Amended Reimbursement Arrangement Between Roberts Realty Investors, Inc. and Roberts Properties, Inc. and Roberts Properties Construction, Inc.
Roberts Realty Investors, Inc. agrees to reimburse Roberts Properties, Inc. and Roberts Properties Construction, Inc. for consulting services provided by their employees. The reimbursement is calculated based on the employee's hourly cost rate (salary plus benefits divided by 2,080 hours), multiplied by 1.7, or 1.8 for the Chief Financial Officer of Roberts Properties. This arrangement is effective as of January 1, 2011, and ensures that Roberts Realty pays for the actual time and cost of services received from the other companies.
Exhibit 10.3
Summary of Amended Reimbursement Arrangement Between
Roberts Realty Investors, Inc. and Each of Roberts Properties, Inc. and
Roberts Properties Construction, Inc. (effective January 1, 2011)
Roberts Realty Investors, Inc. will reimburse each of Roberts Properties, Inc. (“Roberts Properties”) and Roberts Properties Construction, Inc. (“Roberts Construction”) the cost of providing consulting services in an amount equal to an appropriate hourly billing rate for an employee multiplied by the number of hours that the employee provided services to Roberts Realty. For the purpose of this arrangement, the appropriate billing rate is calculated by multiplying an hourly cost rate for an employee (which is defined as the employee’s salary, plus benefits paid by Roberts Properties or Roberts Construction, divided by 2,080 annual hours) by a factor of 1.7, or 1.8 for Roberts Properties’ Chief Financial Officer.
