4,000,000 SHARES CAPITAL TRUST, INC. CLASS A COMMON STOCK, PAR VALUE $0.01 PER SHARE UNDERWRITING AGREEMENT
Exhibit
1.1
4,000,000
SHARES
CAPITAL
TRUST, INC.
CLASS
A COMMON STOCK, PAR VALUE $0.01 PER SHARE
March 24,
2008
March 24,
2008
Xxxxxx
Xxxxxxx & Co. Incorporated
0000
Xxxxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Dear
Ladies and Gentlemen:
Capital
Trust, Inc., a Maryland corporation (the “Company”), proposes, subject
to the terms and conditions stated herein, to issue and sell to the underwriter
named in Schedule
I attached hereto (the “Underwriter”), an aggregate of
4,000,000 shares (the “Shares”) of class A common
stock, par value $0.01 per share, of the Company. The shares of class
A common stock, par value $0.01 per share, of the Company to be outstanding
after giving effect to the sales contemplated hereby are hereinafter referred to
as the “Class A Common Stock.”
The
Company has prepared and filed with the Securities and Exchange Commission (the
“Commission”) under the
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder (collectively, the “Securities Act”) a shelf
registration statement on Form S-3 (File No. 333-111261), including a
prospectus, relating to the Shares, which registration statement has become
effective. Such registration statement covers the registration of the
Shares under the Securities Act. The registration statement as
amended or supplemented to the date of this Agreement, including the exhibits
and schedules thereto as of the date of this Agreement, the documents
incorporated by reference therein or otherwise deemed a part thereof or included
therein under the Securities Act as of the date of this Agreement and the
information (if any) deemed to be part of the registration statement as of the
date of this Agreement pursuant to Rule 430A or 430B under the Securities
Act, is hereinafter referred to as the “Registration Statement,” and
the related prospectus covering the Shares, dated December 29, 2003, is
hereinafter referred to as the “Base
Prospectus.” The Base Prospectus, as supplemented by the final
prospectus supplement specifically relating to the Shares in the form first used
to confirm sales of the Shares (or in the form first made available to the
Underwriter by the Company to meet requests of purchasers pursuant to Rule 173
under the Securities Act) is hereinafter referred to as the “Prospectus,” and the term
“preliminary prospectus”
means any preliminary form of the Prospectus. For purposes of this
Agreement, “free writing
prospectus” has the meaning set forth in Rule 405 under the Securities
Act, “Time of Sale
Prospectus” means the Base Prospectus together with the free writing
prospectus, term sheet and press release identified in Schedule I attached
hereto, and “broadly
available road show” means a “bona fide electronic road show,” if any, as
defined in Rule 433(h)(5) under the Securities Act that has been made available
without restriction to any person. As used herein, the terms
“Registration Statement,” “Base Prospectus,” “preliminary prospectus,” “Time of
Sale Prospectus” and “Prospectus” shall include the documents, if any,
incorporated by reference therein. The terms “supplement,” “amendment,” and “amend” as used herein with
respect to the Registration Statement, the Base Prospectus, the Time of Sale
Prospectus, any preliminary prospectus or free writing prospectus shall include
all documents subsequently filed by the Company with the Commission pursuant
to
1
the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder (collectively, the “Exchange Act”), that are
deemed to be incorporated by reference therein.
1. Representations and
Warranties. The Company represents and warrants to and agrees
with the Underwriter that:
(a) The
Registration Statement has become effective. No notice of objection
of the Commission to the use of the Registration Statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has been
received by the Company. No order suspending the effectiveness of the
Registration Statement has been issued by the Commission and is in effect and no
proceeding for that purpose or pursuant to Section 8A of the Securities Act
against the Company or related to the offering has been initiated or, to the
knowledge of the Company, threatened by the Commission.
(b) The
documents incorporated by reference in the Registration Statement, the Time of
Sale Prospectus and the Prospectus, when they became effective or were filed
with the Commission, as the case may be, conformed in all material respects to
the requirements of the Securities Act or the Exchange Act, as applicable, and
none of such documents contained any untrue statement of a material fact or,
taken together, omitted to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and any further documents so filed
and incorporated by reference in the Registration Statement, the Time of Sale
Prospectus or the Prospectus, when such documents become effective or are filed
with the Commission, as the case may be, will conform in all material respects
to the requirements of the Securities Act or the Exchange Act, as applicable,
and will not contain any untrue statement of a material fact or, taken together
with all other documents incorporated by reference in the Registration
Statement, Time of Sale Prospectus and the Prospectus, omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not
misleading.
(c) (i)
The Company has satisfied the conditions for use of Form S-3, as set forth in
the general instructions thereto, with respect to the Registration Statement,
(ii) each part of the Registration Statement, when such part became effective,
did not contain and each such part, as amended or supplemented, if applicable,
will not on the date hereof or on the Closing Date (as defined below) contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, (iii) the Registration Statement as of the date it became
effective did not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, (iv) the Registration Statement, the Time of
Sale Prospectus and the Prospectus, as amended or supplemented, if applicable,
complied on the date of filing thereof and will comply on the Closing Date in
all material respects with the Securities Act, (v) the Time of Sale
Prospectus does not, and at the time of each sale of the Shares in connection
with the offering when the Prospectus is not yet available to prospective
purchasers, and at the Closing Date, the Time of Sale Prospectus, as then
amended or supplemented by the Company in accordance with the terms of this
Agreement, if applicable, will not, contain any untrue statement of a material
fact or omit to state a material fact necessary
2
to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, (vi) each broadly available road show, if any, when
considered together with the Time of Sale Prospectus, does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading, (vii) the Prospectus as amended or
supplemented, if applicable, will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading and
(viii) the Company has filed all reports required to be filed pursuant to the
Securities Act, the Exchange Act, the Xxxxxxxx-Xxxxx Act of 2002 (the “Xxxxxxxx-Xxxxx Act”), the
Financial Industry Regulatory Authority, Inc. (the “FINRA”) and the New York Stock
Exchange (“NYSE”);
provided, however, the representations and warranties set forth in this
paragraph do not apply to statements or omissions in the Registration Statement,
the Time of Sale Prospectus or the Prospectus based upon information relating to
the Underwriter furnished to the Company in writing by the Underwriter expressly
for use therein, it being understood and agreed that the only such information
furnished by the Underwriter consists of the information described as
such in Section
8(b) below.
(d) The
Company is not an “ineligible issuer” in connection with the offering pursuant
to Rules 164, 405 and 433 under the Securities Act. Any free writing
prospectus that the Company is required to file pursuant to Rule 433(d) under
the Securities Act has been, or will be, filed with the Commission in accordance
with the requirements of the Securities Act. Each free writing
prospectus that the Company has filed, or is required to file, pursuant to Rule
433(d) under the Securities Act or that was prepared by or on behalf of or used
or referred to by the Company complies or will comply in all material respects
with the requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder. Except for the free writing
prospectuses, if any, identified in Schedule I attached
hereto forming part of the Time of Sale Prospectus, and electronic road shows,
if any, each furnished to the Underwriter before first use, the Company has not
prepared, used or referred to, and will not, without the
Underwriter’s prior written consent, prepare, use or refer to, any
free writing prospectus.
(e) The
Company has been duly incorporated, is validly existing as a corporation in good
standing under the laws of the State of Maryland, has the corporate power and
authority to own its property and to conduct its business as described in the
Registration Statement, Time of Sale Prospectus and Prospectus and is duly
qualified to transact business and is in good standing in each jurisdiction in
which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so
qualified or be in good standing would not have a material adverse effect on the
Company and its subsidiaries, taken as a whole.
(f) Each
subsidiary of the Company (including, as described below, CT Investment) has
been duly incorporated or otherwise formed, is validly existing in good standing
under the laws of the jurisdiction of its incorporation or formation, has the
power and authority to own its property and to conduct its business as described
in the Registration Statement, Time of Sale Prospectus and Prospectus and is
duly qualified to transact business and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so
qualified or be in good standing would not have a material adverse effect on the
Company and its subsidiaries,
3
taken as
a whole; all of the issued shares of capital stock or other equity interests
(whether membership, partnership or otherwise) of each subsidiary of the Company
have been duly and validly authorized and issued, are fully paid and
non-assessable and are owned directly by the Company or indirectly through one
of its wholly-owned subsidiaries, free and clear of all liens, encumbrances,
equities or claims.
(g) (i) The
Company owns 40,000 shares of common stock of CT Mezzanine Partners III, Inc.
(the “Fund”).
(ii) The
Fund is solely managed by the Company’s wholly-owned subsidiary CT Investment
Management Co., LLC (“CT
Investment”) (for purposes of this Agreement, CT Investment shall be
deemed a subsidiary of the Company), pursuant to that certain Management
Agreement (the “Fund Management
Agreement”), dated June 2, 2003, as amended, by and between CT Investment
and the Fund.
(iii) Neither
the Fund nor CT Investment is in breach of, or default under (nor has any event
occurred which, with notice, lapse of time or both, would constitute a breach
of, or default under), the Fund Management Agreement, except for any breach or
default that would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole; the Fund Management Agreement is in full force
and effect, has not been amended except as described in the Registration
Statement, Time of Sale Prospectus and Prospectus and constitutes a legal, valid
and binding agreement of the parties thereto enforceable in accordance with its
terms, except as may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or similar laws affecting creditors’
rights generally and by general principles of equity.
(iv) The
Fund has been duly incorporated and formed, is validly existing in good standing
under the laws of the jurisdiction of its formation, has the power and authority
to own its property and to conduct its business as described in the Registration
Statement, Time of Sale Prospectus and Prospectus and is duly qualified to
transact business and is in good standing in each jurisdiction in which the
conduct of its business or its ownership or leasing of property requires such
qualification, except to the extent that the failure to be so qualified or in
good standing would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole; the capital stock and other equity interests of
the Fund have been duly and validly authorized and issued and the shares of
common stock of the Fund owned by the Company are free and clear of all liens,
encumbrances, equities or claims.
(v) The
Company indirectly owns all of the equity interests listed in Schedule II attached
hereto (the “CDO Subs”)
(for purposes of this Agreement, each CDO Sub shall be deemed a subsidiary of
the Company.
(vi) CT
Investment is not in breach of, or default under (nor has any event occurred
which, with notice, lapse of time or both would constitute a breach of, or
default under), any management agreement for which CT Investment is acting as a
manager, except for any breach or default that would not have a material adverse
effect on the Company and its subsidiaries, taken as a whole; each of the
management agreements is in full force and effect, has not been amended and
constitutes the legal, valid and binding agreement of the parties
thereto
4
enforceable
in accordance with its terms, except as may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or similar laws
affecting creditors’ rights generally and by general principles of
equity.
(vii) Except
for (i) the subsidiaries listed in Exhibit 21.1 to the Company’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2007 and (ii) CT Bracor
Holding LLC, the Company does not own or control, directly or indirectly, any
corporation, limited partnership, limited liability company, trust, association
or other entity that would be required to be listed in Exhibit 21.2 of Form
10-K.
(h) The
authorized, issued and outstanding capital stock of the Company is as set forth
in the Registration Statement, Time of Sale Prospectus and Prospectus (other
than for subsequent issuances, including restricted stock grants, if any,
pursuant to employee benefit plans described in the Registration Statement, Time
of Sale Prospectus and Prospectus or upon the exercise of outstanding options or
warrants described in the Registration Statement, Time of Sale Prospectus and
Prospectus). The Class A Common Stock, including the Shares, conforms
in all material respects to the description contained, or incorporated by
reference, in the Registration Statement, Time of Sale Prospectus and
Prospectus. All of the issued and outstanding shares of Class A
Common Stock have been duly authorized and validly issued, are fully paid and
non-assessable and have been issued in compliance with federal and state
securities laws. None of the outstanding securities of the Company
were issued in violation of the percentage limitations (without the benefit of
any transfer in trust provisions) contained in the Company’s organizational
documents, including, without limitation, the provisions of Article VII of
the Company’s articles of amendment and restatement, as amended by the Company’s
certificate of notice, dated February 27, 2007. None of the
outstanding shares of Class A Common Stock were issued in violation of any
preemptive rights, rights of first refusal or other similar rights to subscribe
for or purchase securities of the Company. There are no authorized or
outstanding options, warrants, preemptive rights, rights of first refusal or
other rights to purchase, or equity or debt securities convertible into,
exchangeable or exercisable for, any capital stock of the Company or any of its
subsidiaries other than those accurately described in the Registration
Statement, Time of Sale Prospectus and Prospectus or subsequently issued
pursuant to the Company’s stock option, stock bonus and other stock plans or
arrangements described in the Registration Statement, Time of Sale Prospectus
and Prospectus. The description of the Company’s stock option, stock
bonus and other stock plans or arrangements, and the options or other rights
granted thereunder, set forth in the Registration Statement, Time of Sale
Prospectus and Prospectus accurately and fairly presents the information
required to be shown with respect to such plans, arrangements, options and
rights.
(i) This
Agreement has been duly authorized, executed and delivered by the
Company.
(j) The
Shares have been duly authorized and, when issued and delivered in accordance
with the terms of this Agreement, will be validly issued, fully paid and
non-assessable, and the issuance of such Shares will not be subject to any
preemptive or similar rights. None of the Shares will be issued, sold
or purchased (including any shares purchased by Xxxxxx Xxxx or any of his
affiliates or X. X. Xxxxxxx Corporation or any of its affiliates) in violation
of the percentage limitations (without the benefit of any transfer in trust
provisions)
5
contained
in the Company’s organizational documents, including, without limitation, the
provisions of Article II, Section 10 of the Company’s second amended and
restated bylaws and Article VII of the Company’s articles of amendment and
restatement, as amended by the Company’s certificate of notice, dated February
27, 2007.
(k) The
execution and delivery by the Company of, and the performance by the Company of
its obligations under, this Agreement will not contravene (i) any provision of
applicable law; (ii) the charter or the second amended and restated bylaws of
the Company; (iii) any agreement or other instrument binding upon (a) the
Company or any of its subsidiaries that is material to the Company and its
subsidiaries, taken as a whole, or (b) the Fund; or (iv) any judgment,
order or decree of any governmental body, agency or court having jurisdiction
over the Company, any subsidiary or the Fund, except in the case of clauses (i),
(iii) or (iv) for such contraventions as would not have a material adverse
effect on the Company and its subsidiaries, taken as a whole, and no consent,
approval, authorization or order of, or qualification with, any governmental
body or agency is required for the performance by the Company of its obligations
under this Agreement, except such as may be required by the securities or Blue
Sky laws of the various states or FINRA in connection with the offer and sale of
the Shares.
(l) There
has not occurred any material adverse change, or any development involving a
prospective material adverse change, in the condition, financial or otherwise,
or in the earnings, business or operations of (i) the Company and its
subsidiaries, taken as a whole, or (ii) the Fund, from that set forth in the
Time of Sale Prospectus.
(m) There
are no legal or governmental proceedings pending or, to the knowledge of the
Company, threatened, to which the Company, any of its subsidiaries or the Fund
is a party or to which any of the properties of the Company, any of its
subsidiaries or the Fund is subject that are required to be described in the
Registration Statement, Time of Sale Prospectus or Prospectus and are not so
described and there are no statutes, regulations, contracts or other documents
that are required to be described in the Registration Statement, the Time of
Sale Prospectus or Prospectus or to be filed as exhibits to the Registration
Statement that are not described or filed as required.
(n) Each
preliminary prospectus filed as part of the Registration Statement as originally
filed or as part of any amendment thereto, or filed pursuant to Rule 424 under
the Securities Act, complied when so filed in all material respects with the
Securities Act and the applicable rules and regulations of the Commission
thereunder.
(o) The
Company is not and, after giving effect to the offering and sale of the Shares
and the application of the proceeds thereof as described in the Time of Sale
Prospectus, will not be required to register as an “investment company” as such
term is defined in the Investment Company Act of 1940, as amended.
(p) The
Company, its subsidiaries and the Fund (i) are in compliance with any and all
applicable foreign, federal, state and local laws and regulations relating to
the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii)
have received all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their
6
respective
businesses and (iii) are in compliance with all terms and conditions of any such
permit, license or approval, except in the case of clauses (i), (ii) or (iii)
where such noncompliance with Environmental Laws, failure to receive required
permits, licenses or other approvals or failure to comply with the terms and
conditions of such permits, licenses or approvals would not, singly or in the
aggregate, have a material adverse effect on the Company and its subsidiaries,
taken as a whole.
(q) There
are no costs or liabilities associated with Environmental Laws (including,
without limitation, any capital or operating expenditures required for clean up,
closure of properties or compliance with Environmental Laws or any permit,
license or approval, any related constraints on operating activities and any
potential liabilities to third parties) which would, singly or in the aggregate,
have a material adverse effect on the Company and its subsidiaries, taken as a
whole, or on the Fund.
(r) Except
as have been waived in writing and provided to the Underwriter and counsel to
the Underwriter, there are no contracts, agreements or understandings between
the Company and any person granting such person the right to require the Company
to file a registration statement under the Securities Act with respect to any
securities of the Company or to require the Company to include such securities
with the Shares registered pursuant to the Registration Statement.
(s) Ernst
& Young LLP, which has expressed its opinion with respect to the financial
statements (which term as used in this Agreement includes the related notes
thereto) and supporting schedules filed with the Commission as a part of (or
incorporated by reference in) the Registration Statement and included or
incorporated by reference in the Time of Sale Prospectus and Prospectus, are
independent registered public accountants with respect to the Company and its
subsidiaries within the applicable rules and regulations adopted by the
Commission and the Public Company Accounting Oversight Board and as required by
the Securities Act. The statements included in the Registration
Statement with respect to Ernst & Young LLP pursuant to Rule 509 of
Regulation S-K of the Securities Act are true and correct in all material
respects.
(t) None
of the Company, any of its subsidiaries or the Fund is in violation or default
of, and none of the Company, any of its subsidiaries or the Fund has received
notice of, or has knowledge of any occurrence or circumstance which, with notice
or passage of time or both, would give rise to, a violation or default of, (i)
any provision of its charter or bylaws or other organizational documents, as
applicable, including the Company’s second amended and restated bylaws, (ii) the
terms of any indenture, contract, lease, mortgage, deed of trust, note
agreement, loan agreement, credit facility, repurchase agreement, management
agreement or other agreement, obligation, condition, covenant or instrument to
which it is a party or bound or to which its property is subject, including,
without limitation, (1) that certain Master Repurchase Agreement, dated as of
July 30, 2007, by and among the Company, Citigroup Global Markets, Inc. and
Citigroup Financial Products Inc., as such agreement may be amended from time to
time, (2) that certain Amendment No. 1 to Master Repurchase Agreement, dated as
of March 22, 2007, by and between the Company and JPMorgan Chase Bank, N.A., as
such agreement may be amended from time to time, (3) that certain First
Amendment to Credit Agreement, dated as of June 1, 2007, by and among the
Company, the lenders named therein and WestLB AG, as
7
administrative
agent, as such agreement may be amended from time to time, (4) that certain
Junior Subordinated Indenture dated as of March 29, 2007, by and between the
Company and The Bank of New York Trust Company, National Association, as
trustee, as such may be amended from time to time, (5) the Amended and Restated
Master Repurchase Agreement, dated as of February 15, 2006, as amended, among
the Company and CT BSI Funding Corp. and Bear, Xxxxxxx Funding, Inc., and (6)
the Amended and Restated Master Repurchase Agreement, dated as of February 15,
2006, as amended, among the Company and CT BSI Funding Corp. and Bear, Xxxxxxx
International Limited, or (iii) any statute, law, rule, regulation, judgment,
order or decree of any court, regulatory body, administrative agency,
governmental body, arbitrator or other authority having jurisdiction over the
Company, such subsidiary or Fund or any of its respective properties, as
applicable, including, without limitation, the provisions of the Securities Act,
Exchange Act, Xxxxxxxx-Xxxxx Act and the rules and regulations of FINRA and the
NYSE, except in the case of clauses (ii) or (iii) for such violations or
defaults as would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole.
(u) The
Company has delivered to the Underwriter or will deliver one (1) complete
photocopy of a manually signed copy of the Registration Statement and of each
consent and certificate of experts filed as a part thereof and conformed copies
of the Registration Statement (without exhibits), preliminary prospectuses, free
writing prospectuses, the Time of Sale Prospectus and the Prospectus, as amended
or supplemented, in such quantities and at such places as the Underwriter has
requested.
(v) The
Company has not distributed and will not distribute, prior to the Closing Date,
any offering material in connection with the offering and sale of the Shares
other than the Time of Sale Prospectus, the Prospectus or the Registration
Statement.
(w) (i)
The financial statements filed with the Commission as a part of (or incorporated
by reference in) the Registration Statement and included or incorporated by
reference in the Time of Sale Prospectus and Prospectus present fairly the
consolidated financial position of the Company and its subsidiaries as of and at
the dates indicated and the results of their operations and cash flows for the
periods specified and comply in all material respects with the applicable
requirements of the Securities Act and the Exchange Act, as applicable; (ii) the
supporting schedules included or incorporated by reference in the Registration
Statement present fairly the information required to be stated therein; and
(iii) the other financial information included or incorporated by reference in
the Registration Statement, the Time of Sale Prospectus and the Prospectus has
been derived from the accounting records of the Company and its subsidiaries and
presents fairly the information shown thereby. The financial
statements and supporting schedules have been prepared in conformity with
generally accepted accounting principles in the United States (“GAAP”) applied on a consistent
basis (except in the case of unaudited financials for normal year-end
adjustments) throughout the periods involved, except as may be expressly stated
in the related notes thereto. No other financial statements or
supporting schedules are required to be included or incorporated by reference in
the Registration Statement, Time of Sale Prospectus or
Prospectus. The financial data set forth in the Time of Sale
Prospectus and Prospectus under the caption “Prospectus Summary--Summary
Financial Data” fairly presents the information set forth therein and have been
compiled on a basis consistent with that
of the audited financial statements contained or incorporated by reference in
the Registration Statement.
8
(x) The
Class A Common Stock is registered pursuant to Section 12(b) of the Exchange
Act, and the Company has taken no action designed to, or likely to have the
effect of, terminating the registration of the Class A Common Stock under the
Exchange Act or delisting the Class A Common Stock from the NYSE nor has the
Company received any notification that the Commission or the NYSE is
contemplating terminating such registration or listing.
(y) The
Company, its subsidiaries and the Fund own, possess or have a right to acquire
on commercially reasonable terms sufficient trademarks, trade names, patent
rights, patents, know-how, collaborative research agreements, inventions,
servicemarks, copyrights, licenses, approvals, trade secrets and other similar
rights (collectively, “Intellectual Property Rights”)
necessary to conduct their businesses as now conducted, as described in the
Registration Statement, the Time of Sale Prospectus, the Prospectus and any
respective amendments or supplements thereto. The expiration of any
of such Intellectual Property Rights would not have a material adverse effect on
the Company and its subsidiaries, taken as a whole. None of the
Company, any of its subsidiaries or the Fund has received any notice of any
infringement of or conflict with asserted rights of the Company, any of its
subsidiaries or the Fund by others with respect to any Intellectual Property
Rights necessary to conduct the business of the Company, any of its subsidiaries
or the Fund as now conducted, except as would not have a material adverse effect
on the Company and its subsidiaries, taken as a whole. The Company,
its subsidiaries and the Fund do not, in the conduct of their business as now
conducted, infringe or conflict with any right or patent of any third party or,
to the knowledge of the Company, its subsidiaries or the Fund, any discovery,
invention, product or process which is the subject of a patent application filed
by any third party, which such infringement or conflict is reasonably likely to
have a material adverse effect on the Company and its subsidiaries, taken as a
whole.
(z) The
Company, each subsidiary and the Fund possesses such valid and current
certificates, authorizations, permits or licenses issued by the appropriate
state, federal or foreign regulatory agencies or bodies necessary to conduct
their respective businesses as now conducted, and none of the Company, any
subsidiary or the Fund has received any notice of proceedings relating to the
revocation or modification of, or non-compliance with, any such certificate,
authorization or permit, except in each case as would not have a material
adverse effect on the Company and its subsidiaries, taken as a
whole.
(aa) The
Company, each of its subsidiaries and the Fund have good and marketable title to
all the real properties reflected as owned in the financial statements referred
to in Section
1(w) above or elsewhere in the Registration Statement, Time of Sale
Prospectus and Prospectus, in each case free and clear of any security
interests, mortgages, liens, encumbrances, equities, claims and other defects,
with such exceptions as are described in the Registration Statement, Time of
Sale Prospectus and Prospectus or are not material and do not materially
interfere with the use made or proposed to be made of such property or assets by
the Company, such subsidiary or the Fund. The real property,
improvements, equipment and personal property held under lease by the Company,
any subsidiary or the Fund are held under valid and enforceable leases, with
such exceptions as are described in the Registration Statement, Time of Sale
Prospectus and Prospectus or are not material and do not materially interfere
with the use made or proposed to be made of such real property, improvements,
equipment or personal property by the Company, such subsidiary or the
Fund. Each of the mortgages, deeds of trust or other security
agreements executed and/or delivered by or to the Company, any subsidiary or the
9
Fund, as
applicable, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, are enforceable in accordance with their
terms, subject to principles of equity and bankruptcy, insolvency, moratorium
and other laws generally applicable to creditors’ rights and the enforcement of
debtors’ obligations. There are no facts that would impair the
validity or value of any of such mortgages, deeds of trust or other security
agreements and such mortgages, deeds of trust or other security agreements are
not the subject of any breach, default or event that, with the passage of time
or the giving of notice or both, would result in such a breach or default except
as described in the Registration Statement, Time of Sale Prospectus or
Prospectus or for such facts, breaches, defaults or events as would not have a
material adverse effect on the Company and its subsidiaries, taken as a
whole.
(bb) Except
for (i) CT Investment with respect to sales tax for the period from September 1,
2001 to September 1, 2007, which is currently being audited, and (ii) CT XX XX,
LLC, an entity 50% owned by CT Investment, with respect to unincorporated
business taxes owed by CT XX XX, LLC which is currently being audited, the
Company, its subsidiaries and the Fund have filed all necessary federal, state
and foreign income and franchise tax returns and have paid all taxes required to
be paid by any of them and, if due and payable, any related or similar
assessment, fine or penalty levied against any of them. The Company
has made adequate charges, accruals and reserves in the applicable financial
statements referred to in Section 1(w) above in
respect of all federal, state and foreign income and franchise taxes for all
periods as to which the tax liability of the Company, any of its subsidiaries or
the Fund has not been finally determined. The Company, its
subsidiaries and the Fund are not aware of any tax deficiency that has been or
might be asserted or threatened against the Company, its subsidiaries or the
Fund.
(cc) There
are no transfer taxes or other similar fees or charges under federal law or the
laws of any state, or any political subdivision thereof, required to be paid in
connection with the execution and delivery of this Agreement or the issuance and
sale by the Company of the Shares.
(dd) Each
of the Company, its subsidiaries and the Fund are insured in such amounts and
with such deductibles and covering such risks as are generally deemed adequate
and customary for their businesses, including, but not limited to, policies
covering real and personal property owned or leased by the Company, its
subsidiaries and the Fund against theft, damage, destruction, acts of vandalism,
general liability and directors’ and officers’ liability. None of the
Company, any of its subsidiaries nor the Fund has received notice that it will
not be able to or has reason to believe that it will not be able to (i) renew
their existing insurance coverage as and when such policies expire, or (ii)
obtain comparable coverage from similar institutions as may be necessary or
appropriate to conduct their business as now conducted and at a cost that would
not have a material adverse effect on the Company and its subsidiaries, taken as
a whole.
(ee) Neither
the Company nor any of its directors, officers or controlling persons has taken,
nor will it take, directly or indirectly, any action designed to or that might
reasonably be expected to cause or result in stabilization or manipulation of
the price of the Class A Common
Stock to facilitate the sale or resale of the Shares or which would otherwise be
in contravention of applicable law.
10
(ff) There
are no business relationships or related-party transactions involving the
Company, any subsidiary, the Fund or any other person required to be described
in the Registration Statement, Time of Sale Prospectus or Prospectus which have
not been described as required.
(gg) The
documents incorporated or deemed to be incorporated by reference in the
Registration Statement, Time of Sale Prospectus and Prospectus, at the time they
were or hereafter are filed with the Commission, complied and will comply in all
material respects with the requirements of the Exchange Act and, at the time the
Registration Statement and any amendments thereto became effective and at the
Closing Date, will not contain an untrue statement of a material fact or, taken
as a whole, omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.
(hh) The
Company and its subsidiaries maintain systems of “internal control over
financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that
comply with the requirements of the Exchange Act and are sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability; (iii) access to assets is permitted
only in accordance with management’s general or specific authorization; and (iv)
the recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences; the chief executive officer and principal financial officer of the
Company have made all certifications required by the Xxxxxxxx-Xxxxx Act and any
related rules and regulations promulgated by the Commission thereunder; and the
Company is otherwise in compliance with all applicable provisions of the
Xxxxxxxx-Xxxxx Act and the rules and regulations issued thereunder by the
Commission currently in effect and requiring compliance as of the date hereof
and as of the Closing Date. Since the end of the Company’s fiscal
year for 2007, there has been no change in the Company’s internal control over
financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company’s internal control over financial
reporting. Except as disclosed in the Registration Statement, the
Time of Sale Prospectus and the Prospectus, the Company is not aware of any
material weaknesses in the Company’s internal controls.
(ii) The
Company and its subsidiaries maintain an effective system of “disclosure
controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that
complies with the requirements of the Exchange Act and is designed to ensure
that information required to be disclosed by the Company in reports that it
files or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the Commission’s rules and forms,
including, but not limited to, controls and procedures designed to ensure that
such information is accumulated and communicated to the Company’s management as
appropriate to allow timely decisions regarding required
disclosure. The Company and its subsidiaries have carried out
evaluations of the effectiveness of their disclosure controls and procedures as
required by Rule 13a-15 of the Exchange Act.
(jj) The
Company has obtained directors’ and officers’ liability insurance in the minimum
amount of $10,000,000 and no claims thereunder are outstanding.
11
(kk) Neither
the Company nor any of its subsidiaries nor, to the Company’s knowledge, any
director, officer, agent, employee or other person associated with or acting on
behalf of the Company or any of its subsidiaries has (i) made any contribution
or other payment to any official of, or candidate for, any federal, state or
foreign office in violation of any law or of the character required to be
disclosed in the Registration Statement, Time of Sale Prospectus or Prospectus;
(ii) made any payment of funds of the Company or any subsidiary or received or
retained any funds in violation of any law, rule or regulation or of a character
required to be disclosed in the Registration Statement, Time of Sale Prospectus
or Prospectus which has not been so disclosed; (iii) used any corporate funds
for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; (iv) made any direct or indirect unlawful
payment to any foreign or domestic government official or employee from
corporate funds; (v) violated or is in violation of any provision of the Foreign
Corrupt Practices Act of 1977; or (vi) made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment.
(ll) The
operations of the Company, its subsidiaries and the Fund are and have been
conducted at all times in compliance with applicable financial recordkeeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, the money laundering statutes of all jurisdictions, the rules
and regulations thereunder and any related or similar rules, regulations or
guidelines issued, administered or enforced by any governmental agency
(collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the
Company, any of its subsidiaries or the Fund with respect to the Money
Laundering Laws is pending or, to the best knowledge of the Company, its
subsidiaries and the Fund, threatened.
(mm) None
of the Company, any of its subsidiaries, the Fund or, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company, any
of its subsidiaries or the Fund is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Department of
the Treasury (“OFAC”);
and the Company will not directly or indirectly use the proceeds of the offering
of the Shares hereunder, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, for
the purpose of financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC.
(nn) There
is no transaction, arrangement or other relationship among the Company, any of
its subsidiaries, the Fund and/or any unconsolidated or other off-balance sheet
entity that is required to be disclosed by the Company in its filings with the
Commission and is not so disclosed.
(oo) The
statistical and market-related data included in the Registration Statement, the
Time of Sale Prospectus and the Prospectus are based on or derived from sources
which the Company reasonably and in good faith believes are reliable and
accurate, and such data agree with the sources from which they are
derived.
(pp) The
Company, its subsidiaries and the Fund are as of the date hereof, and will be as
of the Closing Date, in compliance with their respective investment,
underwriting and
12
risk-adjusted
capital guidelines, policies and procedures, except where any noncompliance
would not result in a material adverse effect on the Company and its
subsidiaries, taken as a whole.
(qq) The
Company is organized and beginning with its 2003 taxable year has operated and
thereafter has and expects to continue to operate in a manner so as to qualify
as a real estate investment trust (“REIT”) under Sections 856
through 860 of the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder (collectively, the “Code”), and intends to elect
to, and to remain qualified to, be taxed as a REIT under the Code and pursuant
to any applicable state tax laws. The Company does not know of any
event which would cause, or is likely to cause, the Company to fail to qualify
as a REIT for any taxable year since 2003.
(rr) Except
with respect to the Company’s securitizations involving collateralized debt
obligations, none of the Company, any of its other subsidiaries nor any of their
assets are expected to be treated as a taxable mortgage pool.
(ss) The
entities listed on Schedule III hereto
are wholly-owned subsidiaries of the Company and are “qualified REIT
subsidiaries” within the meaning of Section 856(i) of the Code. The
Company has no other “qualified REIT subsidiaries.”
(tt) CT
Investment Management Co., LLC, VIC, Inc., VCG Montreal, Inc. and CT-F2-GP,
LLC are wholly-owned subsidiaries of the Company and are “taxable REIT
subsidiaries” within the meaning of Section 856(l) of the Code. The
Company owns 25% of Xxxxxx Xxxxxxx 2007-XLC1, LTO and 40% of CTX CDO I,
LTO, both of which are “taxable REIT subsidiaries” within the meaning of Section
856(1) of the Code. The Company has no other “taxable REIT
subsidiaries.”
(uu) Neither
the Company nor any of its subsidiaries has been asked to replace or substitute
collateral in any of its collateralized debt obligations or to indemnify any
party under any collateralized debt obligations except for with respect to the
indemnification of certain parties such as underwriters, trustees and hedge
counterparties in connection with collateralized debt obligation
issuances.
(vv) The
sale of the Shares as contemplated in this Agreement will not result in an
antidilution or other adjustment of the exercise price or number of securities
issuable upon exercise of any options, warrants or other convertible securities
outstanding on the date hereof, and on the Closing Date.
(ww) Subsequent
to the respective dates as of which information is given in the Registration
Statement, the Time of Sale Prospectus and the Prospectus, except as otherwise
disclosed in the Registration Statement, Time of Sale Prospectus and Prospectus,
(i) the Company and its subsidiaries, taken as a whole, have not incurred any
material liability or obligation, direct or contingent, nor entered into any
material transaction not in the ordinary course of business; (ii) the Company
and its subsidiaries have not purchased any of the Company’s outstanding capital
stock, and the Company has not declared, paid or otherwise made any dividend or
distribution of any kind on its capital stock; and (iii) there has not been any
material change in the capital stock or material increase in long-term debt of
the Company and
13
its
subsidiaries, taken as a whole, except in each case as reflected in the
Registration Statement, Time of Sale Prospectus and
Prospectus. Except as disclosed in the Registration Statement, Time
of Sale Prospectus and Prospectus, as of the date hereof, none of the loans of
the Company, the subsidiaries or the Fund are in default and none of the
Company, the subsidiaries or the Fund has received notice from any borrower
under any loan that a default is imminent and all of the investments of the
Company, the subsidiaries and the Fund are making payments in accordance with
their contractual terms.
(xx) As
of January 1, 2008, the Company had no accumulated earnings or profits from any
tax years in which it was taxed as a regular corporation.
(yy) Neither
the issuance, sale and delivery of the Shares nor the application of the
proceeds thereof by the Company as described in the Registration Statement, the
Time of Sale Prospectus and the Prospectus will violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System or any other regulation of
such Board of Governors.
(zz) No
forward-looking statement (within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act) contained in the Registration
Statement, the Time of Sale Prospectus and the Prospectus has been made or
reaffirmed without a reasonable basis or has been disclosed other than in good
faith.
(aaa) There
are no contracts, agreements or documents of a character required under the
Securities Act to be described in the Registration Statement, the Time of Sale
Prospectus or the Prospectus or to be filed as exhibits to the Registration
Statement that are not so described in the Registration Statement, the Time of
Sale Prospectus and the Prospectus or filed as exhibits to the Registration
Statement.
Any
certificate signed by an officer of the Company and delivered to the Underwriter
or to counsel for the Underwriter shall be deemed to be a representation and
warranty by the Company to the Underwriter as to the matters set forth
therein.
2. Agreements to Sell and
Purchase. The Company hereby agrees with the Underwriter to
issue and sell to the Underwriter, and the Underwriter, upon the basis of the
representations, warranties and agreements herein contained, but subject to the
conditions set forth herein, agrees, to purchase from the Company at $28.20 a
share (the “Purchase
Price”) the number of Shares to be sold by the Company set forth in Schedule I attached
hereto opposite the name of the Underwriter; provided, however, that the
Purchase Price shall be equal to the initial public reoffer price per share for
any Shares placed with EGI-Properties Fund (08-10), L.L.C., Berkley Insurance
Company, Berkley Regional Insurance Company and Nautilus Insurance Company;
provided, however, that the Purchase Price shall in no event be less than
$28.20.
The
Company hereby agrees that, without the prior written consent of the
Underwriter, it will not, during the period ending 45 days after the date of the
Prospectus (the “restricted
period”), (i) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend or otherwise transfer or dispose of, directly
or indirectly, any shares of Class A Common Stock or any securities convertible
into or exercisable or exchangeable for shares of Class A Common Stock
14
or (ii)
enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of the shares of Class A
Common Stock, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of shares of Class A Common Stock or such other
securities, in cash or otherwise.
The
restrictions contained in the preceding paragraph shall not apply to (A) the
Shares to be sold hereunder, (B) the issuance by the Company of shares of Class
A Common Stock upon the exercise, conversion or exchange of options, warrants or
other convertible or exchangeable securities outstanding on the date hereof, (C)
the grant of options or warrants pursuant to the terms of a plan in effect on
the date hereof, provided that any option or warrant so issued shall not be
exercised during the period ending 45 days after the date of the Prospectus, (D)
the grant of shares or restricted shares of Class A Common Stock pursuant to the
terms of a plan or agreement in effect on the date hereof, provided that any
such stock so issued shall not vest during the period ending 45 days after the
date of the Prospectus or the recipient of such stock agrees not to transfer
such stock during such period, or (E) the issuance of shares of Class A Common
Stock pursuant to a dividend reinvestment plan in effect on the date
hereof.
If (1)
during the last 17 days of the restricted period the Company issues an earnings
release or material news or a material event relating to the Company occurs or
(2) prior to the expiration of the restricted period, the Company announces that
it will release earnings results during the 16-day period beginning on the last
day of the restricted period, the restrictions imposed shall continue to apply
until the expiration of the 18-day period beginning on the issuance of the
earnings release or the occurrence of the material news or material event unless
the Underwriter waives, in writing, such extension.
3. Public
Offering. The Company is advised by the Underwriter that the
Underwriter proposes to make a public offering of the Shares as soon after this
Agreement has been executed as in the Underwriter’s judgment is
advisable. The Company is further advised by the Underwriter that the
Shares are to be offered to the public upon the terms set forth in the
Prospectus. At the request of the Company on the date hereof, the
Underwriter shall offer to sell up to 248,400 Shares to EGI-Properties Fund
(08-10), L.L.C., 350,000 Shares to Berkley Regional Insurance Company, 200,000
Shares to Berkley Insurance Company and 160,113 Shares to Nautilus Insurance
Company.
4. Payment and
Delivery. Payment for the Shares shall be made to the Company
by wire transfer in federal or other funds immediately available in New York
City against delivery of such Shares for the account of the Underwriter at 10:00
a.m., New York City time, on March 28, 2008, or at such other time on the
same or such other date, not later than March 31, 2008, as shall be
designated in writing by the Underwriter. The time and date of such
payment for the Shares is referred to herein as the “Closing Date.”
The
Shares shall be registered in such names and in such denominations as the
Underwriter shall request in writing not later than one full business day prior
to the Closing Date for the account of the Underwriter against payment of the
Purchase Price therefor, with any transfer taxes payable in connection with the
transfer of the Shares to the Underwriter duly paid, against payment of the
Purchase Price therefor.
15
5. Conditions to the Obligations of the
Underwriter. The obligations of the Underwriter are subject to
the condition that the Registration Statement shall remain effective on the date
hereof and the Closing Date and no stop order with respect to the effectiveness
of the Registration Statement shall have been issued under the Securities Act
nor any proceedings initiated under Sections 8(d) or 8(e) of the Securities Act,
and to the following additional conditions.
(a) Subsequent
to the execution and delivery of this Agreement and prior to the Closing
Date:
(i) there
shall not have occurred any downgrading, nor shall any notice have been given of
any intended or potential downgrading or of any review for a possible change
that does not indicate the direction of the possible change, in the rating
accorded any of the securities of the Company or any of its subsidiaries by any
“nationally recognized statistical rating organization,” as such term is defined
for purposes of Rule 436(g)(2) under the Securities Act; and
(ii) there
shall not have occurred any change, or any development involving a prospective
change, in the condition, financial or otherwise, or in the earnings, business
or operations of the Company and its subsidiaries, taken as a whole, and the
Fund from that set forth in the Time of Sale Prospectus and Prospectus
(exclusive of any amendments or supplements thereto subsequent to the date of
this Agreement) that, in the Underwriter’s judgment, is material and adverse and
that makes it, in the Underwriter’s judgment, impracticable to market the Shares
on the terms and in the manner contemplated in the Time of Sale Prospectus and
Prospectus.
(b) The
Underwriter shall have received on the Closing Date a certificate dated the
Closing Date and signed by the chief executive officer and chief financial
officer of the Company, (i) that such officers have carefully reviewed the
Registration Statement, the Time of Sale Prospectus and the Prospectus and, to
the best knowledge of such officers, the representations set forth in Sections 1(a)-(d)
hereof are true and correct, (ii) to the effect set forth in Section 5(a) above,
(iii) that no stop order with respect to the effectiveness of the Registration
Statement has been issued under the Securities Act nor any proceedings have been
initiated under Sections 8(d) or 8(e) of the Securities Act and (iv) that the
representations and warranties of the Company contained in this Agreement are
true, correct and complete as of the Closing Date and that the Company has
complied with all of the agreements and satisfied all of the conditions on its
part to be performed or satisfied hereunder on or before the Closing
Date.
The
officers signing and delivering such certificate may rely upon the best of his
or her knowledge as to proceedings threatened.
(c) The
Underwriter shall have received on the Closing Date, an opinion of Xxxxxxx LLP,
Maryland counsel for the Company, dated the Closing Date in the form attached
hereto as Exhibit
B.
16
(d) The
Underwriter shall have received on the Closing Date, an opinion and letter of
Paul, Hastings, Xxxxxxxx & Xxxxxx LLP, outside counsel to the Company, dated
the Closing Date in the form attached hereto as Exhibit
C.
(e) The
Underwriter shall have received on the Closing Date, an opinion and letter of
O’Melveny & Xxxxx LLP, counsel for the Underwriter, dated the Closing Date,
in form and substance satisfactory to the Underwriter.
(f) The
Underwriter shall have received, on each of the date hereof and the Closing
Date, a letter dated the date hereof, and the Closing Date in form and substance
reasonably satisfactory to the Underwriter, from Ernst & Young LLP,
independent public accountants, containing statements and information of the
type ordinarily included in accountants’ “comfort letters” to underwriters with
respect to the financial statements and certain financial information contained
in or incorporated by reference in the Registration Statement, the Time of Sale
Prospectus and the Prospectus provided that the letter delivered on the Closing
Date shall use a “cut-off date” not earlier than the date hereof.
(g) The
Lock-up Agreements between the Underwriter and the parties set forth on Schedule IV relating
to sales and certain other dispositions of shares of Class A Common Stock or
certain other securities, delivered to the Underwriter on or before the date
hereof, shall be in full force and effect on the Closing Date.
(h) On
or before the Closing Date, the Underwriter and counsel for the Underwriter
shall have received such information, documents and opinions as they may
reasonably require for the purposes of enabling them to pass upon the issuance
and sale of the Shares as contemplated herein, or in order to evidence the
accuracy of any of the representations and warranties or the satisfaction of any
of the conditions or agreements herein contained.
(i) The
Shares shall have been approved for listing on the NYSE, subject to official
notice of issuance.
6. Covenants.
The
Company covenants with the Underwriter as follows:
(a) To
furnish to the Underwriter, without charge, one (1) photocopy of the manually
signed Registration Statement (including exhibits thereto and documents
incorporated by reference therein) and for delivery to the Underwriter a
conformed copy of the Registration Statement (without exhibits thereto but
including documents incorporated by reference therein) and to deliver to the
Underwriter, during the period mentioned in Section 6(e) or 6(f) below, as many
copies of the Registration Statement, the Time of Sale Prospectus, the
Prospectus, any free writing prospectus, any documents incorporated by reference
therein and any supplements and amendments thereto or to the Registration
Statement as the Underwriter may reasonably request.
(b) Before
amending or supplementing the Registration Statement, the Time of Sale
Prospectus or the Prospectus, to furnish to the Underwriter a copy of each such
proposed amendment or supplement and not to file any such proposed amendment or
supplement to which the Underwriter reasonably objects, and to file with the
Commission within the applicable period
17
specified
in Rule 424(b) under the Securities Act any prospectus required to be filed
pursuant to such Rule.
(c) To
furnish to the Underwriter a copy of each proposed free writing prospectus
relating to the offering and sale of the Shares to be prepared by or on behalf
of, used by or referred to by the Company and not to use or refer to any
proposed free writing prospectus to which the Underwriter reasonably
objects.
(d) Not
to take any action that would result in the Underwriter or the Company being
required to file with the Commission pursuant to Rule 433(d) under the
Securities Act a free writing prospectus prepared by or on behalf of the
Underwriter that the Underwriter otherwise would not have been required to file
thereunder.
(e) If
the Time of Sale Prospectus is being used to solicit offers to buy the Shares at
a time when the Prospectus is not yet available to prospective purchasers and
any event shall occur or condition exist as a result of which it is necessary to
amend or supplement the Time of Sale Prospectus in order to make the statements
therein, in the light of the circumstances when delivered to a prospective
purchaser, not misleading, or if any event shall occur or condition exist as a
result of which the Time of Sale Prospectus conflicts with the information
contained in the Registration Statement then on file, or if, in the opinion of
counsel for the Underwriter, it is necessary to amend or supplement the Time of
Sale Prospectus to comply with applicable law, forthwith to prepare, file with
the Commission and furnish, at its own expense, to the Underwriter and to any
dealer upon request, either amendments or supplements to the Time of Sale
Prospectus so that the statements in the Time of Sale Prospectus as so amended
or supplemented will not, in the light of the circumstances when delivered to a
prospective purchaser, be misleading or so that the Time of Sale Prospectus, as
amended or supplemented, will no longer conflict with the Registration Statement
or so that the Time of Sale Prospectus, as amended or supplemented, will comply
with applicable law.
(f) If,
during such period after the first date of the public offering of the Shares as
in the opinion of counsel for the Underwriter the Prospectus (or in lieu thereof
the notice referred to in Rule 173(a) under the Securities Act) is required by
law to be delivered in connection with sales by an Underwriter or dealer, any
event shall occur or condition exist as a result of which it is necessary to
amend or supplement the Prospectus in order to make the statements therein, in
the light of the circumstances when the Prospectus (or in lieu thereof the
notice referred to in Rule 173(a) under the Securities Act) is delivered to a
purchaser, not misleading, or if, in the opinion of counsel for the Underwriter,
it is necessary to amend or supplement the Prospectus to comply with applicable
law, forthwith to prepare, file with the Commission and furnish, at its own
expense, to the Underwriter and to the dealers (whose names and addresses the
Underwriter will furnish to the Company) to which Shares may have been sold by
the Underwriter and to any other dealers upon request, either amendments or
supplements to the Prospectus so that the statements in the Prospectus as so
amended or supplemented will not, in the light of the circumstances when the
Prospectus (or in lieu thereof the notice referred to in Rule 173(a) under the
Securities Act) is delivered to a purchaser, be misleading or so that the
Prospectus, as amended or supplemented, will comply with applicable
law.
18
(g) To
endeavor to qualify the Shares for offer and sale under the securities or Blue
Sky laws of such jurisdictions as the Underwriter shall reasonably request,
provided that nothing in this Section 6(g) shall
require the Company to qualify generally to do business in any jurisdiction
where it is not then so qualified, subject the Company to any material tax in
any such jurisdiction where it is not then so subject or require the Company to
file a general consent to service of process in any such
jurisdiction.
(h) To
make generally available to the Company’s security holders and to the
Underwriter as soon as reasonably practicable an earning statement covering the
twelve-month period ending December 31, 2008 that satisfies the provisions of
Section 11(a) of the Securities Act.
(i) To
cause the Shares to be approved for listing on the NYSE, subject to official
notice of issuance.
The
Underwriter, may, in its sole discretion, waive in writing the performance by
the Company of the foregoing covenants or extend the time for the Company’s
performance.
7. Expenses. Whether
or not the transactions contemplated in this Agreement are consummated or this
Agreement is terminated, the Company agrees to pay or cause to be paid all
expenses incident to the performance of the obligations of the Company under
this Agreement, including: (i) the fees, disbursements and expenses of the
Company’s counsel and the Company’s accountants in connection with the
registration and delivery of the Shares under the Securities Act and all other
fees or expenses in connection with the preparation and filing of the
Registration Statement, any preliminary prospectus, the Time of Sale Prospectus,
the Prospectus, any free writing prospectus prepared by or on behalf of, used by
or referred to by the Company and amendments and supplements to any of the
foregoing, including the filing fees payable to the Commission relating to the
Shares (within the time required by Rule 456(b)(1), if applicable), all printing
costs associated therewith and the mailing and delivering of copies thereof to
the Underwriter and dealers, in the quantities hereinabove specified, (ii) all
costs and expenses related to the transfer and delivery of the Shares to the
Underwriter, including any transfer or other taxes payable thereon, (iii) the
cost of printing or producing any Blue Sky or Legal Investment memorandum in
connection with the offer and sale of the Shares under state securities laws and
all expenses in connection with the qualification of the Shares for offer and
sale under state securities laws as provided in Section 6(g) hereof,
including filing fees and the reasonable fees and disbursements of counsel for
the Underwriter in connection with such qualification and in connection with the
Blue Sky or Legal Investment memorandum, (iv) all filing fees and the reasonable
fees and disbursements of counsel to the Underwriter incurred in connection with
the review and qualification of the offering of the Shares by FINRA, (v) all
costs and expenses incident to listing the Shares on the NYSE, (vi) the cost of
printing certificates representing the Shares, (vii) the costs and charges of
any transfer agent, registrar or depositary, (viii) the costs and expenses of
the Company relating to investor presentations on any “road show” undertaken in
connection with the marketing of the offering of the Shares, including, without
limitation, expenses associated with the preparation or dissemination of any
electronic roadshow, expenses associated with the production of road show slides
and graphics, fees and expenses of any consultants engaged in connection with
the road show presentations with the prior approval of the Company, travel and
lodging expenses of the representatives and
19
officers
of the Company and any such consultants and the cost of any aircraft chartered
in connection with the road show, (ix) the document production charges and
expenses associated with printing this Agreement and (x) all other costs and
expenses incident to the performance of the obligations of the Company hereunder
for which provision is not otherwise made in this Section
7. It is understood, however, that except as provided in this
Section 7,
Section 8
entitled “Indemnity and Contribution” and the last paragraph of Section 10 below, the
Underwriter will pay all of its costs and expenses, including fees and
disbursements of its counsel, stock transfer taxes payable on resale of any of
the Shares by them and any advertising expenses connected with any offers they
may make.
8. Indemnity and
Contribution.
(a) The
Company agrees to indemnify and hold harmless the Underwriter, each person, if
any, who controls the Underwriter within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act and each affiliate of the
Underwriter within the meaning of Rule 405 under the Securities Act from and
against any and all losses, claims, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred in connection with
defending or investigating any such action or claim) caused by any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement or any amendment thereof, any preliminary prospectus, the
Time of Sale Prospectus, any free writing prospectus, any issuer free writing
prospectus as defined in Rule 433(h) under the Securities Act, any Company
information that the Company has filed, or is required to file, pursuant to Rule
433(d) under the Securities Act, any broadly available road show or the
Prospectus or any amendment or supplement thereto, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein (in the case of any prospectus, in
the light of the circumstances under which they were made) not misleading,
except insofar as such losses, claims, damages or liabilities are caused by any
such untrue statement or omission or alleged untrue statement or omission based
upon information relating to the Underwriter furnished to the Company in writing
by the Underwriter expressly for use therein, it being understood and agreed
that the only such information furnished by the Underwriter consists of the
information described as such in Section 8(b) below;
provided, however, that the foregoing indemnity agreement with respect to the
Time of Sale Prospectus shall not inure to the benefit of the Underwriter from
whom the person asserting any such losses, claims, damages or liabilities
purchased Shares, or any person controlling the Underwriter or affiliate of the
Underwriter, if a copy of the Time of Sale Prospectus was not sent or given by
or on behalf of the Underwriter to such person, if required by law so to have
been delivered, at or prior to the written confirmation of the sale of the
Shares to such person, and if the Time of Sale Prospectus would have cured the
defect giving rise to such losses, claims, damages or liabilities, unless such
failure is the result of noncompliance by the Company with Section 6(a)
hereof.
(b) The
Underwriter agrees to indemnify and hold harmless the Company, its directors,
its officers who sign the Registration Statement and each person, if any, who
controls the Company within the meaning of either Section 15 of the Securities
Act or Section 20 of the Exchange Act to the same extent as the foregoing
indemnity from the Company to the Underwriter but only with reference to
information relating to the Underwriter furnished to the Company in writing by
the Underwriter expressly for use in the Registration Statement,
any
20
preliminary
prospectus, the Time of Sale Prospectus, any issuer free writing prospectus or
the Prospectus or any amendment or supplement thereto, it being understood and
agreed upon that the only such information furnished by the Underwriter consists
of the information in the Prospectus furnished on behalf of the Underwriter as
set forth in Exhibit
8.A attached hereto.
(c) In
case any proceeding (including any governmental investigation) shall be
instituted involving any person in respect of which indemnity may be sought
pursuant to Section
8(a) or 8(b) above, such
person (the “indemnified
party”) shall promptly notify the person against whom such indemnity may
be sought (the “indemnifying
party”) in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the reasonable
fees and disbursements of such counsel related to such proceeding. In
any such proceeding, any indemnified party shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense
of such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the
indemnifying party shall not, in respect of the legal expenses of any
indemnified party in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for (i) the fees and expenses of more than one
separate firm (in addition to any local counsel) for the Underwriter and all
persons, if any, who control the Underwriter within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act or who are
affiliates of the Underwriter within the meaning of Rule 405 under the
Securities Act, or (ii) the fees and expenses of more than one separate firm (in
addition to any local counsel) for the Company, its directors, its officers who
sign the Registration Statement and each person, if any, who controls the
Company within the meaning of either such Section and directors, officers and
control persons of the Company. The indemnifying party shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party
from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by the second
and third sentences of this paragraph, the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected without its
written consent if (i) such settlement is entered into more than 60 days after
receipt by such indemnifying party of the aforesaid request and (ii) such
indemnifying party shall not have reimbursed the indemnified party in accordance
with such request prior to the date of such settlement. No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect
of which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party, unless such settlement
includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such proceeding and such settlement
does not include a statement as to the admission of fault, culpability or any
failure to act by or on behalf of the indemnified party.
21
(d) To
the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable
to an indemnified party or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each indemnifying party under
such paragraph, in lieu of indemnifying such indemnified party thereunder, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Underwriter on the other hand from the offering of the Shares or
(ii) if the allocation provided by clause 8(d)(i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause 8(d)(i) above but
also the relative fault of the Company on the one hand and of the Underwriter on
the other hand in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The relative benefits received by the
Company on the one hand and the Underwriter on the other hand in connection with
the offering of the Shares shall be deemed to be in the same respective
proportions as the net proceeds from the offering of the Shares (before
deducting expenses) received by the Company and the total underwriting discounts
and commissions received by the Underwriter bear to the aggregate initial public
offering price of the Shares. The relative fault of the Company on
the one hand and the Underwriter on the other hand shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or by the Underwriter and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.
(e) The
Company and the Underwriter agree that it would not be just or equitable if
contribution pursuant to this Section 8 were
determined by pro rata
allocation (even if the Underwriter was treated as one entity for such purpose)
or by any other method of allocation that does not take account of the equitable
considerations referred to in Section
8(d). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages and liabilities referred to in Section 8(d) shall be
deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding
the provisions of this Section 8, the
Underwriter shall not be required to contribute any amount in excess of the
amount by which the total underwriting discounts and commissions received by the
Underwriter with respect to the offering of the Shares exceeds the amount of any
damages that the Underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 8 are not
exclusive and shall not limit any rights or remedies which may otherwise be
available to any indemnified party at law or in equity.
(f) The
indemnity and contribution provisions contained in this Section 8 and the
representations, warranties and other statements of the Company contained in
this Agreement shall remain operative and in full force and effect regardless of
(i) any termination of this Agreement, (ii) any investigation made by or on
behalf of the Underwriter, any person controlling the Underwriter or any
affiliate of the Underwriter or by or on behalf of the
22
Company,
its officers or directors or any person controlling the Company and (iii)
acceptance of and payment for any of the Shares.
9. Termination. The
Underwriter may terminate this Agreement by notice to the Company, in the event,
after the execution and delivery of this Agreement and prior to the Closing
Date, (i) trading generally shall have been suspended or materially limited on
or by, as the case may be, any of the NYSE, the American Stock Exchange, the
NASDAQ Global Market or the Nasdaq National Market, (ii) trading of any
securities of the Company shall have been suspended on any exchange or in any
over-the-counter market, (iii) a material disruption in securities settlement,
payment or clearance services in the United States shall have occurred, (iv) any
moratorium on commercial banking activities shall have been declared by federal
or New York State authorities or (v) there shall have occurred any outbreak or
escalation of hostilities, or any change in financial markets or any calamity or
crisis that, in the Underwriter’s judgment, is material and adverse and which,
singly or together with any other event specified in this clause (v), makes it,
in the Underwriter’s judgment, impracticable or inadvisable to proceed with the
offer, sale or delivery of the Shares on the terms and in the manner
contemplated in the Time of Sale Prospectus or the Prospectus.
10. Effectiveness. This
Agreement shall become effective upon the execution and delivery hereof by the
parties hereto.
If this
Agreement shall be terminated by the Underwriter because of any failure or
refusal on the part of the Company to comply with the terms or to fulfill any of
the conditions of this Agreement, or if for any reason the Company shall be
unable to perform its obligations under this Agreement, the Company shall
reimburse the Underwriter for all out-of-pocket expenses (including the fees and
disbursements of its counsel) reasonably incurred by the Underwriter in
connection with this Agreement or the offering contemplated
hereunder.
11. Entire
Agreement. (a) This Agreement, together with any
contemporaneous written agreements and any prior written agreements (to the
extent not superseded by this Agreement) that relate to the offering of the
Shares, represents the entire agreement between the Company and the Underwriter
with respect to the preparation of any preliminary prospectus, any free writing
prospectus, the Time of Sale Prospectus, the Prospectus, the conduct of the
offering and the purchase and sale of Shares.
(b) The Company acknowledges that in connection with the offering of the Shares:
(i) the Underwriter has acted at arms length, is not an agent of, and owes no
fiduciary duties to, the Company or any other persons; (ii) the Underwriter owes
the Company only those duties and obligations set forth in this Agreement and
prior written agreements (to the extent not superseded by this Agreement), if
any; and (iii) the Underwriter may have interests that differ from those of the
Company. The Company waives to the full extent permitted by
applicable law any claims it may have against the Underwriter arising from an
alleged breach of fiduciary duty in connection with the offering of the
Shares.
12. Counterparts. This
Agreement may be signed in two or more counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.
23
13. Applicable
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.
14. Notices. All
communications hereunder shall be in writing and effective only upon receipt and
if to the Underwriter shall be delivered, mailed or sent to you at the address
set forth in Schedule
I hereto; and if to the Company shall be delivered, mailed or sent to the
address set forth in Schedule I
hereto.
15. Headings. The
headings of the sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed a part of this Agreement.
16. Parties. This Agreement shall
inure to the benefit of and be binding upon the parties and their respective
successors.
[Remainder
of page intentionally left blank.]
24
Very
truly yours,
CAPITAL
TRUST, INC.
By:
/s/ Xxxxxxxx X.
Xxxxxx
Name:
Xxxxxxxx X. Xxxxxx
Title:
Chief Financial Officer
|
[Signature
page to Underwriting Agreement]
25
Accepted
as of the date first above written
XXXXXX
XXXXXXX & CO. INCORPORATED
By: /s/ Xxxxxxx X.
Xxxx
Name:
Xxxxxxx X. Xxxx
Title:
Managing Director
[Signature
page to Underwriting Agreement]
26
SCHEDULE
I
Underwriter
|
Number
of Shares to Be Purchased
|
|
Xxxxxx
Xxxxxxx & Co.
Incorporated
|
4,000,000
|
|
Total:
|
4,000,000
|
Free
Writing Prospectuses
|
Issuer
Free Writing Prospectus filed pursuant to Rule 433 on March 24,
2008.
|
Term
Sheet
|
Term
Sheet dated March 24, 2008.
|
Press
Release
|
Press
Release entitled “Capital Trust Announces Public Offering of 4,000,000
Shares of Class A Common Stock” dated March 24,
2008.
|
Address
for Notices to the Underwriter
|
Xxxxxx
Xxxxxxx & Co. Incorporated
|
|
0000
Xxxxxxxx
|
|
Xxx
Xxxx, Xxx Xxxx 00000
|
Schedule
I-1
Address
for Notices to the Company
|
Capital
Trust, Inc.
000
Xxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx, Xxx Xxxx 00000
Attention:
Chief Financial Officer
|
2
SCHEDULE
II
Capital
Trust RE CDO 2004-1 Ltd.
Capital
Trust RE CDO 2005-1 Ltd.
CT CDO
III Ltd.
CT CDO IV
Ltd.
CT CDO V
Ltd.
Schedule II-1
SCHEDULE
III
Wholly-owned
“qualified REIT subsidiaries”
CTAMPI
MS, Ltd.
Capital
Trust RE CDO Depositor, Corp.
CT LF
Funding Corp.
CT BSI
Funding Corp.
Capital
Trust RE CDO 2004-1 LTD.
Capital
Trust RE CDO 2005-1 LTD.
CT CDO
III LTD.
CT CDO IV
LTD.
CT CDO V
LTD.
Capital
Trust RE CDO 2004-1 Corp.
Capital
Trust RE CDO 2005-1 Corp.
CT CDO
III Corp.
CT CDO IV
Corp.
CT CDO V
Corp.
Schedule III-1
SCHEDULE
IV
1. Xxxxxx
X. Xxxxxxxxx
2. Xxxxxx
X. Xxxxxxx
3. Xxxxx
X. Xxxxxxx
4. Xxxxxx
X. Xxxxx
5. Xxxxxxxx
X. Xxxxxx
6. Xxxx
X. Xxxxx
7. Xxxxx
X. Nassau
8. Xxxxxxx
X. Xxxxxx
9. Xxxxxx
X. Xxxxx
10. Xxxxxx
X. Xxxxxxx
11. Xxxxx
X. Xxxxxxx
12. Xxxxxx
Xxxx
13. Veqtor
Finance Company, L.L.C.
14. Samstock,
L.L.C.
15. X.
X. Xxxxxxx Corporation
16. Berkley
Insurance Company
17. Berkley
Regional Insurance Company
18. Admiral
Insurance Company
19. Nautilus
Insurance Company
20. EGI-
Properties Fund (08-10), L.L.C.
Schedule IV-1
EXHIBIT
A
FORM
OF LOCK-UP LETTER (DIRECTORS AND OFFICERS)
March __,
2008
Xxxxxx
Xxxxxxx & Co. Incorporated
0000
Xxxxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Dear Sirs
and Mesdames:
The
undersigned understands that Xxxxxx Xxxxxxx & Co. Incorporated (the “Underwriter”) proposes to
enter into an Underwriting Agreement (the “Underwriting Agreement”) with Capital
Trust, Inc., a Maryland corporation (the “Company”), providing for the
public offering (the “Public Offering”) by the Underwriter,
of 4,000,000 shares (the “Shares”) of the class A common
stock, par value $0.01 per share, of the Company (the “Common Stock”).
To induce
the Underwriter to continue its efforts in connection with the Public Offering,
the undersigned hereby agrees that, without the prior written consent of the
Underwriter, it will not, during the period commencing on the date hereof and
ending 45 days after the date of the final prospectus relating to the Public
Offering (the “restricted
period”), (1) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend or otherwise transfer or dispose of, directly
or indirectly, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock (including, for the avoidance of
doubt, any shares held by an affiliate of the undersigned) or (2) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of
the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise. The
foregoing sentence shall not apply to (a) transactions relating to shares of
Common Stock or other securities acquired in open market transactions after the
closing of the Public Offering, (b) in connection with the receipt of securities
issued to the undersigned by the Company pursuant to long-term incentive plans
existing on the date hereof, the withholding of any shares (“Withheld Shares”) by the
Company in respect of tax liabilities with respect to such issuance or any
deemed disposition or sale with respect to such Withheld Shares, (c) transfers
to any parent, grandparent, stepparent, mother-in-law, father-in-law, spouse,
former spouse, sibling, sister-in-law, brother-in-law, son-in-law,
daughter-in-law, child, stepchild, grandchild, niece or nephew of the
undersigned, including adoptive relationships (each, a “Family Member”), or (d)
transfers solely for estate planning purposes to any trust for the direct or
indirect benefit of the undersigned or any Family Member or to any corporation,
limited liability company, partnership or other entity beneficially owned,
directly or indirectly, solely by such trusts, the undersigned or
Exhibit
A-1
any
Family Member; provided, however, that in the case of any transfer pursuant to
clause (c) or (d) hereunder (i) the transferee agrees to be bound in writing by
the restrictions set forth herein and (ii) no filing under Section 16(a) of the
Securities Exchange Act of 1934, as amended, reporting a reduction in beneficial
ownership of shares of Common Stock shall be required or shall be voluntarily
made during the restricted period. In addition, the undersigned
agrees that, without the prior written consent of the Underwriter, it will not,
during the restricted period, make any demand for or exercise any right with
respect to the registration of any shares of Common Stock or any security
convertible into or exercisable or exchangeable for shares of Common
Stock. The undersigned also agrees and consents to the entry of stop
transfer instructions with the Company’s transfer agent and registrar against
the transfer of the undersigned’s shares of Common Stock unless such transfer is
in compliance with the foregoing.
If (1)
during the last 17 days of the restricted period the Company issues an earnings
release or material news or a material event relating to the Company occurs or
(2) prior to the expiration of the restricted period, the Company announces that
it will release earnings results during the 16-day period beginning on the last
day of the restricted period, the restrictions imposed by this Lock-up Agreement
shall continue to apply until the expiration of the 18-day period beginning on
the issuance of the earnings release or the occurrence of the material news or
material event unless the Underwriter waives, in writing, such
extension.
The
undersigned understands that the Company and the Underwriter are relying upon
this Lock-up Agreement in proceeding toward consummation of the Public
Offering. The undersigned further understands that this Lock-up
Agreement is irrevocable and shall be binding upon the undersigned’s heirs,
legal representatives, successors and assigns.
Whether
or not the Public Offering actually occurs depends on a number of factors,
including market conditions. Any Public Offering will only be made
pursuant to an Underwriting Agreement, the terms of which are subject to
negotiation between the Company and the Underwriter. The Lock-up
Agreement shall terminate if, prior to April 30, 2008, the Public Offering does
not occur or the Underwriting Agreement is terminated.
Very
truly yours,
(Name)
(Address)
|
Exhibit A-2
FORM
OF LOCK-UP LETTER (BERKLEY ENTITIES)
March __,
2008
Xxxxxx
Xxxxxxx & Co. Incorporated
0000
Xxxxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Dear Sirs
and Mesdames:
The
undersigned understands that Xxxxxx Xxxxxxx & Co. Incorporated (the “Underwriter”) proposes to
enter into an Underwriting Agreement (the “Underwriting Agreement”) with Capital
Trust, Inc., a Maryland corporation (the “Company”), providing for the
public offering (the “Public Offering”) by the Underwriter,
of 4,000,000 shares (the “Shares”) of the class A common
stock, par value $0.01 per share, of the Company (the “Common Stock”).
To induce
the Underwriter to continue its efforts in connection with the Public Offering,
the undersigned hereby agrees that, without the prior written consent of the
Underwriter, it will not, during the period commencing on the date hereof and
ending 45 days after the date of the final prospectus relating to the Public
Offering (the “restricted
period”), (1) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend or otherwise transfer or dispose of, directly
or indirectly, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock (including, for the avoidance of
doubt, any shares held by an affiliate of the undersigned) or (2) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of
the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise. The
foregoing sentence shall not apply to (a) transactions relating to shares of
Common Stock or other securities acquired in open market transactions after the
closing of the Public Offering, (b) transfers to any affiliate controlled by the
undersigned (for purposes of this Lock-up Agreement, “affiliate” means, with respect
to any person or entity, any other person or entity that directly or indirectly
controls or is controlled by or is under common control with such person or
entity; and “control”
means, when used with respect to any person or entity, possession, whether
direct or indirect, of the power to direct or cause the direction of the
management and policies of such person or entity, whether through the ownership
of voting securities, by contract or otherwise), (c) transfers, sales or other
dispositions of shares of Common Stock and other voting stock such that after
such transfers, sales or other dispositions, the undersigned shall beneficially
own shares of Common Stock representing less than 20% of the outstanding Common
Stock and other voting stock of the Company, provided that in such case during
the term of this Lock-up Agreement the undersigned shall only transfer, sell or
dispose such amount as is necessary to
Exhibit A-3
ensure
that it does not beneficially own 20% or more of the Common Stock and other
voting stock of the Company, (d) transfers to any parent, grandparent,
stepparent, mother-in-law, father-in-law, spouse, former spouse, sibling,
sister-in-law, brother-in-law, son-in-law, daughter-in-law, child, stepchild,
grandchild, niece or nephew of the undersigned, including adoptive relationships
(each, a “Family
Member”), or (e) transfers solely for estate planning purposes to any
trust, corporation, limited liability company or partnership related solely
thereto for the direct or indirect benefit of the undersigned or any of its
Family Members; provided, however, that in the case of any transfer pursuant to
clause (d) or (e) hereunder (i) the transferee agrees to be bound in writing by
the restrictions set forth herein and (ii) no filing under Section 16(a) of the
Securities Exchange Act of 1934, as amended, reporting a reduction in beneficial
ownership of shares of Common Stock shall be required or shall be voluntarily
made during the restricted period. In addition, the undersigned
agrees that, without the prior written consent of the Underwriter, it will not,
during the restricted period, make any demand for or exercise any right with
respect to the registration of any shares of Common Stock or any security
convertible into or exercisable or exchangeable for Common Stock. The
undersigned also agrees and consents to the entry of stop transfer instructions
with the Company’s transfer agent and registrar against the transfer of the
undersigned’s shares of Common Stock unless such transfer is in compliance with
the foregoing.
If (1)
during the last 17 days of the restricted period the Company issues an earnings
release or material news or a material event relating to the Company occurs or
(2) prior to the expiration of the restricted period, the Company announces that
it will release earnings results during the 16-day period beginning on the last
day of the restricted period, the restrictions imposed by this Lock-up Agreement
shall continue to apply until the expiration of the 18-day period beginning on
the issuance of the earnings release or the occurrence of the material news or
material event unless the Underwriter waives, in writing, such
extension.
The
undersigned understands that the Company and the Underwriter are relying upon
this Lock-up Agreement in proceeding toward consummation of the Public
Offering. The undersigned further understands that this Lock-up
Agreement is irrevocable and shall be binding upon the undersigned’s heirs,
legal representatives, successors and assigns.
Whether
or not the Public Offering actually occurs depends on a number of factors,
including market conditions. Any Public Offering will only be made
pursuant to an Underwriting Agreement, the terms of which are subject to
negotiation between the Company and the Underwriter. The Lock-up
Agreement shall terminate if, prior to April 30, 2008, the Public Offering does
not occur or the Underwriting Agreement is terminated.
Very
truly yours,
(Name)
(Address)
|
Exhibit A-4
FORM
OF LOCK-UP LETTER (SAMSTOCK/VEQTOR)
March __,
2008
Xxxxxx
Xxxxxxx & Co. Incorporated
0000
Xxxxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Dear Sirs
and Mesdames:
The
undersigned understands that Xxxxxx Xxxxxxx & Co. Incorporated (the “Underwriter”) proposes to
enter into an Underwriting Agreement (the “Underwriting Agreement”) with Capital
Trust, Inc., a Maryland corporation (the “Company”), providing for the
public offering (the “Public Offering”) by the Underwriter,
of 4,000,000 shares (the “Shares”) of the class A common
stock, par value $0.01 per share, of the Company (the “Common Stock”).
To induce
the Underwriter to continue its efforts in connection with the Public Offering,
the undersigned hereby agrees that, without the prior written consent of the
Underwriter, it will not, during the period commencing on the date hereof and
ending 45 days after the date of the final prospectus relating to the Public
Offering (the “restricted
period”), (1) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend or otherwise transfer or dispose of, directly
or indirectly, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock (including, for the avoidance of
doubt, any shares held by an affiliate of the undersigned) or (2) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of
the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise. The
foregoing sentence shall not apply to (a) transactions relating to shares of
Common Stock or other securities acquired in open market transactions after the
closing of the Public Offering, (b) transfers to any parent, grandparent,
stepparent, mother-in-law, father-in-law, spouse, former spouse, sibling,
sister-in-law, brother-in-law, son-in-law, daughter-in-law, child, stepchild,
grandchild, niece or nephew of the undersigned, including adoptive relationships
(each, a “Family
Member”), (c) transfers solely for estate planning purposes to any trust
for the direct or indirect benefit of the undersigned or any Family Member or to
any corporation, limited liability company, partnership or other entity
beneficially owned, directly or indirectly, solely by such trusts, the
undersigned or any Family Member or (d) pledges of Common Stock to secure loans
with broker-dealers and other financial institutions (and such broker-dealers
and other financial institutions shall be entitled to foreclose on such pledges
in accordance with the terms thereof); provided, however, that in the case of
any transfer pursuant to clause (b) or (c) hereunder (i) the transferee agrees
to be bound in writing by the restrictions set forth herein and (ii) no filing
under
Exhibit A-5
Section
16(a) of the Securities Exchange Act of 1934, as amended, reporting a reduction
in beneficial ownership of shares of Common Stock shall be required or shall be
voluntarily made during the restricted period. In addition, the
undersigned agrees that, without the prior written consent of the Underwriter,
it will not, during the restricted period, make any demand for or exercise any
right with respect to the registration of any shares of Common Stock or any
security convertible into or exercisable or exchangeable for Common
Stock. The undersigned also agrees and consents to the entry of stop
transfer instructions with the Company’s transfer agent and registrar against
the transfer of the undersigned’s shares of Common Stock unless such transfer is
in compliance with the foregoing.
If (1)
during the last 17 days of the restricted period the Company issues an earnings
release or material news or a material event relating to the Company occurs or
(2) prior to the expiration of the restricted period, the Company announces that
it will release earnings results during the 16-day period beginning on the last
day of the restricted period, the restrictions imposed by this Lock-up Agreement
shall continue to apply until the expiration of the 18-day period beginning on
the issuance of the earnings release or the occurrence of the material news or
material event unless the Underwriter waives, in writing, such
extension.
The
undersigned understands that the Company and the Underwriter are relying upon
this Lock-up Agreement in proceeding toward consummation of the Public
Offering. The undersigned further understands that this Lock-up
Agreement is irrevocable and shall be binding upon the undersigned’s heirs,
legal representatives, successors and assigns.
Whether
or not the Public Offering actually occurs depends on a number of factors,
including market conditions. Any Public Offering will only be made
pursuant to an Underwriting Agreement, the terms of which are subject to
negotiation between the Company and the Underwriter. The Lock-up
Agreement shall terminate if, prior to April 30, 2008, the Public Offering does
not occur or the Underwriting Agreement is terminated.
Very
truly yours,
(Name)
(Address)
|
Exhibit A-6
EXHIBIT
B
XXXXXXX
FORM OF OPINION
[attached
hereto]
Exhibit B-1
EXHIBIT
C
XXXX
XXXXXXXX FORM OF OPINION
[attached
hereto]
Exhibit C-1
EXHIBIT
8.A
NONE
Exhibit 8.A-1