SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

(Rule 13d-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED

PURSUANT TO § 240.13d-2(a)

Under the Securities Exchange Act of 1934

 

 

Ladder Capital Corp

(Name of Issuer)

Class A Common Stock, par value $0.001 per share

(Title of Class of Securities)

505743 104

(CUSIP Number)

Richard O’Toole, Esq.

Related Fund Management, LLC

60 Columbus Circle

New York, New York 10023

(212) 421-5333

with a copy to:

Robert W. Downes, Esq.

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

(212) 558-4000

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

March 3, 2017

(Date of Event Which Requires Filing of This Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ☐

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.

 

 

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 


CUSIP No. 505743 104

 

  1   

NAME OF REPORTING PERSON

 

RELATED FUND MANAGEMENT, LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

 

(a)  ☐        (b)  ☐

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

5,886,681

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

5,886,681

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

5,886,681*

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.8%*

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IA

 

* The percentage set forth above is calculated based on 72,291,533 shares of Class A Common Stock outstanding as of February 23, 2017, as reported in the Issuer’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on February 24, 2017 (the “Form 10-K”), and 1,117,326 and 1,675,013 shares of Class A Common Stock into which affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., respectively, exchanged shares of Class B Common Stock and units of Series REIT of Ladder Capital Finance Holdings (“LCFH”) and units of Series TRS of LCFH (collectively, “Units”) in connection with the transactions described in Items 3, 4 and 6 of this Schedule 13D. The percentage excludes the effect of shares of Class A Common Stock issuable on exchange of currently outstanding Units and shares of Class B Common Stock of the Issuer. In the event that all outstanding Units and shares of Class B Common Stock are exchanged for shares of Class A Common Stock, such percentage would be equal to 5.3%, which is calculated based on the number of outstanding shares of Class A Common Stock set forth above and 38,434,658 shares of Class B Common Stock and Units outstanding as of February 23, 2017, as reported in the Form 10-K, less the 2,792,339 shares of Class B Common Stock and Units exchanged into shares of Class A Common Stock as set forth above.


CUSIP No. 505743 104

 

  1   

NAME OF REPORTING PERSON

 

RELATED REAL ESTATE FUND II GP-A, LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

 

(a)  ☐        (b)  ☐

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

5,886,681

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

5,886,681

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

5,886,681*

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.8%*

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

* The percentage set forth above is calculated based on 72,291,533 shares of Class A Common Stock outstanding as of February 23, 2017, as reported in the Form 10-K, and 1,117,326 and 1,675,013 shares of Class A Common Stock into which affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., respectively, exchanged shares of Class B Common Stock and Units in connection with the transactions described in Items 3, 4 and 6 of this Schedule 13D. The percentage excludes the effect of shares of Class A Common Stock issuable on exchange of currently outstanding Units and shares of Class B Common Stock of the Issuer. In the event that all outstanding Units and shares of Class B Common Stock are exchanged for shares of Class A Common Stock, such percentage would be equal to 5.3%, which is calculated based on the number of outstanding shares of Class A Common Stock set forth above and 38,434,658 shares of Class B Common Stock and Units outstanding as of February 23, 2017, as reported in the Form 10-K, less the 2,792,339 shares of Class B Common Stock and Units exchanged into shares of Class A Common Stock as set forth above.


CUSIP No. 505743 104

 

  1   

NAME OF REPORTING PERSON

 

RELATED REAL ESTATE FUND II GP, L.P.

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

 

(a)  ☐        (b)  ☐

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

5,886,681

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

5,886,681

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

5,886,681*

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.8%*

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

PN

 

* The percentage set forth above is calculated based on 72,291,533 shares of Class A Common Stock outstanding as of February 23, 2017, as reported in the Form 10-K, and 1,117,326 and 1,675,013 shares of Class A Common Stock into which affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., respectively, exchanged shares of Class B Common Stock and Units in connection with the transactions described in Items 3, 4 and 6 of this Schedule 13D. The percentage excludes the effect of shares of Class A Common Stock issuable on exchange of currently outstanding Units and shares of Class B Common Stock of the Issuer. In the event that all outstanding Units and shares of Class B Common Stock are exchanged for shares of Class A Common Stock, such percentage would be equal to 5.3%, which is calculated based on the number of outstanding shares of Class A Common Stock set forth above and 38,434,658 shares of Class B Common Stock and Units outstanding as of February 23, 2017, as reported in the Form 10-K, less the 2,792,339 shares of Class B Common Stock and Units exchanged into shares of Class A Common Stock as set forth above.


CUSIP No. 505743 104

 

  1   

NAME OF REPORTING PERSON

 

RELATED REAL ESTATE FUND II, L.P.

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

 

(a)  ☐        (b)  ☐

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

WC

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

5,886,681

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

5,886,681

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

5,886,681*

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.8%*

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

PN

 

* The percentage set forth above is calculated based on 72,291,533 shares of Class A Common Stock outstanding as of February 23, 2017, as reported in the Form 10-K, and 1,117,326 and 1,675,013 shares of Class A Common Stock into which affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., respectively, exchanged shares of Class B Common Stock and Units in connection with the transactions described in Items 3, 4 and 6 of this Schedule 13D. The percentage excludes the effect of shares of Class A Common Stock issuable on exchange of currently outstanding Units and shares of Class B Common Stock of the Issuer. In the event that all outstanding Units and shares of Class B Common Stock are exchanged for shares of Class A Common Stock, such percentage would be equal to 5.3%, which is calculated based on the number of outstanding shares of Class A Common Stock set forth above and 38,434,658 shares of Class B Common Stock and Units outstanding as of February 23, 2017, as reported in the Form 10-K, less the 2,792,339 shares of Class B Common Stock and Units exchanged into shares of Class A Common Stock as set forth above.


CUSIP No. 505743 104

 

  1   

NAME OF REPORTING PERSON

 

RREFII ACQUISITIONS, LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

 

(a)  ☐        (b)  ☐

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

5,886,681

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

5,886,681

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

5,886,681*

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.8%*

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

* The percentage set forth above is calculated based on 72,291,533 shares of Class A Common Stock outstanding as of February 23, 2017, as reported in the Form 10-K, and 1,117,326 and 1,675,013 shares of Class A Common Stock into which affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., respectively, exchanged shares of Class B Common Stock and Units in connection with the transactions described in Items 3, 4 and 6 of this Schedule 13D. The percentage excludes the effect of shares of Class A Common Stock issuable on exchange of currently outstanding Units and shares of Class B Common Stock of the Issuer. In the event that all outstanding Units and shares of Class B Common Stock are exchanged for shares of Class A Common Stock, such percentage would be equal to 5.3%, which is calculated based on the number of outstanding shares of Class A Common Stock set forth above and 38,434,658 shares of Class B Common Stock and Units outstanding as of February 23, 2017, as reported in the Form 10-K, less the 2,792,339 shares of Class B Common Stock and Units exchanged into shares of Class A Common Stock as set forth above.


CUSIP No. 505743 104

 

  1   

NAME OF REPORTING PERSON

 

RREF II LADDER LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

 

(a)  ☐        (b)  ☐

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

AF

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

5,886,681

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

5,886,681

11  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

5,886,681*

12  

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

13  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

7.8%*

14  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

* The percentage set forth above is calculated based on 72,291,533 shares of Class A Common Stock outstanding as of February 23, 2017, as reported in the Form 10-K, and 1,117,326 and 1,675,013 shares of Class A Common Stock into which affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., respectively, exchanged shares of Class B Common Stock and Units in connection with the transactions described in Items 3, 4 and 6 of this Schedule 13D. The percentage excludes the effect of shares of Class A Common Stock issuable on exchange of currently outstanding Units and shares of Class B Common Stock of the Issuer. In the event that all outstanding Units and shares of Class B Common Stock are exchanged for shares of Class A Common Stock, such percentage would be equal to 5.3%, which is calculated based on the number of outstanding shares of Class A Common Stock set forth above and 38,434,658 shares of Class B Common Stock and Units outstanding as of February 23, 2017, as reported in the Form 10-K, less the 2,792,339 shares of Class B Common Stock and Units exchanged into shares of Class A Common Stock as set forth above.


Item 1. Security and Issuer

This Schedule 13D relates to the Class A Common Stock, par value $0.001 per share (“Shares”), of Ladder Capital Corp, a Delaware corporation (the “Issuer”). The principal executive offices of the Issuer are located at 345 Park Avenue, 8th Floor, New York, New York 10154.

Item 2. Identity and Background

(a) and (f) This Schedule 13D is filed jointly by the following entities and persons, all of whom are together referred to herein as the “Reporting Persons”:

Related Fund Management, LLC, a Delaware limited liability company (“Related Management”), Related Real Estate Fund II GP-A, LLC, a Delaware limited liability company (“Related GP-A”), Related Real Estate Fund II GP, L.P., a Delaware limited partnership (“Related GP”), Related Real Estate Fund II, L.P., a Delaware limited partnership (“Related Fund”), RREFII Acquisitions, LLC, a Delaware limited liability company (“RREFII Acquisitions”), and RREF II Ladder LLC, a Delaware limited liability company (“RREF Ladder”). This Schedule 13D reports Shares held for the account of RREF Ladder, all the membership interests of which are held by RREFII Acquisitions. Related Fund, a private investment fund for which Related Management acts as investment adviser, holds all membership interests of RREFII Acquisitions. Related Management holds all membership interests of Related GP-A, which, in turn, is the general partner of Related GP. Related GP is the general partner of Related Fund.

A joint filing agreement of the Reporting Persons is attached as Exhibit 1 to this Schedule 13D.

(b) – (c) The Related Companies, L.P., a New York limited partnership (“Related Companies”), is the managing member of Related Management. Related Companies owns and operates real estate assets. Related Companies’ general partner is The Related Realty Group, Inc., a Delaware corporation (“Realty Group”) owned by Stephen M. Ross (“Ross”). The name, citizenship, present principal occupation or employment and business address of each director and executive officer of each of the Reporting Persons, Related Companies and Realty Group is attached as Exhibit 2 to this Schedule 13D. The principal business address of each of the Reporting Persons, Related Companies and Realty Group is 60 Columbus Circle, New York, NY 10023. Each of Related Companies, Realty Group, Ross and the other individuals listed in Exhibit 2 disclaim beneficial ownership of all Shares held by RREF Ladder or any other Reporting Person.

(d) – (e) During the last five years, none of the Reporting Persons nor, to their knowledge, any of Related Companies, Realty Group or the individuals listed in Exhibit 2, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

Item 3. Source and Amount of Funds or Other Consideration

The Reporting Persons may be deemed to be the beneficial owner of, in the aggregate, 5,886,681 Shares. On February 27, 2017, RREF Ladder, certain pre-IPO stockholders of the Issuer, including affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., and, solely for purposes of Section 2.3(c) and Section 3.3 therein, the Issuer, entered into a Stock Purchase Agreement (the “Purchase Agreement”), pursuant to which RREF Ladder purchased 5,886,681 Shares from the pre-IPO stockholders for $80.0 million on March 3, 2017. The Shares were acquired with working capital of Related Fund.

The foregoing summary of the Purchase Agreement is qualified in its entirety by reference to the Purchase Agreement filed as Exhibit 3 herewith, which is incorporated by reference herein.

The Reporting Persons may effect purchases of Shares through margin accounts maintained for them with brokers, which extend margin credit as and when required to open or carry positions in their margin accounts, subject to applicable federal margin regulations, stock exchange rules and such firms’ credit policies. Positions in Shares may be held in margin accounts and may be pledged as collateral security for the repayment of debit balances in such accounts. Such margin accounts may from time to time have debit balances. In addition, since other securities may be held in such margin accounts, it may not be possible to determine the amounts, if any, of margin used to provide financing related to the Shares.

The information set forth under Item 6 below is incorporated by reference into this Item 3 in its entirety.


Item 4. Purpose of Transaction.

Each of the Reporting Persons acquired the Shares over which it exercises dispositive beneficial ownership in the belief that the Shares are undervalued. The Reporting Persons intend to have conversations, meetings and other communications with the management and Board of Directors of the Issuer, stockholders and other persons, in each case to discuss the Issuer’s business, strategies and other matters related to the Issuer. These communications may include a discussion of options for enhancing stockholder value through various strategic alternatives.

The Reporting Persons intend to review their respective investment in the Issuer on a continuing basis and may from time to time and at any time in the future, depending on various factors, including, without limitation, the outcome of any discussions referenced above, the Issuer’s financial position and strategic direction, actions taken by the Board of Directors of the Issuer, price levels of the Shares, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, take such actions with respect to the investment in the Issuer as they deem appropriate (subject to applicable contractual restrictions, including the Stockholders Agreement and the Lock-Up Agreement), including: (i) acquiring additional Shares and/or other equity, debt, notes, other securities, or derivative or other instruments that are based upon or relate to the value of the Shares or the Issuer (collectively, “Securities”) in the open market or otherwise; (ii) disposing of any or all of their Securities in the open market or otherwise; (iii) engaging in any hedging or similar transactions with respect to the Securities; (iv) advocating a sale or transfer of a material amount of assets of the Issuer or its subsidiaries or (v) proposing or considering one or more of the actions described in subsections (a) through (j) of Item 4 of Schedule 13D.

The foregoing is subject to change at any time, without notice, and there can be no assurance that the Reporting Persons will take any of the actions set forth above. Except as otherwise described above in this Item 4, the Reporting Persons currently have no plan(s) or proposal(s) that relate to, or would result, in any of the events or transactions described in Item 4(a) through (j) of Schedule 13D, although each of the Reporting Persons reserves the right to formulate such plans or proposals in the future.

The information set forth under Item 6 below is incorporated by reference into this Item 4 in its entirety.

Item 5. Interest in Securities of the Issuer.

(a)-(b) Each of the Reporting Persons may be deemed to be the beneficial owner of 5,886,681 Shares, which represents approximately 7.8% of the outstanding Shares. This percentage is calculated based on 72,291,533 Shares outstanding as of February 23, 2017, as reported on the Issuer’s Annual Report in Form 10-K for the year ended December 31, 2016 filed with the SEC on February 24, 2017 (the “Form 10-K”), and 1,117,326 and 1,675,013 Shares into which affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., respectively, exchanged shares of Class B Common Stock and units of Series REIT of Ladder Capital Finance Holdings (“LCFH”) and units of Series TRS of LCFH (collectively, “Units”) in connection with the transactions described in Items 3, 4 and 6 of this Schedule 13D. The percentage excludes the effect of Shares issuable on exchange of currently outstanding Units and shares of Class B Common Stock of the Issuer. In the event that all outstanding Units and shares of Class B Common Stock are exchanged for Shares, such percentage would be equal to 5.3%, which is calculated based on the number of outstanding Shares set forth above and 38,434,658 shares of Class B Common Stock and Units outstanding as of February 23, 2017, as reported in the Form 10-K, less the 2,792,339 shares of Class B Common Stock and Units exchanged into shares of Class A Common Stock as set forth above.

By virtue of their relationship, as described in Item 2 above, the Reporting Persons may be deemed to share voting power and dispositive power with respect to the Shares.

(c) Except as set forth in Items 3, 4 and 6 of this Schedule 13D, there have been no transactions with respect to the Shares during the sixty days prior to the date of filing of this Schedule 13D by any of the Reporting Persons or, to their knowledge, any other person or entity referred to in Item 2 of this Schedule 13D.

(d) Except as set forth below, no person is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Shares beneficially owned by any of the Reporting Persons, other than the Reporting Persons themselves and investment funds, institutions and mutual funds for which some of the Reporting Persons provide management services.

The limited partners of Related Fund have the right to participate in the receipt of certain dividends and proceeds from the sale of the Shares, in each case in accordance with their respective limited partnership interests.

(e) Not applicable.


Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

The information set forth under Items 3, 4 and 5 of this Schedule 13D are incorporated by reference into this Item 6 in its entirety.

Stockholders Agreement

In connection with the Purchase Agreement, on March 3, 2017, RREF Ladder and the Issuer entered into a Stockholders Agreement (the “Stockholders Agreement”), attached as Exhibit 4 herewith, pursuant to which Richard O’Toole, Executive Vice President and General Counsel of Related Companies and Executive Vice President of RREF Ladder, was appointed to the Board of Directors of the Issuer. The Stockholders Agreement also provides that RREF Ladder and affiliates of Related Companies will be bound by restrictions on their ability to acquire additional Shares until the later to occur of (i) the date on which Mr. O’Toole or a replacement director, if one is so appointed by RREF Ladder prior to December 31, 2017, is no longer serving on the Issuer’s Board of Directors and (ii) March 3, 2019.

The foregoing summary of the Stockholders Agreement is qualified in its entirety by reference to the Stockholders Agreement filed as Exhibit 4 herewith, which is incorporated by reference herein.

Lock-Up Agreement

Also in connection with the Purchase Agreement, on March 3, 2017, RREF Ladder and Deutsche Bank Securities Inc., financial advisor to the Issuer, entered into a Lock-Up Agreement (the “Lock-Up Agreement”), attached as Exhibit 5 herewith, which provides that RREF Ladder and affiliates of Related Companies to which it transfers Shares will be bound by restrictions on the transfer of their Shares through February 27, 2018.

The foregoing summary of the Lock-Up Agreement is qualified in its entirety by reference to the Lock-Up Agreement filed as Exhibit 5 herewith, which is incorporated by reference herein.

Registration Rights Agreement

Also on March 3, 2017, in connection with the Purchase Agreement, RREF Ladder, the pre-IPO stockholders and the Issuer entered into a Second Amended and Restated Registration Rights Agreement (the “Registration Rights Agreement”), attached as Exhibit 6 herewith, providing, among other things, RREF Ladder with customary registration rights with respect to the Shares.

The Registration Rights Agreement grants RREF Ladder certain “demand” registration rights for underwritten offerings and “piggyback” registration rights with respect to Shares held by RREF Ladder (whether purchased pursuant to the Purchase Agreement or acquired thereafter) and its transferees. All reasonable expenses incident to such registrations generally are required to be borne by the Issuer.

The foregoing summary of the Registration Rights Agreement is qualified in its entirety by reference to the Registration Rights Agreement filed as Exhibit 6 herewith, which is incorporated by reference herein.

Except for the arrangements described herein, to the best knowledge of the Reporting Persons, there are no contracts, arrangements, understandings or relationships (legal or otherwise) among the persons named in Item 2 and between such persons and any other person with respect to any securities of the Issuer, including but not limited to, transfer or voting of any of the securities, finder’s fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or loss, or the giving or withholding of proxies.


Item 7. Material to be Filed as Exhibits.

 

Exhibit

  

Description

Exhibit 1

   Joint Filing Agreement, dated as of March 13, 2017, among the Reporting Persons.

Exhibit 2

   Directors and Executive Officers of Reporting Persons, Related Companies and Realty Group

Exhibit 3

   Stock Purchase Agreement, dated as of February 27, 2017, by and among RREF II Ladder LLC, GI Ladder Holdco LLC, GI Partners Fund III-B, L.P., GI Partners Fund III-A, L.P., TI II Ladder Holdings, LLC, TowerBrook Investors II AIV, L.P., GP09 PX (LAPP) Ladder Capital LTD., GP09 GV Ladder Capital LTD., GP09 PX Ladder Capital LTD. and OCP LCF Holdings Inc.

Exhibit 4*

   Stockholders Agreement, dated March 3, 2017, by and among Ladder Capital Corp, RREF II Ladder LLC and any permitted transferee that becomes a party thereto by executing and delivering a joinder thereto.

Exhibit 5

   Lock-Up Agreement, dated March 3, 2017, by and between Deutsche Bank Securities Inc. and RREF II Ladder LLC.

Exhibit 6**

   Second Amended and Restated Registration Rights Agreement, dated as of March 3, 2017, by and among Ladder Capital Corp, Ladder Capital Finance Holdings LLLP, and each of the investors named therein.

 

* Incorporated by reference to Exhibit 99.1 to the Current Report on Form 8-K filed by Ladder Capital Corp on March 3, 2017.
** Incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K filed by Ladder Capital Corp on March 3, 2017.


SIGNATURES

After reasonable inquiry and to the best of our knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Date:    March 13, 2017     RELATED FUND MANAGEMENT, LLC
    By:  

/s/ Richard O’Toole

      Richard O’Toole
      Vice President
Date:    March 13, 2017     RELATED REAL ESTATE FUND II GP-A, LLC
    By:  

/s/ Richard O’Toole

      Richard O’Toole
      Executive Vice President
Date:    March 13, 2017     RELATED REAL ESTATE FUND II GP, L.P.
    By:   Related Real Estate Fund II GP-A, LLC, its general partner
    By:  

/s/ Richard O’Toole

      Richard O’Toole
      Executive Vice President
Date:    March 13, 2017     RELATED REAL ESTATE FUND II, L.P.
    By:   Related Real Estate Fund II GP, L.P., its general partner
    By:   Related Real Estate Fund II GP-A, LLC, its general partner
    By:  

/s/ Richard O’Toole

      Richard O’Toole
      Executive Vice President
Date:    March 13, 2017     RREFII ACQUISITIONS, LLC
    By:  

/s/ Richard O’Toole

      Richard O’Toole
      Vice President
Date:    March 13, 2017     RREF II LADDER LLC
    By:  

/s/ Richard O’Toole

      Richard O’Toole
      Executive Vice President

 

Exhibit 1

AGREEMENT

JOINT FILING OF SCHEDULE 13D

The undersigned hereby agree to jointly prepare and file with regulatory authorities this Schedule 13D and any future amendments thereto reporting each of the undersigned’s ownership of securities of Ladder Capital Corp, and hereby affirm that such Schedule 13D is being filed on behalf of each of the undersigned pursuant to and in accordance with the provisions of Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning him or it contained therein, but shall not be responsible for the completeness and accuracy of the information concerning the other, except to the extent that he or it knows or has reason to believe that such information is inaccurate.

 

Date:    March 13, 2017  

RELATED FUND MANAGEMENT, LLC

 

By: /s/ Richard O’Toole                                                                                                  

        Richard O’Toole

        Vice President

Date:    March 13, 2017  

RELATED REAL ESTATE FUND II GP-A, LLC

 

By: /s/ Richard O’Toole                                                                                                  

        Richard O’Toole

        Executive Vice President

Date:    March 13, 2017  

RELATED REAL ESTATE FUND II GP, L.P.

 

By: Related Real Estate Fund II GP-A, LLC, its general partner

 

By: /s/ Richard O’Toole                                                                                                  

        Richard O’Toole

        Executive Vice President

Date:    March 13, 2017  

RELATED REAL ESTATE FUND II, L.P.

 

By: Related Real Estate Fund II GP, L.P., its general partner

 

By: Related Real Estate Fund II GP-A, LLC, its general partner

 

By: /s/ Richard O’Toole                                                                                                  

        Richard O’Toole

        Executive Vice President

Date:    March 13, 2017  

RREFII ACQUISITIONS, LLC

 

By: /s/ Richard O’Toole                                                                                                  

        Richard O’Toole

        Vice President

Date:    March 13, 2017  

RREF II LADDER LLC

 

By: /s/ Richard O’Toole                                                                                                  

        Richard O’Toole

        Executive Vice President

 

Exhibit 2

DIRECTORS AND EXECUTIVE OFFICERS OF EACH REPORTING PERSON, RELATED COMPANIES AND REALTY

GROUP

RELATED FUND MANAGEMENT, LLC

 

Name of

Officer or Director

  

Principal Business Address

  

Title

  

Citizenship

Justin Metz   

60 Columbus Circle,

New York, NY 10023

   President    United States
Jeff T. Blau   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Bruce A. Beal, Jr.   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Michael J. Brenner   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Richard O’Toole   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
James Kraus   

60 Columbus Circle,

New York, NY 10023

   Chief Financial Officer    United States
Suzanne Zacharias   

60 Columbus Circle,

New York, NY 10023

   Chief Compliance Officer    United States

RELATED REAL ESTATE FUND II GP-A, LLC

 

Name of

Officer or Director

  

Principal Business Address

  

Title

  

Citizenship

Justin Metz   

60 Columbus Circle,

New York, NY 10023

   President    United States
Jeff T. Blau   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Bruce A. Beal, Jr.   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Michael J. Brenner   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Richard O’Toole   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States

RELATED REAL ESTATE FUND II GP, L.P.

 

Name of

Officer or Director

  

Principal Business Address

  

Title

  

Citizenship

None.         

RELATED REAL ESTATE FUND II, L.P.

 

Name of

Officer or Director

  

Principal Business Address

  

Title

  

Citizenship

None.         

 


RREFII Acquisitions, LLC

 

Name of

Officer or Director

  

Principal Business Address

  

Title

  

Citizenship

Justin Metz   

60 Columbus Circle,

New York, NY 10023

   President    United States
Jeff T. Blau   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Bruce A. Beal, Jr.   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Michael J. Brenner   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Richard O’Toole   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
Jason Morrow   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
Jeffrey Romanow   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
Michael Winston   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
Patrick Martin   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
Patrick Sweeney   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
Paul Izzo   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States
Seth Blau   

60 Columbus Circle,

New York, NY 10023

   Vice President    United States

RREF II Ladder LLC

 

Name of

Officer or Director

  

Principal Business Address

  

Title

  

Citizenship

Justin Metz   

60 Columbus Circle,

New York, NY 10023

   President    United States
Jeff T. Blau   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Bruce A. Beal, Jr.   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Michael J. Brenner   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Richard O’Toole   

60 Columbus Circle,

New York, NY 10023

   Executive Vice President    United States
Seth Blau   

60 Columbus Circle,

New York, NY 10023

   Senior Vice President    United States

THE RELATED COMPANIES, L.P.

 

Name of

Officer or Director

  

Principal Business Address

  

Title

  

Citizenship

None.         

Exhibit 3

STOCK PURCHASE AGREEMENT

THIS STOCK PURCHASE AGREEMENT (this “ Agreement ”), dated as of February 27, 2017, by and among RREF II Ladder LLC, a Delaware limited liability company (“ Purchaser ”), each of the legal entities set forth on Exhibit  A (each, a “ Seller ” and collectively, the “ Sellers ”), and, solely for purposes of Section 2.3(c) and Section 3.3 hereof, Ladder Capital Corp, a Delaware corporation (the “ Company ”).

RECITALS

WHEREAS , each Seller desires to sell, and Purchaser desires to purchase, the number of shares of Class A Common Stock, par value $0.001 per share (the “ Common Stock ”), of the Company set forth opposite such Seller’s name on Exhibit  A (collectively, the “ Shares ”) on the terms and subject to the conditions set forth herein.

AGREEMENT

NOW, THEREFORE , in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the parties agree as follows:

ARTICLE I

CERTAIN DEFINITIONS AND CONSTRUCTION

Section 1.1 Certain Definitions . As used in this Agreement, the following terms have the meanings set forth below:

Affiliate ” of a Person is any other Person that directly or indirectly controls, is controlled by, or is under common control with such specified Person, and “Affiliated” shall have a correlative meaning. For purposes of this definition, the term “control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any Person, means the power to, directly or indirectly, direct or cause the direction of the affairs or management of such Person, whether through the ownership of voting securities, as trustee or executor, by contract or any other means.

AIMCo Funds ” means, collectively, GP09 PX (LAPP) LADDER CAPITAL LTD., GP09 GV LADDER CAPITAL LTD. and GP09 PX LADDER CAPITAL LTD. (each, an “ AIMCo Fund ”).

Business Day ” means any day, other than a Saturday or Sunday, on which commercial banks are not required or authorized to close in New York, New York.

Contract ” means any agreement, obligation, contract, license, indenture or other binding arrangement, whether written or oral.


Encumbrance ” means any lien, pledge, charge, encumbrance, security interest, option, mortgage, easement, restriction (including restrictive covenants or deed restrictions in connection with environmental or remedial obligations), lease, sublease, right of way, right of refusal or offer, claim, restriction on transfer, restriction on voting or other similar restriction, including any voting agreement or proxy, but excluding any transfer restrictions under applicable federal and state securities laws.

GI Funds ” means, collectively, GI LADDER HOLDCO LLC, GI PARTNERS FUND III-B, L.P. and GI PARTNERS FUND III-A, L.P. (each, a “ GI Fund ”).

Governmental Entity ” means any United States or foreign (i) federal, state, local, municipal or other government, (ii) governmental or quasi-governmental entity of any nature (including, without limitation, any governmental agency, branch, department, official or entity and any court or other tribunal), (iii) body exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, including, without limitation, any arbitral tribunal and self-regulatory organizations, or (iv) any national securities exchange or national quotation system.

Law ” means any applicable federal, state, local or foreign law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Entity.

OMERS ” means OCP LCF HOLDINGS INC.

Per Share Purchase Price ” means $13.59 per Share.

Partnership Agreement ” means the Third Amended and Restated Limited Liability Limited Partnership Agreement, dated as of December 31, 2014, by and among Ladder Capital Finance Holdings LLLP, each general partner and each person party thereto or otherwise bound as a limited partner, as amended as of the date hereof.

Person ” means any natural person, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, foundation, unincorporated organization or government or other agency or political subdivision thereof, or any other entity or group comprised of two or more of the foregoing.

Proceeding ” means any suit, action, proceeding, arbitration, mediation, audit, hearing or, to the knowledge of the Person in question, inquiry or investigation (in each case, whether civil, criminal, administrative, investigative, formal or informal) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Entity.

Purchase Price ” means $79,999,994.79.

Registration Rights Agreement ” means the Amended and Restated Registration Rights Agreement, dated as of February 11, 2014, by and among the Company, the Sellers and the other parties named therein, as amended as of the date hereof.

Specified Contracts ” means, collectively, the Registration Rights Agreement and the Partnership Agreement.

 

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TowerBrook Funds ” means, collectively, TI II LADDER HOLDINGS, LLC and TOWERBROOK INVESTORS II AIV, L.P. (each, a “ TowerBrook Fund ”).

Section 1.2 Additional Definitions .

 

Agreement

   Preamble

Bankruptcy and Equity Limitation

   Section 3.1(c)

Board

   Section 5.3(c)

Chosen Courts

   Section 6.4(b)

Closing

   Section 2.2

Closing Date

   Section 2.2

Common Stock

   Recitals

Company

   Preamble

Order

   Section 5.1(a)

Purchaser

   Preamble

Second Amended and Restated Registration Rights Agreement

   Section 2.3(a)

Seller

   Preamble

Sellers

   Preamble

Shares

   Recitals

Stockholders Agreement

   Section 2.3(a)

Transaction

   Section 2.1

UCC

   Section 3.1(d)

Section 1.3 Headings . The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

Section 1.4 Construction . Unless the context otherwise requires, as used in this Agreement: (i) “or” is not exclusive; (ii) “including” and its variants mean “including, without limitation” and its variants; (iii) words defined in the singular have the parallel meaning in the plural and vice versa; (iv) references to “written” or “in writing” include in visual electronic form; (v) words of one gender shall be construed to apply to each gender; (vi) the term “Section” refers to the specified Section of this Agreement; (vii) the terms “Dollars” and “$” mean United States Dollars; and (viii) the word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other thing extends and such phrase shall not mean simply “if”.

ARTICLE II

THE TRANSACTION; THE CLOSING

Section 2.1 The Transaction . On the terms and subject to the conditions set forth herein, each Seller agrees to sell all the Shares set forth opposite such Seller’s name on Exhibit  A , and Purchaser agrees to purchase all the Shares, for the Per Share Purchase Price (the “ Transaction ”).

Section 2.2 The Closing . Unless otherwise mutually agreed in writing among Purchaser and the Sellers, the closing of the sale and purchase of the Shares (the “ Closing ”) shall take place at the offices of Kirkland & Ellis LLP, 601 Lexington Avenue, New York, New York, or at such other place or through such other means as the parties may agree, on March 3, 2017, subject to satisfaction of the conditions in ARTICLE V hereof (the “ Closing Date ”).

 

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Section 2.3 Closing Deliveries .

(a) Deliveries by Purchaser . At the Closing, Purchaser shall deliver, or cause to be delivered, to the Sellers (i) the Purchase Price, in immediately available funds by wire transfer to one or more bank accounts designated by the Sellers, (ii) the stockholders agreement, in the form attached hereto as Exhibit  B (the “ Stockholders Agreement ”), duly executed by Purchaser, and (iii) the registration rights agreement, in the form attached hereto as Exhibit  C (the “ Second Amended and Restated Registration Rights Agreement ”), duly executed by Purchaser.

(b) Deliveries by each Seller . At or prior to the Closing, each Seller shall deliver, or cause to be delivered, to Purchaser (i) such Seller’s Shares, duly registered in the name of Purchaser, (ii) the Second Amended and Restated Registration Rights Agreement, duly executed by such Seller, and (iii) a properly executed IRS Form W-9 or W-8, as applicable.

(c) Deliveries by the Company . At or prior to the Closing, the Company shall deliver, or cause to be delivered, to Purchaser (i) the Stockholders Agreement, duly executed by the Company, and (ii) the Second Amended and Restated Registration Rights Agreement, duly executed by the Company and each party thereto other than Purchaser or the Sellers.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Section 3.1 Representations and Warranties of each Seller . Each Seller, severally and not jointly, represents and warrants to Purchaser as to itself:

(a) Organization . The Seller (i) is duly organized and is validly existing and in good standing, to the extent the concept of good standing is applicable, under the Laws of its jurisdiction of organization, (ii) has been duly qualified as a foreign corporation or other form of entity for the transaction of business, and (iii) where applicable, is in good standing under the Laws of each other jurisdiction in which it operates so as to require such qualification, except where the failure to be so qualified or in good standing would not, individually or in the aggregate, have or be reasonably expected to materially delay or prevent the consummation of the Transaction.

(b) Power and Authority . The Seller has the requisite power and authority to enter into, execute and deliver this Agreement and to perform its obligations hereunder and has taken all necessary action required for the due authorization, execution, delivery and performance by it of this Agreement.

(c) Execution and Delivery . This Agreement has been duly and validly executed and delivered by the Seller and, once duly and validly executed and delivered by the other parties hereto, will constitute its valid and binding obligation, enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar Laws relating to or affecting generally the enforcement of creditors’ interests, (ii) the availability of equitable remedies (whether in a Proceeding in equity or at Law) (collectively, the “ Bankruptcy and Equity Limitation ”) and (iii) the enforceability of the exclusive jurisdiction provisions contained in Section 6.4 hereof.

 

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(d) Ownership of Shares . Exhibit A sets forth opposite such Seller’s name a complete and correct list of the Shares to be sold by such Seller pursuant to this Agreement. The Seller is, or will be prior to the Closing, the record and beneficial owner of the Shares set forth opposite such Seller’s name in Exhibit A, free and clear of all Encumbrances and has full power and authority to sell such Shares. Assuming that Purchaser acquires such Shares without notice of any adverse claim (within the meaning of Section 8-105 of the New York Uniform Commercial Code (“ UCC ”)) on the Closing Date by making payment therefor as provided herein, Purchaser will have acquired a security entitlement (within the meaning of Section 8-102(a)(17) of the UCC) to any such Shares delivered to The Depository Trust Company or other securities intermediary and credited to the securities account or accounts of Purchaser maintained with The Depository Trust Company or such other securities intermediary, and no action based on an adverse claim (within the meaning of Section 8-105 of the UCC) may be asserted against Purchaser with respect to such Shares.

(e) No Conflict . The execution and delivery of this Agreement and the performance by the Seller of its obligations hereunder and compliance by the Seller with all of the provisions hereof and the consummation of the Transaction by such Seller (i) shall not conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute a default under, or result in the acceleration of, or the creation of any Encumbrance under, or give rise to any termination right under, any of the Specified Contracts, (ii) shall not result in any violation or breach of any provisions of the organizational documents of the Seller and (iii) shall not conflict with or result in any violation of, or any termination or material impairment of any rights under, any statute or any license, authorization, Order, rule or regulation of any Governmental Entity having jurisdiction over the Seller or any of the Seller’s properties or assets, except with respect to each of (i), (ii) and (iii), such conflicts, violations or defaults as would not be reasonably expected to have a material adverse effect on the ability of the Seller to consummate the Transaction.

(f) Contracts . Except for the Specified Contracts, there is no existing option, warrant, call, right or Contract of any character to which the Seller is a party requiring, and there are no securities outstanding which upon conversion or exchange would require, the sale or transfer of (or the making of an offer to sell or transfer of) such Seller’s Shares. The Seller is not a party to any Contract with respect to the voting, redemption, sale, transfer or other disposition of such Seller’s Shares, except for this Agreement and the Specified Contracts.

(g) Consents and Approvals . Other than the filings and/or notices under the Securities Exchange Act of 1934, as amended, no consent, approval, Order, authorization, registration or qualification of or with any Governmental Entity having jurisdiction over such Seller is required in connection with the execution and delivery by such Seller of this Agreement or the consummation of the Transaction, except where the failure to obtain the foregoing would not reasonably be expected to have a material adverse effect on the ability of the Seller to consummate the Transaction.

 

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(h) Legal Proceedings . As of the date hereof, there are no legal, governmental or regulatory Proceedings pending or, to the knowledge of the Seller, threatened against the Seller which, individually or in the aggregate, if determined adversely to such Seller, would materially and adversely affect the ability of such Seller to perform its obligations under this Agreement.

(i) No Broker’s Fees . The Seller is not a party to any Contract, agreement or understanding with any Person that would give rise to a valid claim against Purchaser for an investment banking fee, commission, finder’s fee or like payment in connection with the Transaction.

(j) Sophistication of the Seller .

(i) The Seller has such knowledge, sophistication and experience in financial and business matters that such Seller is capable of evaluating the merits and risks of entering into this Agreement and consummating the Transaction.

(ii) The Seller has relied solely on its own independent investigation in valuing such Seller’s Shares and determining to proceed with the Transaction. The Seller has not relied on any assertions made by Purchaser, any of its Affiliates, or any Person representing or acting on behalf of Purchaser regarding the Company, such Seller’s Shares or the valuation thereof.

(iii) The Seller has or has access to all information that it believes to be necessary, sufficient or appropriate in connection with the Transaction. The Seller has previously undertaken such independent investigation of the Company as in its judgment is appropriate to make an informed decision with respect to the Transaction, and the Seller has made its own decision to consummate the Transaction based on its own independent review and consultations with such investment, legal, tax, accounting and other advisers as it has deemed necessary.

(iv) The Seller understands and acknowledges that, except as otherwise set forth in Section 3.2, Purchaser makes no representation or warranty to it, express or implied, with respect to the Company, the Shares, the Transaction or the accuracy, completeness or adequacy of any publicly available information regarding the Company or its Affiliates, nor shall Purchaser be liable for any loss or damages of any kind resulting from the use of any information (other than the representations and warranties set forth in Section 3.2) supplied to such Seller.

(v) The Seller hereby expressly releases Purchaser and its officers, employees, agents and controlling persons from any and all liabilities arising from or in connection with the disclosure of any information in connection with the Transaction (including, without limitation, with respect to the accuracy of information or the failure to disclose information), and the Seller hereby agrees to make no claim (and it hereby waives and releases all claims that it may otherwise have) against Purchaser and its officers, employees, agents and controlling persons from or in connection with the disclosure of any information in connection with the Transaction (including, without limitation, with respect to the accuracy of information or the failure to disclose information) whether arising before, in connection with or after the date of this Agreement. The Seller hereby agrees that the release and waiver contained in this paragraph is unconditional and irrevocable.

 

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(k) Clean Hands . The Seller is familiar with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “ 10-K ”). The sale of the Seller’s Shares pursuant hereto is not prompted by any material, non-public fact, condition or information concerning the Company or its subsidiaries known to the Seller that is not set forth in the 10-K or the Company’s other filings with the Securities and Exchange Commission.

(l) No Other Representations or Warranties . Except for the representations and warranties made by the Seller in this Section 3.1, neither such Seller nor any other Person on behalf of such Seller makes any representation or warranty with respect to such Seller or any other Seller or any of their respective assets, liabilities, condition (financial or otherwise) or prospects.

(m) Acknowledgement . The Seller acknowledges that Purchaser is relying on the representations and agreements set forth in this Section 3.1 in engaging in the Transaction, and would not engage in the Transaction in the absence of such representations and agreements. The Seller acknowledges that (i) neither Purchaser nor any Person on behalf of Purchaser is making any representations or warranties whatsoever, express or implied, beyond those expressly made by Purchaser in Section 3.2 and (ii) the Seller has not been induced by, or relied upon, any representations, warranties or statements (written or oral), whether express or implied, made by any Person, that are not expressly set forth in Section 3.2. The Seller acknowledges that Kirkland & Ellis LLP is entitled to rely on the representations and agreements set forth in this Section 3.1 in delivering any legal opinion letter regarding the Transaction to the Company’s transfer agent on behalf of the Company.

Section 3.2 Representations and Warranties of Purchaser . Purchaser represents and warrants to the Sellers:

(a) Organization . Purchaser is duly organized and is validly existing and in good standing under the Laws of its jurisdiction of organization. Purchaser has been duly qualified as a foreign entity for the transaction of business and, where applicable, is in good standing under the Laws of each other jurisdiction in which it operates so as to require such qualification, except where the failure to be so qualified or in good standing would not, individually or in the aggregate, have or be reasonably expected to materially delay or prevent the consummation of the Transaction.

(b) Power and Authority . Purchaser has the requisite power and authority to enter into, execute and deliver this Agreement and to perform its obligations hereunder and has taken all necessary action required for the due authorization, execution, delivery and performance by it of this Agreement.

 

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(c) Execution and Delivery . This Agreement has been duly and validly executed and delivered by Purchaser and constitutes its valid and binding obligation, enforceable against Purchaser in accordance with its terms, subject to the Bankruptcy and Equity Limitation.

(d) No Conflict . The execution and delivery of this Agreement and the performance by Purchaser of its obligations hereunder and compliance by Purchaser with all of the provisions hereof and the consummation of the Transaction (i) shall not conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute a default under, or result in the acceleration of, or the creation of any Encumbrance under, or give rise to any termination right under, any material contract to which Purchaser is a party, (ii) shall not result in any violation or breach of any provisions of the organizational documents of Purchaser and (iii) shall not conflict with or result in any violation of, or any termination or material impairment of any rights under, any statute or any license, authorization, Order, rule or regulation of any Governmental Entity having jurisdiction over Purchaser or its properties or assets, except with respect to each of (i), (ii) and (iii), such conflicts, violations or defaults as would not be reasonably expected to have a material adverse effect on the ability of Purchaser to consummate the Transaction.

(e) Consents and Approvals . No consent, approval, order, authorization, registration or qualification of or with any Governmental Entity having jurisdiction over Purchaser is required in connection with the execution and delivery by Purchaser of this Agreement or the consummation of the Transaction.

(f) Legal Proceedings . As of the date hereof, there are no legal, governmental or regulatory Proceedings pending or, to the knowledge of Purchaser, threatened against Purchaser which, individually or in the aggregate, if determined adversely to Purchaser, would materially and adversely affect the ability of Purchaser to perform its obligations under this Agreement.

(g) No Broker’s Fees . Purchaser is not a party to any contract, agreement or understanding with any Person that would give rise to a valid claim against any Seller for an investment banking fee, commission, finder’s fee or like payment in connection with the Transaction.

(h) Sophistication of Purchaser .

(i) Purchaser has such knowledge, sophistication and experience in financial and business matters that Purchaser is capable of evaluating the merits and risks of entering into this Agreement and consummating the Transaction.

(ii) Purchaser has relied solely on its own independent investigation in valuing the Shares and determining to proceed with the Transaction. Purchaser has not relied on any assertions made by any Seller, any of their respective Affiliates, or any Person representing or acting on behalf of any Seller regarding the Company, the Sellers, the Shares or the valuation thereof.

 

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(iii) Purchaser has or has access to all information that it believes to be necessary, sufficient or appropriate in connection with the Transaction. Purchaser has previously undertaken such independent investigation of the Company as in its judgment is appropriate to make an informed decision with respect to the Transaction, and Purchaser has made its own decision to consummate the Transaction based on its own independent review and consultations with such investment, legal, tax, accounting and other advisers as it has deemed necessary and without reliance on any express or implied representation or warranty of any Seller.

(iv) Purchaser understands and acknowledges that, except as otherwise set forth in Section 3.1, the Sellers make no representation or warranty to it, express or implied, with respect to the Company, the Shares, the Transaction or the accuracy, completeness or adequacy of any publicly available information regarding the Company or its Affiliates, nor shall any Seller be liable for any loss or damages of any kind resulting from the use of any information (other than the representations and warranties set forth in Section 3.1) supplied to Purchaser.

(v) Purchaser is purchasing the Shares as principal.

(vi) Purchaser hereby expressly releases each Seller and its officers, employees, agents and controlling persons from any and all liabilities arising from or in connection with the disclosure of any information in connection with the Transaction (including, without limitation, with respect to the accuracy of information or the failure to disclose information), and Purchaser hereby agrees to make no claim (and it hereby waives and releases all claims that it may otherwise have) against each Seller and its officers, employees, agents and controlling persons from or in connection with the disclosure of any information in connection with the Transaction (including, without limitation, with respect to the accuracy of information or the failure to disclose information) whether arising before, in connection with or after the date of this Agreement. Purchaser hereby agrees that the release and waiver contained in this paragraph is unconditional and irrevocable.

(i) Sufficient Funds . Purchaser has sufficient funds, and will have sufficient funds as of the Closing Date, to consummate the Transaction.

(j) No Other Representations or Warranties . Except for the representations and warranties made by Purchaser in this Section 3.2, neither Purchaser nor any other Person on behalf of Purchaser makes any representation or warranty with respect to Purchaser or its assets, liabilities, condition (financial or otherwise) or prospects.

(k) Acknowledgement . Purchaser acknowledges that each Seller is relying on the representations and agreements set forth in this Section 3.2 in engaging in the Transaction, and would not engage in the Transaction in the absence of such representations and agreements. Purchaser acknowledges that (i) none of the Sellers nor any Person on behalf of any of the Sellers is making any representations or warranties whatsoever, express or implied, beyond those expressly given by the Sellers in Section 3.1 of this Agreement and (ii) Purchaser has not been induced by, or relied upon, any representations, warranties or statements (written or oral), whether express or implied, made by any Person, that are not expressly set forth in Section 3.1 of this Agreement. Purchaser acknowledges that Kirkland & Ellis LLP is entitled to rely on the representations and agreements set forth in this Section 3.2 in delivering any legal opinion letter regarding the Transaction to the Company’s transfer agent on behalf of the Company.

 

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Section 3.3 Representations and Warranties of the Company . The Company represents and warrants to Purchaser that the Company has been advised by its counsel that nothing in this Agreement, the Stockholders Agreement or the Second Amended and Restated Registration Rights Agreement (or the transactions contemplated hereby and thereby) adversely affects its status as a real estate investment trust under Section 856 of the Internal Revenue Code of 1986, as amended.

ARTICLE IV

COVENANTS

Section 4.1 Further Assurances . The parties agree to use commercially reasonable efforts to execute and deliver, or cause to be executed and delivered, such further instruments or documents or take such other action (including providing instructions to the Company’s transfer agent or other custodians of the Sellers’ Shares) as may be reasonably necessary (or as reasonably requested by another party) to consummate the Transaction.

ARTICLE V

CONDITIONS TO CLOSING

Section 5.1 Conditions to Each Party s Obligation to Consummate the Closing . The respective obligation of each party hereto to consummate the Closing is subject to the satisfaction or waiver of the following conditions:

(a) No Injunction . No judgment, injunction, decree or other legal restraint (each, an “ Order ”) prohibiting the consummation of the Transaction shall have been issued by any Governmental Entity and be continuing in effect, there shall be no pending Proceeding commenced by a Governmental Entity seeking an Order that would prohibit the Transaction, and the consummation of the Transaction shall not have been prohibited or rendered illegal under any applicable Law.

(b) Execution of Stockholders Agreement and Amendment to Registration Rights Agreement . (i) Purchaser and the Company shall have executed and delivered the Stockholders Agreement and (ii) Purchaser, the Company and the Sellers shall have executed and delivered the Second Amended and Restated Registration Rights Agreement.

Section 5.2 Condition to the Sellers’ Obligations to Consummate the Closing . The respective obligations of the Sellers to consummate the Closing are subject to the satisfaction or waiver of the following conditions:

(a) Representations and Warranties . The representations and warranties of Purchaser set forth in Section 3.2 shall be true and correct in all material respects as of the Closing Date (except to the extent that any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date).

 

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(b) Covenants . Each of the covenants and agreements of Purchaser contained in this Agreement that are to be performed at or prior to the Closing shall have been duly performed in all material respects.

Section 5.3 Conditions to Purchaser s Obligation to Consummate the Closing . The obligation of Purchaser to consummate the Closing is subject to the satisfaction or waiver of each of the following conditions:

(a) Representations and Warranties . The representations and warranties of the Sellers set forth in Section 3.1 shall be true and correct in all material respects (except for the representations and warranties of the Sellers set forth in Section 3.1(d), which shall be true and correct in all respects) as of the Closing Date (except to the extent that any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects (or true and correct in all respects, as applicable) as of such earlier date).

(b) Regulatory Approval . Any required regulatory consents applicable to the consummation of the Transaction by the Company or the Sellers shall have been received.

(c) Covenants . Each of the covenants and agreements of the Sellers contained in this Agreement that are to be performed at or prior to the Closing shall have been duly performed in all material respects.

(d) Director Resignation; Director Appointment . At or prior to the Closing, Jonathan Bilzin shall have resigned from the Board of Directors of the Company (the “ Board ”) and the Board shall have appointed Richard O’Toole to the Board as a Class II director to serve as a Class II director until the next annual meeting of stockholders of the Company at which Class II directors are to be elected.

ARTICLE VI

MISCELLANEOUS

Section 6.1 Notices . All notices and other communications in connection with this Agreement shall be in writing and shall be considered given if given in the manner, and be deemed given at times, as follows: (x) on the date delivered, if personally delivered; (y) upon being sent, if delivered by email; or (z) on the next Business Day after being sent by recognized overnight mail service specifying next business day delivery, in each case with delivery charges pre-paid and addressed to the following addresses:

 

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  (a) If to the AIMCo Funds, to:

1100 - 10830 Jasper Avenue

Edmonton, Alberta, Canada

T5J 2B3

Attn: James Ridout and Colleen Cebuliak

Email: James.Ridout@aimco.alberta.ca;

Colleen.Cebuliak@aimco.alberta.ca

with a copy (which shall not constitute notice) to:

Torys LLP

1114 Avenue of the Americas, 23rd Floor

New York, New York 10036

Attn: Mile Kurta and Glen Johnson

Email: mkurta@torys.com

 

  (b) If to the GI Funds, to:

c/o GI Partners

188 The Embarcadero, Suite 700

San Francisco, California 94105

Attn: David Smolen

Email: David.Smolen@gipartners.com

with a copy (which shall not constitute notice) to:

Paul Hastings LLP

695 Town Center Drive, Seventeenth Floor

Costa Mesa, California 92626

Attn: Brandon Howald

Email: brandonhowald@paulhastings.com

 

  (c) If to OMERS, to:

OCP LCF Holdings Inc.

c/o OMERS Private Equity Inc.

200 Bay Street, Suite 2100

Toronto, ON M5J 2J2

Attn: Jonathan McCarthy

Email: JMcCarthy@omerspe.com

 

  (d) If to the TowerBrook Funds, to:

c/o TowerBrook Capital Partners L.P.

65 E 55th Street, 27th Floor

New York, NY 10022

Attention: Glenn F. Miller

Email: Glenn.Miller@towerbrook.com

 

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with a copy (which shall not constitute notice) to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Attn: Brian Raftery, Esq.

Email: brian.raftery@kirkland.com

 

  (e) If to Purchaser to:

c/o The Related Companies L.P.

60 Columbus Circle

New York, NY, 10023

Attn: Justin Metz

          Richard O’Toole

Email: Justin.Metz@Related.com

            ROToole@Related.com

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

Attn: Robert W. Downes

Email: Downesr@sullcrom.com

 

  (f) If to the Company to:

Ladder Capital Corp

345 Park Avenue, 8th Floor

New York, NY 10154

Attention: General Counsel

Email: Kelly.Porcella@laddercapital.com

with a copy (which shall not constitute notice) to:

Ladder Capital Corp

345 Park Avenue, 8th Floor

New York, NY 10154

Attention: Marc Fox

Email: Marc.Fox@laddercapital.com

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Attn: Brian Raftery, Esq.

Email: brian.raftery@kirkland.com

 

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Section 6.2 Assignment; Third Party Beneficiaries . Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned by any party hereto (other than by operation of Law) without the prior written consent of each other party. Any purported assignment in contravention hereof shall be null and void. Subject to the preceding two sentences, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns. Notwithstanding the foregoing, this Agreement, or Purchaser’s rights, interests or obligations hereunder (including, without limitation, the right to receive any of the Shares pursuant to this Agreement), may be assigned or transferred, in whole or in part, by Purchaser to one or more of its Affiliates; provided that no such assignment shall release Purchaser from its obligations hereunder. This Agreement (including the documents and instruments referred to herein) is not intended to, and does not, confer upon any Person other than the parties hereto any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein; provided that Kirkland & Ellis LLP may rely on the representations and warranties as set forth in Sections 3.1 and 3.2. The representations and warranties in this Agreement are the product of negotiations among the parties hereto and are for the sole benefit of the parties hereto. Any inaccuracies in such representations and warranties are subject to waiver by the parties hereto in accordance herewith without notice or liability to any other person. In some instances, the representations and warranties in this Agreement may represent an allocation among the parties hereto of risks associated with particular matters regardless of the knowledge of any of the parties hereto. Consequently, Persons other than the parties may not rely upon the representations and warranties in this Agreement as characterizations of actual facts or circumstances as of the date of this Agreement or as of any other date.

Section 6.3 Survival . The parties agree that the representations and warranties contained in Section 3.1(d), Section 3.1(j), Section 3.1(k) and Section 3.2(h) shall survive the Closing.

Section 6.4 Governing Law; Jurisdiction .

(a) This Agreement shall be governed and construed in accordance with the Laws of the State of New York, without regard to any applicable conflicts of law principles.

(b) Each party agrees that it will bring any action or proceeding in respect of any claim arising out of or related to this Agreement or the transactions contemplated hereby exclusively in any federal or state court located in the State of New York (the “ Chosen Courts ”), and, solely in connection with claims arising under this Agreement or the transactions that are the subject of this Agreement, (i) irrevocably submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any such action or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts are an inconvenient forum or do not have jurisdiction over any party and (iv) agrees that service of process upon such party in any such action or proceeding will be effective if notice is given in accordance with Section 6.1.

 

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Section 6.5 Waiver of Jury Trial . EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE EXTENT PERMITTED BY LAW AT THE TIME OF INSTITUTION OF THE APPLICABLE LITIGATION, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION, DIRECTLY OR INDIRECTLY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 6.5.

Section 6.6 Interpretation . The parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. This Agreement shall not be interpreted or construed to require any person to take any action, or fail to take any action, if to do so would violate any applicable Law.

Section 6.7 Prior Negotiations; Entire Agreement . This Agreement (including the exhibits hereto and the documents and instruments referred to in this Agreement) constitutes the entire agreement of the parties and supersedes all prior agreements, arrangements or understandings, whether written or oral, between the parties with respect to the subject matter of this Agreement.

Section 6.8 Counterparts . This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

Section 6.9 Severability . Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction such that the invalid, illegal or unenforceable provision or portion thereof shall be interpreted to be only so broad as is enforceable.

 

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Section 6.10 Expenses . Each party shall bear its own expenses incurred or to be incurred in connection with the negotiation and execution of this Agreement and each other agreement, document and instrument contemplated by this Agreement and the consummation of the Transaction.

Section 6.11 Waivers and Amendments . This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions of this Agreement may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege pursuant to this Agreement shall operate as a waiver thereof, nor shall any waiver of the part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and are not exclusive of any rights or remedies which any party otherwise may have at Law or in equity.

Section 6.12 Certain Remedies .

(a) Specific Performance . The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement or of any other agreement between them with respect to the Transaction were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that, in addition to any other applicable remedies at Law or equity, the parties shall be entitled to an injunction or injunctions, without proof of damages, to prevent breaches of this Agreement or of any other agreement between them with respect to the Transaction and to enforce specifically the terms and provisions of this Agreement.

(b) No Consequential Damages . To the fullest extent permitted by applicable Law, the parties shall not assert, and hereby waive, any claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor, against any other party and its respective Affiliates, members, members’ affiliates, officers, directors, partners, trustees, employees, attorneys and agents on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on Contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, or as a result of, this Agreement or of any other agreement between them with respect to the Transaction.

[ Signature Pages  Follow ]

 

 

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IN WITNESS WHEREOF , this Agreement is executed as of the day and year first above written.

 

SELLERS:
GI LADDER HOLDCO LLC
By: GI Partners Fund III L.P. its Sole Member
By: GI GP III L.P., its General Partner
By: GI GP III LLC, its General Partner
By:  

/s/ Howard Park

  Name: Howard Park
  Title:   Managing Director
GI PARTNERS FUND III-B, L.P.
By: GI GP III L.P., its General Partner
By: GI GP III LLC, its General Partner
By:  

/s/ Howard Park

  Name: Howard Park
  Title:   Managing Director
GI PARTNERS FUND III-A, L.P.
By: GI GP III L.P., its General Partner
By: GI GP III LLC, its General Partner
By:  

/s/ Howard Park

  Name: Howard Park
  Title:   Managing Director


TI II LADDER HOLDINGS, LLC
By:  

/s/ Glenn F. Miller

  Name: Glenn F. Miller
  Title:   Vice President
TOWERBROOK INVESTORS II AIV, L.P.
By:   TOWERBROOK INVESTORS GP II, L.P., its General Partner
By:   TOWERBROOK INVESTORS, LTD., its General Partner
By:  

/s/ Glenn F. Miller

  Name: Glenn F. Miller
  Title:   Attorney-in-Fact


GP09 PX (LAPP) LADDER CAPITAL LTD.
By:  

/s/ James Ridout

  Name: James Ridout
  Title:   Director
GP09 GV LADDER CAPITAL LTD.
By:  

/s/ James Ridout

  Name: James Ridout
  Title:   Director
GP09 PX LADDER CAPITAL LTD.
By:  

/s/ James Ridout

  Name: James Ridout
  Title:   Director


OCP LCF HOLDINGS INC.
By:  

/s/ Andrew Prodanyk

  Name: Andrew Prodanyk
  Title: Assistant Secretary
By:  

/s/ Chantal Thibault

  Name: Chantal Thibault
  Title: Secretary


PURCHASER:
RREF II LADDER LLC
By:  

/s/ Richard O’Toole

  Name: Richard O’Toole
  Title: Executive Vice President


Solely for purposes of Section 2.3(c) and Section 3.3 hereof,
LADDER CAPITAL CORP
By:  

/s/ Kelly Porcella

  Name: Kelly Porcella
  Title: General Counsel


EXHIBIT A

SELLERS’ SHARES

 

Entity

   Total Number of
Shares Being
Sold
 

GI LADDER HOLDCO LLC

     1,675,013  

GI PARTNERS FUND III-B, L.P.

     304,510  

GI PARTNERS FUND III-A, L.P.

     43,731  

TI II LADDER HOLDINGS, LLC

     1,117,326  

TOWERBROOK INVESTORS II AIV, L.P.

     674,843  

GP09 PX (LAPP) LADDER CAPITAL LTD.

     655,701  

GP09 GV LADDER CAPITAL LTD.

     447,523  

GP09 PX LADDER CAPITAL LTD.

     143,357  

OCP LCF HOLDINGS INC.

     824,677  
  

 

 

 

Total

     5,886,681  


EXHIBIT B

FORM OF STOCKHOLDERS AGREEMENT


EXHIBIT C

FORM OF REGISTRATION RIGHTS AGREEMENT

Exhibit 5

LOCK-UP AGREEMENT

March 3, 2017

Deutsche Bank Securities Inc.

60 Wall Street, 2nd Floor

New York, New York 10005

Attention: Equity Capital Markets

Ladies and Gentlemen:

The undersigned understands that you, as the Advisor (the “ Advisor ”), have provided and will provide financial advice and investment banking services to Ladder Capital Corp, a Delaware corporation (the “ Company ”), in relation to a transfer (the “ Transaction ”) of 5,886,681 shares of Class A common stock, par value $0.001 per share, of the Company (the “ Common Stock ”), by GI Ladder Holdco LLC, GI Partners Fund III-B, L.P., GI Partners Fund III-A, L.P., TI II Ladder Holdings, LLC, TowerBrook Investors II AIV, L.P., GP09 PX (LAPP) Ladder Capital LTD., GP09 GV Ladder Capital LTD., GP09 PX Ladder Capital LTD. and OCP LCF Holdings Inc., as sellers (the “ Sellers ”), to RREF II Ladder LLC, a Delaware limited liability company (the “ Stockholder ”), as purchaser.

 

  1. Definitions . As used in this letter (this “ Lock-Up Agreement ”), the following terms shall have the following meanings:

 

  a. Affiliate ” of a Person is any other Person that directly or indirectly controls, is controlled by, or is under common control with such specified Person; provided , however , notwithstanding anything to the contrary set forth herein, no Stockholder Party shall be deemed to be an Affiliate of the Company, solely by virtue of (i) such party’s ownership of Common Stock or its being a party to this Lock-Up Agreement, (ii) the election of directors nominated by the Company for election to the Board in connection with the Transaction or (iii) any other action taken by such party or its Affiliates in connection with the Transaction. For purposes of this definition, the term “control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any Person, means the power to, directly or indirectly, direct or cause the direction of the affairs or management of such Person, whether through the ownership of voting securities, as trustee or executor, by contract or any other means.


  b. Beneficial Ownership ” by a Person of any securities includes ownership by any Person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares (i) voting power which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power which includes the power to dispose, or to direct the disposition, of such security; and shall otherwise be interpreted in accordance with the term “beneficial ownership” as defined in Rule 13d-3 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended; provided that (x) for purposes of determining Beneficial Ownership, a Person shall be deemed to be the Beneficial Owner of any securities which may be acquired by such Person pursuant to any agreement, arrangement or understanding or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise (irrespective of whether the right to acquire such securities is exercisable immediately or only after the passage of time, including the passage of time in excess of 60 days, the satisfaction of any conditions, the occurrence of any event or any combination of the foregoing) and (y) notwithstanding anything to the contrary set forth herein, no Stockholder Party shall be deemed to have Beneficial Ownership of securities owned by another participant in the Transaction, solely by virtue of (A) such party’s status as a party to this Lock-Up Agreement, (B) any voting agreements or proxies delivered in connection with the Transaction or (C) any other action taken by such party or any of its Affiliates in connection with the Transaction (and irrespective of the characteristics of the aforesaid relationships and actions under applicable Law or accounting principles). For purposes of this Lock-Up Agreement, a Person shall be deemed to Beneficially Own any securities Beneficially Owned by its Affiliates or any Group of which such Person or any such Affiliate is or becomes a member or is otherwise acting in concert. “Beneficially Own” and “Beneficially Owned” shall have a correlative meaning.

 

  c. Board ” means the Board of Directors of the Company.

 

  d. Capital Stock ” means, with respect to any Person at any time, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of capital stock, partnership interests (whether general or limited) or equivalent ownership interests in or issued by such Person.

 

  e. Governmental Entity ” means any United States or foreign (i) federal, state, local, municipal or other government, (ii) governmental or quasi-governmental entity of any nature (including, without limitation, any governmental agency, branch, department, official or entity and any court or other tribunal), (iii) body exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, including, without limitation, any arbitral tribunal and self-regulatory organizations, or (iv) any national securities exchange or national quotation system.


  f. Group ” shall have the meaning assigned to it in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended; provided , however , notwithstanding anything to the contrary set forth herein, no Stockholder Party or any of their respective Affiliates shall be deemed to be a member of a Group with each other or each other’s Affiliates, in each case solely by virtue of the existence of this Lock-Up Agreement or any action taken by a party to this Lock-Up Agreement or any such party’s Affiliates in connection with the Transaction.

 

  g. Laws ” means, collectively, any applicable federal, state, local or foreign law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Entity.

 

  h. Permitted Transferee ” means any Affiliate of The Related Companies, L.P., a New York limited partnership, in each case that signs and delivers to the Advisor a lock-up letter substantially in the form of this Lock-Up Agreement.

 

  i. Person ” means any natural person, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, foundation, unincorporated organization or government or other agency or political subdivision thereof, or any other entity or Group comprised of two or more of the foregoing.

 

  j. Stockholder Parties ” means (i) the Stockholder and (ii) any Permitted Transferee.

 

  k. Transfer ” means, when used as a noun, any direct or indirect, voluntary or involuntary, sale, disposition, hypothecation, mortgage, encumbrance, gift, pledge, assignment, attachment or other transfer (including the creation of any derivative or synthetic interest, including a participation or other similar interest), whether by merger, testamentary disposition, operation of law or otherwise, but excluding any transfer upon foreclosure of any such hypothecation, mortgage, encumbrance, pledge or assignment, to secure obligations to the Company or any of its Affiliates, and entry into a definitive agreement with respect to any of the foregoing and, when used as a verb, to directly or indirectly, voluntarily or involuntarily, sell, dispose, hypothecate, mortgage, encumber, gift, pledge, assign, attach or otherwise transfer (including by creating any derivative or synthetic interest, including a participation or other similar interest), whether by merger, testamentary disposition, operation of law or otherwise, or enter into a definitive agreement with respect to any of the foregoing.

 

  l. Voting Securities ” means, at any time, shares of any class of Capital Stock or other securities of the Company, including the Common Stock, which are entitled to vote generally in the election of directors to the Board and not solely upon the occurrence and during the continuation of certain specified events, and any securities convertible into or exercisable or exchangeable for such shares of Capital Stock (whether or not currently so convertible, exercisable or exchangeable or only upon the passage of time, the occurrence of certain events or otherwise).


  2. Lock-Up . For good and valuable consideration, the sufficiency of which is hereby acknowledged, the undersigned agrees that, from and after the date hereof until February 27, 2018, the Stockholder Parties shall not, nor shall any Stockholder Party permit any of its controlled Affiliates to, Transfer any Voting Securities Beneficially Owned by such Person, other than in a transaction to finance the purchase or ownership of Voting Securities purchased from the Sellers on the date hereof, including as a pledge for a borrowing, through the creation of a derivative or synthetic interest or any hedging, swap, forward or other derivative contract, and, in each case, any renewals, replacements, extensions, amendments, supplements or restatements thereof; provided , that, the foregoing restrictions set forth in this paragraph shall not apply to Transfers of Voting Securities (x) solely between or among the Stockholder Parties and any of their Permitted Transferees; (y) with the prior written consent of the Advisor; or (z) pursuant to any sale, merger, consolidation, acquisition (including by way of tender offer or exchange offer or share exchange), recapitalization or other business combination involving the Company or any of its subsidiaries pursuant to which more than 50% of the Voting Securities or the consolidated total assets of the Company would be acquired or received by any Person (other than the Company or its subsidiaries) in one or a series of related transactions, provided that, in the case of this clause (z), the Board has approved such transaction or proposed transaction and recommended it to the stockholders of the Company (and has not withdrawn such recommendation).

 

  3. Assignment; Third Party Beneficiaries . Neither this Lock-Up Agreement nor any of the rights, interests or obligations under this Lock-Up Agreement may be assigned by any party hereto (other than by operation of Law) without the prior written consent of (i) the Advisor, in the case of the Stockholder Parties, or (ii) the Stockholder, in the case of the Advisor. Any purported assignment in contravention hereof shall be null and void. Subject to the preceding sentence, this Lock-Up Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. This Lock-Up Agreement (including the documents and instruments referred to herein) is not intended to, and does not, confer upon any Person other than the parties hereto any rights or remedies hereunder.

 

  4. Governing Law; Jurisdiction .

 

  a. This Lock-Up Agreement shall be governed and construed in accordance with the Laws of the State of Delaware, without regard to any applicable conflicts of law principles.


  b. Each party agrees that it will bring any action or proceeding in respect of any claim arising out of or related to this Lock-Up Agreement or the transactions contemplated hereby exclusively in any federal or state court located in the State of Delaware (the “ Chosen Courts ”), and, solely in connection with claims arising under this Lock-Up Agreement or the transactions that are the subject of this Lock-Up Agreement, (i) irrevocably submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any such action or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts are an inconvenient forum or do not have jurisdiction over any party and (iv) agrees that service of process upon such party in any such action or proceeding will be effective if notice is given at the address set forth herein.

 

  5. Waiver of Jury Trial . EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS LOCK-UP AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE EXTENT PERMITTED BY LAW AT THE TIME OF INSTITUTION OF THE APPLICABLE LITIGATION, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION, DIRECTLY OR INDIRECTLY, ARISING OUT OF OR RELATING TO THIS LOCK-UP AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS LOCK-UP AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS LOCK-UP AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.

 

  6. Interpretation . The parties have participated jointly in negotiating and drafting this Lock-Up Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Lock-Up Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Lock-Up Agreement. The headings contained in this Lock-Up Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Lock-Up Agreement. This Lock-Up Agreement shall not be interpreted or construed to require any person to take any action, or fail to take any action, if to do so would violate any applicable Law.

 

  7. Prior Negotiations; Entire Agreement . This Lock-Up Agreement constitutes the entire agreement of the parties and supersedes all prior agreements, arrangements or understandings, whether written or oral, between the parties with respect to the subject matter of this Lock-Up Agreement.


  8. Counterparts . This Lock-Up Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

 

  9. Severability . Whenever possible, each provision or portion of any provision of this Lock-Up Agreement shall be interpreted in such a manner as to be effective and valid under applicable Law, but if any provision or portion of any provision of this Lock-Up Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Lock-Up Agreement shall be reformed, construed and enforced in such jurisdiction such that the invalid, illegal or unenforceable provision or portion thereof shall be interpreted to be only so broad as is enforceable.

 

  10. Delivery by Electronic Transmission . This Lock-Up Agreement and any signed agreement or instrument entered into in connection with this Lock-Up Agreement, and any amendments or waivers hereto or thereto, to the extent signed and delivered by email delivery of a “.pdf” format data file, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto or to any such agreement or instrument shall raise the use of email delivery of a “.pdf” format data file to deliver a signature to this Lock-Up Agreement or any amendment hereto or the fact that any signature or agreement or instrument was transmitted or communicated through email delivery of a “.pdf” format data file as a defense to the formation of a contract and each party hereto forever waives any such defense.

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement.

[ Signature Page Follows ]


Very Truly Yours,
RREF II LADDER LLC
By:  

/s/ Richard O’Toole

  Name: Richard O’Toole
  Title:  Executive Vice President
Date: March 3, 2017
Address:
c/o The Related Companies L.P.
60 Columbus Circle
New York, NY, 10023
Attention:   Justin Metz
  Richard O’Toole