STOCK PURCHASE AGREEMENT
EXHIBIT 10.1
This STOCK PURCHASE AGREEMENT (this “Agreement”) is dated as of August 11, 2009, by
and among Starwood Property Trust, Inc., a Maryland corporation (the “Issuer”) and SPT
Investment, LLC, a Delaware limited liability company (the “Purchaser”).
W I T N E S S E T H:
WHEREAS, the Issuer is entering into an underwriting agreement on the date hereof (the
“Underwriting Agreement”), a copy of which is attached hereto as Annex I, with the
underwriters named therein (the “Underwriters”) pursuant to which the Issuer will, subject
to the satisfaction of the terms and conditions set forth in the Underwriting Agreement, issue and
sell to the Underwriters of 40,500,000 shares (the “IPO Shares”) of common stock, par value
$0.01 per share, of the Issuer (the “Common Stock”) in connection with an offering to the
public (the “IPO”) of the IPO Shares for $20.00 per share (the “IPO Price”); and
WHEREAS, subject to the consummation of the Issuer’s agreement to issue and sell the IPO
Shares to the Underwriters upon the satisfaction of the terms and conditions set forth in the
Underwriting Agreement, the Purchaser desires to purchase 1,000,000 shares of Common Stock at the
IPO Price and the Issuer desires to issue and sell such shares to the Purchaser.
NOW THEREFORE, in consideration of the premises and of the mutual agreements, covenants and
provisions herein contained and for good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:
ARTICLE I
PURCHASE AND SALE
1.1 Purchase and Sale of Subject Shares. Subject to (a) the terms and conditions set forth in this Agreement and (b) the consummation of
the Issuer’s agreement to issue and sell the IPO Shares to the Underwriters upon the satisfaction
of the terms and conditions set forth in the Underwriting Agreement (the “IPO Closing”),
the Issuer agrees to issue the Purchaser 1,000,000 shares of Common Stock (the “Subject
Shares”), and the Purchaser agrees to purchase the Subject Shares for $20,000,000.00 (the“Subject Shares Purchase Price”).
1.2 Closing. Subject to the terms and conditions of this Agreement and the occurrence of the IPO Closing, the
closing of the purchase and sale of the Subject Shares (the “Closing”) shall take place on
the date of the IPO Closing at the offices of counsel to the Issuer,
Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP located at Xxxx Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, or
at such other place as the applicable parties to such closing shall agree in writing.
1.3 Delivery at Closing. At the Closing, (a) Purchase shall deliver to Issuer the Subject Shares Purchase Price by wire
transfer of immediately available funds to an account designated by the Issuer in writing by 10:30
a.m., and (b) the Issuer shall deliver certificates representing the Subject Shares to the
Purchaser.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF THE ISSUER
The Issuer represents and warrants to the Purchaser as follows:
2.1 Formation and Good Standing. The Issuer is a corporation duly incorporated and is validly existing under and by virtue of the
laws of the State of Maryland and is in good standing with the State Department of Assessments and
Taxation of Maryland.
2.2 Authorization and Validity of Agreements. The Issuer has all requisite power and authority to execute and deliver this Agreement, to
perform its obligations hereunder and to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement, the performance by the Issuer of its obligations
hereunder and the consummation of the transactions contemplated hereby have been duly authorized by
all requisite corporate action of the Issuer. This Agreement constitutes a legal, valid and
binding obligation of the Issuer, enforceable against the Issuer in accordance with its respective
terms.
2.3 No Conflicts; Consents. The execution, delivery and performance of this Agreement by the Issuer and the
consummation by the Issuer of the transactions contemplated hereby do not and will not conflict
with, contravene, result in a violation or breach of or default under (with or without the giving
of notice or the lapse of time, or both), permit any party to terminate, amend or accelerate the
provisions of, or result in the imposition of any claim, lien, pledge, deed of trust, option,
charge, security interest, hypothecation, encumbrance, right of first offer, voting trust, proxy,
right of third parties or other restriction or limitation of any nature whatsoever (each, a
“Lien”), or any obligation to create any Lien, upon any of the property or assets of the
Issuer under (a) any contract, agreement, indenture, letter of credit, mortgage, security
agreement, pledge agreement, deed of trust, bond, note, guarantee, surety obligation, warranty,
license, franchise, permit, power of attorney, lease, instrument or other agreement (each, a
“Contract”) to which the Issuer is a party or by which any of its property or assets may be
bound or (b) any provision of the organizational document of the Issuer.
2.4 Exemption from Registration; No Integration; No General Solicitation.
(a) Subject to the accuracy of the representations and warranties of the Purchaser, it
is not necessary in connection with the offer, sale and delivery of the
Subject Shares to the Purchaser in the manner contemplated by this Agreement to
register the Subject Shares under the Securities Act of 1933, as amended (the
“Securities Act”).
2
(b) Neither the Company nor any affiliate (as defined in Rule 501(b) of Regulation D
under the Securities Act) of the Company has directly, or through any agent, (i) sold,
offered for sale, solicited offers to buy or otherwise negotiated in respect of, any
security (as defined in the Securities Act) which is or will be integrated with the sale of
the Subject Shares in a manner that would require the registration under the Securities Act
of the Subject Shares or (ii) offered, solicited offers to buy or sold the Subject Shares by
any form of general solicitation or general advertising (as those terms are used in
Regulation D under the Securities Act) or in any manner involving a public offering within
the meaning of Section 4(2) of the Securities Act.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
The Purchaser represents and warrants to the Issuer as follows:
3.1 Formation and Good Standing. The Purchaser is duly organized, validly existing and in good standing under the jurisdiction
and laws of the State of Delaware.
3.2 Authorization and Validity of Agreements. The Purchaser has all requisite power and authority to execute and deliver this Agreement, to
perform its obligations hereunder and to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement, the performance by the Purchaser of its obligations
hereunder and the consummation of the transactions contemplated hereby have been duly authorized by
all requisite corporate action of the Purchaser. This Agreement constitutes a legal, valid and
binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its
respective terms.
3.3 No Conflicts; Consents. The execution, delivery and performance of this Agreement by the Purchaser and the consummation
by the Purchaser of the transactions contemplated hereby do not and will not conflict with,
contravene, result in a violation or breach of or default under (with or without the giving of
notice or the lapse of time, or both), permit any party to terminate, amend or accelerate the
provisions of, or result in the imposition of any Lien (or any obligation to create any Lien) upon
any of the property or assets of the Purchaser under (a) any Contract to which the Purchaser is a
party or by which any of its property or assets may be bound or (b) any provision of the
organizational document of the Purchaser.
3
3.4 Investment Purpose; Accredited Purchaser; Access to Information.
(a) The Purchaser hereby acknowledges that the Subject Shares have not been registered
under the Securities Act and may not be offered or sold except pursuant to
registration or to an exemption from the registration requirements of the Securities
Act and that the certificates evidencing the Subject Shares will bear a legend to that
effect. The Subject Shares to be acquired by the Purchaser pursuant to this Agreement are
being acquired for its own account and with no intention of distributing or reselling the
Subject Shares or any part thereof in any transaction that would be in violation of the
securities laws of the United States, any state of the United States or any foreign
jurisdiction. The Purchaser further agrees that it has not entered and prior to the Closing
will not enter into any Contract with respect to the distribution, sale, transfer or
delivery of the Subject Shares.
(b) The Purchaser is an “accredited investor” as such term is defined in Section 2(15)
of the Securities Act and within the meaning of Rule 501 of Regulation D under the
Securities Act, as presently in effect.
(c) The Purchaser is sufficiently experienced in financial and business matters to be
capable of evaluating the merits and risks involved in purchasing the Subject Shares and to
make an informed decision relating thereto. The Purchaser has been furnished with the
materials relating to the business, operations, financial condition, assets, liabilities of
the Issuer and other matters relevant to Purchaser’s investment in the Subject Shares, which
have been requested by the Purchaser. The Purchaser has had adequate opportunity to ask
questions of, and receive answers from, the officers, employees, agents, accountants, and
representatives of the Issuer concerning the business, operations, financial condition,
assets, liabilities of the Issuer and all other matters relevant to its investment in the
Subject Shares.
ARTICLE IV
COVENANTS
4.1 Registration Rights. Subject to the occurrence of the IPO Closing and the
Closing, each of the parties hereto covenants to enter into that certain Registration Rights
Agreement, a copy of which is attached hereto as Annex II, with respect to the Subject
Shares.
4.2 Further Assurances. Each party hereto shall execute and deliver such instruments and take such other actions prior
to or after the Closing as any other party may reasonably request in order to carry out the intent
of this Agreement, including without limitation obtaining any required consents or approvals from
third parties.
4
ARTICLE V
CONDITIONS PRECEDENT TO THE OBLIGATIONS
5.1 Mutual Conditions. The obligations of the Issuer and the Purchaser to consummate the purchase and sale of the
Subject Shares contemplated hereby are subject to the following conditions: (a) the occurrence of
the IPO Closing, (b) the absence of any order, decree, judgment or injunction of a court of
competent jurisdiction or other governmental or regulatory authority precluding the consummation of
the purchase and sale of the Subject Shares contemplated hereby, and (c) there shall not have been
any action taken or any statute, rule or regulation enacted, promulgated or deemed applicable to,
the purchase and sale of the Subject Shares contemplated hereby by any court, governmental agency
or regulatory or administrative authority that makes consummation of such transactions illegal.
5.2 Conditions to the Obligations of the Issuer. The obligations of the Issuer under this Agreement to consummate the purchase and sale of the
Subject Shares contemplated hereby are subject to the fulfillment (or waiver by the Issuer) of the
conditions that (a) the representations and warranties of the Purchaser contained in or made
pursuant to this Agreement shall be deemed to have been made again at and as of the Closing and
shall then be true and accurate, and (b) the Purchaser shall have performed and complied in all
material respects with all agreements required by this Agreement to be performed or complied with
by it prior to or at the Closing.
5.3 Conditions to the Obligations of the Purchaser. The obligations of the Purchaser under this Agreement to consummate the purchase and sale
of the Subject Shares contemplated hereby are subject to the fulfillment (or waiver in writing by
the Purchaser) of the condition that (a) all representations and warranties of the Issuer shall be
deemed to have been made again at and as of the Closing and shall then be true and accurate, and
(b) the Issuer shall have performed and complied in all material respects with all agreements
required by this Agreement to be performed or complied with by it prior to or at the Closing.
ARTICLE VI
MISCELLANEOUS
6.1 Termination. This Agreement shall be terminated prior to the consummation of the transactions contemplated
hereby if, prior to the consummation of the IPO Closing, the Underwriting Agreement is terminated
pursuant to its terms. In the event of any termination of this Agreement, this Agreement shall
become void and have no effect, without any liability to any person in respect hereof on the part
of any party hereto, except for any liability resulting from such party’s breach of this Agreement
prior to such termination.
6.2 Survival. Each of the representations and warranties contained in this Agreement
shall survive indefinitely. Each of the covenants contained in this Agreement shall survive the
Closing until performed in accordance with their terms.
5
6.3 Amendments; Waivers. The provisions of this Agreement may not be amended or modified except by a writing signed by
each of the parties. No waiver of any term or condition hereof or obligation hereunder shall be
valid unless made in writing and signed by the party to which performance is due.
6.4 Severability of Provisions. Each provision of this Agreement shall be considered severable and if for any reason any
provision or provisions herein are determined to be invalid, unenforceable or illegal under any
existing or future law, such invalidity, unenforceability or illegality shall not impair the
operation of or affect those portions of this Agreement which are valid, enforceable and legal.
6.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
New York, without giving effect to any conflict of laws principles thereof that would cause the
application of the laws of another jurisdiction.
6.6 Waiver of Trial By Jury. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY
HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM,
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER ARISING HEREUNDER.
6.7 Remedies and Waivers. No delay or omission on the part of any Party to this
Agreement in exercising any right, power or remedy provided by law or under this agreement shall
(i) impair such right, power or remedy; or (ii) operate as a waiver thereof. The single or partial
exercise of any right, power or remedy provided by law or under this Agreement shall not preclude
any other or further exercise of any other right, power or remedy. The rights, powers and remedies
provided in this Agreement are cumulative and not exclusive of any rights, powers and remedies
provided by law.
6.8 Notices. All notices, requests, demands, waivers and other communications to be given by either party
hereunder shall be in writing and shall be (i) mailed by first-class, registered or certified mail,
postage prepaid, (ii) sent by hand delivery or reputable overnight delivery service or (iii)
transmitted by fax (provided that a copy is also sent by reputable overnight delivery service)
addressed to the Secretary of the Issuer or the Secretary of the Purchaser, as applicable, in each
case at 000 Xxxx Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxxxx 00000, or such other address as may be
specified in writing to the other party hereto. All such notices, requests, demands, waivers and
other communications shall be deemed to have been given and received (i) if by personal delivery or
fax, on the day of such delivery, (ii) if by first-class, registered or certified mail, on the
fifth business day after the mailing thereof, or (iii) if by reputable overnight delivery service,
on the day delivered.
6.9 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original, but all such counterparts shall together constitute but one and the same instrument.
6
6.10 Headings. The Article and Section headings contained herein are for the
convenience of the parties only and shall not affect the construction or interpretation of this
Agreement.
6.11 Entire Agreement. This Agreement, including the Exhibits hereto, contains the entire understanding of the parties
with respect to the subject matter hereof, and supersedes all prior agreements and understandings,
both written and oral, among the parties with respect to the subject matter hereof.
7
IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first written above.
|
ISSUER: STARWOOD PROPERTY TRUST, INC. |
||||
| By: | /s/ Xxxxx X. Xxxxxxx | |||
| Name: | Xxxxx X. Xxxxxxx | |||
| Title: | General Counsel, Secretary and Executive Vice President | |||
PURCHASER: SPT INVESTMENT, LLC |
||||
| By: | /s/ Xxxxxx X. Xxxxxx | |||
| Name: | Xxxxxx X. Xxxxxx | |||
| Title: | Executive Vice President and Secretary | |||
8
Annex I
[Intentionally
omitted.]
Annex II
[Intentionally
omitted]
