EXECUTION COPY
LNR PROPERTY CORPORATION
$50,000,000
7.25% SENIOR SUBORDINATED NOTES DUE 2013
PURCHASE AGREEMENT
November 17, 2003
DEUTSCHE BANK SECURITIES INC.
00 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
LNR Property Corporation ("LNR"), a Delaware corporation, hereby
confirms its agreement with Deutsche Bank Securities Inc. (the "Initial
Purchaser"), as set forth below.
1. The Notes. Subject to the terms and conditions herein contained,
LNR proposes to issue and sell to the Initial Purchaser $50,000,000 aggregate
principal amount of LNR's 7.25% Senior Subordinated Notes due 2013 (the
"Notes"). The Notes are to be issued pursuant to the terms of an Indenture dated
as of October 29, 2003 (the "Indenture") between LNR and U.S. Bank Trust
National Association, as trustee (the "Trustee"). Pursuant to the terms and
conditions of those certain Purchase Agreements, dated October 15, 2003 and
October 22, 2003, by and among LNR on the one hand and the initial purchasers
named therein on the other, LNR previously issued and sold $350,000,000
aggregate principal amount of LNR's 7.25% Senior Subordinated Notes due 2013.
The Notes will be offered and sold to you without being registered
under the Securities Act of 1933, as amended (the "Act"), in reliance on
exemptions therefrom.
In connection with the sale of the Notes, LNR has prepared an
offering memorandum dated November 17, 2003 (including the information
incorporated by reference therein, the "Memorandum"), setting forth or
incorporating a description of the terms of the Notes, the terms of the offering
of the Notes, a description of LNR and any material developments relating to LNR
occurring after the date of the most recent historical financial statements
incorporated by reference therein. Unless stated to the contrary, all references
herein to the Memorandum are to the Memorandum on the date hereof and shall not
be deemed to include any amendment or supplement thereto subsequent to the date
hereof and any references herein to the terms "amend," "amendment" or
"supplement" with respect to the Memorandum shall be deemed to refer to and
include any information filed under the Securities Exchange Act of 1934, as
amended (the "Exchange Act") subsequent to the date hereof which is incorporated
by reference therein. LNR hereby confirms that it has authorized the use of the
Memorandum, and any amendment or supplement thereto, in connection with the
resale of the Notes by the Initial Purchaser.
LNR understands that the Initial Purchaser proposes to make an
offering of the Notes only on the terms and in the manner set forth in the
Memorandum and Section 8 hereof as soon as the Initial Purchaser deems advisable
after this Agreement has been executed and delivered, to persons in the United
States whom the Initial Purchaser reasonably believes to be qualified
institutional buyers ("Qualified Institutional Buyers" or "QIBs") as defined in
Rule 144A under the Act, as such rule may be amended from time to time ("Rule
144A"), and outside the United States to certain persons in reliance on
Regulation S under the Act ("Regulation S").
The Initial Purchaser and the direct and indirect transferees of the
Notes will be entitled to the benefits of the Registration Rights Agreement,
substantially in the form attached hereto as Exhibit A (the "Registration Rights
Agreement"), to be dated as of the Closing Date (as defined in Section 3 below),
pursuant to which LNR will agree, among other things, to file one or more
registration statements (each, a "Registration Statement") with the Securities
and Exchange Commission (the "Commission") registering under the Act resales of
the Notes or the exchange by LNR of Exchange Notes (as defined in the
Registration Rights Agreement) for the Notes.
2. Representations and Warranties of LNR. LNR represents and
warrants to and agrees with the Initial Purchaser that:
(a) Neither the Memorandum nor any amendment or supplement thereto
as of the date thereof and at all times subsequent thereto up to the Closing
Date contained or will contain any untrue statement of a material fact or
omitted or will omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, except that the representations and warranties set forth in this
Section 2(a) do not apply to statements or omissions made in reliance upon and
in conformity with information relating to the Initial Purchaser or to its
resale of the Notes furnished to LNR in writing by the Initial Purchaser
expressly for use in the Memorandum or any amendment or supplement thereto.
(b) LNR has been duly organized and is validly existing as a
corporation in good standing under the laws of the State of Delaware, with
corporate power and authority to own or lease its properties and conduct its
business as described in the Memorandum. Each of the Subsidiaries (as defined
below) and the Investment Affiliates (as defined below) has been duly organized
and is validly existing as a corporation, limited liability company or
partnership, as applicable, in good standing or active status under the laws of
the jurisdiction of its incorporation or formation, with corporate or other
power and authority to own or lease its properties and conduct its business as
described in the Memorandum. Each of LNR, the Subsidiaries and the Investment
Affiliates is duly qualified to transact business in all jurisdictions in which
the conduct of its business requires such qualification, except where the
failure to be so qualified would not, individually or in the aggregate, have a
material adverse effect on the condition, financial or otherwise, of LNR and the
Subsidiaries taken as a whole or the business, management, properties, assets,
rights, operations or prospects of LNR and the Subsidiaries taken as a whole (a
"Material Adverse Effect"). The Subsidiaries listed on Exhibit 21.1 to LNR's
Annual Report on Form 10-K for the year ended November 30, 2002 constitute all
the Subsidiaries at November 30, 2002 other than Subsidiaries that, if
considered in the aggregate as a single subsidiary, would not have constituted a
"significant subsidiary" of LNR at
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that date, within the meaning of Rule 1-02(w) of the Commission's Regulation
S-X. There are no such "significant subsidiaries" of LNR other than the
Designated Subsidiaries (as defined below) and Investment Affiliates (as defined
below). The Land Partnerships (as defined below) and Madison Square (as defined
below) constitute all the Investment Affiliates. The outstanding shares of
capital stock of each of the Subsidiaries that is a corporation have been duly
authorized and validly issued, are fully paid and non-assessable and all of the
outstanding ownership interests in all of the Subsidiaries are owned by LNR or
another Subsidiary (except to the extent set forth as "minority interests" on
the consolidated balance sheet of LNR) free and clear of all liens, encumbrances
and equities and claims (other than liens created pursuant to the Credit
Agreement (as defined below)); and no options, warrants or other rights to
purchase, agreements or other obligations to issue or other rights to convert
any obligations into shares of capital stock or ownership interests in the
Subsidiaries or the Investment Affiliates are outstanding. LNR indirectly owns a
50% interest in Lennar Land Partners and a 50% interest in Lennar Land Partners
II, each a Florida general partnership (each, a "Land Partnership" and
collectively, the "Land Partnerships"). LNR indirectly owns a 25.78% interest in
Madison Square Company, LLC, a limited liability company organized under the
laws of the state of Delaware ("Madison Square"). LNR's interests in the Land
Partnerships and in Madison Square have been duly authorized and validly issued
and are owned by LNR or a Subsidiary indirectly wholly owned by LNR, free and
clear of all liens, encumbrances and equities and claims. For purposes of this
Agreement, a "Subsidiary" means a direct or indirect "subsidiary" of LNR, as
such term is defined in Rule 405 under the Act. For purposes of this Agreement,
the following Subsidiaries are "Designated Subsidiaries": Leisure Colony
Management Corp., LNR Affordable Housing Inc., Lennar Capital Services, Inc.,
LNR Land Partners SUB, Inc., LNR Land Partners SUB II, Inc., LNR DSHI Interhold,
Inc., Delaware Securities Holdings, Inc., LNR CMBS Holdings, Inc., LNR Madison
Square, Inc. and LNR Florida Funding, Inc. For purposes of this Agreement, an
"Investment Affiliate" means any entity in which LNR, directly or indirectly,
has an ownership interest, (i) the financial results of which are not
consolidated under generally accepted accounting principles with the financial
results of LNR on the consolidated financial statements of LNR and (ii) which is
a "significant subsidiary" of LNR, as such term is defined within Rule 1-02(w)
of the Commission's Regulation S-X. For purposes of this Agreement, the "Credit
Agreement" means the Third Amended and Restated Revolving Credit Agreement dated
as of November 27, 2002 among LNR, certain Subsidiaries, the parties thereto in
their capacities as lenders thereunder and Bank of America N.A., as
administrative agent.
(c) The information set forth under the caption "Capitalization" in
the Memorandum is true and correct as of its date (after giving effect to any
applicable adjustments described in the caption). The outstanding shares of
LNR's Common Stock, par value $.10 per share ("Common Stock"), and LNR's Class B
Common Stock, par value $.10 per share ("Class B Common Stock"), have been duly
authorized and validly issued and are fully paid and non-assessable and no
preemptive rights of stockholders exist with respect to the capital stock or any
other securities of LNR or the issue and sale thereof. Neither the offering or
sale of the Notes as contemplated by this Agreement nor the filing of any
Registration Statement contemplated by the Registration Rights Agreement, gives
rise or shall give rise to any rights, other than those that have been waived or
satisfied, for or relating to the registration of any other securities of LNR.
(d) LNR has all requisite corporate power and authority to execute,
deliver and perform each of its obligations under the Notes, the Exchange Notes
and the Private
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Exchange Notes (as defined in the Registration Rights Agreement). LNR has duly
authorized the execution, delivery and performance of the Notes, the Exchange
Notes and the Private Exchange Notes. The Notes, when issued, and the Exchange
Notes and the Private Exchange Notes, if and when issued, shall be in the form
contemplated by the Indenture. The Notes, the Exchange Notes and the Private
Exchange Notes, when executed by LNR and authenticated by the Trustee in
accordance with the provisions of the Indenture and, in the case of the Notes,
when delivered to and paid for by the Initial Purchaser in accordance with the
terms of this Agreement or, in the case of the Exchange Notes or Private
Exchange Notes, when issued and delivered in exchange for the Notes in
accordance with the Registration Rights Agreement, will have been duly executed,
issued and delivered and shall constitute valid and legally binding obligations
of LNR (assuming the due authorization, execution and delivery of the Indenture
by the Trustee and the due authorization and delivery of the Notes, the Exchange
Notes and the Private Exchange Notes by the Trustee in accordance with the
Indenture), entitled to the benefits of the Indenture, and enforceable against
LNR in accordance with their terms, except that the enforcement thereof may be
subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or other similar laws now or hereafter in effect relating to
creditors' rights generally, and (ii) general principles of equity and the
discretion of the court before which any proceeding therefor may be brought
(regardless of whether such enforcement is considered in a proceeding in equity
or at law).
(e) LNR has all requisite corporate power and authority to perform
its obligations under the Indenture. When LNR executed and delivered the
Indenture, LNR had the requisite corporate power and authority to execute and
deliver the Indenture. The Indenture meets the requirements for qualification
under the Trust Indenture Act of 1939, as amended (the "Trust Indenture Act").
The Indenture has been duly and validly authorized, executed and delivered by
LNR, and (assuming the due authorization, execution and delivery by the
Trustee), constitutes a valid and legally binding agreement of LNR, enforceable
against LNR in accordance with its terms, except that the enforcement thereof
may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws now or hereafter in effect relating
to creditors' rights generally and (ii) general principles of equity and the
discretion of the court before which any proceeding therefor may be brought
(regardless of whether such enforcement is considered in a proceeding in equity
or at law).
(f) Each of the Indenture, the Notes, and the Registration Rights
Agreement conforms in all material respects to the description thereof contained
or incorporated by reference in the Memorandum.
(g) LNR has all requisite corporate power and authority to execute,
deliver and perform its obligations under the Registration Rights Agreement. The
Registration Rights Agreement has been duly and validly authorized by LNR and,
when executed and delivered by LNR (assuming due authorization, execution and
delivery by the Initial Purchaser), will constitute a valid and legally binding
agreement of LNR, enforceable against LNR in accordance with its terms, except
that (A) the enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws now or
hereafter in effect relating to creditors' rights generally and (ii) general
principles of equity and the discretion of the court before which any proceeding
therefor may be brought (regardless of whether such enforcement is considered in
a proceeding in equity or at law) and (B) any rights to
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indemnity or contribution thereunder may be limited by federal and state
securities laws and public policy considerations.
(h) LNR has all requisite corporate power and authority to execute,
deliver and perform its obligations under this Agreement and to consummate the
transactions contemplated hereby. This Agreement and the consummation by LNR of
the transactions contemplated hereby have been duly and validly authorized by
LNR. This Agreement has been duly executed and delivered by LNR.
(i) The consolidated financial statements of LNR and the
Subsidiaries, together with related notes and schedules incorporated by
reference in the Memorandum present fairly the financial position and the
results of operations and cash flows of LNR and the consolidated Subsidiaries,
at the indicated dates and for the indicated periods. Such financial statements
and related schedules have been prepared in accordance with generally accepted
accounting principles, consistently applied throughout the periods involved,
except as disclosed therein, and all adjustments necessary for a fair
presentation of results for such periods have been made. The summary financial
and statistical data included or incorporated by reference in the Memorandum
presents fairly the information shown therein and such data has been compiled on
a basis consistent with the financial statements presented therein and the books
and records of LNR. The pro forma financial statements and other pro forma
financial information included or incorporated by reference in the Memorandum
present fairly the information shown therein, have been prepared in accordance
with the Commission's rules and guidelines with respect to pro forma financial
statements, have been properly compiled on the pro forma bases described
therein, and, in the opinion of LNR, the assumptions used in the preparation
thereof are reasonable and the adjustments used therein are appropriate to give
effect to the transactions or circumstances referred to therein.
(j) Deloitte & Touche LLP, who has certified certain of the
financial statements of LNR as set forth in its reports incorporated by
reference in the Memorandum, is an independent public accountant as required by
the Act and the applicable rules and regulations thereunder.
(k) There is no action, suit, claim or proceeding pending or, to the
knowledge of LNR, threatened against LNR, any of the Subsidiaries or Investment
Affiliates before any court or administrative agency or otherwise which if
determined adversely to LNR, any of its Subsidiaries or Investment Affiliates
might result in any material adverse change in the earnings, business,
management, properties, assets, rights, operations, condition (financial or
otherwise) or prospects of LNR and the Subsidiaries taken as a whole or might
prevent the consummation of the transactions contemplated hereby or in the
Indenture, the Notes or the Registration Rights Agreement, except as set forth
in the Memorandum.
(l) LNR, the Subsidiaries and the Investment Affiliates have good
and marketable title to all of the properties and assets described in the
Memorandum, subject to no lien, mortgage, pledge, charge or encumbrance of any
kind except as described in the Memorandum or which are not material in amount.
LNR, the Subsidiaries and the Investment Affiliates occupy their leased
properties under valid and binding leases conforming in all material respects to
the description thereof set forth in the Memorandum.
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(m) LNR, the Subsidiaries and the Investment Affiliates have timely
filed all Federal, State, local and foreign tax returns that have been required
to be filed (taking into account any applicable extensions) and have paid all
taxes indicated by said returns and all assessments received by them or any of
them to the extent that such taxes have become due and are not being contested
in good faith and for which an adequate reserve for accrual has been established
in accordance with generally accepted accounting principles. All tax liabilities
of LNR and the Subsidiaries have been adequately provided for in the
consolidated financial statements of LNR, and LNR does not know of any actual or
proposed additional material tax assessments.
(n) Since the respective dates as of which information is given in
the Memorandum there has not been any material adverse change or any development
involving a prospective material adverse change in or otherwise materially
affecting the earnings, business, management, properties, assets, rights,
operations, condition (financial or otherwise), or prospects of LNR and its
Subsidiaries taken as a whole, whether or not occurring in the ordinary course
of business, and there has not been any material transaction entered into or any
material transaction that is probable of being entered into by LNR, the
Subsidiaries or the Investment Affiliates, other than transactions in the
ordinary course of business and changes and transactions described in the
Memorandum. LNR, the Subsidiaries and the Investment Affiliates have no material
contingent obligations that are not disclosed in LNR's financial statements
which are incorporated by reference in the Memorandum.
(o) Neither LNR, nor any of the Subsidiaries or Investment
Affiliates is or with the giving of notice or lapse of time or both, will be, in
violation of or in default under its certificate of incorporation or by-laws or
other comparable documents or under any agreement, lease, contract, indenture or
other instrument or obligation to which it is a party or by which it, or any of
its properties, is bound, which default is of material significance in respect
of the condition, financial or otherwise, of LNR and its Subsidiaries taken as a
whole or the business, management, properties, assets, rights, operations,
condition (financial or otherwise) or prospects of LNR and the Subsidiaries
taken as a whole. The execution and delivery of this Agreement, the Indenture,
the Notes, and the Registration Rights Agreement, the issuance and sale of the
Notes to the Initial Purchaser by LNR pursuant to this Agreement, the issuance
by LNR of the Exchange Notes and the Private Exchange Notes upon the exchange of
the Notes contemplated by the Registration Rights Agreement and the consummation
of the transactions herein and therein contemplated and the fulfillment of the
terms hereof and thereof shall not conflict with or result in a breach of any of
the terms or provisions of, or constitute a default under (or an event that with
the giving of notice or lapse of time or both would constitute a default under),
or result in the imposition or creation of (or the obligation to create or
impose) a lien on any property or assets of LNR, any Subsidiary or Investment
Affiliate with respect to, any indenture, mortgage, deed of trust or other
agreement or instrument to which LNR, any Subsidiary or Investment Affiliate is
a party, or of the certificate of incorporation or by-laws or other comparable
documents of LNR, any Subsidiary or Investment Affiliate or any order, rule or
regulation applicable to LNR, any Subsidiary or Investment Affiliate of any
court or of any regulatory body or administrative agency or other governmental
body having jurisdiction.
(p) Each approval, consent, order, authorization, designation,
declaration or filing by or with any regulatory, administrative or other
governmental body necessary in
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connection with the execution and delivery by LNR of this Agreement, the
Indenture, the Notes, the Registration Rights Agreement and the consummation of
the transactions herein and therein contemplated has been obtained or made and
is in full force and effect, except for (A) the qualification of the Indenture
under the Trust Indenture Act and compliance with state securities or Blue Sky
laws, in each case as contemplated by the Registration Rights Agreement, (B) in
the case of performance of the Registration Rights Agreement, the filing with
the Commission of, and the receipt of an order of the Commission declaring
effective, the Exchange Offer Registration Statement or any Shelf Registration
Statement (each as defined in the Registration Rights Agreement), and (C) such
additional steps as may be necessary to qualify the Notes for offering by the
Initial Purchaser under state securities or Blue Sky laws.
(q) Each of LNR, the Subsidiaries and the Investment Affiliates
holds all material licenses, certificates and permits (collectively, "Permits")
from governmental authorities that are necessary to the conduct of its
businesses, and has fulfilled and performed in all material respects its
obligations with respect to the Permits; and neither LNR nor any of the
Subsidiaries or Investment Affiliates has infringed any patents, patent rights,
trade names, trademarks or copyrights, which infringement is material to the
business of LNR and the Subsidiaries taken as a whole. LNR knows of no material
infringement by others of patents, patent rights, trade names, trademarks or
copyrights owned by or licensed to LNR or any of the Subsidiaries or Investment
Affiliates.
(r) Neither LNR, nor to LNR's knowledge, any of its affiliates, has
taken or will take, directly or indirectly, any action designed to cause or
result in, or which has constituted or which might reasonably be expected to
constitute, the stabilization or manipulation of the price of the Notes to
facilitate the sale or resale of the Notes. LNR acknowledges that the Initial
Purchaser may engage in stabilizing transactions in the Notes in accordance with
Regulation M under the Exchange Act.
(s) Neither LNR nor any Subsidiary is, and after giving effect to
the offering and sale of the Notes and the application of the proceeds as
described in the Memorandum will not be, an "investment company" within the
meaning of such term under the Investment Company Act of 1940, as amended (the
"Investment Company Act"), and the rules and regulations of the Commission
thereunder.
(t) LNR maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management's general or specific authorization; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain accountability for assets; (iii) access to assets is permitted only in
accordance with management's general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.
(u) Neither LNR nor any of the Subsidiaries nor any agent acting on
their behalf has taken or will take any action that might cause this Agreement
or the sale of the Notes to violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System, in each case as in effect, or as the
same may hereafter be in effect, on the Closing Date.
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(v) Except as described in the Memorandum or as would not,
individually or in the aggregate, have a Material Adverse Effect, (i) each of
LNR, the Subsidiaries and the Investment Affiliates is in compliance with and
not subject to liability under applicable Environmental Laws (as defined below),
(ii) each of LNR, the Subsidiaries and the Investment Affiliates has made all
filings and provided all notices required under any applicable Environmental
Law, and is and has at all times since their issuance been in compliance with
all Permits required under any applicable Environmental Laws and each such
filing, notice and Permit is in full force and effect, (iii) there is no civil,
criminal or administrative action, suit, demand, claim, hearing, notice of
violation, investigation, proceeding, notice or demand letter or request for
information pending or, to the knowledge of LNR, threatened against LNR, any
Subsidiary or Investment Affiliates under any Environmental Law, (iv) no lien,
charge, encumbrance or restriction has been recorded under any Environmental Law
with respect to any assets, facility or property owned, operated, leased or
controlled by LNR, any Subsidiary or any Investment Affiliate, (v) neither LNR,
nor any Subsidiary or Investment Affiliate has received notice that it has been
identified as a potentially responsible party under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended
("CERCLA"), or any comparable state law and (vi) no property or facility of LNR
or any Subsidiary or Investment Affiliates is (A) listed or, to the knowledge of
LNR, proposed for listing on the National Priorities List under CERCLA or (B)
listed in the Comprehensive Environmental Response, Compensation, Liability
Information System List promulgated pursuant to CERCLA, or on any comparable
list maintained by any state or local governmental authority.
For purposes of this Agreement, "Environmental Laws" means the
common law and all applicable federal, state and local laws or regulations,
codes, orders, decrees, judgments or injunctions issued, promulgated, approved
or entered thereunder, relating to pollution or protection of public or employee
health and safety or the environment, including, without limitation, laws
relating to (i) emissions, discharges, releases or threatened releases of
hazardous materials into the environment (including, without limitation, ambient
air, surface water, groundwater, land surface or subsurface strata), (ii) the
manufacture, processing, distribution, use, generation, treatment, storage,
disposal, transport or handling of hazardous materials, and (iii) underground
and aboveground storage tanks, and related piping, and emissions, discharges,
releases or threatened releases therefrom.
(w) There is no strike, labor dispute, slowdown or work stoppage
with the employees of LNR, the Subsidiaries or the Investment Affiliates that is
pending or, to the knowledge of LNR, threatened, that would have a Material
Adverse Effect.
(x) LNR, its Subsidiaries and the Investment Affiliates carry, or
are covered by, insurance in such amounts and covering such risks as is adequate
for the conduct of their respective businesses and the value of their respective
properties and as is customary for companies engaged in similar industries.
(y) LNR is in compliance in all material respects with all presently
applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder
("ERISA"); no "reportable event" (as defined in ERISA) has occurred with respect
to any "pension plan" (as defined in ERISA) for which LNR would have any
liability; LNR has not incurred and does not expect to incur liability
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under (i) Title IV of ERISA with respect to termination of, or withdrawal from,
any "pension plan" or (ii) Sections 412 or 4971 of the Internal Revenue Code of
1986, as amended, including the regulations and published interpretations
thereunder (the "Code"); and each "pension plan" for which LNR would have any
liability that is intended to be qualified under Section 401(a) of the Code is
so qualified in all material respects and nothing has occurred, whether by
action or by failure to act, which would cause the loss of such qualification.
(z) To the best of LNR's knowledge, there are no affiliations or
associations between any member of the NASD and any of LNR's officers, directors
or 5% or greater security holders, except as set forth in the Memorandum.
(aa) Neither LNR nor any of its Affiliates (as defined in Rule
501(b) of Regulation D under the Act) 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 Act) which is or could be
integrated with the sale of the Notes in a manner that would require the
registration under the Act of the Notes or (ii) engaged in any form of general
solicitation or general advertising (as those terms are used in Regulation D
under the Act) in connection with the offering of the Notes or in any manner
involving a public offering within the meaning of Section 4(2) of the Act.
(bb) Assuming the accuracy of the representations and warranties of
the Initial Purchaser in Section 8 hereof, it is not necessary in connection
with the offer, sale and delivery of the Notes to the Initial Purchaser in the
manner contemplated by this Agreement to register any of the Notes under the Act
or to qualify the Indenture under the Trust Indenture Act.
(cc) The Notes are not of the same class (within the meaning of Rule
144A) as any class of LNR's securities which are listed on a national securities
exchange registered under Section 6 of the Exchange Act, or quoted in a U.S.
automated inter-dealer quotation system.
(dd) LNR has complied with all provisions of Section 517.075 Florida
Statutes, relating to doing business with the Government of Cuba or with any
person or affiliate located in Cuba.
(ee) Except as disclosed in the Memorandum there are no business
relationships or related party transactions which would be required to be
disclosed in a registration statement under the Act by Item 404 of Regulation
S-K of the Commission, and each business relationship or related party
transaction described in the Memorandum is a fair and accurate description of
the relationships and transactions so described in all material respects.
(ff) Neither LNR nor any of its Affiliates nor any person acting on
its or their behalf (other than the Initial Purchaser) has engaged in any
directed selling efforts (as that term is defined in Regulation S) with respect
to the Notes; each of LNR and its Affiliates and any person acting on its or
their behalf (other than the Initial Purchaser) have complied with the offering
restrictions requirement of Regulation S.
(gg) LNR is subject to the reporting requirements of Section 13 or
Section 15(d) of the Exchange Act and is eligible to file a Registration
Statement on Form S-3. Each document filed, or to be filed prior to the closing
of transactions contemplated by this
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Agreement, by LNR pursuant to the Exchange Act and incorporated, or to be
incorporated, by reference in the Memorandum (or any amendment or supplement
thereto) at the time filed with the Commission conformed, or will conform, in
all material respects with the Exchange Act and the applicable rules and
regulations thereunder.
(hh) The Notes satisfy the eligibility requirements of Rule
144A(d)(3) under the Act.
(ii) In October 2003, LNR purchased a total of $131.6 million
principal amount of its 10 1/2% Senior Subordinated Notes due 2009. On October
15, 2003, LNR commenced a tender offer for all its 10 1/2% Senior Subordinated
Notes due 2009 that remained outstanding. A total of $73.1 million principal
amount were tendered and delivered, and approximately $45.3 million principal
amount remains outstanding.
(jj) LNR has not filed a Registration Statement covering the
$350,000,000 of LNR's 7.25% Senior Subordinated Notes due 2013 sold on October
29, 2003.
Any certificate signed by any officer of LNR and delivered to the
Initial Purchaser or to counsel for the Initial Purchaser shall be deemed a
representation and warranty by LNR to the Initial Purchaser as to the matters
covered thereby.
3. Purchase, Sale and Delivery of the Notes. On the basis of the
representations, warranties, agreements and covenants herein contained and
subject to the terms and conditions herein set forth, LNR agrees to issue and
sell to the Initial Purchaser, and the Initial Purchaser agrees to purchase from
LNR, the Notes at a purchase price of 99.375% of their principal amount plus
interest accrued on the Notes from October 29, 2003 to the Closing Date. One or
more global securities representing the Notes shall be registered by the Trustee
in the name of the nominee of The Depository Trust Company ("DTC"), Cede & Co.,
credited to the accounts of such of its participants as the Initial Purchaser
shall request, upon notice to LNR at least 48 hours prior to the Closing Date
(as defined below), with any transfer taxes payable in connection with the
transfer of the Notes to the Initial Purchaser duly paid, and deposited with the
Trustee as custodian for DTC on the Closing Date, against payment by or on
behalf of the Initial Purchaser to the account of LNR of the aggregate purchase
price therefor by wire transfer in immediately available funds. Delivery of and
payment for the Notes shall be made at the offices of Xxxxxxx Xxxx & Xxxxxxxxx
LLP, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, XX 00000, at 10:00 A.M., New York City time,
on December 2, 2003, or at such other place, time or date not later than five
business days thereafter as the Initial Purchaser and LNR may agree upon. Such
time and date of delivery against payment are herein referred to as the "Closing
Date." (As used herein, "business day" means a day on which The New York Stock
Exchange is open for trading and on which banks in New York are open for
business and are not permitted by law or executive order to be closed.)
4. Offering by the Initial Purchaser.
(a) It is understood that the Initial Purchaser will offer and sell
the Notes in accordance with this Section as soon as they deem it advisable to
do so. The Notes are to be
-10-
initially offered at the offering price set forth in the Memorandum. The Initial
Purchaser may from time to time thereafter change the price and other selling
terms.
(b) The Initial Purchaser represents and agrees that neither it nor
any person acting on its behalf has engaged or will engage in any form of
general solicitation or general advertising (as those terms are used in
Regulation D under the Act).
(c) The Initial Purchaser also represents and agrees that it has not
entered and will not enter into any contractual arrangement with any distributor
with respect to the distribution or delivery of the Notes, except with its
affiliates or with the prior written consent of LNR.
5. Covenants of LNR. LNR covenants and agrees with the Initial
Purchaser that:
(a) LNR will cooperate with the Initial Purchaser in arranging for
the qualification of the Notes for offering and sale under the securities or
"Blue Sky" laws of such jurisdictions as the Initial Purchaser may designate and
will continue such qualification in effect for as long as may be necessary to
complete the resale of the Notes by the Initial Purchaser; provided, however,
that in connection therewith LNR shall not be required to qualify as a foreign
corporation or to execute a general consent to service of process in any
jurisdiction.
(b) If, at any time prior to the completion of the sale by the
Initial Purchaser of the Notes or the Private Exchange Notes, any event occurs
or information becomes known as a result of which the Memorandum as then amended
or supplemented would include an untrue statement of a material fact, or omit to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, or if for any
other reason it is necessary at any time to amend or supplement the Memorandum
in order to comply with applicable law, LNR will promptly notify the Initial
Purchaser thereof and will prepare, at LNR's expense, an amendment or supplement
to the Memorandum that corrects such statement or omission or effects such
compliance.
(c) LNR will, without charge, provide to the Initial Purchaser and
to counsel for the Initial Purchaser as many copies of the Memorandum, any
documents incorporated by reference in it and any amendment or supplement to it,
as the Initial Purchaser may reasonably request.
(d) LNR shall apply the net proceeds from the sale of the Notes as
set forth under "Use of Proceeds" in the Memorandum.
(e) For so long as any Notes remain outstanding, LNR will furnish to
the Initial Purchaser copies of all reports and other communications (financial
or otherwise) furnished by LNR to the Trustee or the holders of the Notes and,
as soon as available, copies of any reports or financial statements filed by LNR
with the Commission or furnished to any national securities exchange on which
any class of securities of LNR may be listed.
(f) Prior to the Closing Date, LNR will furnish to the Initial
Purchaser, as soon as they have been prepared by or are available to LNR, a copy
of any unaudited interim
-11-
consolidated financial statements of LNR for any period subsequent to the period
covered by its most recent financial statements appearing or incorporated in the
Memorandum.
(g) Neither LNR nor any of its Affiliates will sell, offer for sale
or solicit offers to buy or otherwise negotiate in respect of any "security" (as
defined in the Act) that could be integrated with the sale of the Notes in a
manner that would require the registration under the Act of the Notes.
(h) LNR will not, and will not permit any of the Subsidiaries to,
engage in any form of general solicitation or general advertising (as those
terms are used in Regulation D under the Act) in connection with the offering of
the Notes or in any manner involving a public offering within the meaning of
Section 4(2) of the Act.
(i) LNR will furnish to the Initial Purchaser a copy of each
proposed amendment or supplement to the Memorandum, and not use any such
proposed amendment or supplement to which the Initial Purchaser reasonably
objects in writing; after the date hereof and prior to the completion of the
distribution of the Notes by the Initial Purchaser (as determined by the Initial
Purchaser), LNR will not file any document under the Exchange Act which is
incorporated by reference in the Memorandum, in each case unless the Initial
Purchaser previously has been advised of, and furnished with a copy within a
reasonable period of time prior to, the proposed filing. LNR will advise the
Initial Purchaser of the time when any amendment or supplement to the Memorandum
has been made or when any document filed under the Exchange Act which is
incorporated by reference in the Memorandum has been filed with the Commission
and will provide evidence satisfactory to the Initial Purchaser of each such
amendment, supplement or filing.
(j) LNR will not, nor will it permit any of its Affiliates (as
defined in Rule 501(b) under the Act) to, during the two-year period following
the Closing Date, resell any Notes that have been acquired by any of them.
(k) Except as contemplated by the Registration Rights Agreement,
neither LNR, nor any of its respective Affiliates, nor any authorized person
acting on its or their behalf will, directly or indirectly, make offers or sales
of any security, or solicit offers to buy any security, under circumstances that
would require the registration of the Notes or the Exchange Notes issuable upon
exchange thereof under the Act.
(l) Neither LNR nor any of its respective Affiliates, nor any person
acting on its or their behalf will engage in any form of general solicitation or
general advertising (as those terms are used in Rule 502(c) under the Act) in
connection with any offer or sale of the Notes in the United States.
(m) So long as any of the Notes are "restricted securities" within
the meaning of Rule 144(a)(3) under the Act, LNR will, during any period in
which it is not subject to and in compliance with Section 13 or 15(d) of the
Exchange Act, provide to each holder of such restricted securities and to each
prospective purchaser (as designated by such holder) of such restricted
securities, upon the request of such holder or prospective purchaser, any
information required to be provided by Rule 144A(d)(4) under the Act. This
covenant is intended to be for
-12-
the benefit of the holders, and the prospective purchasers designated by such
holders, from time to time of such restricted securities.
(n) LNR will cooperate with the Initial Purchaser and use all
reasonable efforts to (i) permit the Notes to be eligible for clearance and
settlement through the facilities of DTC and such other clearance and settlement
systems that the Initial Purchaser may designate and (ii) arrange to have the
Notes be designated as PORTAL-eligible securities in accordance with the rules
and regulations of the NASD relating to the PORTAL Market.
(o) In connection with any Notes offered and sold in an offshore
transaction (as defined in Regulation S), LNR will not register or permit to be
registered any transfer of such Notes not made in accordance with the provisions
of Regulation S and will not, except in accordance with the provisions of
Regulation S, if applicable, issue any such Notes in the form of definitive
securities.
(p) LNR will not take, directly or indirectly, any action designed
to cause or result in, or that has constituted or could reasonably be expected
to constitute, the unlawful stabilization or manipulation of the price of any
securities of LNR.
(q) For as long as any Notes remain outstanding, LNR shall take such
steps as shall be necessary to ensure that neither LNR nor any subsidiary of LNR
shall become an "investment company" within the meaning of the Investment
Company Act, and the rules and regulations thereunder if LNR's becoming an
investment company would affect the ability of LNR to perform any of its
obligations with regard to the Notes or would affect any holder's rights with
regard to the Notes or restrict any holder's ability to transfer the Notes.
6. Expenses. LNR agrees to pay all costs and expenses incident to
the performance of its obligations under this Agreement, whether or not the
transactions contemplated herein are consummated or this Agreement is terminated
pursuant to Section 11 hereof, including all costs and expenses incident to: (i)
the printing, word processing or other production of documents with respect to
such transactions, including any costs of printing the Memorandum and any
amendments or supplements thereto, and any "Blue Sky" memoranda, (ii) all
arrangements relating to the delivery to the Initial Purchaser of copies of the
foregoing documents, (iii) the fees and disbursements of the counsel, the
accountants and any other experts or advisors retained by LNR, (iv) the
preparation (including printing), issuance and delivery to the Initial Purchaser
of the Notes, (v) the qualification of the Notes under state securities and
"Blue Sky" laws, including filing fees and reasonable fees and disbursements of
counsel for the Initial Purchaser relating thereto, (vi) the expenses of LNR in
connection with any meetings with prospective investors in the Notes, (vii) the
fees and expenses of the Trustee, including fees and expenses of its counsel,
(viii) all expenses and listing fees incurred in connection with the application
for quotation of the Notes on the PORTAL Market and (ix) any fees charged by
investment rating agencies for the rating of the Notes.
If the issuance and sale of the Notes provided for herein is not
consummated because any condition to the obligation of the Initial Purchaser set
forth in Section 7 hereof is not satisfied, because this Agreement is terminated
pursuant to Sections 11(a)(i)(y) or 11(a)(v) hereof or because of any failure,
refusal or inability on the part of LNR to perform all obligations
-13-
and satisfy all conditions on its part to be performed or satisfied hereunder
(other than solely by reason of a default by the Initial Purchaser of its
obligations hereunder after all conditions hereunder have been satisfied in
accordance herewith), LNR will promptly reimburse the Initial Purchaser upon
demand for reasonable out-of-pocket expenses (including fees, disbursements and
charges of Xxxxxxx Xxxx & Xxxxxxxxx LLP, counsel for the Initial Purchaser) that
shall have been incurred by the Initial Purchaser in connection with the
proposed purchase and sale of the Notes but LNR shall not in any event be liable
the Initial Purchaser for damages on account of loss of anticipated profits from
the sale by it of the Notes.
7. Conditions of the Initial Purchaser's Obligations. The obligation
of the Initial Purchaser to purchase the Notes on the Closing Date is subject to
the accuracy, as of the Closing Date, of the representations and warranties of
LNR contained herein, and to the performance by LNR of its covenants and
obligations hereunder and to the following additional conditions (any of which
may be waived in writing by the Initial Purchaser):
(a) On the Closing Date the Initial Purchaser shall have received
the opinions, dated as of the Closing Date and addressed to the Initial
Purchaser (and stating that it may be relied upon by counsel to the Initial
Purchaser), of Xxxxxxxx Chance US LLP, counsel for LNR, and Bilzin Xxxxxxx Xxxxx
Price & Xxxxxxx, LLP, special counsel to certain Designated Subsidiaries and the
Land Partnership, in form and substance satisfactory to counsel for the Initial
Purchaser, to the effect that:
(i) Each of LNR, the Designated Subsidiaries and the
Land Partnerships is duly organized, validly existing and, as to LNR
and the Designated Subsidiaries that are corporations, in good
standing under the laws of its jurisdiction of organization and, has
all requisite corporate or other power and authority to own, lease
and operate its properties and to conduct its business as described
in the Memorandum. Each of LNR, the Designated Subsidiaries and the
Land Partnerships is duly qualified to do business and in good
standing in each jurisdiction where the ownership or leasing of its
properties or the conduct of its business requires such
qualification and where LNR has informed such counsel the failure to
be so qualified would, individually or in the aggregate, have a
Material Adverse Effect.
(ii) LNR has the authorized capital stock as set forth
under "Capitalization" in the Memorandum; all of the outstanding
shares of Common Stock and Class B Common Stock of LNR and the
capital stock of each Designated Subsidiary have been duly
authorized and validly issued, are fully paid and nonassessable and
were not issued in violation of any preemptive or similar rights;
all of the outstanding shares of capital stock of the Designated
Subsidiaries are owned by LNR or another Subsidiary, insofar as such
counsel is aware, free and clear of all liens (other than those
created pursuant to the Credit Agreement), encumbrances, equities
and claims or restrictions on transferability (other than those
imposed by the Act and the securities or "Blue Sky" laws of certain
jurisdictions) or voting; LNR indirectly owns a 50% interest in each
Land Partnership; such interest in each Land Partnership has been
duly authorized and validly issued and is, insofar as such counsel
is aware, free and clear of all liens, encumbrances, equities and
claims.
-14-
(iii) Insofar as such counsel is aware, except as set
forth in the Memorandum or in a document incorporated by reference
into the Memorandum, (A) there are no outstanding options, warrants
or other rights to purchase from LNR or any Designated Subsidiary or
either Land Partnership shares of capital stock or ownership
interests in LNR or any Designated Subsidiary or ownership interests
in either Land Partnership, (B) other than LNR's Class B Common
Stock or as provided in the Registration Rights Agreement or either
of the Other Registration Rights Agreements (as defined in the
Registration Rights Agreement), there are no outstanding agreements
or other obligations of LNR or any Designated Subsidiary to issue,
or other rights to cause LNR or any Designated Subsidiary or either
Land Partnership to convert, any obligation into, or exchange any
securities for, shares of capital stock or ownership interests in
LNR or any Designated Subsidiary or ownership interests in either
Land Partnership and (C) except as provided in the Registration
Rights Agreement or either of the Other Registration Rights
Agreements, no holder of securities of LNR or any Designated
Subsidiary (other than the Notes) is entitled to have such
securities registered under a registration statement filed by LNR.
(iv) LNR has all requisite corporate power and authority
to execute, deliver and perform its obligations under the Notes, the
Exchange Notes, the Private Exchange Notes and the Registration
Rights Agreement and to perform its obligations under the Indenture.
(v) The Indenture is in sufficient form for
qualification under the Trust Indenture Act; the Indenture has been
duly and validly authorized, executed and delivered by LNR, and
(assuming the due authorization, execution and delivery of the
Indenture by the Trustee) constitutes the valid and legally binding
agreement of LNR, enforceable against LNR in accordance with its
terms, except to the extent that the enforcement thereof may be
affected by (i) bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws now or hereafter in
effect relating to creditors' rights generally and (ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought (regardless of whether such
enforcement is considered in a proceeding in equity or at law).
(vi) The Notes are in the form contemplated by the
Indenture. The Notes have each been duly and validly authorized,
executed and delivered by LNR and, when paid for by the Initial
Purchaser in accordance with the terms of this Agreement (assuming
the due authorization, execution and delivery of the Indenture by
the Trustee and due authentication and delivery of the Notes by the
Trustee in accordance with the Indenture), will constitute the valid
and legally binding obligations of LNR, entitled to the benefits of
the Indenture, and enforceable against LNR in accordance with their
terms, except to the extent that the enforcement thereof may be
affected by (i) bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws now or hereafter in
effect relating to creditors' rights generally and (ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought (regardless of whether such
enforcement is considered in a proceeding in equity or at law).
-15-
(vii) The Exchange Notes and the Private Exchange Notes
have been duly and validly authorized by LNR and when executed and
delivered by LNR, the exchange transactions described in, or
otherwise contemplated by the Registration Rights Agreement
(assuming the due authorization, execution and delivery of the
Indenture by the Trustee and due authentication and delivery of the
Exchange Notes and the Private Exchange Notes by the Trustee in
accordance with the Indenture), will constitute the valid and
legally binding obligations of LNR, entitled to the benefits of the
Indenture, and enforceable against LNR in accordance with their
terms, except to the extent that the enforcement thereof may be
affected by (i) bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws now or hereafter in
effect relating to creditors' rights generally and (ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought (regardless of whether such
enforcement is considered in a proceeding in equity or at law).
(viii) The Registration Rights Agreement has been duly
and validly authorized, executed and delivered by LNR, and (assuming
due authorization, execution and delivery thereof by the Initial
Purchaser) constitutes the valid and legally binding agreement of
LNR enforceable against LNR in accordance with its terms, except to
the extent that (A) the enforcement thereof may be affected by (i)
bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or other similar laws now or hereafter in effect relating
to creditors' rights generally and (ii) general principles of equity
and the discretion of the court before which any proceeding therefor
may be brought (regardless of whether such enforcement is considered
in a proceeding in equity or at law) and (B) any rights to indemnity
or contribution thereunder may be limited by federal or state
securities laws or public policy considerations.
(ix) LNR has all requisite corporate power and authority
to execute, deliver and perform its obligations under this Agreement
and to consummate the transactions contemplated hereby; this
Agreement and the consummation by LNR of the transactions
contemplated hereby have been duly and validly authorized by LNR.
This Agreement has been duly executed and delivered by LNR.
(x) The Indenture, the Notes and the Registration Rights
Agreement conform as to legal matters in all material respects to
the descriptions of them contained or incorporated by reference in
the Memorandum.
(xi) Insofar as such counsel is aware there are (i) no
legal or governmental proceedings pending or threatened to which LNR
or any Designated Subsidiary or either Land Partnership is a party
or to which the property or assets of LNR or any Designated
Subsidiary or either Land Partnership is subject which would be
required under the Act to be described in a registration statement
of LNR under the Act or in a prospectus meeting the requirements of
Section 10 of the Act, and are not described in the Memorandum, or
which seek to restrain, enjoin, prevent the consummation of or
otherwise challenge the issuance or sale of the Notes to be sold
hereunder or the consummation of the other transactions described in
the Memorandum and (ii) no contracts, agreements or other documents
to which LNR or any Designated Subsidiary or either Land Partnership
is a party which would be required under the Act to
-16-
be described in a registration statement or prospectus of LNR and
are not described in the Memorandum. The descriptions contained or
incorporated by reference in the Memorandum of the Credit Agreement,
the partnership agreements of each of the Land Partnerships, the
separation and distribution agreement relating to the spin-off of
LNR and the By-Laws of LNR are accurate in all material respects and
fairly summarize the provisions of such agreements and documents
which they purport to summarize.
(xii) Insofar as such counsel is aware, neither LNR nor
any Designated Subsidiary is in violation of its certificate of
incorporation or bylaws or other comparable organizational documents
and neither Land Partnership is in violation of the partnership
agreement under which it was formed.
(xiii) The execution, delivery and performance of this
Agreement, the Indenture and the Registration Rights Agreement and
the consummation of the transactions contemplated hereby and thereby
(including, without limitation, the issuance and sale of the Notes
to the Initial Purchaser) will not conflict with or constitute or
result in a breach or a default under (or an event which with notice
or passage of time or both would constitute a default under) or
violation of or cause an acceleration of any obligation under, or
result in the imposition or creation of (or the obligation to create
or impose) a lien on any property or assets of LNR or any Subsidiary
or Investment Affiliate with respect to (i) the terms or provisions
of any of the terms or provisions of any material contract,
agreement or instrument of which such counsel is aware to which LNR
or any Designated Subsidiary or either Land Partnership is a party
or by which LNR or any Designated Subsidiary or either Land
Partnership may be bound, (ii) the certificate of incorporation or
bylaws or other comparable organizational documents of LNR or any
Designated Subsidiary or the partnership agreement of either Land
Partnership, or (iii) (assuming compliance with all applicable state
securities or "Blue Sky" laws and assuming the accuracy of the
representations and warranties of the Initial Purchaser in Section 8
hereof) any statute, judgment, decree, order, rule or regulation
generally applicable to transactions of the type contemplated by the
Memorandum or known to such counsel to be applicable to LNR or any
Designated Subsidiary or either Land Partnership.
(xiv) No consent, approval, authorization or order of
any governmental authority is required for the issuance and sale by
LNR of the Notes to the Initial Purchaser, or the other transactions
contemplated in this Agreement, except (i) as may be required under
applicable securities laws in connection with the registration under
the Act of the Notes, and the Private Exchange Notes, if applicable,
pursuant to the Registration Rights Agreement and (ii) as may be
required under state securities or blue sky laws (as to which such
counsel need express no opinion).
(xv) Neither LNR nor any of its subsidiaries is, or
immediately after the sale of the Notes to be sold hereunder and the
application of the proceeds from such sale (as described in the
Memorandum under the caption "Use of Proceeds") will be, an
"investment company" as that term is defined in the Investment
Company Act, and the rules and regulations under it.
-17-
(xvi) No registration under the Act of the Notes is
required in connection with the sale of the Notes to the Initial
Purchaser as contemplated by this Agreement and the Memorandum or in
connection with the initial resale of the Notes by the Initial
Purchaser in accordance with Section 8 of this Agreement, and prior
to the commencement of the Exchange Offer (as defined in the
Registration Rights Agreement) or the effectiveness of the Shelf
Registration Statement (as defined in the Registration Rights
Agreement), the Indenture is not required to be qualified under the
Trust Indenture Act, in each case assuming (i) that the purchasers
who buy such Notes in the initial resale thereof are Qualified
Institutional Buyers or Accredited Investors, as those terms are
defined in the rules under the Act, (ii) the accuracy of the Initial
Purchaser's representations in Section 8 and those of LNR contained
in this Agreement regarding the absence of a general solicitation in
connection with the sale of such Notes to the Initial Purchaser and
the initial resale thereof and (iii) the due performance by the
Initial Purchaser of the agreements set forth in Section 8 hereof
and the offering and transfer procedures set forth in the
Memorandum.
(xvii) Neither the sale, issuance, execution or delivery
of the Notes nor any other transaction contemplated by this
Agreement will violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System.
(xviii) The statements under the captions "Description
of the Notes," "Exchange Offer; Registration Rights" and "Notice to
Investors; Transfer Restrictions" in the Memorandum or incorporated
therein by reference, insofar as such statements constitute a
summary of the documents referred to therein or matters of law,
provide a fair and accurate summary in all material respects of the
information called for with respect to such documents and matters
under current law.
At the time the foregoing opinion is delivered, Xxxxxxxx Chance US
LLP shall additionally state that it has participated in conferences with
officers and other representatives of LNR, representatives of the independent
public accountants for LNR, representatives of the Initial Purchaser and counsel
for the Initial Purchaser, at which conferences the contents of the Memorandum
and related matters were discussed, and, although it has not independently
verified and is not passing upon and assumes no responsibility for the accuracy,
completeness or fairness of the statements contained in the Memorandum (except
to the extent specified in subsection 7(a)(xviii)), no facts have come to its
attention which lead it to believe that the Memorandum, on the date thereof or
at the Closing Date, contained or contains an untrue statement of a material
fact or omitted or omits to state a material fact required to be stated therein
or necessary to make the statements contained therein, in the light of the
circumstances under which they were made, not misleading (it being understood
that such firm need express no belief with respect to the financial statements
and related notes thereto and the other financial or statistical data included
in the Memorandum).
In rendering its opinion, Xxxxxxxx Chance US LLP may state that they
express no opinion as to the laws of any jurisdiction other than the federal
laws of the United States, the laws of the State of New York and the General
Corporation Law of the State of Delaware.
-18-
(b) The Initial Purchaser shall have received an opinion, dated the
Closing Date, of Xxxxxxx Xxxx & Xxxxxxxxx LLP, counsel for the Initial
Purchaser, with respect to certain legal matters relating to this Agreement, and
such other related matters as the Initial Purchaser may reasonably require. In
rendering such opinion, Xxxxxxx Xxxx & Xxxxxxxxx LLP shall have received and may
rely upon such certificates and other documents and information as they may
reasonably request to pass upon such matters.
(c) The Initial Purchaser shall have received from Deloitte & Touche
LLP, independent public accountants for LNR, comfort letters, dated the date
hereof and the Closing Date, in form and substance reasonably satisfactory to
the Initial Purchaser and counsel for the Initial Purchaser.
(d) The representations and warranties of LNR contained in this
Agreement shall be true and correct in all material respects on and as of the
Closing Date as if made on and as of the Closing Date, except those
representations and warranties, or portions thereof, which by their terms are
subject to a materiality, Material Adverse Effect or similar standard shall be
true and correct in all respects; LNR shall have performed in all material
respects all covenants and agreements and satisfied all conditions on its part
to be performed or satisfied hereunder at or prior to the Closing Date; and,
except as set forth in the Memorandum (exclusive of any amendment or supplement
thereto after the date hereof) subsequent to the date of the most recent
financial statements in such Memorandum, there shall have been no event or
development that, individually or in the aggregate, has or would be reasonably
likely to have a Material Adverse Effect.
(e) The issuance and sale of the Notes pursuant to this Agreement
shall not have been enjoined (temporarily or permanently) and no restraining
order or other injunctive order shall have been issued or any action, suit or
proceeding shall have been commenced with respect to this Agreement before any
court or governmental authority.
(f) The Initial Purchaser shall have received a certificate, dated
the Closing Date, signed by LNR's Chief Executive Officer and its Chief
Financial Officer to the effect that:
(i) The representations and warranties of LNR in this
Agreement are true and correct in all material respects as if made
on and as of the Closing Date, except that those representations and
warranties, or portions thereof, which by their terms are subject to
a materiality, Material Adverse Effect or similar standard are true
and correct in all respects, and LNR has performed in all material
respects all covenants and agreements and satisfied all conditions
on its part to be performed or satisfied hereunder at or prior to
the Closing Date;
(ii) At the Closing Date, since the date hereof or since
the date of the most recent financial statements in, or incorporated
by reference in, the Memorandum (exclusive of any amendment or
supplement thereto after the date hereof), no event or events have
occurred, no information has become known nor does any condition
exist that, individually or in the aggregate, would have a Material
Adverse Effect;
-19-
(iii) Such officer has carefully examined the
Memorandum; in such officer's opinion and to the best of such
officer's knowledge, neither the Memorandum nor any amendment or
supplement thereto includes any untrue statement of a material fact
or omits to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;
(iv) Since the date hereof or since the date as of which
information is given in the Memorandum, except as described in or
contemplated by the Memorandum, neither LNR nor any of the
Subsidiaries or Investment Affiliates has incurred any liabilities
or obligations direct or contingent (other than in the ordinary
course of business) that are material to LNR and its Subsidiaries
taken as a whole or entered into any transactions not in the
ordinary course of business that are material to the business,
condition (financial or other) or results of operations or prospects
of LNR and the Subsidiaries, taken as a whole, and there has not
been any change in the capital stock or long-term indebtedness of
LNR or any of the Subsidiaries or Investment Affiliates that is
material to the business, condition (financial or other) or results
of operations or prospects of LNR and the Subsidiaries at and as of
the Closing Date taken as a whole; and
(v) The sale of the Notes hereunder has not been
enjoined (temporarily or permanently).
(g) On the Closing Date, the Initial Purchaser shall have received
the Registration Rights Agreement executed by LNR and such agreement shall be in
full force and effect at all times from and after the Closing Date.
(h) The Notes shall have been duly executed by LNR, and the Notes
shall have been duly authenticated by the Trustee.
(i) On or before the Closing Date, the Initial Purchaser and counsel
for the Initial Purchaser shall have received such further documents,
certificates and schedules or instruments relating to the business, corporate,
legal and financial affairs of LNR as it shall have heretofore reasonably
requested from LNR, including but not limited to a certificate, dated the
Closing Date, signed by LNR's Chief Financial Officer to the effect that the
issuance of the Notes is in compliance with Section 4.12 of the Indenture.
All such documents, opinions, certificates and schedules or
instruments delivered pursuant to this Agreement will comply with the provisions
hereof only if they are reasonably satisfactory in all material respects to the
Initial Purchaser and counsel for the Initial Purchaser. LNR shall furnish to
the Initial Purchaser such conformed copies of such documents, opinions,
certificates and schedules or instruments in such quantities as the Initial
Purchaser shall reasonably request.
8. Offering of Notes, Restrictions on Transfer. (a) The Initial
Purchaser agrees with LNR that (i) it has not and will not solicit offers for,
or offer or sell, the Notes by any form of general solicitation or general
advertising (as those terms are used in Regulation D under
-20-
the Act) or in any manner involving a public offering within the meaning of
Section 4(2) of the Act; and (ii) it has and will solicit offers for the Notes
only from, and will offer and sell the Notes only to (A) in the case of offers
inside the United States, persons whom the Initial Purchaser reasonably believes
to be QIBs or, if any such person is buying for one or more institutional
accounts for which such person is acting as fiduciary or agent, only when such
person has represented to the Initial Purchaser or the Initial Purchaser
reasonably believes, that each such account is a QIB, to whom notice has been
given that such sale or delivery is being made in reliance on Rule 144A, and, in
each case, in transactions under Rule 144A and (B) in the case of offers outside
the United States, to persons other than U.S. persons ("non-U.S. purchasers,"
which term shall include dealers or other professional fiduciaries in the United
States acting on a discretionary basis for non-U.S. beneficial owners (other
than an estate or trust)); provided, however, that, in the case of this clause
(B), in purchasing such Notes such persons are deemed to have represented and
agreed as provided under the caption "Notice to Investors; Transfer
Restrictions" contained in the Memorandum.
(b) The Initial Purchaser represents and warrants with respect to
offers and sales outside the United States of Notes that (i) it has and will
comply with all applicable laws and regulations in each jurisdiction in which it
acquires, offers, sells or delivers such Notes or has in its possession or
distributes any Memorandum or any other material, in all cases at its own
expense; (ii) such Notes have not been and will not be offered or sold within
the United States or to, or for the account or benefit of, U.S. persons except
in accordance with Regulation S under the Act or pursuant to an exemption from
registration requirements of the Act; (iii) it has offered such Notes and will
offer and sell such Notes (A) as part of its distribution at any time and (B)
otherwise until 40 days after the later of the commencement of the offering and
the Closing Date, only in accordance with Rule 903 of Regulation S and,
accordingly, neither it nor any persons acting on its behalf have engaged or
will engage in any "directed selling efforts" (within the meaning of Regulation
S) with respect to the Notes, and any such persons have complied and will comply
with the offering restrictions requirement of Regulation S; and (iv) it agrees
that, at or prior to confirmation of sales of such Notes, it will have sent to
each distributor, dealer or person receiving a selling concession, fee or other
remuneration that purchases any of such Notes from it during the restricted
period a confirmation or notice to substantially the following effect:
"The Securities covered hereby have not been registered under the
United States Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered and sold within the United States or
to, or for the account or benefit of, U.S. persons (i) as part of
the distribution of the Securities at any time or (ii) otherwise
until 40 days after the later of the commencement of the offering
and the closing date of the offering, except in either case in
accordance with Regulation S (or Rule 144A if available) under the
Securities Act. Terms used above have the meaning given to them in
Regulation S."
Terms used in this Section 8 and not defined in this Agreement have
the meanings given to them in Regulation S.
(c) The Initial Purchaser represents and warrants that (i) it has
not offered or sold and, prior to or during the period of six months from the
issuance of the Notes, will not offer
-21-
or sell the Notes to persons in the United Kingdom except to persons whose
ordinary activities involve them in acquiring, holding, managing or disposing of
investments (as principal or agent) for the purposes of their businesses or
otherwise in circumstances that do not constitute an offer to the public in the
United Kingdom within the meaning of the Public Offers of Securities Regulations
1995, (ii) it has complied with and will comply with all applicable provisions
of the Financial Services Xxx 0000 of Great Britain with respect to any action
taken in relation to the Notes in, from or otherwise involving the United
Kingdom and (iii) it has only issued or passed on and will only issue or pass on
in the United Kingdom any document in connection with the issue and sale of the
Notes to a person who is of the kind described in Article 11(3) of the Financial
Services Xxx 0000 (Investment Advertisements) (Exemptions) Order 1996 (as
amended) or is a person to whom the document may otherwise be lawfully issued or
passed.
9. Indemnification and Contribution. (a) LNR agrees to indemnify and
hold harmless the Initial Purchaser and the affiliates, directors, officers,
agents, representatives and employees of the Initial Purchaser, and each other
person, if any, who controls the Initial Purchaser within the meaning of Section
15 of the Act or Section 20 of the Exchange Act, against any losses, claims,
damages or liabilities, joint or several, to which the Initial Purchaser or any
such affiliate, director, officer, agent, representative, employee or
controlling person may becomes subject under the Act, the Exchange Act or
otherwise, insofar as any such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon:
(i) any untrue statement or alleged untrue statement of
any material fact contained in (A) the Memorandum or any amendment
or supplement thereto or (B) any application or other document, or
any amendment or supplement thereto, executed by LNR or based upon
written information furnished by or on behalf of LNR filed in any
jurisdiction in order to qualify the Notes under the securities or
"Blue Sky" laws thereof or filed with any securities association or
securities exchange (each, an "Application"); or
(ii) the omission or alleged omission to state, in the
Memorandum or any amendment or supplement thereto, or any
Application, a material fact required to be stated therein or
necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading,
and will reimburse, promptly upon request, the Initial Purchaser and each such
affiliate, director, officer, agent, representative and employee and each such
controlling person for any legal or other expenses reasonably incurred by the
Initial Purchaser, such affiliate, director, officer, agent, representative or
employee or such controlling person in connection with investigating, defending
against or appearing as a third-party witness in connection with any such loss,
claim, damage, liability or action; provided, however, that LNR will not be
liable in any such case to the extent that any such loss, claim, damage, or
liability arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in the Memorandum or any
amendment or supplement thereto, or any Application, in reliance upon and in
conformity with written information concerning the Initial Purchaser or its
resale of the Notes furnished to LNR by the Initial Purchaser specifically for
use therein. This indemnity agreement will be in addition to any liability that
LNR may otherwise have to the indemnified parties. LNR shall not be liable under
this subsection (a) for any settlement of any claim or action effected without
its consent, which consent shall not be unreasonably withheld or delayed.
-22-
(b) The Initial Purchaser agrees to indemnify and hold harmless LNR,
its affiliates, directors, officers, agents, representatives and employees and
each other person, if any, who controls LNR within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act against any losses, claims, damages or
liabilities to which LNR or any such affiliate, director, officer, agent,
representative, employee or controlling person may become subject under the Act,
the Exchange Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i)
any untrue statement or alleged untrue statement of any material fact contained
in the Memorandum or any amendments or supplement thereto, or any Application or
(ii) the omission or the alleged omission to state therein a material fact
required to be stated in the Memorandum or any amendment or supplement thereto,
or any Application, or necessary to make the statements therein not misleading,
in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information concerning the Initial Purchaser
furnished to LNR by the Initial Purchaser specifically for use therein; and,
subject to the limitation set forth immediately preceding this clause, will
reimburse, promptly upon request, any legal or other expenses reasonably
incurred by LNR or any such affiliate, director, officer, agent, representative,
employee or controlling person in connection with investigating or defending
against or appearing as a third party witness in connection with any such loss,
claim, damage, liability or action in respect thereof. This indemnity agreement
will be in addition to any liability that the Initial Purchaser may otherwise
have to the indemnified parties. The Initial Purchaser shall not be liable under
this Section 9 for any settlement of any claim or action effected without its
consent, which consent shall not be unreasonably withheld or delayed. LNR shall
not, without the prior written consent of the Initial Purchaser, effect any
settlement or compromise of any pending or threatened proceeding in respect of
which the Initial Purchaser is or could have been a party, or indemnity could
have been sought hereunder by the Initial Purchaser, unless such settlement (A)
includes an unconditional written release of the Initial Purchaser, in form and
substance reasonably satisfactory to the Initial Purchaser, from all liability
on claims that are the subject matter of such proceeding and (B) does not
include any statement as to an admission of fault, culpability or failure to act
by or on behalf of the Initial Purchaser.
(c) Promptly after receipt by an indemnified party under this
Section 9 of notice of the commencement of any action for which such indemnified
party is entitled to indemnification under this Section 9, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying
party under this Section 9, notify the indemnifying party of the commencement
thereof in writing; but the omission to so notify the indemnifying party (i)
will not relieve it from any liability under subsection (a) or (b) above unless
and to the extent such failure results in the forfeiture or waiver by the
indemnifying party of substantial rights and defenses and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in subsections (a) and
(b) above. In case any such action is brought against any indemnified party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified
party; provided, however, that if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest, (ii) the defendants in any such action include both
the indemnified party and the indemnifying
-23-
party and the indemnified party shall have been advised by counsel that there
may be one or more legal defenses available to it and/or other indemnified
parties that are different from or additional to those available to the
indemnifying party or (iii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after receipt by the indemnifying
party of notice of the institution of such action, then, in each such case, the
indemnifying party shall not have the right to direct the defense of such action
on behalf of such indemnified party or parties and such indemnified party or
parties shall have the right to select separate counsel to defend such action on
behalf of such indemnified party or parties. After notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof
and approval by such indemnified party of counsel appointed to defend such
action, the indemnifying party will not be liable to such indemnified party
under this Section 9 for any legal or other expenses, other than reasonable
costs of investigation, subsequently incurred by such indemnified party in
connection with the defense thereof, unless (i) the indemnified party shall have
employed separate counsel in accordance with the proviso to the immediately
preceding sentence (it being understood, however, that in connection with such
action the indemnifying party shall not be liable for the expenses of more than
one separate counsel (in addition to local counsel) in any one action or
separate but substantially similar actions in the same jurisdiction arising out
of the same general allegations or circumstances, designated by Deutsche Bank
Securities Inc. in the case subsection (a) of this Section 9 or LNR in the case
of subsection (b) of this Section 9, representing the indemnified parties under
such subsection (a) or subsection (b), as the case may be, who are parties to
such action or actions) or (ii) the indemnifying party has authorized in writing
the employment of counsel for the indemnified party at the expense of the
indemnifying party. After such notice from the indemnifying party to such
indemnified party, the indemnifying party will not be liable for the costs and
expenses of any settlement of such action effected by such indemnified party
without the prior written consent of the indemnifying party (which consent shall
not be unreasonably withheld).
(d) In circumstances in which the indemnity agreement provided for
in the preceding subsections of this Section 9 is unavailable to, or
insufficient to hold harmless, an indemnified party in respect of any losses,
claims, damages or liabilities (or actions in respect thereof), each
indemnifying party, in order to provide for just and equitable contribution,
shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (or actions in respect
thereof) in such proportion as is appropriate to reflect (i) the relative
benefits received by the indemnifying party or parties on the one hand and the
indemnified party on the other from the offering of the Notes or (ii) if the
allocation provided by the foregoing clause (i) is not permitted by applicable
law, not only such relative benefits but also the relative fault of the
indemnifying party or parties on the one hand and the indemnified party on the
other in connection with the statements or omissions or alleged statements or
omissions that resulted in such losses, claims, damages or liabilities (or
actions in respect thereof). The relative benefits received by LNR on the one
hand and the Initial Purchaser on the other shall be deemed to be in the same
proportion as the total proceeds from the offering (before deducting expenses)
received by LNR bear to the total discounts and commissions received by the
Initial Purchaser. The relative fault of the parties shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by LNR on the one hand, or the Initial Purchaser
on the other, the parties' relative intent,
-24-
knowledge, access to information and opportunity to correct or prevent such
statement or omission or alleged statement or omission, and any other equitable
considerations appropriate in the circumstances. LNR and the Initial Purchaser
agree that it would not be just and equitable if the amount of such contribution
were determined by pro rata or per capita allocation or by any other method of
allocation that does not take into account the equitable considerations referred
to in the first sentence of this subsection (d). Notwithstanding any other
provision of this subsection (d), the Initial Purchaser shall not be obligated
to make contributions hereunder that in the aggregate exceed the total
discounts, commissions and other compensation received by the Initial Purchaser
under this Agreement, less the aggregate amount of any damages that the Initial
Purchaser has otherwise been required to pay by reason of the untrue or alleged
untrue statements or the omissions or alleged omissions to state a material
fact, and no person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. For purposes of this
subsection (d), each affiliate, director, officer, agent, representative and
employee of the Initial Purchaser and each person, if any, who controls the
Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act shall have the same rights to contribution as the Initial
Purchaser, and each affiliate, director, officer, agent, representative and
employee of LNR and each person, if any, who controls LNR within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act, shall have the same
rights to contribution as LNR.
10. Survival Clause. The respective representations, warranties,
agreements, covenants, indemnities and other statements of LNR, its officers and
the Initial Purchaser set forth in this Agreement or made by or on behalf of
them, respectively, pursuant to this Agreement shall remain in full force and
effect, regardless of (i) any investigation made by or on behalf of LNR, any of
its officers or directors, the Initial Purchaser or any controlling person
referred to in Section 9 hereof and (ii) delivery of and payment for the Notes.
The respective agreements, covenants, indemnities and other statements set forth
in Sections 6, 9 and 15 hereof shall remain in full force and effect, regardless
of any termination or cancellation of this Agreement.
11. Termination.
(a) This Agreement may be terminated in the sole discretion of the
Initial Purchaser by notice to LNR given prior to the Closing Date in the event
that LNR shall have failed, refused or been unable to perform, in all material
respects, all obligations and satisfy all conditions on its part to be performed
or satisfied hereunder at or prior thereto or, if after the date of this
Agreement and at or prior to the Closing Date:
(i) either (x) LNR or any Subsidiary or Investment
Affiliate shall have sustained any loss or interference with respect
to its businesses or properties from fire, flood, hurricane,
accident or other calamity, whether or not covered by insurance, or
from any strike, labor dispute, slow down or work stoppage or any
legal or governmental proceeding, which loss or interference, in the
sole judgment of the Initial Purchaser, has had or has a Material
Adverse Effect, or (y) there shall have been, in the sole judgment
of the Initial Purchaser, any event or development that,
individually or in the aggregate, has or could be reasonably likely
to have a Material Adverse Effect (including without
-25-
limitation a change in control of LNR or any Subsidiary or
Investment Affiliate), except in each case as described in or
contemplated by the Memorandum (exclusive of any amendment or
supplement thereto);
(ii) trading in securities generally on the New York
Stock Exchange, the American Stock Exchange or the Nasdaq National
Market shall have been suspended or maximum or minimum prices shall
have been established on any such exchange or market;
(iii) a banking moratorium shall have been declared by
New York or United States authorities;
(iv) there shall have been (A) an outbreak or escalation
of hostilities, or (B) any declaration of war, an outbreak or
escalation of any other insurrection or armed conflict involving the
United States or any other national or international calamity,
crisis or emergency or (C) any change in the political or economic
conditions or any material change in the financial markets of the
United States that, in the case of (A), (B) or (C) above and in the
sole judgment of the Initial Purchaser, makes it impracticable or
inadvisable to proceed with the offering or the delivery of the
Notes as contemplated by the Memorandum or to enforce contracts for
the sale of the Notes;
(v) any securities of LNR shall have been downgraded or
placed on any "watch list" for possible downgrading by any
nationally recognized statistical rating organization;
(vi) the enactment, publication, decree or other
promulgation of any statute, regulation, rule or order of any court
or other governmental authority which in the Initial Purchaser's
reasonable opinion materially and adversely affects or may
materially and adversely affect the business or operations of LNR;
or
(vii) the taking of any action by any governmental body
or agency in respect of its monetary or fiscal affairs which in the
Initial Purchaser's reasonable opinion has a material adverse effect
on the securities markets in the United States and would make it
impracticable or inadvisable to market the Notes or to enforce
contracts for the sale of the Notes.
Termination of this Agreement pursuant to this Section 11(a) shall
be without liability of any party to any other party except as provided in
Section 9 hereof.
12. Information Supplied by the Initial Purchaser. The statements
set forth in the first sentence of the third paragraph and the ninth paragraph
of the section entitled "Plan of Distribution" in the Memorandum (to the extent
such statements related to the Initial Purchaser) constitute the only
information furnished by the Initial Purchaser to LNR for the purposes of
Sections 2(a) and 9 hereof.
-26-
13. Notices. All communications hereunder shall be in writing and,
if sent to the Initial Purchaser, shall be mailed or delivered or telecopied and
confirmed in writing to:
Deutsche Bank Securities Inc.
00 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 0000
Attention: Leveraged Finance
with a copy to:
Xxxxxxx Xxxx & Xxxxxxxxx LLP
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. X'Xxxxxxxx, Esq.
Xxxxx X. Boston, Esq.
and if sent to LNR, shall be mailed, delivered or telecopied
and confirmed in writing to LNR at:
0000 Xxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxx Xxxxx, Xxxxxxx 00000
Attention: Xxxxxx Xxxxx, Chief Financial Officer
with a copy to:
Xxxxxxxx Chance US LLP
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx X. Xxxxxxxxx, Esq.
14. Successors. This Agreement shall inure to the benefit of and be
binding upon the Initial Purchaser, LNR and their respective successors, assigns
and legal representatives, and nothing expressed or mentioned in this Agreement
is intended or shall be construed to give any other person any legal or
equitable right, remedy or claim under or in respect of this Agreement, or any
provisions herein contained; this Agreement and all conditions and provisions
hereof being intended to be and being for the sole and exclusive benefit of the
Initial Purchaser, LNR and their respective successors, assigns and legal
representatives and for the benefit of no other person except that (i) the
indemnities of LNR contained in Section 9 of this Agreement shall also be for
the benefit of the affiliates, directors, officers, agents, representatives and
employees of the Initial Purchaser and any person or persons who control the
Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act and (ii) the indemnities of the Initial Purchaser contained in
Section 9 of this Agreement shall also be for the benefit of the affiliates,
directors, officers, agents, representatives and employees of LNR and any person
or persons who control LNR within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act. No purchaser of any of the Notes from the
Initial Purchaser will be deemed a successor because of such purchase.
-27-
15. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS
AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO ANY PROVISIONS RELATING TO CONFLICTS OF LAW THAT WOULD APPLY
THE LAW OF ANY OTHER JURISDICTION.
[Signature page follows]
-28-
16. 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. If the foregoing
correctly sets forth our understanding, please indicate your acceptance thereof
in the space provided below for that purpose, whereupon this letter shall
constitute a binding agreement among LNR and the Initial Purchaser.
Very truly yours,
LNR PROPERTY CORPORATION
By:
-----------------------
Name:
Title:
The foregoing Agreement is hereby confirmed and accepted as of the date first
above written.
DEUTSCHE BANK SECURITIES INC.
By:
---------------------------------------------
Name:
Title:
By:
---------------------------------------------
Name:
Title:
[Signature Page to Purchase Agreement]
EXHIBIT A
Form of Registration Rights Agreement
Exhibit A
