Document:

Exhibit 10.7

 

iSTAR
ACQUISITION CORP.

 

PRIVATE
PLACEMENT UNIT PURCHASE AGREEMENT

 

PRIVATE
PLACEMENT UNIT PURCHASE AGREEMENT (this “Agreement”) made as of this 

23rd day of January, 2008, by and between iStar Acquisition Corp., a Delaware
corporation (the “Company”), and iStar Financial Inc. (the “Purchaser”).

 

WHEREAS,
the Company has filed a registration statement on Form S-1 (the “Registration
Statement”) under the Securities Act of 1933, as amended (the “Securities
Act”) with the Securities and Exchange Commission (“SEC”) in
connection with a proposed initial public offering (the “IPO”) of up to
57,500,000 units, each unit consisting of one share of common stock of the
Company, par value $0.0001 per share (the “Common Stock”), and one
warrant to purchase one share of Common Stock at an exercise price of $7.00;
and

 

WHEREAS,
immediately prior to the consummation of the IPO, the Company desires to issue
and sell, and the Purchaser desires to purchase, upon the terms and conditions
set forth in this Agreement, 2,500,000 additional units (the “Private
Placement Units”) at $10.00 per unit, each unit consisting of one share of
Common Stock (the “Private Placement Common Stock”) and one warrant to
purchase one share of Common Stock at an exercise price of $7.00 per share (the
“Private Placement Warrants” and collectively with the Private Placement
Units and the Private Placement Common Stock, the “Private Placement
Securities”), for an aggregate purchase price of $25,000,000 (the “Purchase
Price”);

 

NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto do hereby agree as follows:

 

1.             Sale and Purchase of Private
Placement Units.  Subject to and immediately prior to the
consummation of the IPO, the Company shall issue and sell to the Purchaser, and
the Purchaser shall purchase from the Company, the Private Placement Units for
the Purchase Price.

 

2.             Closing.  The
closing of the purchase and sale of the Private Placement Units hereunder,
including payment for and delivery of the Private Placement Units, will take
place at the offices of the Company or the Company’s legal counsel immediately
prior to, and shall be subject to, the completion of the IPO. At the closing,
the Company shall deliver to the Purchaser one or more certificates evidencing
the Private Placement Units, substantially in the form attached hereto as
EXHIBIT A, registered in the Purchaser’s name, upon the payment of the Purchase
Price in immediately available funds by wire transfer to an account designated
by the Company. The Company shall deposit the Purchase Price into the trust
account described in the Registration Statement.

 

3.             Lock-Up Agreement.

 

3.1           At or prior to the closing of the
IPO, the Purchaser shall enter into a lock-up agreement with the underwriter of
the IPO, Banc of America Securities LLC, pursuant to which the Purchaser shall
agree not to sell the Private Placement Securities (and any shares of Common
Stock issuable upon the exercise of the Private Placement Warrants) until after
the consummation of the Company’s initial Business Combination (the “Lock-Up
Period”), except for certain permitted transfers. For purposes of this
Agreement, “Business Combination” shall have the meaning given to it in the
Amended and Restated Certificate of Incorporation of the Company, as the same
may be amended from time to time.

 

 

4.             Representations and Warranties
of the Company.  In connection with the issuance and sale of the
Private Placement Units, the Company hereby represents and warrants to the
Purchaser the following:

 

4.1           The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware and the Company has all necessary corporate power
and authority to enter into this Agreement and to consummate the transactions
contemplated hereby.

 

4.2           All corporate action
necessary to be taken by the Company to authorize the execution, delivery and
performance of this Agreement and all other agreements and instruments
delivered by the Company in connection with the transactions contemplated
hereby has been duly and validly taken and this Agreement has been duly
executed and delivered by the Company. This Agreement constitutes the valid,
binding and enforceable obligation of the Company, enforceable in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or
similar laws of general application now or hereafter in effect affecting the
rights and remedies of creditors and by general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in
equity). The issuance and sale by the Company of the Private Placement Units
does not conflict with the amended and restated certificate of incorporation or
by-laws of the Company or any material contract by which the Company or its
property is bound, or any federal or state laws or regulations or decree,
ruling or judgment of any United States or state court applicable to the
Company or its property.

 

4.3           Upon issuance in
accordance with, and payment pursuant to, the terms hereof, the Purchaser will
have good title to the Private Placement Securities and the shares of Common
Stock underlying the Private Placement Warrants free and clear of all liens,
claims and encumbrances of any kind, other than transfer restrictions hereunder
and under other agreements contemplated hereby.

 

5.             Representations and Warranties
of the Purchaser.  The Purchaser hereby represents and warrants to
the Company that:

 

5.1           The Purchaser is an “accredited
investor” as that term is defined in Rule 501 of Regulation D
promulgated under the Securities Act.

 

5.2           The Units are being acquired for the
Purchaser’s own account, only for investment purposes and not with a view to,
or for resale in connection with, any public distribution or public offering
thereof within the meaning of the Securities Act.

 

5.3           The Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Maryland. The Purchaser has all necessary corporate power and authority to
enter into this Agreement and to consummate the transactions contemplated
hereby.

 

5.4           All corporate action necessary to be
taken by the Purchaser to authorize the execution, delivery and performance of
this Agreement and all other agreements and instruments delivered by the
Purchaser in connection with the transactions contemplated hereby has been duly
and validly taken and this Agreement has been duly executed and delivered by
the Purchaser. This Agreement constitutes the valid, binding and enforceable
obligation of the Purchaser, enforceable in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer or similar laws of general
application now or hereafter in effect affecting the rights and remedies of
creditors and by general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity). The purchase by the
Purchaser of the Private Placement Units does not conflict with the
organizational documents of the Purchaser or with any 

 

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material contract by which the
Purchaser or its property is bound, or any laws or regulations or decree,
ruling or judgment of any court applicable to the Purchaser or its property.

 

6.             Registration Rights Agreement.  At
the time of the completion of the IPO, the Company and the Purchaser shall
enter into a registration rights agreement pursuant to which the Company will
grant certain registration rights to the Purchaser relating to the Private
Placement Securities and the shares of Common Stock underlying the Private
Placement Warrants.

 

7.             Successors and Assigns.  Except
as otherwise expressly provided herein, all covenants and agreements contained
in this Agreement by or on behalf of any of the parties hereto shall bind and
inure to the benefit of the respective successors of the parties hereto whether
so expressed or not. Notwithstanding the foregoing or anything to the contrary
herein, the parties may not assign this Agreement or their obligations
hereunder.

 

8.             Amendments.  This
Agreement may not be amended, modified or waived, in whole or in part, except by
an agreement in writing signed by each of the parties hereto.

 

9.             Waiver of Claims;
Indemnification.  The Purchaser hereby waives any and all rights
to assert any present or future claims, including any right of rescission,
against the Company or Banc of America Securities LLC with respect to the
Purchaser’s purchase of the Private Placement Securities, and the Purchaser
agrees to indemnify and hold the Company and Banc of America Securities LLC
harmless from all losses, damages or expenses that relate to claims or
proceedings brought against the Company or Banc of America Securities LLC by
any of the Purchaser’s transferees, heirs, successors, assigns or any
subsequent holders of the Private Placement Securities or any shares of Common
Stock underlying the Private Placement Warrants.

 

10.           Counterparts; Facsimile.  This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together
shall constitute one and the same instrument. This Agreement or any counterpart
may be executed via facsimile transmission, and any such executed facsimile
copy shall be treated as an original.

 

11.           Governing Law.  This
Agreement shall for all purposes be deemed to be made under and shall be
construed in accordance with the laws of the State of New York. The parties
hereby agree that any action, proceeding or claim against it arising out of or
relating in any way to this Agreement shall be brought and enforced in the
courts of the State of New York or the United States District Court for the
Southern District of New York, and irrevocably submit to such jurisdiction,
which jurisdiction shall be exclusive. The parties hereby waive any objection
to such exclusive jurisdiction and agree not to plead or claim that such courts
represent an inconvenient forum.

 

12.           Third Party Beneficiary. This
Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other person; provided that Banc
of America Securities LLC shall be a third party beneficiary of this Agreement.

 

 

[Remainder of Page Intentionally Left
Blank]

 

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IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  iSTAR ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay
  Nydick

  
	
   

  	
   

  	
  Name: Jay
  Nydick

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer and President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  iSTAR FINANCIAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay
  Sugarman

  
	
   

  	
   

  	
  Name:   Jay
  Sugarman

  
	
   

  	
   

  	
  Title:  Chairman
  and Chief Executive Officer

  
				

 

4Exhibit 10.8

 

iSTAR
ACQUISITION CORP.

 

FORM OF
CO-INVESTMENT UNIT SUBSCRIPTION AGREEMENT

 

THIS CO-INVESTMENT UNIT SUBSCRIPTION AGREEMENT (this
“Agreement”), dated as of     ,
is entered into by and between iStar Acquisition Corp.,
a Delaware corporation (the “Company”), and iStar Financial Inc., a Maryland corporation (the “Purchaser”).

 

WHEREAS, the
Company has filed a registration statement on Form S-1 (the “Registration Statement”) with the Securities and Exchange
Commission (the “SEC”) for the initial public
offering of 50,000,000 units (the “Initial Public Offering”),
each unit consisting of one share of the common stock, par value $0.0001 per
share, of the Company (“Common Stock”),
and one warrant to purchase one share of Common Stock at an exercise price of
$7.00 per share;

 

WHEREAS, in
connection with the Initial Public Offering, the Purchaser has entered into a
letter agreement dated as of the date hereof with the Company and Banc of
America Securities LLC pursuant to which the Purchaser has agreed to place
limit orders for up to $25,000,000 shares of Common Stock (the “Aftermarket Shares”) for a period commencing two business
days after the Company files a preliminary proxy statement relating to its
Business Combination (as defined in the Amended and Restated Certificate of
Incorporation of the Company, as may be amended and restated from time to time
(the “Certificate of Incorporation”)) and
ending on the business day immediately preceding the record date for the
meeting of stockholders at which the Business Combination is to be approved;

 

WHEREAS, the
Company desires to commit to issue and sell, and the Purchaser desires to
purchase and acquire, units (the “Co-Investment Units”)
at a purchase price of $10.00 per Co-Investment Unit to the extent that the
Purchaser does not purchase in full $25,000,000 of the Aftermarket Shares, on
the terms and conditions hereinafter set forth; and

 

NOW THEREFORE,
in consideration of the mutual promises contained in this Agreement and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties to this Agreement hereby agree as follows:

 

Section 1.               Commitment
to Purchase Co-Investment Units.  Subject
to and immediately prior to the consummation of a Business Combination, the
Purchaser hereby agrees to purchase from the Company, and the Company hereby
agrees to issue and sell to the Purchaser, the Applicable Number of Co-Investment
Units.  The “Applicable
Number” means a number (rounded down to the nearest whole number) equal
to (x) the difference between $25,000,000 and the aggregate purchase price
paid by the Purchaser for the Aftermarket Shares divided by (y) 10.  Each Co-Investment Unit shall consist of one
share of Common Stock (the “Co-Investment Common Stock”)
and one warrant exercisable for one share of Common Stock (the “Co-Investment Warrant,” and collectively with the
Co-Investment Unit and the Co-Investment Common Stock, the “Co-Investment Securities”). 
The terms of the Co-Investment Warrants are set forth in the warrant
agreement dated as of the date hereof (the “Warrant
Agreement”) between the Company and Continental Stock Transfer &
Trust Company, as warrant agent.  With
the exception of the transfer restrictions set forth in Section 4 hereof and
in the Warrant Agreement, the Co-Investment Units shall be identical to the
units sold in the Initial Public Offering. 
The closing of the purchase and sale of the Co-Investment Units
hereunder, including payment for and delivery of the Co-Investment Units, shall
occur at the offices of the Company immediately prior to, and subject to
consummation of, the Business Combination.

 

Section 2.               Payment of Purchase Price.  The purchase price for the Co-Investment
Units shall be tendered in full at the closing by one or a combination of the
following means: (i) wiring of 

 

 

immediately available United States funds to an account for the benefit
of the Company, pursuant to wire instructions provided by the Company in
advance of the closing; or (ii) by delivery of a cashiers check to the
Company of immediately available United States funds.

 

Section 3.               Terms
of the Co-Investment Units, Co-Investment Common Stock and Co-Investment
Warrants.

 

(i)            Co-Investment
Units.  Each Co-Investment Unit shall
have the terms set forth in the Co-Investment Unit Certificate attached as
EXHIBIT A hereto.

 

(ii)           Co-Investment
Common Stock.  The Co-Investment
Common Stock shall have the terms set forth in the Co-Investment Common Stock
Certificate attached as EXHIBIT B hereto.

 

(iii)          Co-Investment
Warrants.  The Co-Investment Warrants
shall have the terms set forth in the Warrant Agreement, attached as EXHIBIT C
hereto, and the Co-Investment Warrant Certificate, which is attached as Exhibit C
to the Warrant Agreement.

 

Section 4.               Transfer
Restrictions.

 

                A.            The
Purchaser shall not (i) sell, offer to sell, contract or agree to sell,
hypothecate, pledge, grant any option to purchase or otherwise dispose of or
agree to dispose of, directly or indirectly, or, except as provided in the
Registration Rights Agreement (as defined below), file (or participate in the
filing of) a registration statement with the SEC in respect of, or establish or
increase a put equivalent position or liquidate or decrease a call equivalent
position within the meaning of Section 16 of the Securities Exchange Act
of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder with respect to, any Co-Investment Securities, (b) enter into
any swap or other arrangement that transfers to another, in whole or in part,
any of the economic consequences of ownership of Co-Investment Securities,
whether any such transaction is to be settled by delivery of Co-Investment
Securities, in cash or otherwise, or (c) publicly announce an intention to
effect any transaction specified in clause (a) or (b) until one
year after the consummation of an initial Business Combination (the “Lock-Up
Period”).  Notwithstanding the foregoing,
the Purchaser may transfer Co-Investment Securities during the Lock-Up Period (i) to
a member of the Purchaser’s immediate family, (ii) to an affiliate of the
Purchaser, (iii) to a charitable organization, (iv) to a trust, the
beneficiary of which is a member of the Purchaser’s immediate family, (v) to
any individual or entity by virtue of the laws of descent and distribution upon
death or dissolution of the Purchaser, (vi) to officers or directors of
the Company, (vii) to current and former officers, directors and employees
of the Purchaser, (viii) any individual pursuant to a qualified domestic
relations order, or (ix) to a corporation, partnership, limited liability
company or other organization, in the event of a merger, capital stock
exchange, stock purchase, asset acquisition or other similar transaction which
results in all the Company’s stockholders having the right to exchange their
shares of Common Stock for cash, securities or other property subsequent to the
Company’s consummating a Business Combination (as such term is defined in the
Amended and Restated Certificate of Incorporation of the Company); provided, however, that
the permissive transfers pursuant to clauses (i) — (viii) may be
implemented only upon the respective transferee’s written agreement to be bound
by the terms and conditions of this Agreement.

 

                B.            If
(i) during the last 17 days of the Lock-Up Period, the Company issues
material news or a material event relating to the Company occurs or (ii) before
the expiration of the Lock-Up period, the Company announces that material news
or a material event relating to the Company will occur during the 16-day period
beginning on the last day of the Lock-Up Period, said Lock-Up Period will be
extended for up to 18 days beginning on the issuance of the material news
or the occurrence of the material event.

 

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                C.            The
Purchaser agrees that after the Lock-Up Period has elapsed, the Co-Investment
Securities shall only be transferable or saleable pursuant to a sale registered
under the Securities Act of 1933, as amended (the “Securities
Act”), or pursuant to an available exemption from registration,
other than Regulations S of the Securities Act.

 

Section 5.               Restrictive
Legends.  The certificates evidencing
the Co-Investment Units and the Co-Investment Common Stock will include the
legend set forth on EXHIBITS A and B hereto, respectively, which the
Purchaser has read and understood.  The
Co-Investment Warrants and shares of Common Stock issued upon exercise of the
Co-Investment Warrants will include the legend set forth in EXHIBIT C to
the Warrant Agreement in the case of the Warrants and in the Warrant Agreement
in the case of the Common Stock, which the Purchaser has read and understood.

 

Section 6.               Registration
Rights.  In connection with the
closing of the Initial Public Offering, the Company and the Purchaser shall
enter into an agreement (the “Registration Rights
Agreement”) granting the Purchaser registration rights with respect
to any Co-Investment Securities (including the Common Stock issuable upon
exercise of the Warrants).

 

Section 7.               Representations and Warranties of the Company.

 

In connection with the issuance and sale of
the Co-Investment Units, the Company hereby represents and warrants to the
Purchaser the following:

 

A.            Organization and
Corporate Power.  The Company is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware.  The
Company possesses all requisite corporate power and authority necessary to
carry out the transactions contemplated by this Agreement and the Warrant
Agreement.

 

B.            Authorization;
No Breach.

 

(i)            Due
Authorization.  The execution,
delivery and performance of this Agreement and the Warrant Agreement have been
duly authorized by the Company.  This
Agreement constitutes the valid and binding obligation of the Company,
enforceable in accordance with its terms. 
The Warrant Agreement, and upon issuance in accordance with, and payment
pursuant to, the terms of the Warrant Agreement and this Agreement, the Co-Investment
Warrants, constitute valid and binding obligations of the Company, enforceable
in accordance with their respective terms as of the Closing Date.

 

(ii)           Conflicts.  The execution and delivery by the Company of
this Agreement, the Warrant Agreement and the sale and issuance of each of the
Co-Investment Securities and the fulfillment of and compliance with the
respective terms hereof and thereof by the Company, do not and will not as of
the Closing Date (i) conflict with or result in a breach of the terms,
conditions or provisions of, (ii) constitute a default under, (iii) result
in the creation of any lien, security interest, charge or encumbrance upon the
Company’s capital stock or assets, (iv) result in a violation of, or (v) require
any authorization, consent, approval, exemption or other action by or notice or
declaration to, or filing with, any court or administrative or governmental body
or agency pursuant to, the organizational documents of the Company, as amended,
or any material law, statute, rule or regulation to which the Company is
subject, or any agreement, order, judgment or decree to which the Company is
subject, except for any filings required after the date hereof under federal or
state securities laws.

 

C.            Title to Co-Investment
Securities.  Upon issuance in
accordance with, and payment pursuant to, the terms hereof and the Warrant
Agreement, as the case may be, each of the Co-Investment Securities will be
duly and validly issued, fully paid and nonassessable.  Upon issuance in accordance 

 

3

 

with, and
payment pursuant to, the terms hereof and the Warrant Agreement, as the case
may be, the Purchaser will have or receive good title to the Co-Investment Securities,
free and clear of all liens, claims and encumbrances of any kind, other than (a) transfer
restrictions hereunder and under the other agreements contemplated hereby, (b) transfer
restrictions under federal and state securities laws, and (c) liens,
claims or encumbrances imposed due to the actions of the Purchaser.

 

D.            Governmental
Consents.  No permit, consent,
approval or authorization of, or declaration to or filing with, any
governmental authority is required in connection with the execution, delivery
and performance by the Company of this Agreement or the Warrant Agreement, or
the consummation by the Company of any other transactions contemplated hereby.

 

Section 8.               Representations and Warranties of the Purchaser.

 

In connection with the purchase of the
Co-Investment Units, the Purchaser hereby represents and warrants to the
Company the following:

 

A.            Capacity and
State Law Compliance.  The Purchaser
will engage in the transactions contemplated by this Agreement within a state
in which the offer and sale of the Co-Investment Securities is permitted under
applicable securities laws.

 

B.            Authorization;
No Breach.

 

(i)            This Agreement
constitutes a valid and binding obligation of the Purchaser, enforceable in
accordance with its terms.

 

(ii)           The execution and
delivery by the Purchaser of this Agreement and the fulfillment of and
compliance with the respective terms hereof by the Purchaser does not conflict
with or result in a breach of the terms, conditions or provisions of the
organizational documents of the Purchaser or any other agreement, instrument,
order, judgment or decree to which the Purchaser is subject.

 

C.            Investment
Representations.

 

(i)            The Purchaser
understands that no Co-Investment Warrants will be exercisable unless at the
time of exercise (a) a registration statement relating to the shares of
Common Stock issuable upon exercise of the Co-Investment Warrants is effective,
(b) a prospectus relating to the shares of Common Stock issuable upon
exercise of the Co-Investment Warrants is available for use, and (c) the
Common Stock has been registered or qualified or deemed to be exempt under the
securities laws of the state of residence of the holder of the Co-Investment
Warrants.

 

(ii)           The Purchaser
understands that the Co-Investment Securities will be offered and sold in
reliance on specific exemptions from the registration requirements of the
United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Purchaser’s compliance with, the
representations and warranties of the Purchaser set forth herein in order to
determine the availability of such exemptions and the eligibility of the
Purchaser to acquire such Co-Investment Securities.

 

(iii)          The Purchaser did
not decide to enter into this Agreement as a result of any general solicitation
or general advertising within the meaning of Rule 502(c) under the
Securities Act.

 

(iv)          The Purchaser
understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or
endorsement of 

 

4

 

the Co-Investment
Securities or the fairness or suitability of the investment in the Co-Investment
Securities by the Purchaser nor have such authorities passed upon or endorsed
the merits of the offering of the Co-Investment Securities.

 

(v)           The Purchaser
understands that:  (a) the Co-Investment
Securities have not been and are not being registered under the Securities Act
or any state securities laws, and may not be offered for sale, sold, assigned
or transferred unless (A) subsequently registered thereunder or (B) sold
in reliance on an exemption therefrom; and (b) except as specifically set
forth in the Registration Rights Agreement, neither the Company nor any other
person is under any obligation to register the Co-Investment Securities under
the Securities Act or any state securities laws or to comply with the terms and
conditions of any exemption thereunder. 
In this regard, the Purchaser understands that the SEC has taken the
position that promoters or affiliates of a blank check company and their
transferees, both before and after a Business Combination, are deemed to be “underwriters”
under the Securities Act when reselling the securities of a blank check
company.  Based on that position, Rule 144
adopted pursuant to the Securities Act would not be available for resale
transactions of the Co-Investment Securities despite technical compliance with
the requirements of such Rule, and the Co-Investment Securities can be resold
only through a registered offering or in reliance upon another exemption from
the registration requirements of the Securities Act.  The Purchaser is able to bear the economic
risk of its investment in the Co-Investment Securities for an indefinite period
of time.

 

(vi)          The Purchaser is an “accredited
investor” as that term is defined in Rule 501 of Regulation D promulgated
by the SEC under the Securities Act.  The
Purchaser has such knowledge and expertise in financial and business matters,
knows of the high degree of risk associated with investments generally and particularly
investments in the securities of companies in the development stage such as the
Company, is capable of evaluating the merits and risks of an investment in the
Co-Investment Securities and is able to bear the economic risk of an investment
in the Co-Investment Securities in the amount contemplated hereunder.  The Purchaser can afford a complete loss of
its investment in the Co-Investment Securities.  The
Purchaser is purchasing the Co-Investment Securities for its own account and
not with a view to, or for resale in connection with, any public distribution
or public offering thereof within the meaning of the Securities Act.

 

Section 9.               Miscellaneous.

 

A.            Further
Assurances.

 

The parties hereto shall execute and deliver
such additional documents and take such additional actions as any party
reasonably may deem to be practical and necessary in order to consummate the
transactions contemplated by this Agreement.

 

(i)            By
accepting the Co-Investment Securities, the Purchaser agrees, prior to any
transfer of the Co-Investment Securities, to give written notice to the Company
expressing its desire to effect such transfer and describing briefly the
proposed transfer.  Upon receiving such
notice, the Company shall present copies thereof to its counsel and the
Purchaser agrees not to make any disposition of all or any portion of the Co-Investment
Securities unless and until:

 

(a)           there is then in effect a
registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with such registration
statement, in which case the legends set forth above with respect to the Co-Investment
Securities sold pursuant to such registration statement shall be removed; or

 

5

 

(b)           if reasonably requested by the
Company, (A) the Purchaser shall have furnished the Company with an
opinion of counsel, reasonably satisfactory to the Company, that such
disposition will not require registration of such Co-Investment Securities under
the Securities Act, (B) the Company shall have received customary
representations and warranties regarding the transferee that are reasonably
satisfactory to the Company signed by the proposed transferee and (C) the
Company shall have received an agreement by such transferee to the restrictions
contained in the legends referred to in Section 5 hereof.

 

Notwithstanding
the foregoing, the Purchaser also understands and acknowledges that the
transfer of the Co-Investment Securities and exercise of the Co-Investment
Warrants are subject to the specific conditions to such transfer or exercise as
outlined herein and in the Warrant Agreement as to which the Purchaser
specifically assents by its execution hereof.

 

(ii)           The Company may,
from time to time, make stop transfer notations in its records and deliver stop
transfer instructions to its transfer agent to the extent its counsel considers
it necessary to ensure compliance with federal and state securities laws and
the transfer restrictions contained elsewhere in this Agreement and the Warrant
Agreement.

 

B.            Successors and
Assigns.  Except as otherwise
expressly provided herein, all covenants and agreements contained in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of the respective successors of the parties hereto whether so
expressed or not.  Notwithstanding the
foregoing or anything to the contrary herein, the parties may not assign this
Agreement or their obligations hereunder.

 

C.            Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
prohibited by or invalid under applicable law, such provision shall be ineffective
only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

 

D.            Counterparts.  This Agreement may be executed simultaneously
in two or more counterparts, none of which need contain the signatures of more
than one party, but all such counterparts taken together shall constitute one
and the same agreement.

 

E.             Descriptive
Headings; Interpretation.  The
descriptive headings of this Agreement are inserted for convenience only and do
not constitute a substantive part of this Agreement.  The use of the word “including” in this
Agreement shall be by way of example rather than by limitation.

 

F.             Governing Law.  This Agreement shall for all purposes be
deemed to be made under and shall be construed in accordance with the laws of
the State of New York.  The parties
hereby agree that any action, proceeding or claim against it arising out of or
relating in any way to this Agreement shall be brought and enforced in the
United States District Court for the Southern District of New York or in a New
York State Court in the County of New York, and irrevocably submit to such
jurisdiction, which jurisdiction shall be exclusive.  The parties hereby waive any objection to
such exclusive jurisdiction and agree not to plead or claim that such courts
represent an inconvenient forum.

 

6

 

G.            Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given when delivered
personally to the recipient, sent to the recipient by reputable overnight
courier service (charges prepaid) or mailed to the recipient by certified or
registered mail, return receipt requested and postage prepaid.  Such notices, demands and other
communications shall be sent:

 

	
  If to the
  Company:

  	
  iStar Acquisition Corp.

  1114 Avenue of the Americas

  39th Floor

  New York, New York  10036

  Tel. No.:  (212) 930-9400

  Attention: Chief Executive Officer

  
	
   

  	
   

  
	
  If to the
  Purchaser:

  	
  iStar Financial Inc.

  1114 Avenue of the Americas

  New York, New York  10036

  Tel. No.:  (212) 930-9400

  Attention: General Counsel

  
	
   

  	
   

  
	
  In each
  case, with a copy to:

  	
  Clifford Chance US LLP

  31 West 52nd Street

  New York, NY  10019

  Tel. No.:  (212) 878-8000

  Fax No.:  (212) 878-8375

  Attention: Kathleen Werner

  

 

or to such
other address or to the attention of such other person as the recipient party
has specified by prior written notice to the sending party.

 

H.            No Strict
Construction.  The parties hereto
have participated jointly in the negotiation and drafting of this
Agreement.  In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement.

 

I.              Costs and
Expenses.  Each party shall bear its
own costs and expenses in connection with the preparation of this Agreement and
the transaction contemplated hereby, and neither party shall be obligated to
reimburse the other party for any expenses incurred in connection with the
performance of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

7

 

IN WITNESS
WHEREOF, the parties hereto have executed this Co-Investment Unit Subscription
Agreement on the date first written above.

 

	
   

  	
  iSTAR ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jay S. Nydick

  
	
   

  	
  Title:

  	
  Chief Executive Officer and President

  

 

 

	
   

  	
  iSTAR FINANCIAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jay Sugarman

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

8

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