Document:

EX-10.1

 Exhibit 10.1 

AMENDMENT NO. 1 TO CREDIT AGREEMENT 

This AMENDMENT NO. 1 TO CREDIT AGREEMENT (this “Amendment”) is made as of July 11, 2014 among Baxter International Inc.,
a Delaware corporation (the “Borrower”), JPMorgan Chase Bank, N.A., as administrative agent under the hereinafter defined Credit Agreement (the “Administrative Agent”), and the other financial institutions signatory
hereto. 
 R E C I T A L S: 

A. The Borrower, the Administrative Agent and certain financial institutions are parties to a $1,500,000,000 Credit Agreement dated as of
June 17, 2011 (the “Credit Agreement”). 
 B. The Borrower, the Administrative Agent and the undersigned Banks wish to
amend the Credit Agreement on the terms and conditions set forth below. 
 Now, therefore, in consideration of the mutual execution hereof
and other good and valuable consideration, the parties hereto agree as follows: 
 1. Definitions. Unless otherwise specified herein,
all capitalized terms used herein shall have the meanings specified in the Credit Agreement. 
 2. Amendments to Credit Agreement.
Upon the First Amendment Effective Time (as defined below), the Credit Agreement shall be amended as follows: 
 (a) The
definition of “Eurocurrency Rate” in Section 1.01 of the Credit Agreement is amended in its entirety to read as follows: 

“Eurocurrency Rate” means, with respect to any Eurocurrency Advance in an Agreed Currency (other than Euro) for the relevant
Interest Period, the London interbank offered rate as administered by Ice Benchmark Administration (“ICE”) (or any other Person that takes over the administration of such rate) for the applicable Agreed Currency for a period equal in
length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that
displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion); provided, that, if no such rate is available to
the Administrative Agent, the applicable Eurocurrency Rate for the relevant Interest Period shall instead be the rate determined by reference to such other publicly available service for displaying interest rates for deposits in the applicable
Agreed Currency in the London interbank market as may be selected by the Administrative Agent or, in the absence of such availability, by reference to the average of the rates at which deposits in the applicable Agreed Currency of $5,000,000 and for
a maturity comparable to such Interest Period are offered in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period by the principal
London office of the Administrative Agent and by one or more Banks which are selected by the Administrative Agent and which agree to provide such information to the Administrative Agent; and provided further that if the “Eurocurrency
Rate” as determined pursuant to the foregoing provisions of this 

 
definition shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. 

(b) The definition of “EURIBOR” in Section 1.01 of the Credit Agreement is amended in its entirety to read as
follows: 
 “EURIBOR” means, with respect to any EURIBOR Advance for the relevant Interest Period, the interest rate per
annum equal to the rate determined by the Administrative Agent to be the rate at which deposits in Euro appear on the Reuters Screen EURIBOR01 as of 11:00 a.m., Brussels time, on the date that is two (2) TARGET Settlement Days (or, if such date
is not a EURIBOR Business Day, the first day preceding such date that is a EURIBOR Business Day) preceding the first day of such Interest Period, and having a maturity equal to such Interest Period; provided, that if such rate does not appear
on the Reuters Screen EURIBOR01, then EURIBOR shall be an interest rate per annum equal to the arithmetic mean determined by the Administrative Agent (rounded to the nearest .01%) of the rates per annum at which deposits in Euro are offered by the
London branches of JPMorgan Chase Bank, National Association, Bank of America, N.A. and Citibank, N.A. at approximately 11:00 a.m., Brussels time, on the day that is two (2) TARGET Settlement Days (or, if such date is not a EURIBOR Business
Day, the first day preceding such date that is a EURIBOR Business Day) preceding the first day of such Interest Period to other leading banks in the euro-zone interbank market at which deposits in Euro are offered, and having a maturity equal to
such Interest Period. The Administrative Agent will deliver a copy of such Reuters Screen or its calculation of EURIBOR, as applicable, to the Borrower within one (1) EURIBOR Business Day of the beginning of the relevant Interest Period;
provided that the failure of the Administrative Agent to provide such copy of the Reuters Screen or such calculation of EURIBOR shall in no way limit or modify the obligations of the Borrower under this Agreement; and provided further
that if “EURIBOR” as determined pursuant to the foregoing provisions of this definition shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. 

(c) The definition of “Termination Date” in Section 1.01 of the Credit Agreement is amended in its entirety to
read as follows: 
 “Termination Date” means, the earlier of (i) December 31, 2015 and (ii) the date on which the
Commitments shall have been reduced to zero or terminated in whole pursuant to the terms hereof. 
 (d) The following
definitions shall be added to Section 1.01 of the Credit Agreement in alphabetical order: 
 “Anti-Corruption Laws”
means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption. 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by
(a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or 

  
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the U.S. Department of State or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom. 

“Sanctioned Country” means, at any time, a country or territory which is the subject or target of any Sanctions and currently
is comprised of Cuba, Iran, North Korea, Sudan and Syria. 
 “Sanctioned Person” means, at any time, (a) any Person
listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union or any
European Union member state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled or more than 50% owned by any such Person. 

(e) Section 7.01(f) of the Credit Agreement is amended in its entirety to read as follows: 

Financial Statements; No Material Adverse Change. The Consolidated balance sheet at December 31, 2013, and the related
Consolidated statements of income, cash flows and shareholder’s equity and comprehensive income for the period then ended of the Borrower and its Consolidated Subsidiaries present fairly in all material respects the financial condition of the
Borrower and its Consolidated Subsidiaries at December 31, 2013, and the results of the operations and cash flows of the Borrower and its Consolidated Subsidiaries for the year then ended, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year except as discussed in Note 1 to the Consolidated financial statements. Since December 31, 2013, except as disclosed in filings with the SEC prior to the date of this
Agreement, there has been no material adverse change in such financial condition or operations. 
 (f) A new
Section 7.01(j) is added to the Credit Agreement reading as follows: 
 Anti-Corruption Laws and Sanctions. The Borrower has
implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the
Borrower, its Subsidiaries and their respective officers and employees and to the knowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) the
Borrower, any Subsidiary or, to the knowledge of the Borrower or such Subsidiary, any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will act in
any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person, except to the extent the Borrower or such Subsidiary is licensed by the appropriate Sanctions-administering authority to engage in the
applicable transaction with such Sanctioned Person or is otherwise permitted to do so by U.S. law. No Borrowing or Letter of Credit, use of proceeds or other transaction contemplated by the Credit Agreement will violate Anti-Corruption Laws or
applicable Sanctions. 

  
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 (g) Section 8.01(g) of the Credit Agreement is amended by adding the
following sentence at the conclusion thereof: 
 The Borrower will not request any Advance or Letter of Credit, and the Borrower shall not
use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Advance or Letter of Credit (A) in furtherance of an offer, payment, promise to pay, or
authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transactions of or with
any Sanctioned Person, or in any Sanctioned Country, except to the extent licensed by the appropriate Sanctions-administering authority to engage in the applicable transaction with such Sanctioned Person or, as applicable, in such Sanctioned Country
or otherwise permitted by U.S. law, or (C) in any manner that would result in the violation of any Sanctions applicable to any party hereto. 

(h) A new Section 8.01(h) is added to the Credit Agreement reading as follows: 

Anti-Corruption Policies, Etc. The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance
by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. 

(i) Section 9.01(d) of the Credit Agreement is amended in its entirety to read as follows: 

The Borrower shall (i) fail to perform or observe, or shall breach, any other term, covenant or agreement contained in this Agreement on
its part to be performed or observed (other than those failures or breaches referred to in subsections (a), (b), (c), (d)(ii) or (d)(iii) of this Section 9.01) and any such failure or breach shall
remain unremedied for thirty (30) days after written notice thereof has been given to the Borrower by the Administrative Agent at the request of any Bank; (ii) fail to perform or observe Section 8.02(c) or the final sentence of
Section 8.01(g); or (iii) fail to perform or observe Section 8.01(f)(v) and such failure shall remain unremedied for fifteen (15) days after the occurrence thereof; 

3. Representations and Warranties of the Borrower. The Borrower represents and warrants that: 

(a) The execution, delivery and performance by the Borrower of this Amendment have been duly authorized by all necessary
corporate action and that this Amendment is a legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, except as the enforcement thereof may be subject to the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally; 
 (b) Each of
the representations and warranties contained in the Credit Agreement (as amended hereby) is true and correct in all material respects (provided that each representation and warranty which is already qualified by materiality is true and

  
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correct in all respects) on and as of the date hereof as if made on the date hereof (except any such representation or warranty that expressly relates to or is made expressly as of a specific
earlier date, in which case such representation or warranty is true and correct in all material respects (provided that each representation and warranty which is already qualified by materiality is true and correct in all respects) with respect to
or as of such specific earlier date); and 
 (c) No Event of Default or Unmatured Event of Default has occurred and is
continuing. 
 4. Effective Time. This Amendment shall become effective on the date (the “First Amendment Effective
Time”) upon which all of the following conditions have been satisfied: 
 (a) the execution and delivery hereof by
the Borrower, the Administrative Agent and each of the Banks; and 
 (b) the Borrower shall have paid to J.P. Morgan
Securities LLC (i) the separately agreed fees relating hereto and (ii) all reasonable expenses reimbursable by the Borrower pursuant hereto or to the Credit Agreement for which invoices have been presented by the Administrative Agent on or
before the First Amendment Effective Time. 
 5. Miscellaneous. 

(a) Except as specifically amended hereby, the Credit Agreement, the Notes and the other agreements, instruments and documents
executed in connection therewith (collectively, the “Loan Documents”) shall remain in full force and effect and are hereby ratified and confirmed. 

(b) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of
the Administrative Agent or any Bank under the Credit Agreement or any other Loan Document, or constitute a waiver of any provision of the Credit Agreement or any other Loan Document. Upon the effectiveness of this Amendment, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby. 

(c) Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of
this Amendment for any other purposes. 
 (d) This Amendment may be executed in any number of counterparts, each of which
when so executed shall be deemed an original but all such counterparts shall constitute one and the same instrument. Delivery of an executed signature page of this Amendment by facsimile transmission or other electronic transmission shall be
effective as delivery of a manually executed counterpart hereof. 
 6. Costs and Expenses. The Borrower hereby affirms its obligation
under Section 11.04 of the Credit Agreement to reimburse the Administrative Agent for all reasonable and 

  
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documented out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation, negotiation, execution and delivery of this Amendment, including but not limited to the
reasonable and documented fees, charges and disbursements of attorneys for the Administrative Agent with respect thereto. 
 7. Governing
Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York. 
 [signature pages
follow] 

  
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 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first above
written. 
  

			
	BAXTER INTERNATIONAL INC.
		
	By:	 	 /s/ Robert J. Hombach

	Name:	 	Robert J. Hombach
	Title:	 	Corporate Vice President and
		 	Chief Financial Officer

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	JPMORGAN CHASE BANK, N.A.,
	as Administrative Agent and as a Bank
		
	By:	 	 /s/ Olivier Lopez

	Name:	 	Olivier Lopez
	Title:	 	Associate

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	BANK OF AMERICA, N.A.
		
	By:	 	 /s/ Joseph Corah

	Name:	 	Joseph Corah
	Title:	 	Director

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	CITIBANK, N.A.
		
	By:	 	 /s/ Laura Fogarty

	Name:	 	Laura Fogarty
	Title:	 	Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	DEUTSCHE BANK AG NEW YORK BRANCH,
	as a Lender
		
	By:	 	 /s/ Ming K. Chu

	Name:	 	Ming K. Chu
	Title:	 	Vice President
		
	By:	 	 /s/ Virginia Cosenza

	Name:	 	Virginia Cosenza
	Title:	 	Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	GOLDMAN SACHS BANK USA
		
	By:	 	 /s/ Mark Walton

	Name:	 	Mark Walton
	Title:	 	Authorized Signature

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	UBS AG, STAMFORD BRANCH
		
	By:	 	 /s/ Lana Gifas

	Name:	 	Lana Gifas
	Title:	 	Director
		
	By:	 	 /s/ Jennifer Anderson

	Name:	 	Jennifer Anderson
	Title:	 	Associate Director

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
		
	By:	 	 /s/ Christopher Day

	Name:	 	Christopher Day
	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Sally Reyes

	Name:	 	Sally Reyes
	Title:	 	Authorized Signatory

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	THE ROYAL BANK OF SCOTLAND PLC
		
	By:	 	 /s/ William McGinty

	Name:	 	William McGinty
	Title:	 	Director

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	THE BANK OF TOKOYO-MITSUBISHI UFJ, LTD.
		
	By:	 	 /s/ Jaime Sussman

	Name:	 	Jaime Sussman
	Title:	 	Authorized Signatory

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	BARCLAYS BANK PLC
		
	By:	 	 /s/ Paras Patel

	Name:	 	Paras Patel
	Title:	 	Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	HSBC BANK USA, N.A.
		
	By:	 	 /s/ Andrew Bicker

	Name:	 	Andrew Bicker
	Title:	 	Senior Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	MIZUHO BANK (USA) f/k/a/ MIZUHO CORPORATE BANK (USA)
		
	By:	 	 /s/ Bertram H. Tang

	Name:	 	Bertram H. Tang
	Title:	 	Senior Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	BANK OF CHINA, NEW YORK BRANCH
		
	By:	 	 /s/ Haifeng Xu

	Name:	 	Haifeng Xu
	Title:	 	Executive Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	THE BANK OF NEW YORK MELLON
		
	By:	 	 /s/ Clifford A. Mull

	Name:	 	Clifford A. Mull
	Title:	 	First Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	TORONTO DOMINION (TEXAS) LLC
		
	By:	 	 /s/ Marie Fernandes

	Name:	 	Marie Fernandes
	Title:	 	Authorized Signatory

 Signature Page to Baxter International 

Amendment No. 1 to Credit Agreement 

 
			
	STATE STREET BANK & TRUST COMPANY
		
	By:	 	 /s/ Andrei Bourdine

	Name:	 	Andrei Bourdine
	Title:	 	Vice President

 Signature Page to Baxter International 

Amendment No. 1 to Credit AgreementExhibit 4.1

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made and entered into as of July 17, 2014, between Sunstone Hotel Investors, Inc., a Maryland corporation (the “Company”) and BRE/Hawaii Holdings LLC, a Delaware limited liability company (together with its successors and assigns, the “Investor”).

 

WHEREAS, the Company, Sunstone Hotel Acquisitions, LLC, a Delaware limited liability company, and BRE/Wailea LLC have entered into the Real Estate Purchase Agreement, dated as of June 19, 2014 (the “Purchase Agreement”), pursuant to which the Company agreed, among other things, to issue 4,034,970 shares of its common stock, par value $0.01 per share (the “Common Stock”), to the Investor; and

 

WHEREAS, the Company desires to provide the Investor with certain registration rights with respect to the Common Stock to be issued to the Investor pursuant to the Purchase Agreement.

 

NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows:

 

1.                                      DEFINITIONS.

 

As used in this Agreement, the following terms shall have the following respective meanings:

 

“Affiliate”: with regard to a Person, a Person that controls, is controlled by, or is under common control with, such original Person. For purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Closing Date”: as defined in the Purchase Agreement.

 

“Commission”: the Securities and Exchange Commission or any other applicable Federal agency at the time administering the Securities Act.

 

“Company”: as defined in the preamble, and shall include, where the context requires any Person into which the Company is merged or with which the Company is consolidated.

 

“Demand Registration”: an effective registration pursuant to a request made by the Investor pursuant to Section 2.1; provided, however, that a registration shall not count as a Demand Registration unless the Investor is able to register all of the Shares requested to be included in such registration.

 

“Exchange Act”: the Securities Exchange Act of 1934, as amended.

 

“Overhang Risk”: a substantial risk that the sale of some or all of the Shares sought to be sold will substantially reduce the proceeds or price per Share to be derived from the sale.

 

 

“Person”: an individual, partnership, corporation, company (including a limited liability company), trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Resale Rules”: as defined in Section 3.3.

 

“Securities Act”: the Securities Act of 1933, as amended.

 

“Shares”: the shares of Common Stock issued to the Investor pursuant to the Purchase Agreement, and any other securities that subsequently may be issued or issuable by the Company pursuant to the Purchase Agreement or as a result of a stock split or dividend or other similar transaction involving the Shares and any securities into which the Shares may thereafter be changed or exchanged as a result of the reincorporation of the Company or merger, consolidation, recapitalization or other similar transaction.

 

“Shelf Registration”: as defined in Section 4.9 of the Purchase Agreement.

 

“Violation”: as defined in Section 3.2(a).

 

2.                                      REGISTRATION RIGHTS.

 

2.1                               Demand Registration.  During the period from and after the Closing Date, if the Company has not maintained the effectiveness of the Shelf Registration, the Investor may request the Company to file a registration statement to register the resale of some or all of the Investor’s Shares, which registration statement will contemplate the ability of the Investor to do an underwritten offering. The Investor shall be entitled to one Demand Registration.  The Company’s obligations in this Section 2.1 are subject to Section 2.3.

 

2.2                               Shelf Registration.  The Company shall use reasonable best efforts to cause the Shelf Registration to be continuously effective so long as there are any Shares outstanding.  In connection with the Shelf Registration, the Company will, as promptly as reasonably practicable upon notice from the Investor requesting a shelf take-down, cooperate in any such shelf take-down by amending or supplementing the prospectus related to such registration as may be reasonably requested by the Investor or as may be otherwise required to effect the sale of the Shares to be sold thereunder. The Company’s obligation to maintain the effectiveness of the Shelf Registration shall terminate at such time as the Investor’s Shares are freely tradeable pursuant to the Resale Rules without limitations (including any limitation on volume or manner of sale).  The Company’s obligations in this Section 2.2 are subject to Section 2.3.

 

2.3                               Company’s Ability to Postpone. The Company shall have the right to postpone the filing or effectiveness of a registration statement under Section 2.1 and each proposed sale of Shares by the Investor under an effective registration statement under Section 2.1 or 2.2, for a reasonable period of time (not exceeding 60 days) (the “Blackout Period”) if the Company furnishes the Investor with a certificate signed by the Chief Executive Officer of the Company stating that the Company’s board of directors, in its good faith judgment, has determined that effecting the registration or sale at such time would adversely affect a material financing, acquisition, disposition of assets or stock, merger or other comparable transaction or would require the Company to make public disclosure of information the public disclosure of which would have a material adverse effect upon the Company; provided, that the Blackout Period shall

 

 

terminate if effecting the registration or sale would cease to adversely affect any such transaction (whether because such transaction shall have been disclosed, abandoned or otherwise), or if the applicable information has been disclosed or if the disclosure of such information would cease to have a material adverse effect upon the Company, as the case may be, and the Company shall provide the Investor with prompt notice of the termination of the Blackout Period; provided, further, however, that notwithstanding anything herein to the contrary, the Company shall only be entitled to exercise its rights under this Section on one occasion during any 9-month period; provided  further, however, that during any such Blackout Period, the Company shall also delay the filing or effectiveness of, and shall not sell or permit a sale under, any registration statement with respect to any securities of the Company to be sold by the Company or by any other stockholders of the Company.

 

2.4                               Registration Procedures. If and whenever the Company is required by any of the provisions of this Article 2 to effect the registration of any of the Shares under the Securities Act, the Company shall use its best efforts to effect the registration and the sale of such Shares in accordance with the intended method of disposition thereof, and pursuant thereto the Company shall as expeditiously as possible:

 

(a)                                 prepare and, in the case of a Demand Registration, no later than 45 days after a request for a Demand Registration, file with the Commission a registration statement with respect to such Shares and use its reasonable efforts to cause such registration statement to become effective as promptly as practicable, and remain effective for as long as shall be necessary to complete the distribution of the Shares so registered; provided, that before filing a registration statement or prospectus or any amendments or supplements thereto, the Company shall furnish to the counsel selected by the Investor copies of all such documents proposed to be filed, to the extent specifically requested by such counsel, including documents that are to be incorporated by reference into the registration statement, amendment or supplement, which documents shall be subject to the review and reasonable comment of such counsel;

 

(b)                                 notify the Investor when a registration statement or any amendment thereto has been filed and when it has become effective;

 

(c)                                  prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all Shares covered by such registration statement;

 

(d)                                 furnish to the Investor such numbers of copies of the registration statement, each amendment or supplement thereto, a summary prospectus or other prospectus, including a preliminary prospectus or any amendment or supplement to any prospectus, in conformity with the requirements of the Securities Act, and such other documents, as the Investor may reasonably request, in order to facilitate the public sale or other disposition of the Shares covered by such registration statement (it being understood that the Company consents to the use of such prospectus and any amendment or supplement thereto by the Investor and the underwriters, if any, in connection with the offering and sale of the Shares thereby);

 

 

(e)                                  use its reasonable efforts to (i) register and qualify the Shares covered by such registration statement under such other securities or blue sky laws of such jurisdictions as the Investor shall reasonably request, (ii) keep such registration or qualification in effect for so long as such registration statement remains in effect, (iii) cooperate with the Investor and the underwriters, if any, and their respective counsel in connection with any filings required to be made with the Financial Industry Regulatory Authority and (iv) do any and all other acts and things reasonably requested by the Investor to assist it to consummate the public sale or other disposition in such jurisdictions of the Shares owned by the Investor, except that the Company shall not for any such purpose be required to qualify to do business as a foreign corporation in any jurisdiction wherein it is not so qualified or to file therein any general consent to service of process;

 

(f)                                   otherwise use its reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months, beginning with the first fiscal quarter beginning after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act;

 

(g)                                  use its reasonable efforts to list and thereafter to maintain the listing of such Shares covered by such registration statement on any securities exchange or interdealer quotation system on which the shares of Common Stock of the Company are then listed, if the listing or quotation of such Shares is then permitted under the rules of such exchange or interdealer quotation system;

 

(h)                                 if the Investor intends to dispose of its Shares through an underwritten public offering, enter into and perform its obligations under an underwriting agreement, in customary and usual form, with the managing underwriter of such underwritten offering, including, without limitation, to obtain an opinion of counsel to the Company and a “comfort letter” from the independent public accountants to the Company in the usual and customary form for such underwritten offering;

 

(i)                                     promptly notify the Investor of the happening of any event of which it has knowledge as a result of which the prospectus included in the registration statement, as then in effect, contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and, at the request of the Investor (subject to the Company’s ability to postpone such filing pursuant to Section 2.3 hereof), the Company shall promptly prepare, file and furnish to the Investor a supplement or amendment to the prospectus so that, as thereafter delivered to the purchasers of such Shares, such prospectus shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; provided, that the Investor shall refrain from selling any Shares until such supplement or amendment to the prospectus has been filed;

 

 

(j)                                    make every reasonable effort to prevent the entry of any order suspending the effectiveness of the registration statement and, in the event of the issuance of any such stop order, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any security included in such registration statement for sale in any jurisdiction, the Company shall promptly notify the Investor and use its best efforts to obtain the prompt withdrawal of such order;

 

(k)                                 make the Company’s executive officers available for presentations to investors to discuss the affairs of the Company at times that may be mutually and reasonably agreed upon (including, without limitation, to the extent customary, senior management attendance at due diligence meetings with the underwriters and their counsel and road shows); and provide the Investor, the underwriter and their respective counsel and accountants such access to its books and records, all as shall be necessary to conduct a reasonable investigation within the meaning of the Securities Act;

 

(l)                                     deliver promptly to Investor’s counsel copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to such registration statement; and

 

(m)                             upon the request of the Investor, take any and all other actions which may be reasonably necessary to complete the registration and thereafter to complete the distribution of the Shares so registered.

 

2.5                               Underwritten Offering.

 

(a)                                 If the proposed sale by the Investor in a Demand Registration or Shelf Registration is an underwritten offering, the Investor shall (together with the Company as provided in Section 2.4(h)), enter into an underwriting agreement in customary and usual form with the managing underwriter selected for such underwriting by the Investor.  For the avoidance of doubt, the Investor shall not be required, without its approval, to enter into any underwriting agreement contemplated by this Agreement that does not contain terms acceptable to it in its discretion.  The Investor hereby agrees that it may not participate in any underwritten offering hereunder unless it (i) agrees to sell its Shares on the basis provided in the underwriting agreement and (ii) completes and executes all questionnaires, powers of attorney and other documents reasonably required under the terms of the underwriting agreement or by the Company.

 

(b)                                 The Investor may not make more than one underwritten offering whether pursuant to a Demand Registration or Shelf Registration.  For this purpose, “underwritten offerings” do not include block purchases from the Investor by brokers or dealers without any marketing efforts by the Company or the Investor.

 

3.                                      PROVISIONS APPLICABLE TO REGISTRATION RIGHTS.

 

3.1                               Expenses.

 

All expenses incurred in any Shelf Registration or Demand Registration (or any attempted Shelf Registration or Demand Registration that is not consummated) shall be paid by the Company, including, without limitation, (i) the fees and expenses of its counsel, and fees and expenses related to the preparation, printing and distribution of the registration statement and the

 

 

prospectus used in connection therewith and any amendment or supplement thereto, (ii) any necessary accounting expenses, including any special audits which shall be necessary to comply with governmental requirements in connection with any such registration, including the expense related to any comfort letters and (iii) all registration and filing fees, listing fees and all fees and expenses of complying with the securities or blue sky laws of any jurisdictions; provided, that the Company shall not bear any underwriter’s discounts or commissions or fees or fees of placement agents or fees and disbursements of counsel for the Investor.

 

3.2                               Indemnification. In the event the Investor’s Shares are included in a registration statement under Article 2:

 

(a)                                 Indemnity by Company. Without limitation of any other indemnity provided to the Investor, to the extent permitted by law, the Company will indemnify and hold harmless the Investor, the Affiliates, officers, directors and partners or members of the Investor, each underwriter (as defined in the Securities Act), and each Person, if any, who controls (within the meaning of the Securities Act) the Investor or an underwriter, against any losses, claims, damages, liabilities and expenses (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, liabilities and expenses (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in such registration statements (including any preliminary prospectus, summary prospectus or final prospectus contained therein or any amendments or supplements thereto), (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, or (iii) any other violation or alleged violation by the Company, its officers, employees or agents of this Agreement, the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law, and the Company will reimburse the Investor and its Affiliates, officers, directors, partners or members, underwriter and controlling Person on demand for any reasonable legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability, expense or action; provided, however, that the Company shall not be liable to the Investor in any such case for any such loss, claim, damage, liability, expense or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by the Investor or any Affiliate, officer, director, partner, member or controlling Person thereof as provided in section 3.2(b) below;

 

(b)                                 Indemnity by the Investor. In connection with any registration statement in which the Investor is participating, the Investor will furnish to the Company in writing such reasonably necessary information as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, will indemnify the Company, its directors and officers and each Person who controls (within the meaning of the Securities Act) the Company against any losses, claims, damages, liabilities and expenses resulting from any Violation, but only to the extent that such Violation is contained in any information furnished in writing to the

 

 

Company by the Investor stated to be specifically for use in such registration statement or prospectus (the furnishing of such reasonably necessary information by the Investor being a condition precedent to the Company’s obligation to cause the registration statement to become effective); provided, that the obligation to indemnify will be several and not joint with any other Person and will be limited to the net amount received by the Investor from the sale of Shares pursuant to such registration statement;

 

(c)                                  Notice; Right to Defend. Promptly after receipt by an indemnified party under this Section 3.2 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 3.2, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, if the indemnifying party agrees in writing that it will be responsible for any costs, expenses, judgments, damages and losses incurred by the indemnified party with respect to such claim, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if the indemnified party reasonably believes that representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 3.2 only if and to the extent that such failure is prejudicial to its ability to defend such action, and the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party other than under this Section 3.2.  Consent of the indemnified party shall be required for the entry of any judgment or to enter into a settlement if such judgment or settlement does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation;

 

(d)                                 Contribution.  If the indemnification provided for in this Section 3.2 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relative fault of the indemnifying party and the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, the amount an Investor shall be obligated to contribute pursuant to this Section 3.2(d) shall be limited to an amount equal

 

 

to the proceeds to the Investor of the Shares sold pursuant to the registration statement which gives rise to such obligation to contribute (less the aggregate amount of any damages which the Investor has otherwise been required to pay in respect of such loss, claim, damage, liability or action or any substantially similar loss, claim, damage, liability or action arising from the sale of such Shares).  No Person guilty of fraudulent misrepresentation (within the meaning of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  In addition, no Person shall be obligated to contribute hereunder any amounts in payment for any settlement of any action or claim, effected without such Person’s written consent, which consent shall not be unreasonably withheld; and

 

(e)                                  Survival of Indemnity. The indemnification provided by this Section 3.2 shall be a continuing right to indemnification and shall survive the registration and sale of any securities by any Person entitled to indemnification hereunder and the expiration or termination of this Agreement.

 

3.3                               Rule 144. In order to permit the Investor to sell the Shares it holds, if it so desires, from time to time pursuant to Rule 144 under the Securities Act promulgated by the Commission or any successor to such rule or any other rule or regulation of the Commission that may at any time permit the Investor to sell its Shares to the public without registration (“Resale Rules”), the Company will:

 

(a)                                 comply with all rules and regulations of the Commission applicable in connection with use of the Resale Rules;

 

(b)                                 make and keep adequate and current public information available, as those terms are understood and defined in the Resale Rules, at all times;

 

(c)                                  file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act;

 

(d)                                 furnish to the Investor so long as it owns any Shares, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of the Resale Rules, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and any other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing an Investor of any rule or regulation of the Commission which permits the selling of any such Shares without registration; and

 

(e)                                  take any action (including cooperating with the Investor to cause the transfer agent to remove any restrictive legend on certificates evidencing the Shares) as shall be reasonably requested by the Investor or which shall otherwise facilitate the sale of Shares from time to time by the Investor pursuant to the Resale Rules.

 

3.4                               Investor Status and Responsibilities. The Investor acknowledges the limitations that may be imposed upon the Investor under Section 10 of the Exchange Act and the rules and regulations thereunder in connection with the Investor’s sale or transfer of Shares and agrees to sell or transfer any such Shares only subject to any such applicable limitations.

 

 

4.                                      MISCELLANEOUS.

 

4.1                               Amendment; Termination. This Agreement may be amended, modified or supplemented but only in writing signed by each of the parties hereto. This Agreement shall terminate when the Investor no longer owns any Shares.

 

4.2                               Notices. Any notice, request, instruction or other document to be given hereunder by a party hereto shall be in writing, personally delivered or mailed by first-class registered or certified mail, return receipt requested, postage prepaid or delivered by Federal Express or another nationally recognized overnight commercial courier against receipt, or sent by facsimile or electronic mail providing that a confirming copy is simultaneously sent by Federal Express or other nationally recognized overnight commercial courier:

 

If to the Company, addressed as follows:

 

Sunstone Hotel Investors, Inc.

120 Vantis, Suite 350

Aliso Viejo, California 92656

Attention: Legal Department

Telephone No.: (949) 382-3005

Facsimile No.: (949) 382-4060

Email: dsloan@sunstonehotels.com; jkessler@sunstonehotels.com

 

with a copy to:

 

Sunstone Hotel Investors, Inc.

120 Vantis, Suite 350

Aliso Viejo, California 92656

Attention: Finance Department

Telephone No.: (949) 382-3082

Facsimile No.: (949) 382-4060

Email: bgiglia@sunstonehotels.com; jarabia@sunstonehotels.com

 

and with a copy to:

 

Ginsberg Jacobs LLC

300 South Wacker Drive, Suite 2450

Chicago, Illinois 60606

Attention: Steven F. Ginsberg and Ana L. Acena

Telephone No.: (312) 660-9614 and (312) 660-9618

Facsimile No.: (312) 660-9612

E-mail: sginsberg@ginsbergjacobs.com; aacena@ginsbergjacobs.com

 

 

If to the Investor, addressed as follows:

 

BRE/Hawaii Holdings LLC

c/o Blackstone Real Estate Partners VI, L.P.

345 Park Avenue

New York, New York 10154

Attention: Tyler Henritze

Facsimile No.: 646-253-8712

E-mail: henritze@blackstone.com

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: Sas Mehrara and Brian Stadler

Telephone No: (212) 455-2000

Facsimile No.: (212) 455-2502

Email: smehrara@stblaw.com; bstadler@stblaw.com

 

or to such other individual or address as a party hereto may designate for itself by notice given as herein provided.  Such notice shall be deemed given on the date of receipt by the addressee or the date receipt would have been effectuated if delivery were not refused.  The inability to deliver a notice because of a changed address of which proper notice was not given shall be deemed a refusal of such notice.

 

4.3                               Waivers. The failure of a party hereto at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same. No waiver by a party of any condition or of any breach of any term, covenant, representation or warranty contained in this Agreement shall be effective unless in writing, and no waiver in any one or more instances shall be deemed to be a further or continuing waiver of any such condition or breach in other instances or a waiver of any other condition or breach of any other term, covenant, representation or warranty.

 

4.4                               Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

4.5                               Interpretation. The headings preceding the text of Articles and Sections included in this Agreement are for convenience only and shall not be deemed part of this Agreement or be given any effect in interpreting this Agreement. The use of the masculine, feminine or neuter gender herein shall not limit any provision of this Agreement. The use of the terms “including” or “include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively. References to Articles, Sections or Subsections shall refer to those portions of this Agreement.

 

4.6                               Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES.

 

4.7                               Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  At the election of the Investor, upon notice to the Company, in the event that any transferee of the Investor shall acquire Shares in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be entitled to receive the benefits of and, if applicable, be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement.

 

 

4.8                               Severability. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality or enforceability of the other provisions hereof shall not be affected thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision as similar as possible to the provision at issue.

 

4.9                               Entire Understanding. This Agreement sets forth the entire agreement and understanding of the parties hereto with respect to the matters set forth herein and supersedes any and all prior agreements, arrangements and understandings among the parties.

 

4.10                        Specific Performance. Each of the parties acknowledges that the obligations undertaken by it pursuant to this Agreement are unique and that the other parties will not have an adequate remedy at law if it shall fail to perform any of its obligations hereunder, and each party therefore confirms that the right of each other party hereto to specific performance of the terms of this Agreement is essential to protect the rights and interests of such parties. Accordingly, in addition to any other remedies that the parties may have at law or in equity, each party shall have the right to have all obligations, covenants, agreements and other provisions of this Agreement specifically performed by each other party, and shall have the right to obtain preliminary and permanent injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement by each other party.

 

4.11                        Recapitalizations; Reorganization. In the event that any Shares or other securities are issued in respect of, in exchange for, or in substitution of the Shares by reason of any reorganization, recapitalization, reclassification, merger, consolidation, spin-off, partial or complete liquidation, share dividend, split-up, sale of assets, distribution to stockholders or combination of the Shares or any other similar change in the Company’s capital structure, the Company agrees that appropriate adjustments shall be made to this Agreement to ensure that the Investor has, immediately after consummation of such transaction, substantially the same rights in respect of the Company or another issuer of securities, as applicable, as it has immediately prior to consummation of such transaction in respect of the Company under this Agreement.

 

* * * * *

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date and year first above written.

 

	
 
    	
SUNSTONE   HOTEL INVESTORS, INC., a Maryland corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bryan A. Giglia
    
	
 
    	
 
    	
Name:   Bryan A. Giglia
    
	
 
    	
 
    	
Title:   CFO
    

 

Signature Page to Registration Rights Agreement

 

 

	
 
    	
BRE/HAWAII   HOLDINGS LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Glenn Alba
    
	
 
    	
 
    	
Name:   Glenn Alba
    
	
 
    	
 
    	
Title:   Managing Director and Vice President
    

 

Signature Page to Registration Rights Agreement

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