Document:

registrationrightagreement.htm

 

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (“Agreement”) is entered into as of June 23, 2011 by and between Sun Communities, Inc., a Maryland corporation (the “Company”), and the holders of Series A-1 Preferred Units that have executed this Agreement below (the “Initial Holders”). The Company and each Holder is sometimes referred to herein individually as a “Party” and together as the “Parties”.

 

W I T N E S S E T H:

 

WHEREAS, the Initial Holders are the holders of the Series A-1 Preferred Units (as defined below).

 

WHEREAS, the Series A-1 Preferred Units are exchangeable for shares of Common Stock (as defined below) in accordance with the terms of the Partnership Agreement (as defined below).

 

WHEREAS, the Company desires to provide to the Holders rights to registration under the Securities Act (as defined below) of the Registrable Shares (as defined below), upon the terms and subject to the conditions set forth herein.

 

NOW THEREFORE, in consideration of the promises, agreements and covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties hereby agree as follows:

 

ARTICLE I.

 

 

DEFINITIONS

 

Section 1.01                      Definitions.  The following terms, as used herein, have the following meanings:

 

“Affiliate” has the meaning set forth in Rule 501 of Regulation D promulgated under the Securities Act.

 

“Agreement” has the meaning set forth in the preamble.

 

“Commission” means the United States Securities and Exchange Commission, and any successor thereto.

 

“Common Stock” means the Company’s common stock, $0.01 par value per share, and any securities of the Company into which such shares are converted and for which such shares are exchanged and any Common Stock or other securities of the Company or any successor entity which may be issued or distributed in respect of the Common Stock by way of stock dividend or stock split or other distribution, recapitalization, merger, conversion or reclassification.

 

 

  

  

  

 

“Company” has the meaning set forth in the preamble.

 

“Effectiveness Period” has the meaning set forth in Section 3.01(a).

 

“FINRA” means the Financial Industry Regulatory Authority.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder, as in effect from time to time.

 

“Holders” means, collectively, each of the Initial Holders and their successors and permitted assigns (subject to and in accordance with Section 5.09).

 

“Indemnified Party” has the meaning set forth in Section 4.03.

 

“Indemnifying Party” has the meaning set forth in Section 4.03.

 

“Initial Holders” has the meaning set forth in the preamble.

 

 “Losses” has the meaning set forth in Section 4.01.

 

“Partnership” means Sun Communities Operating Limited Partnership, a Michigan limited partnership.

 

“Partnership Agreement” means the Second Amended and Restated Limited Partnership Agreement of Sun Communities Operating Limited Partnership dated April 30, 1996, as amended through the date hereof and as further amended or restated from time to time.

 

“Piggyback Registration” has the meaning set forth in Section 2.01.

 

“Prospectus” means the prospectus included in a Registration Statement (including a prospectus that includes any information previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such prospectus.

 

“Registrable Shares” means any shares of Common Stock which are issued upon the exchange of the Series A-1 Preferred Units in accordance with the terms of the Partnership Agreement and held at any time by the Holders; provided, however, that any such securities will cease to be Registrable Shares when (i) a Registration Statement with respect to the sale by the Holder of such securities shall have become effective under the Securities Act and such securities shall have been disposed of in accordance with such Registration Statement, (ii) such securities shall have been distributed to the public pursuant to Rule 144 (or any successor provision) or any other exemption under the Securities Act or are eligible for sale under Rule 144 without regard to the volume limitation contained in Rule 144(e), or (iii) such shares shall have ceased to be outstanding.

 

 

  

2

  

 

“Registration Statement” means a registration statement in the form required to register the resale of Registrable Shares under the Securities Act and other applicable law, and including any Prospectus, amendments and supplements to each such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Registration Expenses” has the meaning set forth in Section 3.02.

 

“Rule 144” means Rule 144 (or any successor rule of similar effect) promulgated under the Securities Act.

 

“Selling Holder” means any Holder which is selling Registrable Shares pursuant to a public offering registered hereunder.

 

“Series A-1 Preferred Units” means those Series A-1 Preferred Units representing preferred limited partnership interests in the Partnership which are held by the Initial Holders as of the date hereof and are set forth on Exhibit A hereto.

 

“Underwriter” means a securities dealer which purchases any Registrable Shares as principal in connection with a Piggyback Registration and not as part of such dealer’s market-making activities.

 

Section 1.02                      Internal References.  Unless the context indicates otherwise, references to Articles, Sections and paragraphs shall refer to the corresponding articles, sections and paragraphs in this Agreement.

 

 

ARTICLE II.

 

REGISTRATION RIGHTS

 

Section 2.01                      Registration.  (a)  If the Company proposes to file a registration statement under the Securities Act with respect to an offering of securities for its own account or for the account of another person (other than a registration statement on Form S-4 or S-8 (or any substitute form that may be adopted by the Commission)), the Company shall give written notice of such proposed filing to the Holders at the addresses set forth on the records of the Partnership as soon as reasonably practicable (but in no event less than ten (10) days before the anticipated date on which such registration statement will be first filed with the Commission), undertaking to provide each Holder the opportunity to register on the same terms and conditions such number and type of Registrable Shares as such Holder may request (a “Piggyback Registration”).  Each Holder will have five (5) days after receipt of any such notice to notify the Company as to whether it wishes to participate in a Piggyback Registration; provided that should a Holder fail to provide timely notice to the Company, such Holder will forfeit any rights to participate in the Piggyback Registration with respect to such proposed offering.  In the event that the registration statement is filed on behalf of a person other than the Company, the Company will use its commercially reasonable efforts to have the Registrable Shares that the Holders wish to sell included in the registration statement.  If the Company shall determine in its sole discretion not to register or to delay the proposed offering, the Company shall provide written notice of such

 

 

  

3

  

 

determination to the Holders and (i) in the case of a determination not to effect the proposed offering, shall thereupon be relieved of the obligation to register such Registrable Shares in connection therewith and (ii) in the case of a determination to delay a proposed offering, shall thereupon be permitted to delay registering such Registrable Shares for the same period as the delay in respect of the proposed offering, in any case, without obligation or liability to any Holder.  The Company shall be entitled to select the managing Underwriters and any additional investment bankers and managers in connection with any Piggyback Registration, without the approval of the Holders.

 

(b)           Priority on Piggyback Registrations.  Subject to the succeeding provisions of this Section 2.01(b), if the managing Underwriter or Underwriters shall advise the Company that the inclusion of Registrable Shares requested to be included in the Piggyback Registration by any Holder would materially and adversely affect the price, distribution or timing of the offering, the Company will be obligated to include in such registration statement, as to each Holder, only a portion of the Registrable Shares such Holder has requested be registered as determined below; provided, however, that the provisions of this sentence shall not be applicable to the person or persons initiating such registration statement.  If the Company initiated the registration, then the Company may include all of its securities in such registration statement and the number of securities which all security holders (which have the contractual right to request that their shares be included in such registration statement, including the Holders) have requested or otherwise sought to be included in such registration statement shall be reduced as necessary pro rata in proportion to the relative number of securities requested or otherwise sought by each such security holder to be included in such registration statement until the number of securities to be included in such registration statement no longer exceeds the number which can be sold in such offering.  If another security holder initiated the registration and the Company wishes to include any of its securities in such registration statement, then the number of securities which all security holders (which have the contractual right to request that their shares be included in such registration statement, including the Holders) and the Company have requested or otherwise sought to be included in such registration statement shall be reduced as necessary pro rata in proportion to the relative number of securities requested or otherwise sought by each such security holder and the Company to be included in such registration statement until the number of securities to be included in such registration statement no longer exceeds the number which can be sold in such offering.  If, as a result of the provisions of this Section 2.01(b), any Holder shall not be entitled to include all Registrable Shares in a registration that such Holder has requested to be so included, such Holder may withdraw such Holder’s request to include Registrable Shares in such registration statement prior to its effectiveness.

 

 

  

4

  

 

ARTICLE III.

 

 

REGISTRATION PROCEDURES

 

Section 3.01                      Filings; Information.  In connection with the registration of Registrable Shares pursuant to Section 2.01 hereof, the Company will use its commercially reasonable efforts to effect the registration of such Registrable Shares as promptly as is reasonably practicable, and in connection with any such request:

 

(a)           The Company will expeditiously prepare and file as soon as practicable with the Commission a Registration Statement on any form for which the Company then qualifies for the sale of the Registrable Shares to be registered thereunder in accordance with the intended method of distribution thereof pursuant to Section 2.01, and use its commercially reasonable efforts to cause such filed Registration Statement to become and remain effective until earlier of (x) the date on which all Registrable Shares have been sold pursuant to such Registration Statement and (y) the date on which all Registrable Shares are eligible for resale under Rule 144 promulgated under the Securities Act (without regard to the volume limitations contained in Rule 144(e))(the “Effectiveness Period”).

 

(b)           The Company will furnish to any Selling Holder draft copies of any Registration Statement or Prospectus or any amendments or supplements thereto proposed to be filed at least five (5) days prior to such filing.

 

(c)           The Company will notify the Selling Holders requesting such registration, as soon as practicable after notice thereof is received by the Company, (i) when the Registration Statement or any amendment thereto has been filed or becomes effective and the Prospectus or any amendment or supplement to the Prospectus has been filed, (ii) of any request by the Commission for amendments or supplements to the Registration Statement or the Prospectus or for additional information, and (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Shares for offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose.

 

(d)           After the filing of the Registration Statement, the Company will promptly notify the Selling Holders of any stop order issued, or, to the Company’s knowledge, threatened to be issued, by the Commission and use its commercially reasonable efforts to prevent the entry of such stop order or to remove it if entered.

 

(e)           The Company will prepare and file with the Commission such amendments, post-effective amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the Effectiveness Period, cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement (to the extent such compliance obligations fall on the Company)

 

 

  

5

  

 

        during such period in accordance with the intended methods of disposition by the Selling Holders set forth in such Registration Statement.

 

(f)           The Company will furnish to each Selling Holder requesting such registration and the managing Underwriters, if any, without charge, such number of conformed copies of such Registration Statement, each amendment and supplement thereto, the Prospectus included in such Registration Statement (including each preliminary Prospectus) and any amendments or supplements thereto, as any such Selling Holder or managing Underwriter may reasonably request in order to facilitate the disposition of the Registrable Shares.

 

(g)           The Company will use its commercially reasonable efforts to qualify (or exempt) the Registrable Shares for offer and sale under such other securities or blue sky laws of such jurisdictions in the United States as the Selling Holders reasonably request; keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period; and do any and all other acts and things which may be reasonably necessary or advisable to enable each Selling Holder to consummate the disposition of the Registrable Shares owned by such Selling Holder in such jurisdictions; provided that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph 3.01(g), (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction.

 

(h)           The Company will as promptly as practicable notify the Selling Holders, at any time when a Prospectus relating to the sale of the Registrable Shares is required by law to be delivered under the Securities Act, of the occurrence of any event requiring the preparation of a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of such Registrable Shares, such Prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and promptly make available to the Selling Holders and to the Underwriters any such supplement or amendment.  Upon receipt of any notice of the occurrence of any event of the kind described in the preceding sentence, the Selling Holders will forthwith discontinue the offer and sale of Registrable Shares pursuant to the Registration Statement covering such Registrable Shares until receipt by the Selling Holders and the Underwriters of the copies of such supplemented or amended Prospectus and, if so directed by the Company, the Selling Holders will deliver to the Company all copies, other than permanent file copies then in the possession of Selling Holders, of the most recent Prospectus covering such Registrable Shares at the time of receipt of such notice.

 

(i)           The Company will enter into such customary agreements (including an under-writing agreement in customary form, including customary representations, warranties, covenants, conditions and indemnities) and take such other customary actions as are reasonably necessary in order to expedite or facilitate the sale of such Registrable Shares.

 

 

  

6

  

 

(j)           At the request of any Underwriter in connection with an underwritten offering, the Company will furnish an opinion of counsel, addressed to the Underwriters, covering such customary matters as the managing Underwriters may reasonably request and (ii) a comfort letter or comfort letters (and updates thereof) from the Company’s independent public accountants covering such customary matters as the managing Underwriters may reasonably request.

 

(k)           If requested by the managing Underwriters or any Selling Holder, the Company shall promptly incorporate in a Prospectus supplement or post effective amendment such information as the managing Underwriters or any Selling Holder reasonably requests to be included therein, to the extent counsel for the Company deems inclusion of such information to be necessary for such Selling Holder to be able to sell Registrable Shares, and promptly make all required filings of such Prospectus supplement or post effective amendment.

 

(l)           The Company shall use commercially reasonable efforts to cause the Registrable Shares included in any Registration Statement to be (A) listed on each securities exchange, if any, on which similar securities issued by the Company are then listed or (B) authorized to be quoted and/or listed (to the extent applicable) on the Nasdaq Global Market (or any other applicable Nasdaq market), if the Registrable Shares so qualify.

 

(m)           The Company shall provide a CUSIP number, registrar and transfer agent for the Registrable Shares included in any Registration Statement not later than the effective date of such Registration Statement.

 

(n)           The Company and each Selling Holder shall cooperate in connection with any filings required to be made with FINRA.

 

(o)           The Company shall, during the period when the Prospectus is required to be delivered under the Securities Act, file all documents required to be filed with the Commission pursuant to the Exchange Act in accordance with the provisions of the Exchange Act and the rules and regulations promulgated thereunder.

 

(p)           The Company may require Selling Holders promptly to furnish in writing to the Company such information regarding such Selling Holders, the plan of distribution of the Registrable Shares and other information as may be legally required in connection with such registration, and the Selling Holders agree to do so as promptly as reasonably practicable.

 

Section 3.02                      Registration Expenses.  The Selling Holders will pay the following registration expenses (collectively, “Registration Expenses”) incurred in connection with a Piggyback Registration: (i) registration and filing fees with the Commission and the FINRA with respect to the Registrable Shares included in the Piggyback Registration, (ii) fees and expenses incurred in connection with the listing or quotation of the Registrable Shares, and (iii) fees and expenses of counsel to the Selling Holders. The Company will pay all other Registration Expenses incurred in connection with a Piggyback Registration, including (1) fees and expenses

 

 

  

7

  

 

of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications of the Registrable Shares), (2) printing expenses, (3) fees and expenses of counsel to the Company and independent certified public accountants for the Company (including fees and expenses associated with the special audits or the delivery of comfort letters), and (4) fees and expenses of any additional experts retained by the Company in connection with such registration. The Company will not be required to pay for any underwriting discounts or commissions or any broker’s fees or other similar selling fees attributable to the sale of Registrable Shares, which shall be borne by the Selling Holders of the Registrable Shares so registered pro rata on the basis of the number of their Registrable Shares so registered.

 

Section 3.03                      Lock-Up Agreements.    Each Selling Holder shall, if requested (pursuant to a written notice) by the managing Underwriter(s) in an underwritten offering, not to effect any public sale or distribution of any Registrable Shares (except as part of such underwritten offering) during the period commencing seven (7) days prior to and continuing for not more than ninety (90) days (or such shorter period as the managing underwriter(s) may permit) after the date of the Prospectus (or Prospectus supplement if the offering is made pursuant to a “shelf” Registration Statement) pursuant to which such underwritten offering shall be made.

 

 

 

ARTICLE IV.

 

INDEMNIFICATION AND CONTRIBUTION

 

Section 4.01                      Indemnification by the Company.  The Company agrees to indem­nify and hold harmless, to the fullest extent permitted by applicable law, each Selling Holder and its Affiliates and their respective officers, directors, partners, stockholders, members, employees, agents and representatives and each person (if any) which controls a Selling Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages, liabilities, costs and expenses (including reasonable attorneys’ fees) (collectively, “Losses”) caused by, arising out of, resulting from or related to any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, preliminary Prospectus or Prospectus relating to the Registrable Shares (as amended or supplemented from time to time), or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus, in light of the circumstances under which they were made, not misleading, except insofar as such Losses are caused by or contained in or based upon any information furnished in writing to the Company by or on behalf of such Selling Holder or any Underwriter expressly for use therein (which was not subsequently corrected in writing prior to the sale of Registrable Shares to the person asserting the Loss in sufficient time to permit the Company to amend or supplement the Registration Statement or such Prospectus appropriately) or by the Selling Holder’s failure to deliver a copy of the Registration Statement or Prospectus or any amendments or supplements thereto after the Company has furnished the Selling Holder with copies of the same.  The Company also agrees to indemnify any Underwriters of the Registrable Shares, their Affiliates, officers, directors, employees. Agents and representatives and each person (if any) which controls such Underwriters, within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, on substantially the same

 

 

  

8

  

 

basis as that of the indemnification of the Selling Holders provided in this Section 4.01.  Notwithstanding the foregoing, the Company shall have no obligation to indemnify under this Section 4.01 to the extent any such Losses have been finally and non­-appealably determined by a court of competent jurisdiction to have resulted from a Selling Holder’s or Underwriter’s willful misconduct or gross negligence.

 

Section 4.02                      Indemnification by Selling Holders.  The Selling Holders agree to indemnify and hold harmless, to the fullest extent permitted by applicable law, the Company and its Affiliates and their respective officers, directors, partners, stockholders, members, employees, agents and representatives and each person (if any) which controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all Losses caused by, arising out of, resulting from or related to any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, preliminary Prospectus or Prospectus relating to the Registrable Shares (as amended or supplemented from time to time), or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus, in light of the circumstances under which they were made, not misleading, but only insofar as such Losses are caused by or contained in or based upon any information furnished in writing to the Company by or on behalf of such Selling Holder expressly for use therein (which was not subsequently corrected in writing prior to or concurrently with the sale of Registrable Shares to the person asserting the Loss in sufficient time to permit the Company to amend or supplement the Registration Statement or such Prospectus appropriately).  Notwithstanding the foregoing, the Selling Holder shall have no obligation to indemnify under this Section 4.02 to the extent that any such Losses have been finally and non-appealably determined by a court of competent jurisdiction to have resulted from the Company’s willful misconduct or gross negligence.

 

Section 4.03                      Conduct of Indemnification Proceedings.  In case any claim or proceeding (including any governmental investigation) shall be instituted or threatened involving any person in respect of which indemnity may be sought pursuant to Section 4.01 or Section 4.02, such person (the “Indemnified Party”) shall promptly notify the person against which such indemnity may be sought (the “Indemnifying Party”) in writing (it being understood that the failure to give such notice shall not relieve any Indemnifying Party from any liability which it may have hereunder except to the extent the Indemnifying Party is actually and materially prejudiced by such failure) and the Indemnifying Party, upon the request of the Indemnified Party, shall retain counsel reasonably satisfactory to such Indemnified Party to represent such Indemnified Party and shall pay the fees and disbursements of such counsel related to such claim or proceeding.  If the Indemnifying Party does not elect within fifteen (15) days after receipt of the notice required hereby to assume the defense of any claim or proceeding, the Indemnified Party may assume such defense with counsel of its choice at the cost and expense of the Indemnifying Party.  In any such claim or proceeding where the Indemnifying Party has assumed the defense, any Indemnified Party shall have the right to retain its own counsel and participate in, but not control, the defense, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the Indemnified Party and the Indemnifying Party and, in the written opinion of counsel for the Indemnified

 

 

  

9

  

 

Party, representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them, in which case the Indemnified Party may retain counsel of its choice, which counsel shall be reasonably satisfactory to the Indemnifying Party, and such counsel may defend the Indemnified Party and its reasonable fees and expenses shall be paid by the Indemnifying Party.  It is understood that the Indemnifying Party shall not, in connection with any claim or proceeding or related proceedings, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel for each such jurisdiction) at any time for all such Indemnified Parties, and that all such fees and expenses shall be reimbursed as they are incurred.  In the case of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties.  The Indemnifying Party shall not settle any claim or proceeding without the written consent of the Indemnified Party (not to be unreasonably withheld), unless such settlement (x) requires no remedy, relief or penalty other than the payment of money damages, (y) does not require any Indemnified Party to admit culpability or fault in any respect and (z) contains a full and complete release of the Indemnified Party with respect to all matters arising from the facts giving rise to the underlying claim or proceeding.  The Indemnifying Party shall not be liable for any settlement of any claim or proceeding effected without its written consent, but if settled with such consent, or if there be a final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any Loss (to the extent stated above) by reason of such settlement or judgment.

 

Section 4.04                      Contribution.  If the indemnification provided for in this Article IV is unavailable to an Indemnified Party in respect of any Losses in respect of which indemnity is to be provided hereunder, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall to the fullest extent permitted by law contribute to the amount paid or payable by such Indemnified Party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of such party in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations.  The relative fault of the Company, each Selling Holder and the Underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The Company and each Selling Holder agrees that it would not be just and equitable if contribution pursuant to this Section 4.04 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 that does not take account of the equitable considerations referred to in the immediately preceding paragraph.  The amount paid or payable by an Indemnified Party as a result of the Losses referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim or proceeding.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person which was not guilty of such fraudulent misrepresentation.

 

 

 

ARTICLE V.

 

MISCELLANEOUS

 

 

  

10

  

 

Section 5.01                      Participation in Registrations.  No Selling Holder may participate in any Piggyback Registration contemplated hereunder unless such Selling Holder (a) if the offering is underwritten, agrees to sell its securities on the basis provided in any underwriting arrangements, (b) completes and executes all questionnaires, powers of attorney, custody arrangements, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements and this Agreement, (c) furnishes in writing to the Company such information regarding such Selling Holder, the plan of distribution of the Registrable Shares and other information as the Company may from time to time reasonably request or as may be legally required in connection with such registration and (d) sells or otherwise transfers its securities in accordance with the plan of distribution described in the Prospectus covering such sale and delivers a current Prospectus in connection therewith in accordance with the requirements of the Securities Act; provided, however, that no such Selling Holder shall be required to make any representations or warranties in connection with any such registration other than representations and warranties as to (i) such Selling Holder’s ownership of its Registrable Shares to be sold or transferred free and clear of all liens, claims and encumbrances, (ii) such Selling Holder’s power and authority to effect such transfer and (iii) such matters pertaining to compliance with securities laws as may be reasonably requested; provided, further, that the obligation of such Selling Holder to indemnify pursuant to any such underwriting agreements shall be several, not joint and several, among such Selling Holder selling Registrable Shares, and the liability of each such Selling Holder will be in proportion to, and limited to, the net amount received by such Selling Holder from the sale of such Selling Holder’s Registrable Shares pursuant to such registration.

 

Section 5.02                      Compliance.  The Company covenants that it will file any reports required to be filed by it under the Securities Act and the Exchange Act in accordance with the provisions of the Securities Act and the Exchange Act and the rules and regulations promulgated thereunder.  Upon the request of any Holder, the Company will deliver to such Holder a written statement as to whether it has complied with such reporting requirements.

 

Section 5.03                      Termination.  The registration rights granted under this Agreement will terminate at such time as there shall no longer be any Registrable Shares.

 

Section 5.04                      Amendments, Waivers, Etc.  Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by the written consent of all Holders of Registrable Shares and the Company.

 

Section 5.05                      Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement.  Each party need not sign the same counterpart.

 

Section 5.06                      Entire Agreement.  This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

 

 

  

11

  

 

Section 5.07                      Governing Law.  This Agreement shall be governed in all respects by the laws of the State of Michigan without regard to choice of laws or conflict of laws provisions thereof that would require the application of the laws of any other jurisdiction.

 

Section 5.08                      Submission to Jurisdiction; Venue; Waiver of Trial by Jury.  Each Party irrevocably submits to the exclusive jurisdiction of any state or United States Federal court sitting in the Eastern District of Michigan, over any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated thereby.  Each Party irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding brought in such a court and any Claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH IN THIS SECTION.

 

Section 5.09                      Assignment of Registration Rights.  Each Holder of Registrable Shares may assign all or any part of its rights under this Agreement to any person to which such Holder sells, transfers or assigns (i) any of its Series A-1 Preferred Units provided, that such sale, transfer or assignment is permitted under the terms of the Partnership Agreement, or (ii) Registrable Shares, after such Series A-1 Preferred Units are exchanged into Registrable Shares, in each case provided that such person agrees in writing to be bound by the provisions of this Agreement.  In the event that the Holder shall assign its rights pursuant to this Agreement in connection with the transfer of less than all its Registrable Shares, the Holder shall also retain its rights with respect to its remaining Registrable Shares.

 

Section 5.10                      Specific Performance.  The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or was otherwise breached.  It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any state or United States Federal court sitting in the Eastern District of Michigan, this being in addition to any other remedy to which they are entitled at law or in equity.  Additionally, each Party irrevocably waives any defenses based on adequacy of any other remedy, whether at law or in equity, that might be asserted as a bar to the remedy of specific performance of any of the terms or provisions hereof or injunctive relief in any action brought therefor.

 

 

  

12

  

 

Section 5.11                      Severability.  If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement and the balance of this Agreement shall be enforceable in accordance with its terms; provided, that upon any such declaration by a court of competent jurisdiction, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the greatest extent possible.

 

 

 

 

[Signature page follows]

 

 

  

13

  

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed on their behalf by an officer thereunto duly authorized as of the date first written above.

 

COMPANY:

Sun Communities, Inc.

 

 

By:  /s/Jonathan Colman                                                  

 

Name:   Jonathan Colman                                                 

 

Title:  Executive Vice President                                       

                                                              

INITIAL HOLDERS:

Apple Carr Village MHP Holding Company #2, LLC

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

Brookside Village MHP Holding Company #2, LLC

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

Cider Mill Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

  

  

  

Continuation of Signature Page to Registration Rights Agreement

Country Hills Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                   

Country Meadows Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

                                                       

Dutton Mill Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                                                         

Hickory Hills Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                             

  

  

  

 

Continuation of Signature Page to Registration Rights Agreement

Hidden Ridge RV Park Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                           

Holiday West Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                           

Leisure Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                        

Oak Island Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

                                                 

  

  

  

Continuation of Signature Page to Registration Rights Agreement

Pinebrook Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

                                                        

Southwood Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                        

Sycamore Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

                                                            

Tamarac Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

  

  

  

Continuation of Signature Page to Registration Rights Agreement

Warren Dunes Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

                                                         

Waverly Shores Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                         

Windsor Woods Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                               

Name:  Wilbur A. Lettinga                                                              

Title:   Manager                                                                                

 

                                                             

  

  

  

Continuation of Signature Page to Registration Rights Agreement

                    /s/ Wilbur A. Lettinga                              

Wilbur A. Lettinga

            

                    /s/ William B. Lettinga                              

William B. Lettinga

                    /s/ Michael Lettinga                                 

Michael Lettinga

 

 

  

  

  

Exhibit A

Series A-1 Preferred Units

	
Initial Holder

	
Series A-1 Preferred Unit Holdingsammendment275th.htm

EXHIBIT I

 

TWO HUNDRED SEVENTY FIFTH AMENDMENT

TO THE

SECOND AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT

OF

SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP

This Two Hundred Seventy fifth Amendment to the Second Amended and Restated Limited Partnership Agreement of Sun Communities Operating Limited Partnership (this “Amendment”) is made and entered into on June 23, 2011, but effective as of May 1, 2011 (“Effective Date”), by and between SUN COMMUNITIES, INC., a Maryland corporation (the “General Partner”), as the general partner of SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan limited partnership (the “Partnership”), and the holders of Series A-1 Preferred Units (as hereinafter defined) set forth on Exhibit A hereto (collectively, the “Series A-1 Preferred Partners”).

Recitals

A.           The Series A-1 Preferred Partners are or were direct or indirect owners of Kentland Corporation, a Michigan corporation, and certain of its affiliated entities (collectively, the “Kentland Entities”). The Kentland Entities, the Partnership and the Series A-1 Preferred Partners are parties to those certain Contribution Agreements (the “Contribution Agreements”), pursuant to which the Series A-1 Preferred Partners and the Kentland Entities have contributed certain assets (the “Contributed Assets”) to the Partnership in consideration for the issuance by the Partnership of Series A-1 Preferred Units.

B.           The signatories hereto desire to amend that certain Second Amended and Restated Limited Partnership Agreement of Sun Communities Operating Limited Partnership, dated as of April 30, 1996, as amended by those certain amendments numbered one through two hundred seventy four (collectively, as amended, the “Agreement”) as set forth herein; any capitalized term not defined herein shall have the respective meaning ascribed to it in the Agreement.

C.           Section 11 of the Agreement authorizes the General Partner, as the holder of more than fifty percent (50%) of the OP Units, to amend the Agreement.

Now, therefore, in consideration of the foregoing, of the mutual promises set forth herein, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree to continue the Partnership and amend the Agreement as follows:

1.           Admission of New Partners. As of the Effective Date, the Series A-1 Preferred Partners have contributed the Contributed Assets to the Partnership in exchange for the assumption by the Partnership of certain debt and the issuance by the Partnership to the Series A-1 Preferred Partners of an aggregate of 455,476 Series A-1 Preferred Units.  The Series A-1 Preferred Units issued to the Series A-1 Preferred Partners have been duly issued and fully paid.  The Series A-1 Preferred Partners are hereby admitted to the Partnership as new Limited Partners, and by execution of this Amendment the Series A-1 Preferred Partners have agreed to be bound by all of the terms and conditions of the Agreement, as amended hereby, and hereby acknowledge receipt of a copy of the Agreement.  Exhibit A of the Agreement is hereby deleted in its entirety and is replaced with Exhibit A to this Amendment.

 

 

  

  

  

2.           Investment Representations.  Each Series A-1 Preferred Partner hereby represents and warrants to the Partnership as follows. Each Series A-1 Preferred Partner hereby agrees to indemnify the Partnership, the General Partner and its directors, officers, employees and agents, against all liability, damages, loss, costs and expenses (including reasonable attorneys' fees and expenses) which any of them may incur by reason of the falsity of any representation or breach of any warranty made by such Series A-1 Preferred Partner.

(a)           Such Series A-1 Preferred Partner has been furnished with or has had access to, and has carefully reviewed, the periodic filings of the General Partner made with the Securities and Exchange Commission, the organizational documents of the Partnership and such other documents relating to the General Partner and the Partnership as it may have requested.  Such Series A-1 Preferred Partner has relied solely on the information contained therein and has not received or relied upon any other representations, warranties or assurances of the Partnership or the General Partner or any persons acting on their behalf, whether written or oral, other than the representations and warranties set forth in the Contribution Agreements. Such Series A-1 Preferred Partner understands that all documents, records and books pertaining to its investment in Series A-1 Preferred Units have been made available for inspection by it and its attorneys, accountants, investment advisors and other representatives.  Such Series A-1 Preferred Partner and its advisors and representatives have had a reasonable opportunity to ask questions of and receive answers from the Partnership and the General Partner, or a person or persons acting on its behalf, concerning the terms and conditions of the issuance of the Series A-1 Preferred Units and the business, affairs and prospects of the Partnership and the General Partner, and all such questions have been answered to such Series A-1 Preferred Partner’s full satisfaction.

(b)           The Series A-1 Preferred Units were not offered for sale to such Series A-1 Preferred Partner by means of: (i) an advertisement, article, notice, letter, circular or other communication published in any newspaper, magazine or similar medium or by other written communication or broadcast over television or radio; or (ii) a seminar or meeting held pursuant to public invitation or announcement; or (iii) any other form of general solicitation or advertising.

(c)           Such Series A-1 Preferred Partner, if an individual, is a citizen of the United States of America, and is at least 21 years of age.

(d)           If such Series A-1 Preferred Partner is an entity, (i) it is duly organized, validly existing and in good standing under all laws applicable to it and has full power and authority to acquire the Series A-1 Preferred Units, and (ii) those persons executing this Amendment on behalf of such Series A-1 Preferred Partner are duly authorized to act for and bind it.

(e)           Such Series A-1 Preferred Partner and its shareholders, members, partners or beneficiaries (if any) have adequate means of providing for their current needs and possible personal contingencies, have no need for liquidity in its investment in the Series A-1 Preferred Units, are able to bear the substantial economic risks of an investment in the Series A-1 Preferred Units for an indefinite period, and at the present time could afford a complete loss of the investment. Such Series A-1 Preferred Partner has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of this investment.

(f)           Such Series A-1 Preferred Partner recognizes that there is substantial economic risk associated with an investment in the Series A-1 Preferred Units, which could result in a complete loss of investment.

 

 

  

2

  

 

(g)           Such Series A-1 Preferred Partner understands, or has consulted with its tax advisors concerning, the tax consequences of an investment in the Series A-1 Preferred Units.  Such Series A-1 Preferred Partner has not received or relied upon any representations, warranties or assurances of the Partnership, the General Partner, or any persons acting on their behalf concerning the tax aspects of an investment in the Series A-1 Preferred Units.

(h)           Such Series A-1 Preferred Partner understands that the Series A-1 Preferred Units have not been registered under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the securities laws of any state.  Such Series A-1 Preferred Partner will not sell or otherwise transfer any the Series A-1 Preferred Units or shares of the General Partner’s common stock which for which they may be exchanged unless they are registered under the Securities Act and any applicable state securities laws, or pursuant to an exemption from such registration satisfactory to the General Partner.  Such Series A-1 Preferred Partner is purchasing the Series A-1 Preferred Units and, upon their exchange, shares of the General Partner’s common stock, solely for its own account for investment only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest in such Series A-1 Preferred Units or shares of common stock.

(i)           Such Series A-1 Preferred Partner understands that it may not be able to sell or dispose of the Series A-1 Preferred Units as there is no public market for them. Such Series A-1 Preferred Partner further understands that the terms of Section 9 of the Agreement restrict their sale or transfer.

3.           Sections 3.1, 3.2 and 3.9.  Sections 3.1, 3.2 and 3.9 of the Agreement are hereby deleted in their entirety and replaced with the following:

“3.1           OP Units

The Partners’ interests in the Partnership are expressed in terms of OP Units and each Partner has been issued OP Units corresponding to the agreed value of its capital contribution.  OP Units consist of Common OP Units, Preferred OP Units, Series A Preferred Units, Series A-1 Preferred Units, Series B Preferred Units, Series B-1 Preferred Units, Series B-2 Preferred Units and Series B-3 Preferred Units.

3.2           Common OP Units

The holders of the Common OP Units shall be entitled to receive distributions in accordance with Section 4.3, after payment of all accrued (i) Preferred Dividends, (ii) Series A-1 Priority Return, (iii) Series A Priority Return, (iv) Series B Priority Return, (v) Series B-1 Priority Return, (vi) Series B-2 Priority Return, and (vii) Series B-3 Priority Return.  No distribution shall be made in respect of Common OP Units while any accrued ((i) Preferred Dividends, (ii) Series A-1 Priority Return, (iii) Series A Priority Return, (iv) Series B Priority Return, (v) Series B-1 Priority Return, (vi) Series B-2 Priority Return, or (vii) Series B-3 Priority Return remains unpaid unless all such unpaid amounts are paid simultaneously with such distribution.”

“3.9           Withdrawals

No Partner shall be entitled to withdraw any portion of its capital account, except by way of distributions pursuant to Sections 4.3, 8.2, 16, 17 and 18 hereof.”

 

 

  

3

  

4.           Section 4.2 (a)(v) of the Agreement is hereby deleted in its entirety and replaced with the following:

“(v)           fifth, with respect to OP Units other than Series A Preferred Units, pro rata in proportion to the number of OP Units other than Series A Preferred Units, held by each such Partner as of the last day of the period for which such allocation is being made; provided, however, that the profits allocated to any Preferred OP Units, Series A-1 Preferred Units, Series B Preferred Units, Series B-1 Preferred Units, Series B-2 Preferred Units and Series B-3 Preferred Units pursuant to this Section 4.2(b)(v) for any calendar year shall not exceed the amount of Preferred Dividends, Series A-1 Priority Return, Series B Priority Return, Series B-1 Priority Return, Series B-2 Priority Return and Series B-3 Priority Return, respectively, thereon for that calendar year, and any such excess profits remaining after the application of such limitation shall be allocated to the holders of the Common OP Units, pro rata.”

5.           Section 8.2(a) of the Agreement is hereby deleted in its entirety and replaced with the following:

“8.2           Liquidating Distributions; Restoration of Capital Account Deficits

Upon the liquidation of the Partnership or any Partner’s interest in the Partnership, within the meaning of the Allocation Regulations:

(a)           The capital accounts of the holders of the OP Units shall be adjusted to reflect the manner in which any unrealized income, gain, loss and deduction inherent in the Partnership’s property, which has not previously been reflected in the Partners’ capital accounts, would be allocated among the Partners if there were a taxable disposition of such property at fair market value on the date of distribution.  Any resulting increase in the Partners’ capital accounts shall be allocated (i) first to the holders of the Preferred OP Units, Series A-1 Preferred Units and Series A Preferred Units in proportions and amounts sufficient to bring their respective capital account balances up to the amount of the Issue Prices of their respective Preferred OP Units, Series A-1 Preferred Units and Series A Preferred Units plus accrued and unpaid Preferred Dividends, Series A-1 Priority Return or Series A Priority Return, as the case may be, thereon, (ii) second to the holders of the Series B Cumulative Preferred Units in proportions and amounts sufficient to bring their respective capital account balances up to the amount of the Issue Price of the Series B Cumulative Preferred Units plus accrued and unpaid Series B Priority Return, Series B-1 Priority Return, Series B-2 Priority Return and Series B-3 Priority Return, as applicable, thereon, and (iii) third (if any) to the Common OP Units.  Any resulting decrease in the Partners’ capital accounts shall first be allocated (i) first to the holders of the Common OP Units in proportions and amounts sufficient to reduce their respective capital account balances to zero, (ii) second to the holders of Series B Cumulative Preferred Units in proportions and amounts sufficient to reduce their respective capital account balances to zero, (iii) third to the holders of the Preferred OP Units, Series A-1 Preferred Units and Series A Preferred Units in proportions and amounts sufficient to reduce their respective capital account balances to zero, and (iv) fourth (if any) to the General Partner.  Liquidating distributions shall be made in accordance with the positive capital account balances of the Partners, after giving effect to such adjustment and other capital account adjustments for the current year, as provided in the Allocation Regulations.

6.           Section 14.  Section 14 of the Agreement is hereby amended as follows:

(a)           The second sentence of the definition of “OP Units” is hereby deleted in its entirety and replaced with the following: “OP Units consist of Common OP Units, Preferred OP

 

 

  

4

  

        

        Units, Series A-1 Preferred Units, Series A Preferred Units, Series B Preferred Units, Series B-1 Preferred Units, Series B-2 Preferred Units and Series B-3 Preferred Units.”

(b)           The following new definitions are inserted in Section 14 (Definitions) so as to preserve alphabetical order:

“Common Stock Fair Market Value” shall mean, with respect to any Series A-1 Exchange Date, the average closing price of a share of the General Partner’s common stock for the 10 consecutive trading days preceding such Series A-1 Exchange Date on the principal national securities exchange on which the shares of the General Partner’s common stock are listed or admitted to trading or, if not listed or admitted to trading on any national securities exchange, the average of the reported bid and asked prices during such 10 trading day period in the over-the-counter market as furnished by the National Quotation Bureau, Inc., or, if such firm is not then engaged in the business of reporting such prices, as furnished by any member of the National Association of Securities Dealers, Inc. selected by the General Partner or, if the shares of Common Stock or securities are not publicly traded, the Common Stock Fair Market Value for such day shall be the fair market value thereof determined jointly by the General Partner and the holder(s) of Series A-1 Preferred Units that are exchanging such Series A-1 Preferred Units for shares of the General Partner’s common stock; provided, however, that if such parties are unable to reach agreement within a reasonable period of time, the Common Stock Fair Market Value shall be determined in good faith by an independent investment banking firm selected jointly by the General Partner and such holder(s) of Series A-1 Preferred Units or, if that selection cannot be made within five days, by an independent investment banking firm selected by the American Arbitration Association in accordance with its rules.

“Series A-1 Exchange Date” shall mean the date specified in a Series A-1 Exchange Notice on which the holder of Series A-1 Preferred Units proposes to exchange Series Preferred Units for shares of the General Partner’s common stock; provided, however, that the proposed Series A-1 Exchange Date (i) must be a Business Day, and (ii) may not be less than three Business Days, nor more than more than 15 Business Days, after the date such Series A-1 Exchange Notice is delivered.

“Series A-1 Exchange Notice” shall mean a written notice delivered by a holder of Series A-1 Preferred Units to the General Partner of such holder’s election to exchange Series A-1 Preferred Units for shares of the General Partner’s common stock. Each Series A-1 Exchange Notice must specify the number of Series A-1 Preferred Units to be exchanged and the proposed Series A-1 Exchange Date.

“Series A-1 Issuance Date” shall mean June 23, 2011.

“Series A-1 Preferred Partners” shall mean the holders of Series A-1 Preferred Units set forth on Exhibit A hereto, as it may be amended from time to time, and their respective successors and permitted assigns.

“Series A-1 Preferred Units” shall have the meaning set forth therefor in Section 18.2 hereof.

“Series A-1 Priority Return” shall have the meaning set forth therefor in Section 18.1 hereof.

 

 

  

5

  

7.           The following new Section 18 of the Agreement is inserted in the Agreement after Section 17 thereof:

	
  

	
“18.

	
Series A-1 Preferred Units.

Section 18.1                      Definitions. The term “Series A-1 Parity Preferred Units” shall mean the Preferred Units and any other class or series of OP Units of the Partnership now or hereafter authorized, issued or outstanding and expressly designated by the Partnership to rank on parity with the Series A-1 Preferred Units with respect to distributions and rights upon voluntary or involuntary liquidation, winding-up or dissolution of the Partnership.  The term “Series A-1 Priority Return” shall mean an amount equal to the Applicable Rate, multiplied by the stated amount of $100 per Series A-1 Preferred Unit, multiplied by the number of outstanding Series A-1 Preferred Units, cumulative to the extent not distributed for any given distribution period pursuant to Section 4.3 hereof.  The term “Applicable Rate” shall mean: (i) from the date of this Amendment through the first anniversary of the date of this Amendment, 5.1% per annum (determined on the basis of a 365 day year), (ii) from the day immediately after the first anniversary of the date of this Amendment through the second anniversary of the date of this Amendment, 5.1% per annum (determined on the basis of a 365 day year), and (iii) thereafter, 6.0% per annum (determined on the basis of a 365 day year).

Section 18.2                      Designation and Number.  A series of OP Units in the Partnership designated as the “Series A-1 Preferred Units” is hereby established. The number of Series A-1 Preferred Units shall be 455,476. Notwithstanding anything to the contrary in this Agreement, (a) the Series A-1 Preferred Units shall be pari passu with the Preferred Units with respect to distributions and allocations, and (b) the Series A-1 Preferred Units shall be deemed to be “Preferred Units” for the purposes of Sections 4.3 and 17.3 of the Agreement.

Section 18.3                      Distributions.

(a)           Payment of Distributions.

(i)           Subject to the rights of holders of Series A Preferred Units, Parity Preferred Units, Preferred OP Units and Series A-1 Parity Preferred Units as to the payment of distributions pursuant to Sections 4.3, 8.2 and 16.3 of the Agreement, holders of Series A-1 Preferred Units shall be entitled to receive, when, as and if declared by the Partnership acting through the General Partner, out of the Partnership’s available cash, the Series A-1 Priority Return.

(ii)           All distributions shall be cumulative, shall accrue from the original date of issuance and will be payable quarterly (such quarterly periods for purposes of payment and accrual will be the quarterly periods ending on the dates specified in this sentence) in arrears, on March 31, June 30, September 30 and December 31 of each year, (each a "Series A-1 Preferred Unit Distribution Payment Date”).  The amount of the distribution payable for any period will be computed on the basis of a 365-day year and for any period shorter than a full quarterly period for which distributions are computed, the amount of the distribution payable will be computed based on the ratio of the actual number of days elapsed in such period to the actual number of days in such quarterly period.  If any date on which distributions are to be made on the Series A-1 Preferred Units is not a Business Day (as defined in Section 14), then payment of the

 

 

  

6

  

 

 distribution to be made on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay) except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on such date.  Distributions on the Series A-1 Preferred Units will be made to the holders of record of the Series A-1 Preferred Units on the relevant record dates to be fixed by the Partnership acting through the General Partner, which record dates shall in no event exceed fifteen (15) Business Days prior to the relevant Series A-1 Preferred Unit Distribution Payment Date.

(b)           Distributions Cumulative.  Distributions on the Series A-1 Preferred Units will accrue whether or not the terms and provisions of any agreement of the Partnership, including any agreement relating to its indebtedness at any time prohibit the declaration, setting aside for payment or current payment of distributions, whether or not the Partnership has earnings, whether or not there are funds legally available for the payment of such of such distributions and whether or not such distributions are authorized.  Accrued but unpaid distributions on the Series A-1 Preferred Units will accumulate as of the Series A-1 Preferred Unit Distribution Payment Date on which they first become payable.  Distributions on account of arrears for any past distribution periods may be declared and paid at any time, without reference to a regular Series A-1 Preferred Unit Distribution Payment Date to holders of record of the Series A-1 Preferred Units on the record date fixed by the Partnership acting through the General Partner which date shall not exceed fifteen (15) Business Days prior to the payment date.  Accumulated and unpaid distributions will not bear interest.

(c)           Priority as to Distributions.

(i)           So long as any Series A-1 Preferred Units are outstanding, no distribution of cash or other property shall be authorized, declared, paid or set apart for payment on or with respect to any class or series of OP Units of the Partnership ranking junior as to the payment of distributions or rights upon a voluntary or involuntary liquidation, dissolution or winding-up of the Partnership to the Series A-1 Preferred Units (collectively, “Series A-1 Junior Units”), nor shall any cash or other property be set aside for or applied to the purchase, redemption or other acquisition for consideration of any Series A-1 Preferred Units, any Series A-1 Parity Preferred Units or any Series A-1 Junior Units, unless, in each case, all distributions accumulated on all Series A-1 Preferred Units and all classes and series of outstanding Series A-1 Parity Preferred Units have been paid in full.  The foregoing sentence will not prohibit (a) distributions payable solely in OP Units ranking junior to the Series A-1 Preferred Units as to the payment of distributions and rights upon a voluntary or involuntary liquidation, dissolution or winding-up of the Partnership, (b) the conversion of Series A-1 Junior Units or Series A-1 Parity Preferred Units into OP Units of the Partnership ranking junior to the Series A-1 Preferred Units as to distributions and rights upon a voluntary or involuntary liquidation, dissolution or winding-up of the Partnership, or (c) the redemption of OP Units corresponding to any Junior Stock (as defined in the Series A Articles Supplementary) to be purchased by the General Partner pursuant to Article VII of the Charter to preserve the General Partner’s status as a real estate investment trust, provided that such redemption

 

 

  

7

  

                     

             shall be upon the same terms as the corresponding purchase pursuant to Article VII of the Charter.

(ii)           So long as distributions have not been paid in full (or a sum sufficient for such full payment is not irrevocably deposited in trust for immediate payment) upon the Series A-1 Preferred Units, all distributions authorized and declared on the Series A-1 Preferred Units and all classes or series of outstanding Series A-1 Parity Preferred Units shall be authorized and declared so that the amount of distributions authorized and declared per Series A-1 Preferred Unit and such other classes or series of Series A-1 Parity Preferred Units shall in all cases bear to each other the same ratio that accrued distributions per Series A-1 Preferred Unit and such other classes or series of Series A-1 Parity Preferred Units (which shall not include any accumulation in respect of unpaid distributions for prior distribution periods if such class or series of Series A-1 Parity Preferred Units do not have cumulative distribution rights) bear to each other.

(iii)           The Series A-1 Preferred Units and any Series A-1 Parity Preferred Units shall be deemed to be “Junior Units” as defined in Section 16.3(c) hereof, and so long as any Series A Preferred Units or Parity Preferred Units are outstanding, no distribution of cash or other property shall be authorized, declared, paid or set apart for payment on or with respect to the Series A-1 Preferred Units or any Series A-1 Parity Preferred Units, nor shall any cash or other property be set aside for or applied to the purchase, redemption or other acquisition for consideration of any Series A-1 Preferred Units or Series A-1 Parity Preferred Units unless, in each case, all distributions accumulated on all Series A Preferred Units and all classes and series of outstanding Parity Preferred Units have been paid in full.

(d)           Distributions on OP Units held by General Partner.  Notwithstanding anything to the contrary herein, distributions on OP Units held by the General Partner may be made, without preserving the priority of distributions described in Section 18.3(c)(i) and (ii), but only to the extent such distributions are required to preserve the real estate investment trust status of the General Partner.

(e)           No Further Rights.  Holders of Series A-1 Preferred Units shall not be entitled to any distributions, whether payable in cash, other property or otherwise, in excess of the full cumulative distributions described herein.

Section 18.4                      Liquidation Proceeds.

(a)           Notice. Written notice of any voluntary or involuntary liquidation, dissolution or winding-up of the Partnership, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances shall be payable, shall be given by (i) fax and (ii) by first class mail, postage pre-paid, not less than thirty (30) and not more than sixty (60) days prior to the payment date stated therein, to each record holder of the Series A-1 Preferred Units at the respective addresses of such holders as the same shall appear on the transfer records of the Partnership.

(b)           No Further Rights.  After payment of the full amount of the liquidating distributions to which they are entitled pursuant to Section 8.2 hereof, the holders of

 

 

  

8

  

 

 Series A-1 Preferred Units will have no right or claim to any of the remaining assets of the Partnership.

(c)           Consolidation, Merger or Certain Other Transactions.  The voluntary sale, conveyance, lease, exchange or transfer (for cash, shares of stock, securities or other consideration) of all or substantially all of the property or assets of the General Partner to, or the consolidation or merger or other business combination of the Partnership with or into, any corporation, trust, partnership, limited liability company or other entity (or of any corporation, trust, partnership, limited liability company or other entity with or into the Partnership) shall not be deemed to constitute a liquidation, dissolution or winding-up of the Partnership.

Section 18.5                      Voting Rights.  Holders of the Series A-1 Preferred Units will not have any voting rights or right to consent to any matter requiring the consent or approval of the Limited Partners.

Section 18.6                      Transfer Restrictions.  The Series A-1 Preferred Units shall be subject to the provisions of Section 9 of the Agreement.

Section 18.7                      Exchange Rights.

(a)           Series A-1 Preferred Units.  The holders of Series A-1 Preferred Units shall be entitled to exchange Series A-1 Preferred Units for shares of the General Partner’s common stock, at their option, on the following terms and subject to the following conditions:

(i)           At any time after the date of this Amendment, each holder of Series A-1 Preferred Units at its option may exchange each of its Series A-1 Preferred Units for that number of shares of the General Partner’s common stock equal to the quotient obtained by dividing $100.00 by $41.00; provided, however, that no Series A-1 Preferred Units may be exchanged on any proposed Series A-1 Exchange Date pursuant to this Section 18.7 unless at least 1,000 Series A-1 Preferred Units, in the aggregate, are exchanged by one or more holders thereof on such Series A-1 Exchange Date pursuant to Series A-1 Exchange Notices. Each holder of Series A-1 Preferred Units that has delivered a Series A-1 Exchange Notice to the General Partner may rescind such Series A-1 Exchange Notice by delivering written notice of such rescission to the General Partner prior to the Series A-1 Exchange Date specified in the applicable Series A-1 Exchange Notice.

(ii)           The exchange rate is subject to adjustment upon subdivisions, stock splits, stock dividends, combinations and reclassification of the common stock of the General Partner.

(iii)           In case the General Partner shall be a party to any transaction (including, without limitation, a merger, consolidation, statutory share exchange, tender offer for all or substantially all of the General Partner's capital stock or sale of all or substantially all of the General Partner's assets), in each case as a result of which the General Partner’s common stock will be converted into the right to receive shares of capital stock, other securities or other property (including cash or any combination thereof), each Series A-1 Preferred Unit will thereafter be convertible or exchangeable into the kind and amount of shares of capital stock and other securities and property receivable (including cash or any combination thereof) upon the consummation of such transaction by a holder of that number of shares of the General Partner’s common stock or fraction thereof into which

 

 

  

9

  

 

 one Series A-1 Preferred Unit was convertible or exchangeable immediately prior to such transaction.

(iv)           Limitations on Exchange.  Notwithstanding anything to the contrary in this Section 18.7(a):

(A)           Upon tender of any Series A-1 Preferred Units to the General Partner pursuant to that Section, the General Partner may issue cash in lieu of stock to the extent necessary to prevent the recipient from violating the Ownership Limitations of Section 2 of Article VII of the Charter, or corresponding provisions of any amendment or restatement thereof; and

(B)           A holder of Series A-1 Preferred Units will not have the right to exchange Series A-1 Preferred Units for the General Partner’s common stock if (1) in the opinion of counsel for the General Partner, the General Partner would no longer qualify or its status would be seriously compromised as a real estate investment trust under the Internal Revenue Code as a result of such exchange; or (2) such exchange would, in the opinion of counsel for the General Partner, constitute or be likely to constitute a violation of applicable securities laws.

(C)           The General Partner shall not be required to issue fractions of shares of common stock upon exchange of Series A-1 Preferred Units. If any fraction of a share of Common Stock would be issuable upon exchange of Series A-1 Preferred Units, the General Partner shall, in lieu of delivering such fraction of a share of common stock, make a cash payment to the exchanging holder of Series A-1 Preferred Units in an amount equal to the same fraction of the Common Stock Fair Market Value determined as of the Series A-1 Exchange Date.

.

(v)           Reservation of Common Stock.  The General Partner shall at all times reserve and keep available a sufficient number of authorized but unissued shares of common stock to permit the exchange of all of the outstanding Series A-1 Preferred Units pursuant to this Section 18.7.

(b)           Procedure for Exchange.

(i)           Any exchange described in Section 18.7(a) above shall be exercised pursuant to a delivery of a Series A-1 Exchange Notice to the General Partner by the holder who is exercising such exchange right, by (A) fax and (B) by certified mail postage prepaid.  The Series A-1 Exchange Notice and certificates, if any, representing such Series A-1 Preferred Unit to be exchanged shall be delivered to the office of the General Partner maintained for such purpose.  Currently, such office is:

Sun Communities, Inc.

27777 Franklin Road, Suite 200

Southfield, Michigan 48034

Any exchange hereunder shall be effective as of the close of business on the Series A-1 Exchange Date.  The holders of the exchanged Series A-1 Preferred Units shall be deemed to have surrendered the same to the General Partner, and the General Partner

 

 

  

10

  

 

 shall be deemed to have issued shares of common stock of the General Partner at the close of business on the Series A-1 Exchange Date.

(d)           Payment of Series A-1  Priority Return.  On the Series A-1 Preferred Unit Distribution Payment Date next following each the Series A-1 Exchange Date, the holders of Series A-1 Preferred Units, which exchanged on such date shall be entitled to Series A-1 Priority Return in an amount equal to a prorated portion of the Series A-1 Priority Return based on the number of days elapsed from the prior Series A-1 Preferred Unit Distribution Payment Date through, but not including, the Series A-1 Exchange Date.

	
Section 18.8

	
Restrictions Included in Contribution Agreements.  Each Series A-1 Preferred Partner acknowledges and agrees that, notwithstanding anything to the contrary in this Amendment or the Agreement, (a) the transfer or exchange of a portion of the Series A-1 Preferred Units are restricted by the provisions of the Contribution Agreements, and (b) such Series A-1 Preferred Partner shall not transfer or exchange any Series A-1 Preferred Units in violation of any such restrictive provisions.

Section 18.9                      No Sinking Fund.  No sinking fund shall be established for the retirement or redemption of Series B Cumulative Preferred Units.

8.           Governing Law.  This Amendment shall be interpreted and enforced according to the laws of the State of Michigan.

9.           Full Force and Effect.  Except as amended by the provisions hereof, the Agreement, as previously amended, shall remain in full force and effect in accordance with its terms and is hereby ratified, confirmed and reaffirmed by the undersigned for all purposes and in all respects.

10.           Successors/Assigns.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto, their respective legal representatives, successors and assigns.

11.           Counterparts.  This Amendment may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart.  Reproductions (photographic, facsimile or otherwise) of this Amendment may be made and relied upon to the same extent as though such reproduction was an original.

[The remainder of this page intentionally left blank]

 

 

  

11

  

 

In witness whereof, the undersigned have executed this Amendment as of the day and year first above written.

GENERAL PARTNER:

Sun Communities, Inc., a Maryland corporation

By:  /s/ Jonathan M. Colman                                               

                            Jonathan M. Colman, Executive Vice President

SERIES A-1 PREFERRED PARTNERS:

Apple Carr Village MHP Holding Company #2, LLC

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

 

Brookside Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                         

Cider Mill Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                          

  

12

  

Continuation of Signature Page to 275th Amendment

Country Hills Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                      

Country Meadows Village MHP Holding Company #2, LLC

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                           

Dutton Mill Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                         

Hickory Hills Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                           

  

13

  

 

Continuation of Signature Page to 275th Amendment

 

Hidden Ridge RV Park Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                        

Holiday West Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

                                                          

Leisure Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                        

Oak Island Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                        

  

14

  

Continuation of Signature Page to 275th Amendment

Pinebrook Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                      

Southwood Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

                                                            

Sycamore Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

 

Tamarac Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                      

  

15

  

Warren Dunes Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

                                                        

Waverly Shores Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                           

Windsor Woods Village MHP Holding Company #2, LLC

 

By: /s/ Wilbur A. Lettinga                                                                                                            

Name:   Wilbur A. Lettinga                                                                                                            

Title:  Manager                                                                                                                                       

 

                                                        

[Signature page to 275th Amendment]

 

 

  

16

  

Continuation of Signature Page to 275th Amendment

                        

 /s/ Wilbur A. Lettinga                                                                      

Wilbur A. Lettinga

            

/s/ William B. Lettinga                                                                    

William B. Lettinga

/s/ Michael Lettinga                                                                      

Michael Lettinga

 

  

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}]]