STOCKHOLDER APPROVAL AGREEMENT
STOCKHOLDER APPROVAL AGREEMENT (this "Agreement"), dated as of March 8,
2000, among Travelers General Real Estate Mezzanine Investments II, LLC, a
Delaware limited liability company ("General XXXX XX"), Xxxx X. Xxxxx ("Xxxxx")
and JRK Investment Partnership, a Delaware limited partnership ("JRKLP") (Xxxxx
and JRKLP are collectively referred to herein as the "Stockholders" and
individually referred to herein as a "Stockholder").
Preliminary Statement
A. Capital Trust, Inc., a Maryland corporation ("CT"), and certain of its
affiliates (the "CT Parties") and General XXXX XX and certain of its Affiliates
(the "CIG Parties"), propose to enter into a venture agreement, dated as of the
date hereof (the "Venture Agreement"), pursuant to which, among other things,
the CIG Parties and CT and the CT Parties will co-sponsor, commit to invest
capital in and manage real estate mezzanine investment opportunity funds.
B. The Stockholders own in the aggregate 2,340,132 shares (the "Owned
Shares") of class A common stock, par value $.01 per share, of CT ("CT Common
Stock").
C. As a condition to the CIG Parties' willingness to enter into the Venture
Agreement, the CIG Parties have requested the Stockholders to enter into this
Agreement.
D. Capitalized terms used but not defined herein have the meanings set
forth in the Venture Agreement.
NOW, THEREFORE, to induce the CIG Parties to enter into, and in
consideration of the CIG Parties entering into, the Venture Agreement, and in
consideration of the premises and the representations, warranties and agreements
contained herein, the parties agree as follows:
1. Representations and Warranties of the Stockholders. The Stockholders
hereby, jointly and severally, represent and warrant to General XXXX XX as
follows:
(a) Authority. Each Stockholder has all requisite power and authority
to enter into this Agreement and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by each
Stockholder, and the consummation of the transactions contemplated hereby,
has been duly authorized by all necessary action on the part of each
Stockholder. This Agreement has been duly executed and delivered by each
Stockholder and, assuming the due authorization, execution and
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delivery by General XXXX XX, constitutes a valid and binding obligation of
each Stockholder enforceable in accordance with its terms, except to the
extent enforceability may be limited by bankruptcy, insolvency, moratorium
or other similar laws affecting creditors' rights generally or by general
principles governing the availability of equitable remedies. The execution
and delivery of this Agreement does not, and the consummation of the
transactions contemplated hereby and compliance with the terms hereof will
not, conflict with, or result in any violation of or default (with or
without notice or lapse of time or both) under any provision of any trust
agreement, partnership agreement, loan or credit agreement, note, bond,
mortgage, indenture, lease or other agreement, instrument, permit,
concession, franchise, license, judgment, order, notice, decree, statute,
law, ordinance, rule or regulation applicable to any of the Stockholders or
to any of the property or assets of any of the Stockholders. Except for
consents, approvals, authorizations and filings as may be required under
the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976, as amended (the
"HSR Act"), and the Securities Exchange Act of 1934, as amended ("Exchange
Act"), no consent, approval, order or authorization of, or registration,
declaration or filing with, any court, administrative agency or commission
or other governmental authority or instrumentality, domestic, foreign or
supranational ("Governmental Entity"), is required by or with respect to
any Stockholder in connection with the execution and delivery of this
Agreement or the consummation by any Stockholder of the transactions
contemplated hereby.
(b) The Owned Shares. The Stockholders have good and valid title to
the Owned Shares, free and clear of any claims, liens, encumbrances,
pledges and security interests whatsoever. The Stockholders own no shares
of CT Common Stock or other shares of stock of CT, other than the Owned
Shares. Except for this Agreement, and that certain stockholder voting and
lock-up agreement, dated as of the date hereof, by and among General XXXX
XX, the Stockholders, and the other holders of CT Common Stock named
therein (the "Voting and Lockup Agreement"), no proxies or powers of
attorney have been granted with respect to the Owned Shares and no voting
arrangement (including voting agreement or voting trust) has been entered
into affecting the Owned Shares that will remain in effect after the
execution of this Agreement.
(c) Venture Agreement. The Stockholders understand and acknowledge
that General XXXX XX is entering into the Venture Agreement in reliance
upon the Stockholders' execution and delivery of this Agreement.
2. Representations and Warranties of General XXXX XX. General
XXXX XX hereby represents and warrants to the Stockholders as follows:
(a) Authority. General XXXX XX has all requisite limited liability
company power and authority to enter into this Agreement and to consummate
the transactions contemplated hereby. The execution and delivery of this
Agreement by General XXXX XX, and the consummation of the transactions
contemplated hereby, have been
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duly authorized by all necessary limited liability company action on the
part of General XXXX XX. This Agreement has been duly executed and
delivered by General XXXX XX, assuming the due authorization, execution and
delivery by each of the Stockholders, constitutes a valid and binding
obligation of General XXXX XX enforceable in accordance with its terms,
except to the extent enforceability may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting creditors' rights
generally or by general principles governing the availability of equitable
remedies. The execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated hereby and compliance with
the terms hereof will not, conflict with, or result in any violation of or
default (with or without notice or lapse of time or both) under any
provision of any limited liability company agreement, loan or credit
agreement, note, bond, mortgage, indenture, lease or other agreement,
instrument, permit, concession, franchise, license, judgment, order,
notice, decree, statute, law, ordinance, rule or regulation applicable to
General XXXX XX or to any of the property or assets of any of General XXXX
XX. Except for consents, approvals, authorizations and filings as may be
required under the HSR Act and the Exchange Act, no consent, approval,
order or authorization of, or registration, declaration or filing with, any
Governmental Entity, is required by or with respect to any Stockholder in
connection with the execution and delivery of this Agreement or the
consummation by General XXXX XX of the transactions contemplated hereby.
3. Covenants of the Stockholders. Until the valid termination of the
provisions of this Section 3 pursuant to Section 8, the Stockholders agree as
follows:
(a) At any meeting of stockholders of CT called to vote upon the
Warrant Issuance (as such term is defined in the Venture Agreement) or at
any adjournment thereof or in any other circumstances upon which a vote,
consent or other approval with respect to the Warrant Issuance is sought,
the Stockholders shall vote (or cause to be voted) all shares of CT Common
Stock they own or have voting control over in favor of the Warrant
Issuance.
(b) At any meeting of stockholders of CT or at any adjournment thereof
or in any other circumstances upon which the Stockholders' vote, consent or
other approval is sought, the Stockholders shall vote (or cause to be
voted) all shares of CT Common Stock owned by them or over which they have
voting control against any amendment of CT's charter and amended and
restated bylaws or other proposal or transaction involving CT or any of its
subsidiaries, which amendment or other proposal or transaction would
reasonably be expected in any manner to impede, frustrate, prevent or
nullify CT's ability or obligation to consummate or effect the Warrant
Issuance.
(c) The Stockholders shall not (i) Transfer or Otherwise Dispose (as
hereinafter defined) of, or enter into any agreement or other arrangement
with respect
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to, the Owned Shares to any person, (ii) enter into any voting arrangement,
whether by proxy, voting agreement, voting trust, power of attorney or
otherwise with respect to, the Owned Shares, except as provided in this
Agreement and the Voting and Lockup Agreement or (iii) take any other
action that would reasonably be expected in any way to restrict, limit, or
interfere with the performance of their obligations hereunder.
Notwithstanding the foregoing, nothing contained in this Agreement shall be
deemed to restrict or prohibit the ability of (i) each Stockholder to
transfer shares to immediate family members or trusts or other entities in
connection with estate planning objectives, provided that such transferee
agrees in writing to be bound by the terms of this Agreement as though such
transferee were a Stockholder, and that notice and a copy of such agreement
are provided to General XXXX XX prior to such transfer, (ii) each
Stockholder from pledging up to a number of its shares of CT Common Stock
to any nationally recognized financial institution as collateral for a bona
fide third party loan or from using up to a number of its shares of CT
Common Stock as collateral for a bona fide third party margin loan with a
nationally recognized financial institution or broker/dealer equal to the
maximum number of shares that may be pledged pursuant to the Voting and
Lockup Agreement or (iii) JRKLP to enter into an agreement with the respect
to the voting and Disposition of shares of CT Common Stock between and
among JRKLP and Veqtor Finance Company, L.L.C. and CMH Investment
Partnership, LP (the "JCV Group"), provided that the obligations of JRKLP
in such agreement are expressly subordinate to the obligations of JRKLP
hereunder and there are no parties to such agreement other than the JCV
Group. For purposes of this Agreement, "Transfer or Otherwise Dispose"
means any sale, exchange, redemption, assignment, gift, grant of a security
interest, pledge or other encumbrance, or the creation of any other claim
thereto or any other transfer or disposition whatsoever (including
involuntary sales, exchanges, transfers or other dispositions, and whether
or not for cash or other consideration) affecting the right, title,
interest or possession in, to or of CT Common Stock.
4. Additional Covenants of the Stockholders. Until the valid termination of
the provisions of this Section 4 pursuant to Section 8, the Stockholders agree
as follows:
(a) At any meeting of stockholders of CT called to vote upon any REIT
Tax Matter submitted to a vote pursuant to Section 2.14 of the Venture
Agreement or at any adjournment thereof or in any other circumstances upon
which the Stockholders' vote, consent or other approval with respect to any
such REIT Tax Matter is sought, the Stockholders shall vote (or cause to be
voted) all shares of CT Common Stock they own or have voting control over
at such time in favor of such REIT Tax Matter.
(b) At any meeting of stockholders of CT or at any adjournment thereof
or in any other circumstances upon which the Stockholders' vote, consent or
other approval is sought, the Stockholders shall vote (or cause to be
voted) all shares of CT Common Stock owned by them or over which they have
voting control at such time
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against any amendment of CT's charter and amended and restated bylaws or
other proposal or transaction involving CT or any of its subsidiaries,
which amendment or other proposal or transaction would reasonably be
expected in any manner to impede, frustrate, prevent or nullify CT's
ability or obligation to consummate or effect any REIT Tax Matter.
5. Further Assurances. Each Stockholder will, from time to time, execute
and deliver, or cause to be executed and delivered, such additional or further
transfers, assignments, endorsements, consents and other instruments as General
XXXX XX may reasonably request for the purpose of effectively carrying out the
transactions contemplated by this Agreement and to vest the power to vote such
Stockholder's Owned Shares as contemplated in Section 3.
6. Duty. Notwithstanding the covenants of Stockholders contained in
Sections 3 and 4, any Stockholder who is an officer or director of CT, only in
his capacity as an officer or director of CT, may take any such action that is
in furtherance of the exercise of his duties as an officer or director under
Maryland law, and no such action in furtherance of the exercise of such duties
shall be deemed to be a breach or violation of the covenants of such Stockholder
contained in Sections 3 and 4 and the Stockholders shall not have any liability
hereunder for any such action taken in his capacity as an officer and director
of CT in furtherance of the exercise of such duties.
7. Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties without the prior
written consent of the other parties, except that General XXXX XX may assign, in
its sole discretion, any or all of its rights and interests to Citigroup Inc. or
any of its direct or indirect wholly owned subsidiaries or other entities or to
Travelers Property Casualty Corp. or any of its direct or indirect wholly owned
subsidiaries or other entities. Subject to the preceding sentence, this
Agreement shall be binding upon, inure to the benefit of and be enforceable by
the parties and their respective successors and assigns and, in the case of any
Stockholder that is an individual, the heirs, executors and administrators of
such Stockholder.
8. Termination. The rights and obligations contained in Section 3 shall
terminate and shall be of no further legal force and effect on the date on which
stockholders of CT shall have considered and voted upon the Warrant Issuance.
The rights and obligations contained in Section 4 shall terminate and shall be
of no further legal force and effect on the earlier of the date on which (i)
stockholders of CT shall have considered and voted upon any REIT Tax Matters
presented for a vote pursuant to Section 2.14 of the Venture Agreement, (ii) if
the Fund II Initial Closing shall not have occurred by no later than December
31, 2000 or any Extension Date, (a) the Unwind set forth in the Fund I Agreement
is commenced or (b) any dissolution or liquidation of Fund I in accordance with
its terms is completed, (iii) the Appraisal Procedures shall have commenced with
respect to the Fair Market Value of the CIG Parties' and their Affiliates' Board
Right Shares pursuant to Section 2.14 of the Venture
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Agreement, or (iv) upon the resignation of the CIG Parties Initial Board
Designees as set forth in Section 2.12(e) of the Venture Agreement if the CIG
Parties or the CT Parties shall have exercised their right to terminate the
Venture Agreement pursuant to Section 2.12(e) of the Venture Agreement.
9. General Provisions.
(a) Specific Performance. The parties agree that irreparable damage
that is impossible to measure in money damages would occur in the event
that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in any court of the
United States located in the State of New York or any New York state court,
this being in addition to any other remedy to which they are entitled at
law or in equity.
(b) Expenses. All costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the
party incurring such expense.
(c) Amendments. This Agreement may not be amended except by an
instrument in writing signed by each of the parties hereto.
(d) Notice. All notices or other communications required or permitted
hereunder shall be in writing and shall be deemed given or delivered (i)
when delivered personally, or (ii) if sent by registered or certified mail,
return receipt requested, or by private courier when received; and shall be
addressed as follows:
If to General XXXX XX, to:
Travelers General Real Estate Mezzanine
Investments II, LLC
000 Xxxxxxxx Xxxx., 0XX
Xxxxxxxx, Xxxxxxxxxxx 00000-0000
Attn: Xxxxx Xxxxxx, Esq.
Real Estate Investment Number: 12833
With a copies to:
Citigroup Investments Inc.
000 Xxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Mr. Xxxxxxx Xxxxxx
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Real Estate Investment Number: 12833
Loeb & Loeb LLP
0000 Xxxxxxxx Xxxxxxxxx, Xxxxx 0000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Attn: Xxxxxx X. Xxxxx, Esq.
If to the Stockholders, to:
c/o Capital Trust, Inc.
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
With a copy to:
Battle Xxxxxx LLP
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxx X. Xxxxxx, Esq.
or to such other address as such party may indicate by a notice delivered
to the other parties hereto.
(e) Interpretation. When a reference is made in this Agreement to
Sections, such reference shall be to a Section to this Agreement unless
otherwise indicated. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Wherever the words "include", "includes"
or "including" are used in this Agreement, they shall be deemed to be
followed by the words "without limitation".
(f) Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement,
and shall become effective when one or more of the counter parties have
been signed by each of the parties and delivered to the other party, it
being understood that each party need not sign the same counterpart.
(g) Entire Agreement; No Third-Party Beneficiaries. This Agreement
together with all other agreements executed by the parties hereto on the
date hereof (including the documents and instruments referred to herein),
(i) constitutes the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the parties with respect
to the subject matter hereof and (ii) is not intended to confer upon any
person other than the parties hereto any rights or remedies hereunder.
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(h) Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York as to all matters,
including but not limited to, matters of validity, construction, effect,
performance and remedies, without regard to any applicable conflicts of
law.
(i) Waivers. Any term or provision of this Agreement may be waived, or
the time for its performance may be extended, by the party or parties
entitled to the benefit thereof. Any such waiver shall be validly and
sufficiently given for the purposes of this Agreement if, as to any party,
it is in writing signed by an authorized representative of such party. The
failure of any party hereto to enforce at any time any provision of this
Agreement shall not be construed to be a waiver of such provision, nor in
any way to affect the validity of this Agreement or any part hereof or the
right of any party thereafter to enforce each and every such provision. No
waiver of any breach of this Agreement shall be held to constitute a waiver
of any other or subsequent breach.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.
TRAVELERS GENERAL REAL ESTATE
MEZZANINE INVESTMENTS II, LLC
By: /s/ Xxxxxxx Xxxxxx
-------------------------------
Xxxxxxx Xxxxxx
Vice President
XXXX X. XXXXX
/s/ Xxxx X. Xxxxx
----------------------------------
JRK INVESTMENT PARTNERSHIP LP
By: Xxxx X. Xxxxx, its general partner
/s/ Xxxx X. Xxxxx
-------------------------------
Xxxx X. Xxxxx
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