SUPPORT AGREEMENT
Exhibit 10.5
SUPPORT AGREEMENT, dated as of September 12, 2006 (this
“Agreement”), by the undersigned beneficial
interest holder (the “Shareholder”) of Windrose
Medical Properties Trust, a Maryland real estate investment
trust (the “Company”), for the benefit of
Health Care REIT, Inc., a Delaware corporation
(“Parent”).
RECITALS
WHEREAS, Parent, Heat Merger Sub, LLC, a Delaware limited
liability company and a wholly-owned subsidiary of Parent
(“Merger Sub”), Heat OP Merger Sub, L.P., a
Virginia limited partnership and a wholly-owned subsidiary of
Parent (“OP Merger Sub”), the Company and
Windrose Medical Properties, L.P., a Virginia limited
partnership and the operating limited partnership of the Company
(“Company OP”), are entering into the Agreement
and Plan of Merger, dated as of September 12, 2006 (the
“Merger Agreement”), which provides for, among
other things, the merger of the Company with and into Merger Sub;
WHEREAS, the Shareholder owns that number of common shares of
beneficial interest, par value $0.01 per share, of the
Company (“Company Common Shares”), appearing on
the signature page hereof (such Company Common Shares, together
with any other Company Common Shares or other shares of
beneficial interest or voting securities of the Company
beneficially owned as of the date hereof or acquired by such
Shareholder after the date hereof and during the term of this
Agreement, being collectively referred to herein as the
“Subject Shares”);
WHEREAS, the Shareholder is a limited partner of Company OP and
owns that number of units of partnership interest of Company OP
(“Company OP Units”) appearing on the signature
page hereof (such Company OP Units, together with any other
Company OP Units or other units of partnership interest of
Company OP beneficially owned as of the date hereof or acquired
by such Shareholder after the date hereof and during the term of
this Agreement, being collectively referred to herein as the
“Subject Units”); and
WHEREAS, as a condition to their willingness to enter into the
Merger Agreement, Parent, Merger Sub and OP Merger Sub have
required that the Shareholder agree, and in order to induce
Parent, Merger Sub and OP Merger Sub to enter into the Merger
Agreement the Shareholder has agreed, to enter into this
Agreement.
NOW, THEREFORE, in consideration of the promises and the mutual
covenants and agreements set forth herein, the Shareholder
agrees as follows:
1. Capitalized Terms. Capitalized
terms used in this Agreement that are not defined herein shall
have the meanings set forth in the Merger Agreement.
2. Covenants of Shareholder. Until
the termination of this Agreement in accordance with
Section 5:
(a) The Shareholder shall attend the Company Shareholders
Meeting, in person or by proxy, and at the Company Shareholders
Meeting (or at any adjournment thereof) or in any other
circumstances upon which a vote, consent or other approval with
respect to the Merger and the Merger Agreement is sought, the
Shareholder shall vote (or cause to be voted) the Subject Shares
in favor of the Merger, the adoption of the Merger Agreement and
the approval of the terms thereof.
(b) At any meeting of Shareholders of the Company or at any
adjournment thereof or in any other circumstances upon which the
Shareholder’s vote, consent or other approval is sought,
the Shareholder shall vote (or cause to be voted) the Subject
Shares against (i) any merger agreement or merger (other
than the Merger Agreement and the Merger), consolidation,
combination, sale of substantial assets, reorganization,
recapitalization, dissolution, liquidation or winding up of or
by the Company or any Company Subsidiary or any other
Acquisition Proposal or (ii) any action or agreement
(including any amendment of the Company’s Amended and
Restated Declaration of Trust or Amended and Restated Bylaws or
other proposal or transaction involving the Company or any
Company Subsidiary) that would (A) result in a breach of
any covenant, representation or warranty or any other obligation
or agreement under the Merger Agreement, (B) in any manner
impede, interfere with, delay, discourage, postpone,
frustrate, prevent, nullify or adversely affect the Merger, the
Merger Agreement or any of the other transactions contemplated
by the Merger Agreement or (C) change in any manner the
voting rights of any class of beneficial interests of the
Company. The Shareholder further agrees not to commit or agree
to take any action inconsistent with the foregoing.
(c) The Shareholder agrees not to (i) sell, transfer,
pledge, assign or otherwise dispose of (including by gift)
(collectively, “Transfer”), or enter into any
contract, option or other arrangement (including any
profit-sharing arrangement) with respect to the Transfer of the
Subject Shares or Subject Units to any person or (ii) enter
into any voting arrangement, whether by proxy, voting agreement
or otherwise, in relation to the Subject Shares or Subject
Units, and agrees not to commit or agree to take any of the
foregoing actions.
(d) The Shareholder agrees to promptly notify Parent in
writing of the nature and amount of any acquisition by such
Shareholder of any voting securities of the Company or any
Company OP Units acquired by such Shareholder hereafter.
3. Representations and
Warranties. The Shareholder represents and
warrants to Parent as follows:
(a) The Shareholder has the legal right, power and capacity
to execute, deliver and perform this Agreement.
(b) The Shareholder is the record and beneficial owner of,
and has good and marketable title to, the Subject Shares (other
than Subject Shares shown on the signature page hereto as being
owned subject to restriction or forfeiture) and the Subject
Units. The Shareholder does not own, of record or beneficially,
any shares of beneficial interest of the Company other than the
Subject Shares or the Subject Units. The Shareholder has the
sole right to vote, and the sole power of disposition with
respect to, the Subject Shares (other than Subject Shares shown
on the signature page hereto as being owned subject to
restriction or forfeiture) and the Subject Units, and none of
the Subject Shares or Subject Units is subject to any voting
trust, proxy or other agreement, arrangement or restriction with
respect to the voting or disposition of such Subject Shares or
Subject Units, except as contemplated by this Agreement.
(c) This Agreement has been duly executed and delivered by
the Shareholder and, assuming the due authorization, execution
and delivery of this Agreement by Parent, this Agreement
constitutes the valid and binding agreement of the Shareholder
enforceable against the Shareholder in accordance with its terms.
4. Grant of Irrevocable Proxy; Appointment of
Proxy. Until the termination of this
Agreement in accordance with Section 5:
(a) The Shareholder hereby severally irrevocably grants to,
and appoints, Xxxxxx X. Xxxxxxx or Xxxxxxx X. Xxxxxxx, Xx.,
in their respective capacities as designees of the Company or
other designees of the Company so designated, and each of them
individually, or any of them, the Shareholder’s proxy and
attorney-in-fact
(with full power of substitution), for and in the name, place
and stead of the Shareholder, to vote all of the Subject Shares
owned of record by the Shareholder in accordance with
Section 1(a) and Section 1(b) of this Agreement.
(b) The Shareholder represents that any proxies heretofore
given in respect of the Subject Shares are not irrevocable and
that all such proxies are hereby revoked.
(c) The Shareholder understands and acknowledges that
Parent, Merger Sub and OP Merger Sub are entering into the
Merger Agreement in reliance upon the Shareholder’s
execution and delivery of this Agreement. The Shareholder hereby
affirms that the irrevocable proxy set forth in this
Section 3 is given in connection with the execution of the
Merger Agreement and that such irrevocable proxy is given to
secure the performance of the duties of the Shareholder under
this Agreement. The Shareholder hereby further affirms that the
irrevocable proxy is coupled with an interest and may under no
circumstance be revoked. The Shareholder hereby ratifies and
confirms all that such irrevocable proxy may lawfully do or
cause to be done by virtue hereof.
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5. Termination. The obligations of
the Shareholder hereunder shall terminate upon the earlier to
occur of (i) the termination of the Merger Agreement
pursuant to Section 9.1 thereof and (ii) the Effective
Time.
6. Successors, Assigns and Transferees
Bound. Any successor, assignee or transferee
(including a successor, assignee or transferee as a result of
the death of the Shareholder, such as an executor or heir) shall
be bound by the terms hereof, and the Shareholder shall take any
and all actions necessary to obtain the written confirmation
from such successor, assignee or transferee that it is bound by
the terms hereof.
7. Remedies. The Shareholder
acknowledges that money damages would be both incalculable and
an insufficient remedy for any breach of this Agreement by it,
and that any such breach would cause Parent irreparable harm.
Accordingly, the Shareholder agrees that in the event of any
breach or threatened breach of this Agreement, Parent, in
addition to any other remedies at law or in equity it may have,
shall be entitled, without the requirement of posting a bond or
other security, to equitable relief, including injunctive relief
and specific performance.
8. Severability. The invalidity or
unenforceability of any provision of this Agreement in any
jurisdiction shall not affect the validity or enforceability of
any other provision of this Agreement in such jurisdiction, or
the validity or enforceability of any provision of this
Agreement in any other jurisdiction.
9. Amendment. This Agreement may
be amended only by means of a written instrument executed and
delivered by both the Shareholder and Parent.
10. Jurisdiction. Each party
hereby irrevocably submits to the exclusive jurisdiction of the
courts of the State of Delaware in any action, suit or
proceeding arising in connection with this Agreement, and agrees
that any such action, suit or proceeding shall be brought only
in such courts (and waives any objection based on forum non
conveniens or any other objection to venue therein). Each
party hereto waives any right to a trial by jury in connection
with any such action, suit or proceeding.
11. Governing Law. Except to the
extent that Entity Law is mandatorily applicable to the Merger,
this Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, regardless of the laws
that might otherwise govern under applicable principles of
conflicts of laws thereof.
12. Notice. All notices, requests,
demands and other communications hereunder shall be deemed to
have been duly given and made if in writing and if served by
personal delivery upon the party for whom it is intended or if
sent by telex or telecopier (and also confirmed in writing) to
the person at the address set forth below, or such other address
as may be designated in writing hereafter, in the same manner,
by such person:
(a) | if to Parent, to: |
Health Care REIT, Inc.
Xxx XxxXxxx, Xxxxx 0000
Xxxxxx, Xxxx 00000
Attention: General Counsel
Facsimile No.: (000) 000-0000
Xxx XxxXxxx, Xxxxx 0000
Xxxxxx, Xxxx 00000
Attention: General Counsel
Facsimile No.: (000) 000-0000
with copies (which shall not constitute notice) to:
Xxxxxxxx, Loop & Xxxxxxxx, LLP
Xxxxx Xxxxxxxxxx Xxxxxx
0000 Xxxxxxx
Xxxxxx, Xxxx 00000-0000
Attention: Xxxx Xxxxx Xxxxxxxxx, Esq.
Xxxxx Xxxxxxxxxx Xxxxxx
0000 Xxxxxxx
Xxxxxx, Xxxx 00000-0000
Attention: Xxxx Xxxxx Xxxxxxxxx, Esq.
and
Sidley Austin LLP
Xxx Xxxxx Xxxxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxx, Esq.
Xxx Xxxxx Xxxxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxx, Esq.
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(b) if to the Shareholder to:
Windrose Medical Properties Trust
0000 Xxxxxxxx Xxxxx
Xxxxx 000
Xxxxxxxxxxxx, XX 00000
Attention: Xxxxxxxxx X. Xxxxxx
0000 Xxxxxxxx Xxxxx
Xxxxx 000
Xxxxxxxxxxxx, XX 00000
Attention: Xxxxxxxxx X. Xxxxxx
with a copy (which shall not constitute notice) to:
Hunton & Xxxxxxxx LLP
Riverfront Plaza, East Tower
000 Xxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxxx, Esq.
Riverfront Plaza, East Tower
000 Xxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxxx, Esq.
13. Counterparts. For the
convenience of the parties, this Agreement may be executed in
counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.
14. No Limitation on Actions of the Shareholder as
Director or Officer. Notwithstanding anything
to the contrary in this Agreement, nothing in this Agreement is
intended or shall be construed to require the Shareholder to
take or in any way limit any action that the Shareholder may
take to discharge the Shareholder’s fiduciary duties as a
director or officer of the Company, including but not limited to
the right to vote for or support a Superior Acquisition
Proposal, the termination of the Merger Agreement or any other
action, in each case in accordance with the terms of the Merger
Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement as
of the date first written above.
/s/ Xxxxxxxxx
X. Xxxxxx
Name: Xxxxxxxxx X. Xxxxxx
Number of Company Common Shares
owned on the date hereof: 20,620
owned on the date hereof: 20,620
Number of Company Common Shares held
subject to restriction or forfeiture: 23,700
subject to restriction or forfeiture: 23,700
Number of Company OP Units
owned on the date hereof: 7,079
owned on the date hereof: 7,079
Accepted and Agreed to
as of the date set forth above:
as of the date set forth above:
HEALTH CARE REIT, INC.
/s/ Xxxxxx
X. Xxxxxxx
Name: Xxxxxx X. Xxxxxxx
Title: | Chairman and Chief Executive Officer |
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