<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 3, 1999
HEALTH CARE PROPERTY INVESTORS, INC.
------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 1-8895 33-0091377
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(State or Other (Commission File Number) (I.R.S. Employer
Jurisdiction of Identification No.)
Incorporation)
4675 MacArthur Court, 9th Floor, Newport Beach, California 92660
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(Address of Principal Executive Offices) (Zip Code)
(949) 221-0600
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(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
------------
COMMON STOCK OFFERING
On June 18, 1998, Health Care Property Investors, Inc. (the "Company")
filed with the Securities and Exchange Commission (the "Commission") a
registration statement on Form S-3 (File No. 333-57163) (the "Registration
Statement"), relating to the registration under the Securities Act of 1933, as
amended, of up to $600,000,000 aggregate offering price of common stock, par
value $1.00 per share, preferred stock, par value $1.00 per share, and/or
unsecured debt securities of the Company, which Registration Statement was
declared effective on June 30, 1998.
On April 27, 1999, the Company entered into a purchase agreement (the
"Purchase Agreement") with Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated, as underwriter, pursuant to which the Company agreed to
issue and sell up to 1,000,000 shares of common stock, par value $1.00 per
share, of the Company (the "Common Stock").
Each of the Purchase Agreement, an opinion with respect to the legality of
the Common Stock and an opinion with respect to tax matters of the Common Stock
is attached hereto as an Exhibit.
<PAGE>
Item 7. Financial Statements and Exhibits.
---------------------------------
(c) Exhibits.
1.1 Purchase Agreement, dated April 27, 1999, between the Company
and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated.
5.1 Opinion of Ballard, Spahr, Andrews & Ingersoll, LLP regarding
legality of the Common Stock.
8.1 Opinion regarding tax matters of the Common Stock.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereto duly authorized.
Dated: May 13, 1999
HEALTH CARE PROPERTY INVESTORS, INC.
By: /s/ Edward J. Henning
-----------------------------------------
Name: Edward J. Henning
Title: Senior Vice President,
General Counsel and
Corporate Secretary
<PAGE>
EXHIBIT INDEX
1.1 Purchase Agreement, dated April 27, 1999, between the Company and Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated.
5.1 Opinion of Ballard, Spahr, Andrews & Ingersoll, LLP regarding legality of
the Common Stock.
8.1 Opinion regarding tax matters of the Common Stock.
<PAGE>
================================================================================
Exhibit 1.1
870,000 Shares
HEALTH CARE PROPERTY INVESTORS, INC.
(a Maryland corporation)
Common Stock
(Par Value $1.00 Per Share)
PURCHASE AGREEMENT
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Table of Contents
<TABLE>
<CAPTION>
Page
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<S> <C> <C>
Section 1. Representations and Warranties.............................................................. 2
(i) Compliance with Registration Requirements............................................. 2
(ii) Incorporated Documents................................................................ 3
(iii) Independent Accountants............................................................... 3
(iv) Financial Statements.................................................................. 4
(v) No Material Adverse Change in Business................................................ 4
(vi) Good Standing of the Company.......................................................... 4
(vii) Good Standing of Subsidiaries......................................................... 5
(viii) REIT Status........................................................................... 5
(ix) Capitalization........................................................................ 5
(x) Absence of Defaults and Conflicts..................................................... 6
(xi) Absence of Proceedings................................................................ 6
(xii) Absence of Further Requirements....................................................... 7
(xiii) Authorization of Purchase Agreement................................................... 7
(xiv) Title to Property..................................................................... 7
(xv) Investment Company Act................................................................ 7
Section 2. Sale and Delivery to the Underwriter; Closing............................................... 7
Section 3. Covenants of the Company.................................................................... 8
(a) Compliance with Securities Regulations and Commission Requests........................ 8
(b) Filing of Amendments.................................................................. 9
(c) Delivery of Registration Statements................................................... 9
(d) Delivery of Prospectuses.............................................................. 9
(e) Continued Compliance with Securities Laws............................................. 9
(f) Blue Sky Qualifications...............................................................10
(g) Earnings Statement....................................................................10
(h) Use of Proceeds.......................................................................10
(i) Preparation of Prospectus Supplement..................................................10
(j) Reporting Requirements................................................................10
(k) Lock-up Period........................................................................10
Section 4. Payment of Expenses.........................................................................11
Section 5. Conditions of the Underwriter's Obligations.................................................11
(a) Effectiveness of Registration Statement...............................................11
(b) Opinions..............................................................................12
(c) Officers' Certificate.................................................................15
(d) Accountant's Comfort Letter...........................................................16
(e) Bring-down Comfort Letter.............................................................16
(f) Listing...............................................................................16
(g) Lock-up Agreements....................................................................16
</TABLE>
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<TABLE>
<S> <C> <C>
(h) Additional Documents..................................................................16
(i) Over-allotment Option.................................................................16
Section 6. Indemnification.............................................................................18
(a) Indemnification of the Underwriter....................................................18
(b) Indemnification of Company, Directors and Officers....................................19
(c) Actions Against Parties; Notification.................................................19
(d) Settlement without Consent if Failure to Reimburse....................................20
(e) EDGAR.................................................................................20
Section 7. Contribution................................................................................20
Section 8. Representations, Warranties and Agreements to Survive Delivery..............................21
Section 9. Termination of Agreement....................................................................21
Section 10. Notices....................................................................................22
Section 11. Parties....................................................................................22
Section 12. Governing Law and Time.....................................................................22
</TABLE>
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870,000 Shares
HEALTH CARE PROPERTY INVESTORS, INC.
(a Maryland corporation)
Common Stock
(Par Value $1.00 Per Share)
PURCHASE AGREEMENT
------------------
April 27, 1999
Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Merrill Lynch World Headquarters
North Tower
World Financial Center
New York, New York 10281-1209
Dear Sirs:
Health Care Property Investors, Inc., a Maryland corporation (the
"Company"), confirms its agreement with Merrill Lynch, Pierce, Fenner & Smith
Incorporated (the "Underwriter") with respect to the sale by the Company and the
purchase by the Underwriter of 870,000 shares of Common Stock, par value $1.00
per share, of the Company ("Common Stock") and with respect to the grant by the
Company to the Underwriter of the option described in Section 2(b) hereof to
purchase all or any part of 130,000 additional shares of Common Stock to cover
over-allotments. The aforesaid 870,000 shares of Common Stock (the "Initial
Securities") to be purchased by the Underwriter and all or any part of the
shares of Common Stock subject to the option described in Section 2(b) hereof
(the "Option Securities") are collectively hereinafter called the "Securities."
The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement on Form S-3 (No. 333-57163) and a related
preliminary prospectus for the registration under the Securities Act of 1933, as
amended (the "1933 Act") of Common Stock, including the Securities, preferred
stock, par value $1.00 per share ("Preferred Stock"), and debt securities
(collectively, the "Registered Securities"), which registration
1
<PAGE>
statement has been declared effective by the Commission and copies of which have
heretofore been delivered to you. Such registration statement, in the form in
which it was declared effective, as amended through the date hereof, including
all documents incorporated or deemed to be incorporated by reference therein
through the date hereof, is hereinafter referred to as the "Original
Registration Statement." Any registration statement filed pursuant to Rule
462(b) of the rules and regulations of the Commission under the 1933 Act (the
"1933 Act Regulations") is herein referred to as the "Rule 462(b) Registration
Statement." The Original Registration Statement, together with any Rule 462(b)
Registration Statement, is hereinafter referred to as the "Registration
Statement." The Company proposes to file with the Commission pursuant to Rule
424(b) of the 1933 Act Regulations the Prospectus Supplement (as defined in
Section 3(i) hereof) relating to the Securities and the prospectus dated August
27, 1998 (the "Base Prospectus") relating to the Registered Securities, and has
previously advised you of all further information (financial and other) with
respect to the Company set forth therein. The Base Prospectus together with the
Prospectus Supplement, in their respective forms on the date hereof (being the
forms in which they are to be filed with the Commission pursuant to Rule 424(b)
of the 1933 Act Regulations), including all documents incorporated or deemed to
be incorporated by reference therein through the date hereof, are hereinafter
referred to as, collectively, the "Prospectus," except that if any revised
prospectus or prospectus supplement shall be provided to the Underwriter by the
Company for use in connection with the offering and sale of the Securities which
differs from the Prospectus (whether or not such revised prospectus or
prospectus supplement is required to be filed by the Company pursuant to Rule
424(b) of the 1933 Act Regulations), the term "Prospectus" shall refer to such
revised prospectus or prospectus supplement, as the case may be, from and after
the time it is first provided to the Underwriter for such use. Unless the
context otherwise requires, all references in this Agreement to documents,
financial statements and schedules and other information which is "contained",
"included", "stated", "described in" or "referred to" in the Registration
Statement or the Prospectus (and all other references of like import) shall be
deemed to mean and include all such documents, financial statements and
schedules and other information which is or is deemed to be incorporated by
reference in the Registration Statement or the Prospectus, as the case may be;
and all references in this Agreement to amendments or supplements to the
Registration Statement or the Prospectus shall be deemed to mean and include the
filing of any document under the Securities Exchange Act of 1934 (the "1934
Act") after the date of this Agreement which is or is deemed to be incorporated
by reference in the Registration Statement or the Prospectus, as the case may
be.
The Company understands that the Underwriter proposes to make a public
offering of the Securities as soon as the Underwriter deems advisable after this
Agreement has been executed and delivered.
Section 1. Representations and Warranties.
------------------------------
(a) The Company represents and warrants to the Underwriter as of the date
hereof (such date being hereinafter referred to as the "Representation Date")
and as of the Closing Time referred to in Section 2 as follows:
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(i) Compliance with Registration Requirements. The Company meets
-------------------------------------------------
the requirements for use of Form S-3 under the 1933 Act and the 1933 Act
Regulations. Each of the Original Registration Statement and any Rule
462(b) Registration Statement and the Base Prospectus, at the respective
times the Original Registration Statement, any Rule 462(b) Registration
Statement and any post-effective amendments thereto became effective and as
of the Representation Date, complied and comply in all material respects
with the requirements of the 1933 Act and the 1933 Act Regulations
(including Rule 415(a) of the 1933 Act Regulations), and did not and as of
the Representation Date do not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. No stop order
suspending the effectiveness of the Original Registration Statement or any
Rule 462(b) Registration Statement has been issued under the 1933 Act and
no proceedings for that purpose have been instituted or are pending or, to
the knowledge of the Company, are contemplated by the Commission, and any
request on the part of the Commission for additional information has been
complied with. The Prospectus, at the Representation Date (unless the term
"Prospectus" refers to a prospectus which has been provided to the
Underwriter by the Company for use in connection with the offering of the
Securities which differs from the Prospectus filed with the Commission
pursuant to Rule 424(b) of the 1933 Act Regulations, in which case at the
time it is first provided to the Underwriter for such use) and at the
Closing Time referred to in Section 2 hereof, does not and will not include
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided,
--------
however, that the representations and warranties in this subsection (i)
-------
shall not apply to statements in or omissions from the Registration
Statement or Prospectus made in reliance upon and in conformity with
information furnished to the Company in writing by the Underwriter
expressly for use in the Registration Statement or the Prospectus or the
information contained in any Statement of Eligibility and Qualification of
a trustee under the Trust Indenture Act of 1939, as amended (the "1939
Act") filed as an exhibit to the Registration Statement (a "Form T-1").
For purposes of this Section 1(a), all references to the Registration
Statement, any post-effective amendments thereto and the Prospectus shall
be deemed to include, without limitation, any electronically transmitted
copies thereof filed with the Commission pursuant to its Electronic Data
Gathering, Analysis, and Retrieval system ("EDGAR").
(ii) Incorporated Documents. The documents incorporated or deemed
------------------------------
to be incorporated by reference into the Prospectus pursuant to Item 12 of
Form S-3 under the 1933 Act, at the time they were or hereafter are filed
with the Commission, complied and will comply in all material respects with
the requirements of the 1934 Act and the rules and regulations of the
Commission thereunder (the "1934 Act Regulations"), and, when read together
and with the other information in the Prospectus, at the respective times
the Registration Statement and any amendments thereto became effective, at
the Representation Date and at Closing Time, did not, do not and will not
contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or
3
<PAGE>
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
(iii) Independent Accountants. The accountants who certified the
-------------------------------
financial statements and supporting schedules included or incorporated by
reference in the Registration Statement and Prospectus are independent
public accountants as required by the 1933 Act and the 1933 Act
Regulations.
(iv) Financial Statements. The financial statements and any
----------------------------
supporting schedules of the Company and its consolidated subsidiaries
included or incorporated by reference in the Registration Statement and the
Prospectus present fairly the consolidated financial position of the
Company and its consolidated subsidiaries as at the dates indicated and the
results of their operations for the periods specified; and, except as
otherwise stated in the Registration Statement and the Prospectus, said
financial statements have been prepared in conformity with generally
accepted accounting principles applied on a consistent basis; and the
supporting schedules included or incorporated by reference in the
Registration Statement present fairly the information required to be stated
therein; the selected financial data and the summary financial information
included in the Prospectus present fairly the information shown therein and
have been compiled on a basis consistent with that of the audited financial
statements included in the Registration Statement and the Prospectus; the
pro forma financial statements and the related notes thereto included in
documents incorporated or deemed to be incorporated by reference in the
Registration Statement and the Prospectus 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 and have been
properly compiled on the bases described therein, and the assumptions used
in the preparation thereof are reasonable and the adjustments used therein
are appropriate to give effect to the transactions and circumstances
referred to therein; and the Company's ratios of earnings to fixed charges
included in the Prospectus under the caption "Ratio of Earnings to Fixed
Charges" and in Exhibit 12 to the Registration Statement have been
calculated in compliance with Item 503(d) of Regulation S-K of the
Commission.
(v) No Material Adverse Change in Business. Since the respective
----------------------------------------------
dates as of which information is given in the Registration Statement and
the Prospectus, except as otherwise stated therein or contemplated thereby,
(A) there has been no material adverse change in the condition, financial
or otherwise, or in the earnings, business affairs or business prospects of
the Company and its subsidiaries considered as one enterprise, whether or
not arising in the ordinary course of business, (B) there have been no
transactions entered into by the Company or any of its subsidiaries, other
than those in the ordinary course of business, which are material with
respect to the Company and its subsidiaries considered as one enterprise,
and (C) except for regular quarterly dividends on the Common Stock, the
Company's 7 7/8% Series A Cumulative Redeemable Preferred Stock (the
"Series A Preferred Stock") and the Company's 8.70% Series B Cumulative
Redeemable Preferred Stock (the "Series B Preferred Stock"), there has been
4
<PAGE>
no dividend or distribution of any kind declared, paid or made by the
Company on any class of its capital stock.
(vi) Good Standing of the Company. The Company has been duly
------------------------------------
incorporated and is validly existing as a corporation in good standing
under the laws of the State of Maryland with corporate power and authority
to own, lease and operate its properties and to conduct its business as
described in the Prospectus; the Company is duly qualified as a foreign
corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except
where the failure to so qualify and be in good standing would not have a
material adverse effect on the condition, financial or otherwise, or the
earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise; and the Company is in
substantial compliance with all laws, ordinances and regulations of each
state in which it owns properties that are material to the properties and
business of the Company and its subsidiaries considered as one enterprise
in such state.
(vii) Good Standing of Subsidiaries. Each subsidiary of the Company
-------------------------------------
which is a significant subsidiary (each, a "Significant Subsidiary") as
defined in Rule 405 of Regulation C of the 1933 Act Regulations has been
duly organized and is validly existing as a corporation or partnership, as
the case may be, in good standing under the laws of the jurisdiction of its
organization, has power and authority as a corporation or partnership, as
the case may be, to own, lease and operate its properties and conduct its
business as described in the Prospectus and is duly qualified as a foreign
corporation or partnership, as the case may be, to transact business and is
in good standing in each jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure to so qualify would not have
a material adverse effect on the condition, financial or otherwise, or the
earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise; all of the issued and
outstanding capital stock of each such corporate subsidiary has been duly
authorized and validly issued, is fully paid and non-assessable and, except
for directors' qualifying shares, is owned by the Company, directly or
through subsidiaries, free and clear of any security interest, mortgage,
pledge, lien, encumbrance, claim or equity; and all of the issued and
outstanding partnership interests of each such subsidiary which is a
partnership have been duly authorized (if applicable) and validly issued
and are fully paid and non-assessable and (except for other partnership
interests described in the Prospectus) are owned by the Company, directly
or through corporate subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance, claim or equity.
(viii) REIT Status. The Company has at all times operated in such
-------------------
manner as to qualify as a "real estate investment trust" under the Internal
Revenue Code of 1986, as amended (the "Code"), and intends to continue to
operate in such manner.
5
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(ix) Capitalization. The authorized capital stock of the Company
----------------------
is as set forth in the Prospectus under "Capitalization" (except for
subsequent issuances, if any, pursuant to reservations, agreements or
employee benefit plans referred to in the Prospectus); the shares of issued
Common Stock have been duly authorized and validly issued and are fully
paid and non-assessable; the Company has the requisite corporate power and
authority to execute and deliver this Agreement and to perform its
obligations hereunder and the Securities have been duly authorized for
issuance and sale to the Underwriter pursuant to this Agreement and, when
issued and delivered by the Company pursuant to this Agreement against
payment of the consideration set forth herein, will be validly issued and
fully paid and non-assessable; the Common Stock and the Preferred Stock
conform to all statements relating thereto contained in the Prospectus and
such descriptions conform to the rights set forth in the instruments
defining the same; the issuance of the Securities is not subject to
preemptive rights or similar rights; and, after giving effect to the sale
of the Securities and the sale of any other of the Registered Securities to
be issued prior to the delivery of the Securities, the aggregate amount of
Securities which have been issued and sold by the Company will not exceed
the aggregate amount of theretofore unsold Registered Securities.
(x) Absence of Defaults and Conflicts. Neither the Company nor
-----------------------------------------
any of its subsidiaries is in violation of its charter or bylaws or in
material default in the performance or observance of any obligation,
agreement, covenant or condition contained in any contract, indenture,
mortgage, loan agreement, note, lease or other instrument to which the
Company or any of its subsidiaries is a party or by which it or any of them
or their properties may be bound or to which any of the property or assets
of the Company or any of its subsidiaries is subject and in which the
violation or default might result in a material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one
enterprise; and the execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated herein and compliance
by the Company with its obligations hereunder have been duly authorized by
all necessary corporate action and will not conflict with or constitute a
breach of, or default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or
any of its subsidiaries pursuant to any contract, indenture, mortgage, loan
agreement, note, lease or other instrument to which the Company or any of
its subsidiaries is a party or by which it or any of them may be bound, or
to which any of the property or assets of the Company or any of its
subsidiaries is subject, nor will such action result in any violation of
the provisions of the charter or bylaws of the Company or any law,
administrative regulation or administrative or court order or decree.
(xi) Absence of Proceedings. There is no action, suit or
------------------------------
proceeding before or by any court or governmental agency or body, domestic
or foreign, now pending, or, to the knowledge of the Company, threatened,
against or affecting the Company or any of its subsidiaries, which is
required to be disclosed in the Registration Statement (other than as
disclosed therein), or which might result in any material adverse change in
the condition,
6
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financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one enterprise,
or which might materially and adversely affect the properties or assets
thereof or which might materially and adversely affect the consummation of
this Agreement or any transaction contemplated hereby; all pending legal or
governmental proceedings to which the Company or any of its subsidiaries is
a party or of which any of their respective property or assets is the
subject which are not described in or incorporated by reference in the
Registration Statement, including ordinary routine litigation incidental to
the business, are, considered in the aggregate, not material; and there are
no contracts or documents of the Company or any of its subsidiaries which
are required to be filed or incorporated by reference as exhibits to, or
incorporated by reference in, the Registration Statement by the 1933 Act or
by the 1933 Act Regulations which have not been so filed.
(xii) Absence of Further Requirements. No authorization, approval,
---------------------------------------
consent, order or decree of any court or governmental authority or agency
is required for the consummation by the Company of the transactions
contemplated by this Agreement or in connection with the offering, issuance
or sale of the Securities hereunder, except such as may be required under
the 1933 Act or the 1933 Act Regulations or state securities laws.
(xiii) Authorization of Purchase Agreement. This Agreement has been
-------------------------------------------
duly authorized, executed and delivered by the Company and, upon execution
and delivery by the Underwriter, will be a valid and legally binding
agreement of the Company.
(xiv) Title to Property. The Company and its subsidiaries have good
-------------------------
title to all real property or interests in real property owned by it or any
of them, in each case free and clear of all liens, encumbrances and defects
except such as are stated in or included in documents incorporated or
deemed to be incorporated by reference in the Prospectus or such as would
not materially adversely affect the condition, financial or otherwise, or
the earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise; the Company and its subsidiaries
have obtained satisfactory confirmations (consisting of policies of title
insurance or commitments or binders therefor or opinions of counsel based
upon the examination of abstracts) confirming, except as otherwise
described in the Prospectus, (A) that the Company and its subsidiaries have
the foregoing title to such real property and interests in real property,
and (B) that the instruments securing the Company's and its subsidiaries'
real estate mortgage loans create valid liens upon the real properties
described in such instruments enjoying the priorities intended, subject
only to exceptions to title which have no material adverse effect on the
value of such real properties and interests in relation to the Company and
its subsidiaries considered as one enterprise; and no material real
property and buildings are held under lease by the Company (other than
long-term ground leases).
(xv) Investment Company Act. The Company is not required to be
------------------------------
registered under the Investment Company Act of 1940, as amended (the "1940
Act").
7
<PAGE>
(b) Any certificate signed by any officer of the Company and delivered to
the Underwriter or to counsel for the Underwriter shall be deemed a
representation and warranty by the Company to the Underwriter as to the matters
covered thereby.
Section 2. Sale and Delivery to the Underwriter; Closing.
---------------------------------------------
(a) On the basis of the representations and warranties herein contained
and subject to the terms and conditions herein set forth, the Company agrees to
sell to the Underwriter and the Underwriter agrees to purchase from the Company,
at $29.8279 per share, the Initial Securities.
(b) In addition, on the basis of the representations and warranties herein
contained and subject to the terms and conditions herein set forth, the Company
hereby grants an option to the Underwriter to purchase up to an additional
130,000 shares of Common Stock at the price per share set forth in paragraph (a)
above. The option hereby granted will expire 30 days after the Representation
Date, and may be exercised in whole or in part from time to time only for the
purpose of covering over-allotments which may be made in connection with the
offering and distribution of the Initial Securities upon notice by the
Underwriter to the Company setting forth the number of Option Securities as to
which the Underwriter is then exercising the option and the time, date and place
of payment and delivery for such Option Securities. Any such time and date of
delivery (a "Date of Delivery") shall be determined by the Underwriter, but
shall not be later than seven full business days after the exercise of said
option, nor in any event prior to Closing Time, as hereinafter defined, unless
otherwise agreed upon by the Underwriter and the Company.
(c) Payment of the purchase price for, and delivery of certificates for,
the Initial Securities shall be made at the office of Latham & Watkins, 633 West
Fifth Street, Suite 4000, Los Angeles, California 90071-2007, or at such other
place as shall be agreed upon by the Underwriter and the Company, at 7:00 A.M.,
Los Angeles time, on May 3, 1999, or such other time not later than ten business
days after such date as shall be agreed upon by the Underwriter and the Company
(such time and date of payment and delivery being herein called "Closing Time").
In addition, in the event that any or all of the Option Securities are purchased
by the Underwriter, payment of the purchase price for and delivery of
certificates for such Option Securities shall be made at the above-mentioned
office of Latham & Watkins, or at such other place as shall be mutually agreed
upon by the Underwriter and the Company, on each Date of Delivery as specified
in the notice from the Underwriter to the Company. Payment shall be made to the
Company by wire transfer of immediately available funds to a bank account
designated by the Company against delivery to the Underwriter of certificates
for the Securities to be purchased by the Underwriter. Certificates for the
Initial Securities and the Option Securities shall be in such denominations and
registered in such names as the Underwriter may request in writing at least one
business day before Closing Time or the relevant Date of Delivery, as the case
may be. The certificates for the Initial Securities and the Option Securities,
if any, will be made available for examination and packaging by the Underwriter
not later than 10:00 A.M. on the last business day prior to Closing Time or the
relevant Date of Delivery, as the case may be in New York, New York.
8
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Section 3. Covenants of the Company. The Company covenants with the
------------------------
Underwriter as follows:
(a) Compliance with Securities Regulations and Commission Requests.
--------------------------------------------------------------
The Company will notify the Underwriter immediately, and confirm the notice
in writing, (i) of the effectiveness of any post-effective amendment to the
Registration Statement, (ii) of the mailing or the delivery to the
Commission for filing of the Prospectus or any amendment to the
Registration Statement or amendment or supplement to the Prospectus or any
document to be filed pursuant to the 1934 Act during any period when the
Prospectus is required to be delivered under the 1933 Act, (iii) of the
receipt of any comments or inquiries from the Commission relating to the
Registration Statement or Prospectus, (iv) of any request by the Commission
for any amendment to the Registration Statement or any amendment or
supplement to the Prospectus or for additional information, (v) of the
issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement or the initiation of any proceeding for that
purpose, and (vi) of the issuance by any state securities commission or
other regulatory authority of any order suspending the qualification or the
exemption from qualification of the Securities under state securities or
Blue Sky laws or the initiation of any proceedings for that purpose. The
Company will make every reasonable effort to prevent the issuance by the
Commission of any stop order and, if any such stop order is issued, to
obtain the lifting thereof at the earliest possible moment. The Company
will provide the Underwriter with copies of the form of Prospectus, in such
number as the Underwriter may reasonably request, and file or transmit for
filing with the Commission such Prospectus in accordance with Rule 424(b)
of the 1933 Act Regulations by the close of business in New York on the
second business day immediately succeeding the date hereof.
(b) Filing of Amendments. The Company will give the Underwriter
------------------------
notice of its intention to file or prepare any amendment to the
Registration Statement (including any filing under Rule 462(b)) or any
amendment or supplement to the Prospectus (including any revised prospectus
which the Company proposes for use by the Underwriter in connection with
the offering of the Securities that differs from the prospectus filed with
the Commission pursuant to Rule 424(b) of the 1933 Act Regulations, whether
or not such revised prospectus is required to be filed pursuant to Rule
424(b) of the 1933 Act Regulations or any abbreviated term sheet prepared
in reliance on Rule 434 of the 1933 Act Regulations), will furnish the
Underwriter with copies of any such amendment or supplement a reasonable
amount of time prior to such proposed filing or use, as the case may be,
and will not file any such amendment or supplement or use any such
prospectus to which the Underwriter or counsel for the Underwriter shall
reasonably object.
(c) Delivery of Registration Statements. The Company will deliver
-----------------------------------
to the Underwriter as many signed copies of the Registration Statement as
originally filed and of each amendment thereto (including exhibits filed
therewith and documents incorporated or deemed to be incorporated by
reference therein) as the Underwriter may reasonably request and will also
deliver to the Underwriter as many conformed copies of
9
<PAGE>
the Registration Statement as originally filed and of each amendment
thereto (including documents incorporated or deemed to be incorporated by
reference therein but without exhibits filed therewith) as the Underwriter
may reasonably request.
(d) Delivery of Prospectuses. The Company will furnish to the
----------------------------
Underwriter, from time to time during the period when the Prospectus is
required to be delivered under the 1933 Act or the 1934 Act, such number of
copies of the Prospectus (as amended or supplemented) as the Underwriter
may reasonably request for the purposes contemplated by the 1933 Act or the
1934 Act or the respective applicable rules and regulations of the
Commission thereunder.
(e) Continued Compliance with Securities Laws. If any event shall
---------------------------------------------
occur as a result of which it is necessary, in the opinion of counsel for
the Underwriter or counsel for the Company, to amend or supplement the
Prospectus in order to make the Prospectus not misleading in the light of
the circumstances existing at the time it is delivered to a purchaser, the
Company will forthwith amend or supplement the Prospectus (in form and
substance satisfactory to counsel for the Underwriter) so that, as so
amended or supplemented, the Prospectus will not contain an untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances
existing at the time it is delivered to a purchaser, not misleading, and
the Company will furnish to the Underwriter a reasonable number of copies
of such amendment or supplement.
(f) Blue Sky Qualifications. The Company will endeavor, in
---------------------------
cooperation with the Underwriter, to qualify the Securities for offering
and sale under the applicable securities laws of such states and other
jurisdictions of the United States as the Underwriter may designate;
provided, however, that the Company shall not be obligated to file any
general consent to service of process or to qualify as a foreign
corporation in any jurisdiction in which it is not so qualified. In each
jurisdiction in which the Securities shall have been so qualified, the
Company will file such statements and reports as may be required by laws of
such jurisdiction to continue such qualification in effect for as long as
may be required for the distribution of the Securities.
(g) Earnings Statement. The Company will make generally available to
----------------------
its security holders as soon as practicable, but not later than 60 days
after the close of the period covered thereby, an earnings statement (in
form complying with the provisions of Rule 158 of the 1933 Act Regulations)
covering the twelve month period beginning not later than the first day of
the Company's fiscal quarter next following the "effective date" (as
defined in said Rule 158) of the Registration Statement.
(h) Use of Proceeds. The Company will use the net proceeds received
-------------------
by it from the sale of the Securities in the manner to be specified in the
Prospectus Supplement under "Use of Proceeds."
10
<PAGE>
(i) Preparation of Prospectus Supplement. Immediately following the
----------------------------------------
execution of this Agreement, the Company will prepare a prospectus
supplement, dated the date hereof (the "Prospectus Supplement"), containing
the terms of the Securities, the plan of distribution thereof and such
other information as may be required by the 1933 Act or the 1933 Act
Regulations or as the Underwriter and the Company deem appropriate, and
will file or transmit for filing with the Commission in accordance with
Rule 424(b) of the 1933 Act Regulations copies of the Prospectus (including
such Prospectus Supplement).
(j) Reporting Requirements. The Company, during the period when the
--------------------------
Prospectus is required to be delivered under the 1933 Act or the 1934 Act,
will file promptly all documents required to be filed with the Commission
pursuant to Section 13, 14 or 15 of the 1934 Act within the time periods
required by the 1934 Act and the 1934 Act Regulations.
(k) Lock-up Period. During a period of 90 days from the date of this
------------------
Agreement, the Company will not without the prior written consent of the
Underwriter, directly or indirectly (i) offer, pledge, sell, contract to
sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase or
otherwise transfer or dispose of any shares of Common Stock or any
securities convertible into or exercisable or exchangeable for Common Stock
or file any registration statement under the 1933 Act with respect to the
foregoing or (ii) enter into any swap or other agreement or transaction
that transfers, in whole or in part, directly or indirectly, the economic
consequences of ownership of Common Stock, whether any such swap,
agreement, or other transaction described in (i) or (ii) above is to be
settled by delivery of Common Stock, other securities, cash or otherwise,
except for (A) Common Stock issued pursuant to this Agreement, (B) Common
Stock issued or options to purchase Common Stock granted pursuant to
existing employee benefit plans of the Company, (C) Common Stock issued or
securities exchangeable for shares of Common Stock in connection with the
acquisition of properties or interests therein (provided that the
recipients of such Common Stock or securities referred to in this clause
(C), other than recipients of units of HCPI/Utah LLC pursuant to agreements
in effect on the date hereof, agree in writing to lock-up provisions
substantially identical to those contained in the Lock-Up Agreement
attached hereto as Exhibit B), or (D) Common Stock issuable upon the
exchange of non-managing member units of Cambridge Medical Properties, LLC,
a Delaware limited liability company, issued to Cambridge Medical Center of
San Diego, LLC on November 21, 1997.
Section 4. Payment of Expenses. The Company will pay all expenses
-------------------
incident to the performance of its obligations under this Agreement, including
(i) the printing and filing of the Registration Statement as originally filed
and of each amendment thereto, (ii) the preparation, issuance and delivery of
the certificates for the Securities to the Underwriter, (iii) the fees and
disbursements of the Company's counsel and accountants, (iv) the qualification
of the Securities under securities laws in accordance with the provisions of
Section 3(f) hereof, including filing fees and the reasonable fee and
disbursements of counsel for the Underwriter in connection
11
<PAGE>
therewith and in connection with the preparation of a Supplemental Blue Sky
Survey, (v) the printing and delivery to the Underwriter in quantities as
hereinabove stated of copies of the Registration Statement as originally filed
and of each amendment thereto, of each preliminary prospectus and preliminary
prospectus supplement and of the Prospectus and Prospectus Supplement and any
amendments or supplements thereto, including any abbreviated term sheet
delivered by the Company pursuant to Rule 434 of the 1933 Act Regulations, (vi)
the printing and delivery to the Underwriter of copies of the Supplemental Blue
Sky Survey and (vii) the fees and expenses incurred in connection with the
listing of the Securities on the New York Stock Exchange.
If this Agreement is cancelled or terminated by the Underwriter in
accordance with the provisions of Section 5 or Section 9(a)(i) hereof, the
Company shall reimburse the Underwriter for all of its out-of-pocket expenses,
including the reasonable fee and disbursements of counsel for the Underwriter.
Section 5. Conditions of the Underwriter's Obligations. The obligations
-------------------------------------------
of the Underwriter hereunder are subject to the accuracy of the representations
and warranties of the Company herein contained, to the performance by the
Company of its obligations hereunder, and to the following further conditions:
(a) Effectiveness of Registration Statement. At Closing Time no stop
-------------------------------------------
order suspending the effectiveness of the Registration Statement shall have
been issued under the 1933 Act or proceedings therefor initiated or
threatened by the Commission. The Prospectus (including the Prospectus
Supplement referred to in Section 3(i) hereof) shall have been filed or
transmitted for filing with the Commission pursuant to Rule 424(b) of the
1933 Act Regulations within the prescribed time period, and prior to
Closing Time the Company shall have provided evidence satisfactory to the
Underwriter of such timely filing or transmittal.
(b) Opinions. At Closing Time the Underwriter shall have received:
------------
(1) The favorable opinion, dated as of Closing Time, of Latham &
Watkins, special counsel for the Company, as set forth in Exhibit A
hereto.
(2) The favorable opinion, dated as of Closing Time, of Latham &
Watkins, special counsel for the Company, in form and scope
satisfactory to counsel for the Underwriter and subject to customary
assumptions, limitations and exceptions acceptable to counsel for the
Underwriter, to the effect that:
(i) the Company was organized in conformity with the
requirements for qualification as a real estate investment trust
under the Code commencing with its taxable year ending December
31, 1985, and its proposed method of operation will enable it to
meet the requirements
12
<PAGE>
for qualification and taxation as a real estate investment trust
under the Code; and
(ii) the information in the Prospectus under the captions
"Certain Federal Income Tax Considerations to the Company," and
"Material Federal Income Tax Considerations to Holders of Common
Stock," insofar as such statements constitute matters of law,
summaries of legal matters, documents or proceedings, or legal
conclusions, has been reviewed by them and is accurate in all
material respects.
(3) The favorable opinion, dated as of Closing Time, of Ballard
Spahr Andrews & Ingersoll, LLP, Maryland counsel for the Company, in
form and scope satisfactory to counsel for the Underwriter, to the
effect that:
(i) The Company has been duly incorporated and is
validly existing as a corporation in good standing under the laws
of the State of Maryland.
(ii) The Company has the corporate power and authority to
own, lease and operate its properties and to conduct its business
as described in the Prospectus.
(iii) The authorized capital stock of the Company is as
set forth in the Prospectus under "Capitalization."
(iv) The Securities have been duly authorized for
issuance and sale to the Underwriter pursuant to this Agreement
and, when issued and delivered by the Company pursuant to this
Agreement against payment of the consideration set forth herein,
will be validly issued and fully paid and non-assessable. The
issuance of such Securities is not subject to preemptive rights
under the charter or bylaws of the Company or the Maryland
General Corporation Law.
(v) Texas HCP, Inc. has been duly incorporated and is
validly existing as a corporation in good standing under the laws
of the State of Maryland and has the corporate power and
authority to own, lease and operate its properties and to conduct
its business as described in the Prospectus. All of the issued
and outstanding shares of capital stock of such subsidiary has
been duly authorized and validly issued, is fully paid and non-
assessable and is owned by the Company, directly or through
subsidiaries, free and clear of any security interest, mortgage,
pledge, lien, or claim.
(vi) The execution and delivery of this Agreement has
been duly and validly authorized by all necessary corporate
action on the part of the
13
<PAGE>
Company under its charter and bylaws and the Maryland General
Corporation Law. This Agreement has been duly executed and
delivered by the Company.
(vii) The Common Stock conforms to the description thereof
contained in the Prospectus and the form of certificate used to
evidence the Securities is in due and proper form.
(viii) The issuance and sale of the Securities by the
Company and the compliance by the Company with the provisions of
this Agreement and the consummation of the transactions
contemplated hereby, will not result in any violation of the
provisions of the charter or bylaws of the Company.
(ix) No authorization, approval, consent, decree or order
of any court or governmental authority or agency is required
under the Maryland General Corporation Law for the consummation
by the Company of the transactions contemplated by this Agreement
or in connection with the sale of the Securities hereunder,
except such as may have been obtained or rendered, as the case
may be.
In rendering its opinion, Ballard Spahr Andrews & Ingersoll, LLP
shall state that each of Brown & Wood llp, in rendering its opinion
pursuant to Section 5(b)(5), and Latham & Watkins, in rendering its
opinion pursuant to Section 5(b)(1), may rely upon such opinion as to
matters arising under the laws of the State of Maryland.
(4) The favorable opinion, dated as of Closing Time, of Edward J.
Henning, General Counsel of the Company, in form and scope
satisfactory to counsel for the Underwriter, to the effect that:
(i) To the best of such counsel's knowledge and
information, the Company is duly qualified as a foreign
corporation to transact business and is in good standing in each
jurisdiction in which its ownership or lease of substantial
properties or the conduct of its business requires such
qualification, except where the failure to so qualify would not
have a material adverse effect on the condition, financial or
otherwise, or the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one
enterprise.
(ii) To the best of such counsel's knowledge and
information, each Significant Subsidiary of the Company is duly
qualified as a foreign corporation to transact business and is in
good standing in each jurisdiction in which its ownership or
lease of substantial properties or the conduct of its business
requires such qualification, except where the failure to so
qualify and be in good standing would not have a material
14
<PAGE>
adverse effect on the condition, financial or otherwise, or the
earnings, business affairs or business prospects of the Company
and its subsidiaries considered as one enterprise.
(iii) To the best of such counsel's knowledge and
information, no material default exists in the due performance or
observance by the Company or any of its subsidiaries of any
obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, lease or
other instrument described or referred to in the Registration
Statement or filed as an exhibit thereto or incorporated by
reference therein which would have a material adverse effect on
the condition, financial or otherwise, or in the earnings,
business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise.
(iv) To the best of such counsel's knowledge and
information, there are no contracts, indentures, mortgages, loan
agreements, notes, leases or other instruments or documents
required to be described or referred to in the Registration
Statement or to be filed as exhibits thereto other than those
described or referred to therein or filed or incorporated by
reference as exhibits thereto and the descriptions thereof or
references thereto are correct.
(v) The authorized, issued and outstanding capital stock
of the Company is as set forth in the Prospectus under
"Capitalization" (except for subsequent issuances, if any,
pursuant to reservations, agreements, dividend reinvestment plans
or employee or director stock plans referred to in the
Prospectus), and the shares of issued and outstanding Common
Stock and Preferred Stock have been duly authorized and validly
issued and are fully paid and non-assessable.
(vi) To the best of such counsel's knowledge, there are
no legal or governmental proceedings pending or threatened which
are required to be disclosed in the Prospectus.
(vii) The issue and sale of the Securities and the
compliance by the Company with the provisions of this Agreement
and the consummation of the transactions contemplated herein will
not, to the best of such counsel's knowledge, result in any
material violation of any order applicable to the Company of any
court or governmental agency or body having jurisdiction over the
Company or any of its subsidiaries or any of their properties.
(5) The favorable opinion, dated as of Closing Time, of Brown &
Wood LLP, counsel for the Underwriter, with respect to the matters set
forth in paragraph
15
<PAGE>
(ii) of Exhibit A hereto and in subparagraphs (i), (iv), (vi) and
(vii) of subsection (b)(3) of this Section. In rendering such opinion,
Brown & Wood llp may rely upon the opinion of Ballard Spahr Andrews &
Ingersoll, LLP, rendered pursuant to Section 5(b)(3), as to matters
arising under the laws of the State of Maryland.
(6) In giving their opinions required by subsections (b)(1) and
(b)(5), respectively, of this Section, Latham & Watkins and Brown &
Wood llp shall each additionally state that nothing has come to their
attention that would cause them to believe that the Registration
Statement, at the time it became effective, contained an untrue
statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements
therein not misleading or that the Prospectus, at the Representation
Date (unless the term "Prospectus" refers to a prospectus which has
been provided to the Underwriter by the Company for use in connection
with the offering of the Securities which differs from the Prospectus
on file at the Commission at the Representation Date, in which case at
the time it is first provided to the Underwriter for such use) or at
Closing Time, included or includes an untrue statement of a material
fact or omitted or omits to state a material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading; it being understood that
such counsel shall express no opinion with respect to the financial
statements, schedules and other financial data in the Registration
Statement or the Prospectus. In giving their opinions, Latham &
Watkins and Brown & Wood llp may rely, to the extent recited therein,
(A) as to all matters of fact, upon certificates and written
statements of officers of the Company and (B) as to the qualification
and good standing of the Company and each Significant Subsidiary to do
business in any state or jurisdiction, upon certificates of
appropriate government officials.
(c) Officers' Certificate. At Closing Time there shall not have been,
-------------------------
since the date hereof or since the respective dates as of which information
is given in the Registration Statement and the Prospectus, any material
adverse change in the condition, financial or otherwise, or in the
earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise, whether or not arising in the
ordinary course of business, and the Underwriter shall have received a
certificate of the President or a Vice President of the Company and the
chief financial or chief accounting officer of the Company, dated as of
Closing Time, to the effect that (i) there has been no such material
adverse change, (ii) the representations and warranties in Section 1 hereof
are true and correct with the same force and effect as though expressly
made at and as of Closing Time, (iii) the Company has performed or complied
with all agreements and satisfied all conditions on its part to be
performed or satisfied at or prior to Closing Time, and (iv) no stop order
suspending the effectiveness of the Registration Statement has been issued
and no proceedings for that purpose have been initiated or, to the best
knowledge and information of such officer, threatened by the Commission.
As used in this
16
<PAGE>
Section 5(c), the term "Prospectus" means the Prospectus in the form first
used to confirm sales of the Securities.
(d) Accountant's Comfort Letter. At the time of execution of this
-------------------------------
Agreement, the Underwriter shall have received from Arthur Andersen llp a
letter, dated such date, in form and substance satisfactory to the
Underwriter, containing statements and information of the type ordinarily
included in accountants "comfort letters" to underwriters with respect to
financial statements and financial information included and incorporated by
reference in the Registration Statement and the Prospectus (including,
without limitation, the pro forma financial statements, if any) and
substantially in the same form as the draft letter previously delivered to
and approved by the Underwriter.
(e) Bring-down Comfort Letter. At Closing Time the Underwriter shall
-----------------------------
have received from Arthur Andersen llp a letter, dated as of Closing Time,
to the effect that they reaffirm the statements made in the letter
furnished pursuant to subsection (d) of this Section, except that the
specified date referred to therein shall be a date not more than three
business days prior to Closing Time.
(f) Listing. At Closing Time the Securities shall have been duly
-----------
listed, subject to notice of issuance, on the New York Stock Exchange.
(g) Lock-up Agreements. The Underwriter shall have received an
----------------------
agreement substantially in the form of Exhibit B hereto signed by the
persons listed on Schedule A hereto, dated as of the date of this
Agreement.
(h) Additional Documents. At Closing Time and each Date of Delivery,
------------------------
if any, counsel for the Underwriter shall have been furnished with such
documents and opinions as they may reasonably require for the purpose of
enabling them to pass upon the issuance and sale of the Securities as
herein contemplated and related proceedings, or in order to evidence the
accuracy and completeness of any of the representations and warranties, or
the fulfillment of any of the conditions, herein contained; and all
proceedings taken by the Company in connection with the issuance and sale
of the Securities as herein contemplated shall be satisfactory in form and
substance to the Underwriter and counsel for the Underwriter.
(i) Over-allotment Option. In the event the Underwriter exercises its
-------------------------
option provided in Section 2 hereof to purchase all or any portion of the
Option Securities, the representations and warranties of the Company
contained herein and the statements in any certificates furnished by the
Company hereunder shall be true and correct as of each Date of Delivery,
and subject to the following further conditions:
(1) The Underwriter shall have received:
(i) The favorable opinion of Latham & Watkins, special
counsel for the Company, in form and substance satisfactory to
counsel for the
17
<PAGE>
Underwriter, dated such Date of Delivery, relating to the Option
Securities and otherwise to the same effect as the opinion
required by Sections 5(b)(1) and 5(b)(6) hereof.
(ii) The favorable opinion of Latham & Watkins, special
counsel for the Company, in form and substance satisfactory to
counsel for the Underwriter, dated such Date of Delivery,
reaffirming their opinion delivered at Closing Time pursuant to
Section 5(b)(2) hereof.
(iii) The favorable opinion of Ballard Spahr Andrews &
Ingersoll, LLP, Maryland counsel for the Company, in form and
substance satisfactory to counsel for the Underwriter, dated such
Date of Delivery, relating to the Option Securities and otherwise
to the same effect as the opinion required by Sections 5(b)(3)
hereof.
(iv) The favorable opinion of Edward J. Henning, General
Counsel of the Company, in form and substance satisfactory to
counsel for the Underwriter, dated such Date of Delivery,
reaffirming his opinion delivered at Closing Time pursuant to
Section 5(b)(4) hereof.
(v) The favorable opinion of Brown & Wood llp, counsel
for the Underwriter, dated such Date of Delivery, relating to the
Option Securities and otherwise to the same effect as the opinion
required by Sections 5(b)(5) and 5(b)(6) hereof.
(vi) A certificate of the President or a Vice President
of the Company and the chief financial or chief accounting
officer of the Company, dated such Date of Delivery, confirming
that the certificate delivered at Closing Time pursuant to
Section 5(c) hereof remains true and correct as of such Date of
Delivery.
(vii) A letter from Arthur Andersen llp, in form and
substance satisfactory to the Underwriter, dated such Date of
Delivery, substantially the same in scope and substance as the
letter furnished to the Underwriter pursuant to Section 5(e)
hereof except that the "specified date" in the letter furnished
pursuant to this subsection shall be a date not more than three
business days prior to such Date of Delivery.
If any condition specified in this Section shall not have been fulfilled
when and as required to be fulfilled, this Agreement may be terminated by the
Underwriter by notifying the Company at any time at or prior to Closing Time,
and such termination shall be without liability of any party to any other party
except as provided in Section 4 hereof. Notwithstanding any such termination,
the provisions of Sections 1, 4, 6, 7 and 8 shall remain in effect.
18
<PAGE>
Section 6. Indemnification.
---------------
(a) Indemnification of the Underwriter. The Company agrees to indemnify
--------------------------------------
and hold harmless the Underwriter and each person, if any, who controls the
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act, as follows:
(i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(or any amendment thereto), or any omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the
statements therein not misleading or arising out of any untrue statement or
alleged untrue statement of a material fact contained in any preliminary
prospectus, any preliminary prospectus supplement or the Prospectus (or any
amendment or supplement thereto) or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading;
(ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, if such settlement is effected with
the written consent of the Company; and
(iii) against any and all expense whatsoever, as incurred
(including, subject to Section 6(c) hereof, the fees and disbursements of
counsel chosen by the Underwriter), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever based upon any such untrue statement or omission, or
any such alleged untrue statement or omission, to the extent that any such
expense is not paid under (i) or (ii) above;
provided, however, that (A) this indemnity agreement shall not apply to any
- -------- -------
loss, liability, claim, damage or expense to the extent arising out of any
untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with written information furnished to the
Company by the Underwriter expressly for use in the Registration Statement (or
any amendment thereto) or any preliminary prospectus, preliminary prospectus
supplement or the Prospectus (or any amendment or supplement thereto), and (B)
with respect to any untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus or preliminary prospectus
supplement, this indemnity agreement shall not inure to the benefit of the
Underwriter (or to the benefit of any person controlling the Underwriter within
the meaning of Section 15 of the 1933 Act) to the extent that any such loss,
liability, claim, damage or expense of the Underwriter or any person controlling
the Underwriter results from the fact that the Underwriter sold Securities to a
person to whom it shall be established there was not sent or given by the
Underwriter or on the Underwriter's behalf at or prior to the written
confirmation of
19
<PAGE>
the sale of such Securities to such person, a copy of the Prospectus (as then
amended or supplemented), if required by law to have been so delivered, and if
the Prospectus (as so amended or supplemented) would have cured the defect
giving rise to such loss, liability, claim, damage or expense and provided that
the Company shall have met its obligation pursuant to this Agreement to provide
the Underwriter with such Prospectus (as so amended or supplemented).
(b) Indemnification of Company, Directors and Officers. The Underwriter
------------------------------------------------------
agrees to indemnify and hold harmless the Company, its directors, each of its
officers who signed the Registration Statement, and each person, if any, who
controls the Company within the meaning of Section 15 of the 1933 Act against
any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section, as incurred, but only
with respect to untrue statements or omissions, or alleged untrue statements or
omissions, made in the Registration Statement (or any amendment thereto) or any
preliminary prospectus, preliminary prospectus supplement or the Prospectus (or
any amendment or supplement thereto) in reliance upon and in conformity with
information furnished to the Company by the Underwriter expressly for use in the
Registration Statement (or any amendment thereto) or such preliminary
prospectus, preliminary prospectus supplement or the Prospectus (or any
amendment or supplement thereto).
(c) Actions Against Parties; Notification. Each indemnified party shall
-----------------------------------------
give written notice as promptly as reasonably practicable to each indemnifying
party of any action commenced against it in respect of which indemnity may be
sought hereunder, but failure to so notify an indemnifying party shall not
relieve such indemnifying party from any liability hereunder to the extent it is
not materially prejudiced as a result thereof and in any event shall not relieve
it from any liability which it may have otherwise than on account of this
indemnity agreement. In the case of parties indemnified pursuant to Section
6(a) above, counsel to the indemnified parties shall be selected by the
Underwriter, and, in the case of parties indemnified pursuant to Section 6(b)
above, counsel to the indemnified parties shall be selected by the Company. An
indemnifying party may participate at its own expense in the defense of any such
action; provided, however, that counsel to the indemnifying party shall not
-------- -------
(except with the consent of the indemnified party) also be counsel to the
indemnified party. In no event shall the indemnifying parties be liable for
fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this
Section 6 or Section 7 hereof (whether or not the indemnified parties are actual
or potential parties thereto), unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all liability
arising out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party.
20
<PAGE>
(d) Settlement without Consent if Failure to Reimburse. If at any time an
------------------------------------------------------
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of the nature contemplated by
Section 6(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of
the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such
settlement.
(e) EDGAR. For purposes of this Section 6, all references to the
---------
Registration Statement, any preliminary prospectus, preliminary prospectus
supplement or the Prospectus, or any amendment or supplement to any of the
foregoing, shall be deemed to include, without limitation, any electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR.
Section 7. Contribution. If the indemnification provided for in Section 6
------------
hereof is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company, on the one
hand, and the Underwriter, on the other hand, from the offering of the
Securities pursuant to this Agreement or (ii) if the allocation provided by
clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company, on the one hand, and of the
Underwriter, on the other hand, in connection with the statements or omissions
which resulted in such losses, liabilities, claims, damages or expenses, as well
as any other relevant equitable considerations.
The relative benefits received by the Company, on the one hand, and the
Underwriter, on the other hand, in connection with the offering of the
Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by
the Company and the total underwriting discount received by the Underwriter, in
each case as set forth on the cover of the Prospectus (or, if Rule 434 is used,
the corresponding location on the Term Sheet) bear to the aggregate public
offering price of the Securities as set forth on such cover (or corresponding
location on the Term Sheet, as the case may be).
The relative fault of the Company, on the one hand, and the Underwriter, on
the other hand, shall be determined by reference to, among other things, whether
any such untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the
Company or by the Underwriter and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.
21
<PAGE>
The Company and the Underwriter agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to above in this Section 7. The aggregate
amount of losses, liabilities, claims, damages and expenses incurred by an
indemnified party and referred to above in this Section 7 shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.
Notwithstanding the provisions of this Section 7, the Underwriter shall not
be required to contribute any amount in excess of the amount by which the total
price at which the Securities were offered exceeds the amount of any damages
which the Underwriter has otherwise been required to pay by reason of any such
untrue or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 7, each person, if any, who controls the
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as the Underwriter, and
each director of the Company, each officer of the Company who signed the
Registration Statement, and each person, if any, who controls the Company within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall
have the same rights to contribution as the Company.
Section 8. Representations, Warranties and Agreements to Survive Delivery.
--------------------------------------------------------------
All representations, warranties and agreements contained in this Agreement, or
contained in certificates of officers of the Company submitted pursuant hereto
or thereto, shall remain operative and in full force and effect, regardless of
any investigation made by or on behalf of the Underwriter or any controlling
person, or by or on behalf of the Company, and shall survive delivery of the
Securities to the Underwriter.
Section 9. Termination of Agreement.
------------------------
(a) The Underwriter may terminate this Agreement, by notice to the Company,
at any time at or prior to Closing Time (i) if there has been, since the date of
this Agreement or since the respective dates as of which information is given in
the Prospectus, any material adverse change in the condition, financial or
otherwise, or in the earnings, business affairs or business prospects of the
Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, (ii) if there has occurred any
material adverse change in the financial markets in the United States, any
outbreak of hostilities or other calamity or crisis
22
<PAGE>
or change or development involving a prospective change in national or
international political, financial or economic conditions, in each case the
effect of which on the financial markets of the United States is such as to make
it, in the judgement of the Underwriter, impracticable to market the Securities
or enforce contracts for the sale of the Securities, or (iii) if trading in the
securities of the Company has been suspended by the Commission, or if trading
generally on either the American Stock Exchange or the New York Stock Exchange
or in the NASDAQ National Market has been suspended, or minimum or maximum
prices for trading have been fixed, or maximum ranges for prices for securities
have been required, by either of said Exchanges or by order of the Commission,
the NASD or any other governmental authority, or if a banking moratorium has
been declared by either federal, New York, Maryland or California authorities.
As used in this Section 9(a), the term "Prospectus" means the Prospectus in the
form first used to confirm sales of the Securities.
(b) If this Agreement is terminated pursuant to this Section, such
termination shall be without liability of any party to any other party except as
provided in Section 4 hereof. Notwithstanding any such termination, the
provisions of Sections 4, 6, 7 and 8 shall remain in effect.
Section 10. Notices. All notices and other communications hereunder shall
-------
be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of written telecommunication. Notices to the
Underwriter shall be directed to it at Merrill Lynch & Co., 10877 Wilshire
Boulevard, Suite 1900, Los Angeles, CA 90024, Attention: James F. Flaherty III,
Managing Director, and notices to the Company shall be directed to it at 4675
MacArthur Court, 9th Floor, Newport Beach, California 92660, Attention: Kenneth
B. Roath, President and Chief Executive Officer, with a copy to Pamela B. Kelly,
Esq. at Latham & Watkins, 633 West Fifth Street, Suite 4000, Los Angeles,
California 90071.
Section 11. Parties. This Agreement shall inure to the benefit of and be
-------
binding upon the Underwriter and the Company and their respective successors.
Nothing expressed or mentioned in this Agreement is intended or shall be
construed to give any person, firm or corporation other than the Underwriter and
the Company and their respective successors and the controlling persons and the
officers and directors referred to in Sections 6 and 7 hereof and their heirs
and legal representatives any legal or equitable right, remedy or claim under or
in respect of this Agreement or any provision herein contained. This Agreement
and all conditions and provisions hereof are intended to be for the sole and
exclusive benefit of the Underwriter and the Company and their respective
successors, and said controlling persons and said officers and directors and
their heirs and legal representatives, and for the benefit of no other person,
firm or corporation. No purchaser of Securities from the Underwriter shall be
deemed to be a successor merely by reason of such purchase.
Section 12. Governing Law and Time. This Agreement shall be governed by
----------------------
and construed in accordance with the laws of the State of California applicable
to agreements made
23
<PAGE>
and to be performed in such State. Unless stated otherwise, all specified times
of day refer to New York City time.
24
<PAGE>
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Company a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement between
the Underwriter and the Company in accordance with its terms.
Very truly yours,
HEALTH CARE PROPERTY INVESTORS, INC.
By:___________________________________
Name:
Title:
CONFIRMED AND ACCEPTED,
as of the date first above written:
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By:___________________________________
Authorized Signatory
25
<PAGE>
SCHEDULE A
1. Kenneth B. Roath
2. James G. Reynolds
3. Devasis Ghose
4. Edward J. Henning
5. Paul V. Colony
6. Robert R. Fanning, Jr.
7. Michael D. McKee
8. Orville E. Melby
9. Harold M. Messmer, Jr.
10. Peter L. Rhein
11. Stephen R. Maulbetsch
26
<PAGE>
EXHIBIT A
May 3, 1999
MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
WORLD FINANCIAL CENTER
NORTH TOWER, 10TH FLOOR
NEW YORK, NEW YORK 10281-1209
Re: Health Care Property Investors, Inc.
------------------------------------
Ladies and Gentlemen:
We have acted as special counsel to Health Care Property Investors, Inc., a
Maryland corporation (the "Company"), in connection with the sale to you on the
date hereof by the Company, of shares of the Company's Common Stock, par value
$1.00 per share (the "Common Stock"), pursuant to (i) a registration statement
on Form S-3 under the 1933 Act, filed with the Securities and Exchange
Commission (the "Commission") on June 18, 1998 (File No. 333-57163), and as
declared effective by the Commission on June 30, 1998, (ii) a Prospectus dated
August 27, 1998, including the documents incorporated or deemed to be
incorporated by reference therein (the "Base Prospectus"), as supplemented by
the Prospectus Supplement dated April 27, 1999 filed with the Commission on ,
1999 pursuant to Rule 424(b) under the 1933 Act (the "Prospectus Supplement,"
and together with the Base Prospectus, the "Prospectus") and (iii) a purchase
agreement dated April 27, 1999 between you and the Company (the "Purchase
Agreement"). [ shares of Common Stock are being purchased pursuant to Section
2(b) of the Purchase Agreement by the Underwriter.]
This opinion is being rendered to you pursuant to Section 5(b)(1) of the
Purchase Agreement among Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and the Company. All capitalized terms used and not
specifically defined herein shall have the definitions ascribed to them in the
Purchase Agreement.
As such counsel, we have examined such matters of fact and questions of law
as we have considered appropriate for purposes of rendering the opinions
expressed below. We have examined, among other things, the following:
27
<PAGE>
(a) The Purchase Agreement; and
(b) (i) that certain indenture dated as of April 1, 1989 between the
Company and The Bank of New York, as Trustee, for debt securities; (ii) that
certain indenture dated as of September 1, 1993 between the Company and The Bank
of New York, as Trustee, for debt securities; (iii) that certain Fiscal Agency
Agreement dated as of November 8, 1993 between the Company and Chemical Bank, as
Fiscal Agent, for 6% Convertible Subordinated Notes due 2000; (iv) that certain
Amended and Restated Revolving Credit Agreement, dated as of October 22, 1997 as
amended and restated as of September 30, 1998, among the Company, the banks
identified on the signature pages thereof, The Bank of New York, as agent for
the banks, NationsBank, N.A., as co-agent, and BNY Capital Markets, Inc., as
lead arranger; and (v) that certain Amended and Restated $135,000,000 Revolving
Credit Agreement, dated as of October 22, 1997 as amended and restated as of
September 30, 1998, among the Company, the banks identified on the signature
pages thereof, The Bank of New York, as agent for the banks and as issuing bank
for letters of credit, NationsBank, N.A., as co-agent, and BNY Capital Markets,
Inc., as lead arranger (collectively, the "Material Agreements").
In our examination, we have assumed the genuineness of all signatures, the
authenticity of all documents submitted to us as originals and the conformity to
authentic original documents of all documents submitted to us as copies.
As to facts material to the opinions, statements and assumptions expressed
herein, we have, with your consent, relied exclusively upon oral or written
statements and representations of officers and other representations of the
Company and others. In addition, we have obtained and relied upon such
certificates and assurances from public officials as we have deemed necessary.
We are opining herein as to the effect on the subject transaction only of
the federal laws of the United States and the internal laws of the State of
California, and we express no opinion with respect to the applicability thereto,
or the effect thereon, of the laws of any other jurisdiction or as to any
matters of municipal law or the laws of any local agencies within any state. We
understand that various matters concerning the laws of the State of Maryland are
addressed in an opinion of Ballard Spahr Andrews & Ingersoll, LLP separately
provided to you, and we express no opinion with respect to those matters. In
rendering the opinions set forth below, we have, with your permission, assumed
that the Company is duly incorporated and is validly existing as a corporation
in good standing under the laws of the State of Maryland; that each of the
Purchase Agreement and the Common Stock to be sold pursuant to the Purchase
Agreement has been duly authorized, executed and delivered by the Company; and
that none of the issuance and sale of such Common Stock by the Company, or the
performance and compliance by the Company with the provisions of the Purchase
Agreement, the Common Stock, or the consummation of the transactions
contemplated thereby, will result in any violation of the provisions of the
charter or bylaws of the Company.
Our opinions set forth in paragraphs (iii) and (iv) below are based upon
our consideration of only those statutes, rules and regulations which, in our
experience, are normally applicable to the issuance and sale of common stock.
28
<PAGE>
Subject to the foregoing, and the other matters set forth herein, it is our
opinion that, as of the date hereof:
(i) The Registration Statement has been declared effective under the
1933 Act and, based solely on telephonic confirmation with the Commission, no
stop order suspending the effectiveness of the Registration Statement has been
issued under the 1933 Act and no proceedings therefor have been initiated or
threatened by the Commission.
(ii) The Registration Statement at the time it became effective and at
the date hereof, appeared on its face to comply as to form in all material
respects with the requirements for registration statements on Form S-3 under the
1933 Act and the 1933 Act Regulations; it being understood that we express no
opinion with respect to documents incorporated by reference therein (except as
set forth in paragraph (v) below), the financial statements, schedules and other
financial data included or incorporated by reference in the Registration
Statement. In passing upon the compliance as to form of the Registration
Statement, we have assumed that the statements made and incorporated by
reference therein are true, correct and complete.
(iii) The issue and sale of the Common Stock and the compliance by the
Company with the provisions of the Purchase Agreement and the consummation of
the transactions therein contemplated will not result in a breach or violation
of any material term or provision of, or constitute a default under, the
Material Agreements; nor will such action result in any material violation of
any statute, rule or regulation applicable to the Company of any court or
governmental agency or body having jurisdiction over the Company or any of its
subsidiaries or any of their properties (other than federal or state securities
law, which are specifically addressed elsewhere herein).
(iv) No approval, authorization, consent, order or decree of any Federal
or California court or governmental authority or agency is required for the
consummation by the Company of the transactions contemplated by the Purchase
Agreement or in connection with the sale of the Common Stock thereunder, except
such as may have been obtained or rendered, as the case may be, or as may be
required under the 1933 Act or the 1933 Act Regulations or state securities laws
(including real estate syndication laws).
(v) Each document filed pursuant to the 1934 Act and incorporated or
deemed to be incorporated by reference in the Prospectus (other than the
financial statements, schedules and other financial data included or
incorporated by reference therein, as to which we express no opinion), at the
time it was filed with the Commission, appeared on its face to comply as to form
in all material respects with the requirements of the 1934 Act and the 1934 Act
Regulations. In passing upon compliance as to form of such documents, we have
assumed that the statements made therein are true, correct and complete.
(vi) The Company is not an "investment company" within the meaning of
the 1940 Act.
29
<PAGE>
In addition, we have participated in conferences with officers and other
representatives of the Company, representatives of the independent public
accountants for the Company, and your representatives, at which the contents of
the Registration Statement and the Prospectus and related matters were discussed
and, although we are not passing upon, and do not assume any responsibility for,
the accuracy, completeness or fairness of the statements contained or
incorporated by reference in the Registration Statement and the Prospectus and
have not made any independent check or verification thereof, during the course
of such participation, no facts came to our attention that caused us to believe
that the Registration Statement, at the time it became effective, contained an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not misleading,
or that the Prospectus, as of its date or as of the date hereof, 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
therein, in the light of the circumstances under which they were made, not
misleading; it being understood that we express no belief with respect to the
financial statements, schedules and other financial data included or
incorporated by reference in the Registration Statement or the Prospectus.
This opinion is rendered only to you and is solely for your benefit in
connection with the transactions covered hereby. This opinion may not be relied
upon by you for any other purpose, or furnished to, quoted to or relied upon by
any other person, firm or corporation for any purpose, without our prior written
consent.
Very truly yours,
30
<PAGE>
EXHIBIT B
April 27, 1999
Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Merrill Lynch World Headquarters
North Tower
World Financial Center
New York, New York 10281-1209
Re: Proposed Public Offering by Health Care Property Investors, Inc.
Dear Sirs:
The undersigned, a stockholder and an executive officer and/or director of
Health Care Property Investors, Inc., a Maryland corporation (the "Company"),
understands that Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill
Lynch") proposes to enter into a Purchase Agreement (the "Purchase Agreement")
with the Company providing for the public offering of shares (the "Securities")
of the Company's common stock, par value $1.00 per share (the "Common Stock").
In recognition of the benefit that such an offering will confer upon the
undersigned as a stockholder and an executive officer and/or director of the
Company, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned agrees with
Merrill Lynch that, during a period of 90 days from the date of the Purchase
Agreement, the undersigned will not, without the prior written consent of
Merrill Lynch, (i) offer, pledge (other than a pledge to a lending institution
as collateral or security for a bona fide loan), sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase or otherwise dispose of or
transfer, directly or indirectly, any shares of the Company's Common Stock or
any securities convertible into or exchangeable or exercisable for Common Stock,
whether now owned or hereafter acquired by the undersigned or with respect to
which the undersigned has or hereafter acquires the power of disposition, or
file any registration statement under the Securities Act of 1933, as amended,
with respect to any of the foregoing or (ii) enter into any swap or any other
agreement or any transaction that transfers, in whole or in part, directly or
indirectly, the economic consequences of ownership of the Common Stock, whether
any such swap, agreement or other transaction described in clause (i) or (ii)
above is to be settled by delivery of Common Stock or such other securities, in
cash or otherwise.
Very truly yours,
Signature:_______________________________
Print Name:______________________________
31
<PAGE>
EXHIBIT 5.1
-----------
[Letterhead of Ballard Spahr Andrews & Ingersoll, LLP]
May 3, 1999
Health Care Property Investors, Inc.
4675 MacArthur Court
Suite 900
Newport Beach, California 92660
Re: Health Care Property Investors, Inc., a Maryland corporation (the
"Company") - Issuance and Sale of up to One Million (1,000,000) shares
(the "Shares") of the Common Stock of the Company, par value $1.00 per
share (the "Common Stock"), to be issued and sold pursuant to
Registration Statement on Form S-3, as amended (Registration No. 333-
57163), including the Prospectus dated August 27, 1998, comprising a
part thereof (the "Prospectus"), and the Prospectus Supplement, dated
-----------------
April 27, 1999 (the "Prospectus Supplement")
--------------------------------------------
Ladies and Gentlemen:
In connection with the registration of the offering and sale of the Shares
under the Securities Act of 1933, as amended (the "Act"), by the Company on Form
S-3 filed with the Securities and Exchange Commission on or about June 18, 1998
(the "Registration Statement"), you have requested our opinion with respect to
the matters set forth below.
We have acted as special Maryland corporate counsel for the Company in
connection with the matters described herein. In our capacity as special
Maryland corporate counsel to the Company, we have reviewed and are familiar
with proceedings proposed to be taken by the Company in connection with the
authorization, issuance and sale of the Shares, and for purposes of this opinion
have assumed such proceedings will be timely completed in the manner presently
proposed. In addition, we have relied upon certificates and advice from the
officers of the Company upon which we believe we are justified in relying and on
various certificates from, and documents recorded with, the State Department of
Assessments and Taxation of Maryland (the "SDAT"), including the charter of the
Company (the "Charter"), consisting of Articles of Restatement filed with the
SDAT on April 27, 1992 and Articles Supplementary filed with the SDAT on
September 25, 1997 and September 3, 1998. We have also examined the Bylaws of
the Company, as amended through the date hereof (the "Bylaws"), and resolutions
of the Board
<PAGE>
Health Care Properties Investors, Inc.
May 3, 1999
Page 2
of Directors of the Company and committees thereof adopted on or before the date
hereof and in full force and effect on the date hereof; and such laws, records,
documents, certificates, opinions and instruments as we deem necessary to render
this opinion.
We have assumed the genuineness of all signatures, the authenticity of all
documents submitted to us as originals and the conformity to the originals of
all documents submitted to us as certified, photostatic or conformed copies. In
addition, we have assumed that each person executing any instrument, document or
certificate referred to herein on behalf of any party is duly authorized to do
so. We have also assumed that none of the Shares will be issued or transferred
in violation of the restrictions on ownership and transfer of stock contained in
the Charter of the Company and described in the Prospectus under the caption
"Transfer Restrictions, Redemption and Business Combination Provisions".
Based on the foregoing, and subject to the assumptions and qualifications
set forth herein, it is our opinion that, as of the date of this letter, the
Shares have been duly authorized by all necessary corporate action on the part
of the Company, and the Shares will, upon issuance and delivery in accordance
with the terms and conditions described in the Registration Statement against
payment of the purchase price therefor as determined by the Board of Directors
of the Company or a committee thereof, be validly issued, fully paid and
nonassessable.
We consent to your filing this opinion as an exhibit to the Registration
Statement, and further consent to the filing of this opinion as an exhibit to
the applications to securities commissioners for the various states of the
United States for registration of the Shares. We also consent to the
identification of our firm as Maryland counsel to the Company in the section of
the Prospectus (which is part of the Registration Statement) entitled "Legal
Matters."
The opinions expressed herein are limited to the laws of the State of
Maryland and we express no opinion concerning any laws other than the laws of
the State of Maryland. Furthermore, the opinions presented in this letter are
limited to the matters specifically set forth herein and no other opinion shall
be inferred beyond the matters expressly stated.
Very truly yours,
/s/ Ballard Spahr Andrews & Ingersoll, LLP
<PAGE>
EXHIBIT 8.1
-----------
[Letterhead of Latham & Watkins]
May 3, 1999
Health Care Property Investors, Inc.
4675 MacArthur Court, 9th Floor
Newport Beach, California 92660
Re: Health Care Property Investors, Inc.
Common Stock Offering
---------------------
Ladies and Gentlemen:
We have acted as special counsel to Health Care Property
Investors, Inc., a Maryland corporation (the "Company"), in connection with the
registration under the Securities Act of 1933, as amended (the "1933 Act"), and
the issuance of 1,000,000 shares of the Company's common stock, par value $1.00
per share (the "Common Stock"), pursuant to (i) a registration statement on Form
S-3, No. 333-57163, filed with the Securities and Exchange Commission (the
"Commission") on June 18, 1998, as amended and supplemented as of the date
hereof (the "Registration Statement") and (ii) a Prospectus dated August 27,
1998, including the documents incorporated by reference therein (the "Base
Prospectus"), as supplemented by the Prospectus Supplement dated April 27, 1999
and filed with the Commission on April 28, 1999 pursuant to Rule 424(b) under
the 1933 Act (the "Prospectus Supplement," and together with the Base
Prospectus, the "Prospectus").
You have requested our opinion concerning the material federal
income tax consequences to the Company and the purchasers of the securities
described above in connection with the registration described above. This
opinion is based on various facts and assumptions, including the facts set forth
in the Prospectus concerning the business, properties and governing documents of
the Company and its subsidiaries. We have also been furnished
<PAGE>
Health Care Property Investors, Inc.
May 3, 1999
Page 2
with, and with your consent have relied upon, certain representations made by
the Company with respect to certain factual matters through a certificate of an
officer of the Company (the "Officer's Certificate").
In our capacity as such counsel, we have made such legal and
factual examinations and inquiries, including an examination of originals or
copies certified or otherwise identified to our satisfaction of such documents,
corporate records and other instruments, as we have deemed necessary or
appropriate for purposes of this opinion. In our examination, we have assumed
the authenticity of all documents submitted to us as originals, the genuineness
of all signatures thereon, the legal capacity of natural persons executing such
documents and the conformity to authentic original documents of all documents
submitted to us as copies.
We are opining herein as to the effect on the subject
transaction only of the federal income tax laws of the United States and we
express no opinion with respect to the applicability thereto, or the effect
thereon, of other federal laws, the laws of any state or other jurisdiction or
as to any matters of municipal law or the laws of any other local agencies with
any state.
Based upon such facts, assumptions and representations,
including the facts set forth in the Prospectus and the Officer's Certificate,
it is our opinion that:
1. The information in the Prospectus Supplement set forth
under the caption "Material Federal Income Tax Considerations to Holders of
Common Stock," to the extent that it constitutes matters of law, summaries of
legal matters, documents or proceedings, or legal conclusions, is an accurate
summary of the material federal income tax consequences of the issuance of
Common Stock; and
2. Commencing with the Company's taxable year ending
December 31, 1985, the Company has been organized and has operated in conformity
with the requirements for qualification as a "real estate investment trust"
under the Internal Revenue Code of 1986, as amended (the "Code"), and its
----
proposed method of operation, as described in the representations of the Company
referred to above, will enable the Company to continue to meet the requirements
for qualification and taxation as such a real estate investment trust.
No opinion is expressed as to any matter not discussed herein.
This opinion is rendered to you as of the date of this letter,
and we undertake no obligation to update this opinion subsequent to the date
hereof. This opinion is based on various statutory provisions, regulations
promulgated thereunder and interpretations thereof by the Internal Revenue
Service and the courts having jurisdiction over such matters, all of which are
subject to change either prospectively or retroactively. Also, any variation or
difference in the facts from those set forth in the representations described
above, including in the Prospectus or the Officer's
<PAGE>
Health Care Property Investors, Inc.
May 3, 1999
Page 3
Certificate, may affect the conclusions stated herein. Moreover, the Company's
qualification and taxation as a real estate investment trust depends upon the
Company's ability to meet (through actual annual operating results, distribution
levels and diversity of stock ownership) the various qualification tests imposed
under the Code, the results of which have not been and will not be reviewed by
Latham & Watkins. Accordingly, no assurance can be given that the actual results
of the Company's operation for any one taxable year will satisfy such
requirements.
This opinion is rendered to you and is for your benefit and the
benefit of your stockholders in connection with the filing of a Form 8-K (the
"8-K") with the Commission. This opinion may not be relied upon by you or your
stockholders for any other purpose, or furnished to, quoted to or relied upon by
any other person, firm or corporation for any purpose, without our prior written
consent. We hereby consent to the filing of this opinion as an exhibit to the 8-
K and to the use of the name of our firm under the headings "Material Federal
Income Tax Considerations to Holders of Common Stock" and "Legal Matters" in the
Prospectus Supplement. In giving this consent, we do not hereby admit that we
are within the category of persons whose consent is required under Section 7 of
the Securities Act of 1933 or the rules or regulations of the Commission
promulgated thereunder.
Very truly yours,
/s/ LATHAM & WATKINS
