Exhibit 3
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WYNDHAM INTERNATIONAL, INC.
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STOCKHOLDERS' AGREEMENT
BY AND AMONG
THE STOCKHOLDERS NAMED
ON THE SIGNATURE PAGES HERETO
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Dated as of June 29, 1999
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TABLE OF CONTENTS
Section Heading Page
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Article 1. Certain Definitions..........................................................1
Article 2. Board of Directors...........................................................7
Section 2.1. Board of Directors.............................................7
Article 3. Restrictions on Transfer.....................................................7
Section 3.1. Restrictions on Transfer.......................................8
Section 3.2. Exceptions to Restrictions.....................................8
Section 3.3. Binding Effect on Transferees..................................9
Section 3.4. Notifications Regarding Transfers..............................9
Section 3.5. Restrictions on Conversion.....................................9
Article 4. Tag-Along Rights; Drag-Along Rights.........................................10
Section 4.1. Tag-Along Rights..............................................11
Section 4.2. Drag-Along Rights.............................................11
Article 5. Registration Rights.........................................................12
Section 5.1. Registration Rights...........................................12
Article 6. Miscellaneous...............................................................13
Section 6.1. Further Actions; Cooperation..................................13
Section 6.2. Successors and Assigns........................................13
Section 6.3. Representatives...............................................14
Section 6.4. Amendment; Modification; Waiver...............................14
Section 6.5. Notices.......................................................14
Section 6.6. Entire Agreement: Governing Law...............................14
Section 6.7. Injunctive Relief.............................................15
Section 6.8 Headings......................................................15
Section 6.9. Recapitalizations, Exchanges, Etc. Affecting the Shares of
Common Stock; New Issuances...................................15
Section 6.10. Counterparts..................................................15
Section 6.11. Jurisdiction; Forum...........................................16
Section 6.12. Termination...................................................16
STOCKHOLDERS' AGREEMENT (this "Agreement"), dated as of June 29,
1999, by and among the parties named on the signature pages hereto
(collectively, the "Stockholders") and such other persons that become parties to
this Agreement as described herein.
W I T N E S S E T H:
WHEREAS, pursuant to (i) a Securities Purchase Agreement, dated as
of February 18, 1999, as amended, by and among Wyndham International, Inc. (the
"Company"), Patriot American Hospitality, Inc. ("Patriot"), Wyndham
International Operating Partnership, L.P., Patriot American Hospitality
Partnership, L.P. and the persons identified therein as Investors (the "Original
Investors") and (ii) Assignment and Assumption Agreements by and among the
Company, Patriot and the Stockholders, the Stockholders will purchase shares of
Series B Convertible Preferred Stock (the "Shares") of the Company; and
WHEREAS, the parties hereto deem it in their best interests to enter
into this Agreement in order to govern certain of their rights, duties and
obligations in connection with their investment in the Company; and
WHEREAS, the parties hereto also desire to restrict the sale,
assignment, transfer, encumbrance or other disposition of their securities of
the Company and to provide for certain rights and obligations with respect
thereto as hereinafter provided.
NOW, THEREFORE, in consideration of the mutual agreements and
understandings set forth herein, the parties hereto hereby agree as follows:
Article 1. Certain Definitions
As used in this Agreement, the following terms shall have the
following respective meanings:
"Affiliate" means, as to any Person, (a) any Person which directly
or indirectly controls, is controlled by, or is under common control with such
Person, (b) any Person who is a director, officer, partner or principal of such
Person or of any Person which directly or indirectly controls, is controlled by,
or is under common control with such Person, and (c) any individual who is a
member of the immediate family of any Person described in clause (a) or clause
(b) above. For purposes of this definition, "control" of a Person shall mean the
power, direct or indirect, (i) to vote or direct the voting of 5% or more of the
Voting Stock of such Person or (ii) to direct or cause the direction of the
management and policies of such Person whether by ownership of Capital Stock, by
contract or otherwise.
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"Agreement" means this Agreement as in effect on the date hereof and
as hereafter from time to time amended, modified or supplemented in accordance
with the terms hereof.
"Apollo Investors" means Apollo Real Estate Investment Fund IV,
L.P., Apollo Investment Fund IV, L.P., Strategic Real Estate Investments I, LLC
and their respective Permitted Assignees and Permitted Third Party Transferees.
"Apollo Stockholder" means, collectively, Apollo Management IV, L.P.
and Apollo Real Estate Management IV, L.P.
"Beacon Affiliate" means any director or officer, or member of the
immediate family of a director or officer, of any entity that is included within
the definition of "Beacon Stockholder" in office at the time of the relevant
determination, and any corporation, partnership, limited liability company,
trust or other entity that is controlled by, or the equity interests of which
are owned by, any of the foregoing individuals.
"Beacon Stockholder" means, collectively, Beacon Capital Partners,
L.P., Beacon Capital Partners, Inc., BCP Voting, Inc., as voting trustee of the
First Beacon Voting Trust, and any other entity that is an Affiliate of Beacon
Capital Partners, L.P. that becomes a trustee of the First Beacon Voting Trust
or the Second Beacon Voting Trust, if formed, and any successors thereto.
"Beacon Voting Trust" means, collectively, the First Beacon Voting
Trust and the Second Beacon Voting Trust.
"Beacon Voting Trust Agreement" means, collectively, (i) the Voting
Trust Agreement, dated as of June 8, 1999, as amended, by and between Beacon
Capital Partners, L.P., as the initial beneficiary of the First Beacon Voting
Trust, and BCP Voting, Inc, as trustee of the First Beacon Voting Trust, an
accurate copy of which has been provided to the Lead Stockholders, and (ii) if
the Second Beacon Voting Trust is formed, the Voting Trust Agreement to be
entered into by and between Beacon Capital Partners, L.P., as the initial
beneficiary of the Second Beacon Voting Trust, and the trustee of the Second
Beacon Voting Trust; provided, that (x) the proposed form of the Voting Trust
Agreement for the Second Beacon Voting Trust and the proposed form of any
amendment to the Voting Trust Agreement for the First Beacon Voting Trust or the
Second Beacon Voting Trust shall be provided to the Lead Stockholders for their
review at least ten days in advance of the earlier of its execution or
distribution and (y) the Lead Stockholders shall have approved in advance of the
earlier of its execution or distribution any provision of the Second Beacon
Voting Trust or any amendment to the Voting Trust Agreement for the First Beacon
Voting Trust or the Second Beacon Voting Trust that alters or is otherwise
inconsistent with the definition of "Permitted Voting Trust Transfer" contained
in this Agreement or any other provision affecting those matters addressed in
this Agreement.
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"Board of Directors" means the Board of Directors of the Company as
from time to time hereafter constituted.
"By-Laws" means the By-Laws of the Company in effect on the date
hereof and as hereafter further amended.
"Capital Stock" means and includes (i) any and all shares,
interests, participations or other equivalents of or interests in (however
designated) corporate stock of any Person, including, without limitation, shares
of preferred or preference stock, (ii) all partnership interests (whether
general or limited) in any Person which is a partnership, (iii) all membership
interests or limited liability company interests in any limited liability
company and (iv) all equity or ownership interests in any Person of any other
type.
"Certificate of Incorporation" means the Certificate of
Incorporation of the Company as in effect on the date hereof and as hereafter
amended, modified, supplemented or restated.
"Class A Common Stock" means the Class A common stock, par value
$0.01 per share, of the Company.
"Class B Common Stock" means the Class B common stock, par value
$0.01 per share, of the Company.
"Common Stock" means the Class A Common Stock and Class B Common
Stock or, if the Company's common stock ceases to be so designated, the common
stock, par value $0.01 per share, of the Company.
"Company" means Wyndham International, Inc., a Delaware corporation,
and any successor thereto.
"Equity Securities" means the Common Stock and Preferred Stock and
any other securities convertible into, exercisable for or exchangeable with
Common Stock or Preferred Stock and other equity security issued by the Company.
"First Beacon Voting Trust" means the Beacon Capital Partners, L.P.
Voting Trust.
"Lead Stockholders" means the Apollo Stockholder and the Xxx
Stockholder; provided that if either of the Lead Stockholders and its respective
Affiliates cease to collectively beneficially own at least 10% of the shares of
Common Stock (including shares of Common Stock issuable upon conversion of
securities convertible, exchangeable or exercisable for shares of Common Stock)
beneficially owned by such Lead Stockholder and its Affiliates immediately
following the closing of the transactions
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contemplated by the Securities Purchase Agreement, then such Lead Stockholder
shall cease to be a Lead Stockholder.
"Xxx Director Percentage" means (i) the total number of shares of
Common Stock (including, without duplication, shares of Common Stock issuable
upon conversion of securities convertible, exchangeable or exercisable for
shares of Common Stock) beneficially owned by the Xxx Investors (excluding open
market purchases) divided by (ii) the total number of shares of Common Stock
(including, without duplication, shares of Common Stock issuable upon conversion
of securities convertible, exchangeable or exercisable for shares of Common
Stock) beneficially owned by the Apollo Investors and the Xxx Investors
(excluding open market purchases).
"Xxx Investors" means Xxxxxx X. Xxx Equity Fund IV, L.P., Xxxxxx X.
Xxx Foreign Fund IV, L.P., Xxxxxx X. Xxx Charitable Investment L.P., THL-CCI
Limited Partnership, the Beacon Stockholder and their respective Permitted
Assignees and Permitted Third Party Transferees.
"Xxx Stockholder" means THL Equity Advisors IV, LLC, in its capacity
as general partner of Xxxxxx X. Xxx Equity Fund IV, L.P.
"Permitted Assignee" shall have the same meaning as set forth in the
Securities Purchase Agreement.
"Permitted Beacon Voting Trust Transfer" means a transfer of Shares
through a termination of the Beacon Voting Trust on or after the second
anniversary of the date of this Agreement that complies with each of the
following requirements: (i) the termination shall be made pursuant to Section
15(a)(iv) of the Beacon Voting Trust Agreement at the request of beneficiaries
of the Beacon Voting Trust that shall not include the Beacon Stockholder or any
Beacon Affiliate, such termination shall not have been directly or indirectly
proposed, solicited or encouraged by the Beacon Stockholder (other than the
required action as trustee under such Section 15(a)(iv)) or by any Beacon
Affiliate and the Beacon Stockholder and the Beacon Affiliates shall have used
their reasonable efforts to discourage such termination; (ii) the Shares so
transferred shall be converted into shares of Series A Preferred Stock; (iii)
any shares of Series A Preferred Stock to be received in connection with such
termination by the Beacon Stockholder or by any Beacon Affiliate shall remain
subject to the transfer, conversion and other restrictions of this Agreement and
the Beacon Stockholder and any such Beacon Affiliate shall execute any agreement
required under Section 3.3 of this Agreement to evidence the foregoing; (iv)
each of the transferees of such Shares shall have acknowledged in form and
substance satisfactory to the Lead Stockholders such transferee's agreement to
be bound by Section 5.1(b) of this Agreement; and (v) such termination and the
transfer of Shares made in connection therewith shall be made in compliance with
all applicable law.
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"Permitted Third Party Transferee" shall have the same meaning as
set forth in the Securities Purchase Agreement.
"Person" means an individual or a corporation, association,
partnership, limited liability company, joint venture, organization, business,
trust or any other entity or organization, including a government or any
subdivision or agency thereof.
"Preferred Stock" means the Series A Preferred Stock and the Series
B Preferred Stock.
"Pro Rata Portion" means, with reference to any Stockholder at any
time, a fraction, the numerator of which is the number of votes represented by
the Shares and the Class B Common Stock then issued and outstanding and held by
such Stockholder, and the denominator of which is the aggregate number of votes
represented by the Shares and the Class B Common Stock then issued and
outstanding and held by the Stockholders taken together.
"Registrable Securities" means (i) any shares of Class B Common
Stock issued or issuable upon conversion of any of the Shares, (ii) any shares
of Series A Preferred Stock issued or issuable upon conversion of the Shares,
(iii) any shares of Class A Common Stock issued or issuable upon conversion of
the Series A Preferred Stock described in clause (ii) above, and (iv) any
securities issued or issuable with respect to any Series A Preferred Stock,
Series B Preferred Stock, Class A Common Stock or Class B Common Stock described
in clauses (i), (ii) and (iii) above by way of stock dividend or stock split or
in connection with a combination of shares, recapitalization, merger,
consolidation, reorganization or otherwise.
"Registration Rights Agreement" shall mean the Registration Rights
Agreement, dated as of February 18, 1999, by and among the Company and the
persons listed on the signature pages thereof.
"Restated Certificate of Incorporation" means the Restated
Certificate of Incorporation of the Company, as proposed to be filed with the
Secretary of State of the State of Delaware on the date of the Closing under the
Securities Purchase Agreement.
"Required Investor Director Percentage" means 1.0 divided by the
total number of Class B directors of the Company that may be elected pursuant to
Section V(D) of the Restated Certificate of Incorporation.
"Second Beacon Voting Trust" means, collectively, the Beacon Capital
Partners, L.P. Voting Trust II and the Beacon Capital Partners, L.P. Voting
Trust III, in each case if formed.
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"Securities Act" means, as of any date, the Securities Act of 1933,
as amended, or any similar Federal statute then in effect and superseding such
act, and any reference to a particular section thereof shall include a reference
to the comparable section, if any, of any such similar Federal statute, and the
rules and regulations thereunder.
"Series A Preferred Stock" means the Series A Convertible Preferred
Stock, par value $0.01 per share, of the Company.
"Series B Preferred Stock" means the Series B Convertible Preferred
Stock, par value $0.01 per share, of the Company.
"Shares" shall have the meaning set forth in the preamble of this
Agreement; provided, however, that unless the context otherwise requires,
references in this Agreement to the "Shares" shall be deemed to include
additional shares of Series B Preferred Stock that are issued pursuant to the
Certificate of Designation for such Preferred Stock.
"Stockholders" shall mean (i) the Stockholders named on the
signature page hereto and (ii) each Third Party Transferee who becomes a party
to or bound by the provisions of this Agreement in accordance with the terms
hereof, in each case for so long as such person continues to hold Equity
Securities in the Company.
"Third Party Transferee" has the meaning specified in Section 3.2.
"Voting Stock" means Capital Stock of any class or classes, the
holders of which are ordinarily, in the absence of contingencies, entitled to
vote in the election of directors (or Persons performing similar functions).
Article 2. Board of Directors
Section 2.1. Board of Directors. (a) For so long as this Agreement
is in effect, each of the Stockholders shall vote all of the Voting Stock owned
or held of record by such Stockholder so as to elect, and to continue in office,
each of the directors of the Company designated by the Lead Stockholders. So
long as the Stockholders are entitled to elect eight Class B directors pursuant
to the Restated Certificate of Incorporation, the Apollo Stockholder shall have
the right to designate four Class B directors of the Company and the Xxx
Stockholder shall have the right to designate four Class B directors of the
Company. In the event that the number of Class B directors of the Company that
the Stockholders are entitled to elect is reduced to below eight pursuant to
Section V(D) of the Restated Certificate of Incorporation, (i) the number of
Class B directors that the Xxx Stockholder shall be entitled to designate shall
be equal to the Xxx Director Percentage divided by the Required Investor
Director Percentage (rounded up or down to the nearest integer) and (ii) the
number of Class B directors that the Apollo Stockholder
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shall be entitled to designate shall be equal to the total number of Class B
directors of the Company that the Stockholders are entitled to elect pursuant to
Section V(D) of the Restated Certificate of Incorporation minus the number of
Class B directors that the Xxx Stockholder is entitled to designate pursuant to
this Section 2.1(a).
(b) If either of the Lead Stockholders shall notify the other
Stockholders of its desire to remove, with or without cause, any director of the
Company previously designated by it, each Stockholder shall vote all of the
shares of Voting Stock owned or held by such Stockholder and take all other
necessary actions to cause the removal of any director designated by such Lead
Stockholder pursuant to Section 2.1(a).
(c) In the event that any designee of either Lead Stockholder shall
for any reason cease to serve as a member of the Board of Directors during his
term of office, the resulting vacancy on the Board of Directors will be filled
by a representative designated by such Lead Stockholder.
Article 3. Restrictions on Transfer
Section 3.1. Restrictions on Transfer.
(a) Each Stockholder agrees that for a period of five years
following the date of this Agreement, such Stockholder will not, directly or
indirectly, offer, sell, transfer, assign or otherwise dispose of (or make any
exchange, gift, assignment or pledge of) (collectively, for purposes of Articles
3 and 4 only, a "transfer") any of its Shares, any shares of Common Stock or
Preferred Stock issuable upon conversion of Shares, or options, warrants or
rights to subscribe for or purchase Shares, Preferred Stock or Common Stock that
may be issued hereafter to such Stockholder, except as provided in this Article
3. In addition to the other restrictions contained in this Article 3, each
Stockholder agrees that it will not, directly or indirectly, transfer any of its
Shares or any shares of Common Stock or Preferred Stock issuable upon conversion
of Shares except as permitted under the Securities Act and other applicable
securities laws.
(b) Any attempt by any Stockholder to transfer any Shares and any
Common Stock or Preferred Stock issuable upon conversion of the Shares not in
compliance with this Agreement shall be null and void. Without limiting the
foregoing, it is expressly understood and agreed that any transfer of Shares by
the Beacon Voting Trust that is not the Permitted Beacon Voting Trust Transfer
or a transfer otherwise expressly permitted under this Agreement shall be null
and void and not be recorded on the transfer books of the Company.
Section 3.2 Exceptions to Restrictions. The provisions of Section
3.1 shall not apply to any of the following transfers:
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(a) Any transfer approved by each of the Lead Stockholders.
(b) Any transfer from any Stockholder to one or more of its
respective Permitted Assignees.
(c) Any transfer of Shares, or Common Stock or Preferred Stock
issuable upon conversion of such Shares, in accordance with Article 4 or 5
hereof.
(d) Any bona fide pledge of the Shares, or Common Stock or Preferred
Stock issuable upon conversion of such Shares, to a bank, financial institution
or other lender.
(e) The Permitted Beacon Voting Trust Transfer.
The exceptions in clauses (a), (b) or (d) above are subject to the
condition that each such transferee referred to therein (each a "Third Party
Transferee") execute (or, in the case of clause (d) above, that the pledging
Stockholder use its reasonable efforts to cause the pledgee referred to therein
to execute prior to any foreclosure of the shares so pledged) the agreement
referred to in Section 3.3 hereof. The provisions of this Agreement shall be
applied to the Shares, including the shares of Common Stock or Preferred Stock
issuable upon conversion of Shares, acquired by any Third Party Transferee of a
Stockholder in the same manner and to the same extent as such provisions were
applicable to such Shares, or Common Stock or Preferred Stock issuable upon
conversion of Shares, in the hands of such Stockholder. Any reference in this
Agreement to the Stockholders shall be deemed to include each Stockholder and
its respective Third Party Transferees.
No transfer of any Shares, or shares of Common Stock or Preferred
Stock issuable upon conversion of Shares, to a Third Party Transferee shall be
effective unless such transfer is made (i) pursuant to an effective registration
statement under the Securities Act and is qualified under applicable state
securities or blue sky laws or (ii) without registration under the Securities
Act and qualification under applicable state securities or blue sky laws, as a
result of the availability of an exemption from registration and qualification
under such laws, and such Stockholder shall have furnished to the Lead
Stockholders a certificate to that effect; provided, however, that no such
certificate or opinion of counsel shall be required in connection with a
transfer of shares of Common Stock pursuant to Sections 4.1 or 4.2 hereof.
Section 3.3 Binding Effect on Transferees. The obligations of a
party hereto shall be binding upon any transferee to whom Shares or Common Stock
or Preferred Stock issuable upon conversion of such Shares are transferred by
such party, whether or not such transfer is permitted under the terms of this
Agreement; provided, that the foregoing shall not apply to (a) transferees
(other than the Beacon Affiliates) pursuant to the Permitted Beacon Voting Trust
Transfer, (b) transferees pursuant to transfers permitted under Section 3.2(c)
or (c) transferees for which the transfer occurs following
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the fifth anniversary of the date of this Agreement (transferees permitted under
clause (a), (b) or (c), collectively, the "Exempted Transferees"). Prior to
consummation of any such transfer other than to an Exempted Transferee, such
party shall cause the transferee to execute an agreement in form and substance
reasonably satisfactory to the Lead Stockholders, providing that such transferee
shall be bound by and shall fully comply with the terms of this Agreement.
Section 3.4. Notifications Regarding Transfers. To the extent that
any Stockholder proposes a transfer pursuant to Section 3.2, such Stockholder
shall provide notice to the Lead Stockholders at least ten Business Days prior
to the proposed transfer date of the number of Shares proposed to be
transferred. Not less that two Business Days prior to a proposed transfer date
requiring the approval of the Lead Stockholders, the Lead Stockholders shall
notify such Stockholder of whether the transfer has been approved, it being
agreed and understood that the Permitted Beacon Voting Trust Transfer shall not
require such approval.
Section 3.5. Restrictions on Conversion. Each Stockholder
understands and agrees that, for a period of five years following the date of
this Agreement, such Stockholder will not convert any Shares into shares of
Common Stock or Series A Preferred Stock without the consent of each of the Lead
Stockholders, except in connection with (i) an exercise of such Stockholder's
rights under Section 4.1 in connection with a sale of Shares by one of the Lead
Stockholders, (ii) a sale of Registrable Securities pursuant to Section 5.1 or
(iii) the Permitted Beacon Voting Trust Transfer or a subsequent conversion of
shares of Series A Preferred Stock received thereunder (other than by a Beacon
Affiliate).
Article 4. Tag-Along Rights; Drag-Along Rights
Section 4.1. Tag-Along Rights.
(a) Notwithstanding anything in this Agreement to the contrary,
except in the case of (i) transfers by the Stockholders to a Third Party
Transferee referred to in Section 3.2(b), (c), (d) and (e) hereof, (ii)
transactions where rights are exercised pursuant to Section 4.2 hereof and (iii)
sales pursuant to Article 5 hereof or in connection with a sale pursuant to Rule
144 under the Securities Act of 1933, each Stockholder shall refrain from
effecting any transfer of Shares, Series A Preferred Stock or Class B Common
Stock unless, prior to the consummation thereof, the other Stockholders shall
have been afforded the opportunity to join in such transfer on a pro rata basis,
as provided in this Section 4.1 (each such Stockholder, a "Tag-Along Person").
(b) Prior to consummation of such proposed transfer, the Stockholder
proposing a transfer shall cause the person or group that proposes to acquire
such shares (the "Proposed Purchaser") to offer in writing (the "Tag-Along
Offer") to purchase
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Shares, Series A Preferred Stock or Class B Common Stock owned by the Tag-Along
Person, such that the number of Shares, Series A Preferred Stock or Class B
Common Stock so offered to be purchased from the Tag-Along Person shall be equal
to the product obtained by multiplying the aggregate number of Shares, Series A
Preferred Stock or Class B Common Stock proposed to be purchased by the Proposed
Purchaser by such Tag-Along Person's Pro Rata Portion. If the Purchase Offer is
accepted by any Tag-Along Person, then the number of Shares, Series A Preferred
Stock or Class B Common Stock to be sold to the Proposed Purchaser by the
Stockholder proposing the transfer, shall be reduced by the aggregate number of
Shares, Series A Preferred Stock or Class B Common Stock to be purchased by the
Proposed Purchaser from such Tag-Along Person pursuant thereto. Such purchase
shall be made on the same terms and conditions (including timing of receipt of
consideration) as the Proposed Purchaser shall have offered to purchase Shares,
Series A Preferred Stock or Class B Common Stock to be sold by the Stockholder
who proposed the transfer (net, in the case of any options, warrants or rights,
of any amounts required to be paid by the holder upon exercise thereof). The
Tag-Along Person shall have 20 days from the date of receipt of the Purchase
Offer during which to accept such Purchase Offer, and the closing of such
purchase shall occur within 30 days after such acceptance or at such other time
as the Tag-Along Person and the Proposed Purchaser may agree.
Section 4.2. Drag-Along Rights.
(a) If both of the Lead Stockholders propose a transfer in
connection with a sale or exchange, whether directly or pursuant to a merger,
consolidation or otherwise (a "Drag-Along Sale"), the Lead Stockholders may
require all other Stockholders to sell all Shares proposed to be sold therein
("Drag-Along Rights") then held by every Stockholder, for the same consideration
and otherwise on the same terms and conditions (including timing of receipt of
consideration) as the sale by Lead Stockholders; provided, however, that if
either of the Lead Stockholders and its respective Affiliates cease to
collectively beneficially own at least 20% of the shares of Common Stock
(including shares of Common Stock issuable upon conversion of securities
convertible, exchangeable or exercisable for shares of Common Stock)
beneficially owned by them immediately following the closing of the transactions
contemplated by the Securities Purchase Agreement, Stockholders collectively
holding more than 50% of the voting power represented by the outstanding Shares
and shares of Class B Common Stock (the "Majority Stockholders") shall have the
ability to exercise the Drag-Along Rights described in this Section 4.2.
(b) The Lead Stockholders or the Majority Stockholders, as
applicable, shall provide written notice of such Drag-Along Sale to the other
Stockholders (a "Drag-Along Notice") not later than the 15th day prior to the
proposed Drag-Along Sale. The Drag-Along Notice shall identify the transferee,
the number of Shares and/or shares of Class B Common Stock to be transferred,
the consideration for which a transfer is proposed to be made (the "Drag-Along
Sale Price(s)") and all other material terms and conditions of the
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Drag-Along Sale. Subject to Section 4.2(d), each Stockholder shall be required
to participate in the Drag-Along Sale on the terms and conditions set forth in
the Drag-Along Notice and to tender all its Shares and shares of Class B Common
Stock as set forth below. The price(s) payable in such transfer shall be the
Drag-Along Sale Price(s). Not later than the 10th day following the date of the
Drag-Along Notice (the "Drag-Along Notice Period"), each of the Stockholders
shall deliver to a representative of Lead Stockholders or the Majority
Stockholders, as applicable, designated in the Drag-Along Notice certificates
representing all the Shares and shares of Class B Common Stock beneficially
owned and held by such Stockholder, duly endorsed, together with all other
documents required to be executed in connection with such Drag-Along Sale, or if
such delivery is not permitted by applicable law, an unconditional agreement to
deliver such shares pursuant to this Section 4.2 at the closing for such
Drag-Along Sale against delivery to such Stockholder of the consideration
therefor.
(c) The Lead Stockholders or the Majority Stockholders, as
applicable, shall have a period of 90 days from the date of receipt of the
Drag-Along Notice to consummate the Drag-Along Sale on the terms and conditions
set forth in such Drag-Along Sale Notice. If the Drag-Along Sale shall not have
been consummated during such period, the Lead Stockholders or the Majority
Stockholders, as applicable, shall return to each of the Stockholders all
certificates or other evidence of title and ownership representing shares that
such Stockholders delivered for transfer pursuant hereto, together with any
documents in the possession of the Lead Stockholders or the Majority
Stockholders, as applicable, executed by the other Stockholders in connection
with such proposed transfer, and all the restrictions on transfer contained in
this Agreement or otherwise applicable at such time with respect to shares owned
by the Stockholders shall again be in effect.
(d) Concurrently with the consummation of the transfer of shares
pursuant to this Section 4.2, the Lead Stockholders or the Majority
Stockholders, as applicable, shall give notice thereof to all Stockholders,
shall remit to each of the Stockholders who have surrendered their certificates
or other evidence of title and ownership the total consideration (by bank or
certified check) for the shares transferred pursuant hereto and shall furnish
such other evidence of the completion and time of completion of such transfer
and the terms thereof as may be reasonably requested by such Stockholders.
Article 5. Registration Rights
Section 5.1. Registration Rights.
(a) Each of the Stockholders shall be entitled to the benefits of,
and shall be bound by the obligations of, the Registration Rights Agreement with
respect to any Registrable Securities held by such Stockholder as if the
Stockholder were a party to the Registration Rights Agreement; provided,
however, that (i) any request for a Required
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Registration (as such term is defined in the Registration Rights Agreement)
pursuant to Section 2.1(a) of the Registration Rights Agreement made on or prior
to the third anniversary of the date of this Agreement shall only be made by or
with the consent of both of the Lead Stockholders, (ii) any request for a
Required Registration pursuant to Section 2.1(a) of the Registration Rights
Agreement made during the period following the third anniversary of the date of
this Agreement through the fifth anniversary of the date of this Agreement shall
only be made by the Apollo Stockholder, the Xxx Stockholder or the Beacon
Stockholder and (iii) any request for a Shelf (as such term is defined in the
Registration Rights Agreement) pursuant to Section 2.1(a) of the Registration
Rights Agreement made on or prior to the fifth anniversary of the date of this
Agreement shall only be made by or with the consent of both of the Lead
Stockholders. Notwithstanding the foregoing, each of the Stockholders shall be
entitled to exercise its rights to include its Registrable Securities in a
registration effected by the Company pursuant to Section 2.1(b) of the
Registration Rights Agreement if such registration is a Required Registration
made in accordance with the immediately preceding sentence or if either Lead
Stockholder is including Registrable Securities in such registration. Each of
the Lead Stockholders agrees for the benefit of the other Lead Stockholder that
it will not, without the approval of the other Lead Stockholder, include its
Registrable Securities in a registration effected by the Company pursuant to
Section 2.1(b) of the Registration Rights Agreement during the three year period
following the date of this Agreement.
(b) Notwithstanding anything else in this Agreement or in the
Registration Rights Agreement to the contrary, in the event that the Permitted
Beacon Voting Trust Transfer occurs, none of the shares of Preferred Stock or
Common Stock that are received by the beneficiaries of the Beacon Voting Trust
in connection therewith or are issued or issuable upon conversion of such shares
or shares received upon such conversion shall be Registrable Securities, other
than those shares that are held by the Beacon Stockholder or by a Beacon
Affiliate and remain subject to the transfer, conversion and other restrictions
of this Agreement. The Beacon Stockholder, in its capacities as the trustee and
initial beneficiary of the First Beacon Voting Trust and the Second Beacon
Voting Trust, hereby consents and agrees to be bound by the provisions of this
Section 5.1(b) on behalf of itself and all future beneficiaries of the Beacon
Voting Trust and acknowledges and agrees that it has the sole responsibility to
notify all such beneficiaries or transferees of Shares owned by the Beacon
Voting Trust of the terms of this Section 5.1(b) and the fact that they are
bound thereby.
Article 6. Miscellaneous
Section 6.1. Further Actions; Cooperation. Each of the Stockholders
agrees to use its reasonable efforts to take, or cause to be taken, all actions
and to do, or cause to be done, and to assist and cooperate with the other
parties in doing, all things necessary, proper or advisable in connection with
the transactions contemplated by this Agreement. Without limiting the generality
of the foregoing, each of the Stockholders (i)
12
acknowledges that the Stockholders will prepare and file with the Securities and
Exchange Commission filings under the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder (the "Exchange
Act"), including under Section 13(d) of the Exchange Act, relating to their
beneficial ownership of the Securities and (ii) agrees to use its reasonable
efforts to assist and cooperate with the other parties in promptly preparing,
reviewing and executing any such filings under the Exchange Act, including any
amendments thereto.
Section 6.2. Successors and Assigns. Except as otherwise provided
herein, all the terms and provisions of this Agreement shall be binding upon,
shall inure to the benefit of and shall be enforceable by the respective
successors and assigns of the parties hereto. No Stockholder may assign any of
its rights hereunder to any Person other than a transferee that has complied in
all respects with the requirements of this Agreement (including, without
limitation, Section 3.4 hereof). If any transferee of any Stockholder shall
acquire any Shares or Common Stock issuable upon conversion of such Shares, in
any manner, whether by operation of law or otherwise, such shares shall be held
subject to all of the terms of this Agreement, and by taking and holding such
shares such Person shall be entitled to receive the benefits of and be
conclusively deemed to have agreed to be bound by and to comply with all of the
terms and provisions of this Agreement.
Section 6.3. Representatives. Each of the Stockholders hereby
designates and appoints (and each Third Party Transferee of each such
Stockholders is hereby deemed to have so designated and appointed) the Lead
Stockholders to serve as the representatives of each such Stockholder to
administer and make determinations as to matters arising or contemplated by the
Securities Purchase Agreement and related documentation, including without
limitation indemnification obligations, disputes and other rights and
obligations. Each of the Stockholders hereby agrees and acknowledges that the
Lead Stockholders shall be the only persons authorized to take any action so
required, authorized or contemplated by the Securities Purchase Agreement by
each such person. Each such person hereby authorizes (and each such Third Party
Transferee shall be deemed to have authorized) the other parties hereto to
disregard any notice or other action taken by such person pursuant to the
Securities Purchase Agreement except for the Lead Stockholders. The other
parties hereto are and will be entitled to rely on any action so taken by the
Lead Stockholders.
Section 6.4. Amendment; Modification; Waiver. No provision of this
Agreement may be amended, modified or waived except by an instrument in writing
executed by the Majority Stockholders at the time of such proposed amendment,
modification or waiver; provided, however, that, so long as either of the Lead
Stockholders and their respective Affiliates beneficially own at least 20% of
the shares of Common Stock (including shares of Common Stock issuable upon
conversion of securities convertible, exchangeable or exercisable for shares of
Common Stock) initially owned by such Stockholders at the closing of the
transactions contemplated by the
13
Securities Purchase Agreement, this Agreement may not be amended or modified
without such Lead Stockholder's consent.
Section 6.5. Notices. All notices and other communications provided
for hereunder shall be in writing by hand delivery, telex, telecopier, or any
courier guaranteeing overnight delivery (i) if to the Stockholders as of the
date hereof, the address set forth next to the Stockholder's name on the
signature pages hereof, with a copy to Xxxxxxx X. Xxxx, Esq., telecopier number
(000) 000-0000, and (ii) with respect to each Stockholder who becomes such after
the date hereof, the address of such Stockholder in the stock records of the
Company. All such communications shall be deemed to have been given or made when
so delivered by hand or sent by telecopy, or three business days after being so
mailed.
Section 6.6. Entire Agreement: Governing Law.
(a) This Agreement and the other writings referred to herein or
delivered pursuant hereto which form a part hereof contain the entire agreement
among the parties hereto with respect to the subject transactions contemplated
hereby and supersede all prior oral and written agreements and memoranda and
undertakings among the parties hereto with regard to this subject matter.
(b) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE (WITHOUT GIVING EFFECT TO THE CHOICE OF
LAW PRINCIPLES THEREOF).
Section 6.7. Injunctive Relief. The Stockholders acknowledge and
agree that a violation of any of the terms of this Agreement will cause the
Stockholders irreparable injury for which an adequate remedy at law is not
available. Therefore, the Stockholders agree that each Stockholder shall be
entitled to, an injunction, restraining order or other equitable relief from any
court of competent jurisdiction, restraining any Stockholder from committing any
violations of the provisions of this Agreement.
Section 6.8. Headings. The section and paragraph headings contained
in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement.
Section 6.9. Recapitalizations, Exchanges, Etc. Affecting the Shares
of Common Stock; New Issuances. The provisions of this Agreement shall apply, to
the full extent set forth herein with respect to the Shares and Common Stock and
Preferred Stock issuable upon conversion of such Shares and to any and all
equity or debt securities of the Company or any successor or assign of the
Company (whether by merger, consolidation, sale of assets, or otherwise) which
may be issued in respect of, in exchange for, or in substitution of, such equity
or debt securities and shall be appropriately adjusted for any
14
stock dividends, splits, reverse splits, combinations, reclassifications,
recapitalizations, reorganizations and the like occurring after the date hereof.
Section 6.10. Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
Section 6.11. Jurisdiction; Forum. With respect to any suit, action
or proceeding ("Proceeding") arising out of or relating to this Agreement, each
of the parties hereto hereby irrevocably:
(a) submits to the exclusive jurisdiction of the United States
District Court for the Southern District of New York, the United States District
Court for the District of Delaware, or any state court located in the State of
Delaware, County of Newcastle (the "Selected Courts") and waives any objection
to venue being laid in the Selected Courts whether based on the grounds of forum
non conveniens or otherwise;
(b) consents to service of process in any Proceeding by the mailing
of copies thereof by registered or certified mail, postage prepaid, or by
recognized international express carrier or delivery service, to such party at
its respective address referred to in Section 6.4 hereof; provided, however,
that nothing herein shall affect the right of any party hereto to serve process
in any other manner permitted by law; and
(c) waives, to the fullest extent permitted by law, any right it may
have to a trial by jury in any Proceeding.
Section 6.12. Termination. Upon the mutual consent of all of the
parties hereto or at such earlier time as each of the Lead Stockholders and its
respective Affiliates ceases to collectively beneficially own at least 10% of
the shares of Common Stock (including shares of Common Stock issuable upon
conversion of securities convertible, exchangeable or exercisable for shares of
Common Stock) beneficially owned by such Lead Stockholder and its Affiliates
immediately following the closing of the transactions contemplated by the
Securities Purchase Agreement, this Agreement shall terminate and be of no
further force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.
APOLLO REAL ESTATE
INVESTMENT FUND IV, L.P.
By: Apollo Real Estate Advisors IV, L.P.,
its General Partner
By: Apollo Real Estate Capital
Advisors IV, Inc., its General Partner
By:
-------------------------------------------------
Name:
Title:
Address: c/o Apollo Real Estate Management IV,
L.P.
1301 Avenue of the Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
APOLLO INVESTMENT FUND IV, L.P.
By: Apollo Advisors, IV, L.P., its General
Partner
By: Apollo Capital Management IV, Inc.,
its General Partner
By:
-------------------------------------------------
Name:
Title:
Address: c/o Apollo Real Estate Management IV,
L.P.
1301 Avenue of the Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
16
XXXXXX X. XXX EQUITY FUND IV, L.P.
By: THL Equity Advisors IV, LLC
By:
-------------------------------------------------
Name:
Title:
Address: 00 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxx, Xxxxxxxxxxxxx 00000
XXXXXX X. XXX FOREIGN FUND IV, L.P.
By: THL Equity Advisors IV, LLC
By:
-------------------------------------------------
Name:
Title:
Address: 00 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxx, Xxxxxxxxxxxxx 00000
XXXXXX X. XXX CHARITABLE
INVESTMENT L.P.
By: THL Equity Advisors IV, LLC
By:
-------------------------------------------------
Name:
Title:
Address: 00 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxx, Xxxxxxxxxxxxx 00000
THL-CCI LIMITED PARTNERSHIP
By: THL Equity Advisors IV, LLC
By:
-------------------------------------------------
Name:
Title:
Address: 00 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxx, Xxxxxxxxxxxxx 00000
BEACON CAPITAL PARTNERS, L.P.
By: Beacon Capital Partners, Inc., its General
Partner
By:
-------------------------------------------------
Name:
Title:
Address: 0 Xxxxxxx Xxxxxx
00xx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
BCP VOTING, INC., as Trustee for the Beacon
Capital Partners, L.P. Voting Trust
By:
-------------------------------------------------
Name:
Title:
Address: 0 Xxxxxxx Xxxxxx
00xx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
STRATEGIC REAL ESTATE INVESTMENTS I, L.L.C.
By:
-------------------------------------------------
Name:
Title:
Address: 0000 Xxxxxxxxxx Xxxxxx
Xxxxx 000
Xxxxxxxx, Xxxxxxxxxx 00000
AIF/THL PAH, LLC
By:
-------------------------------------------------
Name:
Title:
Address: c/o Apollo Management IV, L.P.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
CHASE EQUITY ASSOCIATES, L.P.
By: Chase Capital Partners, its General Partner
By:
-------------------------------------------------
Name:
Title:
Address: 000 Xxxxxxx Xxxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
CMS DIVERSIFIED PARTNERS, L.P.
By: CMS/DP Associates L.P., a general partner
By: MSPS/DP, Inc., its general partner
By:
---------------------------------------------
Name:
Title:
Address: 0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
By: CMS 1995 Investment Partners, L.P.,
a general partner
By: CMS 1995, Inc., its general partner
By:
---------------------------------------------
Name:
Title:
Address: 0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
CMS CO-INVESTMENT SUBPARTNERSHIP, a Delaware general
partnership
By: CMS Co-Investment Partners, L.P., a Delaware
limited partnership
By: CMS/Co-Investment Associates, L.P., a
Delaware limited partnership
By: CMS/Co-Investment Associates,
L.P., a Delaware limited partnership
By: MSPS/Co-Investment, Inc.,
a Delaware corporation
By:
---------------------------------
Name:
Title:
Address: 0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
By: CMS 1997 Investment Partners, L.P.,
a Delaware limited partnership
By: CMS 1997, Inc., a Delaware
corporation
By:
-------------------------------------
Name:
Title:
Address: 0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
By: CMS Co-Investment Partners I-Q, L.P., a
Delaware limited partnership
By: CMS/Co-Investment Associates, L.P.,
a Delaware limited partnership
By: MSPS/Co-Investment Associates,
Inc., a Delaware corporation
By:
---------------------------------
Name:
Title:
Address: 0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
By: CMS 1997 Investment Partners, L.P.
a Delaware limited partnership
By: CMS 1997, Inc., a Delaware corporation
By:
-------------------------------------
Name:
Title:
Address: 0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
GUAYACAN PRIVATE EQUITY FUND LIMITED PARTNERSHIP
By:
-------------------------------------------------
Name:
Title:
Address: 000 Xxxxxx Xxxxxx
Xxx Xxxx, Xxxxxx Xxxx 00000
CKE ASSOCIATES LLC
By:
-------------------------------------------------
Name:
Title:
Address: 0000 Xxxxxxxx Xxxxxxxxx
Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
PW HOTEL I, LLC
By:
-------------------------------------------------
Name:
Title:
Address: 0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
THE DARTMOUTH TRUST
By:
-------------------------------------------------
Name:
Title:
Address:
THE BONNYBROOK TRUST
By:
-------------------------------------------------
Name:
Title:
Address:
THE FRANKLIN TRUST
By:
-------------------------------------------------
Name:
Title:
Address:
APOLLO OVERSEAS PARTNERS IV, L.P.
By: Apollo Advisors, IV, L.P., its General
Partner
By: Apollo Capital Management IV, Inc.,
its General Partner
By:
-----------------------------------------
Name:
Title:
Address: c/o Apollo Management IV, L.P.
1301 Avenue of the Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
XXXXXX X. XXX FOREIGN FUND IV-B, L.P.
By: THL Equity Advisors IV, LLC
By:
---------------------------------------------
Name:
Title:
Address: 00 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxx, Xxxxxxxxxxxxx 00000
Pursuant to the power of attorney executed by the
persons listed on Schedule I hereto in favor of, and
delivered to, the undersigned
-----------------------------------------------------
Xxxx X. Xxxxxxxx
Attorney-in-fact
Schedule I
----------
State Street Bank & Trust Company as Trustee
of the 1997 Xxxxxx X. Xxx Nominee Trust
Xxxxx X. Xxxxxxx
The 1995 Harkins Gift Trust
Xxxxx X. Xxxxxx
X. Xxxxxx Xxxx
Xxxxxxxx Family Limited Partnership
Xxxxxxx X. XxXxxx
Xxxxxx X. Xxxxxxx
Xxxxxx X. Xxxxx, Xx.
Xxxxx Family Limited Partnership
Xxxx X. Xxxxx
Xxxx X. Xxxxxx
Xxxxxxxx X. Xxxxxx
Xxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxxx
Xxxxx Xxxxxxx
Xxxxx Xxxxx
Xxxxxx X. Xxxxxxxx
Xxxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxx
Xxxxxx X. Xxxxxxx
Xxxxxx Xxxxxx Xxx 1988 Irrevocable Trust
Xxxxxxx Xxxxxxx Xxx
Xxxxxxx X. Xxxxxx as Custodian for Xxxxx Xxx
Xxxxxxx X. Xxxxxx
Xxxxx Xxxxxx
Xxxx X. Xxxxxxxx
Xxxxxx X. Xxxxx
XX. Xxxxxxx Xxxxx