exv1w1
Exhibit 1.1
Execution Copy
ASHFORD HOSPITALITY TRUST, INC.
(a Maryland corporation)
7,000,000 Shares of Common Stock
UNDERWRITING AGREEMENT
June 29, 2011
MORGAN STANLEY & CO. LLC
1585 Broadway
New York, NY 10036
CREDIT SUISSE SECURITIES (USA) LLC
Eleven Madison Avenue
New York, NY 10010
KEYBANC CAPITAL MARKETS INC.
127 Public Square
Cleveland, OH 44114
UBS SECURITIES LLC
299 Park Avenue
New York, NY 10171
as
Representatives of the several Underwriters named in Schedule I hereto
Ladies and Gentlemen:
Ashford Hospitality Trust, Inc., a Maryland corporation (the “Company”), and Ashford
Hospitality Limited Partnership, a Delaware limited partnership (the “Operating Partnership”), each
confirms its agreement with each of the Underwriters listed on Schedule I hereto (collectively, the
“Underwriters,” which term shall include any underwriter substituted as provided in Section 8
hereof), for whom Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, KeyBanc Capital
Markets Inc. and UBS Securities LLC are acting as Representatives (in such capacity, the
“Representatives”), with respect to (i) the sale by the Company of 7,000,000 shares (the “Initial
Shares”) of common stock, par value $.01 per share of the Company (the “Common Stock”), and the
purchase by the Underwriters, acting severally and not jointly, of the respective number of shares
of Common Stock set forth opposite the names of the Underwriters in Schedule I hereto, and (ii) the
grant of the option described in Section 1(b) hereof to purchase all or any part of 1,050,000
additional shares of Common Stock to cover over-allotments (the “Option Shares”), if any, from the
Company to the Underwriters, acting severally and not jointly, in the respective number of shares
of Common Stock set forth opposite the names of the Underwriters in Schedule I hereto. The
7,000,000 Initial Shares and all or any part of the 1,050,000 Option Shares are hereinafter called,
collectively, the “Shares.”
The Company will contribute the net proceeds from each sale of the Shares to the Operating
Partnership and, in exchange therefor, at the Closing Time (as defined herein) of each such sale
the Operating Partnership will issue to the Company a number of units of common limited partnership
interest in the Operating Partnership (the “Units”) equal to the number of Shares sold.
The Company understands that the Underwriters propose to make a public offering of the Shares
as soon as the Underwriters deem advisable after this Agreement has been executed and delivered.
The Company has filed with the Securities and Exchange Commission (the “Commission”), a
registration statement on Form S-3 (No. 333-162750), covering the registration of the Shares under
the Securities Act of 1933, as amended (the “Securities Act”). The registration statement is
effective under the Securities Act, and the rules and regulations thereunder (the “Securities Act
Regulations”). No post-effective amendment to the registration statement has been filed as of the
date of this Agreement. Promptly after execution and delivery of this Agreement, the Company will
prepare and file a prospectus in accordance with the provisions of Rule 430B of the Securities Act
(“Rule 430B”) and paragraph (b) of Rule 424 (“Rule 424(b)”) of the Securities Act Regulations. Any
information included in such prospectus that was omitted from such registration statement at the
time it became effective but that is deemed to be part of and included in such registration
statement pursuant to Rule 430B is referred to as “Rule 430B Information.” Each prospectus used in
connection with the offering of Shares that omitted Rule 430B Information is herein called a
“preliminary prospectus.” Such registration statement, at any given time, including the amendments
thereto at such time, the exhibits and any schedules thereto at such time, the documents
incorporated by reference thereto pursuant to Item 12 of Form S-3 under the Securities Act at such
time and the documents otherwise deemed to be a part thereof or included therein by the Securities
Act Regulations, and the Rule 430B Information is herein called the “Registration Statement.” If
the Company files another registration statement with the Commission to register a portion of the
Shares pursuant to Rule 462(b) under the Securities Act (the “Rule 462 Registration Statement”),
then any reference to “Registration Statement” herein shall be deemed to include the Rule 462
Registration Statement. The final prospectus in the form first furnished to the Underwriters for
use in connection with the offering of the Shares, including the documents incorporated by
reference therein pursuant to Item 12 of Form S-3 under the Securities Act at the time of execution
of this Agreement and the base prospectus dated January 25, 2010 (the “Base Prospectus”), including
the documents incorporated by reference therein, is herein called the “Prospectus.”
The Company, the Operating Partnership and the Underwriters agree as follows:
1. Sale and Purchase.
(a) Initial Shares. Upon the basis of the warranties and representations and other terms and
conditions herein set forth, at the purchase price per share of $11.90625, the Company agrees to
sell to the Underwriters the Initial Shares, and each Underwriter agrees, severally and not
jointly, to purchase from the Company the number of Initial Shares set forth in Schedule I opposite
such Underwriter’s name, plus any additional number of Initial Shares that such
- 2 -
Underwriter may become obligated to purchase pursuant to the provisions of Section 8 hereof,
subject in each case, to such adjustments among the Underwriters as the Representatives in their
sole discretion shall make to eliminate any sales or purchases of fractional shares.
(b) Option Shares. In addition, upon the basis of the warranties and representations and
other terms and conditions herein set forth, at the purchase price per share set forth in paragraph
(a), less an amount per share equal to any dividends or distributions declared by the Company and
payable on the Initial Shares but not payable on the Option Shares, the Company hereby grants an
option to the Underwriters, acting severally and not jointly, to purchase from the Company, all or
any part of the Option Shares, plus any additional number of Option Shares that such Underwriter
may become obligated to purchase pursuant to the provisions of Section 8 hereof. The option hereby
granted will expire 30 days after the date hereof and may be exercised in whole or in part from
time to time only for the purpose of covering over-allotments which may be made in connection with
the offering and distribution of the Initial Shares upon notice by the Representatives to the
Company setting forth the number of Option Shares as to which the several Underwriters are then
exercising the option and the time and date of payment and delivery for such Option Shares. Any
such time and date of delivery shall be determined by the Representatives, but shall not be later
than five full business days after the exercise of such option, nor in any event prior to the
Closing Time, as hereinafter defined. If the option is exercised as to all or any portion of the
Option Shares, the Company will sell that number of Option Shares then being purchased, and each of
the Underwriters, acting severally and not jointly, will purchase that proportion of the total
number of Option Shares then being purchased which the number of Initial Shares set forth in
Schedule I opposite the name of such Underwriter bears to the total number of Initial Shares,
subject in each case to such adjustments among the Underwriters as the Representatives in their
sole discretion shall make to eliminate any sales or purchases of fractional shares.
2. Payment and Delivery.
(a) Initial Shares. The Shares to be purchased by each Underwriter hereunder, in definitive
form, and in such authorized denominations and registered in such names as the Representatives may
request upon at least 48 hours’ prior notice to the Company shall be delivered by or on behalf of
the Company to the Representatives, including, at the option of the Representatives, through the
facilities of The Depository Trust Company (“DTC”) for the account of such Underwriter, against
payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of
Federal (same-day) funds to the account specified in writing to the Representatives by the Company
upon at least 48 hours prior notice. The Company will cause the certificates representing the
Initial Shares to be made available for checking and packaging at least 24 hours prior to the
Closing Time (as defined below) with respect thereto at the office of Morgan Stanley & Co. LLC,
1585 Broadway, New York, New York 10036, or at the office of DTC or its designated custodian, as
the case may be (the “Designated Office”). The time and date of such delivery and payment shall be
9:30 a.m., New York City time, on the third business day after the date hereof (unless another time
and date shall be agreed to by the Representatives and the Company). The time at which such
payment and delivery of the Shares are actually made is hereinafter sometimes called the “Closing
Time” and the date of delivery of both the Initial Shares and the Option Shares is hereinafter
sometimes called the “Date of Delivery.”
- 3 -
(b) Option Shares. Any Option Shares to be purchased by each Underwriter hereunder, in
definitive form, and in such authorized denominations and registered in such names as the
Representatives may request upon at least 48 hours prior notice to the Company shall be delivered
by or on behalf of the Company to the Representatives, including, at the option of the
Representatives, through the facilities of DTC for the account of such Underwriter, against payment
by or on behalf of such Underwriter of the purchase price therefor by wire transfer of Federal
(same-day) funds to the account specified in writing to the Representatives by the Company upon at
least 48 hours’ prior notice. The Company will cause the certificates representing the Option
Shares to be made available for checking and packaging at least 24 hours prior to the Date of
Delivery with respect thereto at the Designated Office. The time and date of such delivery and
payment shall be 9:30 a.m., New York City time, on the date specified by the Representatives in the
notice given by the Representatives to the Company of the Underwriters’ election to purchase such
Option Shares or on such other time and date as the Company and the Representatives may agree upon
in writing
3. Representations and Warranties of the Company and the Operating Partnership. The Company
and the Operating Partnership, jointly and severally, represent and warrant to the Underwriters as
of the date hereof, the Applicable Time referred to in Section 3(n) hereof, as of the Closing Time
and as of each respective Date of Delivery referred to in Section 2(a) hereof, that:
(a) the Company has an authorized capitalization of 200 million shares of Common Stock and 50
million shares of preferred stock, par value $.01 per share (the “Preferred Stock”) and an
outstanding capitalization as set forth in the General Disclosure Package (as defined in Section
3(n) hereof) and the Prospectus; the outstanding shares of capital stock or partnership or
membership interests, of the Company and each subsidiary of the Company, including the Operating
Partnership and its subsidiaries (each, a “Subsidiary” and collectively, the “Subsidiaries”), as
applicable, have been duly and validly authorized and issued and are fully paid and, with respect
to shares of capital stock, membership interests and limited partnership interests, non-assessable
(except to the extent such non-assessability may be affected by Section 17-607 of the Delaware
Revised Uniform Limited Partnership Act or Section 18-607 of the Delaware Limited Liability Company
Act), and, except as disclosed in Exhibit A to the Agreement of Limited Partnership of the
Operating Partnership (the “Partnership Agreement”), all of the outstanding shares of capital stock
or partnership or membership interests of the Subsidiaries are directly or indirectly owned of
record and beneficially by the Company, free and clear of any pledge, lien, encumbrance, security
interest or other claim, except for security interests in favor of lenders created pursuant to or
in connection with loan documents disclosed in the General Disclosure Package and the Prospectus,
and, except as disclosed in the General Disclosure Package and the Prospectus and pursuant to
registration rights agreements entered into in connection with acquisitions, there are no
outstanding (i) securities or obligations of the Company or any of the Subsidiaries convertible
into or exchangeable or redeemable for any capital stock or other equity interests of the Company
or any Subsidiary, (ii) warrants, rights or options to subscribe for or purchase from the Company
or any Subsidiary any such capital stock or other equity interests or any such convertible or
exchangeable securities or obligations, or (iii) obligations of the Company or any Subsidiary to
issue any shares of capital stock or other equity interests, any convertible or exchangeable or
redeemable securities or obligation, or any warrants, rights or options;
- 4 -
(b) each of the Company and the Subsidiaries (all of which Subsidiaries are named in Schedule
II hereto, which schedule also identifies each of the Subsidiaries that is a “significant
subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X) has been duly incorporated or
organized and is validly existing as a corporation, limited partnership or limited liability
company, as applicable, in good standing under the laws of its respective jurisdiction of
incorporation or organization with full corporate or other power and authority to own its
respective properties and to conduct its respective businesses as described in the General
Disclosure Package and the Prospectus and, in the case of each of the Company and the Operating
Partnership, to execute and deliver this Agreement and to consummate the transactions contemplated
herein;
(c) each of the Company and the Subsidiaries is duly qualified or licensed and is in good
standing in each jurisdiction in which the nature or conduct of its business requires such
qualification or license and in which the failure, individually or in the aggregate, to be so
qualified or licensed could reasonably be expected to have a material adverse effect on the assets,
business, operations, earnings, properties or condition (financial or otherwise) of the Company and
the Subsidiaries taken as a whole (a “Material Adverse Effect”); except as disclosed in the
Prospectus and the General Disclosure Package, no Subsidiary is prohibited or restricted, directly
or indirectly, from paying dividends to the Company, or from making any other distribution with
respect to such Subsidiary’s capital stock or other equity interests or from repaying to the
Company or any other Subsidiary any amounts that may from time to time become due under any loans
or advances to such Subsidiary from the Company or such other Subsidiary, or from transferring any
such Subsidiary’s property or assets to the Company or to any other Subsidiary; other than as
disclosed in the Prospectus and the General Disclosure Package, the Company does not own, directly
or indirectly, any capital stock or other equity securities of any other corporation or any
ownership interest in any partnership, joint venture or other association;
(d) the Partnership Agreement has been duly and validly authorized, executed and delivered by
or on behalf of the partners of the Operating Partnership and constitutes a valid and binding
agreement of the parties thereto, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally or by general principles of equity;
(e) (i) Ashford OP Limited Partner, LLC (the “Limited Partner”) is a holder of Units
representing a majority limited partnership ownership interest in the Operating Partnership and
such units of preferred limited partnership interest in the Operating Partnership (the “Preferred
Units”) as described in the General Disclosure Package and the Prospectus, (ii) Ashford OP General
Partner, LLC (the “General Partner”) is the holder of the sole general partner interest in the
Operating Partnership, and (iii) the Company owns a 100% membership interest in the General Partner
and in the Limited Partner, in each case free and clear of any pledge, lien, encumbrance, security
interest or other claim, except for security interests in favor of lenders created pursuant to or
in connection with loan documents disclosed in the General Disclosure Package and the Prospectus;
(f) the Company and the Subsidiaries are in compliance with all applicable federal, state,
local or foreign laws, regulations, rules, decrees, judgments and orders, including those
- 5 -
relating to transactions with affiliates, except where any failures to be in compliance could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
(g) neither the Company nor any Subsidiary is in breach of or in default under (nor has any
event occurred which with notice, lapse of time, or both would constitute a breach of, or default
under) its respective organizational documents, or in the performance or observance of any
obligation, agreement, covenant or condition contained in any license, indenture, mortgage, deed of
trust, loan or credit agreement or other agreement or instrument to which the Company or any
Subsidiary is a party or by which any of them or their respective properties is bound, except for
such breaches or defaults that, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect;
(h) the execution, delivery and performance of this Agreement and consummation of the
transactions contemplated herein will not (i) conflict with, or result in any breach of, or
constitute a default under (nor constitute any event which with notice, lapse of time, or both
would constitute a breach of, or default under), (A) any provision of the organizational documents
of the Company or any Subsidiary, or (B) any provision of any license, indenture, mortgage, deed of
trust, loan or credit agreement or other agreement or instrument to which the Company or any
Subsidiary is a party or by which any of them or their respective assets or properties may be bound
or affected, or under any federal, state, local or foreign law, regulation or rule or any decree,
judgment or order applicable to the Company or any Subsidiary, except in the case of this clause
(B) for such breaches or defaults that, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect; or (ii) result in the creation or imposition of any
lien, charge, claim or encumbrance upon any property or asset of the Company or any Subsidiary;
(i) this Agreement has been duly authorized, executed and delivered by the Company and the
Operating Partnership and is a legal, valid and binding agreement of the Company and the Operating
Partnership enforceable in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, and
by general equitable principles, and except to the extent that the indemnification and contribution
provisions of Section 9 hereof may be limited by federal or state securities laws and public policy
considerations in respect thereof;
(j) no approval, authorization, consent or order of or filing with any federal, state, local
or foreign governmental or regulatory commission, board, body, authority or agency or any other
third party is required in connection with the Company’s or the Operating Partnership’s execution,
delivery and performance of this Agreement, their consummation of the transactions contemplated
herein or the Company’s sale and delivery of the Shares, other than (i) such as have been obtained,
or will have been obtained at the Closing Time or the relevant Date of Delivery, as the case may
be, under the Securities Act and the Securities Exchange Act of 1934 (the “Exchange Act”) and the
rules and regulations thereunder (the “Exchange Act Regulations”), (ii) such approvals as have been
obtained in connection with the approval of the listing of the Shares on the New York Stock
Exchange, (iii) any necessary qualification under the securities or blue sky laws of the various
state jurisdictions in which the Shares are being offered by the Underwriters, and (iv) such
approvals, authorizations, consents or orders or filings, the
- 6 -
absence of which could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect;
(k) each of the Company and the Subsidiaries has all necessary licenses, authorizations,
consents and approvals and has made all necessary filings required under any federal, state, local
or foreign law, regulation or rule, and has obtained all necessary authorizations, consents and
approvals from other persons, required in order to conduct their respective businesses as described
in the General Disclosure Package and the Prospectus, except to the extent that any failure to have
any such licenses, authorizations, consents or approvals, to make any such filings or to obtain any
such authorizations, consents or approvals could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect; neither the Company nor any of the Subsidiaries is
in violation of, in default under, or has received any notice regarding a possible violation,
default or revocation of any such license, authorization, consent or approval or any federal,
state, local or foreign law, regulation or rule or any decree, judgment or order applicable to the
Company or any of the Subsidiaries, the effect of which could reasonably be expected to result in a
Material Adverse Effect; and no such license, authorization, consent or approval contains a
materially burdensome restriction that is not adequately disclosed in the General Disclosure
Package and the Prospectus; neither the Company nor any of the Subsidiaries is required by any
applicable law to obtain accreditation or certification from any governmental agency or authority
in order to provide the products and services that it currently provides or that it proposes to
provide as set forth in the General Disclosure Package and the Prospectus except to the extent that
any failure to have such accreditation or certification could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect;
(l) the Company and the transactions contemplated by this Agreement meet the requirements for
the use of Form S-3 under the Securities Act; the Registration Statement has been declared
effective under the Securities Act; no stop order suspending the effectiveness of the Registration
Statement has been issued under the Securities Act and no proceedings for that purpose have been
instituted or are pending or, to the knowledge of the Company, are threatened by the Commission,
and, to the knowledge of the Company, the Company has complied to the Commission’s satisfaction
with any request on the part of the Commission for additional information;
(m) at the respective times the Registration Statement and any post-effective amendments
thereto became effective, at the deemed effective date with respect to the Underwriters pursuant to
Rule 430B(f)(2) of the Securities Act Regulations, at the date of this Agreement and at the Closing
Time and at the relevant Date of Delivery, as the case may be, the Registration Statement and any
amendments or supplements thereto complied and will comply, in all material respects with the
requirements of the Securities Act and the Securities Act Regulations and did not and will not
contain an 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; the Prospectus and any
further amendments or supplements thereto, at the time the Prospectus or such amendment or
supplement was issued, at the date hereof, at the time of filing pursuant to Rule 424(b) and at the
Closing Time and the relevant Date of Delivery, as the case may be, complied and will comply, in
all material respects with the requirements of the Securities Act and the Securities Act
Regulations and did not and will not contain an untrue
- 7 -
statement of a material fact or 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; and each preliminary prospectus and the prospectus filed as part of the
Registration Statement as originally filed or as part of any amendment or supplement thereto or
filed pursuant to Rule 424 of the Securities Act Regulations, complied when so filed in all
material respects with the Securities Act and the Securities Act Regulations; at the earliest time
after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities Act Regulations) of
the Shares and at the date hereof, the Company was not and is not an “ineligible issuer,” as
defined in Rule 405 of the Securities Act Regulations (“Rule 405”);
(n) as of the Applicable Time (as defined below), neither (x) the Issuer General Use Free
Writing Prospectus(es) (as defined below) issued at or prior to the Applicable Time, the Statutory
Prospectus (as defined below) and the information, provided in oral or written form, included on
Schedule III hereto, all considered together (collectively, the “General Disclosure Package”), nor
(y) any individual Issuer Limited Use Free Writing Prospectus, when considered together with the
General Disclosure Package, included an untrue statement of a material fact or omitted to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading;
as used in this subsection and elsewhere in this Agreement:
“Applicable Time” means 8:45 a.m. (Eastern time) on June 29, 2011, or such other time as
agreed by the Company and the Representatives;
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in
Rule 433 of the Securities Act Regulations (“Rule 433”), relating to the Shares that (i) is
required to be filed with the Commission by the Company, (ii) is a “road show that is a written
communication” within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with
the Commission or (iii) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a
description of the Shares or of the offering that does not reflect the final terms, in each case in
the form filed or required to be filed with the Commission or, if not required to be filed, in the
form retained in the Company’s records pursuant to Rule 433(g);
“Issuer General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is
intended for general distribution to prospective investors, as evidenced by its being specified in
Schedule IV hereto;
“Issuer Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is
not an Issuer General Use Free Writing Prospectus;
“Statutory Prospectus” means the prospectus relating to the Shares that is included in the
Registration Statement as of the Applicable Time, including any document incorporated by reference
therein and any preliminary or other prospectus deemed to be a part thereof;
each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through
the completion of the public offer and sale of the Shares or until any earlier date that the issuer
notified or notifies the Representatives as described in Section 4(g), did not, does not and
- 8 -
will not include any information that conflicted, conflicts or will conflict with the
information contained in the Registration Statement or the Prospectus, including any document
incorporated by reference therein and any preliminary or other prospectus deemed to be a part
thereof that has not been superseded or modified;
provided that the representations and warranties in Sections 3(m) and 3(n) hereof shall not
apply to statements in or omissions from the Registration Statement, the Prospectus or any Issuer
Free Writing Prospectus made in reliance upon and in conformity with written information furnished
to the Company by any Underwriter through the Representatives expressly for use therein;
(o) each document incorporated by reference in the General Disclosure Package or the
Prospectus (the “Incorporated Documents”), when it became effective or was filed with the
Commission, as the case may be, conformed in all material respects to the requirements of the
Securities Act and the Securities Act Regulations or the Exchange Act and the Exchange Act
Regulations, as applicable, and none of such documents contained or will contain an untrue
statement of a material fact or omitted or will omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and, when read together with the other information in
the Prospectus, (i) at the time the Registration Statement became effective, (ii) at the earlier of
the time the Prospectus was first used and the date and time of the first contract of sale of
Shares in this offering, and (iii) at the Closing Time, each such incorporated document did not or
will not, as the case may be, contain an 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; the Company has given the Representatives notice of any filings made pursuant to the
Exchange Act or Exchange Act filings within 48 hours prior to the Applicable Time;
(p) any preliminary prospectus and Issuer Free Writing Prospectus was and the Prospectus
delivered to the Underwriters for use in connection with this offering will be identical to the
respective version of any preliminary prospectus, Issuer Free Writing Prospectus or Prospectus
created to be transmitted to the Commission under the Securities Act for filing via the Electronic
Data Gathering Analysis and Retrieval System (“EDGAR”), except to the extent permitted by
Regulation S-T;
(q) there are no actions, suits, proceedings, inquiries or investigations pending or, to the
knowledge of the Company, threatened against the Company or any Subsidiary or any of their
respective officers and directors or to which the properties, assets or rights of any such entity
are subject, at law or in equity, before or by any federal, state, local or foreign governmental or
regulatory commission, board, body, authority, arbitral panel or agency, where in any such case (i)
there is a reasonable possibility that such action, suit or proceeding will be determined adversely
to the Company or such Subsidiary and (ii) if so determined adversely, could reasonably be expected
to result in a judgment, decree, award or order having a Material Adverse Effect;
(r) the financial statements, including the related supporting schedules and notes thereto,
included in (or incorporated by reference into) the General Disclosure Package or the Prospectus
present fairly the consolidated financial position of the entities to which such
- 9 -
financial statements relate (the “Covered Entities”) as of the dates indicated and the
consolidated results of operations and changes in financial position and cash flows of the Covered
Entities for the periods specified; such financial statements have been prepared in conformity with
generally accepted accounting principles as applied in the United States and on a consistent basis
during the periods involved and in accordance with Regulation S-X promulgated by the Commission;
the financial data in the General Disclosure Package and the Prospectus fairly present the
information shown therein and have been compiled on a basis consistent with the financial
statements included in the General Disclosure Package and the Prospectus; no other financial
statements or supporting schedules are required to be included in the General Disclosure Package or
the Prospectus; the unaudited pro forma financial information (including the related notes)
included in the General Disclosure Package and the Prospectus complies as to form in all material
respects with the applicable accounting requirements of the Securities Act and the Securities Act
Regulations, and management of the Company believes that the assumptions underlying the pro forma
adjustments are reasonable; such pro forma adjustments have been properly applied to the historical
amounts in the compilation of the information and such information fairly presents with respect to
the Company and the Subsidiaries, the financial position, results of operations and other
information purported to be shown therein at the respective dates and for the respective periods
specified; no other pro forma financial information is required to be included in the General
Disclosure Package or the Prospectus; all disclosures contained in the General Disclosure Package
or the Prospectus regarding “non-GAAP financial measures” (as such term is defined by the rules and
regulations of the Commission) comply with Regulation G of the Exchange Act and the Exchange Act
Regulations and Item 10 of Regulation S-K under the Securities Act, to the extent applicable;
(s) Ernst & Young LLP, whose reports on the consolidated financial statements of the Company
and the Subsidiaries are filed with the Commission as part of the General Disclosure Package and
the Prospectus or are incorporated by reference therein and any other accounting firm that has
certified Company financial statements (including financial statements of acquired properties or
businesses) and delivered its reports with respect thereto, are, and were during the periods
covered by their reports, registered independent public accountants as and to the extent required
by the Securities Act, the Securities Act Regulations, the Exchange Act, the Exchange Act
Regulations and the Public Company Accounting Oversight Board (United States);
(t) subsequent to the respective dates as of which information is given in the General
Disclosure Package and the Prospectus, and except as may be otherwise stated in the General
Disclosure Package and the Prospectus, there has not been (i) any change, or any development or
event that reasonably could be expected to result in a change, that has or reasonably could be
expected to have a Material Adverse Effect, whether or not arising in the ordinary course of
business, (ii) any transaction that is material to the Company and the Subsidiaries taken as a
whole entered into or agreed to be entered into by the Company or any of the Subsidiaries, (iii)
any obligation, contingent or otherwise, directly or indirectly incurred by the Company or any
Subsidiary that is material to the Company and Subsidiaries taken as a whole or (iv) except for
regular quarterly dividends on the Common Stock and Preferred Stock, and regular quarterly
distributions on the Units, the Preferred Units and the Class B Common Partnership Units in the
Operating Partnership (the “Class B Units”), any dividend or distribution of any kind declared,
paid or made by the Company on any class of its capital stock or by the Operating Partnership on
any of its partnership interests;
- 10 -
(u) the Shares conform in all material respects to the description thereof contained in the
General Disclosure Package and the Prospectus;
(v) there are no persons with registration or other similar rights to have any equity or debt
securities, including securities that are convertible into or exchangeable or redeemable for equity
securities, registered pursuant to the Registration Statement or otherwise registered by the
Company or the Operating Partnership under the Securities Act except for those registration or
similar rights that have been waived or that are inapplicable with respect to the offering
contemplated by this Agreement;
(w) the Shares have been duly authorized and, when issued and duly delivered against payment
therefor as contemplated by this Agreement, will be validly issued, fully paid and non-assessable,
free and clear of any pledge, lien, encumbrance, security interest or other claim, and the issuance
and sale of the Shares by the Company is not subject to preemptive or other similar rights arising
by operation of law, under the organizational documents of the Company or under any agreement to
which the Company or any Subsidiary is a party or otherwise;
(x) at or before the Closing Time, the Shares will have been registered under Section 12(b) of
the Exchange Act and approved for listing on the New York Stock Exchange, subject to official
notice of issuance;
(y) the Company has not taken, and will not take, directly or indirectly, any action that is
designed to or that has constituted or that might reasonably be expected to cause or result in
stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of the Shares;
(z) neither the Company nor any of its affiliates (i) is required to register as a “broker” or
“dealer” in accordance with the provisions of the Exchange Act or the Exchange Act Regulations, or
(ii) directly, or indirectly through one or more intermediaries, controls or has any other
association with (within the meaning of Article I of the By-laws of the Financial Industry
Regulatory Authority (“FINRA”)) any member firm of FINRA;
(aa) the Company has not relied upon the Representatives or legal counsel for the
Representatives for any legal, tax or accounting advice in connection with the offering and sale of
the Shares;
(bb) any certificate signed by any officer of the Company or any Subsidiary delivered to the
Representatives or to counsel for the Underwriters pursuant to or in connection with this Agreement
shall be deemed a representation and warranty by the Company to each Underwriter as to the matters
covered thereby;
(cc) except as described in the General Disclosure Package and the Prospectus, neither the
Company nor any Subsidiary has sold or issued any securities during the six-month period preceding
the date of the Prospectus, including any sales pursuant to Rule 144A under, or Regulations D or S
of, the Securities Act, other than shares issued pursuant to employee benefit plans, qualified
stock options plans or other employee compensation plans or pursuant to outstanding options, rights
or warrants, that would not be required to be integrated with the sale of the Shares;
- 11 -
(dd) the form of certificate used to evidence the Common Stock complies in all material
respects with all applicable statutory requirements, with any applicable requirements of the
organizational documents of the Company and the requirements of the New York Stock Exchange;
(ee) all of the mezzanine loans of which the Company is the owner, directly or indirectly (the
“Mezzanine Loans”), and all of the participation interests in loans of which the Company is the
owner, directly or indirectly (the “Participation Interests,” and such loans, together with the
Mezzanine Loans, collectively are referred to hereinafter as the “Loans”), are set forth or
described in the General Disclosure Package and the Prospectus; the Company is the sole owner and
holder of the Loans, and has not sold, assigned, hypothecated or otherwise encumbered such Loans,
except as set forth in the General Disclosure Package and the Prospectus; to the Company’s
knowledge, there is no offset, defense, counterclaim or right to rescission with respect to any of
the notes or any of the other loan documents; neither the Company nor, to the knowledge of the
Company, any other party has given or received a written notice of default under any Loans and, to
the Company’s knowledge, no event exists which, with the giving of notice or the passing of time,
or both, would constitute an event of default thereunder; the Company has not subordinated its
interest in the loans to which the Participation Interests relate to any other party except as set
forth in the General Disclosure Package and the Prospectus;
(ff) the Company and the Subsidiaries have good and indefeasible title in fee simple to, or a
valid leasehold interest in, all real property described in the General Disclosure Package and the
Prospectus, and good title to all personal property owned by them, in each case free and clear of
all liens, security interests, pledges, charges, encumbrances, encroachments, restrictions,
mortgages and defects, except such as are disclosed in the General Disclosure Package and the
Prospectus or such as do not materially and adversely affect the value of such property and do not
interfere with the use made or proposed to be made of such property by the Company and the
Subsidiaries; any real property, improvements, equipment and personal property held under lease by
the Company or any Subsidiary are held under valid, existing and enforceable leases, with such
exceptions as are disclosed in the General Disclosure Package and the Prospectus or are not
material and do not interfere with the use made or proposed to be made of such real property,
improvements, equipment and personal property by the Company or such Subsidiary; the Company or a
Subsidiary has obtained an owner’s or leasehold title insurance policy, from a title insurance
company licensed to issue such policy, on any real property owned in fee or leased, as the case may
be, by the Company or any Subsidiary, that insures the Company’s or the Subsidiary’s fee or
leasehold interest, as the case may be, in such real property, which policies include only
commercially reasonable exceptions, and with coverages in amounts at least equal to amounts that
are generally deemed in the Company’s industry to be commercially reasonable in the markets where
the Company’s properties are located, or a lender’s title insurance policy insuring the lien of its
mortgage securing the real property with coverage equal to the maximum aggregate principal amount
of any indebtedness held by the Company or a Subsidiary and secured by the real property;
(gg) all real property owned or leased by the Company or a Subsidiary is free of material
structural defects and all building systems contained therein are in good working order in all
material respects, subject to ordinary wear and tear or, in each instance, the Company has
- 12 -
created an adequate reserve to effect reasonably required repairs, maintenance and capital
expenditures; to the knowledge of the Company and the Operating Partnership, water, storm water,
sanitary sewer, electricity and telephone service are all available at the property lines of such
property over duly dedicated streets or perpetual easements of record benefiting such property;
except as described in the General Disclosure Package and the Prospectus, to the knowledge of the
Company and the Operating Partnership, there is no pending or threatened special assessment, tax
reduction proceeding or other action that, individually or in the aggregate, could reasonably be
expected to increase or decrease the real property taxes or assessments of any of such property,
that, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect;
(hh) the mortgages and deeds of trust encumbering any real property owned in fee or leased by
the Company or a Subsidiary (i) are not convertible (in the absence of foreclosure) into an equity
interest in the Real Property or in the Company, the Operating Partnership or any Subsidiary, and
none of the Company, the Operating Partnership or the Subsidiaries hold a participating interest
therein, (ii) except as set forth in the General Disclosure Package and the Prospectus, are not and
will not be cross-defaulted to any indebtedness other than indebtedness of the Company or any of
the Subsidiaries, and (iii) are not and will not be cross-collateralized to any property not owned
by the Company, the Operating Partnership or any of the Subsidiaries;
(ii) the descriptions in the General Disclosure Package and the Prospectus of the legal or
governmental proceedings, contracts, leases and other legal documents therein described present
fairly the information required to be shown, and there are no legal or governmental proceedings,
contracts, leases, or other documents of a character required to be described in the General
Disclosure Package or the Prospectus or to be filed as exhibits to the Registration Statement that
are not described or filed as required; all agreements between the Company or any of the
Subsidiaries and third parties expressly referenced in the General Disclosure Package and the
Prospectus are legal, valid and binding obligations of the Company or one or more of the
Subsidiaries, enforceable in accordance with their respective terms, except to the extent
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally and by general equitable principles and, to the knowledge of
the Company and the Operating Partnership, no party is in breach or default under any such
agreements;
(jj) the Company and each Subsidiary owns or possesses adequate licenses or other rights to
use all patents, trademarks, service marks, trade names, copyrights, software and design licenses,
trade secrets, manufacturing processes, other intangible property rights and know-how
(collectively, “Intangibles”) necessary to entitle the Company and each Subsidiary to conduct its
business as described in the General Disclosure Package and the Prospectus, and neither the Company
nor any Subsidiary has received notice of infringement of or conflict with (and the Company knows
of no such infringement of or conflict with) asserted rights of others with respect to any
Intangibles that, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect;
(kk) the Company, the Operating Partnership and the Subsidiaries have established and maintain
disclosure controls and procedures (as such term is defined in Rule 13a-15 and 15d-15 under the
Exchange Act); such disclosure controls and procedures are designed to ensure that
- 13 -
material information relating to the Company and its Subsidiaries is made known to the
Company’s Chief Executive Officer and its Chief Financial Officer by others within those entities,
and such disclosure controls and procedures are effective to perform the functions for which they
were established; the Company, the Operating Partnership and the Subsidiaries have established and
maintain internal control over financial reporting (as such term is defined in Rule 13a-15 and
15d-15 under the Exchange Act); such internal control over financial reporting is designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting
principles, including providing reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that could have a material
effect on the financial statements; the Company’s auditors and the Audit Committee of the Board of
Directors of the Company have been advised of: (i) any significant deficiencies and material
weaknesses in the design or operation of internal controls which could adversely affect the
Company’s ability to record, process, summarize, and report financial data; and (ii) any fraud,
whether or not material, that involves management or other employees who have a role in the
Company’s internal controls; since the date of the most recent evaluation of such disclosure
controls and procedures, there have been (i) no material weakness in the Company’s internal control
over financial reporting (whether or not remediated) and (ii) no significant changes in internal
controls or in other factors that could significantly affect internal controls, including any
corrective actions with regard to significant deficiencies;
(ll) there is and has been no failure on the part of the Company or any of the Company’s
directors or officers, in their capacities as such, to comply in all material respects with any
provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection
therewith, including Section 402 related to loans and Sections 302 and 906 related to
certifications;
(mm) the Registration Statement is not the subject of a pending proceeding or examination
under Section 8(d) or 8(e) of the Securities Act, and the Company is not the subject of a pending
proceeding under Section 8A of the Securities Act in connection with the offering of the Shares;
(nn) each of the Company, the Operating Partnership and the Subsidiaries has filed on a timely
basis (including in accordance with any applicable extensions) all necessary federal, state, local
and foreign income and franchise tax returns required to be filed through the date hereof or have
properly requested extensions thereof, and have paid all taxes shown as due thereon, and if due and
payable, any related or similar assessment, fine or penalty levied against the Company, the
Operating Partnership or any of the Subsidiaries; except as disclosed in the General Disclosure
Package and the Prospectus, no tax deficiency has been asserted against any such entity, and the
Company and the Subsidiaries do not know of any tax deficiency that is likely to be asserted
against any such entity that, individually or in the aggregate, if determined adversely to any such
entity, could reasonably be expected to have a Material Adverse Effect; all tax liabilities are
adequately provided for on the respective books of the Company and the Subsidiaries;
(oo) each of the Company and the Subsidiaries maintains insurance (issued by insurers of
recognized financial responsibility) of the types and in the amounts generally deemed
- 14 -
adequate for their respective businesses and consistent with insurance coverage maintained by
similar companies in similar businesses, including, but not limited to, insurance covering real and
personal property owned or leased by the Company and the Subsidiaries against theft, damage,
destruction, environmental liabilities, acts of vandalism, terrorism, earthquakes, flood and all
other risks customarily insured against, all of which insurance is in full force and effect;
(pp) neither the Company nor any of the Subsidiaries is in violation, or has received notice
of any violation with respect to, any applicable environmental, safety or similar law, regulation
or rule applicable to the business of the Company or any of the Subsidiaries; the Company and the
Subsidiaries have received all permits, licenses or other approvals required of them under
applicable federal and state occupational safety and health and environmental laws, regulations and
rules to conduct their respective businesses, and the Company and the Subsidiaries are in
compliance with all terms and conditions of any such permit, license or approval, except any such
violation of law, regulation or rule, failure to receive required permits, licenses or other
approvals or failure to comply with the terms and conditions of such permits, licenses or approvals
that individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect;
(qq) neither the Company nor any Subsidiary is in violation of or has received notice of any
violation with respect to any federal or state law, regulation or rule relating to discrimination
in the hiring, termination, promotion, employment or pay of employees, nor any applicable federal
or state wages and hours law, nor any state law, regulation or rule precluding the denial of credit
due to the neighborhood in which a property is situated, the violation of any of which,
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect;
(rr) the Company and each of the Subsidiaries are in compliance in all material respects with
all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder (“ERISA”); no
“reportable event” (as defined in ERISA) has occurred with respect to any “pension plan” (as
defined in ERISA) for which the Company or any of the Subsidiaries would have any material
liability; the Company and each of the Subsidiaries have not incurred and do not expect to incur
material liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from,
any “pension plan” or (ii) Section 412 or 4971 of the Internal Revenue Code of 1986, as amended,
including the regulations and published interpretations thereunder (the “Code”); and each “pension
plan” for which the Company or any of its Subsidiaries would have any material liability that is
intended to be qualified under Section 401(a) of the Code is so qualified in all material respects
and nothing has occurred, whether by action or by failure to act, that would cause the loss of such
qualification;
(ss) neither the Company nor any of the Subsidiaries nor, to the Company’s knowledge, any
officer or director purporting to act on behalf of the Company or any of the Subsidiaries has at
any time (i) made any payment outside the ordinary course of business to any investment officer or
loan broker or person charged with similar duties of any entity to which the Company or any of the
Subsidiaries sells or from which the Company or any of the Subsidiaries buys loans or servicing
arrangements for the purpose of influencing such agent, officer, broker or person to buy loans or
servicing arrangements from or sell loans to the Company or any of the
- 15 -
Subsidiaries, or (ii) engaged in any transactions, maintained any bank account or used any
corporate funds except for transactions, bank accounts and funds which have been and are reflected
in the normally maintained books and records of the Company and the Subsidiaries;
(tt) there are no outstanding loans or advances or guarantees of indebtedness by the Company
or any of the Subsidiaries to or for the benefit of any of the officers or directors of the Company
or any of the Subsidiaries or any of the members of the families of any of them;
(uu) neither the Company nor any of the Subsidiaries nor, to the knowledge of the Company or
the Operating Partnership, any employee or agent of the Company or any of the Subsidiaries, has
made any payment of funds of the Company or of 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 General
Disclosure Package or the Prospectus;
(vv) all securities issued by the Company, any of the Subsidiaries or any trusts established
by the Company or any Subsidiary, have been issued and sold in compliance with (i) all applicable
federal and state securities laws and the laws of the applicable jurisdiction of incorporation of
the issuing entity, except as, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect, and (ii) to the extent applicable to the issuing entity, the
requirements of the New York Stock Exchange;
(ww) except as otherwise disclosed in the General Disclosure Package and the Prospectus, (i)
none of the Operating Partnership, the Company, any of the Subsidiaries nor, to the knowledge of
the Operating Partnership and the Company, any other owners of the property at any time or any
other party has at any time, handled, stored, treated, transported, manufactured, spilled, leaked,
or discharged, dumped, transferred or otherwise disposed of or dealt with, Hazardous Materials (as
hereinafter defined) on, in, under, to or from any real property leased, owned or controlled,
including any real property underlying any loan held or to be held by the Company or the
Subsidiaries (collectively, the “Real Property”), other than by any such action taken in compliance
with all applicable Environmental Statutes (hereinafter defined) or by the Operating Partnership,
the Company, any of the Subsidiaries or any other party in connection with the ordinary use of
residential, retail or commercial properties owned by the Operating Partnership; (ii) the Operating
Partnership and the Company do not intend to use the Real Property or any subsequently acquired
properties for the purpose of using, handling, storing, treating, transporting, manufacturing,
spilling, leaking, discharging, dumping, transferring or otherwise disposing of or dealing with
Hazardous Materials other than by any such action taken in compliance with all applicable
Environmental Statues or by the Operating Partnership, the Company, any of the Subsidiaries or any
other party in connection with the ordinary use of residential, retail or commercial properties
owned by the Operating Partnership; (iii) none of the Operating Partnership, the Company, nor any
of the Subsidiaries knows of any seepage, leak, discharge, release, emission, spill, or dumping of
Hazardous Materials into waters on or adjacent to the Real Property or any other real property
owned or occupied by any such party, or onto lands from which Hazardous Materials might seep, flow
or drain into such waters; (iv) none of the Operating Partnership, the Company, nor any of the
Subsidiaries has received any notice of, or has any knowledge of any occurrence or circumstance
that, with notice or passage of time or both, would give rise to a claim under or pursuant to any
federal, state or local environmental statute, regulation or rule or under common law, pertaining
to Hazardous Materials on or
- 16 -
originating from any of the Real Property or any assets described in the Prospectus or any
other real property owned or occupied by any such party or arising out of the conduct of any such
party, including without limitation a claim under or pursuant to any Environmental Statute; (v) the
Real Property is not included or, to the Company’s and the Operating Partnership’s knowledge,
proposed for inclusion on the National Priorities List issued pursuant to the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Sections
9601-9675 (the “CERCLA”) by the United States Environmental Protection Agency or, to the Operating
Partnership’s and the Company’s knowledge, proposed for inclusion on any similar list or inventory
issued pursuant to any other Environmental Statute or issued by any other Governmental Authority
(as hereinafter defined); (vi) in the operation of the Company’s and the Operating Partnership’s
businesses, the Company acquires, before acquisition of any real property, an environmental
assessment of the real property and, to the extent they become aware of any condition that could
reasonably be expected to result in liability associated with the presence or release of a
Hazardous Material, or any violation or potential violation of any Environmental Statute, the
Company and the Operating Partnership take all commercially reasonable action necessary or
advisable (including any capital improvements) for clean up, closure or other compliance with such
Environmental Statute;
as used herein, “Hazardous Material” includes, without limitation any flammable explosives,
radioactive materials, hazardous materials, hazardous wastes, toxic substances, or related
materials, asbestos or any hazardous material as defined by any federal, state or local
environmental law, regulation or rule including, without limitation, the CERCLA, the Hazardous
Materials Transportation Act, as amended, 49 U.S.C. Sections 1801-1819, the Resource Conservation
and Recovery Act, as amended, 42 U.S.C. Sections 6901-6992K, the Emergency Planning and Community
Right-to-Know Act of 1986, 42 U.S.C. Sections 11001-11050, the Toxic Substances Control Act, 15
U.S.C. Sections 2601-2671, the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C.
Sections 136-136y, the Clean Air Act, 42 U.S.C. Sections 7401-7642, the Clean Water Act (Federal
Water Pollution Control Act), 33 U.S.C. Sections 1251-1387, the Safe Drinking Water Act, 42 U.S.C.
Sections 300f-300j-26, and the Occupational Safety and Health Act, 29 U.S.C. Sections 651-678, as
any of the above statutes may be amended from time to time, and in the regulations promulgated
pursuant to each of the foregoing (individually, an “Environmental Statute” and collectively the
“Environmental Statutes”) or by any federal, state or local governmental authority having or
claiming jurisdiction over the properties and assets described in the General Disclosure Package or
the Prospectus (a “Governmental Authority”);
(xx) there are no costs or liabilities associated with the Real Property pursuant to any
Environmental Statute (including, without limitation, any capital or operating expenditures
required for clean-up, closure of properties or compliance with any Environmental Statute or any
permit, license or approval, any related constraints on operating activities and any potential
liabilities to third parties) that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect;
(yy) none of the entities that prepared Phase I or other environmental assessments with
respect to the Real Property was employed for such purpose on a contingent basis or has any
substantial interest in the Company or any of the Subsidiaries, and none of their directors,
- 17 -
officers or employees is connected with the Company or any of the Subsidiaries as a promoter,
selling agent, trustee, officer, director or employee;
(zz) (i) none of the Operating Partnership, the Company nor any Subsidiary knows of any
violation of any municipal, state or federal law, rule or regulation (including those pertaining to
environmental matters) concerning the Real Property or any part thereof that, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect; (ii) the Real
Property complies with all applicable zoning laws, ordinances, regulations and deed restrictions or
other covenants in all material respects and, if and to the extent there is a failure to comply,
such failure does not materially impair the value of any of the Real Property and will not result
in a forfeiture or reversion of title; (iii) none of the Operating Partnership, the Company nor any
Subsidiary has received from any governmental authority any written notice of any condemnation of
or zoning change affecting the Real Property or any part thereof, and none of the Operating
Partnership, the Company nor any Subsidiary knows of any such condemnation or zoning change which
is threatened and which, individually or in the aggregate, if consummated could reasonably be
expected to have a Material Adverse Effect; (iv) all liens, charges, encumbrances, claims, or
restrictions on or affecting the properties and assets (including the Real Property) of the
Operating Partnership or any of the Subsidiaries that are required to be described in the
Prospectus are disclosed therein; (v) no lessee of any portion of any of the Real Property is in
default under any of the leases governing such properties and there is no event which, but for the
passage of time or the giving of notice or both would constitute a default under any of such
leases, except such defaults that individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect; and (vi) no tenant under any lease pursuant to which
the Operating Partnership or any of the Subsidiaries leases any Real Property has an option or
right of first refusal to purchase the premises leased thereunder or the building of which such
premises are a part, except as such options or rights of first refusal that, individually or in the
aggregate, if exercised, could not reasonably be expected to have a Material Adverse Effect;
(aaa) in connection with this offering, the Company has not offered and will not offer its
Common Stock or any other securities convertible into or exchangeable or exercisable or redeemable
for Common Stock in a manner in violation of the Securities Act; the Company has not distributed
and will not distribute any prospectus or other offering material in connection with the offering
of the Shares other than the Registration Statement, the preliminary prospectus supplement dated
June 28, 2011, and filed with the Commission on June 29, 2011, pursuant to Rule 424(b), the
Prospectus and any Permitted Free Writing Prospectus (as defined below);
(bbb) the Company has not incurred any liability for any finder’s fees or similar payments in
connection with the transactions herein contemplated;
(ccc) there is no relationship, direct or indirect, between or among the Company or any of the
Subsidiaries on the one hand, and the directors, officers, stockholders, customers or suppliers of
the Company or any of the Subsidiaries on the other hand, that is required by the Securities Act
and the Securities Act Regulations to be described in the General Disclosure Package or the
Prospectus and that is not so described;
(ddd) neither the Company nor any of the Subsidiaries is and, after giving effect to the
offering and sale of the Shares, will be an “investment company” or an entity “controlled” by an
- 18 -
“investment company”, as such terms are defined in the Investment Company Act of 1940, as
amended (the “Investment Company Act”);
(eee) there are no existing or, to the knowledge of the Company or the Operating Partnership,
threatened labor disputes with the employees of the Company or any of the Subsidiaries that could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(fff) commencing with the taxable year ending December 31, 2003, the Company has been
organized and operated in conformity with the requirements for qualification as a real estate
investment trust (a “REIT”) under the Code, and the current and proposed method of operation of the
Company and the Subsidiaries described in the General Disclosure Package and the Prospectus will
enable the Company to meet the requirements for qualification and taxation as a REIT under the
Code, and the Operating Partnership is treated as a partnership for federal income tax purposes and
not as a corporation or association taxable as a corporation; the Company intends to continue to
qualify as a REIT for all subsequent years, and the Company does not know of any event that could
reasonably be expected to cause the Company to fail to qualify as a REIT at any time; and
(ggg) the conduct of business by the Company and the Subsidiaries as presently and proposed to
be conducted is not subject to continuing oversight, supervision, regulation or examination by any
governmental official or body of the United States or any other jurisdiction wherein the Company or
the Subsidiaries conduct or propose to conduct such business, except as described in the General
Disclosure Package and the Prospectus and except such regulation as is applicable to commercial
enterprises generally.
4. Certain Covenants. The Company and the Operating Partnership hereby, jointly and
severally, agree with each Underwriter:
(a) to furnish such information as may be required and otherwise to cooperate in qualifying
the Shares for offering and sale under the securities or blue sky laws of such jurisdictions (both
domestic and foreign) as the Representatives may designate and to maintain such qualifications in
effect as long as requested by the Representatives for the distribution of the Shares; provided,
that, neither the Company nor the Operating Partnership shall be required to qualify as a foreign
corporation or to take any action that would subject it to general service of process in any such
jurisdiction where it is not presently qualified or where it would be subject to taxation as a
foreign corporation or partnership;
(b) if, at the time this Agreement is executed and delivered, it is necessary for a
post-effective amendment to the Registration Statement to be declared effective before the offering
of the Shares may commence, to cause such post-effective amendment to become effective as soon as
possible and to advise the Representatives promptly and, if requested by the Representatives, to
confirm such advice in writing, when such post-effective amendment has become effective; references
herein to the Registration Statement shall include such post-effective amendment;
(c) to prepare a Prospectus in a form reasonably approved by the Underwriters and file such
Prospectus with the Commission in the manner and within the time period required by
- 19 -
Rule 424(b) under the Securities Act (without reliance on Rule 424(b)(8)) and to furnish
promptly to the Underwriters copies of the Prospectus (or of the Prospectus as amended or
supplemented if the Company shall have made any amendments or supplements thereto after the
effective date of the Registration Statement) in such quantities and at such locations as the
Underwriters may reasonably request for the purposes contemplated by the Securities Act
Regulations, which Prospectus and any amendments or supplements thereto furnished to the
Underwriters will be identical to the version created to be transmitted to the Commission for
filing via EDGAR, except to the extent permitted by Regulation S-T;
(d) subject to its other covenants in this Section 4, to comply with Rule 430B until the
distribution of the Shares by the Underwriters is complete; to advise the Representatives promptly
and, if requested by the Representatives, to confirm such advice in writing, when any
post-effective amendment to the Registration Statement or new registration statement relating to
the Shares becomes effective under the Securities Act or any supplement to the Prospectus or any
amended Prospectus is filed;
(e) to advise the Representatives immediately, and, if requested by the Representatives,
confirming such advice in writing, of (i) the receipt of any comments from, or any request by, the
Commission for amendments or supplements to the Registration Statement or Prospectus or for
additional information with respect thereto, or (ii) the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement or of any order preventing or
suspending the use of any preliminary prospectus or the Prospectus, or of the suspension of the
qualification of the Shares for offering or sale in any jurisdiction, or of the initiation or
threatening of any proceedings for any of such purposes or of any examination pursuant to Section
8(e) of the Securities Act concerning the Registration Statement, or if the Company becomes the
subject of a proceeding under Section 8A of the Securities Act in connection with the offering of
the Shares, and, if the Commission or any other government agency or authority should issue any
such order, to make every reasonable effort to obtain the lifting or removal of such order as soon
as possible; and to advise the Representatives promptly of any proposal to amend or supplement the
Registration Statement or Prospectus and to file no such amendment or supplement to which the
Representatives shall reasonably object in writing;
(f) to furnish to the Underwriters for a period of five years from the date of this Agreement
(i) as soon as available, copies of all annual, quarterly and current reports or other
communications supplied to holders of shares of Common Stock not otherwise publicly available, (ii)
as soon as practicable after the filing thereof, copies of all reports filed by the Company with
the Commission, FINRA or any securities exchange not otherwise publicly available and (iii) such
other information not otherwise publicly available as the Underwriters may reasonably request
regarding the Company, the Operating Partnership and the Subsidiaries;
(g) to advise the Underwriters promptly of the happening of any event known to the Company or
the Operating Partnership within the time during which a Prospectus relating to the Shares is
required to be delivered under the Securities Act or the Securities Act Regulations that, in the
judgment of the Company or in the reasonable opinion of the Representatives or counsel for the
Underwriters, would require the making of any change in the Prospectus then being used so that the
Prospectus would not include an 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, in the light
- 20 -
of the circumstances under which they were made, not misleading, or if it is necessary at any
time to amend or supplement the Prospectus to comply with the Securities Act and the Securities Act
Regulations and, during such time, to promptly prepare and furnish to the Underwriters copies of
the proposed amendment or supplement before filing any such amendment or supplement with the
Commission and thereafter promptly furnish at the Company’s own expense to the Underwriters and to
dealers, copies in such quantities and at such locations as the Representatives may from time to
time reasonably request of an appropriate amendment to the Registration Statement or supplement to
the Prospectus so that the Prospectus as so amended or supplemented will not, in the light of the
circumstances when it is so delivered, be misleading, or so that the Prospectus will comply with
the Securities Act and the Securities Act Regulations; if at any time following issuance of an
Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of
which such Issuer Free Writing Prospectus conflicted or would conflict with the information
contained in the Registration Statement (or any other registration statement relating to the
Shares) or the Statutory Prospectus or any preliminary prospectus or included or would include an
untrue statement of a material fact or omitted or would omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances prevailing at that
subsequent time, not misleading, to promptly notify the Representatives and promptly amend or
supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such
conflict, untrue statement or omission;
(h) to file promptly with the Commission any amendment to the Registration Statement or the
Prospectus or any supplement to the Prospectus that may, in the judgment of the Company or the
Representatives, be required by the Securities Act or requested by the Commission;
(i) prior to filing with the Commission any amendment to the Registration Statement or
supplement to the Prospectus or any Prospectus pursuant to Rule 424 under the Securities Act, to
furnish for review a copy thereof to the Representatives and counsel for the Underwriters and not
to file any such proposed amendment or supplement to which the Representatives reasonably objects;
to give the Representatives notice of its intention to make any filing pursuant to the Exchange Act
or the Exchange Act Regulations from the Applicable Time to the Closing Time and to furnish the
Representatives and counsel for the Underwriters with copies of any such documents a reasonable
amount of time prior to such proposed filing and not to file or use any such document to which the
Representatives or counsel for the Underwriters shall reasonably object;
(j) to furnish promptly to the Representatives a signed copy of the Registration Statement, as
initially filed with the Commission, and of all amendments or supplements thereto (including all
exhibits filed therewith or incorporated by reference therein) and such number of conformed copies
of the foregoing as the Representatives may reasonably request;
(k) to furnish to the Representatives, not less than one business day before filing with the
Commission subsequent to the effective date of the Prospectus and during the period in which a
Prospectus relating to the Shares is required to be delivered under the Securities Act or the
Securities Act Regulations, a copy of any document proposed to be filed with the Commission
pursuant to Section 13, 14, or 15(d) of the Exchange Act and during such period to
- 21 -
file all such documents in the manner and within the time periods required by the Exchange Act
and the Exchange Act Regulations;
(l) to apply the net proceeds of the sale of the Shares in accordance with its statements
under the caption “Use of Proceeds” in the Prospectus;
(m) to make generally available to its security holders and to deliver to the Representatives
as soon as practicable, but in any event not later than 45 days after the end of the fiscal quarter
first occurring after the first anniversary of the effective date of the Registration Statement (or
later than 90 days, if such fiscal quarter is the last fiscal quarter of the Company’s fiscal year)
an earnings statement satisfying the provisions of Section 11(a) of the Securities Act (in such
form, at the option of the Company, as complies with Rule 158 under the Securities Act Regulations)
covering a period of 12 months beginning after the effective date of the Registration Statement;
(n) to use its best efforts to maintain the listing of the Shares on the New York Stock
Exchange and to file with the New York Stock Exchange all documents and notices required by the New
York Stock Exchange of companies that have securities that are traded on the New York Stock
Exchange;
(o) to engage and maintain, at its expense, a registrar and transfer agent for the Shares;
(p) to refrain during a period of 45 days from the date of the Prospectus, without the prior
written consent of the Representatives, from, directly or indirectly, (i) offering, pledging,
selling, contracting to sell, selling any option or contract to purchase, purchasing any option or
contract to sell, granting any option, right or warrant for the purchase or sale of, or otherwise
disposing of or transferring (or entering into any transaction or device which is designed to, or
could be expected to, result in the disposition by any person at any time in the future of), any
share of Common Stock or any securities convertible into or exercisable or exchangeable for Common
Stock, including Units, Class B Units and Preferred Units, or filing any registration statement
under the Securities Act with respect to any of the foregoing, or (ii) entering into any swap or
any other agreement or any transaction that transfers, in whole or in part, directly or indirectly,
the economic consequence of ownership of Common Stock or such securities, whether any such swap or
transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or
other securities, in cash or otherwise; provided, however, that the foregoing sentence shall not
apply to (A) the issuance of Common Stock into which currently outstanding Units or Class B Units
may be converted following presentation for redemption by the existing Unit holders or Class B Unit
holders; or (B) the grant of Common Stock or options to acquire Common Stock granted under the
Company’s current stock incentive plan; provided, that, notwithstanding the foregoing, if (x)
during the last 17 days of the 45-day restricted period, the Company issues an earnings release or
material news or a material event relating to the Company occurs; or (y) prior to the expiration of
the 45-day restricted period, the Company announces that it will release earnings results during
the 16-day period beginning on the last day of such 45-day period; then in each case the
restrictions imposed in this subsection shall continue to apply until the expiration of the 18-day
period beginning on the date of the issuance of the earnings release or the occurrence of the
material news or material event;
- 22 -
(q) not to, and to use its best efforts to cause its officers, directors and affiliates
not to, (i) take, directly or indirectly, prior to termination of the underwriting syndicate
contemplated by this Agreement, any action designed to stabilize or manipulate the price of any
security of the Company, or which may cause or result in, or which might in the future reasonably
be expected to cause or result in, the stabilization or manipulation of the price of any security
of the Company, to facilitate the sale or resale of any of the Shares, (ii) sell, bid for, purchase
or pay anyone any compensation for soliciting purchases of the Shares or (iii) pay or agree to pay
to any person any compensation for soliciting any order to purchase any other securities of the
Company;
(r) to comply with all of the provisions of any undertakings in the Registration Statement;
(s) to use its best efforts to meet the requirements to qualify as a REIT under the Code for
each of its taxable years until such time as the board of directors of the Company determines that
it is no longer in the best interests of the Company to qualify as a REIT; and
(t) not to invest, or otherwise use the proceeds received by the Company from its sale of the
Shares in such a manner as would require the Company or any of its Subsidiaries to register as an
investment company under the Investment Company Act.
Each of the Company and the Operating Partnership, jointly and severally, represents, warrants
and agrees that, unless it obtains the prior written consent of the Representatives, and each
Underwriter severally represents, warrants and agrees that, unless it obtains the prior consent of
the Company and the Representatives, it has not made and will not make any offer relating to the
Shares that would constitute an “issuer free writing prospectus,” as defined in Rule 433, or that
would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be
filed with the Commission or retained by the Company under Rule 433; provided, however, that the
prior written consent of the Company and the Representatives shall be deemed to have been given in
respect of any Issuer Free Writing Prospectus attached as Schedule IV and that the prior written
consent of the Company shall be deemed to have been given in respect of any free writing prospectus
that constitutes a “bona fide electronic road show” within the meaning of Rule 433(h)(5) of the
Securities Act Regulations relating to the offering of the Shares. Any such free writing
prospectus consented to or deemed to be consented to by the Company or by the Company and the
Representatives, as applicable, is herein referred to as a “Permitted Free Writing Prospectus.”
The Company agrees that (a) it has treated and will treat, as the case may be, each Permitted Free
Writing Prospectus as an Issuer Free Writing Prospectus, and (b) has complied and will comply, as
the case may be, with the requirements of Rules 164 and 433 of the Securities Act Regulations
applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the
Commission, legending and record keeping.
5. Payment of Expenses. (a) The Company agrees to pay all costs and expenses incident to the
performance of its obligations under this Agreement, whether or not the transactions contemplated
hereunder are consummated or this Agreement is terminated, including expenses, fees and taxes in
connection with: (i) the preparation and filing of the Registration Statement, each preliminary
prospectus, any Permitted Free Writing Prospectus, the Prospectus, and any amendments or
supplements thereto, and the printing and furnishing of
- 23 -
copies of each thereof to the Underwriters and to dealers (including costs of mailing and
shipment); (ii) the preparation, issuance and delivery of the certificates for the Shares to the
Underwriters, including any stock or other transfer taxes or duties payable upon the sale of the
Shares to the Underwriters; (iii) the printing of this Agreement and any dealer agreements and
furnishing of copies of each to the Underwriters and to dealers (including costs of mailing and
shipment); (iv) the qualification of the Shares for offering and sale under state laws that the
Company and the Representatives have mutually agreed are appropriate and the determination of their
eligibility for investment under state law as aforesaid, and the printing and furnishing of copies
of any blue sky surveys or legal investment surveys to the Underwriters and to dealers; (v) filing
for review of the public offering of the Shares by FINRA; (vi) the fees and expenses of any
transfer agent or registrar for the Shares and miscellaneous expenses referred to in the
Registration Statement; (vii) the fees and expenses incurred in connection with the inclusion of
the Shares in the New York Stock Exchange; (viii) all costs and expenses incident to the travel and
accommodation of employees of the Company in making road show presentations with respect to the
offering of the Shares, including costs and expenses of charter flights and limousines shared with
employees of the Representatives and including costs and expenses of road show luncheons; (ix)
costs and expenses of any internet road show; (x) preparing and distributing bound volumes of
transaction documents for the Representatives and their legal counsel; and (xi) the performance of
the Company’s and the Operating Partnership’s other obligations hereunder. Upon the request of the
Representatives, the Company will provide funds in advance for filing fees. The Company agrees
that the Underwriters may deduct from the aggregate purchase price for the Shares otherwise payable
to the Company pursuant to this Agreement the amounts for which the Representatives are entitled to
reimbursement pursuant to this subsection (a) and any additional amounts the Representatives incur
on behalf of the Company that are payable by the Company pursuant to this subsection (a).
(b) If this Agreement shall be terminated by the Underwriters, or any of them, pursuant to
clauses (i), (iv)(a), (vi) or (vii) of Section 7, the Company will reimburse the Underwriters or
such Underwriters as have so terminated this Agreement with respect to themselves, severally, for
all out-of-pocket expenses (such as printing, facsimile, courier service, direct computer expenses,
accommodations, travel and the fees and disbursements of Underwriters’ counsel) and any other
advisors, accountants, appraisers, etc. reasonably incurred by such Underwriters in connection
with this Agreement or the transactions contemplated herein.
6. Conditions of the Underwriters’ Obligations. The obligations of the Underwriters hereunder
to purchase Shares at the Closing Time or on each Date of Delivery, as applicable, are subject to
the accuracy of the representations and warranties on the part of the Company and the Operating
Partnership hereunder on the date hereof and at the Closing Time and on each Date of Delivery, as
applicable (as if made on and as of such date), the performance by the Company and the Operating
Partnership of their respective obligations hereunder and the satisfaction of the following further
conditions at the Closing Time or on each Date of Delivery, as applicable:
(a) The Company shall furnish to the Underwriters at the Closing Time and on each Date of
Delivery, as applicable, an opinion of Andrews & Kurth L.L.P., counsel for the Company and the
Subsidiaries, addressed to the Underwriters and dated the Closing Time and
- 24 -
each Date of Delivery, as applicable, and in form and substance satisfactory to DLA Piper LLP (US),
counsel for the Underwriters, stating that:
(i) the outstanding shares of capital stock, partnership interests, membership interests or
other equity interests, as applicable, of the Subsidiaries (other than the Operating Partnership)
have been duly and validly authorized and issued and are fully paid and, with respect to shares of
capital stock, limited partnership interests and membership interests, non-assessable (except to
the extent such non-assessability may be affected by Section 17-607 of the Delaware Revised Uniform
Limited Partnership Act or Section 18-607 of the Delaware Limited Liability Company Act), and,
except as set forth on a schedule, all of the outstanding shares of capital stock, partnership
interests, membership interests or other equity interests, as applicable, of the Subsidiaries are
directly or indirectly owned of record and beneficially by the Company, free and clear of any
security interest perfected by the filing of a financing statement with the Secretary of State of
the State of Delaware pursuant to the Uniform Commercial Code of the State of Delaware naming a
Subsidiary as debtor, other than as specifically set forth in such counsel’s opinion; and except
with respect to all of the issued and outstanding Units (inclusive of the Class B Units), Preferred
Units and long-term incentive partnership units in the Operating Partnership, which are convertible
or exchangeable at the option of the general partner of the Operating Partnership into Common Stock
pursuant to the Partnership Agreement, and the Series E Cumulative Preferred Stock (the “Series E
Preferred Stock”), which is convertible into Common Stock pursuant to the Articles Supplementary
classifying the Series E Preferred Stock, to such counsel’s knowledge, there are no outstanding (a)
securities or obligations of the Company or any of the Subsidiaries convertible into or
exchangeable for any capital stock, partnership interests, membership interests or other equity
interests, as applicable, of the Company or any such Subsidiary, (b) warrants, rights or options to
subscribe for or purchase from the Company or any such Subsidiary any such capital stock,
partnership interests, membership interests or other equity interests, as applicable, or any such
convertible or exchangeable securities or obligations, or (c) obligations of the Company or any
such Subsidiary to issue any shares of capital stock, partnership interests, membership interests
or other equity interests, as applicable, or any such convertible or exchangeable securities or
obligation, or any such warrants, rights or options;
(ii) each of the Subsidiaries (for purposes of the opinions set forth this Section 6(a)(ii),
"Subsidiary” means any corporation, association or other entity that is a “significant subsidiary”
(within the meaning of Rule 1-02(w) of Regulation S-X) of the Company) is validly existing as a
corporation, limited partnership or limited liability company, as the case may be, in good standing
under the laws of the State of Delaware or the State of Texas, as applicable, with full corporate,
limited partnership or limited liability company power and authority to own its respective
properties and to conduct its respective businesses as described in the General Disclosure Package
and the Prospectus and, as applicable, to execute and deliver this Agreement and to consummate the
transactions described herein;
(iii) the Company and each of the Subsidiaries (for purposes of the opinions set forth this
Section 6(a)(iii), “Subsidiary” means any corporation, association or other entity that is a
“significant subsidiary” (within the meaning of Rule 1-02(w) of Regulation S-X) of the Company) are
duly qualified and are in good standing in each jurisdiction set forth opposite their respective
names on a schedule to counsel’s opinion letter; except as disclosed in the General
- 25 -
Disclosure Package and the Prospectus, under the organizational documents of each Subsidiary, no
Subsidiary is prohibited or restricted, directly or indirectly, from paying dividends to the
Company, or from making any other distribution with respect to such Subsidiary’s capital stock,
partnership interests, membership interests or other equity interests, as applicable, or from
repaying to the Company or any other Subsidiary any amounts which may from time to time become due
under any loans or advances to such Subsidiary from the Company or such other Subsidiary, or from
transferring any such Subsidiary’s property or assets to the Company or to any other Subsidiary;
(iv) the execution, delivery and performance of this Agreement by the Company and the
Operating Partnership and the consummation by the Company and the Operating Partnership of the
transactions contemplated by this Agreement do not and will not violate, or result in any breach
of, or constitute a default under (nor constitute any event which with notice, lapse of time, or
both would constitute a breach of or default under), (i) any provisions of the charter or bylaws or
other organizational documents of the Company, the Operating Partnership or any other Subsidiary,
(ii) the applicable laws of the State of Texas, (iii) the applicable laws of the United States of
America, (iv) the Revised Uniform Limited Partnership Act of the State of Delaware, (v) the Limited
Liability Company Act of the State of Delaware, (vi) the General Corporation Law of the State of
Delaware, (vii) the applicable laws of the State of New York or (viii) any decree, judgment or
order identified on a schedule to counsel’s letter or otherwise known to such counsel to be
applicable to the Company, the Operating Partnership or any other Subsidiary;
(v) this Agreement has been duly authorized, executed and delivered by the Company and the
Operating Partnership;
(vi) no consent, approval, license, authorization or validation of, or filing, recording or
registration with any governmental authority is required in connection with the execution, delivery
and performance of this Agreement, the consummation of the transactions contemplated herein, and
the sale and delivery of the Shares by the Company as contemplated herein, other than such as have
been obtained or made under the Securities Act and the Securities Act Regulations and the Exchange
Act and Exchange Act Regulations, and except as (A) may be required under the state securities or
blue sky laws of the various jurisdictions in which the Shares are being offered by the
Underwriters, or (B) may be required by FINRA;
(vii) the Company is not subject to registration as an investment company under the Investment
Company Act, and the transactions contemplated by this Agreement will not cause the Company to
become an “investment company” within the meaning of the Investment Company Act;
(viii) all of the issued and outstanding Units, Class B Units and Preferred Units have been
duly authorized and validly issued, and are fully paid in accordance with the Partnership
Agreement; none of such Units, Class B Units or Preferred Units have been issued or sold in
violation of preemptive or similar rights arising under the Revised Uniform Limited Partnership Act
of the State of Delaware or under the Partnership Agreement; and the Units to be issued to the
Company in connection with the Company’s sale of the Shares have been duly authorized and upon the
Company’s contribution of the net proceeds from the sale of the Shares
- 26 -
will be validly issued and fully paid in accordance with the Partnership Agreement, and the
issuance of such Units is not subject to preemptive or similar rights arising under the Revised
Uniform Limited Partnership Act of the State of Delaware or under the Partnership Agreement;
(ix) except as disclosed in the Statutory Prospectus and the Prospectus, to such counsel’s
knowledge, there are no persons with registration or other similar rights to have any equity or
debt securities, including securities that are convertible into or exchangeable for equity
securities, registered pursuant to the Registration Statement or otherwise registered by the
Company under the Securities Act, except for those registration or similar rights that have been
waived or that are inapplicable with respect to the offering contemplated by this Agreement;
(x) the Shares have been approved for listing on the New York Stock Exchange, subject only to
official notice of issuance;
(xi) the form of certificate used to evidence the Shares complies in all material respects
with the requirements of the New York Stock Exchange;
(xii) any required filing of each prospectus relating to the Shares (including the Prospectus)
or any supplement thereto pursuant to Rule 424(b) under the Securities Act has been made in the
manner and the time period required by Rule 424(b) (without reference to Rule 424(b)(8)), and any
required filing of each Issuer Free Writing Prospectus pursuant to Rule 433 as set forth on
Schedule IV has been made in the manner and within the time period required by Rule 433(d);
(xiii) the Registration Statement, as of its effective date, the Applicable Time, and as of
the date hereof, the Statutory Prospectus, as of the Applicable Time, and the Prospectus, as of its
issue date (except in case for the financial statements, notes and related schedules and other
related financial and accounting data contained therein or incorporated by reference therein, as to
which such counsel need express no opinion), complied as to form in all material respects with the
requirements of the Securities Act and the Securities Act Regulations (including Form S-3);
(xiv) the documents incorporated by reference in the Registration Statement, the Statutory
Prospectus or the Prospectus (except in case for the financial statements, notes and related
schedules and other related financial and accounting data contained therein or incorporated by
reference therein, as to which such counsel need express no opinion), at the time they became
effective or were filed with the Commission, as the case may be, complied as to form in all
material respects with the requirements of the Exchange Act and the Exchange Act Regulations;
(xv) the statements under the captions “Federal Income Tax Consequences Of Our Status as a
REIT,” “Description of our Capital Stock” (except for matters relating to Maryland law),
“Description of our Common Stock” (except for matters relating to Maryland law), “Description of
our Preferred Stock” (except for matters relating to Maryland law) and “Partnership Agreement” in
the Prospectus, and “Additional Federal Income Tax Consequences” in the Statutory Prospectus and
“Risk Factors—Risks Related to Our Business—Tax indemnification obligations that apply in the
event that we sell certain properties could limit our
- 27 -
operating flexibility” and “Risk Factors—Risks Related to Our Status as a REIT,” in the Annual
Report (as defined herein), insofar as such statements constitute a summary of the legal matters,
proceedings or documents referred to therein, constitute accurate summaries thereof in all material
respects;
(xvi) to such counsel’s knowledge, there are no actions, suits or proceedings, inquiries, or
investigations pending or threatened against the Company or any of the Subsidiaries or any of their
respective officers and directors or to which the properties, assets or rights of any such entity
are subject, at law or in equity, before or by any federal, state, local or foreign governmental or
regulatory commission, board, body, authority, arbitral panel or agency that are required to be
disclosed in the Statutory Prospectus or the Prospectus but are not so disclosed;
(xvii) to such counsel’s knowledge, there are no contracts or documents of a character that
are required to be described in the Statutory Prospectus and the Prospectus or filed as exhibits to
the Registration Statement, the Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2010 (the “Annual Report”), or any Quarterly Report on Form 10-Q or Current Report on
Form 8-K of the Company incorporated into the Statutory Prospectus or the Prospectus that have not
been so filed or described, and all such descriptions, in all material respects, fairly and
accurately set forth the information called for with respect to such contracts and documents;
(xviii) commencing with its taxable year ending December 31, 2003, the Company has been
organized in conformity with the requirements for qualification and taxation as a REIT under the
Code, and its present and proposed method of operation will enable it to meet the requirements for
qualification and taxation as a REIT under the Code; and
(xix) the Operating Partnership is classified as a partnership for federal income tax purposes
and not as an association taxable as a corporation or a “publicly traded partnership” taxable as a
corporation under the Code.
In addition, such counsel shall confirm that the Registration Statement has been declared
effective by the Commission.
In addition, such counsel shall state that it has participated in conferences with officers
and other representatives of the Company, independent public accountants of the Company, and
representatives and counsel of the Representatives, at which the contents of the Registration
Statement, the Prospectus and the General Disclosure Package and related matters were discussed
and, although such counsel is not passing upon and does not assume responsibility for the accuracy,
completeness or fairness of the statements contained in the Registration Statement or Prospectus
(except as and to the extent expressly specified above), and based on the foregoing (relying to the
extent we deem necessary as to factual matters in respect of the determination of materiality upon
the statements of fact made by officers and other representatives of the Company), no facts have
come to such counsel’s attention that have led such counsel to believe that the Registration
Statement, at its effective date, at the deemed effective date with respect to the Underwriters
pursuant to Rule 430B(f)(2) of the Securities Act Regulations or the date of this Agreement,
contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary to make the statements therein not misleading; or that
- 28 -
the Prospectus, as of its issue date or as of the date of such counsel’s opinion, contained or
contains an untrue statement of a material fact or omitted or omits 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. Such counsel, however, need not express
a statement or belief with respect to the financial statements and notes and related schedules and
other related financial and accounting data included or incorporated by reference in the
Registration Statement or the Prospectus or any further amendment or supplement thereto. In
addition, such counsel shall state that nothing has come to such counsel’s attention that would
lead it to believe that the General Disclosure Package, when taken together, as a whole, as of the
Applicable Time, contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the
light of circumstances under which they were made, not misleading; it being understood that such
counsel need express no statement or belief with respect to the financial statements and notes and
related schedules and other related financial data and accounting data included or incorporated by
reference in the General Disclosure Package or any further amendment or supplement thereto.
In addition, such counsel shall further confirm that it was orally advised by the Commission
that no stop order suspending the effectiveness of the Registration Statement has been issued and,
based on such communication with the Commission, to such counsel’s knowledge, no proceedings with
respect thereto have been commenced or threatened by the Commission.
(b) The Company shall furnish to the Underwriters at the Closing Time and on each Date of
Delivery an opinion of in-house counsel for the Company and the Subsidiaries, addressed to the
Underwriters and dated the Closing Time and each Date of Delivery and in form and substance
satisfactory to DLA Piper LLP (US), counsel for the Underwriters, stating that:
(i) except as disclosed in the Prospectus and the Statutory Prospectus, no material agreement
to which any Subsidiary is a party prohibits or restricts any Subsidiary, directly or indirectly,
from paying dividends to the Company, or from making any other distribution with respect to such
Subsidiary’s capital stock, partnership interests, membership interests or other equity interests,
as applicable, or from repaying to the Company or any other Subsidiary any amounts which may from
time to time become due under any loans or advances to such Subsidiary from the Company or such
other Subsidiary, or from transferring any such Subsidiary’s property or assets to the Company or
to any other Subsidiary;
(ii) to such counsel’s knowledge, neither the Company nor any of the Subsidiaries is in
violation of any term or provision of its organizational documents, is in breach of, or in default
under (nor has any event occurred which with notice, lapse of time, or both would constitute a
breach of, or default under) any material agreement of such entity or under any law, regulation or
rule or any decree, judgment or order applicable to the Company or any of the Subsidiaries, except
such breaches or defaults that, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect;
(iii) the execution, delivery and performance of this Agreement by the Company and the
Operating Partnership and the consummation by the Company and the Operating Partnership of the
transactions contemplated by this Agreement do not and will not
- 29 -
conflict with, or result in any breach of, or constitute a default under (nor constitute any event
which with notice, lapse of time, or both would constitute a breach of or default under), any
material agreement to which the Company or any of the Subsidiaries is a party;
(iv) the issuance and sale of the Shares by the Company is not subject to preemptive or other
similar rights arising under any agreement known to such counsel to which the Company or any of the
Subsidiaries is a party;
(v) none of the issued and outstanding Units, Class B Units or Preferred Units have been
issued or sold in violation of preemptive or similar rights arising under any material agreement of
the Operating Partnership, and the issuance of the Units to the Company in connection with the
Company’s sale of the Shares is not subject to preemptive or similar rights arising under any
material agreement of the Operating Partnership; and
(vi) all descriptions in the General Disclosure Package or the Prospectus of contracts and
other documents that constitute material agreements of the Company or any Subsidiary (including the
Operating Partnership) are accurate in all material respects.
(c) The Company shall furnish to the Underwriters at the Closing Time and on each Date of
Delivery an opinion of Hogan Lovells US LLP, special Maryland counsel of the Company, addressed to
the Underwriters and dated the Closing Time and each Date of Delivery and in form and substance
satisfactory to DLA Piper LLP (US), counsel for the Underwriters, stating that:
(i) the Company was duly incorporated and is validly existing as a corporation and in good
standing as of the date of the certificate delivered at the Closing Time or Date of Delivery, as
the case may be, under the Maryland General Corporation Law;
(ii) the Company has the corporate power to own its properties and to conduct its businesses
as described in the General Disclosure Package and the Prospectus and to execute, deliver and
perform this Agreement;
(iii) the authorized capital stock of the Company consists of 200 million shares of common
stock, par value $.01 per share, and 50 million shares of Preferred Stock;
(iv) no provision of the Company’s charter requires the Company to repurchase or otherwise
acquire any shares of the Company’s capital stock;
(v) the Shares have been duly authorized and, when issued in accordance with the provisions of
this Agreement, will be validly issued, fully paid and non-assessable;
(vi) no holder of outstanding shares of Common Stock or Preferred Stock has any statutory
preemptive right under the Maryland General Corporation Law or any similar right under the charter
or bylaws of the Company to subscribe for any of the Shares;
(vii) this Agreement has been duly authorized, executed and delivered on behalf of the
Company;
- 30 -
(viii) the form of certificate evidencing the Shares complies with the requirements of
Section 2-211 of the Maryland General Corporation Law and the Company’s charter and bylaws;
(ix) the Shares conform as to legal matters in all material respects to the description
thereof set forth in the Prospectus under the caption “Description of our Common Stock”; the
statements under the captions “Risk Factors—Risk Factors Related to Our Corporate Structure—Our
charter does not permit ownership in excess of 9.8% of our capital stock, and attempts to acquire
our capital stock in excess of the 9.8% limit without prior approval from our Board of Directors
are void” and “Risk Factors—Risk Factors Related to Our Corporate Structure—Because provisions
contained in Maryland law and our charter may have an anti-takeover effect, investors may be
prevented from receiving a ‘control premium’ for their shares” in the Annual Report and
“Description of our Capital Stock” (to the extent related to Maryland law or the charter or bylaws
of the Company), “Description of our Common Stock,” “Description of our Preferred Stock,” “Material
Provisions of Maryland Law and of Our Charter and Bylaws,” in the Statutory Prospectus and the
Prospectus and under Item 15 of the Registration Statement, to the extent that such information
constitutes matters or summaries of the Maryland General Corporation Law or summaries of the
Company’s charter or bylaws or constitutes legal conclusions, has been reviewed by us, and is
correct in all material respects;
(x) the execution, delivery and performance on the date hereof by the Company of this
Agreement does not (A) violate the Maryland General Corporation Law or the charter or bylaws of the
Company or (B) violate any Maryland court or administrative order, judgment or decree listed on a
schedule to such counsel’s opinion; and
(xi) no approval or consent of, or registration or filing with, any Maryland regulatory agency
is required to be obtained or made by the Company under the Maryland General Corporation Law in
connection with the execution, delivery and performance by the Company of the Agreement.
(d) The Representatives shall have received from Ernst & Young LLP a letter dated as of the
date of this Agreement, the Closing Time and each Date of Delivery, as the case may be, addressed
to the Representatives, in form and substance satisfactory to the Representatives relating to the
combined financial statements, including pro forma financial statements (if any), of the Company,
and such other matters customarily covered by comfort letters issued in connection with registered
public offerings.
(e) The Representatives shall have received from PricewaterhouseCoopers LLP a letter dated as
of the date of this Agreement addressed to the Representatives, in form and substance satisfactory
to the Representatives relating to the combined financial statements of the Highland Hospitality
Hotels.
(f) The Representatives shall have received at the Closing Time and on each Date of Delivery
the favorable opinion of DLA Piper LLP (US), dated the Closing Time or such Date of Delivery,
addressed to the Representatives and in form and substance satisfactory to the Representatives.
- 31 -
(g) No amendment or supplement to the Registration Statement, the Statutory Prospectus or the
Prospectus shall have been filed to which the Underwriters shall have reasonably objected in
writing.
(h) Prior to the Closing Time and each Date of Delivery (i) the Registration Statement shall
be effective with the Commission and no stop order suspending the effectiveness of the Registration
Statement or any order preventing or suspending the use of any preliminary prospectus or Prospectus
shall have been issued, and no proceedings for such purpose shall have been initiated or
threatened, by the Commission, and no suspension of the qualification of the Shares for offering or
sale in any jurisdiction, or the initiation or threatening of any proceedings for any of such
purposes, has occurred; (ii) all requests for additional information on the part of the Commission
shall have been complied with to the reasonable satisfaction of the Representatives; and (iii) the
Registration Statement, the General Disclosure Package and the Prospectus shall not contain an
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, in the light of the circumstances under which they
were made, not misleading.
(i) All filings with the Commission required by Rule 424 and Rule 430B under the Securities
Act to have been filed by the Closing Time shall have been made within the applicable time period
prescribed for such filing by such Rules.
(j) Between the time of execution of this Agreement and the Closing Time or the relevant Date
of Delivery there shall not have been any change, or any development or event that reasonably could
be expected to result in a change, that has or reasonably could be expected to have a Material
Adverse Effect, whether or not arising in the ordinary course of business, and (ii) no transaction
that is material and unfavorable to the Company shall have been entered into by the Company or any
of the Subsidiaries, in each case, that in the Representatives’ sole judgment, makes it
impracticable or inadvisable to proceed with the public offering of the Shares as contemplated by
the Registration Statement.
(k) The Shares shall have been approved for listing on the New York Stock Exchange, subject
only to official notice of issuance.
(l) FINRA shall not have raised any objection with respect to the fairness and reasonableness
of the underwriting terms and arrangements.
(m) The Representatives shall have received lock-up agreements from each executive officer and
director of the Company substantially in the form of Exhibit A hereto.
(n) The Representatives shall have received at or before the applicable Closing Time and on
the applicable Date of Delivery, a certificate of the Company’s Chairman of the Board, Chief
Executive Officer, President, Chief Operating Officer or Vice President and Chief Accounting
Officer or Chief Financial Officer, to the effect that:
(i) the representations and warranties of the Company and the Operating Partnership in this
Agreement are true and correct, as if made on and as of such date, and the Company and the
Operating Partnership have complied with all the agreements and satisfied all the conditions on
their part to be performed or satisfied at or prior to the date hereof;
- 32 -
(ii) no stop order suspending the effectiveness of the Registration Statement or any
post-effective amendment thereto has been issued and no proceedings for that purpose have been
instituted or are pending or threatened under the Securities Act; and
(iii) subsequent to the respective dates as of which information is given in the General
Disclosure Package or the Prospectus, there has not been (A) any change, or any development or
event that reasonably could be expected to result in a change, that has or reasonably could be
expected to have a Material Adverse Effect, whether or not arising in the ordinary course of
business, (B) any transaction that is material to the Company and the Subsidiaries considered as
one enterprise, (C) any obligation, direct or contingent, that is material to the Company and the
Subsidiaries considered as one enterprise, incurred by the Company or the Subsidiaries, (D) any
change in the capital stock or outstanding indebtedness of the Company or any Subsidiary that is
material to the Company and the Subsidiaries considered as one enterprise, (E) any dividend or
distribution of any kind declared, paid or made on the capital stock or other equity interests of
the Company or any Subsidiary, or (F) any loss or damage (whether or not insured) to the property
of the Company or any Subsidiary that has been sustained or will have been sustained that has or
may reasonably be expected to have a Material Adverse Effect.
(o) The Representatives shall have received at or before the applicable Closing Time and on
the applicable Date of Delivery, an officers’ certificate, executed on behalf of the Company by the
Chief Financial Officer of the Company and the Chief Accounting Officer of the Company, mutually
agreeable relating to the Company’s financial reporting in each of the (i) Registration Statement;
(ii) Annual Report on Form 10-K for the fiscal year ended December 31, 2010; (iii) Quarterly Report
on Form 10-Q for the quarter ended March 31, 2011; and (iv) definitive proxy statement on Schedule
14A;
(p) The Company and the Operating Partnership shall have furnished to the Underwriters such
other documents and certificates as to the accuracy and completeness of any statement in the
Registration Statement, the General Disclosure Package and the Prospectus, the representations,
warranties and statements of the Company or the Operating Partnership contained herein, and the
performance by the Company and the Operating Partnership of their covenants contained herein, and
the fulfillment of any conditions contained herein, as of the Closing Time or any Date of Delivery,
as the Underwriters may reasonably request.
7. Termination. The obligations of the several Underwriters hereunder shall be subject to
termination in the absolute discretion of the Representatives, at any time prior to any Closing
Time or Date of Delivery, (i) if any of the conditions specified in Section 6 shall not have been
fulfilled when and as required by this Agreement to be fulfilled, or (ii) if, in the judgment of
the Representatives, there has been since the respective dates as of which information is given in
the Registration Statement, the Prospectus or the General Disclosure Package, any change, or any
development or event that reasonably could be expected to result in a change, that has or
reasonably could be expected to have a Material Adverse Effect, or any material change in
management of the Company, whether or not arising in the ordinary course of business, or (iii) if
there has occurred any outbreak or escalation of hostilities or other national or international
calamity or crisis (including, without limitation, any terrorist or similar attack) or change in
national or international economic, political or other conditions, the effect of which on
- 33 -
the financial markets of the United States is such as to make it, in the judgment of the
Representatives, impracticable to market the Shares or enforce contracts for the sale of the
Shares, or (iv) (a) if trading in any securities of the Company has been suspended by the
Commission or by the New York Stock Exchange, or (b) if trading generally on the New York Stock
Exchange, the NYSE AMEX or in the Nasdaq global market has been suspended (including an automatic
halt in trading pursuant to market-decline triggers, other than those in which solely program
trading is temporarily halted), or limitations on prices for trading (other than limitations on
hours or numbers of days of trading) have been fixed, or maximum ranges for prices for securities
have been required, by such exchange or FINRA or the over-the-counter market or by order of the
Commission or any other governmental authority, or (v) a general banking moratorium shall have been
declared by any federal, Maryland, New York or Texas authorities or material disruption in
securities transaction clearance or settlement systems, or (vi) if there has been any downgrade in
the rating of any of the Company’s debt securities or preferred stock by any “nationally recognized
statistical rating organization” (as defined for purposes of Rule 436(g) under the Securities Act),
or (vii) any federal or state statute, regulation, rule or order of any court or other governmental
authority has been enacted, published, decreed or otherwise promulgated that, in the reasonable
opinion of the Representatives, will have a Material Adverse Effect.
If the Representatives elect to terminate this Agreement as provided in this Section 7, the
Company and the Underwriters shall be notified promptly by telephone, promptly confirmed by
facsimile.
If the sale to the Underwriters of the Shares, as contemplated by this Agreement, is not
carried out by the Underwriters for any reason permitted under this Agreement or if such sale is
not carried out because the Company shall be unable to comply in all material respects with any of
the terms of this Agreement, the Company shall not be under any obligation or liability under this
Agreement (except to the extent provided in Sections 5 and 9 hereof) and the Underwriters shall be
under no obligation or liability to the Company under this Agreement (except to the extent provided
in Section 9 hereof) or to one another hereunder.
8. Increase in Underwriters’ Commitments. If any Underwriter shall default at the Closing
Time or on a Date of Delivery in its obligation to take up and pay for the Shares to be purchased
by it under this Agreement on such date, the Representatives shall have the right, within 48 hours
after such default, to make arrangements for one or more of the non-defaulting Underwriters, or any
other underwriters, to purchase all, but not less than all, of the Shares which such Underwriter
shall have agreed but failed to take up and pay for (the “Defaulted Shares”). Absent the
completion of such arrangements within such 48-hour period, (i) if the total number of Defaulted
Shares does not exceed 10% of the total number of Shares to be purchased on such date, each
non-defaulting Underwriter shall take up and pay for (in addition to the number of Shares which it
is otherwise obligated to purchase on such date pursuant to this Agreement) the portion of the
total number of Shares agreed to be purchased by the defaulting Underwriter on such date in the
proportion that its underwriting obligations hereunder bears to the underwriting obligations of all
non-defaulting Underwriters; and (ii) if the total number of Defaulted Shares exceeds 10% of such
total, the Representatives may terminate this Agreement by notice to the Company, without liability
of any party to any other party (other than the defaulting
- 34 -
Underwriter), except that the provisions of Sections 5 and 9 hereof shall at all times be
effective and shall survive such termination.
Without relieving any defaulting Underwriter from its obligations hereunder, the Company
agrees with the non-defaulting Underwriters that it will not sell any Shares hereunder on such date
unless all of the Shares to be purchased on such date are purchased on such date by the
Underwriters (or by substituted Underwriters selected by the Representatives with the approval of
the Company or selected by the Company with the approval of the Representatives).
If a new Underwriter or Underwriters are substituted for a defaulting Underwriter in
accordance with the foregoing provision, the Company or the non-defaulting Underwriters shall have
the right to postpone the Closing Time or the relevant Date of Delivery for a period not exceeding
five business days in order that any necessary changes in the Registration Statement and Prospectus
and other documents may be effected.
The term “Underwriter” as used in this Agreement shall refer to and include any Underwriter
substituted under this Section 8 with the same effect as if such substituted Underwriter had
originally been named in this Agreement.
9. Indemnity and Contribution by the Company, the Operating Partnership and the Underwriters.
(a) The Company and the Operating Partnership, jointly and severally, agree to indemnify and hold
harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the
Securities Act (each, an “Affiliate”), its selling agents and each person, if any, who controls any
Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act as follows:
(i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
arising out of any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement (or any amendment thereto), including the Rule 430B Information, or the
omission or alleged omission therefrom of a material fact required to be stated therein or
necessary to make the statements therein not misleading or arising out of any untrue statement or
alleged untrue statement of a material fact contained in any preliminary prospectus, any Issuer
Free Writing Prospectus, any “road show” (as defined in Rule 433 under the Securities Act) not
constituting an Issuer Free Writing Prospectus, or the Prospectus (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not
misleading;
(ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever
based upon any such untrue statement or omission, or any such alleged untrue statement or omission;
provided, that, (subject to Section 9(d) below) any such settlement is effected with the written
consent of the Company, which written consent shall not be unreasonably withheld; and
- 35 -
(iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by the Representatives), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such
untrue statement or omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under (i) or (ii) above;
provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Company by any Underwriter through the Representatives expressly for use in the Registration
Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing
Prospectus, or the Prospectus (or any amendment or supplement thereto).
(b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the
Operating Partnership, the Company’s directors, each of the Company’s officers who signed the
Registration Statement, and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss,
liability, claim, damage and expense described in the indemnity contained in subsection (a) of this
Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Registration Statement (or any amendment thereto), or any
preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with written information furnished to the
Company by such Underwriter through the Representatives expressly for use therein, it being
understood and agreed that the only such information furnished by the Underwriters consists of the
following information under the caption “Underwriting” in the preliminary prospectus and the
Prospectus: the concession specified in the third paragraph and the information in the 12th, 13th,
14th and 15th paragraphs (concerning short sales and stabilization).
(c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party
from any liability hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have otherwise than on account of
this indemnity agreement. In the case of parties indemnified pursuant to Section 9(a) above,
counsel to the indemnified parties shall be selected by the Representatives, and, in the case of
parties indemnified pursuant to Section 9(b) above, counsel to the indemnified parties shall be
selected by the Company. An indemnifying party may participate at its own expense in the defense
of any such action; provided, however, that counsel to the indemnifying party shall not (except
with the consent of the indemnified party) also be counsel to the indemnified party. In no event
shall the indemnifying parties be liable for fees and expenses of more than one counsel (in
addition to any local counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances. No indemnifying party shall, without
the prior written consent of the indemnified parties, settle or
- 36 -
compromise or consent to the entry of any judgment with respect to any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever in respect of which indemnification or contribution could be sought under this
Section 9 (whether or not the indemnified parties are actual or potential parties thereto), unless
such settlement, compromise or consent (i) includes an unconditional release of each indemnified
party from all liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or a failure to act
by or on behalf of any indemnified party.
(d) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 9(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt
by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.
(e) If the indemnification provided for in this Section 9 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Operating Partnership on the one hand and the Underwriters
on the other hand from the offering of the Shares pursuant to this Agreement or (ii) if the
allocation provided by clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company and the Operating Partnership on the one hand and of the Underwriters
on the other hand in connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.
The relative benefits received by the Company and the Operating Partnership on the one hand
and the Underwriters on the other hand in connection with the offering of the Shares pursuant to
this Agreement shall be deemed to be in the same respective proportions as the total net proceeds
from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by
the Company (which, for purposes of this subsection, account for the relative benefits received by
the Operating Partnership) and the total underwriting discount received by the Underwriters, in
each case as set forth on the cover of the Prospectus bear to the aggregate initial public offering
price of the Shares as set forth on the cover of the Prospectus.
The relative fault of the Company and the Operating Partnership on the one hand and the
Underwriters on the other hand shall be determined by reference to, among other things, whether any
such untrue or alleged untrue statement of a material fact or omission or alleged omission to state
a material fact relates to information supplied by the Company or the Operating Partnership or by
the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.
- 37 -
The Company, the Operating Partnership and the Underwriters agree that it would not be just
and equitable if contribution pursuant to this Section 9 were determined by pro rata allocation
(even if the Underwriters were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to above in this
Section 9. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by
an indemnified party and referred to above in this Section 9 shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.
Notwithstanding the provisions of this Section 9, no Underwriter shall be required to
contribute any amount in excess of the total underwriting discount received by such Underwriter in
connection with the Shares underwritten by it and distributed to the public.
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.
For purposes of this Section 9, each person, if any, who controls an Underwriter within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and each
Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such
Underwriter, and each director of the Company, each officer of the Company who signed the
Registration Statement, and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to
this Section 9 are several in proportion to the principal amount of Shares set forth opposite their
respective names in Schedule I hereto and not joint.
10. Survival. The indemnity and contribution agreements contained in Section 9 and the
covenants, warranties and representations of the Company and the Operating Partnership contained in
Sections 3, 4 and 5 of this Agreement shall remain in full force and effect regardless of any
investigation made by or on behalf of any Underwriter, or any person who controls any Underwriter
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, or by or
on behalf of the Company, its directors and officers, the Operating Partnership or any person who
controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, and shall survive any termination of this Agreement or the sale and delivery of the
Shares. The Company, the Operating Partnership and each Underwriter agree promptly to notify the
others of the commencement of any litigation or proceeding against it and, in the case of the
Company, against any of the Company’s officers and directors, in connection with the sale and
delivery of the Shares, or in connection with the Registration Statement, the General Disclosure
Package or Prospectus.
11. Notices. Except as otherwise herein provided, all statements, requests, notices and
agreements shall be in writing or by telegram and, if to the Underwriters, shall be sufficient in
all respects if delivered to (a) Morgan Stanley & Co. LLC, 1585 Broadway, New York, New York,
10036, attn: General Counsel, (b) Credit Suisse Securities (USA) LLC, Eleven Madison
- 38 -
Avenue, New York, New York 10010, Attention: LCD-IBD, (c) KeyBanc Capital Markets Inc., 127
Public Square, Cleveland, Ohio 44114, attn: General Counsel, or (d) UBS Securities LLC, 299 Park
Avenue, New York, New York 10171, attn: Syndicate Department, or if to the Company or the Operating
Partnership shall be sufficient in all respects if delivered to the Company at the offices of the
Company at 14185 Dallas Parkway, Suite 1100, Dallas, Texas 75254, attention of David Brooks.
12. Governing Law; Headings. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. The
section headings in this Agreement have been inserted as a matter of convenience of reference and
are not a part of this Agreement.
13. No Advisory or Fiduciary Relationship. Each of the Company and the Operating Partnership
acknowledge and agree that (i) the purchase and sale of the Shares pursuant to this Agreement,
including the determination of the public offering price of the Shares and any related discounts
and commissions, is an arm’s length commercial transaction between the Company and the Operating
Partnership, on the one hand, and the several Underwriters, on the other hand, (ii) in connection
with the offering contemplated hereby and the process leading to such transaction each Underwriter
is and has been acting solely as a principal and is not the agent or fiduciary of the Company or
the Operating Partnership, or its stockholders or partners, creditors, employees or any other
party, (iii) no Underwriter has assumed or will assume an advisory or fiduciary responsibility in
favor of the Company or the Operating Partnership with respect to the offering contemplated hereby
or the process leading thereto (irrespective of whether such Underwriter has advised or is
currently advising the Company or the Operating Partnership on other matters) and no Underwriter
has any obligation to the Company or Operating Partnership with respect to the offering
contemplated hereby except the obligations expressly set forth in this Agreement, (iv) the
Underwriters and their respective affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of the Company and the Operating Partnership, and (v) the
Underwriters have not provided any legal, accounting, regulatory or tax advice with respect to the
offering contemplated hereby and each of the Company and the Operating Partnership has consulted
its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.
14. Integration. This Agreement supersedes all prior agreements and understandings (whether
written or oral) between the Company and the Underwriters, or any of them, with respect to the
subject matter hereof.
15. Parties at Interest. The Agreement herein set forth has been and is made solely for the
benefit of the Underwriters, the Company, the Operating Partnership and the controlling persons,
directors and officers referred to in Section 9 hereof, and their respective successors, assigns,
executors and administrators. No other person, partnership, association or corporation (including
a purchaser, as such purchaser, from any of the Underwriters) shall acquire or have any right under
or by virtue of this Agreement.
- 39 -
16. Counterparts and Facsimile Signatures. This Agreement may be signed by the parties in
counterparts which together shall constitute one and the same agreement among the parties. A
facsimile signature shall constitute an original signature for all purposes.
[signatures on next page]
- 40 -
If the foregoing correctly sets forth the understanding among the Company, the Operating
Partnership and the Underwriters, please so indicate in the space provided below for the purpose,
whereupon this Agreement shall constitute a binding agreement among the Company, the Operating
Partnership and the Underwriters.
| |
|
|
|
|
| |
Very truly yours,
ASHFORD HOSPITALITY TRUST, INC.
|
|
| |
By: |
/s/ David A. Brooks
|
|
| |
|
Name: |
David A. Brooks |
|
| |
|
Title: |
Chief Operating Officer and General
Counsel |
|
| |
| |
ASHFORD HOSPITALITY LIMITED PARTNERSHIP
|
|
| |
By: |
Ashford OP General Partner LLC,
its sole general partner
|
|
| |
| |
|
|
| |
By: |
Ashford Hospitality Trust, Inc.,
its sole member
|
|
| |
| |
|
|
| |
By: |
/s/ David A. Brooks
|
|
| |
|
Name: |
David A. Brooks |
|
| |
|
Title: |
Chief Operating Officer and General
Counsel |
|
| |
Signature Page to Underwriting Agreement
| |
|
|
|
|
CONFIRMED AND ACCEPTED,
as of the date first above written:
MORGAN STANLEY & CO. LLC
|
|
| By: |
/s/ Tyler Rindler
|
|
| |
Name: |
Tyler Rindler |
|
| |
Title: |
Vice President |
|
| |
CREDIT SUISSE SECURITIES (USA) LLC
|
|
| By: |
/s/ Michael Kamras
|
|
| |
Name: |
Michael Kamras |
|
| |
Title: |
Director |
|
| |
KEYBANC CAPITAL MARKETS INC.
|
|
| By: |
/s/ Mark J. Foster
|
|
| |
Name: |
Mark J. Foster |
|
| |
Title: |
Managing Director |
|
| |
UBS SECURITIES LLC
|
|
| By: |
/s/ Mark Gerstein
|
|
| |
Name: |
Mark Gerstein |
|
| |
Title: |
Managing Director |
|
| |
| |
|
| By: |
/s/ William Kyle Torpey
|
|
| |
Name: |
William Kyle Torpey |
|
| |
Title: |
Associate Director |
|
| |
Signature Page to Underwriting Agreement
Schedule I
| |
|
|
|
|
| Underwriter |
|
Number of Shares to be Purchased |
|
Morgan Stanley & Co. LLC |
|
|
1,575,000 |
|
Credit Suisse Securities (USA) LLC |
|
|
1,575,000 |
|
KeyBanc Capital Markets Inc. |
|
|
1,575,000 |
|
UBS Securities LLC |
|
|
1,575,000 |
|
Robert W. Baird & Co. Incorporated |
|
|
175,000 |
|
FBR Capital Markets & Co. |
|
|
175,000 |
|
JMP Securities LLC |
|
|
175,000 |
|
Citadel Securities Corp. |
|
|
87,500 |
|
Keefe, Bruyette & Woods, Inc. |
|
|
87,500 |
|
|
|
|
|
Total |
|
|
7,000,000 |
|
|
|
|
|
Schedule II
Each Subsidiary that is a “significant subsidiary” within the meaning of Rule 1-02(w) of
Regulation S-X is identified with an asterisk.
9181-3543 Quebec Inc.
AH Hotel GP LLC
AH Tenant Corporation
AH Hotel Partners LP
Annapolis Hotel GP LLC
Annapolis Maryland Hotel Limited Partnership
Ashford 1031 GP LLC
Ashford Alpharetta Limited Partnership
Ashford Anaheim GP LLC
Ashford Anaheim LP
Ashford Anchorage GP LLC
Ashford Anchorage LP
Ashford Atlanta Buckhead LP
Ashford Atlanta Perimeter LP
Ashford Atlantic Beach LP
Ashford Austin LP
Ashford Basking Ridge LP
Ashford Birmingham LP
Ashford Bloomington LP
Ashford Bridgewater Hotel Partnership, LP
Ashford Bucks County LLC
Ashford Buena Vista LP
Ashford Buford I LP
Ashford Buford II LP
Ashford BWI Airport LP
Ashford Canada Nominee Corporation
Ashford Canada Trust
Ashford Centerville Limited Partnership
Ashford Charlotte Limited Partnership
Ashford Chicago O’Hare GP LLC
Ashford Chicago O’Hare LP
Ashford Columbus LP
Ashford Coral Gables LP
Ashford Credit Holding LLC *
Ashford Crystal City Limited Partnership
Ashford Crystal Gateway GP LLC *
Ashford Crystal Gateway LP
Ashford Dallas LP
Ashford Dearborn GP LLC
Ashford Dulles LP
Ashford Durham I LLC
Ashford Durham II LLC
Ashford Edison LP
Ashford Evansville I LP
Ashford Evansville III LP
Ashford Falls Church Limited Partnership
Ashford Flagstaff LP
Ashford Ft. Lauderdale Weston I LLC
Ashford Ft. Lauderdale Weston II LLC
Ashford Ft. Lauderdale Weston III LLC
Ashford Gaithersburg Limited Partnership
Ashford Gateway TRS Corporation
Ashford Hawthorne LP
Ashford HHC LLC
Ashford HHC II LLC
Ashford HHC III LLC
Ashford HHC Partners LP *
Ashford HHC Partners II LP *
Ashford HHC Partners III LP *
Ashford Holtsville LP
Ashford Hospitality Finance Albuquerque General Partner LLC
Ashford Hospitality Finance Albuquerque LP
Ashford Hospitality Finance California General Partner LLC
Ashford Hospitality Finance General Partner LLC
Ashford Hospitality Finance LP *
Ashford Hospitality Finance La Jolla LP
Ashford Hospitality Limited Partnership
Ashford Hospitality Servicing LLC
Ashford Hospitality Limited Partnership *
Ashford IHC, LLC
Ashford IHC Partners LP *
Ashford Irvine Spectrum Foothill Ranch Limited Partnership
Ashford Jacksonville I LP
Ashford Jacksonville II LP
Ashford Jacksonville III GP LLC
Ashford Jacksonville III LP
Ashford Jacksonville IV GP LLC
Ashford Jacksonville IV LP
Ashford Kansas City LP
Ashford Kennesaw I LP
Ashford Kennesaw II LP
Ashford Las Vegas LP
Ashford Laundry LLC
Ashford Lawrenceville LP
Ashford LLB C-Hotel Management, LP
Ashford LLB F-Inn Management LP
Ashford LLB SHS Management LP
Ashford Louisville LP
Ashford LV Hughes Center LP
Ashford Manhattan Beach LP
Ashford Market Center LP
Ashford Mezz Borrower LLC *
Ashford Minneapolis Airport GP LLC
Ashford Minneapolis Airport LP
Ashford Mira Mesa San Diego Limited Partnership
Ashford Mobile LP
Ashford MV San Diego GP LLC
Ashford MV San Diego LP
Ashford Newark LP
Ashford Oakland LP
Ashford OP General Partner LLC *
Ashford OP Limited Partner LLC *
Ashford Orlando Sea World Limited Partnership
Ashford Overland Park Limited Partnership
Ashford Philadelphia Annex LLC
Ashford Philly GP LLC
Ashford Philly LP
Ashford Phoenix Airport LP
Ashford Plano-C LP
Ashford Plano-M LP
Ashford Plano-R LP
Ashford Plymouth Meeting LP
Ashford Pool I GP LLC
Ashford Pool II GP LLC
Ashford Properties General Partner LLC
Ashford Properties General Partner Sub III LLC
Ashford Raleigh Limited Partnership
Ashford Richmond LP
Ashford Ruby Palm Desert I Limited Partnership
Ashford Salt Lake Limited Partnership
Ashford San Francisco GP LLC
Ashford San Francisco LP
Ashford San Francisco II LP
Ashford San Jose LP
Ashford Santa Fe LP
Ashford Sapphire Acquisition LLC
Ashford Sapphire GP LLC
Ashford Sapphire I GP LLC
Ashford Sapphire II GP LLC
Ashford Sapphire III GP LLC
Ashford Sapphire V GP LLC
Ashford Sapphire VI GP LLC
Ashford Sapphire VII GP LLC
Ashford Sapphire Junior Holder I LLC *
Ashford Sapphire Junior Holder II LLC
Ashford Sapphire Junior Mezz I LLC *
Ashford Sapphire Junior Mezz II LLC
Ashford Sapphire Senior Mezz I LLC *
Ashford Sapphire Senior Mezz II LLC
Ashford Scottsdale LP
Ashford Seattle Downtown LP
Ashford Seattle Waterfront LP
Ashford Senior General Partner LLC
Ashford Senior General Partner I LLC
Ashford Senior General Partner II LLC
Ashford Senior General Partner III LLC
Ashford Senior General Partner IV LLC
Ashford Syracuse LP
Ashford Tampa International Hotel LP
Ashford Terre Haute LP
Ashford Tipton Lakes LP
Ashford Torrance LP
Ashford TRS Anaheim LLC
Ashford TRS Canada Corporation
Ashford TRS Chicago LLC
Ashford TRS Corporation *
Ashford TRS I LLC
Ashford TRS III LLC
Ashford TRS V LLC
Ashford TRS VI Corporation *
Ashford TRS Jacksonville III LLC
Ashford TRS Jacksonville IV LLC
Ashford TRS Lessee LLC
Ashford TRS Lessee I LLC
Ashford TRS Lessee II LLC
Ashford TRS Lessee III LLC
Ashford TRS Lessee IV LLC
Ashford TRS Nickel LLC
Ashford TRS Pool I LLC
Ashford TRS Pool II LLC
Ashford TRS San Francisco LLC
Ashford TRS Sapphire GP LLC
Ashford TRS Sapphire LLC
Ashford TRS Sapphire I LLC
Ashford TRS Sapphire II LLC
Ashford TRS Sapphire III LLC
Ashford TRS Sapphire V LLC
Ashford TRS Sapphire VI LLC
Ashford TRS Sapphire VII LLC
Ashford Walnut Creek GP LLC
Ashford Walnut Creek LP
Bucks County Member LLC
CC 2 Tree Tenant Corp.
CHH Capital Hotel GP LLC
CHH Capital Hotel Partners LP *
CHH Capital Tenant Corp.
CHH Crystal City Hotel GP, LLC
CHH Crystal City Hotel LP
CHH Dallas Parent, LLC
CHH Dallas Partnership LP
CHH III Tenant Parent Corp.
CHH Lee Vista Hotel GP, LLC
CHH Lee Vista Hotel LP
CHH Rye Town Hotel GP LLC
CHH Rye Town Hotel LP
CHH Santa Clara Hotel GP LLC
CHH Santa Clara Hotel LP
CHH Torrey Pines Hotel GP LLC
CHH Torrey Pines Hotel Partners LP
CHH Torrey Pines Tenant Corp.
CHH Tucson Parent LLC
CHH Tucson Partnership LP
CIH Galleria Parent LLC
CM Hotel GP LLC
CM Hotel Partners LP
Commack New York Hotel Limited Partnership
Coral Gables Florida Hotel Limited Partnership
Crystal City Tenant Corp.
CY-CIH Manchester Parent LLC
CY Manchester Hotel Partners LP
CY Manchester Tenant Corporation
Dallas Texas Hotel Limited Partnership
DLC 2 Tree Tenant Corp.
Dearborn Hotel Partners LP
Dearborn Tenant Corp.
EC Tenant Corp.
FL/NY GP LLC
Galleria Hotel Partners LP (f/k/a HI Galleria Hotel Partners LP)
Galleria Tenant Corporation
Georgia Peach Hotel Limited Partnership
HMA Hotel GP LLC
HMA Hotel Partners LP
Hyannis Massachusetts Hotel Limited Partnership
Key West Florida Hotel Limited Partnership
Key West Hotel GP LLC
Lee Vista Tenant Corp.
Minnetonka Hotel GP LLC
Minnetonka Minnesota Hotel Limited Partnership
New Beverly Hills GP LLC
New Beverly Hills Hotel Limited Partnership
New Clear Lake GP LLC
New Clear Lake Hotel Limited Partnership
New Fort Tower I GP LLC
New Fort Tower I Hotel Limited Partnership
New Fort Tower II GP LLC
New Fort Tower II Hotel Limited Partnership
New Houston GP LLC
New Houston Hotel Limited Partnership
New Indianapolis Airport Hotel Limited Partnership
New Indianapolis Downtown GP LLC
New Indianapolis Downtown Hotel Limited Partnership
New Milford Hotel Limited Partnership
Palm Beach Florida Hotel and Office Building Limited Partnership
Palm Beach GP LLC
PH Hotel GP LLC
PH Hotel Partners LP
PIM Ashford Subsidiary I LLC
PIM Ashford Subsidiary II LLC
PIM Ashford Subsidiary III LLC
PIM Ashford Venture I LLC
PIM Ashford Venture II LLC
RFS SPE 2000 LLC
RI-CIH Manchester Parent LLC
RI Manchester Hotel Partners LP
RI Manchester Tenant Corporation
Ruby Senior General Partner I LLC
Ruby Senior General Partner II LLC
Ruby Senior General Partner III LLC
Rye Town Tenant Corp.
Santa Clara Tenant Corp.
South Yarmouth Massachusetts Hotel Limited Partnership
St. Petersburg Florida Hotel Limited Partnership
St. Petersburg GP LLC
Westbury New York Hotel Limited Partnership
Ashford CM GP LLC
Ashford PH GP LLC
Ashford Crystal City GP LLC
Ashford Lee Vista GP LLC
Ashford Santa Clara GP LLC
Ashford CM Partners LP
Ashford PH Partners LP
Ashford Crystal City Partners LP
Ashford Lee Vista Partners LP
Ashford Santa Clara Partners LP
Ashford TRS CM LLC
Ashford TRS PH LLC
Ashford TRS Crystal City LLC
Ashford TRS Lee Vista LLC
Ashford TRS Santa Clara LLC
Ashford LMND LLC
Ashford GCH Beverage, Inc.
Ashford HI Beverage, Inc.
Ashford Investment Management LP
Ashford Investment Management GP LLC
PIM Highland Holding LLC *
PIM Highland TRS Corporation *
Ashford TRS WQ LLC
Ashford WQ Hotel GP LLC
Ashford WQ Hotel LP
Ashford WQ Licensee LLC
HH Annapolis Holding LLC
HH Annapolis LLC
HH Atlanta LLC
HH Austin Hotel Associates, L.P.
HH Baltimore Holdings LLC
HH Baltimore LLC
HH Boston Back Bay LLC
HH Chicago LLC
HH Churchill Hotel Associates, L.P.
HH Denver LLC
HH DFW Hotel Associates, L.P.
HH FP Portfolio LLC *
HH Gaithersburg Borrower LLC
HH Gaithersburg LLC
HH LC Portfolio LLC *
HH Melrose Hotel Associates, L.P.
HH Nashville LLC
HH Palm Springs LLC
HH Princeton LLC
HH San Antonio LLC
HH Savannah LLC
HH Tampa Westshore LLC
HH Texas Hotel Associates L.P.
HHC Texas GP LLC
Portsmouth Hotel Associates LLC
HHC TRS Atlanta LLC
HHC TRS Austin LLC
HHC TRS Baltimore LLC
HHC TRS Chicago LLC
HHC TRS FP Portfolio LLC
HHC TRS GP LLC
HHC TRS Highland LLC
HHC TRS LC Portfolio LLC
HHC TRS Melrose LLC
HHC TRS Nashville LLC
HHC TRS OP LLC
HHC TRS Portsmouth LLC
HHC TRS Princeton LLC
HHC TRS Savannah LLC
HHC TRS Tampa LLC
Non-REIT GP LLC
HH Swap A LLC *
HH Swap C LLC *
HH Swap C-1 LLC
HH Swap D LLC *
HH Swap F LLC *
HH Swap F-1 LLC
HH Swap G LLC *
HH Mezz Borrower A-2 LLC *
HH Mezz Borrower C-2 LLC *
HH Mezz Borrower D-2 LLC *
HH Mezz Borrower F-2 LLC *
HH Mezz Borrower G-2 LLC *
HH Mezz Borrower A-3 LLC *
HH Mezz Borrower C-3 LLC *
HH Mezz Borrower D-3 LLC *
HH Mezz Borrower F-3 LLC *
HH Mezz Borrower G-3 LLC *
HH Mezz Borrower A-4 LLC *
HH Mezz Borrower C-4 LLC *
HH Mezz Borrower D-4 LLC *
HH Mezz Borrower F-4 LLC *
HH Mezz Borrower G-4 LLC *
Schedule III
ASHFORD HOSPITALITY TRUST, INC.
| |
|
|
|
Issuer: |
|
Ashford Hospitality Trust, Inc. |
Symbol: |
|
NYSE: AHT |
Size: |
|
$87,500,000 |
Price to public: |
|
$12.50 per share |
Shares offered: |
|
7,000,000 shares of Common Stock (par value $.01 |
|
|
per share) (excluding over-allotment option) |
Over-allotment option: |
|
1,050,000 shares |
Trade date: |
|
June 29, 2011 |
Closing Date: |
|
July 5, 2011 |
Exhibit A
June ___, 2011
MORGAN STANLEY & CO. LLC
1585 Broadway
New York, NY 10036
CREDIT SUISSE SECURITIES (USA) LLC
Eleven Madison Avenue
New York, NY 10010
KEYBANC CAPITAL MARKETS INC.
127 Public Square
Cleveland, OH 44114
UBS SECURITIES LLC
299 Park Avenue
New York, NY 10171
as Representatives of the several
Underwriters to be named in the
within-mentioned Underwriting Agreement
| |
|
|
|
Re:
|
|
Proposed Public Offering by Ashford Hospitality Trust, Inc. |
Dear Sirs:
The undersigned, an officer and/or director of Ashford Hospitality Trust, Inc., a
Maryland corporation (the “Company”), understands that Morgan Stanley & Co. LLC, Credit Suisse
Securities (USA) LLC, KeyBanc Capital Markets Inc. and UBS Securities LLC (the “Representatives”)
propose to enter into an Underwriting Agreement (the “Underwriting Agreement”) with the Company and
Ashford Hospitality Limited Partnership, a Delaware limited partnership (the “Operating
Partnership”), providing for the public offering of shares of the Company’s common stock, par value
$.01 per share (the “Common Stock”). In recognition of the benefit that such an offering will
confer upon the undersigned as an officer and/or director of the Company, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
undersigned agrees with each underwriter to be named in the Underwriting Agreement that, during a
period of 45 days from the date of the Underwriting Agreement, the undersigned will not, without
the prior written consent of the Representatives, directly or indirectly, (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 for the purchase or sale of, or otherwise dispose of or transfer
any shares of the Company’s Common Stock or any securities convertible into or exchangeable or
exercisable for Common Stock, including units of limited partnership interest in the Operating
Partnership, whether now owned or hereafter acquired by the undersigned or with respect to which
the undersigned has or hereafter acquires the power of disposition, or file, or cause to be filed,
or make any demand or exercise any right with respect to the filing of, any registration statement
under the Securities Act of 1933, as amended, with respect to any of the foregoing (collectively,
the “Lock-Up Securities”), or to otherwise participate as a selling securityholder in any manner in
any registration
effected by the Company under the Securities Act, including the registration statement related
to the Underwriting Agreement, or (ii) enter into any swap or any other agreement or any
transaction that transfers, in whole or in part, directly or indirectly, the economic consequence
of ownership of the Lock-Up Securities, whether any such swap, agreement or transaction is to be
settled by delivery of Common Stock or other securities, in cash or otherwise. [Include in the
agreement with the executive officer previously identified to the Representative: The foregoing
restrictions shall not apply to a sale of Common Stock pursuant to a written trading plan in effect
before the date hereof that satisfies all of the requirements of Rule 10b5-1(c)(1)(i)(B) of the
Securities Exchange Act of 1934, as amended.]
Notwithstanding the foregoing, and subject to the conditions below, the undersigned may
transfer the Lock-Up Securities as a bona fide gift or gifts without the prior written consent of
the Representatives, provided that (1) any such transfer shall not involve a disposition for value,
(2) such transfers are not required to be reported with the Securities and Exchange Commission on
Form 4 in accordance with Section 16 of the Securities Exchange Act of 1934, as amended, and (3)
the undersigned does not otherwise voluntarily effect any public filing or report regarding such
transfers during the 45-day period commencing on the date of the Underwriting Agreement.
Notwithstanding the foregoing, if (x) during the last 17 days of the 45-day restricted period,
the Company issues an earnings release or material news or a material event relating to the Company
occurs; or (y) prior to the expiration of the 45-day restricted period, the Company announces that
it will release earnings results during the 16-day period beginning on the last day of such 45-day
period; then in each case the restrictions imposed in this Letter Agreement shall continue to apply
until the expiration of the 18-day period beginning on the date of issuance of the earnings release
or the occurrence of the material news or material event.
If the Underwriting Agreement shall terminate prior to payment for and delivery of the Shares,
the Representatives will release the undersigned from the obligations under this letter agreement.
| |
|
|
|
|
| |
Very truly yours,
Signature:
|
|
| |
Print Name:
|
|
| |
|
|
| |
|
|
| |
|
|
| |