Document:

Exhibit 10.1 Termination Agreement

		

			Exhibit 10.1

		

		
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			TERMINATION AGREEMENT
		

		
			TERMINATION AGREEMENT, dated as of October 29, 2018 (this “Agreement”), by and among MSC INDUSTRIAL DIRECT CO., INC., a New York corporation (the “Company”) and the shareholders party hereto (collectively, the “Sellers”).
		

		
			R E C I T A L S
		

		
			WHEREAS, the Company and the Sellers entered into a Stock Purchase Agreement, dated as of July 25, 2018 (as amended, the “Stock Purchase Agreement”); 
		

		
			WHEREAS, the Company and the Sellers wish to modify the Percentage Participations set forth in Schedule I to the Stock Purchase Agreement; and
		

		
			WHEREAS, the Company and the Sellers wish to terminate the Stock Purchase Agreement pursuant to Section 7.1(a) of the Stock Purchase Agreement;
		

		
			NOW THEREFORE, in consideration of the covenants and promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Sellers hereby severally agree with the Company and the Company agrees with each Seller as follows:
		

			
	
			
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			Definitions.  Capitalized terms used herein and not otherwise defined in this Agreement shall have the respective meanings assigned to such terms in the Stock Purchase Agreement.

			
	
			
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			Termination.  The Company and the Sellers hereby agree that the respective rights and  obligations of the Company and the Sellers under the Stock Purchase Agreement shall be terminated, cancelled and extinguished; provided that the obligations of the Company and the Sellers to purchase and sell Shares in accordance with Section 1.3 of the Stock Purchase Agreement with respect to the month of October 2018 shall remain in full force and effect and the Percentage Participations with respect to the October 2018 calendar month purchase and sale obligations are amended to be as set forth in Schedule I hereto.

			
	
			
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			GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  

			
	
			
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			Counterparts.  This Agreement may be executed in any number of counterparts, including via facsimile, each of which shall be an original, but all of which together shall constitute one instrument.

		
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			[Signatures follow on next page]
		

		
			 
		

		

		

		 

 

		

			 

		

		IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first written above.
		

			
					
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						MSC INDUSTRIAL DIRECT CO., INC.

				
	
					
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						By:

					
					
						/s/ Steve  Armstrong

				
	
					
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						Name:

					
					
						Steve Armstrong

				
	
					
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						Title:

					
					
						Senior Vice President, General Counsel and Corporate Secretary

				
	
					
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						/s/ Mitchell Jacobson

				
	
					
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						Mitchell Jacobson

				
	
					
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						/s/ Marjorie Gershwind Fiverson

				
	
					
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						Marjorie Gershwind Fiverson

				
	
					
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						/s/ Erik Gershwind

				
	
					
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						Erik Gershwind

				
	
					
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						/s/ Stacey Bennett

				
	
					
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						Stacey Bennett

				
	
					
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						/s/ Harlan B. Korenvaes

				
	
					
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						Harlan B. Korenvaes

				

		
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			[Termination Agreement]
		

		
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			Schedule I
		

		
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						Name of Seller 

					
					
						Percentage
Participation

				
	
					
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						Mitchell Jacobson

					
					
						0

				
	
					
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						Marjorie Gershwind Fiverson

					
					
						0

				
	
					
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						Erik Gershwind

					
					
						0

				
	
					
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						Stacey Bennett

					
					
						11.8

				
	
					
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						Harlan B. Korenvaes

					
					
						88.2

				
	
					
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			﻿EX-10.1

 Exhibit 10.1 

FIRST AMENDMENT 
 TO THE

 ADMINISTRATIVE SERVICES AGREEMENT 

This First Amendment (this “Amendment”) to the Administrative Services Agreement (the “Agreement”),
effective as of October 29, 2018, is by and among City Office Management ULC, a British Columbia unlimited liability company that is a successor to City Office Management Ltd. (“Buyer”), Second City Capital II Corporation, a
British Columbia corporation (“SCCC”), and Second City Real Estate II Corporation, a British Columbia corporation (“SCRE II”). SCCC, SCRE II and Buyer are collectively referred to herein as the
“Parties.” 
 RECITALS 

WHEREAS, the Parties originally entered into the Agreement dated as of February 1, 2016 whereby SCCC and SCRE II retained Buyer to
provide certain administrative services to SCCC and SCRE II; 
 WHEREAS, under the terms of the Agreement, the Agreement will automatically
terminate on February 1, 2019, if not terminated earlier in accordance with the terms of the Agreement; and 
 WHEREAS, the Parties
desire to amend the Agreement to, among other things, (i) remove SCCC as a party to the Agreement, (ii) adjust the Fees payable to Buyer and (iii) extend the term of the Agreement. 

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained in this Agreement, the Parties hereby agree to amend the
Agreement as follows: 
 1. SCCC is hereinafter removed as a party to the Agreement and shall no longer receive Services from Buyer nor be
bound to remit payment of Fees to Buyer. SCCC hereby and forever releases Buyer and SCRE II from any and all claims, demands, suits, judgments, orders and causes of action of every kind and nature, whether known or unknown, suspected or unsuspected,
vested or contingent, in law or equity, existing by statute, common law, or otherwise, (including but not limited to matters involving gross negligence) which have existed, may currently exist or do exist, prior to or at the execution and delivery
by the Parties of this Amendment in connection with the Agreement and its terms. The release set forth in this Section 1 is intended to be a general release of the broadest possible scope. 

2. “Second City” as used in the Agreement shall hereinafter refer solely to SCRE II. 

3. The following terms shall be added to Section 1.01 of the Agreement: 

“Fund” means Second City Real Estate II, Limited Partnership. 

  
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 “Fund LPA” means the amended and restated limited partnership of the Fund
dated for reference as July 9, 2014, amended and restated as of July 7, 2015, as it may be further amended, restated and in effect from time to time. 

“Governing Instruments” means, with regard to any entity, the articles or certificate of incorporation and bylaws in the case
of a corporation, certificate of limited partnership (if applicable) and the partnership agreement in the case of a general or limited partnership, the articles or certificate of formation and the operating agreement in the case of a limited
liability company, the trust instrument in the case of a trust, or similar governing documents, in each case as amended, restated or supplemented from time to time. 

“Management Fee” shall mean the cash management fee payable by Fund to Second City or its affiliates, as calculated by
Fund’s Governing Instruments or other agreement (whether using a percentage charged to committed capital, net invested capital or alternative measure), but it shall not include (i) any sums paid to Second City by Fund which are intended to
reimburse Second City or any officer of Second City, for third party costs and expenses incurred by Second City or such officers of Second City, and (ii) any carried interest payments or similar back-end
promoted performance incentives received by Second City or any officer of Second City from the Fund. All Management Fees shall be payable in U.S. dollars. 

“Term End Date” has the meaning assigned to it in the Fund LPA. 

4. Section 4.04 shall be added to Article IV of the Agreement as follows: 

Section 4.04 New Fees. Subsequent to the terms set forth in Section 4.01 ending as of January 31,
2019, the Fees payable by Second City to Buyer for the Services under this Agreement shall be the annual amounts set forth below, payable in four equal quarterly installments, commencing on February 1, 2019 and continuing on the first day of
each quarter thereafter: 
 (a) From February 1, 2019 through January 31, 2020: $500,000 

(b) Thereafter: 40% of the Management Fee paid to Second City by Fund under Fund’s Governing Instruments. 

5. Section 7.01 of the Agreement shall be deleted in its entirety and replaced with the following: 

Section 7.01 Term and Termination. 

(a) This Agreement shall be in effect until the Term End Date, unless sooner terminated pursuant to this Article VII (the
“Term”). 
 (b) Upon a Change of Control, each of Second City and Buyer shall have the right to terminate this
Agreement effective upon 30 days’ prior written notice of termination to the other Party; provided, however, that (i) the election to terminate and notification thereof must be made within 90 days of such Change of
Control or the right to terminate under this Section 7.01(b) shall expire, and (ii) if Second City elects to terminate this Agreement upon a Change of Control pursuant to this Section 7.01(b), no additional Fees
shall be payable to Buyer following the termination. 

  
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 (c) Second City shall have the right to terminate this Agreement by
providing thirty (30) days advance written notice to Buyer upon the occurrence of any of the following events: 
  

	 	(i)	 Either one or both James Farrar and Greg Tylee cease to be executive officers of the REIT for any reason; or

  

	 	(ii)	 Buyer fails to perform its obligations hereunder and such failure continues for more than thirty (30) days
following Buyer’s receipt of written notice of such default. 

 (d) Buyer shall have the right to
terminate this Agreement by providing thirty (30) days written notice to Second City upon the occurrence of any of the following events: 
  

	 	(i)	 Second City fails to perform its obligations hereunder and such failure continues for more than thirty
(30) days following Second City’s receipt of written notice of such default; or 

  

	 	(ii)	 Either one or both James Farrar and Greg Tylee cease to be an executive officer of the REIT for any reason; or

  

	 	(iii)	 subject to Section 4.04, the Fees payable to Buyer hereunder in any quarter is less than $62,500
(i.e., $250,000 on an annualized basis). 

 (e) Notwithstanding the foregoing, Buyer may terminate
this Agreement at any time if, in the sole judgment of the Board of Directors, doing so is reasonably necessary or desirable to preserve the REIT’s qualification as a real estate investment trust (as defined in the Code). 

6. The addresses set forth in Section 9.04 of the Agreement shall be deleted and replaced with the following: 

 

	 	(i)	 if to Second City: 

Second City Real Estate II Corporation 

1075 West Georgia Street, 

Suite 2600 
 Vancouver, British
Columbia V6E 3C9 
 Attention: Ryan Chan, Chief Financial Officer 

Email: chan@belzbergco.com 

  
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 with a copy to: 

Bennett Jones LLP 
 2600, 1066
West Hastings Street 
 Vancouver, British Columbia V6E 3X1 

Attention: Mia Bacic 
 Email:
bacicm@bennettjones.com 
  

	 	(ii)	 if to Buyer, OP or the REIT 

City Office REIT, Inc. 
 1075
West Georgia Street, Suite 2010 
 Vancouver, British Columbia V6E 3C9 

Canada 
 Facsimile: 604-661-4873 
 Attention: Chairman of the Board 

with a copy to: 
 Hunton Andrews
Kurth LLP 
 951 E. Byrd Street 

Richmond, VA 23219 
 Attention:
David C. Wright 
 Facsimile: 804-343-4580 

7. Defined terms not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Agreement. 

8. The terms and provisions of the Agreement which are not expressly modified by this Amendment shall remain in full force and effect. In the
event of any conflict between the terms and conditions set forth in this Amendment and in the Agreement, the terms and conditions of this Amendment shall control. 

9. This Amendment may be executed in any number of counterparts with the same effect as if all of the Parties had signed the same document.
All counterparts shall be construed together and shall constitute one agreement. 
 [The remainder of this page is intentionally left
blank.] 

  
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 IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed on the date first
written above by their respective duly authorized officers. 
  

			
	 CITY OFFICE MANAGEMENT ULC,
 a
British Columbia unlimited liability company

		
	By:	 	 /s/ John McLernon

		 	Name: John McLernon
		 	Title: Authorized Signatory
	
	 SECOND CITY CAPITAL II CORPORATION,

a British Columbia corporation

		
	By:	 	 /s/ Ryan Chan

		 	Name: Ryan Chan
		 	Title: President & CFO
	
	 SECOND CITY REAL ESTATE II CORPORATION,

a British Columbia corporation

		
	By:	 	 /s/ Ryan Chan

		 	Name: Ryan Chan
		 	Title: President & CFO

 Signature Page to First Amendment to the Administrative Services Agreement 

  
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