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Title: |
Stockholders Agreement |
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Entities: |
CarrAmerica Realty Corp.; Equity Office Properties Trust; FrontLine Capital Group; Reckson Service Industries, Inc.; Goldman, Sachs & Co.; Merrill Lynch & Co., Inc.; Gibson, Dunn & Crutcher; Hogan & Hartson; HQ Global Holdings, Inc. |
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Date: |
2000 |
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Size: |
Preview shows 14KB of 116KB total |
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Price: |
$54 |
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ID: |
#255050 |
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STOCKHOLDERS AGREEMENT
by and among
FRONTLINE CAPITAL GROUP (formerly known as
RECKSON SERVICE INDUSTRIES, INC.),
HQ GLOBAL HOLDINGS, INC.,
and
CARRAMERICA REALTY CORPORATION
Dated as of
June 1, 2000
--------------------------------------------------------------------------------
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
----
{S} {C}
1. DEFINITIONS............................................................................... 1
2. BOARD OF DIRECTORS OF THE COMPANY......................................................... 3
2.1. Number of Directors.............................................................. 3
2.2. Holder Nominees.................................................................. 4
2.3. Independent Directors............................................................ 5
2.4. Termination...................................................................... 5
3. INFORMATION RIGHTS......................................................................... 6
3.1. Information Rights of All Holders................................................ 6
3.2. Information Rights of 10% Holders................................................ 6
3.3. Confidentiality.................................................................. 7
3.4. Termination...................................................................... 7
4. LIMITATIONS ON CORPORATE ACTIONS........................................................... 7
4.1. REIT Restrictions................................................................ 7
4.2. No Acquisition of Common Stock from RSI or its Affiliates........................ 13
4.3. No Contravening Agreement........................................................ 13
4.4. Termination...................................................................... 13
5. PARTICIPATION RIGHTS....................................................................... 14
5.1. Right to Participate............................................................. 14
5.2. Notice........................................................................... 14
5.3. Abandonment of Sale or Issuance.................................................. 15
5.4. Terms of Sale.................................................................... 15
5.5. Timing of Sale................................................................... 15
5.6. Termination of Participation Right............................................... 16
6. TAG-ALONG RIGHTS........................................................................... 17
6.1. Rights and Notice................................................................ 17
6.2. Abandonment of Sale.............................................................. 18
6.3. Timing of Sale................................................................... 18
6.4. Termination of Tag-Along Right................................................... 18
7. PUT RIGHTS................................................................................. 18
7.1. 2000 Put Right................................................................... 18
7.2. 2001 Put Right................................................................... 19
7.3. 2002 Put Right................................................................... 20
7.4. Procedures to Determine Fair Market Value........................................ 22
7.5. Indemnification of Designated Holder............................................. 23
{/TABLE}
{PAGE}
{TABLE}
{S} {C}
8. TRANSFER RESTRICTIONS.......................................................................... 23
8.1. RSI Right of First Offer.............................................................. 23
8.2. Holder Right of First Offer........................................................... 24
8.3. No Obligation to Purchase............................................................. 25
8.4. Termination of the Rights of First Offer.............................................. 26
8.5. IPO Lock-Up........................................................................... 26
9. LEASE GUARANTEE INDEMNIFICATION................................................................ 26
10. PURCHASE RIGHT AGREEMENT ANTI-DILUTION PROTECTION.............................................. 27
11. MISCELLANEOUS.................................................................................. 27
11.1. RSI Assurance......................................................................... 27
11.2. Assignment............................................................................ 27
11.3. Entire Agreement; Amendment........................................................... 27
11.4. Waiver................................................................................ 28
11.5. Limitation on Benefit................................................................. 28
11.6. Binding Effect........................................................................ 28
11.7. Governing Law......................................................................... 28
11.8. Notices............................................................................... 28
11.9. Headings.............................................................................. 30
11.10. Execution in Counterparts............................................................. 30
11.11. Interpretation; Absence of Presumption................................................ 31
11.12. Severability.......................................................................... 31
11.13. Specific Performance.................................................................. 31
11.14. Consent to Jurisdiction............................................................... 31
11.15. Litigation Costs...................................................................... 32
{/TABLE}
EXHIBIT A
ii
{PAGE}
STOCKHOLDERS AGREEMENT
THIS STOCKHOLDERS AGREEMENT (this "Agreement"), dated as of June 1,
2000, is made by and among FrontLine Capital Group (formerly known as Reckson
Service Industries, Inc.) ("RSI"), HQ Global Holdings, Inc. (the "Company") and
CarrAmerica Realty Corporation ("CarrAmerica" or the "Designated Holder").
WHEREAS, RSI, CarrAmerica and certain other parties have entered into
that certain Stock Purchase Agreement dated as of January 20, 2000, as amended
pursuant to which RSI is acquiring on the date hereof certain shares of common
stock of HQ Global Workplaces, Inc. ("HQ Global") owned by CarrAmerica and such
other parties (the "Transaction");
WHEREAS, the parties believe it is in their best interests to enter
into this Agreement and provide for certain rights and restrictions with respect
to the continuing investment by RSI and each Holder (as hereafter defined) in
the Company and the corporate governance of the Company; and
WHEREAS, it is a condition precedent to the completion of the
Transaction that the parties enter into this Agreement.
NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:
1. DEFINITIONS
As used in this Agreement, certain capitalized terms not otherwise
defined herein shall have the following respective meanings:
"10% Holder" shall mean any Holder hereunder who, together with any
Affiliates, holds more than ten percent (10%) of the total number of issued and
outstanding shares of Common Stock of the Company.
"Affiliate" shall mean, with respect to any Person, (i) any Person
directly or indirectly controlling, controlled by or under common control with
such Person, or (ii) any officer, director, general partner, managing member or
trustee of such Person or any Person referred to in clause (i) above. For
purposes of this definition, "control," when used with respect to any Person,
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise, and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.
"Board" shall mean the board of directors of the Company.
{PAGE}
"Code" shall mean the Internal Revenue Code of 1986, as amended
(including for this purpose the amendments made to Section 856(c)(4)(B)(iii) of
the Code by Pub. L. No. 106-170, The Ticket to Work and Work Incentives
Improvement Act of 1999, 113 Stat. 1860 (the "RMA")), and any successor thereto,
including all of the rules and regulations promulgated thereunder.
"Common Stock" shall mean any common stock of the Company, including,
without limitation, the Voting Common Stock and the Nonvoting Common Stock.
"Director" shall mean a member of the Board.
"Government Authority" shall mean any government or state (or any
subdivision thereof) of or in the United States or any foreign nation, or any
agency, authority, bureau, commission, department or similar body or
instrumentality thereof, or any governmental court or tribunal.
"Holder" shall mean CarrAmerica and any stockholder of the Company
that becomes a party to this agreement after the date hereof in accordance with
the terms herein.
"Immediate Family Member" shall mean, with respect to any natural
Person, (i) such natural Person's spouse, parents, descendants, nephews, nieces,
brothers and sisters, and (ii) any trust established by such Person or any of
the persons listed in clause (i) above, the sole beneficiaries of which are such
Person or any of the persons listed in clause (i) above.
"Independent Director" shall mean any Director who (i) is not an
officer or employee of the Company, (ii) is not an officer, employee or director
of RSI, (iii) does not have a material financial interest in or relationship
with RSI (it being agreed that for purposes of this definition, any Director who
owns less than five percent (5%) of the issued and outstanding RSI common stock
shall be deemed not to have a material financial interest in or relationship
with RSI by virtue of such stock ownership), and (iv) is not an Affiliate or an
Immediate Family Member of any Person covered by clauses (i), (ii) or (iii)
above.
"IPO" shall mean one or more sales of Common Stock by the Company
pursuant to one or more registration statements effective under the Securities
Act of 1933, as amended (the "1933 Act") that results in (i) gross proceeds to
the Company of not less than $150,000,000 and (ii) the listing for trading on
either the NASDAQ Stock Market or a national securities exchange of all shares
of Voting Common Stock of the Company.
"Majority Consent of the Holders" shall mean the approval of Holders
owning at least a majority of all of the issued shares of Voting Common Stock
owned by the Holders at such time.
"Nonvoting Common Stock" shall mean the Nonvoting Common Stock, par
value $.01 per share, of the Company.
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