Exhibit 10.11
SUPPLEMENT TO THE AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP
OF
RECKSON OPERATING PARTNERSHIP, L.P.
ESTABLISHING 2005 LTIP UNITS
OF
LIMITED PARTNERSHIP INTEREST
In accordance with Sections 4.2 and 14.1.B (2), (3) and (4) of the
Amended and Restated Agreement of Limited Partnership, dated as of June 2, 1995,
as amended on December 6, 1995, April 13, 1998, April 20, 1998, June 30, 1998,
May 24, 1999, June 2, 1999, October 13, 2000, August 7, 2003 and December 27,
2004 (the "Partnership Agreement"), the Partnership Agreement is hereby
supplemented (the "Supplement") to establish a class of units of limited
partnership interest of Reckson Operating Partnership, L.P. (the "Partnership"),
which shall be designated "2005 LTIP Units," having the rights, powers,
privileges and restrictions, qualifications and limitations as set forth below
and which shall be issued to the parties and in the amounts set forth on
SCHEDULE A hereto. Capitalized terms used and not otherwise defined herein shall
have the meanings set forth in the Partnership Agreement, including the
Supplement thereto, dated December 27, 2004, establishing LTIP Units of limited
partnership interest.
WHEREAS, the Partnership desires to provide for equity incentives to
certain employees of the Company who provide services for the benefit of the
Partnership ("Grantees").
WHEREAS, pursuant to Section 4.2 of the Partnership Agreement, the
Partnership is issuing 2005 LTIP Units to the Grantees with the rights, powers,
privileges and restrictions, qualifications and limitations as set forth below.
WHEREAS, pursuant to Section 4.2 and Sections 14.1.B (2), (3) and (4),
the General Partner is amending the Partnership Agreement to facilitate the
issuance of the 2005 LTIP Units.
NOW THEREFORE, in consideration of the mutual covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1. Issuance of 2005 LTIP Units
(a) Pursuant to Section 4.2 of the Partnership Agreement, the
Partnership hereby issues 272,100 Partnership Interests (the "2005 LTIP Units")
to the Grantees and in the amounts set forth on SCHEDULE A hereto. The 2005 LTIP
Units shall have the rights, powers, privileges, restrictions, qualifications
and limitations (including, but not limited to, limitations on transfer) of
Limited Partners under the Partnership Agreement, as supplemented and amended by
the rights, powers, privileges, restrictions, qualifications and limitations
specified in EXHIBIT I hereto.
(b) The admission of the Grantees as Additional Limited Partners of the
Partnership shall become effective as of the date of this Supplement, which
shall also be the date upon which the names of the Grantees are recorded on the
books and records of the Partnership, and Exhibit A to the Partnership Agreement
is amended to reflect such admission.
SECTION 2. Amendments to Partnership Agreement.
Pursuant to Section 14.1.B(3) of the Partnership Agreement,
the General Partner, as general partner of the Partnership and as
attorney-in-fact for its Limited Partners, hereby amends the Partnership
Agreement as follows:
(a) Article 1 of the Partnership Agreement is hereby amended
by inserting the following definitions in alphabetical order:
"2005 LTIP Units" means the units of the class of
limited partnership interest initially issued on March
11, 2005, having the rights, powers, privileges,
restrictions, qualifications and limitations set forth
in the Supplement to the Partnership Agreement dated as
of such date.
(b) Section 6.1E of the Partnership Agreement is hereby
amended by replacing the text thereof with the following:
E. Notwithstanding the provisions of Section 6.1.A
above, but subject to the prior allocation of income and
gain under clauses A(i), (ii) and (iii) above and to the
terms of any Partnership Unit Designation in respect of
any class of Partnership Interests ranking senior to the
LTIP Units and the 2005 LTIP Units with respect to
return of capital or any preferential or priority
return, any Liquidating Capital Gains shall first be
allocated to the holders of LTIP Units and next to
holders of 2005 LTIP Units until the Economic Capital
Account Balances of such holders, to the extent
attributable to their ownership of LTIP Units or 2005
LTIP Units, as applicable, are equal to (i) the Common
Unit Economic Balance, multiplied by (ii) the number of
their LTIP Units or 2005 LTIP Units, as applicable;
provided that no such Liquidating Capital Gains will be
allocated with respect to any particular LTIP Unit or
2005 LTIP Unit, as applicable, unless and to the extent
that the Common Unit Economic Balance exceeds the Common
Unit Economic Balance in existence at the time such LTIP
Unit or 2005 LTIP Unit, as applicable, was issued. For
this purpose, "Liquidating Capital Gains" means net
capital gains realized in connection with the actual or
hypothetical sale of all or substantially all of the
assets of the Partnership, including but not limited to
net capital gain realized in connection with an
adjustment to the Carrying Value of Partnership assets
under Section 704(b) of the Code. The "Economic Capital
Account Balances" of the holders of LTIP Units or 2005
LTIP Units, as applicable, will be equal to their
Capital Account balances, plus the amount of their
shares of any Partner Minimum Gain or Partnership
Minimum Gain, in either case to the extent attributable
to their
2
ownership of LTIP Units or 2005 LTIP Units, as
applicable. Similarly, the "Common Unit Economic
Balance" shall mean (i) the Capital Account Balance of
the Company, plus the amount of the Company's share of
any Partner Minimum Gain or Partnership Minimum Gain, in
either case to the extent attributable to the Company's
ownership of Common Units and computed on a hypothetical
basis after taking into account all allocations through
the date on which any allocation is made under this
Section 6.1.E, divided by (ii) the number of the
Company's Common Units. Any such allocations shall be
made first among the LTIP Unitholders and next among the
2005 LTIP Unitholders in proportion to the amounts
required to be allocated to each under this Section
6.1.E. The parties agree that the intent of this Section
6.1.E is to make the Capital Account Balance associated
with each LTIP Unit and 2005 LTIP Unit economically
equivalent to the Capital Account Balance associated
with the Company's Common Units (on a per-Unit basis),
but only if the Capital Account Balance associated with
the Company's Common Units has increased on a per-Unit
basis since the issuance of the relevant LTIP Unit or
2005 LTIP Unit, as applicable.
(c) Section 8.6A is hereby amended by replacing the text of
the final sentence thereof with the following:
Notwithstanding the foregoing, the Redemption Right
shall not be exercisable with respect to any Common Unit
issued upon conversion of an LTIP Unit or a 2005 LTIP
Unit, as applicable, until on or after the date that is
two years after the date on which the LTIP Unit or 2005
LTIP Unit, as applicable, was issued, provided however,
that the foregoing restriction shall not apply if the
Redemption Right is exercised by an LTIP Unitholder or a
2005 LTIP Unitholder, as applicable, in connection with
a transaction that falls within the definition of a
"change-in-control" under the agreement or agreements to
which the LTIP Units or the 2005 LTIP Units, as
applicable, were issued to him or her.
(d) The term "transfer" as used in Article 11 of the
Partnership Agreement shall not include any conversion of 2005 LTIP Units into
Common Units.
SECTION 3. Continuation of Partnership Agreement
The Partnership Agreement and this Supplement shall be read
together and shall have the same force and effect as if the provisions of the
Partnership Agreement and this Supplement (including EXHIBIT I hereto) were
contained in one document. Any provisions of the Partnership Agreement not
amended by this Supplement shall remain in full force and effect as provided in
the Partnership Agreement immediately prior to the date hereof.
3
IN WITNESS WHEREOF, the parties hereto have executed this Supplement to
the Partnership Agreement as of the 11th day of March, 2005.
GENERAL PARTNER:
RECKSON ASSOCIATES REALTY CORP.
By: /s/ Xxxxx Xxxxxxx
----------------------------------------
Name: Xxxxx Xxxxxxx
Title: Executive Vice President and
General Counsel
EXISTING LIMITED PARTNERS:
By: Reckson Associates Realty Corp.,
as Attorney-in-Fact for the Limited
Partners
By: /s/ Xxxxx Xxxxxxx
----------------------------------------
Name: Xxxxx Xxxxxxx
Title: Executive Vice President and
General Counsel
GRANTEES:
*Individual Counterpart Signature Pages Attached.
4
RECKSON OPERATING PARTNERSHIP, L.P.
Limited Partner Signature Page
The undersigned, desiring to become one of the within named Limited
Partners of Reckson Operating Partnership, L.P. (the "Partnership") hereby
becomes a party to the Amended and Restated Agreement of Limited Partnership,
dated as of June 2, 1995 and amended through the date hereof, of the
Partnership, by and among Reckson Associates Realty Corp. and such Limited
Partners. The undersigned agrees that this signature page may be attached to any
counterpart of said Xxxxxxx and Restated Agreement of Limited Partnership.
Date: ------------------------------------------
Name of Limited Partner (please print)
------------------------------------------
Signature
------------------------------------------
Address
5
EXHIBIT I
RECKSON OPERATING PARTNERSHIP, L.P.
DESIGNATION OF THE RIGHTS, POWERS, PRIVILEGES,
RESTRICTIONS, QUALIFICATIONS AND LIMITATIONS
OF THE 2005 LTIP UNITS
The following are the terms of the 2005 LTIP Units established pursuant
to this Supplement:
1. Number. The maximum number of authorized LTIP Units shall be
272,100.
2. Vesting.
(a) Vesting, Generally. LTIP Units may, in the sole discretion
of the General Partner, be issued subject to vesting, forfeiture and additional
restrictions on transfer pursuant to the terms of an award vesting or other
similar agreement (a "Vesting Agreement"). The terms of any Vesting Agreement
may be modified by the General Partner from time to time in its sole discretion,
subject to any restrictions on amendment imposed by the relevant Vesting
Agreement or by the terms of any plan pursuant to which the 2005 LTIP Units are
issued, if applicable. 2005 LTIP Units that have vested under the terms of a
Vesting Agreement are referred to as "Vested 2005 LTIP Units"; all other LTIP
Units shall be treated as "Unvested 2005 LTIP Units." Subject to the terms of
any Vesting Agreement, a holder of 2005 LTIP Units shall be entitled to transfer
his or her 2005 LTIP Units to the same extent, and subject to the same
restrictions as holders of Common Units are entitled to transfer their Common
Units pursuant to Article 11 of the Agreement.
(b) Forfeiture or Transfer of Unvested 2005 LTIP Units. Unless
otherwise specified in the Vesting Agreement, upon the occurrence of any event
specified in a Vesting Agreement as resulting in either the right of the
Partnership or the Company to repurchase 2005 LTIP Units at a specified purchase
price or some other forfeiture of any 2005 LTIP Units, then if the Partnership
or the Company exercises such right to repurchase or upon the occurrence of the
circumstances resulting in such forfeiture, then the relevant 2005 LTIP Units
shall immediately, and without any further action, be treated as transferred to
the Company, if applicable, or cancelled and no longer outstanding for any
purpose. Unless otherwise specified in the Vesting Agreement, no consideration
or other payment shall be due with respect to any 2005 LTIP Units that have been
forfeited, other than any distributions declared with respect to a Distribution
Payment Record Date (as defined below) prior to the effective date of the
forfeiture. In connection with any repurchase or forfeiture of 2005 LTIP Units,
the balance of the portion of the Capital Account of the holder that is
attributable to all of his or her 2005 LTIP Units shall be reduced by the
amount, if any, by which it exceeds the target balance contemplated by Section
6.1.E of the Partnership Agreement, calculated with respect to the Holder's
remaining 2005 LTIP Units, if any.
Exh. I-1
(c) Legend. Any certificate evidencing a 2005 LTIP Unit shall
bear an appropriate legend indicating that additional terms, conditions and
restrictions on transfer, including without limitation any Vesting Agreement,
apply to the 2005 LTIP Unit.
3. Distributions.
(a) 2005 LTIP Distribution Amount. Commencing from the date on
which any 2005 LTIP Units are first issued (each, a "2005 LTIP Issue Date"), for
any quarterly period holders of such 2005 LTIP Units shall be entitled to
receive, if, when and as authorized by the General Partner out of funds legally
available for the payment of distributions, cash distributions in an amount per
unit equal to the distribution payable on the Common Units for the corresponding
quarterly period (the "2005 LTIP Distribution Amount"). Distributions on the
2005 LTIP Units, if authorized, shall be payable quarterly in arrears on such
dates as may be authorized by the General Partner (any such date, a
"Distribution Payment Date"). In addition, 2005 LTIP Units shall be entitled to
receive, if, when and as authorized by the General Partner out of funds or other
property legally available for the payment of distributions, any special,
extraordinary or other distributions payable on the Common Units which may be
made from time to time in an amount per unit equal to the amount of any special,
extraordinary or other distributions payable on the Common Units. Distributions
will be payable to the holder of the 2005 LTIP Units with respect to the 2005
LTIP Units held at the close of business on the applicable record date, which
shall be such date designated by the General Partner for the payment of
distributions that is not more than 30 nor less than 10 days prior to such
Distribution Payment Date (each, a "Distribution Payment Record Date"). With
regard to any distribution to the 2005 LTIP Units, the Distribution Payment Date
shall be the same date as the date fixed for the payment of distributions to
holders of Common Units and the Distribution Payment Record Date shall be the
same date set for the record date for holders of Common Units. In the event that
distributions to holders of Common Units for any period are paid on other than a
quarterly basis, for example, on a monthly basis, then distributions to holders
of the 2005 LTIP Units shall also be paid on that alternate basis.
(b) Prohibited Distributions. No distributions on the 2005
LTIP Units shall be authorized by the General Partner or be paid or set apart
for payment by the Partnership at such time as the terms and provisions of any
agreement of the Partnership, including any agreement relating to its
indebtedness, prohibits such authorization, payment or setting apart for payment
or provides that such authorization, payment or setting apart for payment would
constitute a breach thereof or a default thereunder, or if such authorization or
payment shall be restricted or prohibited by law.
(c) Noncumulative Distributions. Distributions on the 2005
LTIP Units will be noncumulative. If the General Partner does not authorize a
distribution on the 2005 LTIP Units payable on any Distribution Payment Date
while any 2005 LTIP Unit is outstanding, then the holder of the 2005 LTIP Units
will have no right to receive a distribution for that Distribution Payment Date,
and the Partnership will have no obligation to pay a distribution for that
Distribution Payment Date with respect to the 2005 LTIP Units.
Exh. I-2
(d) Parity with Common Units. No distributions, whether in
cash, securities or property, will be authorized or paid or set apart for
payment to holders of Common Units for any period unless for each 2005 LTIP Unit
outstanding, a distribution equal to the 2005 LTIP Distribution Amount with
respect to such period has been or contemporaneously is authorized and paid or
authorized and a sum sufficient for the payment thereof is set apart for such
payment to the holders of the 2005 LTIP Units for the then current distribution
period.
(e) Definition of Set Apart for Payment. As used in this
Section 3, "set apart for payment" shall be deemed to include, without any
further action, the following: the recording by the Partnership in its
accounting ledgers of any accounting or bookkeeping entry which indicates,
pursuant to an authorization of a distribution by the General Partner, the
allocation of funds to be so paid on any series or class of units of the
Partnership.
4. Adjustments.
The Partnership shall maintain at all times a one-to-one correspondence between
2005 LTIP Units and Common Units for conversion, distribution and other
purposes, including without limitation complying with the following procedures.
If an Adjustment Event (as defined below) occurs, then the General Partner shall
make a corresponding adjustment to the 2005 LTIP Units to maintain a one-for-one
conversion and economic equivalence ratio between Common Units and 2005 LTIP
Units. The following shall be "Adjustment Events": (A) the Partnership makes a
distribution on all outstanding Common Units in Partnership Units, (B) the
Partnership subdivides the outstanding Common Units into a greater number of
units or combines the outstanding Common Units into a smaller number of units,
or (C) the Partnership issues any Partnership Units in exchange for its
outstanding Common Units by way of a reclassification or recapitalization of its
Common Units. If more than one Adjustment Event occurs, the adjustment to the
2005 LTIP Units need be made only once using a single formula that takes into
account each and every Adjustment Event as if all Adjustment Events occurred
simultaneously. For the avoidance of doubt, the following shall not be
Adjustment Events: (x) the issuance of Partnership Units in a financing,
reorganization, acquisition or other similar business transaction, (y) the
issuance of Partnership Units pursuant to any employee benefit or compensation
plan or distribution reinvestment plan, or (z) the issuance of any Partnership
Units to the Company in respect of a capital contribution to the Partnership of
proceeds from the sale of securities by the Company. If the Partnership takes an
action affecting the Common Units other than actions specifically described
above as "Adjustment Events" and in the opinion of the General Partner such
action would require an adjustment to the 2005 LTIP Units to maintain the
one-to-one correspondence described above, the General Partner shall have the
right to make such adjustment to the 2005 LTIP Units, to the extent permitted by
law and by the terms of any plan pursuant to which the 2005 LTIP Units have been
issued, in such manner and at such time as the General Partner, in its sole
discretion, may determine to be appropriate under the circumstances. If an
adjustment is made to the 2005 LTIP Units as herein provided the Partnership
shall promptly file in the books and records of the Partnership an officer's
certificate setting forth such adjustment and a brief statement of the facts
requiring such adjustment, which certificate shall be conclusive evidence of the
correctness of such adjustment absent manifest error. Promptly after filing of
such certificate, the Partnership shall mail a notice to each holder of 2005
LTIP Units setting forth the adjustment to his or her 2005 LTIP Units and the
effective date of such adjustment.
Exh. I-3
5. Ranking.
The 2005 LTIP Units shall rank on parity with the Common Units in all
respects.
6. No Liquidation Preference.
The 2005 LTIP Units shall have no liquidation preference.
7. Right to Convert 2005 LTIP Units into Common Units.
(a) Conversion Right. On or after the date that is two (2)
years after the 2005 LTIP Issuance Date a holder of 2005 LTIP Units shall have
the right (the "Conversion Right"), at his or her option, at any time to convert
all or a portion of his or her Vested 2005 LTIP Units into Common Units;
provided, however, that a holder may not exercise the Conversion Right for fewer
than one thousand (1,000) Vested 2005 LTIP Units or, if such holder holds fewer
than one thousand Vested 2005 LTIP Units, all of the holder's Vested 2005 LTIP
Units. Holders of 2005 LTIP Units shall not have the right to convert Unvested
2005 LTIP Units into Common Units until they become Vested 2005 LTIP Units. The
General Partner shall have the right at any time to cause a conversion of Vested
2005 LTIP Units into Common Units. In all cases, the conversion of any 2005 LTIP
Units into Common Units shall be subject to the conditions and procedures set
forth in this Section 7.
(b) Number of Units Convertible. A holder of Vested 2005 LTIP
Units may convert such Units into an equal number of fully paid and
non-assessable Common Units, giving effect to all adjustments (if any) made
pursuant to Section 4. Notwithstanding the foregoing, in no event may a holder
of Vested 2005 LTIP Units convert a number of Vested 2005 LTIP Units that
exceeds (x) the Economic Capital Account Balance of such holder, to the extent
attributable to its ownership of 2005 LTIP Units, divided by (y) the Common Unit
Economic Balance, in each case as determined as of the effective date of
conversion (the "Capital Account Limitation").
(c) Notice. In order to exercise his or her Conversion Right,
a holder of 2005 LTIP Units shall deliver a notice (a "Conversion Notice") in
the form attached as EXHIBIT A to this Supplement (with a copy to the General
Partner) not less than 10 nor more than 60 days prior to a date (the "Conversion
Date") specified in such Conversion Notice; provided, however, that if the
General Partner has not given to the 2005 LTIP Unitholders notice of a proposed
or upcoming Transaction (as defined below) at least
Exh. I-4
thirty (30) days prior to the effective date of such Transaction, then holders
of 2005 LTIP Units shall have the right to deliver a Conversion Notice until the
earlier of (x) the tenth (10th) day after such notice from the General Partner
of a Transaction or (y) the third business day immediately preceding the
effective date of such Transaction. A Conversion Notice shall be provided in the
manner provided in Section 15.1 of the Partnership Agreement. Each Holder of
2005 LTIP Units covenants and agrees with the Partnership that all Vested 2005
LTIP Units to be converted pursuant to this Section 7 shall be free and clear of
all liens. Notwithstanding anything herein to the contrary, a Holder of 2005
LTIP Units may deliver a Redemption Notice pursuant to Section 8.6 of the
Partnership Agreement relating to those Common Units that will be issued to such
holder upon conversion of such 2005 LTIP Units into Common Units in advance of
the Conversion Date; provided, however, that the redemption of such Common Units
by the Partnership shall in no event take place until the Conversion Date. For
clarity, it is noted that the objective of this paragraph is to put a holder of
2005 LTIP Units in a position where, if he or she so wishes, the Common Units
into which his or her Vested 2005 LTIP Units will be converted can be redeemed
by the Partnership simultaneously with such conversion, with the further
consequence that, if the Company elects to assume the Partnership's redemption
obligation with respect to such Common Units under Section 8.6 of the
Partnership Agreement by delivering to such holder REIT Shares rather than cash,
then such holder can have such REIT Xxxxxx issued to him or her simultaneously
with the conversion of his or her Vested 2005 LTIP Units into Common Units. The
General Partner shall cooperate with a holder of 2005 LTIP Units to coordinate
the timing of the different events described in the foregoing sentence.
(d) Forced Conversion. The Partnership, at any time at the
election of the General Partner, may cause any number of Vested 2005 LTIP Units
held by a holder of 2005 LTIP Units to be converted (a "Forced Conversion") into
an equal number of Common Units, giving effect to all adjustments (if any) made
pursuant to Section 4; provided, that the Partnership may not cause Forced
Conversion of any 2005 LTIP Units that would not at the time be eligible for
conversion at the option of such 2005 LTIP Unitholder pursuant to paragraph (b)
above. In order to exercise its right of Forced Conversion, the Partnership
shall deliver a notice (a "Forced Conversion Notice") in the form attached as
EXHIBIT B to this Supplement to the applicable Holder not less than 10 nor more
than 60 days prior to the Conversion Date specified in such Forced Conversion
Notice. A Forced Conversion Notice shall be provided in the manner provided in
Section 15.1 of the Partnership Agreement.
(e) Conversion Procedures. A conversion of Vested 2005 LTIP
Units for which the Holder has given a Conversion Notice or the Partnership has
given a Forced Conversion Notice shall occur automatically after the close of
business on the applicable Conversion Date without any action on the part of
such holder of 2005 LTIP Units, as of which time such holder of 2005 LTIP Units
shall be credited on the books and records of the Partnership with the issuance
as of the opening of business on the next day of the number of Common Units
issuable upon such conversion. After the conversion of 2005 LTIP Units as
aforesaid, the Partnership shall deliver to such holder of 2005 LTIP Units, upon
his or her written request, a certificate of the General Partner certifying the
number of Common Units and remaining 2005 LTIP Units, if any, held by such
Person immediately after such conversion.
Exh. I-5
(f) Treatment of Capital Account. For purposes of making
future allocations under Section 6.1.E of the Agreement and applying the Capital
Account Limitation, the portion of the Economic Capital Account Balance of the
applicable holder of 2005 LTIP Units that is treated as attributable to his or
her 2005 LTIP Units shall be reduced, as of the date of conversion, by the
product of the number of 2005 LTIP Units converted and the Common Unit Economic
Balance.
(g) Mandatory Conversion in Connection with a Transaction. If
the Partnership or the General Partner shall be a party to any transaction
(including without limitation a merger, consolidation, unit exchange, self
tender offer for all or substantially all Common Units or other business
combination or reorganization, or sale of all or substantially all of the
Partnership's assets, but excluding any transaction which constitutes an
Adjustment Event), in each case as a result of which Common Units shall be
exchanged for or converted into the right, or the holders of such Units shall
otherwise be entitled, to receive cash, securities or other property or any
combination thereof (each of the foregoing being referred to herein as a
"Transaction"), then the General Partner shall, immediately prior to the
Transaction, exercise its right to cause a Forced Conversion with respect to the
maximum number of 2005 LTIP Units then eligible for conversion, taking into
account any allocations that occur in connection with the Transaction or that
would occur in connection with the Transaction if the assets of the Partnership
were sold at the Transaction price or, if applicable, at a value determined by
the General Partner in good faith using the value attributed to the Partnership
Units in the context of the Transaction (in which case the Conversion Date shall
be the effective date of the Transaction).
In anticipation of such Forced Conversion and the consummation of the
Transaction, the Partnership shall use commercially reasonable efforts to cause
each holder of 2005 LTIP Units to be afforded the right to receive in connection
with such Transaction in consideration for the Common Units into which his or
her 2005 LTIP Units will be converted the same kind and amount of cash,
securities and other property (or any combination thereof) receivable upon the
consummation of such Transaction by a holder of the same number of Common Units,
assuming such holder of Common Units is not a Person with which the Partnership
consolidated or into which the Partnership merged or which merged into the
Partnership or to which such sale or transfer was made, as the case may be (a
"Constituent Person"), or an affiliate of a Constituent Person. In the event
that holders of Common Units have the opportunity to elect the form or type of
consideration to be received upon consummation of the Transaction, prior to such
Transaction the General Partner shall give prompt written notice to each holder
of 2005 LTIP Units of such election, and shall use commercially reasonable
efforts to afford such holders the right to elect, by written notice to the
General Partner, the form or type of consideration to be received upon
conversion of each 2005 LTIP Unit held by such holder into Common Units in
connection with such Transaction. If a holder of 2005 LTIP Units fails to make
such an election, such Xxxxxx (and any of its transferees) shall receive upon
conversion of each 2005 LTIP Unit held by him or her (or by any of his or her
transferees) the same kind and amount of consideration that a holder of a Common
Unit would receive if such Common Unit Holder failed to make such an election.
Exh. I-6
Subject to the rights of the Partnership and the General Partner under
any Vesting Agreement and the terms of any plan under which 2005 LTIP Units are
issued, the Partnership shall use commercially reasonable effort to cause the
terms of any Transaction to be consistent with the provisions of this Section 7
and to enter into an agreement with the successor or purchasing entity, as the
case may be, for the benefit of any holders of 2005 LTIP Units whose 2005 LTIP
Units will not be converted into Common Units in connection with the Transaction
that will (i) contain provisions enabling the holders of 2005 LTIP Units that
remain outstanding after such Transaction to convert their 2005 LTIP Units into
securities as comparable as reasonably possible under the circumstances to the
Common Units and (ii) preserve as far as reasonably possible under the
circumstances the distribution, special allocation, conversion, and other rights
set forth in the Partnership Agreement for the benefit of the holders of 2005
LTIP Units.
8. Redemption at the Option of the Partnership.
2005 LTIP Units will not be redeemable at the option of the
Partnership; provided, however, that the foregoing shall not prohibit the
Partnership from repurchasing 2005 LTIP Units from the holder thereof if and to
the extent such holder agrees to sell such 2005 LTIP Units.
9. Intentionally Omitted.
10. Voting Rights.
(a) Voting with Common Units. Holders of 2005 LTIP Units shall
have the right to vote on all matters submitted to a vote of the holders of
Common Units; holders of 2005 LTIP Units and Common Units shall vote together as
a single class, together with any other class or series of units of limited
partnership interest in the Partnership upon which like voting rights have been
conferred. In any matter in which the 2005 LTIP Units are entitled to vote,
including an action by written consent, each 2005 LTIP Unit shall be entitled to
one vote.
(b) Special Approval Rights. In addition to, and not in
limitation of, the provisions of Section 10(a) above (and notwithstanding
anything appearing to be contrary in the Partnership Agreement), the Company
and/or the Partnership shall not, without the affirmative consent of the holders
of sixty-six and two-thirds percent (66 2/3%) of the then outstanding 2005 LTIP
Units, given in person or by proxy, either in writing or at a meeting, take any
action that would materially and adversely alter, change, modify or amend the
rights, powers or privileges of the 2005 LTIP Units; but subject in any event to
the following provisions: (i) no consent of the holders of 2005 LTIP Units will
be required if and to the extent that any such alteration, change, modification
or amendment would similarly alter, change, modify or amend the rights, powers
or
Exh. I-7
privileges of the Common Units; (ii) with respect to the occurrence of any
merger, consolidation or other business combination or reorganization, so long
as the 2005 LTIP Units remain outstanding with the terms thereof materially
unchanged or, if the Partnership is not the surviving entity in such
transaction, are exchanged for a security of the surviving entity with terms
that are materially the same with respect to rights to allocations,
distributions, redemption, conversion and voting as the 2005 LTIP Units and
without any income, gain or loss expected to be recognized by the holder upon
the exchange for federal income tax purposes (and with the terms of the Common
Units or such other securities into which the 2005 LTIP Units (or the substitute
security therefor) are convertible materially the same with respect to rights to
allocations, distributions, redemption, conversion and voting), the occurrence
of any such event shall not be deemed to materially and adversely alter, change,
modify or amend the rights, powers or privileges of the 2005 LTIP Units; (iii)
any creation or issuance of any Common Units or of any class of series of common
or preferred units of the Partnership (whether ranking junior to, on a parity
with or senior to the 2005 LTIP Units with respect to payment of distributions,
redemption rights and the distribution of assets upon liquidation, dissolution
or winding up), which either (x) does not require the consent of the holders of
Common Units or (y) does require such consent and is authorized by a vote of the
holders of Common Units; and 2005 LTIP Units voting together as a single class,
together with any other class or series of units of limited partnership interest
in the Partnership upon which like voting rights have been conferred, shall not
be deemed to materially and adversely alter, change, modify or amend the rights,
powers or privileges of the 2005 LTIP Units; and (iv) any waiver by the
Partnership of restrictions or limitations applicable to any outstanding 2005
LTIP Units with respect to any holder or holders thereof shall not be deemed to
materially and adversely alter, change, modify or amend the rights, powers or
privileges of the 2005 LTIP Units with respect to other holders. The foregoing
voting provisions will not apply if, as of or prior to the time when the action
with respect to which such vote would otherwise be required will be taken or be
effective, all outstanding 2005 LTIP Units shall have been converted and/or
redeemed, or provision is made for such redemption and/or conversion to occur as
of or prior to such time.
Exh. I-8
Schedule A
----------
Name and Address Number of 2005 LTIP Units
---------------- -------------------------
Xxxxx X. Xxxxxxx 200,000
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Xxxxxxx Xxxxxx 25,000
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Xxxxx X. Xxxxxxx 6,500
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Xxxxxxxxx Xxxxxxxxxxx 15,000
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
X.X. Xxxx 6,500
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Xxxxxx Xxxxxxxx 2,600
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Xxxx Xxxxxxx 10,000
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Xxxxxxx Xxxxxxx 6,500
c/o Reckson Associates Realty Corp.
000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
Sch. A
Exhibit A
NOTICE OF ELECTION BY PARTNER TO CONVERT
2005 LTIP UNITS INTO COMMON UNITS
The undersigned holder of 2005 LTIP Units hereby irrevocably elects to
convert the number of Vested 2005 LTIP Units in Reckson Operating Partnership,
L.P. (the "Partnership") set forth below into Common Units in accordance with
the terms of the Amended and Restated Agreement of Limited Partnership of the
Partnership, as amended. The undersigned hereby represents, warrants, and
certifies that the undersigned: (a) has title to such 2005 LTIP Units, free and
clear of the rights or interests of any other person or entity other than the
Partnership; (b) has the full right, power, and authority to cause the
conversion of such 2005 LTIP Units as provided herein; and (c) has obtained the
consent or approval of all persons or entities, if any, having the right to
consent or approve such conversion.
Name of Holder: _______________________________________________________________
(Please Print: Exact Name as Registered with Partnership)
Number of 2005 LTIP Units to be Converted: _______________
Date of this Notice: _____________________________________
______________________________________________________________________
(Signature of Holder: Sign Exact Name as Registered with Partnership)
______________________________________________________________________
(Street Address)
______________________________________________________________________
(City) (State) (Zip Code)
Signature Guaranteed by:______________________________________________
Exh. A
Exhibit B
NOTICE OF ELECTION BY PARTNERSHIP TO FORCE CONVERSION
OF 2005 LTIP UNITS INTO COMMON UNITS
Reckson Operating Partnership, L.P. (the "Partnership") hereby
irrevocably elects to cause the number of 2005 LTIP Units held by the holder of
2005 LTIP Units set forth below to be converted into Common Units in accordance
with the terms of the Amended and Restated Agreement of Limited Partnership of
the Partnership.
Name of Holder: _______________________________________________________________
(Please Print: Exact Name as Registered with Partnership)
Number of 2005 LTIP Units to be Converted: _______________
Date of this Notice: _____________________________________
Exh. B
