<PAGE> 1
As filed with the Securities and Exchange Commission on October 15, 1997.
===============================================================================
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): OCTOBER 15, 1997
EXCEL REALTY TRUST, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MARYLAND 1-12244 33-0160389
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
16955 VIA DEL CAMPO, SUITE 100
SAN DIEGO, CALIFORNIA 92127
(Address of Principal Executive Offices) (Zip Code)
(619) 485-9400
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
===============================================================================
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This Current Report on Form 8-K is filed by Excel Realty Trust, Inc., a
Maryland corporation, in connection with the matters described herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
The exhibits listed in the following index relate to the Registration
Statement (No. 333-24615) on Form S-3, as amended, of the Registrant and is
filed herewith for incorporation by reference in such Registration Statement.
(c) Exhibits.
1.01 Underwriting Agreement dated October 9, 1997 between Excel
Realty Trust, Inc., Merrill Lynch & Co., and Merrill Lynch,
Pierce, Fenner & Smith Incorporated
1.02 Terms Agreement dated October 9, 1997 between Excel Realty
Trust, Inc., Merrill Lynch & Co., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Prudential Securities
Incorporated, Salomon Brothers Inc., Smith Barney Inc. and
UBS Securities LLC
4.01 Form of Global Note under and pursuant to that certain
Indenture, dated as of May 8, 1995, between Excel Realty
Trust, Inc. and State Street Bank and Trust Company of
California, N.A. (as successor to the First National Bank
of Boston) as amended, modified and supplemented by the
First Supplemental Indenture dated as of April 4, 1997 and
the Second Supplemental Indenture dated as of July 3, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: October 15, 1997 EXCEL REALTY TRUST, INC.
By: /s/ RICHARD B. MUIR
----------------------------
Richard B. Muir
Executive Vice President
and Secretary
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EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION PAGE
- ----------- ----------- ----
<C> <S> <C>
1.01 Underwriting Agreement dated October 9, 1997 between Excel Realty
Trust, Inc., Merrill Lynch & Co., and Merrill Lynch, Pierce,
Fenner & Smith Incorporated
1.02 Terms Agreement dated October 9, 1997 between Excel Realty Trust,
Inc. and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Prudential Securities Incorporated, Salomon
Brothers Inc., Smith Barney Inc. and UBS Securities LLC
4.01 Form of Global Note under and pursuant to that certain Indenture,
dated as of May 8, 1995, between Excel Realty Trust, Inc. and
State Street Bank and Trust Company of California, N.A. (as
successor to the First National Bank of Boston) as amended,
modified and supplemented by the First Supplemental Indenture
dated as of April 4, 1997 and the Second Supplemental Indenture
dated as of July 3, 1997
</TABLE>
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EXHIBIT 1.01
EXCEL REALTY TRUST, INC.
UNDERWRITING AGREEMENT
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TABLE OF CONTENTS
<TABLE>
<S> <C>
UNDERWRITING AGREEMENT...................................................... 1
SECTION 1. Representations and Warranties........................... 4
(a) Representations and Warranties by the Company............ 4
(1) Compliance with Registration Requirements............ 5
(2) Incorporated Documents............................... 5
(3) Independent Accountants.............................. 5
(4) Financial Statements................................. 6
(5) Pro Forma Financial Statements....................... 6
(6) No Material Adverse Change in Business............... 6
(7) Good Standing of the Company......................... 7
(8) Good Standing of Subsidiaries........................ 7
(9) Agreements........................................... 7
(10) Capitalization...................................... 8
(11) Authorization of this Underwriting Agreement
and Terms Agreement by the Company.................. 8
(12) Authorization of Underwritten Securities............ 8
(13) Authorization of Warrants........................... 9
(14) Authorization of Underlying Securities
Issuable Upon Conversion............................ 9
(15) Authorization of Warrant and Deposit Agreements..... 9
(16) Depositary Receipts................................. 9
(17) Authorization of Senior Debt Securities
and/or Subordinated Debt Securities................. 10
(18) Authorization of the Indenture...................... 10
(19) Absence of Defaults and Conflicts................... 10
(20) REIT Qualification.................................. 11
(21) Absence of Proceedings.............................. 11
(22) Accuracy of Exhibits................................ 11
(23) Absence of Further Requirements..................... 12
(24) Possession of Intellectual Property................. 12
(25) Possession of Licenses and Permits.................. 12
(26) Registration Rights Agreements...................... 12
(27) Title to Property................................... 12
(28) Internal Controls................................... 13
(29) Title Insurance..................................... 13
(30) Investment Company Act.............................. 14
(31) Environmental Laws.................................. 14
(b) Officers' Certificates................................... 14
SECTION 2. Sale and Delivery to Underwriters; Closing............... 14
(a) Underwritten Securities.................................. 14
</TABLE>
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<TABLE>
<S> <C>
(b) Option Underwritten Securities........................... 15
(c) Payment.................................................. 15
(d) Denominations; Registration.............................. 16
SECTION 3. Covenants of the Company................................. 16
SECTION 4. Payment of Expenses...................................... 19
(a) Expenses................................................. 19
(b) Termination of Agreement................................. 20
SECTION 5. Conditions of Underwriters' Obligations.................. 20
(a) Effectiveness of Registration Statement.................. 20
(b) Opinion of Counsel for the Company....................... 21
(c) Opinion of Special Maryland Counsel for the Company...... 21
(d) Opinion of General Counsel of the Company................ 21
(e) Opinion of Counsel for Underwriters...................... 21
(g) Officers' Certificate.................................... 22
(h) Accountant's Comfort Letter.............................. 22
(i) Bring-down Comfort Letter................................ 23
(j) Comfort Letter for Acquisitions.......................... 23
(k) Ratings.................................................. 23
(l) Approval of Listing...................................... 23
(m) No Objection............................................. 23
(n) Lock-up Agreements....................................... 24
(o) Over-Allotment Option.................................... 24
(p) Additional Documents..................................... 25
(q) Termination of Terms Agreement........................... 25
SECTION 6. Indemnification.......................................... 26
(a) Indemnification of Underwriters.......................... 26
(b) Indemnification of Company, Directors and Officers....... 27
(c) Actions against Parties; Notification.................... 27
(d) Settlement without Consent if Failure to Reimburse....... 28
SECTION 7. Contribution............................................. 28
SECTION 8. Representations, Warranties and Agreements to
Survive Delivery......................................... 29
SECTION 9. Termination.............................................. 30
(a) Underwriting Agreement................................... 30
(b) Terms Agreement.......................................... 30
(c) Liabilities.............................................. 30
</TABLE>
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<TABLE>
<S> <C>
SECTION 10. Default by One or More of the Underwriters.............. 30
SECTION 11. Notices................................................. 31
SECTION 12. Parties................................................. 32
SECTION 13. GOVERNING LAW AND TIME.................................. 32
SECTION 14. Effect of Headings...................................... 32
SECTION 15. Counterparts............................................ 32
</TABLE>
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EXCEL REALTY TRUST, INC.
(a Maryland corporation)
Common Stock,
Preferred Stock, Depositary Shares, Warrants
and
Debt Securities
UNDERWRITING AGREEMENT
October 9, 1997
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
North Tower
World Financial Center
New York, New York 10281-1209
Ladies and Gentlemen:
Excel Realty Trust, Inc., a Maryland corporation (the "Company")
proposes to issue and sell up to $500,000,000 aggregate initial public offering
price of its shares of common stock, par value $.01 per share (the "Common
Stock"), or warrants to purchase a number of shares of Common Stock (the "Common
Stock Warrants"), or both, or shares of preferred stock, par value $.01 per
share (the "Preferred Stock"), or warrants to purchase a number of shares of
Preferred Stock (the "Preferred Stock Warrants"), or both, or interests in
Preferred Stock in the form of depositary shares (the "Depositary Shares")
represented by depositary receipts (the "Depositary Receipts"), or warrants to
purchase a number of Depositary Shares (the "Depositary Share Warrants"), or
both, or senior or subordinated debt securities (the "Debt Securities"), or
warrants to purchase an amount of Debt Securities (the "Debt Security
Warrants"), or both, or any combination thereof, from time to time, in or
pursuant to one or more offerings on terms to be determined at the time of sale.
The Common Stock Warrants, Preferred Stock Warrants, Depositary Share
Warrants and Debt Security Warrants (collectively, the "Warrants") will be
issued pursuant to one or
<PAGE> 6
more Warrant Agreements (each a "Warrant Agreement") between the Company and a
warrant agent specified therein (the "Warrant Agent").
The Preferred Stock will be issued in one or more series and each series
of Preferred Stock may vary, as applicable, as to the title, specific number of
shares, rank, stated value, liquidation preference, dividend rate or rates (or
method of calculation), dividend payment dates, redemption provisions, sinking
fund requirements, conversion provisions (and terms of the related Underlying
Securities (as defined below)) and any other variable terms as set forth in the
applicable Articles Supplementary (each, an "Articles Supplementary") relating
to such series of Preferred Stock.
The Debt Securities will be issued in one or more series as senior
indebtedness (the "Senior Debt Securities") under an indenture, dated as of May
8, 1995, as supplemented as of April 4, 1997 and July 3, 1997 (the "Senior
Indenture"), between the Company and State Street Bank and Trust Company of
California, N.A., as trustee (the "Senior Trustee"), or as subordinated
indebtedness (the "Subordinated Debt Securities") under an indenture, dated as
of - (the "Subordinated Indenture", and collectively with the Senior Indenture,
the "Indentures", and each, an "Indenture"), between the Company and -, as
trustee (the "Subordinated Trustee", and collectively with the Senior Trustee,
the "Trustees", and each, a "Trustee"). Each series of Debt Securities may vary,
as applicable, as to title, aggregate principal amount, rank, interest rate or
formula and timing of payments thereof, stated maturity date, redemption and/or
repayment provisions, sinking fund requirements, conversion provisions (and
terms of the related Underlying Securities) and any other variable terms
established by or pursuant to the applicable Indenture.
As used herein, "Securities" shall mean the Common Stock, Common Stock
Warrants, Preferred Stock, Preferred Stock Warrants, Depositary Shares,
Depositary Share Warrants, Depositary Receipts, Senior Debt Securities,
Subordinated Debt Securities, or Debt Security Warrants, or any combination
thereof, initially issuable by the Company; "Warrant Securities" shall mean the
Common Stock, Preferred Stock, Depositary Shares or Debt Securities issuable
upon exercise of the Warrants; and "Underlying Securities" shall mean the Common
Stock, Preferred Stock, Senior Debt Securities or Subordinated Debt Securities
issuable upon conversion of the Preferred Stock, Senior Debt Securities or
Subordinated Debt Securities, as applicable.
Whenever the Company determines to make an offering of Securities
through Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated
("Merrill Lynch"), or through an underwriting syndicate managed by Merrill
Lynch, the Company will enter into an agreement (each, a "Terms Agreement")
providing for the sale of such Securities to, and the purchase and offering
thereof by, Merrill Lynch and such other underwriters, if any, selected by
Merrill Lynch (the "Underwriters", which term shall include Merrill Lynch,
whether acting as sole Underwriter or as a member of an underwriting syndicate,
as well as any Underwriter substituted pursuant to Section 10 hereof). The Terms
Agreement relating to the offering of Securities shall specify the number or
aggregate principal amount, as the
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case may be, of Securities to be initially issued (the "Initial Underwritten
Securities"), including the number of Warrants, if any, whether the Initial
Underwritten Securities shall be in the form of Depositary Shares and the
fractional amount of shares of Preferred Stock represented by each Depositary
Share, the name of each Underwriter participating in such offering (subject to
substitution as provided in Section 10 hereof) and the name of any Underwriter
other than Merrill Lynch acting as co-manager in connection with such offering,
the number or aggregate principal amount, as the case may be, of Initial
Underwritten Securities which each such Underwriter severally agrees to
purchase, whether such offering is on a fixed or variable price basis and, if on
a fixed price basis, the initial offering price, the price at which the Initial
Underwritten Securities are to be purchased by the Underwriters, the form, time,
date and place of delivery and payment of the Initial Underwritten Securities
and any other material variable terms of the Initial Underwritten Securities, as
well as the material variable terms of any related Underlying Securities. In
addition, if applicable, such Terms Agreement shall specify whether the Company
has agreed to grant to the Underwriters an option to purchase additional
Securities to cover over-allotments, if any, and the number or aggregate
principal amount, as the case may be, of Securities subject to such option (the
"Option Underwritten Securities"). As used herein, the term "Underwritten
Securities" shall include the Initial Underwritten Securities and all or any
portion of any Option Underwritten Securities. The Terms Agreement, which shall
be substantially in the form of Exhibit A hereto, may take the form of an
exchange of any standard form of written telecommunication between the Company
and Merrill Lynch, acting for itself and, if applicable, as representative of
any other Underwriters. Each offering of Underwritten Securities through Merrill
Lynch as sole Underwriter or through an underwriting syndicate managed by
Merrill Lynch will be governed by this Underwriting Agreement, as supplemented
by the applicable Terms Agreement.
The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement on Form S-3 (No. 333-24615) and amendment
no. 1 thereto for the registration of the Securities and the Underlying
Securities under the Securities Act of 1933, as amended (the "1933 Act"), and
the offering thereof from time to time in accordance with Rule 415 of the rules
and regulations of the Commission under the 1933 Act (the "1933 Act
Regulations"), and the Company has filed such amendments thereto as may be
required prior to the execution of the applicable Terms Agreement. Such
registration statement (as so amended, if applicable) has been declared
effective by the Commission and each Indenture has been duly qualified under the
Trust Indenture Act of 1939, as amended (the "1939 Act"), and the rules and
regulations of the Commission under the 1939 Act (the "1939 Act Regulations").
Such registration statement (as so amended, if applicable), including the
information, if any, deemed to be a part thereof pursuant to Rule 430A(b) of the
1933 Act Regulations (the "Rule 430A Information") or Rule 434(d) of the 1933
Act Regulations (the "Rule 434 Information"), is referred to herein as the
"Registration Statement"; and the final prospectus and the final prospectus
supplement relating to the offering of the Underwritten Securities, in the form
first furnished to the Underwriters by the Company for use in connection with
the offering of the Underwritten Securities, are collectively referred to herein
as the "Prospectus"; provided, however, that all references to
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the "Registration Statement" and the "Prospectus" shall also be deemed to
include all documents incorporated therein by reference pursuant to the
Securities Exchange Act of 1934, as amended (the "1934 Act"), prior to the
execution of the applicable Terms Agreement; provided, further, that if the
Company files a registration statement with the Commission pursuant to Rule
462(b) of the 1933 Act Regulations (the "Rule 462(b) Registration Statement"),
then, after such filing, all references to "Registration Statement" shall also
be deemed to include the Rule 462 Registration Statement; and provided, further,
that if the Company elects to rely upon Rule 434 of the 1933 Act Regulations,
then all references to "Prospectus" shall also be deemed to include the final or
preliminary prospectus and the applicable term sheet or abbreviated term sheet
(the "Term Sheet"), as the case may be, in the form first furnished to the
Underwriters by the Company in reliance upon Rule 434 of the 1933 Act
Regulations, and all references in this Underwriting Agreement to the date of
the Prospectus shall mean the date of the Term Sheet. A "preliminary prospectus"
shall be deemed to refer to any prospectus used before the registration
statement became effective and any prospectus that omitted, as applicable, the
Rule 430A Information, the Rule 434 Information or other information to be
included upon pricing in a form of prospectus filed with the Commission pursuant
to Rule 424(b) of the 1933 Act Regulations, that was used after such
effectiveness and prior to the execution and delivery of the applicable Terms
Agreement. For purposes of this Underwriting Agreement, all references to the
Registration Statement, Prospectus, Term Sheet or preliminary prospectus or to
any amendment or supplement to any of the foregoing shall be deemed to include
any copy filed with the Commission pursuant to its Electronic Data Gathering,
Analysis and Retrieval system ("EDGAR").
All references in this Underwriting Agreement to financial statements
and schedules and other information which is "contained," "included" or "stated"
(or other references of like import) in the Registration Statement, Prospectus
or preliminary prospectus shall be deemed to mean and include all such financial
statements and schedules and other information which is incorporated by
reference in the Registration Statement, Prospectus or preliminary prospectus,
as the case may be; and all references in this Underwriting Agreement to
amendments or supplements to the Registration Statement, Prospectus or
preliminary prospectus shall be deemed to mean and include the filing of any
document under the 1934 Act which is incorporated by reference in the
Registration Statement, Prospectus or preliminary prospectus, as the case may
be.
SECTION 1. Representations and Warranties.
(a) Representations and Warranties by the Company. The Company
represents and warrants to Merrill Lynch, as of the date hereof, and to each
Underwriter named in the applicable Terms Agreement, as of the date thereof, as
of the Closing Time (as defined below) and, if applicable, as of each Date of
Delivery (as defined below) (in each case, a "Representation Date"), as follows:
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(1) Compliance with Registration Requirements. The
Registration Statement and the Prospectus, at the time the Registration
Statement became effective and at each time thereafter on which the
Company filed an Annual Report on Form 10-K with the Commission,
complied, and as of each Representation Date will comply, in all
material respects with the requirements of the 1933 Act and the 1933 Act
Regulations; the Registration Statement, at the time the Registration
Statement became effective and at each time thereafter on which the
Company filed an Annual Report on From 10-K with the Commission, did
not, and at each time thereafter on which any amendment to the
Registration Statement becomes effective or the Company files an Annual
Report on Form 10-K with the Commission and as of each Representation
Date, and at the Closing Time (as defined herein), will 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; and the Prospectus, as of the date hereof, does
not, and as of each Representation Date 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
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 any Underwriter
through Merrill Lynch expressly for use in the Registration Statement or
Prospectus.
(2) Incorporated Documents. The documents incorporated or
deemed to be incorporated by reference in the Prospectus (the
"Incorporated Documents"), 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 under the 1934 Act (the "1934 Act Regulations"), and,
when read together with the other information in the Prospectus, at the
time the Registration Statement became effective and as of the
applicable Representation Date or Closing Time (as defined herein) or
during the period specified in Section 3(f) hereof, did not and will not
include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under
which they were made, not misleading.
(3) Independent Accountants. The accountants who certified
the financial statements and supporting schedules included or
incorporated by reference in the Registration Statement and the
Prospectus are independent public accountants as required by the 1933
Act and the 1933 Act Regulations and there have been no disagreements
with any accountants or "reportable events" (as defined in Item 304 of
Regulation S-K promulgated by the Commission) required to be disclosed
in the Prospectus or elsewhere pursuant to such Item 304.
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(4) Financial Statements. The historical financial
statements of the Company included or incorporated by reference in the
Registration Statement and the Prospectus present fairly the financial
position of the Company and its consolidated subsidiaries, as at the
dates indicated and the results of operations for the periods specified;
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 comply with the applicable accounting requirements of the 1933
Act (including, without limitation, Rule 3-14 of Regulation S-X
promulgated by the Commission), and all adjustments necessary for a fair
presentation of the results for such periods have been made; the
supporting schedules included or incorporated by reference in the
Registration Statement and the Prospectus present fairly the information
required to be stated therein; and the selected financial data (both
historical and pro forma) included or incorporated by reference in the
Registration Statement and the Prospectus present fairly the information
shown therein and have been compiled on a basis consistent with the
related financial statements presented therein. The historical summaries
of revenue and certain operating expenses included or incorporated by
reference in the Registration Statement and the Prospectus present
fairly the revenue and those operating expenses included in such
summaries of the properties related thereto for the periods specified in
conformity with generally accepted accounting principles.
(5) Pro Forma Financial Statements. The pro forma
consolidated financial statements included or incorporated by reference
in the Registration Statement and the Prospectus present fairly the pro
forma financial position of the Company and its consolidated
subsidiaries as of the dates indicated and the results of operations for
the periods specified; and such pro forma financial statements have been
prepared in accordance with generally accepted accounting principles
applied on a basis consistent with the audited financial statements of
the Company included or incorporated by reference in the Registration
Statement and the Prospectus, the assumptions on which such pro forma
financial statements have been prepared are reasonable and are set forth
in the notes thereto, and such pro forma financial statements have been
prepared, and the pro forma adjustments set forth therein have been
applied, in accordance with the applicable accounting requirements of
the 1933 Act and the 1933 Act Regulations (including, without
limitation, Regulation S-X promulgated by the Commission), and such pro
forma adjustments have been properly applied to the historical amounts
in the compilation of such statements.
(6) 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, (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
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course of business, which are material with respect to the Company and
its subsidiaries considered as one enterprise, and (C) except for
regular monthly or quarterly dividends on the Company's Common Stock or
dividends declared, paid or made in accordance with the terms of any
series of the Company's preferred stock, there has been no dividend or
distribution of any kind declared, paid or made by the Company on any
class of its capital stock.
(7) 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 and to enter into and perform
its obligations under this Agreement and the Terms Agreement; 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 or to
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 Articles Supplementary relating to the Preferred
Stock or Depositary Shares, if applicable, will be in full force and
effect as of each Representation Date.
(8) Good Standing of Subsidiaries. Each subsidiary (which
term, as used in this Agreement, includes corporations, limited and
general partnerships, joint ventures and other entities) of the Company
has been duly organized and is validly existing and in good standing
under the laws of the jurisdiction of its organization, has power and
authority to own, lease and operate its properties and to conduct its
business as described in the Prospectus and is duly qualified 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 or to 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; except as otherwise stated in
the Prospectus, all of the issued and outstanding capital stock of or
other ownership interests in each such subsidiary have been duly
authorized and validly issued, are fully paid and non-assessable and are
owned by the Company, directly or through subsidiaries, free and clear
of any security interest, mortgage, pledge, lien, encumbrance, claim or
equity, except for security interests granted in respect of indebtedness
of the Company or any of its subsidiaries and described in the
Prospectus.
(9) Agreements. Each of the partnership and joint venture
agreements to which the Company or any of its subsidiaries is a party,
and which relates to real property described in the Prospectus, has been
duly authorized, executed and delivered by such applicable party and
constitutes the valid agreement thereof, enforceable in accordance
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with its terms, except as limited by (a) the effect of bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to or affecting the rights or remedies of
creditors or (b) the effect of general principles of equity, whether
enforcement is considered in a proceeding in equity or at law, and the
discretion of the court before which any proceeding therefor may be
brought; and the execution, delivery and performance of any of such
agreements by the Company or its subsidiaries, as applicable, did not,
at the time of execution and delivery, and does not constitute a breach
of, or default under, the charter or by-laws (or other organizational
documents) of such party or any material contract, lease or other
instrument to which such party is a party or by which its properties may
be bound or any law, administrative regulation or administrative or
court decree.
(10) Capitalization. The authorized, issued and outstanding
capital stock of the Company is in all material respects as set forth in
the Prospectus under "Capitalization" (except for subsequent issuances,
if any, pursuant to reservations, agreements, employee benefit plans,
dividend reinvestment plans, employee and director stock option plans,
or upon the exercise of options, warrants or convertible debt securities
referred to in the Prospectus); and such shares of capital stock have
been duly authorized and validly issued and are fully paid and
non-assessable and are not subject to preemptive or other similar
rights.
(11) Authorization of this Underwriting Agreement and Terms
Agreement by the Company. The Company has full corporate, power and
authority to enter into this Agreement and the applicable Terms
Agreement, and this Agreement has been, and as of each Representation
Date, the applicable Terms Agreement, will have been, duly authorized,
executed and delivered by the Company.
(12) Authorization of Underwritten Securities. The
Underwritten Securities being sold pursuant to this Agreement and the
applicable Terms Agreement and, if applicable, the deposit of the shares
of Preferred Stock in accordance with the provisions of a Deposit
Agreement (each, a "Deposit Agreement"), among the Company, the
financial institution specified therein (the "Depositary") and the
holders of the Depositary Receipts issued thereunder, have, as of each
Representation Date, been duly authorized by the Company and such
Underwritten Securities have been duly authorized for issuance and sale
pursuant to this Agreement and such Terms Agreement and such
Underwritten Securities, when issued and delivered by the Company
pursuant to this Agreement against payment of the consideration set
forth in such Terms Agreement, will be validly issued, fully paid and
non-assessable, and the issuance of such Underwritten Securities will
not be subject to preemptive or other similar rights; the shares of
Preferred Stock, if applicable, conform to the provisions of the
Articles Supplementary; and the Underwritten Securities and each
applicable Indenture and any Underlying Securities being sold pursuant
to the applicable Terms Agreement conform in all material respects to
all statements relating thereto contained in the Prospectus.
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(13) Authorization of Warrants. If applicable, the Warrants
have been duly authorized and, when issued and delivered pursuant to
this Agreement and the applicable Terms Agreement and countersigned by
the Warrant Agent as provided in the Warrant Agreement, will have been
duly executed, countersigned, issued and delivered and will constitute
valid and legally binding obligations of the Company entitled to the
benefits provided by the Warrant Agreement under which they are to be
issued; and the issuance of the Warrant Securities upon exercise of the
Warrants will not be subject to preemptive or other similar rights; and
the Warrants conform in all material respects to all statements relating
thereto contained in the Prospectus.
(14) Authorization of Underlying Securities Issuable Upon
Conversion. If applicable, the Underlying Securities issuable upon
conversion of any of the shares of Preferred Stock or the Depositary
Shares, or the exercise of the Warrant Securities, or the conversion of
any Debt Securities, will have been duly and validly authorized and
reserved for issuance upon such conversion or exercise of the Warrants,
as the case may be, by all necessary corporate action and such
Underlying Securities, when issued upon such conversion or exercise,
will be duly authorized and validly issued and will be fully paid and
non-assessable, and the issuance of such Underlying Securities upon such
conversion or exercise will not be subject to preemptive or other
similar rights; the Underlying Securities issuable upon conversion of
any of the shares of Preferred Stock or the Depositary Shares, or the
exercise of the Warrant Securities, or the conversion of any Debt
Securities, conform in all material respects to all statements relating
thereto contained in the Prospectus.
(15) Authorization of Warrant and Deposit Agreements. The
applicable Warrant Agreement, if any, and the applicable Deposit
Agreement, if any, will have been duly authorized, executed and
delivered by the Company prior to the issuance of the related
Underwritten Securities, and each constitutes a valid and legally
binding agreement of the Company enforceable in accordance with its
terms, except as enforcement thereof may be limited by bankruptcy,
insolvency or other similar laws relating to or affecting creditors'
rights generally and by general equity principles (regardless of whether
enforcement is considered in a proceeding in equity or at law); and the
Warrant Agreement, if any, and the Deposit Agreement, if any, each
conforms in all material respects to all statements relating thereto
contained in the Prospectus.
(16) Depositary Receipts. If applicable, upon execution and
delivery of the Depositary Receipts pursuant to the terms of the Deposit
Agreement, the persons in whose names such Depositary Receipts are
registered will be entitled to the rights specified therein and in the
Deposit Agreement, except as enforcement of such rights may be limited
by bankruptcy, insolvency or other similar laws relating to or affecting
creditors' rights generally and by general equity principles (regardless
of whether enforcement is considered in a proceeding in equity or at
law).
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(17) Authorization of Senior Debt Securities and/or
Subordinated Debt Securities. If the Underwritten Securities being sold
pursuant to the applicable Terms Agreement include Senior Debt
Securities and/or Subordinated Debt Securities, such Underwritten
Securities have been, or as of the date of such Terms Agreement will
have been, duly authorized by the Company for issuance and sale pursuant
to this Underwriting Agreement and such Terms Agreement. Such
Underwritten Securities, when issued and authenticated in the manner
provided for in the applicable Indenture and delivered against payment
of the consideration therefor specified in such Terms Agreement, will
constitute valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except as the
enforcement thereof may be limited by bankruptcy, insolvency (including,
without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or other similar laws affecting the
enforcement of creditors' rights generally or by general equitable
principles (regardless of whether enforcement is considered in a
proceeding in equity or at law), and except further as enforcement
thereof may be limited by requirements that a claim with respect to any
Debt Securities payable in a foreign or composite currency (or a foreign
or composite currency judgment in respect of such claim) be converted
into U.S. dollars at a rate of exchange prevailing on a date determined
pursuant to applicable law or by governmental authority to limit, delay
or prohibit the making of payments outside the United States. Such
Underwritten Securities will be in the form contemplated by, and each
registered holder thereof is entitled to the benefits of, the applicable
Indenture.
(18) Authorization of the Indenture. If the Underwritten
Securities being sold pursuant to the applicable Terms Agreement include
Senior Debt Securities and/or Subordinated Debt Securities or if
Preferred Stock is convertible into Debt Securities, each applicable
Indenture has been, or prior to the issuance of the Debt Securities
thereunder will have been, duly authorized, executed and delivered by
the Company and, upon such authorization, execution and delivery, will
constitute a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, except as the
enforcement thereof may be limited by bankruptcy, insolvency (including,
without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or other similar laws affecting the
enforcement of creditors' rights generally or by general equitable
principles (regardless of whether enforcement is considered in a
proceeding in equity or at law).
(19) Absence of Defaults and Conflicts. Neither the Company
nor any of its subsidiaries is in violation of its charter or by-laws
(or, in the case of subsidiaries which are not corporations, other
organizational documents) or in default in the performance or observance
of any material 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 may be bound, or to which any of the
property or assets of the Company or any of its subsidiaries is subject,
except for any such violation or
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default that 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 execution, delivery and performance of this
Agreement, the applicable Terms Agreement, the applicable Warrant
Agreement, if any, or the applicable Deposit Agreement, if any, and the
consummation of the transactions contemplated herein and therein and
compliance by the Company with its obligations hereunder and thereunder
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 charter or by-laws of the Company or any applicable law,
administrative regulation or administrative or court decree.
(20) REIT Qualification. The Company has operated and intends
to continue to operate in such a manner as to qualify to be taxed as a
"real estate investment trust" under the Internal Revenue Code of 1986,
as amended (the "Code"), for the taxable year in which sales of the
Underwritten Securities are to occur.
(21) 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 Prospectus (other than as
disclosed therein), or which might result in 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, or which might materially and adversely
affect the properties or assets thereof or which might materially and
adversely affect the consummation of this Agreement, the applicable
Terms Agreement, the applicable Warrant Agreement, if any, or the
applicable Deposit Agreement, if any, or the transactions contemplated
herein or therein; all pending legal or governmental proceedings to
which the Company or any of its subsidiaries is a party or of which any
property or assets of the Company or any of its subsidiaries is subject
which are not described in the Prospectus, 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 as exhibits to
the Registration Statement by the 1933 Act or by the 1933 Act
Regulations which have not been so filed.
(22) Accuracy of Exhibits. There are no contracts or
documents which are required to be described in the Registration
Statement, the Prospectus or the
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documents incorporated by reference therein or to be filed as exhibits
thereto which have not been so described and filed as required.
(23) Absence of Further Requirements. No authorization,
approval, permit or consent of any court or governmental authority or
agency is necessary in connection with the consummation by the Company
of the transactions contemplated by this Agreement, the applicable Terms
Agreement, any Warrant Agreement or any Deposit Agreement, except such
as may be required under the 1933 Act or the 1933 Act Regulations or
state securities or real estate syndication laws.
(24) Possession of Intellectual Property. The Company and its
subsidiaries own or possess any trademarks, service marks, trade names
or copyrights required in order to conduct their respective businesses
as described in the Prospectus, other than those the failure to possess
or own 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.
(25) Possession of Licenses and Permits. The Company and its
subsidiaries possess such certificates, authorities or permits issued by
the appropriate state, federal or foreign regulatory agencies or bodies
necessary to conduct their respective businesses as described in the
Prospectus, other than those the failure to possess or own 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 neither the
Company nor any of its subsidiaries has received any notice of
proceedings relating to the revocation or modification of any such
certificate, authority or permit which, singly or in the aggregate, if
the subject of an unfavorable decision, ruling or finding, would
materially and 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.
(26) Registration Rights Agreements. There are no persons
with registration or other similar rights to have any securities
registered pursuant to the Registration Statement.
(27) Title to Property. Except as otherwise disclosed in the
Prospectus and except as 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: (a) the Company and its subsidiaries have good and
marketable title in fee simple to all real property and improvements
described in the Prospectus and, at the Closing Time, the Company and
its subsidiaries will have good and marketable title in fee simple to
all real property and improvements as described in the Prospectus; (b)
all liens, charges, encumbrances, claims or restrictions on or affecting
the real property and improvements owned by
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<PAGE> 17
the Company or any of its subsidiaries which are required to be
disclosed in the Prospectus are disclosed therein; (c) neither the
Company nor any of its subsidiaries nor, to the knowledge of the
Company, any lessee of any portion of the real property or improvements
owned by the Company or any of its subsidiaries is in default under any
of the leases pursuant to which the Company or any of its subsidiaries
leases such real property or improvements, and the Company knows of no
event which, but for the passage of time or the giving of notice, or
both, would constitute a default under any of such leases, except such
defaults that would not, individually or in the aggregate, 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; (d) no tenant under any of
the leases pursuant to which the Company or any of its subsidiaries
leases any of its real property or improvements has an option or right
of first refusal to purchase the premises demised under such lease,
except that a tenant of the Galleria in Scottsdale, Arizona holds a
right of first refusal to purchase such property; (e) all the real
property and improvements owned by the Company and its subsidiaries
comply with all applicable codes and zoning laws and regulations, except
for such failures to comply that would not, individually or in the
aggregate, 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 (f)
the Company has no knowledge of any pending or threatened condemnation,
zoning change or other proceeding or action that would in any manner
affect the size of, use of, improvements on, construction on, or access
to any of the real property or improvements owned by the Company or any
of its subsidiaries, except such proceedings or actions that would not,
individually or in the aggregate, 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.
(28) Internal Controls. The Company maintains a system of
internal accounting controls sufficient to provide reasonable assurances
that (a) transactions are executed in accordance with management's
general or specific authorizations; (b) transactions are recorded as
necessary to permit preparation of financial statements in conformity
with generally accepted accounting principles and to maintain
accountability for assets; (c) access to assets is permitted only in
accordance with management's general or specific authorization; and (d)
the recorded accountability for assets is compared with existing assets
at reasonable intervals and appropriate action is taken with respect to
any differences. Neither the Company nor any of its employees or agents
has made any payment of funds of the Company or received or retained any
funds in violation of any law, rule or regulation which payment, receipt
or retention of funds is of a character required to be disclosed in the
Prospectus.
(29) Title Insurance. The Company and its subsidiaries have
title insurance on each of their respective properties, in each case in
an amount at least equal to (a) the
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cost of acquisition of such property or (b) the cost of construction of
the improvements located on such property (measured at the time of such
construction), except, in each case, where the failure to maintain such
title insurance 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.
(30) Investment Company Act. Neither the Company nor any of
its subsidiaries is required to be registered under the Investment
Company Act of 1940, as amended (the "1940 Act").
(31) Environmental Laws. Except as otherwise disclosed in the
Prospectus, the Company has no knowledge of: (a) the unlawful presence
of any hazardous substances, hazardous materials, toxic substances or
waste materials (collectively, "Hazardous Materials") on any of the
properties owned by the Company or any of its subsidiaries, or (b) any
unlawful spills, releases, discharges or disposal of Hazardous Materials
that have occurred or are presently occurring on or from any such
properties as a result of any construction on or operation and use of
such properties, which presence or occurrence would 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 in connection with the
construction on or operation and use of the properties owned by the
Company or its subsidiaries, the Company has no knowledge of any
material failure to comply with all applicable local, state and federal
environmental laws, regulations, ordinances and administrative and
judicial orders relating to the generation, recycling, reuse, sale,
storage, handling, transport and disposal of any Hazardous Materials
that could 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.
(b) Officers' Certificates. Any certificate signed by any officer of
the Company in such capacity and delivered to any Underwriter or to counsel for
the Underwriters in connection with the offering of the Underwritten Securities
shall be deemed a representation and warranty by the Company to each Underwriter
participating in such offering as to the matters covered thereby on the date of
such certificate and, unless subsequently amended or supplemented, at each
Representation Date subsequent thereto.
SECTION 2. Sale and Delivery to Underwriters; Closing.
(a) Underwritten Securities. The several commitments of the
Underwriters to purchase the Underwritten Securities pursuant to the applicable
Terms Agreement shall be deemed to have been made on the basis of the
representations and warranties herein contained and shall be subject to the
terms and conditions herein set forth.
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(b) Option Underwritten Securities. In addition, subject to the
terms and conditions herein set forth, the Company may grant, if so provided in
the applicable Terms Agreement, an option to the Underwriters, severally and not
jointly, to purchase up to the number or aggregate principal amount, as the case
may be, of the Option Underwritten Securities set forth therein at a price per
Option Underwritten Security equal to the price per Initial Underwritten
Security, less an amount equal to any dividends or distributions declared by the
Company and paid or payable on the Initial Underwritten Securities but not
payable on the Option Underwritten Securities. Such option, if granted, will
expire 30 days or such lesser number of days as may be specified in the
applicable Terms Agreement after the Representation Date relating to the Initial
Underwritten Securities, 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 Underwritten
Securities upon notice by Merrill Lynch to the Company setting forth the number
or aggregate principal amount, as the case may be, of Option Underwritten
Securities as to which the several Underwriters are then exercising the option
and the time, date and place of payment and delivery for such Option
Underwritten Securities. Any such time and date of payment and delivery (each, a
"Date of Delivery") shall be determined by Merrill Lynch, but shall not be later
than seven full business days after the exercise of said option, nor in any
event prior to the Closing Time, unless otherwise agreed upon by Merrill Lynch
and the Company. If the option is exercised as to all or any portion of the
Option Underwritten Securities, each of the Underwriters, severally and not
jointly, will purchase that proportion of the total number or aggregate
principal amount, as the case may be, of Option Underwritten Securities then
being purchased which the number or aggregate principal amount, as the case may
be, of Initial Underwritten Securities each such Underwriter has severally
agreed to purchase as set forth in the applicable Terms Agreement bears to the
total number or aggregate principal amount, as the case may be, of Initial
Underwritten Securities (except as otherwise provided in the applicable Terms
Agreement), subject to such adjustments as Merrill Lynch in its discretion shall
make to eliminate any sales or purchases of a fractional number or aggregate
principal amount, as the case may be, of Option Underwritten Securities.
(c) Payment. Payment of the purchase price for, and delivery of, the
Initial Underwritten Securities shall be made at the offices of Brown & Wood
LLP, One World Trade Center, New York, New York 10048 or at such other place as
shall be agreed upon by Merrill Lynch and the Company, at 9:00 A.M. (Eastern
time) on the third (fourth, if the pricing occurs after 4:30 P.M. (Eastern time)
on any given day) business day after the date of the applicable Terms Agreement
(unless postponed in accordance with the provisions of Section 10 hereof), or
such other time not later than ten business days after such date as shall be
agreed upon by Merrill Lynch and the Company (such time and date of payment and
delivery being herein called "Closing Time"). In addition, in the event that the
Underwriters have exercised their option, if any, to purchase any or all of the
Option Underwritten Securities, payment of the purchase price for, and delivery
of such Option Underwritten Securities, shall be made at the above-mentioned
offices of Brown & Wood LLP or at such
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other place as shall be agreed upon by Merrill Lynch and the Company, on the
relevant Date of Delivery as specified in the notice from Merrill Lynch 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
Merrill Lynch for the respective accounts of the Underwriters of the
Underwritten Securities to be purchased by them. It is understood that each
Underwriter has authorized Merrill Lynch, for its account, to accept delivery
of, receipt for, and make payment of the purchase price for, the Underwritten
Securities which it has severally agreed to purchase. Merrill Lynch,
individually and not as representative of the Underwriters, may (but shall not
be obligated to) make payment of the purchase price for the Underwritten
Securities to be purchased by any Underwriter whose funds have not been received
by the Closing Time or the relevant Date of Delivery, as the case may be, but
such payment shall not relieve such Underwriter from its obligations hereunder.
(d) Denominations; Registration. The Underwritten Securities or
certificates for the Underwritten Securities, as applicable, shall be in such
denominations and registered in such names as Merrill Lynch may request in
writing at least one full business day prior to the Closing Time or the relevant
Date of Delivery, as the case may be. The Underwritten Securities or
certificates for the Underwritten Securities, as applicable, will be made
available for examination and packaging by Merrill Lynch in The City of New York
not later than 10:00 A.M. (Eastern time) on the business day prior to the
Closing Time or the relevant Date of Delivery, as the case may be.
SECTION 3. Covenants of the Company. The Company covenants with Merrill
Lynch and with each Underwriter participating in the offering of Underwritten
Securities, as follows:
(a) Immediately following the execution of the applicable Terms
Agreement, the Company will prepare a Prospectus Supplement setting forth the
number of Underwritten Securities covered thereby and their terms not otherwise
specified in the Prospectus pursuant to which the Underwritten Securities are
being issued, the names of the Underwriters participating in the offering and
the number of Underwritten Securities which each severally has agreed to
purchase, the names of the Underwriters acting as co-managers in connection with
the offering, the price at which the Underwritten Securities are to be purchased
by the Underwriters from the Company, the initial public offering price, if any,
the selling concession and reallowance, if any, any delayed delivery
arrangements, and such other information as Merrill Lynch and the Company deem
appropriate in connection with the offering of the Underwritten Securities; and
the Company will, by the close of business in New York on the business day
immediately succeeding the date of the applicable Terms Agreement, transmit
copies of the Prospectus Supplement to the Commission for filing pursuant to
Rule 424(b) of the 1933 Act Regulations and will furnish to the Underwriters
named therein as many copies of the Prospectus (including such Prospectus
Supplement) as Merrill Lynch shall reasonably request. If the Company elects to
rely on Rule 434 under the
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1933 Act Regulations, the Company will prepare an abbreviated term sheet that
complies with the requirements of Rule 434 under the 1933 Act Regulations and
will provide the Underwriters with copies of the form of Rule 434 Prospectus, in
such number as the Underwriters may reasonably request, and file or transmit for
filing with the Commission the form of Prospectus complying with Rule 434(c)(2)
of the 1933 Act Regulations in accordance with Rule 424(b) of the 1933 Act
Regulations by the close of business in New York on the business day immediately
succeeding the date of the applicable Terms Agreement.
(b) The Company will notify Merrill Lynch immediately, and confirm
such notice in writing, of (i) the effectiveness of any amendment to the
Registration Statement, (ii) the transmittal to the Commission for filing of any
Prospectus Supplement or other supplement or amendment to the Prospectus or any
document to be filed pursuant to the 1934 Act, (iii) the receipt of any comments
from the Commission, (iv) any request by the Commission for any amendment to the
Registration Statement or any amendment or supplement to the Prospectus or for
additional information, and (v) the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or of any order
preventing or suspending the use of any preliminary prospectus, or of the
suspension of the qualification of the Underwritten Securities for offering or
sale in any jurisdiction, or of the initiation or threatening of any proceedings
for any of such purposes. The Company will make every reasonable effort to
prevent the issuance of any such stop order and, if any stop order is issued, to
obtain the lifting thereof at the earliest possible moment.
(c) At any time when the Prospectus is required to be delivered
under the 1933 Act or the 1934 Act in connection with sales of the Underwritten
Securities, the Company will give Merrill Lynch notice of its intention to file
or prepare any amendment to the Registration Statement or any amendment or
supplement to the Prospectus, whether pursuant to the 1933 Act, 1934 Act or
otherwise, (including any revised Prospectus which the Company proposes for use
by the Underwriters in connection with an offering of Underwritten Securities
which differs from the Prospectus on file at the Commission at the time the
Registration Statement first becomes effective, 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) and will furnish Merrill Lynch with copies of any such
amendment or supplement a reasonable amount of time prior to such proposed
filing or preparation, as the case may be, and will not file or prepare any such
amendment or supplement or other documents in a form to which Merrill Lynch or
counsel for the Underwriters shall reasonably object.
(d) The Company will deliver to each Underwriter as many signed and
conformed copies of the Registration Statement as originally filed and of each
amendment thereto (including exhibits filed therewith or incorporated by
reference therein and documents incorporated or deemed to be incorporated by
reference therein) as such Underwriter reasonably requests.
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(e) The Company will furnish to each Underwriter, from time to time
during the period when the Prospectus is required to be delivered under the 1933
Act or the 1934 Act in connection with sales of the Underwritten Securities,
such number of copies of the Prospectus (as amended or supplemented) as such
Underwriter may reasonably request for the purposes contemplated by the 1933
Act, the 1933 Act Regulations, the 1934 Act or the 1934 Act Regulations.
(f) If at any time when the Prospectus is required to be delivered
under the 1933 Act or the 1934 Act in connection with sales of the Underwritten
Securities any event shall occur or condition exist as a result of which it is
necessary, in the opinion of counsel for the Underwriters or counsel for the
Company, to amend or supplement the Prospectus in order that the Prospectus will
not include an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein not misleading in the
light of the circumstances existing at the time it is delivered to a purchaser,
or if it shall be necessary, in the opinion of either such counsel, at any such
time to amend or supplement the Registration Statement or the Prospectus in
order to comply with the requirements of the 1933 Act or the 1933 Act
Regulations, then the Company will promptly prepare and file with the Commission
such amendment or supplement, whether by filing documents pursuant to the 1933
Act, the 1934 Act or otherwise, as may be necessary to correct such untrue
statement or omission or to make the Registration Statement and Prospectus
comply with such requirements, and the Company will furnish to the Underwriters
a reasonable number of copies of such amendment or supplement.
(g) The Company will endeavor, in cooperation with the Underwriters,
to qualify the Underwritten Securities for offering and sale under the
applicable securities laws and real estate syndication laws of such states and
other jurisdictions of the United States as Merrill Lynch may designate;
provided, however, that the Company shall not be obligated to qualify as a
foreign corporation in any jurisdiction where it is not so qualified. In each
jurisdiction in which the Underwritten Securities have been so qualified, the
Company will file such statements and reports as may be required by the laws of
such jurisdiction to continue such qualification in effect for so long as may be
required for the distribution of the Underwritten Securities; provided, however,
that the Company shall not be obligated to qualify as a foreign corporation in
any jurisdiction where it is not so qualified.
(h) With respect to each sale of Underwritten Securities, the
Company will make generally available to its security holders as soon as
practicable, but not later than 90 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 a twelve month period beginning not
later than the first day of the Company's fiscal quarter next following the
"effective date" (as defined in such Rule 158) of the Registration Statement.
(i) The Company will use its best efforts to meet the requirements
to qualify as a "real estate investment trust" under the Code for the taxable
year in which sales of the Underwritten Securities are to occur.
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(j) The Company will use the net proceeds received by it from the
sale of the Underwritten Securities in the manner specified in the Prospectus
under the caption "Use of Proceeds."
(k) The Company, during the period when the Prospectus is required
to be delivered under the 1933 Act or the 1934 Act in connection with sales of
the Underwritten Securities, will file all documents required to be filed with
the Commission pursuant to Section 13, 14 or 15 of the 1934 Act within the time
periods prescribed by the 1934 Act and the 1934 Act Regulations.
(l) The Company will not, during a period of 90 days from the date
of the applicable Terms Agreement, with respect to the Underwritten Securities
covered thereby, without Merrill Lynch's prior written consent, directly or
indirectly, sell, offer to sell, grant any option for the sale of, or otherwise
dispose of, any Securities of the same class or series or ranking on a parity
with such Underwritten Securities (other than the Underwritten Securities which
are to be sold pursuant to such Terms Agreement) or, if such Terms Agreement
relates to Underwritten Securities that are convertible into Common Stock, any
Common Stock or any security convertible into Common Stock (except for Common
Stock issued pursuant to reservations, agreements, employee benefit plans,
dividend reinvestment plans, employee and director stock option plans or as
partial or full payment for properties acquired or to be acquired by the
Company), except as may be otherwise provided in the applicable Terms Agreement.
(m) If the shares of Preferred Stock or Depositary Shares are
convertible into shares of Common Stock or if Warrants are issued, the Company
will reserve and keep available at all times, free of preemptive or other
similar rights, a sufficient number of shares of Common Stock or Preferred
Stock, as the case may be, for the purpose of enabling the Company to satisfy
any obligations to issue such shares upon conversion of the shares of Preferred
Stock or the Depositary Shares, as the case may be, or upon exercise of the
Warrants.
(n) If applicable, the Company will use its best efforts to list the
Initial Underwritten Securities or the Underlying Securities on the New York
Stock Exchange or such other national exchange on which the Company's Initial
Underwritten Securities are then listed.
SECTION 4. Payment of Expenses. (a) Expenses. The Company will pay all
expenses incident to the performance of its obligations under this Underwriting
Agreement or the applicable Terms Agreement, including (i) the preparation,
printing and filing of the Registration Statement (including financial
statements and exhibits) as originally filed and of each amendment thereto, (ii)
the preparation, printing and delivery to the Underwriters of this Underwriting
Agreement, any Terms Agreement, any Agreement among Underwriters, the Indentures
and such other documents as may be required in connection with the offering,
purchase, sale, issuance or delivery of the Underwritten Securities or any
related Underlying Securities, (iii) the preparation, issuance and delivery of
the Underwritten Securities and any
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related Underlying Securities, any certificates for the Underwritten Securities
or such Underlying Securities, to the Underwriters, (iv) the fees and
disbursements of the Company's counsel, accountants and other advisors or agents
(including transfer agents and registrars), as well as the fees and
disbursements of the Trustees and their respective counsel, (v) the
qualification of the Underwritten Securities, the Warrant Securities and any
related Underlying Securities under state securities laws and real estate
syndication laws in accordance with the provisions of Section 3(g) hereof,
including filing fees and the reasonable fees and disbursements of counsel for
the Underwriters in connection therewith and in connection with the preparation,
printing and delivery of the Blue Sky Survey, and any amendment thereto, (vi)
the printing and delivery to the Underwriters of copies of each preliminary
prospectus, any Term Sheet, and the Prospectus and any amendments or supplements
thereto, (vii) the printing and delivery to the Underwriters of copies of the
applicable Deposit Agreement, if any, and the applicable Warrant Agreement, if
any, (viii) the fees charged by nationally recognized statistical rating
organizations for the rating of the Underwritten Securities and any related
Underlying Securities, if applicable, (ix) the fees and expenses incurred with
respect to the listing of the Warrant Securities, the Underwritten Securities
and any related Underlying Securities, if applicable, and (x) the filing fees
incident to, and the reasonable fees and disbursements of counsel to the
Underwriters in connection with, the review, if any, by the National Association
of Securities Dealers, Inc. (the "NASD") of the terms of the sale of the
Underwritten Securities and any related Underlying Securities.
(b) Termination of Agreement. If the applicable Terms Agreement is
terminated by Merrill Lynch in accordance with the provisions of Section 5 or
Section 9(b)(i) hereof, the Company shall reimburse the Underwriters for all of
their out-of-pocket expenses, including the reasonable fees and disbursements of
counsel for the Underwriters.
SECTION 5. Conditions of Underwriters' Obligations. The obligations of
the Underwriters to purchase and pay for the Underwritten Securities pursuant to
the applicable Terms Agreement are subject to the accuracy of the
representations and warranties of the Company contained in Section 1 hereof or
in certificates of any officer of the Company delivered pursuant to the
provisions hereof, to the performance by the Company of its covenants and other
obligations hereunder, and to the following further conditions:
(a) Effectiveness of Registration Statement. The Registration
Statement, including any Rule 462(b) Registration Statement, has become
effective under the 1933 Act and no stop order suspending the effectiveness of
the Registration Statement shall have been issued under the 1933 Act and no
proceedings for that purpose shall have been instituted or be pending or
threatened by the Commission, and any request on the part of the Commission for
additional information shall have been complied with to the reasonable
satisfaction of counsel to the Underwriters. A prospectus containing information
relating to the description of the Underwritten Securities and any related
Underlying Securities, the specific method of distribution and similar matters
shall have been filed with the Commission in accordance with Rule 424(b)(1),
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(2), (3), (4) or (5), as applicable (or any required post-effective amendment
providing such information shall have been filed and declared effective in
accordance with the requirements of Rule 430A), or, if the Company has elected
to rely upon Rule 434 of the 1933 Act Regulations, a Term Sheet including the
Rule 434 Information shall have been filed with the Commission in accordance
with Rule 424(b)(7).
(b) Opinion of Counsel for the Company. At Closing Time, Merrill
Lynch shall have received the favorable opinion, dated as of Closing Time, of
Latham & Watkins, counsel for the Company, in form and substance satisfactory to
counsel for the Underwriters, together with signed or reproduced copies of such
letter for each of the other Underwriters, to the effect set forth in Exhibit B
hereto.
(c) Opinion of Special Maryland Counsel for the Company. At Closing
Time, Merrill Lynch shall have received the favorable opinion, dated as of
Closing Time, of Ballard Spahr Andrews & Ingersoll, special Maryland counsel for
the Company, in form and substance satisfactory to counsel for the Underwriters,
together with signed or reproduced copies of such letter for each of the other
Underwriters, to the effect set forth in Exhibit C hereto.
(d) Opinion of General Counsel of the Company. At Closing Time,
Merrill Lynch shall have received the favorable opinion, dated as of Closing
Time, of S. Eric Ottesen, Esq., general counsel of the Company, in form and
substance satisfactory to counsel for the Underwriters, together with signed or
reproduced copies of such letter for each of the other Underwriters, to the
effect set forth in Exhibit D hereto.
(e) Opinion of Counsel for Underwriters. The favorable opinion,
dated as of Closing Time, of Brown & Wood LLP, counsel for the Underwriters with
respect to the matters requested by the Underwriters.
(f) In giving their opinions required by subsections (b), (d) and
(e), respectively, of this Section, Latham & Watkins, S. Eric Ottesen, Esq. and
Brown & Wood LLP shall each additionally state that nothing has come to their
attention that would lead them to believe that the Registration Statement or any
amendment thereto, (except for financial statements, supporting schedules and
other financial data, as to which counsel need make no statement) at the time it
became effective (or, if an amendment to the Registration Statement or an Annual
Report on Form 10-K has been filed by the Company with the Commission,
subsequent to the effectiveness of the Registration Statement, then at the time
such amendment becomes effective or at the time of the most recent filing of
such Annual Report, as the case may be) or at the Representation Date, contained
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements
therein not misleading or that the Prospectus or any amendment or supplement
thereto, (except for financial statements, supporting schedules and other
financial data, as to which such counsel need make no statement) at the
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Representation Date 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. In giving their opinions required by
subsections (b), (c), (d) and (e), respectively, of this Section, Latham &
Watkins, Ballard Spahr Andrews & Ingersoll, S. Eric Ottesen, Esq. and Brown &
Wood LLP may rely, (1) as to all matters of fact, upon certificates and written
statements of officers and employees of and accountants for the Company, (2)
with respect to certain other matters, upon certificates of appropriate
government officials in such jurisdiction, and (3) Brown & Wood LLP may
additionally rely, as to matters involving the laws of the State of Maryland,
upon the opinion of Ballard Spahr Andrews & Ingersoll (or other counsel
reasonably satisfactory to counsel for the Underwriters) in form and substance
satisfactory to counsel for the Underwriters.
(g) Officers' Certificate. At Closing Time, there shall not have
been, since the date of the applicable Terms 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 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, from
that set forth in the Prospectus; no proceedings shall be pending or, to the
knowledge of the Company, threatened against the Company or any of its
subsidiaries before or by any Federal, state or other commission, board or
administrative agency wherein an unfavorable decision, ruling or finding would
materially and adversely affect the business, property, financial condition or
income of the Company and its subsidiaries considered as one enterprise, other
than as set forth in the Prospectus or incorporated therein by reference; and
Merrill Lynch shall have received a certificate of the President and Chief
Executive Officer and of the Chief Financial Officer of the Company in such
capacity, dated as of such Closing Time, to the effect that (i) there has been
no such material adverse change, (ii) the representations and warranties in
Section 1 are true and correct with the same force and effect as though such
Closing Time were a Representation Date, (iii) the Company has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied
at or prior to the 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 instituted, are pending or, to the best of such
officers' knowledge, are threatened by the Commission. As used in this Section
5(g), the term "Prospectus" means the Prospectus in the form first used to
confirm sales of the Underwritten Securities.
(h) Accountant's Comfort Letter. At the time of the execution of the
applicable Terms Agreement, Merrill Lynch shall have received from Coopers &
Lybrand L.L.P. a letter dated such date, in form and substance satisfactory to
Merrill Lynch, together with signed or reproduced copies of such letter for each
of the other Underwriters, containing statements and information as set forth in
Exhibit E.
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(i) Bring-down Comfort Letter. At Closing Time, Merrill Lynch shall
have received from Coopers & Lybrand L.L.P. a letter, dated as of Closing Time,
to the effect that they reaffirm the statements made in the letter furnished
pursuant to subsection (h) of this Section 5, except that the specified date
referred to shall be a date not more than three business days prior to the
Closing Time.
(j) Comfort Letter for Acquisitions. At the time of the execution of
the applicable Terms Agreement, Merrill Lynch shall have received a letter dated
such date from such independent accountants that have prepared historical
financial statements included in or incorporated by reference into the
Registration Statement and Prospectus which financial statements relate to
properties or assets acquired or to be acquired by the Company, in form and
substance reasonably satisfactory to the Underwriters, to the effect that (i)
they are independent accountants with respect to the Company and such properties
or assets within the meaning of the 1933 Act and the 1933 Act Regulations; and
(ii) it is their opinion that the historical financial statements for such
properties or assets that have been audited by them and covered by their
opinions included or incorporated by reference into the Registration Statement
and the Prospectus comply in form in all material respects with the applicable
accounting requirements of the 1933 Act and the 1933 Act Regulations.
(k) Ratings. At Closing Time and at any relevant Date of Delivery,
unless the Underwritten Securities being sold pursuant to the applicable Terms
Agreement relate solely to Common Stock, the Underwritten Securities shall have
the ratings accorded by any "nationally recognized statistical rating
organization", as defined by the Commission for purposes of Rule 436(g)(2) of
the 1933 Act Regulations, if and as specified in the applicable Terms Agreement,
and the Company shall have delivered to Merrill Lynch a letter, dated as of such
date, from each such rating organization, or other evidence reasonably
satisfactory to Merrill Lynch, confirming that the Underwritten Securities have
such ratings. Since the time of execution of such Terms Agreement, there shall
not have occurred a downgrading in, or withdrawal of, the rating assigned to the
Underwritten Securities or any of the Company's other securities by any such
rating organization, and no such rating organization shall have publicly
announced that it has under surveillance or review its rating of the
Underwritten Securities or any of the Company's other securities.
(l) Approval of Listing. At Closing Time, the Underwritten
Securities shall have been approved for listing, subject only to official notice
of issuance, if and as specified in the applicable Terms Agreement.
(m) No Objection. If the Registration Statement or an offering of
Underwritten Securities has been filed with the NASD for review, the NASD shall
not have raised any objection with respect to the fairness and reasonableness of
the underwriting terms and arrangements.
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(n) Lock-up Agreements. On the date of the applicable Terms
Agreement, Merrill Lynch shall have received, in form and substance satisfactory
to it, each lockup agreement, if any, specified in such Terms Agreement as being
required to be delivered by the persons listed therein.
(o) Over-Allotment Option. In the event that the Underwriters are
granted an over-allotment option by the Company in the applicable Terms
Agreement and the Underwriters exercise their option to purchase all or any
portion of the Option Underwritten Securities, the representations and
warranties of the Company contained herein and the statements in any
certificates furnished by the Company or any of its subsidiaries hereunder shall
be true and correct as of each Date of Delivery, and, at the relevant Date of
Delivery, Merrill Lynch shall have received:
(1) A certificate, dated such Date of Delivery, of the
President and Chief Executive Officer or a Vice President of the Company
and of the chief financial or chief accounting officer of the Company on
behalf of the Company confirming that the certificate delivered at the
Closing Time pursuant to Section 5(g) hereof remains true and correct as
of such Date of Delivery.
(2) The favorable opinion of Latham & Watkins, counsel for
the Company, in form and substance reasonably satisfactory to counsel
for the Underwriters, dated such Date of Delivery, relating to the
Option Underwritten Securities to be purchased on such Date of Delivery
and otherwise to the same effect as the opinion required by Sections
5(b) and 5(f) hereof.
(3) The favorable opinion of Ballard Spahr Andrews &
Ingersoll, special Maryland counsel for the Company, in form and
substance reasonably satisfactory to counsel for the Underwriters, dated
such Date of Delivery, relating to the Option Underwritten Securities
and otherwise to the same extent as the opinion required by Sections
5(c) and 5(f) hereof.
(4) The favorable opinion of S. Eric Ottesen, Esq., general
counsel of the Company, in form and substance reasonably satisfactory to
counsel for the Underwriters, dated such Date of Delivery, relating to
the Option Underwritten Securities and otherwise to the same extent as
the opinion required by Sections 5(d) and 5(f) hereof.
(5) The favorable opinion of Brown & Wood LLP, counsel for
the Underwriters, dated such Date of Delivery, relating to the Option
Underwritten Securities to be purchased on such Date of Delivery and
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otherwise to the same effect as the opinion required by Sections 5(e)
and 5(f) hereof.
(6) A letter from Coopers & Lybrand L.L.P., in form and
substance satisfactory to Merrill Lynch and dated such Date of Delivery,
substantially the same in scope and substance as the letter furnished to
Merrill Lynch pursuant to Section 5(h) hereof, except that the
"specified date" in the letter furnished pursuant to this Section
5(o)(6) shall be a date not more than three days prior to such Date of
Delivery.
(7) Since the time of execution of such Terms Agreement,
there shall not have occurred a downgrading in, or withdrawal of, the
rating assigned to the Underwritten Securities or any of the Company's
other securities by any such rating organization, and no such rating
organization shall have publicly announced that it has under
surveillance or review its rating of the Underwritten Securities or any
of the Company's other securities.
(p) Additional Documents. At Closing Time and at each Date of
Delivery, counsel for the Underwriters shall have been furnished with such
documents and opinions as they may require for the purpose of enabling them to
pass upon the issuance and sale of the Underwritten Securities as herein
contemplated, or in order to evidence the accuracy of any of the representations
or 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 Underwritten Securities as herein contemplated shall be satisfactory
in form and substance to Merrill Lynch and counsel for the Underwriters.
(q) Termination of Terms Agreement. If any condition specified in
this Section 5 shall not have been fulfilled when and as required to be
fulfilled, the applicable Terms Agreement (or, with respect to the Underwriters'
exercise of any applicable over-allotment option for the purchase of Option
Underwritten Securities on a Date of Delivery after the Closing Time, the
obligations of the Underwriters to purchase the Option Underwritten Securities
on such Date of Delivery) may be terminated by Merrill Lynch by notice to the
Company at any time at or prior to the Closing Time (or such Date of Delivery,
as applicable), and such termination shall be without liability of any party to
any other party except as provided in Section 4 and except that Sections 1, 6, 7
and 8 shall survive any such termination and remain in full force and effect.
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SECTION 6. Indemnification.
(a) Indemnification of Underwriters. The Company agrees to indemnify
and hold harmless each Underwriter and each person, if any, who controls any
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act as follows:
(1) 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), including the Rule
430A Information and the Rule 434 Information deemed to be a part
thereof, if applicable, or the 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 included in any
preliminary prospectus 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;
(2) 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 any
claim whatsoever based upon any such untrue statement or omission, or
any such alleged untrue statement or omission; provided that (subject to
Section 6(d) below) any such settlement is effected with the written
consent of the indemnifying party; and
(3) against any and all expense whatsoever, as incurred
(including the fees and disbursements of counsel chosen by Merrill
Lynch), 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 (1) or (2) above;
provided, however, that 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 any
Underwriter through Merrill Lynch expressly for use in the Registration
Statement (or any amendment thereto), including the Rule 430A Information and
the Rule 434 Information deemed to be a part thereof, if applicable, or any
preliminary prospectus or the Prospectus (or any amendment or supplement
thereto); provided further, that with respect to any preliminary prospectus,
such indemnity shall not inure to the benefit of any Underwriter (or the benefit
of any person controlling such
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Underwriter) if the person asserting any such losses, liabilities, claims,
damages or expense purchased the Underwritten Securities which are the subject
thereof from such Underwriter and if such person was not sent or given a copy of
the Prospectus at or prior to confirmation of the sale of such Underwritten
Securities to such person in any case where such sending or giving is required
by the 1933 Act and the untrue statement or omission of a material fact
contained in such preliminary prospectus was corrected in the Prospectus and the
Prospectus was delivered to such Underwriter a reasonable amount of time prior
to the date of delivery of such confirmation.
(b) Indemnification of Company, Directors and Officers. Each
Underwriter severally 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 or Section 20 of the 1934 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), including the Rule 430A Information and
the Rule 434 Information deemed to be a part thereof, if applicable, or any
preliminary prospectus or the Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information furnished
to the Company by such Underwriter through Merrill Lynch expressly for use in
the Registration Statement (or any amendment thereto) or such preliminary
prospectus or the Prospectus (or any amendment or supplement thereto).
(c) Actions against Parties; Notification. Each indemnified party
shall give 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 Merrill Lynch,
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
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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.
(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.
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 Underwriters, on the other hand, from the offering of the
Underwritten Securities pursuant to the applicable Terms 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 the Underwriters, 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
Underwriters, on the other hand, in connection with the offering of the
Underwritten Securities pursuant to the applicable Terms Agreement shall be
deemed to be in the same respective proportions as the total net proceeds from
the offering of such Underwritten Securities (before deducting expenses)
received by the Company and the total underwriting discount received by the
Underwriters, 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 initial public offering price of such Underwritten Securities as set
forth on such cover.
The relative fault of the Company, on the one hand, and the
Underwriters, 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 Underwriters and
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the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.
The Company and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such
purpose) 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, no Underwriter shall
be required to contribute any amount in excess of the amount by which the total
price at which the Underwritten Securities underwritten by it and distributed to
the public were offered to the public exceeds the amount of any damages which
such 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 an
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 such 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. The Underwriters'
respective obligations to contribute pursuant to this Section 7 are several in
proportion to the number or aggregate principal amount, as the case may be, of
Initial Underwritten Securities set forth opposite their respective names in the
applicable Terms Agreement, and not joint.
SECTION 8. Representations, Warranties and Agreements to Survive
Delivery. All representations, warranties and agreements contained in this
Underwriting Agreement or the applicable Terms Agreement or in certificates of
officers of the Company or any of its subsidiaries submitted pursuant hereto or
thereto shall remain operative and in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or controlling person, or
by or on behalf of the Company, and shall survive delivery of and payment for
the Underwritten Securities.
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SECTION 9. Termination.
(a) Underwriting Agreement. This Underwriting Agreement (excluding
the applicable Terms Agreement) may be terminated for any reason at any time by
the Company or by Merrill Lynch upon the giving of 30 days' prior written notice
of such termination to the other party hereto.
(b) Terms Agreement. Merrill Lynch may terminate the applicable
Terms Agreement, by notice to the Company, at any time at or prior to the
Closing Time or any relevant Date of Delivery, if (i) there has been, since the
time of execution of such Terms 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, or (ii)
there has occurred any material adverse change in the financial markets in the
United States or, if the Underwritten Securities or any related Underlying
Securities include Debt Securities denominated or payable in, or indexed to, one
or more foreign or composite currencies, in the international financial markets,
or any outbreak of hostilities or escalation thereof or other calamity or crisis
or any change or development involving a prospective change in national or
international political, financial or economic conditions, in each case the
effect of which is such as to make it, in the judgment of Merrill Lynch,
impracticable to market the Underwritten Securities or to enforce contracts for
the sale of the Underwritten Securities, or (iii) trading in any securities of
the Company has been suspended or materially limited by the Commission or the
New York Stock Exchange, or if trading generally on the New York Stock Exchange
or the American Stock Exchange or in the Nasdaq National Market has been
suspended or materially limited, or minimum or maximum prices for trading have
been fixed, or maximum ranges for prices have been required, by either of said
exchanges or by such system or by order of the Commission, the NASD or any other
governmental authority, or (iv) a banking moratorium has been declared by either
Federal or New York authorities or, if the Underwritten Securities or any
related Underlying Securities include Debt Securities denominated or payable in,
or indexed to, one or more foreign or composite currencies, by the relevant
authorities in the related foreign country or countries.
(c) Liabilities. If this Underwriting Agreement or the applicable
Terms Agreement is terminated pursuant to this Section 9, such termination shall
be without liability of any party to any other party except as provided in
Section 4 hereof, and provided further that, in the event of a termination
pursuant to Section 9(b), Sections 1, 6, 7 and 8 shall survive such termination
and remain in full force and effect.
SECTION 10. Default by One or More of the Underwriters. If one or more
of the Underwriters shall fail at the Closing Time or the relevant Date of
Delivery, as the case may be, to purchase the Underwritten Securities which it
or they are obligated to purchase under the applicable Terms Agreement (the
"Defaulted Securities"), then Merrill Lynch shall have the right, within 24
hours thereafter, to make arrangements for one or more of the
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non-defaulting Underwriters, or any other underwriters, to purchase all, but not
less than all, of the Defaulted Securities in such amounts as may be agreed upon
and upon the terms herein set forth; if, however, Merrill Lynch shall not have
completed such arrangements within such 24-hour period, then:
(a) if the number or aggregate principal amount, as the case
may be, of Defaulted Securities does not exceed 10% of the number or
aggregate principal amount, as the case may be, of Underwritten
Securities to be purchased on such date pursuant to such Terms
Agreement, the non-defaulting Underwriters shall be obligated, severally
and not jointly, to purchase the full amount thereof in the proportions
that their respective underwriting obligations under such Terms
Agreement bear to the underwriting obligations of all non-defaulting
Underwriters, or
(b) if the number or aggregate principal amount, as the case
may be, of Defaulted Securities exceeds 10% of the number or aggregate
principal amount, as the case may be, of Underwritten Securities to be
purchased on such date pursuant to such Terms Agreement, such Terms
Agreement (or, with respect to the Underwriters' exercise of any
applicable over-allotment option for the purchase of Option Underwritten
Securities on a Date of Delivery after the Closing Time, the obligations
of the Underwriters to purchase, and the Company to sell, such Option
Underwritten Securities on such Date of Delivery) shall terminate
without liability on the part of any non-defaulting Underwriter.
No action taken pursuant to this Section 10 shall relieve any defaulting
Underwriter from liability in respect of its default under this Agreement and
the applicable Terms Agreement.
In the event of any such default which does not result in (i) a
termination of the applicable Terms Agreement or (ii) in the case of a Date of
Delivery after the Closing Time, a termination of the obligations of the
Underwriters and the Company with respect to the related Option Underwritten
Securities, as the case may be, either Merrill Lynch or the Company shall have
the right to postpone the Closing Time or the relevant Date of Delivery, as the
case may be, for a period not exceeding seven days in order to effect any
required changes in the Registration Statement or the Prospectus or in any other
documents or arrangements.
SECTION 11. 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 telecommunication. Notices to the
Underwriters shall be directed to Merrill Lynch at World Financial Center, North
Tower, New York, New York 10281-1201, attention of John C. Brady, Director; and
notices to the Company shall be directed to it at 16955 Via Del Campo, Suite
100, San Diego, California 92127, attention of Richard B. Muir, Executive Vice
President and Secretary.
31
<PAGE> 36
SECTION 12. Parties. This Underwriting Agreement and the applicable
Terms Agreement shall each inure to the benefit of and be binding upon the
Company, Merrill Lynch and, upon execution of such Terms Agreement, any other
Underwriters and their respective successors. Nothing expressed or mentioned in
this Underwriting Agreement or such Terms Agreement is intended or shall be
construed to give any person, firm or corporation, other than the Underwriters
and the Company and their respective successors and the controlling persons and
officers and directors referred to in Sections 6 and 7 and their heirs and legal
representatives, any legal or equitable right, remedy or claim under or in
respect of this Underwriting Agreement or such Terms Agreement or any provision
herein or therein contained. This Underwriting Agreement and such Terms
Agreement and all conditions and provisions hereof and thereof are intended to
be for the sole and exclusive benefit of the parties hereto and thereto and
their respective successors, and said controlling persons and officers and
directors and their heirs and legal representatives, and for the benefit of no
other person, firm or corporation. No purchaser of Underwritten Securities from
any Underwriter shall be deemed to be a successor by reason merely of such
purchase.
SECTION 13. GOVERNING LAW AND TIME. THIS UNDERWRITING AGREEMENT AND ANY
APPLICABLE TERMS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY
TIME.
SECTION 14. Effect of Headings. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.
SECTION 15. Counterparts. This Agreement and the applicable Terms
Agreement may be executed in one or more counterparts, and if executed in more
than one counterpart, the executed counterparts shall constitute a single
instrument.
32
<PAGE> 37
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof, whereupon
this Underwriting Agreement, along with all counterparts, will become a binding
agreement between Merrill Lynch and the Company in accordance with its terms.
Very truly yours,
EXCEL REALTY TRUST, INC.
By: /s/ Graham R. Bullick
-------------------------------------
Name: Graham R. Bullick
Title: Senior Vice President
CONFIRMED AND ACCEPTED,
as of the date first above written:
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By: /s/ Daniel J. Campbell
--------------------------------------
Name: Daniel J. Campbell
Title: Authorized Signatory
33
<PAGE> 38
Exhibit A
EXCEL REALTY TRUST, INC.
(a Maryland Corporation)
TERMS AGREEMENT
To: Excel Realty Trust, Inc.
16955 Via Del Campo, Suite 100
San Diego, California 92127
Ladies and Gentlemen:
We understand that Excel Realty Trust, Inc., a Maryland corporation (the
"Company"), proposes to issue and sell [ shares of its common stock, par
value $.01 per share (the "Common Stock")] [ shares of its preferred
stock, par value $.01 per share (the "Preferred Stock")] [in the form of
depositary shares (the "Depositary Shares") each representing of a share
of Preferred Stock] [$ aggregate principal amount of its [senior] [subordinated]
debt securities (the "Debt Securities")] [ warrants (the "Common Stock
Warrants") to purchase common stock, par value $.1 per share] [ warrants (the
"Preferred Stock Warrants") to purchase preferred stock, par value $.01 per
share] [ warrants (the "Debt Security Warrants") to purchase $ aggregate
principal amount of [senior] [subordinated] debt securities] ([such securities
also being hereinafter referred to as] the "[Initial] Underwritten Securities").
Subject to the terms and conditions set forth or incorporated by reference
herein, we [the underwriters named below (the "Underwriters")] offer to purchase
[, severally and not jointly,] the [[number] [principal] [amount] of]
Underwritten Securities [opposite their names set forth below] at the purchase
price set forth below [, and a proportionate share of Option Underwritten
Securities set forth below, to the extent any are purchased].
A-1
<PAGE> 39
[Number]
[Principal Amount]
Underwriter of [Initial] Underwritten Securities
- ----------- ------------------------------------
----------------
Total [$]
================
The Underwritten Securities shall have the following terms:
[Common Stock]
--------------
Title:
Number of shares:
Number of Option Underwritten Securities:
Initial public offering price per share: $
Purchase price per share: $
Listing requirements:
Black-out provisions:
Lock-up provisions:
Other terms and conditions:
Closing date and location:
[Preferred Stock]
-----------------
Title:
Rank:
Ratings:
Number of shares:
Number of Option Underwritten Securities:
Dividend rate (or formula) per share: $
Dividend payment dates:
Stated value: $
Liquidation preference per share: $
Redemption provisions:
Sinking fund requirements:
Conversion provisions:
Listing requirements:
Black-out provisions:
Lock-up provisions:
Initial public offering price per share: $___ plus accumulated dividends, if
any, from _____
A-2
<PAGE> 40
Purchase price per share: $___ plus accumulated dividends, if any, from _____
Other terms and conditions:
Closing date and location:
[Depositary Shares]
-------------------
Title:
Fractional amount of Preferred Stock represented by each Depositary Share:
Ratings:
Rank:
Number of shares:
Number of Option Underwritten Securities:
Dividend rate (or formula) per share: $
Dividend payment dates:
Liquidation preference per share: $
Redemption provisions:
Sinking fund requirements:
Conversion provisions:
Listing requirements:
Black-out provisions:
Lock-up provisions:
Initial public offering price per share: $___ plus accumulated dividends, if
any, from _____
Purchase price per share: $___ plus accumulated dividends, if any, from _____
Other terms and conditions:
Closing date and location:
[Debt Securities]
-----------------
Title:
Rank:
Ratings:
Aggregate principal amount:
Denominations:
Currency of payment:
Interest rate or formula:
Interest payment dates:
Regular record dates:
Stated maturity date:
Redemption provisions:
Sinking fund requirements:
Conversion provisions:
Listing requirements:
A-3
<PAGE> 41
Black-out provisions:
Fixed or Variable Price Offering: [Fixed] [Variable] Price Offering
If Fixed Price Offering, initial public offering price per share:
% of the principal amount, plus accrued interest [amortized
original issue discount], if any, from________________.
Purchase price per share: ___% of principal amount, plus accrued interest
[amortized original issue discount], if any, from _________________.
Form:
Other terms and conditions:
Closing date and location:
[Common Stock] [Preferred Stock] [Debt Security] Warrants
---------------------------------------------------------
Title:
Type:
Number:
Warrant Agent:
Issuablejointly with [Common Stock] [Preferred Stock] [Debt Securities]: [Yes]
[No] Number of [Common Stock] [Preferred Stock] [Debt Security] Warrants
issued with each [share of Common Stock] [share of Preferred Stock]
[$ principal amount of Debt Securities]:
Date(s from which or period(s) during which [Common Stock] [Preferred Stock]
[Debt Security] Warrants are exercisable:
Date(s) on which [Common Stock] [Preferred Stock] [Debt Security] Warrants
expire:
Exercise price(s):
Initial public offering price:
Purchase price:
Title of Underlying Securities:
[Number of shares] [Principal amount] purchasable upon exercise of one [Common
Stock] [Preferred Stock] [Debt Security] Warrant:
Terms of Underlying Securities:
Other terms and conditions:
Closing date and location:
All of the provisions contained in the document attached as Annex I
hereto entitled "EXCEL REALTY TRUST, INC.-- Common Stock, Preferred Stock,
Depositary Shares, Warrants and Debt Securities--Underwriting Agreement" are
hereby incorporated by reference in their entirety herein and shall be deemed to
be a part of this Terms Agreement to the same extent as if such provisions had
been set forth in full herein. Terms defined in such document are used herein as
therein defined.
A-4
<PAGE> 42
Please accept this offer no later than ____ o'clock P.M. (New York City
time) on ______________ by signing a copy of this Terms Agreement in the space
set forth below and returning the signed copy to us.
Very truly yours,
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By:___________________________
Name:
Title: Authorized Signatory
[Acting on behalf of itself and the
other named Underwriters.]
Accepted:
EXCEL REALTY TRUST, INC.
By:_________________________
Name:
Title:
A-5
<PAGE> 43
EXHIBIT B
FORM OF OPINION OF COMPANY'S
COUNSEL TO BE DELIVERED
PURSUANT TO SECTION 5(b)
(i) The applicable Warrant Agreement, if any, and the
applicable Deposit Agreement, if any, have been duly executed and
delivered by the Company, and (assuming due authorization, execution and
delivery by the Warrant Agent in the case of the Warrant Agreement, and
the Depositary, in the case of the Deposit Agreement) each constitutes a
valid and legally binding agreement of the Company enforceable in
accordance with its terms; and the Warrant Agreement, if any, and the
Deposit Agreement, if any, each conforms in all material respects to all
statements relating thereto contained in the Prospectus.
(ii) If applicable, upon execution and delivery of the
Depositary Receipts pursuant to the terms of the Deposit Agreement, the
persons in whose names such Depositary Receipts are registered will be
entitled to the rights specified therein and in the Deposit Agreement,
to the extent such rights are governed by the laws of the State of New
York.
(iii) Each of this Agreement and the applicable Terms
Agreement has been duly executed and delivered by the Company.
(iv) The Registration Statement is effective under the 1933
Act and, to the best of their knowledge and information, no stop order
suspending the effectiveness of the Registration Statement has been
issued under the 1933 Act or proceedings therefor initiated or
threatened by the Commission.
(v) The Registration Statement and the Prospectus, excluding
the documents incorporated by reference therein, as of their respective
effective or issue dates, 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; if applicable, the Rule 434
Prospectus conforms to the requirements of Rule 434 under the 1933 Act
Regulations; it being understood, however, that no opinion need be
rendered with respect to the financial statements and notes thereto,
schedules and other financial and related statistical data included or
incorporated by reference in the Registration Statement or the
Prospectus; and it being understood, further, that in passing upon the
compliance as to form of the Registration Statement, the Prospectus and
the Rule 434 Prospectus, if applicable, such counsel may assume that the
statements made therein are correct and complete.
B-1
<PAGE> 44
(vi) Each document filed pursuant to the 1934 Act (other than
the financial statements and notes thereto, schedules and other
financial and related statistical data included therein, as to which no
opinion need be rendered) and incorporated or deemed to be incorporated
by reference in the Prospectus complied when so filed as to form in all
material respects with the 1934 Act and the 1934 Act Regulations. In
passing upon compliance as to form of such documents, such counsel may
assume that the statements made therein are correct and complete.
(vii) No authorization, approval, permit or consent of any
court or governmental authority or agency is required that has not been
obtained in connection with the consummation by the Company of the
transactions contemplated by this Agreement, the applicable Terms
Agreement, the applicable Deposit Agreement, if any, or the applicable
Warrant Agreement, if any, except such as may be required under the 1933
Act and state securities laws or real estate syndication laws.
(viii) Neither the Company nor any of its subsidiaries is
required to be registered under the 1940 Act.
(ix) Each of the partnership agreements to which the Company
or any of its subsidiaries is a party, and which relates to real
property described in the Prospectus, has been duly executed and
delivered by such applicable party and constitutes the valid agreement
thereof, enforceable against such party in accordance with its terms.
(x) Each subsidiary (which term, as used in such opinion,
shall be defined to include corporations, material limited and general
partnerships relating to real property described in the Prospectus and
other entities) of the Company has been duly organized and is validly
existing and in good standing under the laws of the jurisdiction of its
organization, has power and authority to own, lease and operate its
properties and to conduct its business substantially as described in the
Prospectus; except as otherwise stated in the Prospectus, all of the
issued and outstanding capital stock of or limited partnership interests
in each such subsidiary which is a corporation or a limited partnership
have been duly authorized and validly issued and are fully paid and
non-assessable.
(xi) Commencing not later than January 1, 1993, the Company
has been organized 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 method of operation will enable
it to meet the requirements for qualification and taxation as a "real
estate investment trust" under the Code, provided that such counsel's
opinion as to this matter may be conditioned upon certain
representations as to factual matters made by the Company to such
counsel as described therein.
B-2
<PAGE> 45
(xii) The statements set forth (a) in the Prospectus under the
caption "Certain Federal Income Tax Considerations to the Company of its
REIT Election" and "Description of Debt Securities" and (b) if
applicable, in the Prospectus Supplement under the caption "Certain
Federal Income Tax Considerations to Holders of Common Stock" and
"Description of Notes", to the extent such statements constitute matters
of law, summaries of legal matters, or legal conclusions, have been
reviewed by them and are accurate in all material respects.
(xiii) The Indenture has been duly authorized, executed and
delivered by the Company and (assuming due authorization, execution and
delivery thereof by the applicable Trustee) constitutes a valid and
legally binding agreement of the Company, enforceable against the
Company in accordance with its terms, except as the enforcement thereof
may be limited by (A) bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws affecting the enforcement
of creditors' rights generally, (B) general equitable principles
(regardless of whether enforcement is considered in a proceeding in
equity or at law), (C) requirements that a claim with respect to any
debt securities issued under the Indenture that are payable in a foreign
or composite currency (or a foreign or composite currency judgment in
respect of such claim) be converted into U.S. dollars at a rate of
exchange prevailing on a date determined pursuant to applicable law or
(D) governmental authority to limit, delay or prohibit the making of
payments outside the United States.
(xiv) The Notes are in the form contemplated by the Indenture,
have been duly authorized by the Company for offer, sale, issuance and
delivery pursuant to this Agreement and, when executed by the Company
and authenticated by the Trustee in the manner provided for in the
Indenture (assuming the due authorization, execution and delivery of the
Indenture by the Trustee) and delivered against payment of the
consideration therefor as specified in the applicable Terms Agreement,
will constitute valid and legally binding obligations of the Company,
entitling the holders thereof to the benefits provided by the Indenture,
enforceable against the Company, in accordance with their terms, except
as the enforcement thereof may be limited by (A) bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws
affecting the enforcement of creditors' rights generally, (B) general
equitable principles (regardless of whether enforcement is considered in
a proceeding in equity or at law), (C) requirements that a claim with
respect to any Notes payable in a foreign or composite currency (or a
foreign or composite currency judgment in respect of such claim) be
converted into U.S. dollars at a rate of exchange prevailing on a date
determined pursuant to applicable law or (D) governmental authority to
limit, delay or prohibit the making of payments outside the United
States.
(xv) The Indenture and the Notes, in the forms certified on
the date hereof, conform in all material respects to the statements
relating thereto contained in the Prospectus and are in substantially
the form filed or incorporated by reference, as the case may be, as an
exhibit to the Registration Statement.
B-3
<PAGE> 46
1 EXHIBIT C
FORM OF OPINION OF SPECIAL MARYLAND COUNSEL
FOR THE COMPANY PURSUANT TO SECTION 5(c)
(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 corporate power to own, lease and operate its
current properties, to conduct its current business substantially as described
in the Prospectus and to enter into and perform its obligations under this
Agreement and the applicable Terms Agreement.
(iii) The authorized, issued and outstanding capital stock of the
Company is in all material respects as set forth in the Prospectus (as of the
date set forth therein) under "Capitalization" (except for subsequent issuances,
if any, pursuant to reservations, agreements, employee benefit plans, dividend
reinvestment plans, employee and director stock option plans, or upon the
exercise of options, warrants or convertible debt securities referred to in the
Prospectus) and such shares of stock have been duly authorized and validly
issued and are fully paid and non-assessable.
(iv) The Underwritten Securities being sold pursuant to this
Agreement and the applicable Terms Agreement and, if applicable, the deposit of
the shares of Preferred Stock in accordance with the provisions of a Deposit
Agreement, have been duly and validly authorized by all necessary corporate
action on the part of the Company and such Underwritten Securities have been
duly authorized for issuance and sale pursuant to this Agreement and such Terms
Agreement; and such Underwritten Securities, when issued and delivered by the
Company pursuant to this Agreement against payment of the consideration set
forth in such Terms Agreement, will be validly issued, fully paid and
non-assessable, and the issuance of such Underwritten Securities will not be
subject to preemptive or other similar rights arising under the Charter or
Bylaws of the Company, or under the Maryland General Corporation Law ("MGCL");
and the shares of Preferred Stock, if applicable, conform to the provisions of
the Articles Supplementary.
(v) If applicable, the Warrants have been duly authorized and, when
issued and delivered pursuant to this Agreement and the applicable Terms
Agreement and countersigned by the Warrant Agent as provided in the Warrant
Agreement, will have been duly executed, issued and delivered and will
constitute valid and legally binding obligations of the Company entitled to the
benefits provided by the Warrant Agreement under which they are to be issued,
insofar as the Warrants are governed by the MGCL and assuming the validity and
enforceability of such Warrant Agreement.
(vi) If applicable, the shares of Common Stock issuable upon
conversion of any of the shares of Preferred Stock or Depositary Shares, or the
exercise of Warrant Securities, have been duly and validly authorized and
reserved for issuance upon such conversion or exercise by all
C-1
<PAGE> 47
necessary corporate action on the part of the Company and such shares, when
issued upon such conversion or exercise in accordance with the charter of the
Company, the Deposit Agreement, the Terms Agreement, or the Warrant Agreement,
as the case may be, will be duly authorized and validly issued and will be fully
paid and non-assessable, and the issuance of such shares upon such conversion or
exercise will not be subject to preemptive or other similar rights arising under
the Charter or Bylaws of the Company, or under the MGCL;
(vii) The applicable Warrant Agreement, if any, and the applicable
Deposit Agreement, if any, have been duly authorized by the Company, and the
person(s) executing such agreements on behalf of the Company have been duly
authorized to do so.
(viii) If applicable, upon execution and delivery of the Depositary
Receipts pursuant to the terms of the Deposit Agreement, the persons in whose
names such Depositary Receipts are registered will be entitled to the rights
specified therein and in the Deposit Agreement, to the extent such rights are
governed by the laws of the State of Maryland and assuming the validity and
enforceability of the Deposit Agreement.
(ix) The execution and delivery on behalf of the Company of each of
this Agreement, the applicable Terms Agreement has been duly authorized by the
Company, and the person(s) executing each such agreement on behalf of the
Company have been duly authorized to do so.
(x) If applicable, the relative rights, preferences, interests and
powers of the Preferred Shares or Depositary Shares, as the case may be, are as
set forth in the Articles Supplementary relating thereto, and all such
provisions are valid under the MGCL; and, as applicable, the form of certificate
used to evidence the Preferred Shares being represented by the Depositary Shares
and the form of certificate used to evidence the related Depositary Receipts are
in due and proper form under the MGCL and comply with all applicable statutory
requirements under the MGCL.
(xi) The Underwritten Securities, the Warrant Securities, and the
shares of Common Stock issuable upon conversion of the Preferred Shares or
Depositary Shares, as applicable, conform in all material respects to the
descriptions thereof contained in the Prospectus, insofar as such descriptions
relate to the Charter or Bylaws of the Company or issues arising under the MGCL,
and the form of certificate used to evidence the Underwritten Securities, if
applicable, is in due and proper form and complies in all material respects with
all applicable statutory requirements under the MGCL.
(xii) The execution and delivery by the Company of each of the
partnership agreements entered into by the Maryland corporation subsequent to
the organization of the Company in the State of Maryland in May 1993 to which
the Company or any of its subsidiaries organized under the laws of the State of
Maryland is a party, and which relates to real property described in the
Prospectus, has been duly authorized by such applicable party, and the person(s)
executing each such agreement on behalf of such applicable party have been
authorized to do so.
C-2
<PAGE> 48
Exhibit D
FORM OF OPINION OF THE COMPANY'S
GENERAL COUNSEL TO BE DELIVERED PURSUANT
TO SECTION 5(d)
(i) To the best of his 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 the Company owns or leases real property,
except where the failure to so qualify or to 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.
(ii) To the best of his knowledge and information, there are no legal
or governmental proceedings pending or threatened against the Company or any of
its subsidiaries which are required to be disclosed in the Prospectus, other
than those disclosed therein, and all pending legal or governmental proceedings
to which the Company or any of its subsidiaries is a party or of which any of
the property or assets of the Company or its subsidiaries is the subject which
are not described in the Prospectus, including ordinary routine litigation
incidental to the business, are, considered in the aggregate, not material.
(iii) To the best of his knowledge and information, there are no
contracts, indentures, mortgages, loan agreements, notes, leases or other
instruments required to be described or referred to in the Registration
Statement or the Prospectus or to be filed as exhibits thereto other than those
described or referred to therein or filed as exhibits thereto, the descriptions
thereof or references thereto are correct in all material respects, and, to the
best of his knowledge and information, no default exists in the due performance
or observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, loan agreement, note, lease or
other instrument so described, referred to or filed which would 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.
(iv) To the best of his knowledge and information, there are no
persons with registration or other similar rights to have any securities
registered pursuant to the Registration Statement.
(v) To the best of his knowledge and information, the execution and
delivery of this Agreement, the applicable Terms Agreement, the applicable
Deposit Agreement, if any, or the applicable Warrant Agreement, if any, and the
consummation of the transactions contemplated herein and therein and compliance
by the Company with its obligations hereunder and thereunder 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
D-1
<PAGE> 49
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 violation of the provisions of the
charter or by-laws of the Company or any applicable law, administrative
regulation or administrative or court order or decree.
(vi) To the best of his knowledge and information, except as
otherwise stated in the Prospectus and except as 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: (a) all of the issued and outstanding capital
stock of each corporate subsidiary of the Company are owned by the Company,
directly or through subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance, claim or equity and (b) all of the
Company's ownership interests in each partnership subsidiary of the Company are
owned by the Company, directly or through subsidiaries, free and clear of any
security interest, mortgage, pledge, lien, encumbrance, claim or equity.
(vii) The execution, delivery and performance of any of the
partnership agreements to which the Company or any of its subsidiaries is a
party, and which relates to real property described in the Prospectus, did not,
at the time of execution and delivery, and does not constitute a breach of, or
default under, the charter or by-laws of the Company or any of its subsidiaries,
as applicable, or any material contract, lease or other instrument to which such
party is a party or by which its properties may be bound or any law,
administrative regulation or administrative or court decree.
(viii) The Company and/or its respective subsidiaries hold title to the
properties and assets described in the Prospectus, subject only to the liens and
encumbrances securing indebtedness reflected in the Prospectus and such other
liens, encumbrances and matters of record which do not materially and adversely
affect the value of such properties and assets considered in the aggregate.
(ix) To the best of his knowledge and information, each subsidiary
(which term, as used in such opinion, shall be defined to include corporations,
material limited and general partnerships and other entities) is duly qualified
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.
D-2
<PAGE> 50
Exhibit E
FORM OF ACCOUNTANTS' COMFORT LETTER PURSUANT TO SECTION 5(h)
We are independent public accountants with respect to the Company and the
Predecessor within the meaning of the 1933 Act and the 1933 Act Regulations and:
(i) in our opinion, the audited consolidated financial
statements and the related financial statement schedules included or
incorporated by reference in the Registration Statement and the
Prospectus comply as to form in all material respects with the
applicable accounting requirements of the 1933 Act and the 1933 Act
Regulations;
(ii) on the basis of procedures (but not an examination in
accordance with generally accepted auditing standards) consisting of a
reading of the unaudited interim consolidated financial statements of
the Company for the [three- month periods ended _________, 19__ and
_________, 19__, the three- and six-month periods ended _________, 19__
and _________, 19__ and the three- and nine-month periods ended
_________, 19__ and _________, 19__, included or incorporated by
reference in the Registration Statement and the Prospectus
(collectively, the "10-Q Financials")] [, a reading of the unaudited
interim consolidated financial statements of the Company for the
_____-month periods ended _________, 19___ and _________, 19___,
included or incorporated by reference in the Registration Statement and
the Prospectus (the "_____- month financials")] [, a reading of the
latest available unaudited interim consolidated financial statements of
the Company], a reading of the minutes of all meetings of the
stockholders and directors of the Company and its subsidiaries and
committees thereof since [day after end of last audited period],
inquiries of certain officials of the Company and its subsidiaries
responsible for financial and accounting matters, a review of interim
financial information in accordance with standards established by the
American Institute of Certified Public Accountants in Statement on
Auditing Standards No. 71, Interim Financial Information ("SAS 71"),
with respect to the [description of relevant periods] and such other
inquiries and procedures as may be specified in such letter, nothing
came to our attention that caused us to believe that:
(A) the 10-Q Financials included or incorporated by
reference in the Registration Statement and the Prospectus do
not comply as to form in all material respects with the
applicable accounting requirements of the 1934 Act and the 1934
Act Regulations applicable to unaudited financial statements
included in Form 10-Q or any material modifications should be
made to the 10-Q Financials included or incorporated by
reference in the Registration Statement and the Prospectus for
them to be in conformity with generally accepted accounting
principles;
E-1
<PAGE> 51
[(B) the _____-month financials included or
incorporated by reference in the Registration Statement and the
Prospectus do not comply as to form in all material respects
with the applicable accounting requirements of the 1933 Act and
the 1933 Act Regulations applicable to unaudited interim
financial statements included in registration statements or any
material modifications should be made to the _____-month
financials included in the Registration Statement and the
Prospectus for them to be in conformity with generally accepted
accounting principles;]
(C) at [_________, 19___ and at] a specified date
not more than three days prior to the date of the applicable
Terms Agreement, there was any change in the capital stock of
the Company and its subsidiaries, any decrease in the net assets
of the Company and its subsidiaries or any increase in the debt
of the Company and its subsidiaries, in each case as compared
with amounts shown in the most recent consolidated balance sheet
included or incorporated by reference in the Registration
Statement and the Prospectus, except in each case for any
changes, decreases or increases that the Registration Statement
and the Prospectus disclose have occurred or may occur; or
(D) for the period from [_________, 19__ to
_________, 19__ and for the period from] _________, 19__ to a
specified date not more than three days prior to the date of the
applicable Terms Agreement, there was any decrease in
consolidated revenue, operating income, funds from operation or
net income or net income per share of the Company, in each case
as compared with the comparable period in the preceding year,
except in each case for any decreases that the Registration
Statement and the Prospectus discloses have occurred or may
occur;
[(iii) based upon the procedures set forth in clause (ii) above
and a reading of the Selected Financial Information included or
incorporated by reference in the Registration Statement and the
Prospectus [and a reading of the financial statements from which such
data were derived], nothing came to our attention that caused us to
believe that the Selected Financial Information included or incorporated
by reference in the Registration Statement and the Prospectus do not
comply as to form in all material respects with the disclosure
requirements of Item 301 of Regulation S-K of the 1933 Act [, that the
amounts included in the Selected Financial Information are not in
agreement with the corresponding amounts in the audited consolidated
financial statements for the respective periods or that the financial
statements not included or incorporated by reference in the Registration
Statement and the Prospectus from which certain of such data were
derived are not in conformity with generally accepted accounting
principles;]
E-2
<PAGE> 52
(iv) we have compared the information included or
incorporated by reference in the Registration Statement and the
Prospectus under selected captions with the disclosure requirements of
Regulation S-K of the 1933 Act and on the basis of limited procedures
specified herein, nothing came to our attention that caused us to
believe that such information does not comply as to form in all material
respects with the disclosure requirements of Items 302, 402 and 503(d),
respectively, of Regulation S-K;
[(v) based upon the procedures set forth in clause (ii)
above, a reading of the latest available unaudited financial statements
of the Company that have not been included or incorporated by reference
in the Registration Statement and the Prospectus and a review of such
financial statements in accordance with SAS 71, nothing came to our
attention that caused us to believe that the unaudited amounts for
________ for the [most recent period] do not agree with the amounts set
forth in the unaudited consolidated financial statements for those
periods or that such unaudited amounts were not determined on a basis
substantially consistent with that of the corresponding amounts in the
audited consolidated financial statements;]
[(vi) we are unable to and do not express any opinion on the
[Pro Forma Combined Balance Sheet and Statement of Operations]
(collectively, the "Pro Forma Statements") included or incorporated by
reference in the Registration Statement and the Prospectus or on the pro
forma adjustments applied to the historical amounts included in the Pro
Forma Statements; however, for purposes of this letter we have:
(A) read the Pro Forma Statements;
(B) performed [an audit] [a review in accordance
with SAS 71] of the financial statements to which the pro forma
adjustments were applied;
(C) made inquiries of certain officials of the
Company who have responsibility for financial and accounting
matters about the basis for their determination of the pro forma
adjustments and whether the Pro Forma Statements comply as to
form in all material respects with the applicable accounting
requirements of Rule 11-02 of Regulation S-X; and
(D) proved the arithmetic accuracy of the
application of the pro forma adjustments to the historical
amounts in the Pro Forma Statements; and
on the basis of such procedures and such other inquiries and procedures
as specified herein, nothing came to our attention that caused us to
believe that the Pro Forma Statements included or incorporated by
reference in the Registration Statement and the Prospectus do not comply
as to form in all material respects with the applicable requirements of
Rule 11-02 of Regulation S-X or that the pro forma adjustments have not
been properly applied to the historical amounts in the compilation of
those statements;] and
E-3
<PAGE> 53
(vii) in addition to the procedures referred to in clause (ii)
above, we have performed other procedures, not constituting an audit,
with respect to certain amounts, percentages, numerical data and
financial information included or incorporated by reference in the
Registration Statement and the Prospectus, which are specified herein,
and have compared certain of such items with, and have found such items
to be in agreement with, the accounting and financial records of the
Company.
E-4
<PAGE> 1
EXHIBIT 1.02
EXCEL REALTY TRUST, INC.
(a Maryland Corporation)
6 7/8% Senior Notes due 2004
TERMS AGREEMENT
October 9, 1997
To: Excel Realty Trust, Inc.
16955 Via Del Campo, Suite 100
San Diego, California 92127
Ladies and Gentlemen:
We understand that Excel Realty Trust, Inc., a Maryland corporation (the
"Company"), proposes to issue and sell $75,000,000 aggregate principal amount of
its 6 7/8% Senior Notes due October 15, 2004 (the "Underwritten Securities").
Subject to the terms and conditions set forth or incorporated by reference
herein, the underwriters named below (the "Underwriters") offer to purchase,
severally and not jointly, the principal amount of Underwritten Securities
opposite their names set forth below at the purchase price set forth below.
<TABLE>
<CAPTION>
Principal Amount
Underwriter of Underwritten Securities
- ----------- --------------------------
<S> <C>
Merrill Lynch, Pierce, Fenner & Smith
Incorporated.................................... $33,750,000
Prudential Securities Incorporated.............................. 7,500,000
Salomon Brothers Inc............................................ 18,750,000
Smith Barney Inc................................................ 7,500,000
UBS Securities LLC.............................................. 7,500,000
----------
Total $75,000,000
===========
</TABLE>
<PAGE> 2
The Underwritten Securities shall have the following terms:
6 7/8% SENIOR NOTES DUE OCTOBER 15, 2004
Title: 6 7/8% Senior Notes due 2004
Rank: The Underwritten Securities will be direct, unsecured obligations of the
Company and will rank equally with all other unsecured and
unsubordinated indebtedness of the Company.
Ratings: Baa3 from Moody's Investors Service, Inc. and BBB- from Standard &
Poor's Corporation.
Aggregate principal amount: $75,000,000
Denominations: $1,000 and integral multiples thereof
Currency of payment: United States Dollars
Interest rate or formula: 6 7/8% per annum
Interest payment dates: April 15 and October 15, commencing April 15, 1998
Regular record dates: April 1 and October 1
Stated maturity date: October 15, 2004
Redemption provisions: The Underwritten Securities will be redeemable at the
option of the Company, in whole or in part, at any time on or after
October 15, 2002, at the redemption prices set forth in the Prospectus
Supplement dated October 9, 1997 relating to the Debt Securities, plus
accrued and unpaid interest.
Fixed or Variable Price Offering: Fixed Price Offering
If Fixed Price Offering, initial public offering price per share:
99.415% of the principal amount, plus accrued interest, if any, from
October 15, 1997.
Purchase price per share: 98.79% of principal amount, plus accrued interest, if
any, from October 15, 1997.
Form: Global Note
Other terms and conditions: None
Closing date and location: October 15, 1997, 9:00 AM EST, Brown & Wood LLP, One
World Trade Center, New York, New York 10048.
All of the provisions contained in the document attached as Annex I
hereto entitled "EXCEL REALTY TRUST, INC.-- Common Stock, Preferred Stock,
Depositary Shares, Warrants and Debt Securities--Underwriting Agreement" are
hereby incorporated by reference in their entirety herein and shall be deemed to
be a part of this Terms Agreement to the same extent as if such provisions had
been set forth in full herein. Terms defined in such document are used herein as
therein defined.
2
<PAGE> 3
Please accept this offer no later than 6:00 P.M. (New York City time) on
October 9, 1997 by signing a copy of this Terms Agreement in the space set forth
below and returning the signed copy to us.
Very truly yours,
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
PRUDENTIAL SECURITIES INCORPORATED
SALOMON BROTHERS INC.
SMITH BARNEY INC.
UBS SECURITIES LLC
By: MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By: /s/ Daniel J. Campbell
-----------------------------------------
Name: Daniel J. Campbell
Title: Authorized Signatory
Acting on behalf of itself and the other named
Underwriters.
Accepted:
EXCEL REALTY TRUST, INC.
By: /s/ Graham R. Bullick
------------------------------------
Name: Graham R. Bullick
Title: Senior Vice President
3
<PAGE> 1
EXHIBIT 4.01
[FACE OF NOTE]
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO
A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY
DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.
REGISTERED REGISTERED
NO. PRINCIPAL AMOUNT
CUSIP NO. $_______________
EXCEL REALTY TRUST, INC.
_____% ________ Note due ____
Excel Realty Trust, Inc., a corporation duly organized and existing
under the laws of the State of Maryland (herein called the "Issuer"), for value
received, hereby promises to pay to Cede & Co., or its registered assigns, the
principal sum of $__________ on __________, ____ (the "Maturity Date"), unless
redeemed prior thereto in accordance with the provisions hereof, and to pay
interest thereon from and including __________, ____ or the most recent Interest
Payment Date (as defined below) to which interest has been paid or duly provided
for, as the case may be, semi-annually in arrears on ________ and __________ of
each year (each, an "Interest Payment Date"), commencing on ________, ____, at
the rate of _____% per annum, until payment of said principal sum has been made
or duly provided for. Interest on this Note will be computed on the basis of a
360-day year of twelve 30-day months.
Interest on this Note on any Interest Payment Date will include the
amount of interest accrued from and including __________, ____ or the most
recent Interest Payment Date to which interest has been paid or duly provided
for, as the case may be, to but excluding the applicable Interest Payment Date
or the Maturity Date or the Redemption Date (as defined on the reverse hereof),
as the case may be.
<PAGE> 2
The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will be paid to the Holder in whose name this Note (or one
or more predecessor Notes) is registered at the close of business on the
"Regular Record Date" for such payment, which will be 15 days (regardless of
whether such day is a Business Day (as defined below)) prior to such Interest
Payment Date. Any interest not so punctually paid or duly provided for shall
forthwith cease to be payable to the Holder on such Regular Record Date, and
shall be paid to the Holder in whose name this Note (or one or more predecessor
Notes) is registered at the close of business on a subsequent Special Record
Date for the payment of such defaulted interest (which shall be not more than 15
days and not less than 10 days prior to the date of the payment of such
defaulted interest) established by notice given by mail by or on behalf of the
Issuer to the Holders of the Notes not less than 10 days prior to such Special
Record Date.
The principal of and premium, if any, on this Note payable on the
Maturity Date or the Redemption Date will be paid by the Issuer against
presentation and surrender of this Note at the office or agency of the Issuer
maintained for that purpose in The City of New York. The Issuer hereby initially
designates the corporate trust office of the Trustee, located at 61 Broadway,
15th Floor, New York, New York 10006, as the office to be maintained by it where
Notes may be presented for payment or for registration of transfer or exchange
and where notices or demands to or upon the Issuer in respect of the Notes or
the Indenture referred to on the reverse hereof may be served.
If any Interest Payment Date or the Maturity Date or the Redemption Date
falls on a day that is not a Business Day, the required payment of interest or
principal will be made on the next Business Day with the same force and effect
as if it were made on the date such payment was due, and no interest shall
accrue on the amount so payable for the period from and after such Interest
Payment Date, Maturity Date, or Redemption Date, as the case may be, to the date
of such payment on such next Business Day. "Business Day" means any day other
than a Saturday, Sunday or other day on which banking institutions in The City
of New York are authorized or obligated by law, regulation or executive order to
be closed.
All payments of principal, premium, if any, and interest in respect of
this Note will be made by the Issuer in immediately available funds in such coin
or currency of the United States of America as at the time of payment is legal
tender for the payment of public and private debts.
Reference is made to the further provisions of this Note set forth on
the reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.
2
<PAGE> 3
This Note shall not be entitled to the benefits of the Indenture or be
valid or become obligatory for any purpose until the Certificate of
Authentication hereon shall have been signed by the Trustee referred to on the
reverse hereof.
IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed manually or by facsimile, by its duly authorized officer.
Dated: __________, 19___
Attest: EXCEL REALTY TRUST, INC.,
as Issuer
________________________________ By: ___________________________
Name: Name:
Title Title:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
STATE STREET BANK AND TRUST COMPANY
OF CALIFORNIA, N.A.,
as Trustee
By: ___________________________
Authorized Officer
3
<PAGE> 4
[REVERSE OF NOTE]
EXCEL REALTY TRUST, INC.
_____% ____________ Note due ____
This Note is one of a duly authorized issue of debentures, notes, bonds,
or other evidences of indebtedness of the Issuer (hereinafter called the
"Securities") of the series hereinafter specified, all issued or to be issued
under and pursuant to an Indenture, dated as of May 8, 1995, as amended,
modified and supplemented from time to time (herein called the "Indenture"),
duly executed and delivered by the Issuer to State Street Bank and Trust Company
of California, N.A. (as successor to The First National Bank of Boston), as
Trustee (herein called the "Trustee," which term includes any successor trustee
under the Indenture with respect to the series of Securities of which this Note
is a part), to which Indenture and all indentures supplemental thereto,
including the First Supplemental Indenture, dated as of April 4, 1997 and the
Second Supplemental Indenture dated as of July 3, 1997, reference is hereby made
for a description of the rights, limitations of rights, obligations, duties, and
immunities thereunder of the Trustee, the Issuer, and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Note is one of a series of Securities of the
Issuer designated as the "_____% _________ Notes due ____".
This Note is subject to redemption at the option of the Issuer, in whole
or in part, upon not less than 30 nor more than 60 days prior written notice, at
any time on or after __________, ____, at a redemption price equal to the sum of
(i) the principal amount being redeemed, plus accrued and unpaid interest
thereon to the redemption date (the "Redemption Date"), and (ii) the Make-Whole
Amount (as defined below), if any, with respect to principal amount being
redeemed (the "Redemption Price"); provided, however, that interest payable on
an Interest Payment Date which is on or prior to the Redemption Date shall be
payable to the person in whose name this Note is registered in the security
register of the Issuer as of the close of business on the Regular Record Date
immediately preceding such Interest Payment Date.
As used herein:
"Make-Whole Amount" means, in connection with any optional
redemption of this Note, the excess, if any, of (i) the aggregate
present value as of the date of such redemption of each dollar of
principal being redeemed and the amount of any interest (exclusive of
interest accrued to the Redemption Date) that would have been payable in
respect of each such
4
<PAGE> 5
dollar if such redemption had not been made, determined by discounting,
on a semi-annual basis, such principal and interest at the applicable
Reinvestment Rate (determined on the third Business Day preceding the
date such notice of redemption is given) from the respective dates on
which such principal and interest would have been payable if such
redemption had not been made, over (ii) the aggregate principal amount
of this Note being redeemed.
"Reinvestment Rate" means 0.25% plus the yield on treasury
securities at a constant maturity under the heading "Week Ending"
published in the most recent Statistical Release under the caption
"Treasury Constant Maturities" for the maturity (rounded to the nearest
month) corresponding to the remaining life to maturity, as of the
payment date of the principal amount of this Note being redeemed. If no
maturity exactly corresponds to such maturity, yields for the two
published maturities most closely corresponding to such maturity shall
be calculated pursuant to the immediately preceding sentence and the
Reinvestment Rate shall be interpolated or extrapolated from such yields
on a straight-line basis, rounding in each of such relevant periods to
the nearest month. For the purpose of calculating the Reinvestment Rate,
the most recent Statistical Release published prior to the date of
determination of the Make-Whole Amount shall be used.
"Statistical Release" means the statistical release designated
"H.15(519)" or any successor publication which is published weekly by
the Federal Reserve System and which established yields on actively
traded United States government securities adjusted to constant
maturities, or, if such statistical release is not published at the time
of any determination of the Make-Whole Amount, then such other
reasonably comparable index which shall be designated by the Issuer.
This Note is not subject to repayment at the option of the Holder
thereof. In addition, this Note is not entitled to the benefit of any sinking
fund.
In case an Event of Default with respect to this Note shall have
occurred and be continuing, the principal hereof may be accelerated, and upon
such acceleration shall become, due and payable, in the manner, with the effect,
and subject to the conditions, provided in the Indenture.
The Indenture contains provisions for defeasance of (i) the entire
indebtedness of the Notes or (ii) certain covenants and Events of Default with
respect to the Notes, in each case upon compliance with certain conditions set
forth therein, which apply to the Notes.
5
<PAGE> 6
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Securities at any time by the Issuer
and the Trustee with the consent of the Holders of not less than a majority of
the aggregate principal amount of all Securities issued under the Indenture at
the time outstanding and affected thereby. Furthermore, provisions in the
Indenture permit the Holders of not less than a majority of the aggregate
principal amount, in certain instances, of the Outstanding Securities of any
series to waive, on behalf of all of the Holders of Securities of such series,
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders and upon all future Holders of this Note and
other Notes issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not such consent or waiver is made upon
this Note.
No reference herein to the Indenture and no provision of this Note or
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and premium, if any, and
interest on this Note in the manner, at the respective times, at the rate and in
the coin or currency herein prescribed.
This Note is issuable only in registered book-entry form without
coupons, in denominations of $1,000 and integral multiples thereof.
The Notes may be exchanged for a like aggregate principal amount of
Notes of other authorized denominations at the office or agency of the Issuer in
The City of New York, in the manner and subject to the limitations provided
herein and in the Indenture, but without the payment of any service charge
except for any tax or other governmental charge imposed in connection therewith.
Upon due presentment for registration of transfer of the Notes at the office or
agency of the Issuer in The City of New York, one or more new Notes of
authorized denominations in an equal aggregate principal amount will be issued
to the transferee in exchange therefor, subject to the limitations provided
herein and in the Indenture, but without the payment of any service charge
except for any tax or other governmental charge imposed in connection therewith.
Prior to due presentment of this Note for registration of transfer, the
Issuer and the Trustee or any authorized agent of the Issuer or the Trustee may
deem and treat the Person in whose name this Note is registered as the absolute
owner and Holder hereof (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon) for all
purposes, and neither the Issuer nor the Trustee nor any authorized agent of
6
<PAGE> 7
the Issuer or the Trustee shall be affected by any notice to the contrary.
The Indenture and the Notes shall be governed by, and construed in
accordance with, the laws of the State of New York applicable to agreements made
or instruments entered into and, in each case, performed in said State.
Capitalized terms used but not defined herein shall have the respective
meanings assigned to them in the Indenture.
7
<PAGE> 8
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of
this Note, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - ______ Custodian _____
TEN ENT - as tenants by the entireties (Cust) (Minor)
JT TEN - as joint tenants with right of under Uniform Gifts to Minors
survivorship and not as tenants Act_____________________
in common (State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_____________________________________________
_____________________________________________________________.
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
_____________________________________________________________
_____________________________________________________________
(Please print or Typewrite Name and Address
Including Postal Zip Code of Assignee)
_____________________________________________________________
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints___________________________________________
_____________________________________________________________
to transfer said Note on the books of the Company, with full power of
substitution in the premises.
Dated:__________________________
Signature Guaranteed
- ---------------------------- -----------------------------
NOTICE: Signature must be NOTICE: The signature to this
guaranteed by a member assignment must correspond
firm of the New York Stock with the name as written upon
Exchange or a commercial the face of the within Note
bank or trust company. in every particular, without
alteration or enlargement or
any change whatever.
