Gain Dividends paid on
shares of Class A Common Stock acquired by the Stockholder in open market purchases 

  
 15 

 
or otherwise not purchased from the Company will not be subject to the indemnity in Section 6.2(a) above and will not count towards the indemnity thresholds described in Section
6.2(a) above. Likewise, FIRPTA Capital Gain Dividends, “effectively connected income” within the meaning of Section 864(c) of the Code, or any other income paid or allocated to the Stockholder in its capacity as an investor in any
Joint Venture will not be covered by the indemnity obligation described in Section 6.2(a) above. 
 (d) Termination.
Notwithstanding the foregoing, the Company’s indemnification obligations provided in this Section 6.2 shall terminate and have no further force and effect beginning one (1) year following the date on which the sum of Purchased
Shares and Top Up Shares (if any) then owned by Stockholder falls below 10.0% of the outstanding common shares of the Company; provided that if such percentage falls below 10% solely due to the issuance of additional securities by the Company
that are subject to Top Up Rights, then the obligations provided in Section 6.2 shall not terminate to the extent the Stockholder delivers a Quarterly Top Up Exercise Notice and timely closes on its acquisition of Top Up Shares in an
amount such that the sum of the Purchased Shares and Top Up Shares exceeds 10%. 
 Section 6.3 Notice of Tax Claims. If the
Stockholder receives notice of any claim, demand, assessment (including a notice of proposed assessment) or other assertion with respect to U.S. federal or state income or branch profits tax that could give rise to an indemnity claim by the
Stockholder under Section 6.2(a) above (a “Tax Claim”), then the Stockholder shall promptly notify the Company of such Tax Claim. The parties shall cooperate in good faith to resolve any such Tax Claims and/or to otherwise
minimize any potential indemnity obligations in connection therewith. The Stockholder shall keep the Company reasonably informed of the progress of such Tax Claim. As a condition of the Company’s liability under Section 6.2(a), the
Company shall have the right to consent in advance to any settlement or agreement proposed to be made or entered into by the Stockholder with respect to a Tax Claim (such consent not to be unreasonably withheld). 

Section 6.4 Procedural Matters. 

(a) The Stockholder shall provide to the Company notice of any claim for indemnification under Section 6.2(a) within sixty
(60) Business Days after the first date on which it becomes entitled to make such claim. Such notice shall include a description of the indemnification claim and a detailed calculation of the amount claimed. 

(b) The Company shall make the claimed payment to the Stockholder within thirty (30) Business Days after receiving such notice, unless
the Company reasonably disputes its liability for, or the amount of, such payment within such time period. The Company and the Stockholder shall attempt in good faith to resolve any disagreement regarding such payment. If the parties are unable to
resolve such dispute prior to the date that is forty (40) Business Days following delivery by the Stockholder to the Company of the notice of such payment, the Company and the Stockholder shall retain the services of an accounting firm having a
national reputation that is acceptable to the parties to resolve the dispute, with such resolution being final and binding upon the parties. The costs of such accounting firm shall be borne by the parties in the inverse proportion as to which they
succeed on the merits of the dispute. 

  
 16 

 (c) A failure by the Stockholder to give notice as provided in Section 6.4(a) shall
not relieve the Company’s indemnification obligations under Section 6.1(a) above, except to the extent that the Company shall have been actually prejudiced by such failure. 

Section 6.5 Domestically Controlled Status. 

(a) For so long as both (A) the Stockholder continues to Own any substantial portion of its initial investment in the Class A Common
Stock and the Stockholder Group is in Material Compliance and (B) the Stockholder’s ownership of Class A Common Stock purchased from the Company would not be excluded from the definition of a U.S. real property interest under
Section 897(c)(3), as modified by Section 897(k), of the Code, the Company shall: 
 (i) use its commercially
reasonable efforts to comply with the Code, Treasury regulations, revenue procedures, notices or other guidance adopted after the date hereof by the Internal Revenue Service or United States Treasury so as to qualify as a “domestically
controlled qualified investment entity” as defined in Section 897(h)(4)(B) of the Code and the Treasury regulations promulgated thereunder, including, without limitation: 

(A) not issuing or selling shares of common stock to a foreign Person in a private transaction (excluding, for the avoidance
of doubt, a bona fide, underwritten public offering), and 
 (B) not waiving the ownership limitation set forth in
Section 7.2.1(a)(i)(1)-(2) of the Company’s Articles of Amendment and Restatement for any foreign Person, 
 which would in
either case result in the Company no longer qualifying as a “domestically controlled qualified investment entity,” applying the rules of Section 897(h)(4)(E) of the Code and any Treasury regulations, administrative guidance or court
rulings thereunder, for purposes of making such determination, which the parties hereto agree, absent a change in law, rule or regulation pursuant to such Code Section, shall require the Company to investigate only persons holding 5% or more of the
Class A shares during the relevant testing period. 
 Section 6.6 Additional Tax-Related Provisions. 

(a) Requirement to Mitigate. At the reasonable request of the Company and its representatives, the Stockholder shall consider such
actions suggested by the Company to mitigate (i) any actual or potential tax liabilities which may form the basis of an indemnification claim under Section 6.2 and (ii) any actual or potential impediment to the Company’s
ability to maintain and monitor its status as a “domestically controlled qualified investment entity” in connection with the covenant in Section 6.5, including, in each case, structuring and holding its investment in the
Company in a tax efficient manner; provided, that the Stockholder in its sole discretion may determine whether it can undertake any such mitigation efforts and shall have no obligation to disclose to the Company the details as to why any
suggested mitigation efforts cannot be undertaken. 

  
 17 

 (b) Exclusive Remedy. The parties hereto agree and acknowledge that the provisions of this
Article 6 (including the indemnity provided in Section 6.2 and the covenant provided in Section 6.5) constitute the sole and exclusive agreement and understanding between the parties with respect to tax protection, tax
indemnities and the taxation of the Stockholder and each member of the Stockholder Group (other than as specifically set forth in the Securities Purchase Agreement) in connection with the Stockholder’s purchase, sale or ownership of Company
Securities and the transactions contemplated by this Agreement and the Related Documents. Neither the Stockholder nor any other member of the Stockholder Group shall have any claim against the Company or its Affiliates for damages in connection with
tax protection, tax indemnities and the taxation of the Stockholder or any other member of the Stockholder Group, including but not limited to any consequential, indirect, punitive or other similar damages, nor may the Stockholder or any other
member of the Stockholder Group seek any equitable remedies such as specific performance, in connection with tax protection, tax indemnities and the taxation of the Stockholder or any other member of the Stockholder Group, other than as specifically
set forth in this Article 6 and in the Securities Purchase Agreement. 
 Section 6.7 No Tax Representations. Other than
as specifically set forth herein and in the Related Documents, the Company makes no representation or warranty to the Stockholder about any U.S. federal, state, local or foreign tax law, nor any representation or warranty regarding the tax
consequences of being a stockholder in the Company or in regards to any of the transactions contemplated by this Agreement or the Related Documents. 

ARTICLE 7 
 GENERAL
PROVISIONS 
 Section 7.1 Termination. This Agreement shall automatically terminate at the later of (i) such time as
each of the Stockholder’s rights hereunder have terminated pursuant to their terms and (ii) the date on which the Stockholder Group Owns less than 9.8% of the Class A Common Stock of the Company. Upon such termination, no party shall
have any further obligations or liabilities hereunder; provided that such termination shall not relieve any party from liability for any breach of this Agreement prior to such termination. 

Section 7.2 Notifications. 

(a) The Stockholder shall promptly, but in any case within ten (10) Business Days, notify the Company in writing if the Stockholder Group
ceases to own, in the aggregate, the Minimum Ownership Percentage. 
 (b) Upon request, the Stockholder shall, within ten (10) Business
Days of such request, provide the Company in writing with details of its Ownership of Equity Securities and other Company Securities, as well as any certifications and other information as may be reasonably requested by the Company in order to
confirm the parties’ rights pursuant to this Agreement. 
 Section 7.3 Material Compliance. For all purposes of this
Agreement, the term “Material Compliance” by the Stockholder Group shall mean that the Stockholder Group, and 

  
 18 

 
each member thereof, is in material compliance with its respective obligations and commitments under this Agreement; provided that (a) in the event that the Company determines that
the Stockholder Group, or any member thereof, is in default of any of its respective obligations and commitments set forth in this Agreement, the Company shall promptly provide written notice (which may be in the form of facsimile or email
transmission) of such default to the Stockholder, and (b) in the event that the Stockholder Group, or any member thereof, determines that it is in default of any of its respective obligations and commitments set forth in this Agreement, the
Stockholder shall promptly provide written notice (which may be in the form of facsimile or email transmission) of such default to the Company; and provided, further that, except in the case of a default of the Stockholder’s
and/or the Stockholder Group’s obligations and commitments under Article 3 or Article 4 hereof (for which no cure period will apply), the Stockholder Group, or the applicable member thereof, shall have thirty (30) days
following the earlier of the Stockholder’s receipt of written notice pursuant to clause (a) or the Company’s receipt of written notice pursuant to clause (b) to cure such default, in which case the Stockholder Group shall be
deemed, during such thirty (30)-day period, to be in “Material Compliance” hereunder. 
 Section 7.4 Stockholder Group
Representative. 
 (a) The Stockholder and any and all members of the Stockholder Group who at any time and from time to time become
party to this Agreement pursuant to Section 3.2 hereby irrevocably appoint the Stockholder to act as a representative for the benefit of the Stockholder Group, as the exclusive agent and attorney-in-fact to act on behalf of the
Stockholder Group, in connection with and to facilitate the matters contemplated by this Agreement and the Related Documents, which shall include the power and authority: 

(i) to execute and deliver any notices, documents or instruments required to be delivered hereunder by the Stockholder or the
Stockholder Group; 
 (ii) to delegate Top Up Rights and ROFO Rights to one or more members of the Stockholder Group pursuant
to Section 2.3(b) and Section 5.1(j) hereunder. 
 (iii) to enforce and protect the rights and
interests of the Stockholder Group arising out of or under or in any manner relating to this Agreement and the Related Documents, and to take any and all actions which the Stockholder believes are necessary or appropriate under this Agreement for
and on behalf of the Stockholder Group, including asserting or pursuing or defending any claim, action, proceeding or investigation by or against any member of the Stockholder Group; and 

(iv) to make, execute, amend, waive (in whole or in part), acknowledge and deliver all such other agreements, documents,
instruments or other writings, and, in general, to do any and all things and to take any and all actions that are necessary or proper or convenient in connection with or to carry out the matters contemplated by this Agreement; 

  
 19 

 provided, however, that to the extent that (i) the Stockholder transfers Class A Common
Stock of the Company to other members of the Stockholder Group and (ii) the Stockholder no longer holds any Class A Common Stock of the Company, the Stockholder shall be entitled to resign as representative and agent and attorney-in-fact,
and, to the extent the Stockholder resigns, the Stockholder and all members of the Stockholder Group shall appoint any other member of the Stockholder Group to which Class A Common Stock of the Company shall have been transferred to act as a
representative for the benefit of the Stockholder Group and as the exclusive agent and attorney-in-fact to act on behalf of the Stockholder Group, in connection with and to facilitate the matters contemplated by this Agreement and the Related
Documents (the Stockholder or any other member of the Stockholder Group acting in such capacity, the “Stockholder Representative”). The Stockholder shall provide the Company with written notice specifying the name, address and
facsimile number of any new Stockholder Representative at least five (5) days prior to the effectiveness of the appointment of the new Stockholder Representative, and Schedule I of this Agreement shall be amended as appropriate to
reflect the information contained in such notice. The new Stockholder Representative, when so duly appointed, shall, unless the context requires otherwise, be considered the “Stockholder” for all purposes of this Agreement, including with
respect to any notices or other communications by, to or with the Company or its Affiliates in connection with this Agreement and the Related Documents. 

(b) The Company shall have the right to rely upon all actions taken or omitted to be taken by the Stockholder pursuant to this Agreement and
the Related Documents, all of which actions or omissions shall be legally binding upon the members of the Stockholder Group. 
 (c) The
grant of authority provided for herein is coupled with an interest and shall survive the bankruptcy or liquidation of the Stockholder. 

Section 7.5 Subsidiary Obligations. In the case of any obligation, liability or commitment of the Company created by this
Agreement that would generally apply to or be understood as an obligation, liability or commitment of the Operating Partnership or other subsidiaries, the Company agrees in its capacity as general partner of the Operating Partnership or in its
applicable capacity with respect of such other subsidiaries, to cause the Operating Partnership or such other subsidiaries to perform, honor or pay any such obligation, liability or commitment in accordance with the terms of this Agreement. 

Section 7.6 Governing Law; Arbitration. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by, and shall be construed and interpreted in accordance with, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. Any action or proceedings brought by a party to recover damages in respect of any disagreement or dispute in
connection with this Agreement shall be submitted to and finally settled by arbitration in accordance with the rules and procedures of the American Arbitration Association, through its International Centre for Dispute Resolution before a panel of
three arbitrators selected in accordance with such rules. The site of any such arbitration shall be Manhattan, New York, New York or such other place as the Company and the Stockholder shall agree at the time, and the proceedings shall be conducted
in the English language. Any such arbitration award obtained pursuant to this clause shall be final 

  
 20 

 
and binding on the parties. The parties undertake to carry out any award without delay, and the parties agree that judgment upon any such award may be entered by any court having jurisdiction
over the matter or the relevant party or its assets. Notwithstanding the foregoing, the request by either party for injunctive relief or specific performance shall not be subject to arbitration and may be adjudicated only by the courts of the State
of New York located in Manhattan, New York, New York, or the United States District Court of the Southern District of New York. 

Section 7.7 Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided, that a signature delivered by facsimile, email pdf or other electronic form shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original. 

Section 7.8 Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. 
 Section 7.9 Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in
any other jurisdiction. 
 Section 7.10 Entire Agreement; Amendments; Waiver. This Agreement and the Related Documents supersede
all other prior oral or written agreements between the Stockholder, the Company, their affiliates and persons or entities acting on their behalf with respect to the matters discussed herein, and this Agreement and the Related Documents contain the
entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Stockholder makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Stockholder. No provision hereof may be waived other than by an instrument in writing signed by the
party against whom enforcement is sought. 
 Section 7.11 Notices. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation
of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The
addresses and facsimile numbers for such communications shall be: 
 If to the Company: 

Empire State Realty Trust, Inc. 

111 West 33rd Street, 12th Floor 

New York, New York 10120 

Attention: Thomas N. Keltner Jr. and Bart S. Goldstein 

Facsimile: 212-986-7679 

  
 21 

 with a copy (for informational purposes only) to: 

Goodwin Procter LLP 
 The New
York Times Building 
 620 Eighth Avenue 

New York, New York 10018 

Attention: Yoel Kranz 
 Facsimile:
212-813-8831 
 If to the Stockholder or any of its transferees under Section 3.2 hereof, to its address and facsimile number
set forth on Schedule 1 hereto, with copies (for informational purposes) to the Stockholder’s legal representatives as set forth on Schedule 1 hereto or to such other address for any of them as the Stockholder has
specified by written notice given to the Company five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively. The Stockholder hereby appoints
QIA Advisory (USA) Inc., 9 West 57th Street, 34th Floor, New York, NY 10019 as its agent for the service of process in the United States. 

Section 7.12 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective permitted successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Stockholder. The Stockholder shall not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the Company, in which event such assignee shall be deemed to be the Stockholder hereunder with respect to such assigned rights and obligations; provided, however, that nothing
in this Section 7.12 shall restrict the Stockholder’s ability to Transfer shares of Class A Common Stock to another member of the Stockholder Group pursuant to Section 3.2 hereof. 

Section 7.13 No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

Section 7.14 Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation
of the transactions contemplated hereby. 
 Section 7.15 Specific Performance. In addition to the right to specific performance
granted to the Company in Section 4.1(e) above, the parties acknowledge and agree that in the 

  
 22 

 
event of a breach or threatened breach of its covenants hereunder, the harm suffered would not be compensable by monetary damages alone and, accordingly, in addition to other available legal or
equitable remedies, each non-breaching party shall be entitled to apply for an injunction or specific performance with respect to such breach or threatened breach, without proof of actual damages (and without the requirement of posting a bond,
undertaking or other security), and the Stockholder and the Company agree not to plead sufficiency of damages as a defense in such circumstances. 

Section 7.16 Costs and Expenses. All costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby will be paid by the party incurring such costs and expenses, whether or not any of the transactions contemplated hereby are consummated. 

[Remainder of page intentionally left blank] 

  
 23 

 IN WITNESS WHEREOF, the parties hereto have caused this Stockholders Agreement to be duly
executed as of the date first above written. 
  

			
	EMPIRE STATE REALTY TRUST, INC.
		
	By:	 	 /s/ David A. Karp

	Name:	 	David A. Karp
	Title:	 	Executive Vice President and Chief Financial Officer
	
	Q REIT HOLDING LLC
		
	By:	 	 /s/ Ahmad Al-Khanji

	Name:	 	Ahmad Al-Khanji
	Title:	 	Director
	
	QATAR HOLDING LLC
	
	(solely for the purpose of Section 3.4 hereof)
		
	By:	 	 /s/ Abdulla Bin Mohammed Bin Saud Al-Thani

	Name:	 	Abdulla Bin Mohammed Bin Saud Al-Thani
	Title:	 	Chairman & CEO

  
 [Signature Page to
Stockholders Agreement] 

 SCHEDULE 1 
  

							
	 (1)
	 	 (2)
	 	 (3)
	 	 (4)

	 Stockholder
	 	 Address, Facsimile

Number and

Jurisdiction
	 	 Number of

Purchased

Shares
	 	 Legal Representative’s

Address and Email

	Q REIT Holding LLC	 	 Ooredoo Tower, Diplomatic Area Street West Bay, Doha P.O. Box 23224, Qatar

Facsimile: 974 4459 5990
	 	29,610,854	 	 White & Case LLP
 1155 Avenue of

the Americas
 New York, New York 10036

Attention: Oliver Brahmst

Email: obrahmst@whitecase.com

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