posam
As filed with the Securities and Exchange Commission on May 18, 2011
Registration No. 333-170074
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-POST-EFFECTIVE AMENDMENT NO. 1
TO
FORM S-11
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF CERTAIN REAL ESTATE COMPANIES
The Howard Hughes Corporation
(Exact name of registrant as specified
in governing instruments)
One Galleria Tower
13355 Noel Road, Suite 950
Dallas, Texas 75240
(214) 741-7744
(Address, including Zip Code and Telephone Number,
including Area Code, of Registrants Principal Executive Offices)
Grant Herlitz
President
The Howard Hughes Corporation
One Galleria Tower
13355 Noel Road, Suite 950
Dallas, Texas 75240
(214) 741-7744
(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)
Copies to
James E. OBannon
Jones Day
2727 North Harwood Street
Dallas, Texas 75201-1515
Telephone: (214) 220-3939
Facsimile: (214) 969-5100
Approximate date of commencement of proposed sale to the public:
As soon as practicable after the effective date of this Registration Statement.
If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
þ
If this Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering. o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. o
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer or a smaller reporting company. See the definitions of large
accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer þ
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Smaller reporting company o |
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(Do not check if a smaller reporting company) |
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The Registrant hereby amends this registration statement on such date or dates as may be
necessary to delay its effective date until the Registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in
accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement
shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may
determine.
The information in this prospectus is not complete and may be changed. The selling stockholders may
not sell these securities until the registration statement filed with the Securities and Exchange
Commission relating to these securities is effective. This prospectus is not an offer to sell these
securities and it is not a solicitation of an offer to buy these securities in any jurisdiction
where such offer, solicitation or sale is not permitted.
SUBJECT TO COMPLETION, DATED MAY 18, 2011
Prospectus
THE HOWARD HUGHES CORPORATION
18,352,280 shares of Common Stock
Warrants to purchase up to 6,083,333 shares of Common Stock
This prospectus relates solely to the resale by the selling stockholders identified in this
prospectus of up to an aggregate of 18,352,280 shares of common stock of The Howard Hughes
Corporation, or HHC, $0.01 par value per share, consisting of common stock issued pursuant to the
shareholders agreements described herein, common stock issued in connection with the separation and
distribution described herein and shares of common stock issuable upon exercise of the warrants
described herein.
The selling stockholders identified in this prospectus (which term as used herein includes
their pledgees, donees, transferees or other successors-in-interest) may offer the shares or
warrants from time to time as they may determine through public transactions or through other means
and at varying prices as determined by the prevailing market price for shares or in negotiated
transactions as described in the section entitled Plan of Distribution beginning on page 16.
We do not know when or in what amount the selling stockholders may offer the shares or
warrants for sale. We expect that the offering price for our common stock will be based on the
prevailing market price of our common stock at the time of sale. Our common stock trades on the New
York Stock Exchange, or the NYSE, under the symbol HHC. The last reported sales price on May 17,
2011 was $66.78. We do not intend to list the warrants on any exchange; accordingly, there will not
be an established market price for the warrants. There is currently no established market price for
the warrants. We expect that the offering price for the warrants will be based on the relationship
between the exercise price of the warrants and the prevailing market price for our common stock at
the time of sale.
We will not receive any of the proceeds from the sale of these shares of our common stock or
the warrants by the selling stockholders.
Investing in shares of our common stock or the warrants involves risks. See Risk
Factors beginning on page 4 of this prospectus and beginning on page 14 of our Annual Report on
Form 10-K incorporated by reference herein to read about factors you should consider before buying
shares of our common stock or the warrants.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.
This prospectus is dated , 2011.
TABLE OF CONTENTS
This prospectus is part of a registration statement on Form S-11 that we filed with the
Securities and Exchange Commission (the SEC). You should rely only on the information contained
in this prospectus (as supplemented and amended) and the documents incorporated by reference herein
or therein. We have not authorized anyone to provide you with different information. This document
may only be used where it is legal to sell these securities. You should not assume that the
information contained in this prospectus and the documents incorporated by reference herein or
therein are accurate as of any date other than their respective dates regardless of the time of
delivery of the prospectus or any sale of our common stock. You should also read this prospectus
together with the additional information described under the headings Where You Can Find More
Information and Incorporation of Certain Information by Reference.
This prospectus may be supplemented from time to time to add, update or change information in
this prospectus. Any statement contained in this prospectus will be deemed to be modified or
superseded for purposes of this prospectus to the extent that a statement contained in such
prospectus supplement modifies or supersedes such statement. Any statement so modified will be
deemed to constitute a part of this prospectus only as so modified, and any statement so superseded
will be deemed not to constitute a part of this prospectus.
ii
EXPLANATORY NOTE
This Post-Effective Amendment No. 1 to the registration statement on Form S-11 (File No.
333-170074) (the Registration Statement), relates solely to the shares of common stock, the
warrants, the shares of common stock underlying the warrants and the shares of common stock
underlying options held by the selling security holders named herein. This Post-Effective
Amendment No. 1 is being filed pursuant to the undertakings in Item 37 of the Registration
Statement to update and supplement the information contained in the Registration Statement, as
originally declared effective by the SEC on November 12, 2010, to (i) include the information
contained in the registrants Annual Report on Form 10-K for the fiscal year ended December 31,
2010, in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, in its definitive
Proxy Statement on Schedule 14A (to the extent incorporated by reference into the registrants
Annual Report on Form 10-K), and in certain of its Current Reports on Form 8-K, and (ii) make
certain other updates and revisions to the information contained herein. All filing fees payable
in connection with the registration of these securities were previously paid in connection with the
filing of the original registration statement.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements that are subject to risks and
uncertainties. All statements other than statements of historical fact included in this prospectus
are forward-looking statements. Forward-looking statements give our current expectations relating
to our financial condition, results of operations, plans, objectives, future performance and
business. You can identify forward-looking statements by the fact that they do not relate strictly
to current or historical facts. These statements may include words such as anticipate,
estimate, expect, project, forecast, plan, intend, believe, may, should, would,
likely, and other words of similar expression. Forward-looking statements should not be unduly
relied upon. They give our expectations about the future and are not guarantees. These statements
involve known and unknown risks, uncertainties and other factors that may cause our actual results,
performance and achievements to materially differ from any future results, performance and
achievements expressed or implied by such forward-looking statements. We caution you not to rely on
these forward-looking statements.
In this prospectus and the documents incorporated by reference, for example, we make
forward-looking statements discussing our expectations about:
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capital required for our operations and development opportunities for the properties
in our Operating Assets and Strategic Developments segments following the spin-off; |
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expected performance of our Master Planned Communities segment and other current
income producing properties; |
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future liquidity; |
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future development opportunities; and |
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future development spending. |
Factors that could cause actual results to differ materially from those expressed or implied
by the forward-looking statements include:
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our history of losses; |
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our lack of operating history as an independent company; |
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our inability to obtain operating and development capital; |
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our inability to establish our own financial, administrative and other support
functions to operate as a stand-alone business; |
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our new directors and officers may change our long-range plans; |
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our new directors may be involved or have interests in other businesses, including,
without limitation, real estate activities and investments; |
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a prolonged recession in the national economy and adverse economic conditions; |
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our inability to compete effectively; |
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potential conflicts with GGP (as defined below) arising from agreements with GGP with
respect to certain of our assets; |
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our inability to control certain of our properties due to the joint ownership of such
property and our inability to successfully attract desirable strategic partners; |
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risks associated with our spin-off from GGP not qualifying as a tax-free distribution
for U.S. federal income tax purposes; |
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substantial stockholders having influence over us, whose interests may be adverse to
ours or yours; and |
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the other risks described in Risk Factors or incorporated by reference therein. |
These forward-looking statements present our estimates and assumptions only as of the date of
this prospectus. Except as may be required by law, we undertake no obligation to modify or revise
any forward-looking statements to reflect events or circumstances occurring after the date of this
prospectus.
iv
PROSPECTUS SUMMARY
This summary contains basic information about us and the resale of securities being offered by
the selling security holders. It does not contain all of the information you should consider
before investing. You should read this entire prospectus carefully, including the section entitled
Risk Factors and our consolidated and combined financial statements and the notes thereto
incorporated by reference in this prospectus, before making an investment decision. Unless the
context otherwise requires, references to the Company, HHC, we, us and our refer to The
Howard Hughes Corporation and its subsidiaries and joint venture interests after giving effect to
the spin-off.
Overview
We are a real estate company created to specialize in the development of master planned
communities, the redevelopment or repositioning of real estate assets currently generating
revenues, also called operating assets, and other strategic real estate opportunities in the form
of entitled and unentitled land and other development rights, also called strategic developments.
Our assets are located across the United States, and our goal is to create sustainable, long-term
growth and value for our stockholders. As of March 31, 2011, our debt equaled approximately 10.5%
of our total assets, which excludes our $141.0 million proportionate share of the $331.6 million of
debt of our non-consolidated, non-controlling interests.
We currently operate our business in three segments: Master Planned Communities, Operating
Assets and Strategic Developments. Unlike most real estate companies which are limited in their
activities because they have elected to be taxed as a real estate investment trust, we have no such
restrictions on our operating activities or types of services that we can offer.
We completed our spin-off from GGP, Inc., formerly known as General Growth Properties, Inc.
(GGP), on November 9, 2010 in connection with GGPs emergence from bankruptcy. The Howard Hughes
Corporation was incorporated in Delaware in 2010 to receive certain assets and liabilities of GGP
and its subsidiaries (collectively, our predecessors). In connection with the spin-off, we
issued 32.5 million shares of our common stock. In addition, we issued 5.25 million shares of our
common stock and warrants to purchase an additional 8.0 million shares of our common stock for an
aggregate price of $250 million. GGP no longer holds any interest in our company.
We believe that our company name, which is identified with quality, excellence and success,
can be more broadly utilized to increase value.
Shareholders Agreements
In order to fund a portion of our spin-off, GGP entered into investment agreements with the
Plan Sponsors (as defined below). Pursuant to the terms of those agreements, the Company entered into agreements (the
Shareholders Agreements) with each of (i) Brookfield Retail Holdings LLC, an affiliate of
Brookfield Asset Management, Inc. (and its designees, as applicable, the Brookfield Investor),
(ii) The Fairholme Fund and Fairholme Focused Income Fund (collectively, Fairholme) and (iii)
Pershing Square Capital Management, L.P., on behalf of Pershing Square, L.P., Pershing Square II,
L.P., Pershing Square International, Ltd. and Pershing Square International V, Ltd. (collectively,
together with their permitted assigns, including PSRH, Inc., Pershing Square and, together with
Brookfield Investor and Fairholme, the Plan Sponsors). The Plan Sponsors entered into agreements
with Blackstone Real Estate Partners VI, L.P. (Blackstone and together with its permitted
assigns, the Blackstone Investors) whereby Blackstone subscribed for approximately 7.6% of the
shares of reorganized GGP and our common stock issued to each of the Plan Sponsors under the
Shareholders Agreements on November 9, 2010 and, in connection therewith, received an allocation of
each of the Plan Sponsors warrants described below to acquire our common stock (collectively, the
Blackstone Designation). On November 9, 2010, the Plan Sponsors and the Blackstone Investors
purchased $6.3 billion of common stock of reorganized GGP and $250 million of our common stock at
$47.619048 per share.
Upon consummation of the spin-off and after giving effect to the Blackstone Designation, we
issued to Brookfield Investor, Pershing Square, Fairholme and the Blackstone Investors 2,424,618,
1,212,309, 1,212,309 and 400,764 shares of our common stock, respectively, pursuant to the
Shareholders Agreements and the Blackstone Designation. Of the Plan Sponsors and the Blackstone
Investors, only Pershing Square received shares of our common stock pursuant to the spin-off in the
amount of 2,355,708 shares, as a result of its ownership of shares of common stock of GGP prior to
November 9, 2010.
1
Upon consummation of our predecessors plan of reorganization, we issued to Brookfield
Investor warrants to purchase approximately 3.83 million shares of our common stock, to each of
Fairholme and Pershing Square warrants to purchase approximately 1.92 million shares of our common
stock and to the Blackstone Investors warrants to purchase approximately 0.33 million shares of our
common stock, in each case, with an initial exercise price of $50.00 per share. The per share
exercise price has been adjusted from the originally contemplated exercise price to reflect a
reduction in the number of warrants that will be issued for the same aggregate consideration upon
exercise of the warrants. See Related Person Transactions and Certain RelationshipsTransactions
Prior to the Spin-Off contained in our 2011 Definitive Proxy Statement on Schedule 14A and
incorporated by reference herein.
As of May 17, 2011, Brookfield Investor, Fairholme, Pershing Square and the Blackstone
Investors beneficially owned 6.4%, 3.2%, 9.4%, and 1.1%, respectively, of our common stock
(excluding shares issuable upon exercise of the warrants) or 12.8%, 6.4%, 11.2% and 1.5%,
respectively, of our common stock (assuming exercise of all outstanding warrants, including shares
issuable upon the exercise of warrants held by Fairholme, which are only exercisable upon 90 days
notice).
Each of the Plan Sponsors has participation rights in future public and private equity
issuances by us, to allow them to maintain their respective percentage ownership on a fully diluted
basis. These participation rights terminate when the applicable Plan Sponsors beneficial
ownership (together with its affiliates beneficial ownership) is less than 5% on a fully diluted
basis.
Executive Offices
We were incorporated in Delaware on July 1, 2010. Our principal executive offices are located
at 13355 Noel Road, Suite 950, Dallas, Texas 75240. Our main telephone number is (214) 741-7744.
Our website is http://www.howardhughes.com/. The contents of our website are not a part of this
prospectus.
2
THE OFFERING
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Issuer
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The Howard Hughes Corporation |
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Securities offered by
the selling stockholders
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18,352,280 shares of our common stock. |
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Warrants to acquire 6,083,333 shares of our common stock. |
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Securities outstanding
after this offering
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37,933,154 shares of our common stock (not including shares underlying the warrants)
Warrants to acquire 6,083,333 shares of our common stock. |
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Use of proceeds
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We will not receive any proceeds from the resale of our common stock or warrants by
the selling stockholders pursuant to this offering. |
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Listing
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Our common stock trades on the NYSE under the symbol HHC. |
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Risk factors
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Investing in our common stock and warrants involves a high degree of risk. See
Risk Factors beginning on page 4 of this prospectus and beginning on page 14 of
our Annual Report on Form 10-K incorporated by reference herein for a discussion of
factors you should carefully consider before investing in our common stock or the
warrants. |
3
RISK FACTORS
An investment in our common stock or warrants involves a high degree of risk. You should
carefully consider the following risk factors and the risk factors beginning on page 14 of our
Annual Report on Form 10-K incorporated by reference herein, as well as the other information
contained in this prospectus, before making an investment in our company. If any of the following
risks actually occur, our business, financial condition and/or results of operations could be
materially and adversely affected. In such an event, the trading price of our common stock and
warrants could decline and you could lose part or all of your investment.
Risks Related to Our Warrants
The adjustment to the exercise price for warrants exercised in connection with an anti-dilutive
adjustment event may not adequately compensate you for any lost value of your warrants as a result
of such transaction.
If a specified corporate event or transaction constituting a dilutive event occurs, under
certain circumstances we will decrease the exercise price for warrants exercised in connection with
such dilutive adjustment event. The decrease in the exercise price will be determined based on the
date on which the dilutive event occurs or becomes effective and the price paid per share of our
common stock in such dilutive event. The adjustment to the exercise price for warrants exercised in
connection with a dilutive event may not adequately compensate you for any lost value of your
warrants as a result of such dilutive event.
Under certain circumstances, holders may have to pay U.S. federal income tax as a result of a
deemed distribution with respect to our common stock or warrantseven if holders do not receive a
corresponding distribution of cashsuch as, if we adjust, or fail to adjust, the exercise price of
the warrants in certain circumstances.
Holders of our common stock or warrants may be treated as having received a constructive
distribution in certain circumstances, for example if we make certain adjustments to (or fail to
make adjustments to) the exercise price of the warrants and such adjustment (or failure to make an
adjustment) has the effect of increasing the proportionate interest of certain holders in our
earnings and profits or assets. Such a distribution could be treated as a taxable dividend or
capital gain for U.S. federal income tax purposes even though holders do not receive any cash with
respect to such constructive distribution. In addition, non-U.S. holders (as defined in United
States Federal Income Tax Considerations) may be subject to U.S. federal withholding tax on any
such constructive distribution on our common stock or warrants. You are advised to consult your
independent tax advisor and to read the section titled United States Federal Income Tax
Considerations regarding the possibility and tax treatment of any deemed distributions for U.S.
federal income tax purposes.
Until the exercise of our warrants, holders of these securities do not have identical rights as
holders of our common stock, but they will be subject to all changes made with respect to our
common stock.
Holders of warrants are not entitled to any rights with respect to our common stock
(including, without limitation, voting rights and rights to receive any dividends or other
distributions on our common stock), but they will be subject to all changes affecting our common
stock. See Description of Capital StockCommon Stock and Description of Capital
StockWarrants. Holders of our warrants will have rights with respect to our common stock only if
they receive our common stock upon exercise of the warrants and only as of the date when such
holder becomes a record owner of the shares of our common stock upon such exercise. For example,
with respect to warrants, if an amendment is proposed to our certificate of incorporation or bylaws
requiring stockholder approval and the record date for determining the stockholders of record
entitled to vote on the amendment occurs prior to the date a warrant holder is deemed to be the
owner of the shares of our common stock due upon exercise of the warrants, the exercising warrant
holder will not be entitled to vote on the amendment, although such holder will nevertheless be
subject to any changes in the powers, preferences or special rights of our common stock.
The market price of our common stock may or may not exceed the exercise price of the warrants.
The warrants are immediately exercisable or, in the case of the Fairholme warrants, upon 90
days written notice for the first 6.5 years and without notice anytime thereafter, and will expire
seven years after our November 9, 2010 spin-off. Although as of May 17, 2011, the market price of
our common stock exceeded the exercise price of the warrants, we cannot provide you with any
assurance that that the market price of our common stock will always remain in excess of the
exercise price of the warrants in any or all periods prior to the date of expiration. Any warrants
not exercised by their date of expiration will expire worthless and we will be under no further
obligation to the warrant holder.
4
Since the warrants are executory contracts, they may have no value in a bankruptcy or
reorganization proceeding.
In the event a bankruptcy or reorganization proceeding is commenced by or against us, a
bankruptcy court may hold that any unexercised warrants are executory contracts that are subject to
rejection by us with the approval of the bankruptcy court. As a result, holders of the warrants
may, even if we have sufficient funds, not be entitled to receive any consideration for their
warrants or may receive an amount less than they would be entitled to if they had exercised their
warrants prior to the commencement of any such bankruptcy or reorganization proceeding.
There is no public market for the warrants.
There is no established public trading market for the warrants, and we do not expect a market
to develop. In addition, we do not intend to apply for quotation or listing of the warrants on any
securities exchange. Without an active market, the liquidity of the warrants will be limited. There
can be no assurance that a market will ever develop for the warrants. Even if a market for the
warrants does develop, the price of the warrants may fluctuate and liquidity may be limited. If a
market for the warrants does not develop, then purchasers of the warrants may be unable to resell
the warrants or sell them only at an unfavorable price for an extended period of time, if at all.
Resale prices of the warrants will depend on many factors, including:
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our operating performance and financial condition; |
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our ability to continue the effectiveness of the registration statement, of which
this prospectus is a part, covering warrants and the common stock issuable upon exercise
of the warrants; |
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the interest of securities dealers in making a market; and |
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the market for similar securities. |
The market price of our warrants will be directly affected by the market price of our common stock,
which may be volatile.
To the extent that a secondary market for our warrants develops, we believe that the market
price of our warrants will be significantly affected by the market price of our common stock. We
cannot predict how the shares of our common stock will trade in the future. This may result in
greater volatility in the market price of our warrants than would be expected for non-exercisable
securities.
If an effective registration is not in place and a current prospectus is not available when an
investor desires to exercise warrants, such investor may be unable to exercise his, her or its
warrants, causing such warrants to expire worthless.
Holders of shares of common stock received pursuant to the exercise of the warrants will be
able to sell their warrant shares only if a registration statement relating to such securities is
then in effect, or if such transaction is exempt from the registration requirements of the
Securities Act, as amended (the Securities Act), and such securities are qualified for sale or
exempt from qualification under the applicable securities laws of the states in which the purchaser
of such securities resides. We intend to use our best efforts to keep a registration statement in
effect covering warrant shares and to maintain a current prospectus relating to warrant shares
until the expiration of the warrants. However, we cannot assure you that we will be able to do so,
and if we do not maintain a current prospectus related to the warrant shares, holders may be unable
to sell their warrant shares. If the prospectus relating to the warrant shares is not current, the
warrants may have no value, we will have no obligation to settle the warrants for cash, the market
for such warrants may be limited, and such warrants may expire worthless.
5
USE OF PROCEEDS
We are registering these shares of our common stock and these warrants for the benefit of the
selling stockholders. We will not receive any proceeds from the resale of our common stock or the
warrants under this offering.
BUSINESS
We are a real estate company created to specialize in the development of master planned
communities, the redevelopment or repositioning of real estate assets currently generating
revenues, also called operating assets, and other strategic real estate opportunities in the form
of entitled and unentitled land and other development rights, also called strategic developments.
Our assets are located across the United States, and our goal is to create sustainable, long-term
growth and value for our stockholders. As of March 31, 2011, our debt equaled approximately 10.5%
of our total assets, which excludes our $141.0 million proportionate share of the $331.6 million of
debt of our non-consolidated, non-controlling interests.
We currently operate our business in three segments: Master Planned Communities, Operating
Assets and Strategic Developments. Unlike most real estate companies which are limited in their
activities because they have elected to be taxed as a real estate investment trust, we have no
restrictions on our operating activities or types of services that we can offer.
We completed our spin-off from GGP, Inc., formerly known as GGP, on November 9, 2010 in
connection with GGPs emergence from bankruptcy. The Howard Hughes Corporation was incorporated in
Delaware in 2010 to receive certain assets and liabilities of our predecessors. In connection with
the spin-off, we issued 32.5 million shares of our common stock. In addition, we issued 5.25
million shares of our common stock and warrants to purchase an additional 8.0 million shares of our
common stock for an aggregate price of $250 million. GGP no longer holds any interest in our
company.
For more information on our business see Business in our Annual Report on Form 10-K and
Quarterly Report on Form 10-Q incorporated herein by reference.
The following disclosure provides information required by SEC rules to be included in this
prospectus but not required to be included in our Annual Report on Form 10-K.
Average Effective Annual Rental Rate per Square Foot
The following table sets forth the Average Effective Annual Rental Rate per square foot for
Ward Centers and all other Operating Assets properties with retail operations in the aggregate.
Average Effective Annual Rental Rate represents the sum of minimum rent and recoverable common area
costs (excluding taxes) for all tenant occupied space divided by total tenant occupied square feet,
for tenants occupancy spaces less than 30,000 square feet. The calculation includes the terms of
each lease in effect at the time of the calculation, including any tenant concessions such as rent
abatements, allowances or other concessions, that may have been granted. Calculations exclude
rent, charges and square footage for temporary tenants (leases less than one year) and exclude
anchor stores.
Average Effective Annual Rental Rate per Square Foot
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All Other |
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Operating Assets |
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Ward |
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Retail Properties |
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Total |
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2006 |
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$ |
29.98 |
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$ |
27.49 |
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$ |
28.24 |
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2007 |
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44.87 |
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30.50 |
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34.93 |
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2008 |
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45.18 |
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31.85 |
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35.81 |
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2009 |
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43.85 |
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31.39 |
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34.94 |
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2010 |
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41.86 |
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33.23 |
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36.16 |
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The following tables set forth the lease expiration data for all of our consolidated entities.
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Lease Expirations
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
% of Total |
|
Number of |
|
|
|
|
Total Minimum |
|
Minimum Rent |
|
Minimum Rent |
|
Leases |
|
Total Square |
Year |
|
Rent |
|
Expiring |
|
Expiring |
|
Expiring |
|
Feet Expiring |
|
|
(In Thousands) |
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
(In Thousands) |
2011
|
|
|
49,630 |
|
|
|
4,581 |
|
|
|
9.2 |
% |
|
|
372 |
|
|
|
767 |
|
2012
|
|
|
44,900 |
|
|
|
2,896 |
|
|
|
6.5 |
% |
|
|
218 |
|
|
|
1,326 |
|
2013
|
|
|
38,987 |
|
|
|
5,042 |
|
|
|
12.9 |
% |
|
|
125 |
|
|
|
455 |
|
2014
|
|
|
31,598 |
|
|
|
2,594 |
|
|
|
8.2 |
% |
|
|
69 |
|
|
|
324 |
|
2015
|
|
|
27,731 |
|
|
|
3,177 |
|
|
|
11.5 |
% |
|
|
65 |
|
|
|
280 |
|
2016
|
|
|
19,543 |
|
|
|
3,511 |
|
|
|
18.0 |
% |
|
|
25 |
|
|
|
199 |
|
2017
|
|
|
15,671 |
|
|
|
1,736 |
|
|
|
11.1 |
% |
|
|
19 |
|
|
|
61 |
|
2018
|
|
|
12,793 |
|
|
|
1,309 |
|
|
|
10.2 |
% |
|
|
26 |
|
|
|
57 |
|
2019
|
|
|
10,826 |
|
|
|
419 |
|
|
|
3.9 |
% |
|
|
11 |
|
|
|
34 |
|
2020
|
|
|
7,122 |
|
|
|
1,294 |
|
|
|
18.2 |
% |
|
|
14 |
|
|
|
107 |
|
GGP represents 100% of gross leaseable area at 110 N. Wacker and Enterprise Community Investment
represents 46.7% of gross leaseable area at Columbia Office Properties.
Company Policies
The following is a discussion of our investment policies, financing policies, conflict of
interest policies and policies with respect to certain other activities. One or more of these
policies may be amended or rescinded from time to time without a stockholder vote.
Investment Policies
We are a real estate company created to specialize in the development of master planned
communities, the redevelopment or repositioning of operating assets and other strategic real estate
development opportunities. Our assets are located across the United States and our goal is to
create sustainable, long-term growth and value for our stockholders. We do not currently have an
investment policy, however, our board of directors may adopt one in the future. We may invest in
other real estate, real estate mortgages and the securities of persons primarily engaged in real
estate activities, but do not currently, nor do we currently intend to, engage in these activities
and we do not have a policy as to these investments, except insofar as that we will seek to
maximize what we believe is the significant long-term value potential of our assets and create a
leading real estate development company, while providing our stockholders with appropriate
long-term returns commensurate with development risk. Given the makeup of our assets, particularly
the undeveloped land in our Master Planned Communities segment, we have elected not to be treated
as a REIT for U.S. federal income tax purposes; however, one of our subsidiaries, Victoria Ward,
Limited, is and will continue to elect to be treated as a REIT. We are not subject to REIT
limitations. Given the capital and operational differences between our three business segments, we
intend to follow specific strategies in each business segment to maximize the value of our assets.
Financing Policies
We do not have a formal financing policy; however, in order to pursue development and
redevelopment opportunities in our Operating Assets segment and our Strategic Developments segment,
we will require significant additional capital. We intend to raise this additional capital with a
mix of construction, bridge and long-term financings, as well as joint venture equity. We cannot
assure you that any financings or joint venture arrangements will be available on terms acceptable
to us or at all. See Risk FactorsRisks Related to Our BusinessWe may face potential
difficulties in obtaining operating and development capital and Our business model includes
entering into joint venture arrangements with strategic partners. This model may not be successful
and our business could be adversely affected if we are not able to successfully attract desirable
strategic partners or complete agreements with strategic partners, in our Annual Report on Form
10-K incorporated herein by reference.
If our board of directors determines to raise additional equity capital, it may, without
stockholder approval, issue additional shares of common stock or other capital stock. Our board of
directors may issue a number of shares up to the amount of our authorized capital in any manner and
on such terms and for such consideration as it deems appropriate. Such securities may be senior to
the outstanding classes of common stock. Such securities also may include classes of preferred
stock, which may be convertible into common stock. Existing stockholders have no preemptive right
to purchase shares in any subsequent offering of our securities. Under
7
the Shareholders Agreements, the Plan Sponsors have participation rights to purchase HHC
common stock as necessary to allow them to maintain its proportional ownership interest in HHC on a
fully diluted basis. Any such offering could dilute a stockholders investment in us and may make
it more difficult to raise equity capital.
We do not currently have a policy limiting the number or amount of mortgages that may be
placed on any particular property. Mortgage financing instruments, however, usually limit
additional indebtedness on such properties.
Conflict of Interest Policies
We have Codes of Business Conduct and Ethics which apply to all of our employees, officers and
directors, including our Chief Executive Officer. Our Codes of Business Conduct and Ethics require
disclosure of, and in certain circumstances prohibit, conflicts of interest, which are broadly
defined to include situations where a persons private interest interferes with the interests of
the Company. In addition, the codes prohibit direct or indirect personal loans to executive
officers and directors to the extent required by law and stock exchange regulation. The codes do
not attempt to cover every issue that may arise, but instead set out basic principles to guide all
of our employees, officers and directors.
The Code of Business Conduct and Ethics applicable to our directors recognizes that our
directors have and may in the future have interests in other real estate business activities,
including with reorganized GGP, and may have control or influence over these activities and may
serve as investment advisors, directors or officers in such businesses. These interests and
activities, and any duties to third parties arising from such interests and activities, could
divert the attention of such directors from our operations. Additionally, the code recognizes that
certain of our directors are engaged in investment and other activities in which they may learn of
real estate and other related opportunities in their non-director capacities. The Code of Business
Conduct and Ethics applicable to our directors expressly provides, as permitted by Section 122(17)
of the DGCL, that our non-employee directors will not be obligated to limit their interests or
activities in their non-director capacities or to notify us of any opportunities that may arise in
connection therewith, even if the opportunities are complementary to or in competition with our
businesses. Accordingly, we have, and investors in our common stock should have, no expectation
that we will be able to learn of or participate in such opportunities. However, the code provides
that if any potential business opportunity is expressly presented to a director exclusively in his
or her director capacity, the director is not permitted to pursue the opportunity, directly or
indirectly through a controlled affiliate in which the director has an ownership interest, without
the approval of the independent members of our board of directors. See Risk FactorsSome of our
directors are involved in other businesses including real estate activities and public and/or
private investments and, therefore, may have competing or conflicting interests with us in our
Annual Report on Form 10-K incorporated herein by reference.
Policies With Respect To Certain Other Activities
We have authority to offer shares of our capital stock or other securities in exchange for
property. We also have authority to repurchase or otherwise reacquire our shares or any other
securities.
We intend to borrow money as part of our business, and we also may issue senior securities,
purchase and sell investments, offer securities in exchange for property and repurchase or
reacquire shares or other securities in the future. To the extent we engage in these activities, we
will comply with applicable law.
We will make reports to our security holders in accordance with the NYSE rules and containing
such information, including financial statements certified by our independent public registered
accounting firm, as required by the NYSE.
We do not have policies in place with respect to making loans to other persons (other than our
conflict of interest policies described above), investing in the securities of other issuers for
the purpose of exercising control and underwriting the securities of other issuers, and we do not
currently, and do not intend to, engage in these activities.
Insurance
We have comprehensive liability, fire, flood, extended coverage and rental loss insurance with
respect to our portfolio of retail properties. Our management believes that such insurance
provides adequate coverage.
8
SELLING STOCKHOLDERS
The selling stockholders may from time to time offer and sell any or all of the shares of our
common stock or warrants set forth below pursuant to this prospectus. When we refer to selling
stockholders in the Plan of Distribution section of this prospectus, we mean the persons listed
in the table below, and the pledgees, donees, permitted transferees, assignees, successors and
others who later come to hold any of the selling stockholders interests in shares of our common
stock other than through a public sale. Except as noted in this prospectus, none of the selling
stockholders have, or within the past three years have had, any material relationship with us or
any of our predecessors or affiliates and the selling stockholders are not or were not affiliated
with registered broker-dealers.
Based on the information provided to us by the selling stockholders and as of the date the
same was provided to us, assuming that the selling stockholders sell all of the shares of our
common stock and warrants owned or beneficially owned by them that have been registered by us and
do not acquire any additional shares during the offering, the selling stockholders will not own any
shares other than those appearing in the column entitled Shares of Common Stock Beneficially Owned
After the OfferingNumber of Shares. We cannot advise you as to whether the selling stockholders
will in fact sell any or all of such shares of common stock or warrants to acquire our common
stock. In addition, the selling stockholders may have sold, transferred or otherwise disposed of,
or may sell, transfer or otherwise dispose of, at any time and from time to time, the shares of our
common stock or warrants to acquire our common stock in transactions exempt from the registration
requirements of the Securities Act after the date as of which the information is set forth on the
table below.
Brookfield Investor is subject to lock-up restrictions on its ability to sell, transfer or
dispose of its shares of our common stock and its warrants to acquire our common stock for an 18
month term following our spin-off on November 9, 2010. In the first six month term of the lock-up
period, Brookfield Investor was not able to sell, transfer or dispose of any shares of our common
stock. In the second six month term of the lock-up period, Brookfield Investor may sell, transfer
or dispose of up to an aggregate of 8.25% of its shares of our common stock and up to an aggregate
of 8.25% of its warrants or the shares issuable upon exercise of the warrants. In the final six
month term of the lock-up period, Brookfield Investor may sell, transfer or dispose of up to an
aggregate of 16.5% of its shares of our common stock and up to an aggregate of 16.5% of its
warrants or the shares issuable on exercise of the warrants (in each case including any shares
transferred or sold during the second six month term of the lock-up period).
Beneficial ownership of shares is determined under SEC rules and generally includes any shares
over which a person exercises sole or shared voting or investment power. Shares of common stock
subject to warrants or options currently exercisable or exercisable within 60 days of the date of
this prospectus are deemed to be outstanding and beneficially owned by the person and any group of
which that person is a member, but are not deemed outstanding for the purpose of computing the
percentage of beneficial ownership for any other person.
Except as noted by footnote, and subject to community property laws where applicable, we
believe based on the information provided to us that the persons and entities named in the table
below have sole voting and investment power with respect to all shares of our common stock shown as
beneficially owned by them. Unless otherwise noted below, the address of the persons and entities
listed in the table is c/o The Howard Hughes Corporation, 13355 Noel Road, Suite 950, Dallas, Texas
75240.
9
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of Common Stock |
|
Underlying Options |
|
|
|
|
|
Shares of Common |
|
|
Shares of Common Stock |
|
Underlying Warrants |
|
Beneficially Owned |
|
|
|
|
|
Stock |
|
|
Beneficially Owned |
|
Beneficially Owned Prior |
|
Prior |
|
|
|
|
|
Beneficially Owned |
|
|
Prior to Offering |
|
to Offering |
|
to the Offering |
|
|
|
|
|
After the Offering |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage |
|
|
|
|
|
|
|
|
|
Number of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of |
|
|
|
|
|
|
|
|
|
Shares of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
|
|
|
|
|
|
|
Common |
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of |
|
|
|
|
|
Upon |
|
|
|
|
|
|
|
|
|
Stock |
|
|
|
|
|
Percentage |
|
|
Number of |
|
Shares |
|
Number of |
|
Exercise of |
|
Number of |
|
Percentage |
|
Being |
|
Number of |
|
of |
Name of Beneficial Owner |
|
Shares |
|
Outstanding |
|
Shares |
|
Warrants |
|
Shares |
|
of Shares |
|
Offered |
|
Shares |
|
Shares |
The Blackstone Investors(1) |
|
|
400,764 |
|
|
|
1.1 |
% |
|
|
333,333 |
|
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
734,097 |
|
|
|
0 |
|
|
|
0 |
% |
Brookfield Retail Holdings
II LLC(2) |
|
|
541,513 |
|
|
|
1.4 |
% |
|
|
856,134 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
1,397,647 |
|
|
|
0 |
|
|
|
0 |
% |
Brookfield Retail Holdings
III LLC(2) |
|
|
621,147 |
|
|
|
1.6 |
% |
|
|
982,036 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
1,603,183 |
|
|
|
0 |
|
|
|
0 |
% |
Brookfield Holdings IV-A
LLC(2) |
|
|
71,816 |
|
|
|
0.2 |
% |
|
|
113,541 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
185,357 |
|
|
|
0 |
|
|
|
0 |
% |
Brookfield Retail Holdings
IV-D LLC(2) |
|
|
48,023 |
|
|
|
0.1 |
% |
|
|
75,924 |
|
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
123,947 |
|
|
|
0 |
|
|
|
0 |
% |
Brookfield Retail Holdings
LLC(2) |
|
|
789,145 |
|
|
|
2.1 |
% |
|
|
1,247,643 |
|
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
2,036,788 |
|
|
|
0 |
|
|
|
0 |
% |
Brookfield Retail Holdings
V LP(2) |
|
|
161,609 |
|
|
|
0.4 |
% |
|
|
255,506 |
|
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
417,115 |
|
|
|
0 |
|
|
|
0 |
% |
Brookfield U.S. Retail
Holdings LLC(2) |
|
|
191,365 |
|
|
|
0.5 |
% |
|
|
302,549 |
|
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
493,914 |
|
|
|
0 |
|
|
|
0 |
% |
Pershing Square(3) |
|
|
3,568,017 |
|
|
|
9.4 |
% |
|
|
1,916,667 |
|
|
|
13.8. |
% |
|
|
|
|
|
|
|
|
|
|
5,484,684 |
|
|
|
0 |
|
|
|
0 |
% |
General Trust Company, as
trustee(4) |
|
|
5,875,548 |
|
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,875,548 |
|
|
|
0 |
|
|
|
0 |
% |
M.B. Capital Partners III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Such shares are beneficially owned by Blackstone Real Estate Partners VI L.P., Blackstone
Real Estate Partners (AIV) VI L.P., Blackstone Real Estate Partners VI.F L.P., Blackstone Real
Estate Partners VI.TE.1 L.P., Blackstone Real Estate Partners VI.TE.2 L.P., Blackstone Real
Estate Holdings VI L.P. and Blackstone GGP Principal Transaction Partners L.P. Blackstone Real
Estate Associates VI L.P. is the general partner of six of the Blackstone Investors and BREP
VI Side-by-Side GP L.L.C. is the general partner of the other Blackstone Investor. BREA VI
L.L.C. is the general partner of Blackstone Real Estate Associates VI L.P. Blackstone Holdings
III L.P. is the managing member of BREA VI L.L.C and the sole member of BREP VI Side-by-Side
GP L.L.C. Blackstone Holdings III GP L.P. is the general partner of Blackstone Holdings III
L.P. Blackstone Holdings III GP Management L.L.C. is the general partner of Blackstone
Holdings III GP L.P. The Blackstone Group L.P. is the managing member of Blackstone Holdings
III GP Management L.L.C. Blackstone Group Management L.L.C. is the general partner of The
Blackstone Group L.P. The Blackstone Group L.P. is controlled by its general partner,
Blackstone Group Management L.L.C. Stephen A. Schwarzman is the founding member of Blackstone
Group Management L.L.C. Each of such entities and Mr. Schwarzman may be deemed to beneficially
own the shares beneficially owned by the Blackstone Investors directly or indirectly
controlled by it or him, but each disclaims beneficial ownership of such shares except to the
extent of its or his indirect pecuniary interest therein. The address of the Blackstone
Investors and each other entity or individual described in this footnote is c/o The Blackstone
Group, L.P., 345 Park Avenue, New York, New York 10154. |
|
(2) |
|
Such entity is managed by a controlled affiliate of Brookfield Asset Management Inc. The
address of such entity is c/o Brookfield Retail Holdings LLC, Level 22, 135 King Street,
Sydney NSW 2000, Australia. |
|
(3) |
|
The shares of our common stock beneficially owned by Pershing Square are, or may be deemed to
be, beneficially held by Pershing Square Capital Management, L.P., PS Management GP, LLC and
Pershing Square GP, LLC, and William A. Ackman, who collectively share, or may be deemed to
share, dispositive and voting power over all shares held for the accounts of Pershing Square,
L.P., Pershing Square II, L.P. and Pershing Square International, Ltd. (or its wholly owned
subsidiary PSRH, Inc.), which is a Cayman Islands exempted company. Certain of the Pershing
Square entities also have additional economic exposure up to approximately 5,399,839 notional
shares of our common stock (approximately 13.6% of our outstanding shares as of our spin-off
on November 9, 2010, including shares issuable upon exercise of the warrants). The address of
Pershing Square is 888 Seventh Avenue, 42nd Floor, New York, New York 10019. |
|
(4) |
|
Such shares are beneficially owned by General Trust Company (GTC) solely in its capacity as
trustee of trusts, the beneficiaries of which are members of the Bucksbaum family which, for
purposes hereof, include the spouses and descendents of Martin, Matthew and Maurice Bucksbaum.
Certain of these trusts are the partners of M.B. Capital Partners III (M.B. Capital). GTC
has sole beneficial ownership of 4,242,244 shares of common stock. GTC and M.B. Capital share
beneficial ownership of 1,633,304 shares of common stock. The address of M.B. Capital is 300
North Dakota Avenue, Suite 202, Sioux Falls, South Dakota 57104. |
10
DESCRIPTION OF CAPITAL STOCK
The following is a summary of the material terms of our capital stock that are contained in
our amended and restated certificate of incorporation and bylaws, and is qualified in its entirety
by reference to these documents. You should refer to our amended and restated certificate of
incorporation and bylaws, which are included as exhibits to the registration statement of which
this prospectus is a part, along with the applicable provisions of Delaware law.
General
We were incorporated as a Delaware corporation on July 1, 2010. Our authorized capital stock
consists of 150 million shares of common stock, $0.01 par value per share, and 50 million shares of
preferred stock, $0.01 par value per share. Our board of directors may establish the rights and
preferences of the preferred stock from time to time. As of
May 17, 2011, 37,933,154 shares of our
common stock were issued and outstanding and no shares of preferred stock were issued and
outstanding.
Common Stock
Each holder of our common stock is entitled to one vote for each share on all matters to be
voted upon by the common stockholders, and there are no cumulative voting rights. Subject to any
preferential rights of any outstanding preferred stock, holders of our common stock will be
entitled to receive ratably the dividends, if any, as may be declared from time to time by our
board of directors out of funds legally available for that purpose. If there is a liquidation,
dissolution or winding up of our company, holders of our common stock would be entitled to ratable
distribution of our assets remaining after the payment in full of liabilities and any preferential
rights of any outstanding preferred stock.
Under the Shareholders Agreements, for so long as a Plan Sponsor and its affiliates
beneficially own 5% of our common stock on a fully diluted basis, such Plan Sponsor will be
provided with preemptive rights to purchase our common stock as necessary to allow them to maintain
their proportional ownership interest in us on a fully diluted basis, even though other holders of
outstanding shares of our common stock will not have such preemptive rights. Any such offering
could have a dilutive effect on the holders of outstanding shares of our common stock. Other than
the contractual preemptive rights of the Plan Sponsors, there are no preemptive or conversion
rights or other subscription rights, and there are no redemption or sinking fund provisions
applicable to the common stock. All outstanding shares of our common stock are fully paid and
non-assessable. The rights, preferences and privileges of the holders of our common stock are
subject to, and may be adversely affected by, the rights of the holders of shares of any series of
preferred stock that we may designate and issue in the future.
Preferred Stock
Our amended and restated certificate of incorporation provides that our board of directors is
authorized to provide for the issuance of shares of preferred stock in one or more series and, by
filing a certificate of designations pursuant to the applicable law of the State of Delaware
(hereinafter referred to as a Preferred Stock Designation), to establish from time to time for
each such series the number of shares to be included in each such series and to fix the
designations, powers, rights and preferences of the shares of each such series, and the
qualifications, limitations and restrictions thereof. The authority of the board of directors with
respect to each series of Preferred Stock includes, but is not limited to, determination of the
following:
|
|
|
the designation of the series, which may be by distinguishing number, letter or
title; |
|
|
|
|
the number of shares of the series, which number the board of directors may
thereafter (except where otherwise provided in the Preferred Stock Designation) increase
or decrease (but not below the number of shares thereof then outstanding); |
|
|
|
|
whether dividends, if any, shall be paid, and, if paid, the date or dates upon which,
or other times at which, such dividends shall be payable, whether such dividends shall
be cumulative or noncumulative, the rate of such dividends (which may be variable) and
the relative preference in payment of dividends of such series; |
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the redemption provisions and price or prices, if any, for shares of the series; |
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the terms and amounts of any sinking fund or similar fund provided for the purchase
or redemption of shares of the series; |
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the amounts payable on shares of the series in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the affairs of our corporation; |
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whether the shares of the series shall be convertible into shares of any other class
or series, or any other security, of our corporation or any other corporation, and, if
so, the specification of such other class or series of such other security, the
conversion price or prices, or rate or rates, any adjustments thereto, the date or dates
on which such shares shall be convertible and all other terms and conditions upon which
such conversion may be made; |
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restrictions on the issuance of shares of the same series or of any other class or
series; and |
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the voting rights, if any, of the holders of shares of the series. |
Warrants
This prospectus also relates to the warrants and to shares of our common stock issuable upon
the exercise, if any, of the warrants.
Pursuant to the Shareholders Agreements and the Blackstone Designation on November 9, 2010, we
issued:
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to Brookfield Investor warrants to purchase up to approximately 3.83 million shares
of our common stock with an initial exercise price of $50.00 per share; |
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to Fairholme warrants to purchase up to approximately 1.92 million shares of our
common stock with an initial exercise price of $50.00 per share, which are not being
registered pursuant to the registration statement of which this prospectus is a part; |
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to Pershing Square warrants to purchase up to approximately 1.92 million shares of
our common stock with an initial exercise price of $50.00 per share; and |
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to the Blackstone Investors warrants to purchase up to 0.33 million shares of our
common stock with an initial exercise price of $50.00 per share. |
The initial exercise price was determined through negotiations between GGP and the Plan
Sponsors. The warrants issued to each of Brookfield Investor, Pershing Square and the Blackstone
Investors are immediately exercisable; the warrants issued to Fairholme are exercisable upon 90
days prior notice for the first 6.5 years after issuance and exercisable without notice any time
thereafter. Each warrant has a term of seven years from the closing date of the investments. The
Pershing Square and Fairholme Warrants are net share settled, meaning that the exercise price for
the warrants will not be paid in cash and will instead be netted against the shares received upon
exercise of the warrants, resulting in fewer shares being issued. We will not issue any fractional
shares of common stock and warrant holders do not have any voting or other rights as a stockholder
of our company.
If we (i) pay a dividend in cash or other property or make a distribution on our common stock
in shares of common stock, (ii) subdivide our outstanding shares of common stock into a greater
number of shares or (iii) combine or reverse-split our outstanding shares of common stock into a
smaller number of shares, then the per share warrant price and the number of warrant shares will be
proportionately decreased and increased, respectively, in the case of a subdivision, distribution
or stock dividend, or proportionately increased and decreased, respectively, in the case of a
combination or reverse stock split. The warrants are also subject to adjustment upon certain rights
offerings, certain tender and exchange offerings, and certain recapitalizations, reorganizations,
reclassifications, mergers and sales of all or substantially all of our assets. The aggregate
warrant price payable for the then total number of warrant shares available for exercise under the
warrant will remain the same. In certain circumstances, upon the occurrence of a change of control,
other than a public stock merger or mixed consideration merger, each as defined in the warrant
agreement, holders of the warrants will have the right to require us to redeem the warrants at the
fair value of such warrants in cash as of the date of the change of control event as determined by
an independent financial expert employing a valuation methodology provided for in the terms of the
warrants. Upon the occurrence of a public stock merger or a mixed consideration merger, we may
elect to redeem the warrants at fair value or, to the extent of stock consideration, have the
warrants continue as warrants on the stock of the acquiring parent company as provided in the
warrant agreement.
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On November 22, 2010, we entered into warrant agreements with David R. Weinreb, our Chief
Executive Officer, and Grant Herlitz, our President and from January 31, 2011 through March 28,
2011, our Interim Chief Financial Officer, in each case prior to his appointment to such position,
pursuant to which: (a) Mr. Weinreb purchased a warrant to acquire 2,367,985 shares of Company
common stock for a purchase price of $15.0 million in cash; and (b) Mr. Herlitz purchased a warrant
to acquire 315,731 shares of Company common stock for a purchase price of $2.0 million in cash,
both of which purchase prices were determined to be at the warrants then current fair value. The
warrants have an exercise price of $42.23 per share and will, excluding certain specific
circumstances, become exercisable in November 2016 and will expire in November 2017.
On February 25, 2011, the Company also entered into a warrant agreement with Andrew C.
Richardson, our Chief Financial Officer effective as of March 28, 2011, prior to his appointment to
such position, pursuant to which Mr. Richardson purchased a warrant to acquire 178,971 shares of
company common stock for a purchase price of $2.0 million in cash, which purchase price was
determined to be at current fair value. The warrant has an exercise price of $54.40 per share and
will generally become exercisable in February 2017 and will expire in February 2018.
No market exists for the warrants. We cannot ensure that the warrants will be listed on any
securities exchange or automated quotation system. On May 17, 2011, warrants to purchase 10,862,687
shares of our common stock were outstanding.
Section 382 Restrictions
Our certificate of incorporation imposes certain restrictions on the direct or indirect
transferability of our securities to assist in the preservation of our valuable tax attributes
(generally consisting of (1) approximately $400 million of suspended federal income tax deductions
and (2) a relatively high federal income tax basis in our assets), including, subject to certain
exceptions, that until the earlier of such time as our board of directors determines that it is no
longer in our best interests to continue to impose such restrictions or the date that is three
years after November 9, 2010 (i) no person or entity may acquire or accumulate the Threshold
Percentage or more (as determined under tax law principles governing the application of section 382
of the Code) of our securities, and (ii) no person owning directly or indirectly (as determined
under such tax law principles) on November 9, 2010, after giving effect to the Plan, the Threshold
Percentage or more of our securities may acquire additional securities of ours. Notwithstanding the
contemplated restrictions in our certificate of incorporation, no assurance can be given regarding
our ability to preserve our tax attributes. Threshold Percentage means, in the case of (i) HHC
common stock, 4.99% of the number of outstanding shares of HHC common stock and (ii) any other
class of equity of HHC, 4.99% of each such class.
Anti-Takeover Effects of Various Provisions of Delaware Law and our Certificate of Incorporation
and Bylaws
Provisions of the DGCL and our amended and restated certificate of incorporation and bylaws
could make it more difficult to acquire us by means of a tender offer, a proxy contest or
otherwise, or to remove incumbent officers and directors. These provisions, summarized below, are
expected to discourage certain types of coercive takeover practices and takeover bids that our
board of directors may consider inadequate and to encourage persons seeking to acquire control of
us to first negotiate with our board of directors. We believe that the benefits of increased
protection of our ability to negotiate with the proponent of an unfriendly or unsolicited proposal
to acquire or restructure us outweigh the disadvantages of discouraging takeover or acquisition
proposals because, among other things, negotiation of these proposals could result in improved
terms for our stockholders.
Delaware Anti-Takeover Statute. We are subject to Section 203 of the DGCL, an anti-takeover
statute. In general, Section 203 of the DGCL prohibits a publicly-held Delaware corporation from
engaging in a business combination with an interested stockholder for a period of three years
following the time the person became an interested stockholder, unless the business combination or
the acquisition of shares that resulted in a stockholder becoming an interested stockholder is
approved in a prescribed manner. Generally, a business combination includes a merger, asset or
stock sale, or other transaction resulting in a financial benefit to the interested stockholder.
Generally, an interested stockholder is a person who, together with affiliates and associates,
owns (or within three years prior to the determination of interested stockholder status did own)
15% or more of a corporations outstanding voting stock. The existence of this provision would be
expected to have an anti-takeover effect with respect to transactions not approved in advance by
the board of directors, including discouraging attempts that might result in a premium over the
market price for the shares of common stock held by stockholders.
Size of Board and Vacancies. Our bylaws provide that the number of directors on our board of
directors will be fixed exclusively by our board of directors. Subject to the rights of the holders
of any series of preferred stock then outstanding, newly created directorships resulting from any
increase in our authorized number of directors will be filled by a majority of our board of
directors then in office, provided that a majority of the entire board of directors, or a quorum,
unless the board of directors otherwise determines
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that such directorships should be filled by the affirmative vote of the stockholders of record
of at least a majority of the voting stock, is present and any vacancies in our board of directors
resulting from death, resignation, retirement, disqualification, removal from office or other cause
will be filled generally, subject to the rights of certain parties, by the majority vote of our
remaining directors in office, even if less than a quorum is present.
Special Stockholder Meetings. Under our amended and restated certificate of incorporation and
bylaws, our board of directors may call special meetings of our stockholders as well as the
Secretary upon written request by stockholders who together hold 15% or more of the voting power of
the issued and outstanding shares of the capital stock of our corporation entitled to vote
generally on the election of directors.
Prohibition of Stockholder Action by Written Consent. Our amended and restated certificate of
incorporation and bylaws expressly prohibits our stockholders from acting by written consent.
Stockholder action must take place at the annual or a special meeting of our stockholders.
Requirements for Advance Notification of Stockholder Nominations and Proposals. Our amended
and restated bylaws establish advance notice procedures with respect to stockholder proposals and
nomination of candidates for election as directors other than nominations made by or at the
direction of our board of directors or a committee of our board of directors.
No Cumulative Voting. The DGCL provides that stockholders are denied the right to cumulate
votes in the election of directors unless our certificate of incorporation provides otherwise. Our
amended and restated certificate of incorporation does not provide for cumulative voting.
Indemnification of Officers and Directors
Our amended and restated certificate of incorporation will include provisions that indemnify,
to the fullest extent allowable under the DGCL, the personal liability of directors or officers for
monetary damages for actions taken as a director or officer of the Company, or for serving at our
request as a director or officer or another position at another corporation or enterprise, as the
case may be. Our amended and restated certificate of incorporation will also provide that it must
indemnify and advance reasonable expenses to our directors and officers, subject to our receipt of
an undertaking from the indemnified party as may be required under the DGCL. We intend to enter
into indemnification agreements with each of our directors and certain officers. These agreements,
among other things, require us to indemnify each director and certain officers to the fullest
extent permitted by Delaware law, including indemnification of expenses such as attorneys fees,
judgments, fines and settlement amounts reasonably incurred by the director or officer in any
action or proceeding, including any action or proceeding by or in right of us, arising out of the
persons services as a director or executive officer. We are also expressly authorized to carry
directors and officers insurance to protect us, our directors, officers and certain employees for
some liabilities. The limitation of liability and indemnification provisions in our amended and
restated certificate of incorporation may discourage stockholders from bringing a lawsuit against
directors for breach of their fiduciary duty. These provisions may also have the effect of reducing
the likelihood of derivative litigation against directors and officers, even though such an action,
if successful, might otherwise benefit us and our stockholders. However, this provision does not
limit or eliminate our rights, or those of any stockholder, to seek non-monetary relief such as
injunction or rescission in the event of a breach of a directors duty of care. The provisions will
not alter the liability of directors under the federal securities laws. In addition, your
investment may be adversely affected to the extent that, in a class action or direct suit, we pay
the costs of settlement and damage awards against directors and officers pursuant to these
indemnification provisions. There is currently no pending material litigation or proceeding against
any of our directors, officers or employees for which indemnification is being sought.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to directors, officers or persons controlling the registrant pursuant to the foregoing provisions,
the registrant has been informed that in the opinion of the SEC such indemnification is against
public policy as expressed in the Act and is therefore unenforceable.
Authorized but Unissued Shares.
Our authorized but unissued shares of common stock and preferred stock is available for future
issuance without your approval. We may use additional shares for a variety of purposes, including
future public offerings to raise additional capital, to fund acquisitions and as employee
compensation. The existence of authorized but unissued shares of common stock and preferred stock
could render more difficult or discourage an attempt to obtain control of us by means of a proxy
contest, tender offer, merger or otherwise.
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Transfer Agent and Registrar
The transfer agent and registrar for the common stock is BNY Mellon, New York, New York.
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PLAN OF DISTRIBUTION
We are registering shares of HHC common stock and warrants issued or issuable to the selling
stockholders to permit the resale of these shares of HHC common stock and warrants by the holders
thereof from time to time after the date of this prospectus. We are registering (i) shares of our
common stock issuable to Pershing Square and GTC, as trustee, in connection with the spin-off, (ii)
shares of our common stock issuable upon the exercise of stock options to acquire our common stock
held by certain of the selling stockholders named herein, (iii) warrants issued to the Brookfield
Investor, Pershing Square and the Blackstone Investors pursuant to our predecessors plan of
reorganization, (iv) shares of our common stock issuable upon exercise of the warrants issuable to
Brookfield Investor, Pershing Square and the Blackstone Investors pursuant to our predecessors
plan of reorganization, and (v) shares of our common stock issued to Brookfield Investor, Pershing
Square and the Blackstone Investors pursuant to the Shareholders Agreements and the Blackstone
Designation. We do not know when or in what amount the selling stockholders may offer the shares or
warrants for sale. We expect that the offering price for our common stock will be based on the
prevailing market price of our common stock at the time of sale. There is currently no established
market price for the warrants. We expect that the offering price for the warrants will be based on
the relationship between the exercise price of the warrants and the prevailing market price for our
common stock at the time of sale.
Some of the shares of our common stock and the warrants offered hereby were originally issued
to the Plan Sponsors pursuant to an exemption from the registration requirements of the Securities
Act. The Blackstone Investors are permitted assignees of the rights of the Plan Sponsors. We agreed
to register such shares of our common stock and the warrants pursuant to the Shareholders
Agreements and the Warrant Agreement, dated November 9, 2010, between The Howard Hughes Corporation
and Mellon Investor Services LLC. We also agreed to register the common stock issuable to GTC
pursuant to a Registration Rights Agreement, dated November 9, 2010, between The Howard Hughes
Corporation and M.B. Capital. We will pay all expenses of the registration of the shares of our
common stock and the warrants pursuant to the Registration Rights Agreement, dated November 9,
2010, between The Howard Hughes Corporation, GTC and M.B. Capital, the Registration Rights
Agreement, dated November 9, 2010, between The Howard Hughes Corporation and the Brookfield
Investor and the Registration Rights Agreement, dated November 9, 2010, between The Howard Hughes
Corporation and Pershing Square (all together, the Registration Rights Agreements), including,
without limitation, SEC filing fees and expenses of compliance with state securities or blue sky
laws; provided, however, that each selling stockholder will pay all underwriting discounts and
selling commissions. We will indemnify the selling stockholders against certain liabilities,
including some liabilities under the Securities Act, in accordance with the Registration Rights
Agreements or the selling stockholders will be entitled to contribution. We may be indemnified by
the selling stockholders against civil liabilities, including liabilities under the Securities Act
that may arise from any written information furnished to us by the selling stockholders
specifically for use in this prospectus, in accordance with the Registration Rights Agreements or
we may be entitled to contribution.
We will not receive any proceeds from sales of any shares of our common stock or warrants by
the selling stockholders.
The selling stockholders (or their pledgees, donees, transferees, distributees or successors
in interest selling shares received from a named selling stockholder as a gift, partnership
distribution or other non-sale-related transfer after the date of this prospectus (all of whom may
be selling stockholders)) may sell all or a portion of the shares of HHC common stock or warrants
beneficially owned by them and offered hereby from time to time directly or through one or more
underwriters, broker-dealers or agents, and any broker-dealers or agents may arrange for other
broker-dealers or agents to participate in effecting sales of these securities. These underwriters
or broker-dealers may act as principals, or as an agent of a selling stockholder. If the shares of
HHC common stock or warrants are sold through underwriters or broker-dealers, the selling
stockholders will be responsible for underwriting discounts or commissions or agents commissions.
The shares of HHC common stock or warrants may be sold on any national securities exchange or
automated interdealer quotation system on which the securities may be listed or quoted at the time
of sale, in the over-the-counter market or in transactions otherwise than on these exchanges or
systems or in the over-the-counter market and in one or more transactions at fixed prices, at
prevailing market prices at the time of the sale, at varying prices determined at the time of sale,
or at negotiated prices. These sales may be effected in a variety of transactions, which may
involve crosses or block transactions. The selling stockholders may use any one or more of the
following methods when selling shares or warrants:
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purchases by underwriters, brokers, dealers, and agents who may receive compensation
in the form of underwriting discounts, concessions or commissions from the selling
stockholders and/or the purchasers of the shares or warrants for whom they may act as
agent; |
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ordinary brokerage transactions and transactions in which the broker solicits
purchasers; |
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one or more block trades in which a broker or dealer so engaged will attempt to sell
the shares as agent, but may position and resell a portion of the block as principal to
facilitate the transaction, or in crosses in which the same broker acts as agent on both
sides; |
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purchases by a broker or dealer (including a specialist or market maker) as principal
and resale by such broker or dealer for its account pursuant to this prospectus; |
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an exchange distribution in accordance with the rules of any stock exchange on which
the shares of HHC common stock or warrants are listed; |
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face-to-face privately negotiated transactions between sellers and purchasers without
a broker-dealer; |
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an agreement between broker-dealers and the selling stockholders to sell a specified
number of such shares or warrants at a stipulated price per share; |
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the pledge of shares or warrants as security for any loan or obligation, including
pledges to brokers or dealers who may from time to time effect distributions of the
shares, the warrants or other interests in the shares; |
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settlement of short sales or transactions to cover short sales relating to the shares
or warrants entered into after the effective date of the registration statement of which
this prospectus is a part; |
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distributions to creditors, equity holders, partners and members of the selling
stockholders; |
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transactions in options, swaps or other derivatives (whether listed on an exchange or
otherwise); |
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sales in other ways not involving market makers or established trading markets,
including direct sales to institutions or individual purchasers; and |
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any combination of the foregoing or by any other legally available means. |
The selling stockholders may also transfer the shares of our common stock or warrants by gift.
We do not know of any arrangements by the selling stockholders for the sale of any of the shares of
our common stock or warrants.
The selling stockholders also may resell all or a portion of the shares of our common stock or
the warrants in open market transactions in reliance upon Rule 144 under the Securities Act, as
permitted by that rule, or Section 4(1) under the Securities Act, if available, rather than under
this prospectus, provided that they meet the criteria and conform to the requirements of those
provisions.
Brokers or dealers engaged by the selling stockholders may arrange for other brokers or
dealers to participate in sales. If the selling stockholders effect such transactions by selling
shares of our common stock or warrants to or through underwriters, brokers, dealers or agents, such
underwriters, brokers, dealers or agents may receive compensation in the form of discounts,
concessions or commissions from the selling stockholders. Underwriters, brokers, dealers or agents
may also receive compensation from the purchasers of shares of our common stock for whom they act
as agents or to whom they sell as principals, or both. Such commissions will be in amounts to be
negotiated, but, except as set forth in a supplement to the prospectus contained in the
registration statement, in the case of an agency transaction will not be in excess of a customary
brokerage commission in compliance with NASD Rule 2440; and in the case of a principal transaction
a markup or markdown in compliance with NASD IM 2440-1 and NASD IM 2440-2.
In connection with sales of the shares of our common stock, the warrants or otherwise, the
selling stockholders (or their pledgees, donees, transferees, distributees or successors in
interest) may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of shares of our common stock or the warrants in the course
of hedging in positions they assume. The selling stockholders may also sell these securities short,
and if such short sales shall take place after the date that the registration statement is declared
effective by the SEC, the selling stockholders may deliver the securities covered by this
prospectus to close out short positions and to return borrowed shares in connection with such short
sales. The selling stockholders may also loan or pledge shares of our common stock or the warrants
to broker-dealers that in turn may sell such securities, to the extent permitted by applicable law.
The selling stockholders may also enter into option or other transactions with broker-dealers or
other financial institutions or one or more derivative transactions which require the delivery to
such broker-dealer or other financial
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institution of securities offered by this prospectus, which securities such broker-dealer or
other financial institution may resell pursuant to this prospectus (as supplemented or amended to
reflect such transaction). Notwithstanding the foregoing, the selling stockholders have been
advised that they may not use securities registered on the registration statement to cover short
sales of our common stock made prior to the date the registration statement, of which this
prospectus forms a part, has been declared effective by the SEC.
Subject to any applicable company policy, the selling stockholders (or their pledgees, donees,
transferees, distributees or successors in interest) may, from time to time, pledge, hypothecate or
grant a security interest in some or all of the securities registered by the registration statement
owned by them and, if they default in the performance of their secured obligations, the pledgees,
secured parties or persons to whom the securities have been hypothecated may offer and sell such
securities from time to time pursuant to this prospectus or any amendment to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act, amending, if necessary, the
list of selling stockholders to include the pledgee, transferee, persons to whom the securities
have been hypothecated or other successors in interest as selling stockholders under this
prospectus. The plan of distribution for that selling stockholders shares of our common stock or
the warrants will otherwise remain unchanged. The selling stockholders (or their pledgees, donees,
transferees, distributees or successors in interest) also may transfer and donate the shares of our
common stock or the warrants in other circumstances in which case the transferees, donees,
pledgees, persons to whom the securities have been hypothecated or other successors in interest
thereof will be the selling beneficial owners for purposes of this prospectus.
The selling stockholders (or their pledgees, donees, transferees, distributees or successors
in interest) and any broker-dealers or agents participating in the distribution of the shares of
our common stock may be deemed to be underwriters within the meaning of Section 2(a)(11) of the
Securities Act in connection with such sales. In such event, any profits realized by the selling
stockholders and any compensation earned by such broker-dealers or agents may be deemed to be
underwriting commissions or discounts under the Securities Act. Selling stockholders (or their
pledgees, donees, transferees, distributees or successors in interest) who are underwriters
within the meaning of Section 2(a)(11) of the Securities Act will be subject to the applicable
prospectus delivery requirements of the Securities Act including Rule 172 thereunder and may be
subject to certain statutory liabilities of, including, but not limited to, Sections 11, 12 and 17
of the Securities Act and Rule 10b-5 under the Exchange Act. We will make copies of this prospectus
(as it may be amended or supplemented from time to time) available to the selling stockholders (or
their pledgees, donees, transferees, distributees or successors in interest) for the purpose of
satisfying any prospectus delivery requirements. Except as otherwise set forth herein, each selling
stockholder has informed the Company that it is not a registered broker-dealer or is not an
affiliate of a registered broker-dealer and does not have any written or oral agreement or
understanding, directly or indirectly, with any person to distribute our common stock or the
warrants. In no event shall any broker dealer receive fees, commissions and markups that, in the
aggregate, would exceed eight percent (8%). Brookfield Financial US, LLC, an affiliate of
Brookfield Investor, is a Delaware limited liability company formed on July 21, 2009 and a
registered broker-dealer. Its registration with the SEC and Financial Industry Regulatory Authority
(FINRA) was approved on March 31, 2010.
Under the securities laws of some states, the shares of our common stock or the warrants may
be sold in such states only through registered or licensed brokers or dealers. In addition, in some
states the shares of our common stock or the warrants may not be sold unless such shares or the
warrants have been registered or qualified for sale in such state or an exemption from registration
or qualification is available and is complied with by us.
The selling stockholders (or their pledgees, donees, transferees, distributees or successors
in interest) may sell the shares covered by this prospectus from time to time, and may also decide
not to sell all or any of the shares they are allowed to sell under this prospectus. The selling
stockholders (or their pledgees, donees, transferees, distributees or successors in interest) will
act independently of us in making decisions regarding the timing, manner, and size of each sale.
There can be no assurance, however, that all or any of the shares will be offered by the selling
stockholders. We know of no existing arrangements between any selling stockholders and any broker,
dealer, finder, underwriter, or agent relating to the sale or distribution of the securities.
Each selling stockholder (or its pledgees, donees, transferees, distributees or successors in
interest) and any other person participating in such distribution will be subject to applicable
provisions of the Exchange Act and the rules and regulations thereunder, including, without
limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of our common stock or the warrants by the selling
stockholder and any other participating person. To the extent applicable, Regulation M may also
restrict the ability of any person engaged in the distribution of the shares of our common stock or
the warrants to engage in market-making activities with respect to the shares of our common stock
or the warrants. All of the foregoing may affect the marketability of the shares of our common
stock and the ability of any person or entity to engage in market-making activities with respect to
the shares of our common stock or the warrants.
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To the extent permitted by applicable law, this plan of distribution may be modified in a
prospectus supplement or otherwise. All of the foregoing may affect the marketability of the
securities offered hereby. This offering will terminate on the date that all securities offered by
this prospectus have been sold by the selling stockholders.
The expenses we expect to incur in connection with the registration and distribution of the
securities being offered in this prospectus are estimated to be $1,500,256.
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UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
The following is a summary of the material U.S. federal income tax consequences of the
purchase, ownership and disposition of our common stock and warrants. Except where noted, this
summary deals only with common stock and warrants held as capital assets. This summary is based
upon the provisions of the Code, regulations promulgated thereunder and judicial and administrative
rulings and decisions now in effect, all of which are subject to change or differing
interpretations, possibly with retroactive effect. This summary does not purport to address all
aspects of U.S. federal income taxation that may affect particular investors in light of their
individual circumstances, or certain types of investors subject to special treatment under the U.S.
federal income tax laws, such as persons that mark to market their securities, financial
institutions (including banks), individual retirement and other tax-deferred accounts, tax-exempt
organizations, regulated investment companies, REITs, controlled foreign corporations, passive
foreign investment companies, broker-dealers, former U.S. citizens or long-term residents, life
insurance companies, persons that hold common stock or warrants as part of a hedge against currency
or interest rate risks or that hold common stock or warrants as part of a straddle, conversion
transaction or other integrated investment, or U.S. holders that have a functional currency other
than the U.S. dollar. This discussion does not address any tax consequences arising under the laws
of any state, local or non-U.S. jurisdiction or any estate, gift or alternative minimum tax
consequences.
For purposes of this summary, a U.S. holder is a beneficial owner of common stock or
warrants that is, for U.S. federal income tax purposes.
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an individual citizen or resident of the United States; |
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a corporation, or other entity treated as a corporation for U.S. federal income tax
purposes, created or organized in or under the laws of the United States, any state
thereof or the District of Columbia; |
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an estate, the income of which is subject to U.S. federal income taxation regardless
of its source; or |
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a trust if (a) a court within the United States is able to exercise primary
jurisdiction over administration of the trust and one or more United States persons have
authority to control all substantial decisions of the trust or (b) it was in existence
on August 20, 1996 and has a valid election in effect under applicable Treasury
regulations to be treated as a domestic trust for U.S. federal income tax purposes. |
For purposes of this summary, a non-U.S. holder is a beneficial owner of common stock or
warrants that is not a U.S. holder or a partnership (including an entity or arrangement treated as
a partnership for U.S. federal income tax purposes). If a partnership (including an entity or
arrangement treated as a partnership for U.S. federal income tax purposes) is a beneficial owner of
common stock or warrants, the tax treatment of a partner will generally depend upon the status of
the partner and the activities of the partnership. A beneficial owner that is a partnership and
partners in such a partnership should consult their tax advisors about the U.S. federal income tax
considerations of the purchase, ownership and disposition of our common stock and warrants.
Taxation of U.S. holders
Sale or other disposition of common stock
You will generally recognize capital gain or loss on a sale or other disposition of common
stock. Your gain or loss will equal the difference between the proceeds you received and your
adjusted tax basis in the common stock (for the initial basis of common stock acquired by exercise
of a warrant, see Exercise of warrants). The proceeds received will include the amount of any
cash and the fair market value of any other property received for the common stock. If you are a
non-corporate, U.S. holder and your holding period for the common stock at the time of the sale or
other disposition exceeds one year, such capital gain generally will, under current law, be subject
to a reduced federal income tax rate. Your ability to offset ordinary income with capital losses is
subject to limitations.
Distributions on common stock
Any distributions made on the our common stock will constitute dividends for U.S. federal
income tax purposes to the extent of our current or accumulated earnings and profits as determined
under U.S. federal income tax principles. To the extent that a U.S. holder receives distributions
that would otherwise constitute dividends for U.S. federal income tax purposes but that exceed our
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current and accumulated earnings and profits, such distributions will be treated first as a
non-taxable return of capital reducing the U.S. holders basis in its shares. Any such
distributions in excess of the U.S. holders basis in its shares (determined on a share-by-share
basis) generally will be treated as capital gain. Subject to certain exceptions, dividends received
by non-corporate U.S. holders prior to 2013 will be taxed under current law at a maximum rate of
15%, provided that certain holding period requirements and other requirements are met. Any such
dividends received after 2012 will be taxed at the rate applicable to ordinary income. Dividends
paid to U.S. holders that are corporations generally will be eligible for the dividends-received
deduction so long as we have sufficient earnings and profits.
Certain events, such as adjustments to the exercise price of the warrants, could, in some
circumstances, result in a deemed taxable distribution to a U.S. holder of our common stock if the
adjustment has the effect of increasing the proportionate interest of the U.S. holder in our
earnings and profits or assets, without regard to whether the U.S. holder receives any cash or
other property. However, adjustments to the exercise price of the warrants made pursuant to a bona
fide reasonable adjustment formula that has the effect of preventing the dilution of the interests
of U.S. holders generally will not result in a deemed taxable distribution. In the event of a
deemed taxable distribution, a U.S. holders basis in its common stock will be increased by the
amount of the taxable distribution. If a deemed taxable distribution occurs, such deemed
distribution would be taxable as a dividend, return of capital or capital gain in accordance with
the rules discussed herein, and U.S. holders may recognize income as a result even though they
receive no cash or property.
Sale or other taxable disposition of warrants
You will generally recognize capital gain or loss on a sale or other disposition of warrants.
Your gain or loss will equal the difference between the proceeds you received and your adjusted tax
basis in the warrants. The proceeds received will include the amount of any cash and the fair
market value of any other property received for the warrants. A U.S. holders adjusted tax basis in
the warrant generally will equal the U.S. holders cost to acquire the warrant, as adjusted in the
manner described below, under Adjustments under the warrants. If you are a non-corporate U.S.
holder and your holding period for the warrants at the time of the sale or other disposition
exceeds one year, such capital gain generally will, under current law, be subject to a reduced
federal income tax rate. Your ability to offset ordinary income with capital losses is subject to
limitations.
Exercise of warrants
Because the warrants permit settlement though a cashless net share settlement, the U.S.
federal income tax consequences of the exercise of a warrant are not entirely clear. It is expected
that a U.S. holder exercising a warrant would not recognize gain or loss for U.S. federal income
tax purposes because either (i) the warrant should be treated as an option to acquire common stock
or (ii) the exercise of the warrant for common stock is treated as a tax free recapitalization.
In either case, a U.S. holders initial tax basis in the common stock received (including any tax
basis attributable to a fractional share of common stock), would equal such U.S. holders adjusted
tax basis in the warrant exercised, increased by the amount of cash paid (if any) to exercise the
warrant. If the warrant is treated as an option to acquire common stock, a U.S. holders holding
period for the common stock received on exercise generally would commence on the day following the
exercise. If exercise of the warrant is treated as a tax free recapitalization, a U.S. holders
holding period generally would include the U.S. holders holding period for the warrant exercised.
Despite the foregoing, the IRS could take the position that the exercise of a warrant
constitutes a taxable exchange resulting in gain or loss, which would be capital gain or loss. The
amount of capital gain or loss recognized on such an exchange and its character as short term or
long term would depend on the position taken by the IRS regarding the nature of that exchange. If
the U.S. holder is treated as exchanging the warrants for shares of our common stock, the amount of
capital gain or loss would be the difference between the fair market value of our common stock (and
cash received in lieu of a fractional share of common stock), reduced by the amount of cash paid
(if any) to exercise the warrants, and the U.S. holders adjusted tax basis in the warrants
exchanged. In that case, the U.S. holder would have long term capital gain or loss if it has held
the warrants for more than one year and the U.S. holders initial tax basis in the common stock
received would equal its fair market value.
Alternativelyspecifically if the exercising U.S. holder elects a cashless net share
settlementthe IRS could take the position that the U.S. holder is treated as selling a portion
of the warrants or underlying common stock for cash that is used to pay the exercise price for the
warrants, in which case the amount of capital gain or loss would be the difference between that
exercise price and the U.S. holders adjusted tax basis attributable to the warrants or common
stock deemed sold. If the U.S. holder is treated as selling warrants, such U.S. holder would have
long term capital gain or loss if the U.S. holder held the warrants for more than one year at the
time of exercise. If the U.S. holder is treated as selling underlying common stock, such U.S.
holder would have short term capital gain or loss.
21
The U.S. holders initial tax basis in the common stock received would equal such U.S.
holders adjusted tax basis in the warrants deemed exercised, increased by the U.S. holders deemed
amount realized from the warrants or common stock deemed sold.
If you are a non-corporate U.S. holder and your holding period for the warrants at the time of
the sale or other disposition exceeds one year, such capital gain generally will, under current
law, be subject to a reduced federal income tax rate. Your ability to offset ordinary income with
capital losses is subject to limitations.
A U.S. holder that receives cash in lieu of receipt of a fractional share of common stock
should generally be treated as recognizing capital gain or loss in an amount equal to the
difference, if any, between the amount of cash received and the adjusted tax basis allocable to the
fractional share.
U.S. holders should consult their tax advisors regarding the tax consequences of the exercise
of the warrants.
Lapse of warrants
A U.S. holder that allows a warrant to lapse would generally recognize a loss for U.S. federal
income tax purposes equal to the adjusted tax basis of the warrant. In general, such a loss would
be a capital loss, and would be a short term or long term capital loss depending on the U.S.
holders holding period for the warrant.
Adjustments under the warrants
Certain events, such as adjustment of the exercise price of the warrants, could, in certain
circumstances, result in a deemed taxable distribution to a U.S. holder of warrants if the
adjustment has the effect of increasing the proportionate interest of the U.S. holder in our
earnings and profits or assets, without regard to whether the U.S. holder receives any cash or
other property. However, adjustments to the exercise price made pursuant to a bona fide reasonable
adjustment formula that has the effect of preventing the dilution of the interests of U.S. holders
of the warrants generally will not result in a deemed taxable distribution. In the event of a
deemed taxable distribution, a U.S. holders basis in its warrants will be increased by the amount
of the deemed taxable distribution. If a deemed taxable distribution occurs, such deemed
distribution would be taxable as a dividend, return of capital or capital gain in accordance with
the rules discussed herein, and U.S. holders may recognize income as a result even though they
receive no cash or property.
Taxation of non-U.S. holders
Sale or other disposition of our common stock and warrants
You generally will not be subject to U.S. federal income tax on gain realized upon a sale or
other disposition of common stock and warrants unless the shares or warrants constitute a United
States Real Property Interest, or USRPI (which determination generally includes a five-year
look-back period), within the meaning of the Foreign Investment in Real Property Tax Act of 1980,
or FIRPTA. Shares and warrants to acquire shares of any U.S. corporation are presumed to be a USRPI
unless an exception from such status under the FIRPTA rules applies.
Gain arising from a sale or exchange of a non-U.S. holders shares of our common stock or
warrants will generally not be subject to taxation under FIRPTA as a sale of a USRPI if:
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in the case of our common stock, (a) shares of our common stock are regularly
traded, as defined by applicable Treasury Regulations, on an established securities
market, such as the NYSE, and (b) the non-U.S. holder owns or owned, actually and
constructively, 5% or less of the shares of our common stock throughout the five-year
period ending on the date of the sale or exchange; and |
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in the case of our warrants, either (a)(i) shares of our common stock are
regularly traded, as defined by applicable Treasury Regulations, on an established
securities market, such as the NYSE, (ii) our warrants are not considered regularly
traded on an established securities market and (iii) the non-U.S. holder does not own,
actually or constructively, warrants with a fair market value greater than the fair
market value of 5% of the shares of our common stock, determined as of the date that
such non-U.S. holder acquired its warrants, or (b)(i) our warrants are considered
regularly traded on an established securities market, such as the NYSE and (ii) the
non-U.S. holder owns |
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or owned, actually and constructively, 5% or less of our warrants throughout the
five-year period ending on the date of the sale or exchange. |
We expect the shares of our common stock to be regularly traded on an established securities
market. Thus, at the time a non-U.S. holder sells or exchanges its shares of our common stock or
warrants, as long as our shares are regularly traded on an established securities market at that
time and the non-U.S. holder does not own, or has not owned during the five-year period ending on
the date of the sale or exchange, more than 5% of the shares of our common stock or, depending on
whether the warrants are considered regularly traded on an established securities market, warrants
having a fair market value greater than the value of more than 5% of our common stock, determined
as of the date such warrants were acquired, or more than 5% of our warrants, any gain arising from
the sale of the holders shares of our common stock or warrants generally will not be subject to
taxation under FIRPTA as a sale of a USRPI.
If gain on the sale or exchange of a non-U.S. holders shares of our common stock or warrants
is subject to taxation under FIRPTA, the non-U.S. holder will be subject to regular U.S. federal
income tax with respect to the gain in the same manner as a U.S. holder (subject to any applicable
alternative minimum tax and a special alternative minimum tax in the case of nonresident alien
individuals). In addition, if at the time of the sale or exchange of shares of our common stock or
warrants, the shares are not regularly traded on an established securities market, then the
purchaser of the shares of our common stock or warrants will be required to withhold and remit an
amount equal to 10% of the purchase price to the IRS.
Notwithstanding the foregoing, gain from the sale or exchange of shares of our common stock or
warrants not otherwise subject to taxation under FIRPTA will be taxable to a non-U.S. holder if
either (1) the investment in shares of our common stock or warrants is treated as effectively
connected with the non-U.S. holders United States trade or business (and, if a tax treaty applies,
is attributable to a U.S. permanent establishment maintained by the non-U.S. holder) or (2) the
non-U.S. holder is a nonresident alien individual who is present in the United States for 183 days
or more during the taxable year and certain other conditions are met.
Distributions
Any distributions made with respect to common stock or a deemed distribution with respect to
our common stock or warrants resulting from an adjustment to the exercise price of the warrants
will constitute a dividend for U.S. federal income tax purposes to the extent of our current or
accumulated earnings and profits as determined under U.S. federal income tax principles. You
generally will be subject to U.S. federal withholding tax at a 30% rate on the gross amount of such
taxable dividend unless:
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the dividend is effectively connected with your conduct of a U.S. trade or business
(and you provide to the person who otherwise would be required to withhold U.S. tax an
IRS Form W-8ECI (or suitable substitute or successor form) to avoid withholding); or |
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an applicable tax treaty provides for a lower rate of withholding tax (and you
certify your entitlement to benefits under the treaty by delivering a properly completed
IRS Form W-8BEN) to the person required to withhold U.S. tax. |
Except to the extent provided by an applicable tax treaty, a dividend that is effectively
connected with the conduct of a U.S. trade or business will be subject to U.S. federal income tax
on a net basis at the rates applicable to United States persons generally (and, if you are a
corporation, may also be subject to a 30% branch profits tax unless reduced by an applicable tax
treaty).
Exercise of warrants
Subject to the discussion above in Taxation of U.S. holdersExercise of Warrants, you
will generally not recognize any income, gain or loss upon the exercise of the warrants, provided
that warrants are exempt from tax under FIRPTA. However, if a disposition of the warrants would be
subject to tax under FIRPTA as discussed above, the exchange of such warrants for common stock may
be taxable (e.g., if the warrants are considered regularly traded on an established securities
market and you own more than 5% of the total fair market value of warrants outstanding, but
exercise your warrants for 5% or less of the total amount of our common stock outstanding).
Non-U.S. holders should consult their tax advisors regarding the tax consequences of the exercise
of the warrants.
Information reporting and backup withholding
Information returns may be filed with the IRS in connection with distributions on common stock
or warrants and the proceeds of a sale or other disposition of common stock or warrants. A
non-exempt U.S. holder may be subject to U.S. backup withholding on these
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payments if it fails to provide its taxpayer identification number to the withholding agent
and comply with certification procedures or otherwise establish an exemption from backup
withholding.
A non-U.S. holder may be subject to the U.S. information reporting and backup withholding on
these payments unless the non-U.S. holder complies with certification procedures to establish that
it is not a United States person. The certification requirements generally will be satisfied if the
non-U.S. holder provides the applicable withholding agent with a statement on IRS Form W-8BEN (or
suitable substitute or successor form), together with all appropriate attachments, signed under
penalties of perjury, stating, among other things, that such non-U.S. holder is not a United States
person (within the meaning of the Code). Applicable Treasury regulations provide alternative
methods for satisfying this requirement. In addition, the amount of distributions on common stock
or warrants paid to a non-U.S. holder, and the amount of any U.S. federal tax withheld there from,
must be annually reported to the IRS and the holder. This information may be made available by the
IRS under the provisions of an applicable tax treaty or agreement to the tax authorities of the
country in which the non-U.S. holder resides.
Payment of the proceeds of the sale or other disposition of common stock or warrants to or
through a non-U.S. office of a U.S. broker or of a non-U.S. broker with certain specified U.S.
connections generally will be subject to information reporting requirements, but not backup
withholding, unless the non-U.S. holder certifies under penalties of perjury that it is not a
United States person or an exemption otherwise applies. Payments of the proceeds of a sale or other
disposition of common stock or warrants to or through a U.S. office of a broker generally will be
subject to information reporting and backup withholding, unless the non-U.S. holder certifies under
penalties of perjury that it is not a United States person or otherwise establishes an exemption.
Backup withholding is not an additional tax. The amount of any backup withholding from a
payment generally will be allowed as a credit against the holders U.S. federal income tax
liability and may entitle the holder to a refund, provided that the required information is timely
furnished to the IRS.
Recently enacted legislation will require, after December 31, 2012, withholding at a rate of
30% on dividends in respect of, and gross proceeds from the sale of, our common stock or warrants
held by or through certain foreign financial institutions (including investment funds), unless such
institution enters into an agreement with the Secretary of the Treasury to report, on an annual
basis, information with respect to interests in the institution held by certain United States
persons and by certain non-U.S. entities that are wholly or partially owned by United States
persons. Accordingly, the entity through which our common stock or warrants is held will affect the
determination of whether such withholding is required. Similarly, dividends in respect of, and
gross proceeds from the sale of, our common stock or warrants held by an investor that is a
non-financial non-U.S. entity will be subject to withholding at a rate of 30%, unless such entity
either (i) certifies to us that such entity does not have any substantial United States owners or
(ii) provides certain information regarding the entitys substantial United States owners, which
we will in turn provide to the Secretary of the Treasury. Non-U.S. holders are encouraged to
consult with their tax advisors regarding the possible implications of the legislation on their
investment in our common stock or warrants.
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LEGAL MATTERS
Weil, Gotshal & Manges LLP, New York, New York, has passed upon the validity of the common
stock and warrants offered hereby on behalf of us.
EXPERTS
The consolidated and combined financial statements of HHC, and certain entities that were
transferred from GGP to HHC on November 9, 2010 (the HHC Businesses), as of December 31, 2010 and
2009, and for each of the three years in the period ended December 31, 2010, and the related
financial statement schedule incorporated by reference into in this prospectus have been audited by
Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report,
which is incorporated by reference herein (which report expresses an unqualified opinion and
includes explanatory paragraphs regarding the HHC Businesses inclusion of allocations of certain
operating expenses from GGP and emergence from bankruptcy on November 9, 2010). Such financial
statements and financial statement schedule have been so incorporated in reliance upon the report
of such firm given upon their authority as experts in accounting and auditing.
The consolidated financial statements of TWLDC Holdings, L.P., as of December 31, 2010 and
2009, and for each of the years in the three-year period ended
December 31, 2010, incorporated by reference in the registration statement to
which this prospectus is a part have been audited by BKD, LLP, an independent accounting firm, as
stated in their reports appearing herein. Such financial statements
are incorporated by reference in reliance
upon the reports of such firm given upon their authority as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We have filed a registration statement on Form S-11 with the SEC for the shares of common
stock and the warrants to acquire our common stock that we are offering in this prospectus. This
prospectus does not include all of the information contained in the registration statement. You
should refer to the registration statement and its exhibits for additional information. Whenever we
make reference in this prospectus to any of our contracts, agreements or other documents, the
references are not necessarily complete and you should refer to the exhibits attached to the
registration statement for copies of the actual contract, agreement or other document. When we
complete this offering, we will also be required to file annual, quarterly and special reports,
proxy statements and other information with the SEC.
You can read our SEC filings, including the registration statement, over the Internet at the
SECs website at http://www.sec.gov/. You may also read and copy any document we file with the SEC
at its public reference facilities at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You
may also obtain copies of the documents at prescribed rates by writing to the Public Reference
Section at the SEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information on the operation of the public reference facilities.
You may obtain a copy of any of our filings, at no cost, by writing or telephoning us at:
The Howard Hughes Corporation
13355 Noel Road, Suite 950
Dallas, TX 75240
(214) 741-7744
We also post our SEC filings to our website at http://www.howardhughes.com/. The contents of
our website are not a part of this prospectus.
25
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
We incorporate by reference in this prospectus the documents listed below, each of which
should be considered an important part of this prospectus.
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Our 2010 Annual Report on Form 10-K for the year ended December 31, 2010, which we
filed on April 8, 2011; |
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Our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, which we
filed on May 10, 2011; |
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Our 2011 Definitive Proxy Statement on Schedule l4A (only those portions incorporated
by reference into our 2010 Annual Report on Form 10-K), which we filed on May 2, 2011;
and |
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Our Current Reports on Form 8-K, which we filed on February 3, 2011, March 3, 2011
and April 11, 2011. |
Any statement incorporated by reference in this prospectus from an earlier dated document that
is inconsistent with a statement contained in this prospectus or in any other document filed after
the date of the earlier dated document, but prior to the date hereof, which also is incorporated by
reference herein, shall be deemed to be modified or superseded for purposes of this prospectus by
such statement contained in this prospectus or in any other document filed after the date of the
earlier dated document, but prior to the date hereof, which also is incorporated by reference
herein.
Any person, including any beneficial owner, to whom this prospectus is delivered may request
copies of this prospectus and any of the documents incorporated by reference in this prospectus,
without charge, by written or oral request directed to The Howards Hughes Corporation, 13355 Noel
Road, Suite 950, Dallas, Texas 75240, telephone (214) 741-7744, on the Investor Relations section
of our website at http://www.howardhughes.com/ or from the SEC through the SECs website at
www.sec.gov. Documents incorporated by reference are available without charge, excluding any
exhibits to those documents unless the exhibit is specifically incorporated by reference into those
documents.
26
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 31. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The expenses expected to be incurred by The Howard Hughes Corporation (the Registrant) in
connection with the registration and distribution of the securities being registered under this
registration statement are estimated to be as follows:
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SEC Fee |
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$ |
66,256 |
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Printing |
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400,000 |
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Legal Fees and Expenses |
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500,000 |
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Accounting Fees and Expenses |
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500,000 |
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Miscellaneous |
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34,000 |
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Total |
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$ |
1,500,256 |
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ITEM 32. SALES TO SPECIAL PARTIES
See Related Party Transactions and Certain Relationships contained in our 2011 Definitive
Proxy Statement on Schedule 14A and incorporated by reference herein.
ITEM 33. RECENT SALES OF UNREGISTERED SECURITIES
On July 1, 2010, we issued 1,000 shares to GGP Limited Partnership, our parent company at the
time. The shares were issued in a private placement exempt from registration pursuant to 4(2) of
the Securities Act.
On November 22, 2010, we entered into warrant agreements with David R. Weinreb, our Chief
Executive Officer, and Grant Herlitz, our President and from January 31, 2011 through March 28,
2011, our Interim Chief Financial Officer, in each case prior to his appointment to such position,
pursuant to which: (a) Mr. Weinreb purchased a warrant to acquire 2,367,985 shares of Company
common stock for a purchase price of $15.0 million in cash; and (b) Mr. Herlitz purchased a warrant
to acquire 315,731 shares of Company common stock for a purchase price of $2.0 million in cash,
both of which purchase prices were determined to be at the warrants then current fair value. The
warrants have an exercise price of $42.23 per share and will, excluding certain specific
circumstances, become exercisable in November 2016 and will expire in November 2017. The warrants
were issued in a transaction exempt from registration under Section 4(2) of the Securities Act.
On February 25, 2011, the Company also entered into a warrant agreement with Andrew C.
Richardson, our Chief Financial Officer effective as of March 28, 2011, prior to his appointment to
such position, pursuant to which Mr. Richardson purchased a warrant to acquire 178,971 shares of
company common stock for a purchase price of $2.0 million in cash, which purchase price was
determined to be at current fair value. The warrant has an exercise price of $54.40 per share and
will generally become exercisable in February 2017 and will expire in February 2018. The warrant
was issued in a transaction exempt from registration under Section 4(2) of the Securities Act.
ITEM 34. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The DGCL authorizes corporations to limit or eliminate the personal liability of directors to
corporations and their stockholders for monetary damages for breaches of directors fiduciary
duties as directors. Our amended and restated certificate of incorporation includes provisions
that indemnify, to the fullest extent allowable under the DGCL, the personal liability of directors
or officers for monetary damages for actions taken as our director or officer, or for serving at
our request as a director or officer or another position at another corporation or enterprise, as
the case may be. Our amended and restated certificate of incorporation also provides that we must
indemnify and advance reasonable expenses to our directors and officers, subject to our receipt of
an undertaking from the indemnified party as may be required under the DGCL. We have entered into
indemnification agreements with each of our directors and certain officers. These agreements,
among other things, require us to indemnify each director and certain officers to the fullest
extent permitted by Delaware law, including indemnification of expenses such as attorneys fees,
judgments, fines and settlement amounts reasonably incurred by the director or officer in any
action or proceeding, including any action or proceeding by or in right of us, arising out of the
persons services as a
director or executive officer. We also carry directors and officers insurance to protect
us, our directors, officers and certain employees for some liabilities. The limitation of
liability and indemnification provisions in our amended and restated certificate of incorporation
may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary
duty. These provisions may also have the effect of reducing the likelihood of derivative
litigation against directors and officers, even though such an action, if successful, might
otherwise benefit us and our stockholders. However, these provisions do not limit or eliminate our
rights, or those of any stockholder, to seek non-monetary relief such as injunction or rescission
in the event of a breach of a directors duty of care. The provisions do not alter the liability
of directors under the federal securities laws. In addition, your investment may be adversely
affected to the extent that, in a class action or direct suit, we pay the costs of settlement and
damage awards against directors and officers pursuant to these indemnification provisions. There
is currently no pending material litigation or proceeding against any of our directors, officers or
employees for which indemnification is being sought.
ITEM 35. TREATMENT OF PROCEEDS FROM STOCK BEING REGISTERED
Not applicable.
ITEM 36. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) The consolidated and combined financial statements of The Howard Hughes Corporation as of
December 31, 2010 and 2009, and for each of the three years in the period ended December 31, 2010,
and the related consolidated and combined financial statement schedule were filed as part of our
Annual Report on Form 10-K and are incorporated herein by reference.
We own a 52.5% economic interest in The Woodlands Partnerships. We have included as an
exhibit to our Annual Report on Form 10-K and incorporated herein by reference the consolidated
financial statements of TWLDC Holdings, L.P., as such partnership, either through majority
ownership or as primary beneficiary of variable interest entities, consolidates all of The
Woodlands Partnerships, and the operations of The Woodlands Partnerships are significant to our
operations for the fiscal year ending December 31, 2010. The Woodlands Partnerships include the
venture developing the master planned community known as The Woodlands (whose operations are in the
Master Planned Communities segment) and also hold the beneficial interests in other commercial real
estate within the Woodlands community, including the conference center, all located near Houston,
Texas. The remaining 47.5% economic interest in The Woodlands Partnerships is owned by Morgan
Stanley Real Estate Fund, L.P. which provides all the management services for The Woodlands
Partnerships.
(b) The exhibits listed below in the Exhibit Index are part of this registration statement
and are numbered in accordance with Item 601 of Regulation S-K.
Exhibit Index
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Exhibit No. |
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Description of Exhibit |
2.1
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Separation Agreement, dated November 9, 2010, between The
Howard Hughes Corporation and General Growth Properties, Inc.
(incorporated by reference to Exhibit 2.1 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
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3.1
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Amended and Restated Certificate of Incorporation of The Howard
Hughes Corporation (incorporated by reference to Exhibit 3.1 to
the Companys Current Report on Form 8-K, filed November 12,
2010) |
|
|
|
3.2
|
|
Amended and Restated Bylaws of The Howard Hughes Corporation
(incorporated by reference to Exhibit 3.2 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
5.1
|
|
Opinion of Weil, Gotschal & Manges LLP as to the validity of
the securities being registered (incorporated by reference to
Exhibit 5.1 to the Companys registration statement on Form
S-11/A, filed on November 12, 2010) |
|
|
|
Exhibit No. |
|
Description of Exhibit |
10.1
|
|
Transition Services Agreement, dated November 9, 2010, between
The Howard Hughes Corporation, GGP Limited Partnership and
General Growth Management, Inc. (incorporated by reference to
Exhibit 10.1 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
10.2
|
|
Reverse Transition Services Agreement, dated November 9, 2010,
between The Howard Hughes Corporation, GGP Limited Partnership
and General Growth Management, Inc. (incorporated by reference
to Exhibit 10.2 to the Companys Current Report on Form 8-K,
filed November 12, 2010) |
|
|
|
10.3
|
|
Employee Matters Agreement, dated November 9, 2010, between The
Howard Hughes Corporation, GGP Limited Partnership and General
Growth Management, Inc. (incorporated by reference to Exhibit
10.3 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
10.4
|
|
Employee Leasing Agreement, dated November 9, 2010, between The
Howard Hughes Corporation, GGP Limited Partnership and General
Growth Management, Inc. (incorporated by reference to Exhibit
10.4 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
10.5
|
|
Tax Matters Agreement, dated November 9, 2010, between The
Howard Hughes Corporation and General Growth Properties, Inc.
(incorporated by reference to Exhibit 10.5 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.6
|
|
Surety Bond Indemnity Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and General Growth
Properties, Inc. (incorporated by reference to Exhibit 10.6 to
the Companys Current Report on Form 8-K, filed November 12,
2010) |
|
|
|
10.7
|
|
Form of indemnification agreement for directors and certain
executive officers of The Howard Hughes Corporation
(incorporated by reference to Exhibit 10.7 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.8
|
|
Warrant Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and Mellon Investor Services LLC
(incorporated by reference to Exhibit 10.8 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.9
|
|
Letter Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and Brookfield Retail Holdings LLC
(incorporated by reference to Exhibit 10.9 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.10
|
|
Letter Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and The Fairholme Fund and Fairholme Focused
Income Fund (incorporated by reference to Exhibit 10.10 to the
Companys Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.11
|
|
Letter Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and Pershing Square Capital Management, L.P.
(incorporated by reference to Exhibit 10.11 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.12
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and M.B. Capital Partners, M.B.
Capital Partners III and M.B. Capital Units LLC (incorporated
by reference to Exhibit 99.1 to the Companys Current Report on
Form 8-K, filed November 12, 2010) |
|
|
|
10.13
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and Brookfield Retail Holdings
LLC, Brookfield Retail Holdings II LLC, Brookfield Retail
Holdings III LLC, Brookfield Retail Holdings IV-A LLC,
Brookfield Retail Holdings IV-D LLC, Brookfield Retail Holdings
V LP and Brookfield US Retail Holdings LLC (incorporated by
reference to Exhibit 99.2 to the Companys Current Report on
Form 8-K, filed November 12, 2010) |
|
|
|
10.14
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and The Fairholme Fund and
Fairholme Focused Income Fund (incorporated by reference to
Exhibit 99.3 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
Exhibit No. |
|
Description of Exhibit |
10.15
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and Pershing Square Capital
Management, L.P., Blackstone Real Estate Partners VI L.P.,
Blackstone Real Estate Partners (AIV) VI L.P., Blackstone Real
Estate Partners VI.F L.P., Blackstone Real Estate Partners
VI.TE.1 L.P., Blackstone Real Estate Partners VI.TE.2 L.P.,
Blackstone Real Estate Holdings VI L.P., and Blackstone GGP
Principal Transaction Partners L.P. (incorporated by reference
to Exhibit 99.4 to the Companys Current Report on Form 8-K,
filed November 12, 2010) |
|
|
|
10.16
|
|
Management Services Agreement, dated August 6, 2010, between
The Howard Hughes Corporation and Brookfield Advisors LP
(incorporated by reference to Exhibit 10.4 to the Companys
Form 10, filed October 7, 2010), which agreement is no longer
in effect, but is filed as an exhibit to this registration
statement on Form S-11/A in accordance with Item 601(b)(10) of
Regulation S-K |
|
|
|
10.17*
|
|
The Howard Hughes Corporation 2010 Equity Incentive Plan
(incorporated by reference to Exhibit 10.13 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.18*
|
|
Form of Restricted Stock Agreement for Nonemployee Directors
under The Howard Hughes Corporation 2010 Equity Incentive Plan
(incorporated by reference to the Companys Annual Report on
Form 10-K, filed on April 8, 2011) |
|
|
|
10.19*
|
|
Non-Qualified Stock Option Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and Adam S. Metz
(incorporated by reference to Exhibit 10.14 to the Companys
Current Report on Form 8-K, filed November 12, 2010), which
agreement is no longer in effect, but is filed as an exhibit to
this registration statement on Form S-11/A in accordance with
Item 601(b)(10) of Regulation S-K |
|
|
|
10.20*
|
|
Non-Qualified Stock Option Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and Thomas Nolan Jr. (in
his capacity as a director) (incorporated by reference to
Exhibit 10.15 to the Companys Current Report on Form 8-K,
filed November 12, 2010), which agreement is no longer in
effect, but is filed as an exhibit to this registration
statement on Form S-11/A in accordance with Item 601(b)(10) of
Regulation S-K |
|
|
|
10.21*
|
|
Non-Qualified Stock Option Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and Thomas Nolan Jr. (in
his capacity as an employee) (incorporated by reference to
Exhibit 10.16 to the Companys Current Report on Form 8-K,
filed November 12, 2010), which agreement is no longer in
effect, but is filed as an exhibit to this registration
statement on
Form S-11/A in accordance with Item 601(b)(10) of Regulation S-K |
|
|
|
10.22*
|
|
Employment Agreement, dated as of November 22, 2010, between
The Howard Hughes Corporation and David R. Weinreb
(incorporated by reference to Exhibit 10.3 to the Companys
Current Report on Form 8-K, filed November 29, 2010) |
|
10.23*
|
|
Warrant Purchase Agreement, dated November 22, 2010, between
The Howard Hughes Corporation and David R. Weinreb
(incorporated by reference to Exhibit 10.1 to the Companys
Current Report on Form 8-K, filed November 29, 2010) |
|
|
|
10.24*
|
|
Employment Agreement, dated as of November 22, 2010, between
The Howard Hughes Corporation and Grant Herlitz (incorporated
by reference to Exhibit 10.4 to the Companys Current Report on
Form 8-K, filed November 29, 2010) |
|
|
|
10.25*
|
|
Warrant Purchase Agreement, dated November 22, 2010, between
The Howard Hughes Corporation and Grant Herlitz (incorporated
by reference to Exhibit 10.2 to the Companys Current Report on
Form 8-K, filed November 29, 2010) |
|
|
|
10.26*
|
|
Warrant Purchase Agreement, dated February 25, 2011, between
The Howard Hughes Corporation and Andrew C. Richardson
(incorporated by reference to Exhibit 10.1 to the Companys
Current Report on Form 8-K, filed March 3, 2011) |
|
|
|
Exhibit No. |
|
Description of Exhibit |
10.27*
|
|
Employment Agreement, dated as of February 25, 2011, between
The Howard Hughes Corporation and Andrew C. Richardson
(incorporated by reference to Exhibit 10.2 to the Companys
Current Report on Form 8-K, filed March 3 2011) |
|
|
|
10.28
|
|
Standstill Agreement, dated as of November 9, 2010, between The
Howard Hughes Corporation and Pershing Square Capital
Management, L.P. (incorporated by reference to Exhibit 10.28 to the Companys
Registration Statement on Form S-11, filed on May 18, 2011) |
|
|
|
21.1
|
|
List of Subsidiaries (incorporated by reference to the
Companys Annual Report on Form 10-K, filed April 8, 2011) |
|
|
|
23.1**
|
|
Consent of Deloitte & Touche LLP |
|
|
|
23.2**
|
|
Consent of BKD, LLP |
|
|
|
24.1**
|
|
Power of Attorney |
|
|
|
99.1
|
|
TWLDC Holdings, L.P. Consolidated Financial Statements and
Independent Accountants Report (incorporated by reference to
the Companys Annual Report on Form 10-K, filed April 8, 2011) |
|
|
|
* |
|
Management contract, compensatory plan or arrangement |
|
** |
|
Filed herewith |
ITEM 37. UNDERTAKINGS
|
(a) |
|
The undersigned registrant hereby undertakes: |
|
(1) |
|
To file, during any period in which offers or sales are being made, a
post-effective amendment to the registration statement: |
|
(i) |
|
To include any prospectus required by Section 10(a)(3) of the
Securities Act; |
|
|
(ii) |
|
To reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price
represent no more than a 20 percent change in the maximum aggregate offering price
set forth in the Calculation of Registration Fee table in the effective
registration statement; and |
|
|
(iii) |
|
To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any material
change to such information in the registration statement. |
|
(2) |
|
That, for the purpose of determining any liability under the Securities Act,
each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof. |
|
|
(3) |
|
To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering. |
|
|
(4) |
|
That, for the purpose of determining liability under the Securities Act to any
purchaser: |
|
(i) |
|
If the registrant is relying on Rule 430B: |
|
(A) |
|
Each prospectus filed by the registrant pursuant to Rule
424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration
statement; and |
|
|
(B) |
|
Each prospectus required to be filed pursuant to Rule
424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on
Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or
(x) for the purpose of providing the information required by section 10(a) of
the Securities Act shall be deemed to be part of and included in the
registration statement as of the earlier of the date such form of prospectus is
first used after effectiveness or the date of the first contract of sale of
securities in the offering described in the prospectus. As provided in Rule
430B, for liability purposes of the issuer and any person that is at that date
an underwriter, such date shall be deemed to be a new effective date of the
registration statement relating to the securities in the registration statement
to which that prospectus relates, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof. Provided,
however, that no statement made in a registration statement or prospectus that
is part of the registration statement or made in a document incorporated or
deemed incorporated by reference into the registration statement or prospectus
that is part of the registration statement will, as to a purchaser with a time
of contract of sale prior to such effective date, supersede or modify any
statement that was made in the registration statement |
|
|
|
or prospectus that was part of the registration statement or made in any such
document immediately prior to such effective date; or |
|
(ii) |
|
If the registrant is subject to Rule 430C, each prospectus filed
pursuant to Rule 424(b) as part of a registration statement relating to an
offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and
included in the registration statement as of the date it is first used after
effectiveness. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a
document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a
purchaser with a time of contract of sale prior to such first use, supersede or
modify any statement that was made in the registration statement or prospectus that
was part of the registration statement or made in any such document immediately
prior to such date of first use. |
(b) Insofar as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC
such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted
by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
(c) The undersigned registrant hereby undertakes that:
|
(1) |
|
For purposes of determining any liability under the Securities Act, the
information omitted from the form of prospectus filed as part of the registration
statement in reliance upon Rule 430A and contained in the form of prospectus filed by
the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act
shall be deemed to be part of the registration statement as of the time it was declared
effective. |
|
|
(2) |
|
For the purpose of determining any liability under the Securities Act, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial bona fide offering
thereof. |
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused
this Post-Effective Amendment No. 1 to this registration statement to be signed on its behalf by
the undersigned, thereunto duly authorized, on May 18, 2011.
|
|
|
|
|
|
THE HOWARD HUGHES CORPORATION
|
|
|
By: |
/s/ David R. Weinreb
|
|
|
|
Name: |
David R. Weinreb |
|
|
|
Title: |
Chief Executive Officer |
|
|
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No.
1 to this registration statement has been signed by the following persons in the capacities as
indicated on May 18, 2011.
|
|
|
Signature |
|
Title |
|
|
|
|
|
Chairman of The Board of Directors |
William Ackman |
|
|
|
/s/ David R. Weinreb |
|
Director and Chief Executive Officer |
David R. Weinreb
|
|
(Principal Executive Officer) |
|
|
|
|
|
Chief Financial Officer |
Andrew C. Richardson
|
|
(Principal Financial and Accounting Officer) |
|
|
|
|
|
Director |
David Arthur |
|
|
|
|
|
|
|
Director |
Adam Flatto |
|
|
|
|
|
|
|
Director |
Jeffrey Furber |
|
|
|
|
|
|
|
Director |
Gary Krow |
|
|
|
|
|
|
|
Director |
Allen Model |
|
|
|
|
|
|
|
Director |
R. Scot Sellers |
|
|
|
|
|
|
|
Director |
Steven Shepsman |
|
|
David R. Weinreb, by signing his name hereto, does hereby sign and execute this
Post-Effective Amendment No. 1 to the registration statement on behalf of the
above-named directors and officers of The Howard Hughes Corporation, on this
18th day of May, 2011, pursuant to powers of attorney executed on behalf of
such director and/or officer, and contemporaneously filed with the Securities and
Exchange Commission.
|
|
|
|
|
*By
|
|
/s/ David R. Weinreb
|
|
|
|
|
David R. Weinreb |
|
|
|
|
Attorney-in-fact |
|
|
Exhibit Index
|
|
|
Exhibit No. |
|
Description of Exhibit |
2.1
|
|
Separation Agreement, dated November 9, 2010, between The
Howard Hughes Corporation and General Growth Properties, Inc.
(incorporated by reference to Exhibit 2.1 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
3.1
|
|
Amended and Restated Certificate of Incorporation of The Howard
Hughes Corporation (incorporated by reference to Exhibit 3.1 to
the Companys Current Report on Form 8-K, filed November 12,
2010) |
|
|
|
3.2
|
|
Amended and Restated Bylaws of The Howard Hughes Corporation
(incorporated by reference to Exhibit 3.2 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
5.1
|
|
Opinion of Weil, Gotschal & Manges LLP as to the validity of
the securities being registered (incorporated by reference to
Exhibit 5.1 to the Companys registration statement on Form
S-11/A, filed on November 12, 2010) |
|
|
|
10.1
|
|
Transition Services Agreement, dated November 9, 2010, between
The Howard Hughes Corporation, GGP Limited Partnership and
General Growth Management, Inc. (incorporated by reference to
Exhibit 10.1 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
10.2
|
|
Reverse Transition Services Agreement, dated November 9, 2010,
between The Howard Hughes Corporation, GGP Limited Partnership
and General Growth Management, Inc. (incorporated by reference
to Exhibit 10.2 to the Companys Current Report on Form 8-K,
filed November 12, 2010) |
|
|
|
10.3
|
|
Employee Matters Agreement, dated November 9, 2010, between The
Howard Hughes Corporation, GGP Limited Partnership and General
Growth Management, Inc. (incorporated by reference to Exhibit
10.3 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
10.4
|
|
Employee Leasing Agreement, dated November 9, 2010, between The
Howard Hughes Corporation, GGP Limited Partnership and General
Growth Management, Inc. (incorporated by reference to Exhibit
10.4 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
10.5
|
|
Tax Matters Agreement, dated November 9, 2010, between The
Howard Hughes Corporation and General Growth Properties, Inc.
(incorporated by reference to Exhibit 10.5 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.6
|
|
Surety Bond Indemnity Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and General Growth
Properties, Inc. (incorporated by reference to Exhibit 10.6 to
the Companys Current Report on Form 8-K, filed November 12,
2010) |
|
|
|
10.7
|
|
Form of indemnification agreement for directors and certain
executive officers of The Howard Hughes Corporation
(incorporated by reference to Exhibit 10.7 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.8
|
|
Warrant Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and Mellon Investor Services LLC
(incorporated by reference to Exhibit 10.8 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.9
|
|
Letter Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and Brookfield Retail Holdings LLC
(incorporated by reference to Exhibit 10.9 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.10
|
|
Letter Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and The Fairholme Fund and Fairholme Focused
Income Fund (incorporated by reference to Exhibit 10.10 to the
Companys Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.11
|
|
Letter Agreement, dated November 9, 2010, between The Howard
Hughes Corporation and Pershing Square Capital Management, L.P.
(incorporated by reference to Exhibit 10.11 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
Exhibit No. |
|
Description of Exhibit |
10.12
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and M.B. Capital Partners, M.B.
Capital Partners III and M.B. Capital Units LLC (incorporated
by reference to Exhibit 99.1 to the Companys Current Report on
Form 8-K, filed November 12, 2010) |
|
|
|
10.13
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and Brookfield Retail Holdings
LLC, Brookfield Retail Holdings II LLC, Brookfield Retail
Holdings III LLC, Brookfield Retail Holdings IV-A LLC,
Brookfield Retail Holdings IV-D LLC, Brookfield Retail Holdings
V LP and Brookfield US Retail Holdings LLC (incorporated by
reference to Exhibit 99.2 to the Companys Current Report on
Form 8-K, filed November 12, 2010) |
|
|
|
10.14
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and The Fairholme Fund and
Fairholme Focused Income Fund (incorporated by reference to
Exhibit 99.3 to the Companys Current Report on Form 8-K, filed
November 12, 2010) |
|
|
|
10.15
|
|
Registration Rights Agreement, dated November 9, 2010, between
The Howard Hughes Corporation and Pershing Square Capital
Management, L.P., Blackstone Real Estate Partners VI L.P.,
Blackstone Real Estate Partners (AIV) VI L.P., Blackstone Real
Estate Partners VI.F L.P., Blackstone Real Estate Partners
VI.TE.1 L.P., Blackstone Real Estate Partners VI.TE.2 L.P.,
Blackstone Real Estate Holdings VI L.P., and Blackstone GGP
Principal Transaction Partners L.P. (incorporated by reference
to Exhibit 99.4 to the Companys Current Report on Form 8-K,
filed November 12, 2010) |
|
|
|
10.16
|
|
Management Services Agreement, dated August 6, 2010, between
The Howard Hughes Corporation and Brookfield Advisors LP
(incorporated by reference to Exhibit 10.4 to the Companys
Form 10, filed October 7, 2010), which agreement is no longer
in effect, but is filed as an exhibit to this registration
statement on Form S-11/A in accordance with Item 601(b)(10) of
Regulation S-K |
|
|
|
10.17*
|
|
The Howard Hughes Corporation 2010 Equity Incentive Plan
(incorporated by reference to Exhibit 10.13 to the Companys
Current Report on Form 8-K, filed November 12, 2010) |
|
|
|
10.18*
|
|
Form of Restricted Stock Agreement for Nonemployee Directors
under The Howard Hughes Corporation 2010 Equity Incentive Plan
(incorporated by reference to the Companys Annual Report on
Form 10-K, filed on April 8, 2011) |
|
|
|
10.19*
|
|
Non-Qualified Stock Option Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and Adam S. Metz
(incorporated by reference to Exhibit 10.14 to the Companys
Current Report on Form 8-K, filed November 12, 2010), which
agreement is no longer in effect, but is filed as an exhibit to
this registration statement on Form S-11/A in accordance with
Item 601(b)(10) of Regulation S-K |
|
|
|
10.20*
|
|
Non-Qualified Stock Option Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and Thomas Nolan Jr. (in
his capacity as a director) (incorporated by reference to
Exhibit 10.15 to the Companys Current Report on Form 8-K,
filed November 12, 2010), which agreement is no longer in
effect, but is filed as an exhibit to this registration
statement on Form S-11/A in accordance with Item 601(b)(10) of
Regulation S-K |
|
|
|
10.21*
|
|
Non-Qualified Stock Option Agreement, dated November 9, 2010,
between The Howard Hughes Corporation and Thomas Nolan Jr. (in
his capacity as an employee) (incorporated by reference to
Exhibit 10.16 to the Companys Current Report on Form 8-K,
filed November 12, 2010), which agreement is no longer in
effect, but is filed as an exhibit to this registration
statement on
Form S-11/A in accordance with Item 601(b)(10) of Regulation S-K |
|
|
|
10.22*
|
|
Employment Agreement, dated as of November 22, 2010, between
The Howard Hughes Corporation and David R. Weinreb
(incorporated by reference to Exhibit 10.3 to the Companys
Current Report on Form 8-K, filed November 29, 2010) |
|
|
|
10.23*
|
|
Warrant Purchase Agreement, dated November 22, 2010, between
The Howard Hughes Corporation and David R. Weinreb
(incorporated by reference to Exhibit 10.1 to the Companys
Current Report on Form 8-K, filed November 29, 2010) |
|
|
|
Exhibit No. |
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Description of Exhibit |
10.24*
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Employment Agreement, dated as of November 22, 2010, between
The Howard Hughes Corporation and Grant Herlitz (incorporated
by reference to Exhibit 10.4 to the Companys Current Report on
Form 8-K, filed November 29, 2010) |
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10.25*
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Warrant Purchase Agreement, dated November 22, 2010, between
The Howard Hughes Corporation and Grant Herlitz (incorporated
by reference to Exhibit 10.2 to the Companys Current Report on
Form 8-K, filed November 29, 2010) |
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10.26*
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Warrant Purchase Agreement, dated February 25, 2011, between
The Howard Hughes Corporation and Andrew C. Richardson
(incorporated by reference to Exhibit 10.1 to the Companys
Current Report on Form 8-K, filed March 3, 2011) |
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10.27*
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Employment Agreement, dated as of February 25, 2011, between
The Howard Hughes Corporation and Andrew C. Richardson
(incorporated by reference to Exhibit 10.2 to the Companys
Current Report on Form 8-K, filed March 3 2011) |
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10.28
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Standstill Agreement, dated as of November 9, 2010, between The
Howard Hughes Corporation and Pershing Square Capital
Management, L.P. (incorporated by reference to Exhibit 10.28 to the Companys
Registration Statement on Form S-11, filed on May 18, 2011) |
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21.1
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List of Subsidiaries (incorporated by reference to the
Companys Annual Report on Form 10-K, filed April 8, 2011) |
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23.1**
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Consent of Deloitte & Touche LLP |
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23.2**
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Consent of BKD, LLP |
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24.1**
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Power of Attorney |
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99.1
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TWLDC Holdings, L.P. Consolidated Financial Statements and
Independent Accountants Report (incorporated by reference to
the Companys Annual Report on Form 10-K, filed April 8, 2011) |
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* |
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Management contract, compensatory plan or arrangement |
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** |
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Filed herewith |
exv23w1
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this post effective amendment No. 1 to
Registration Statement No. 333-170074 on Form S-11 of our report dated April 7, 2011, relating
to the consolidated and combined financial statements and related financial statement schedule of
The Howard Hughes Corporation (the Company) and certain entities that were transferred from
General Growth Properties, Inc. to the Company on November 9, 2010 (the HHC Businesses) (which
report expresses an unqualified opinion and includes explanatory paragraphs regarding the HHC
Businesses inclusion of allocations of certain operating expenses from General Growth Properties,
Inc and emergence from bankruptcy on November 9, 2010), appearing in the Annual Report on Form 10-K
of the Howard Hughes Corporation for the year ended December 31, 2010, and to the reference to us
under the heading Experts in the Prospectus, which is part of this Registration statement.
/s/ Deloitte & Touche LLP
Chicago, Illinois
May 18, 2011
exv23w2
Exhibit 23.2
CONSENT OF INDEPENDENT ACCOUNTANT
We consent to the incorporation by reference in the registration statement of The Howard
Hughes Corporation on Amendment No. 1 to Form S-11 of our report dated March 29, 2011, on our
audits of the financial statements of TWLDC Holdings, L.P. as of December 31, 2010 and 2009, and
for each of the years in the three-year period ended December 31, 2010, which reports are included
therein. We also consent to the references to our firm under the caption Experts.
/s/ BKD, LLP
Houston Texas
May 18, 2011
exv24w1
Exhibit 24.1
POWER OF ATTORNEY
Each of the undersigned hereby constitutes and appoints David R. Weinreb and Grant D. Herlitz,
and each of them, with full power to act and with full power of substitution and resubstitution,
his true and lawful attorneys-in-fact with full power to execute in his name and on his behalf in
his capacity as a director or officer or both, as the case may be, of The Howard Hughes Corporation
(the Company) any and all amendments to the Companys registration statement on Form S-11 for the
purpose of registering under the Securities Act of 1933, as amended (the Securities Act) shares
of the Companys common stock, par value $0.01 per share, and warrants for sale by certain
stockholders of the Company, including post-effective amendments to such registration statement on
Form S-11, and to sign any and all additional registration statements relating to the same offering
of securities as the Companys registration statement on Form S-11, and to sign any and all
additional registration statements relating to the same offering of securities as the Companys
registration statement on Form S-11 that are filed pursuant to the requirements of the Securities
Act, and to file the same, with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, and hereby ratifies and confirms that such
attorneys-in-fact, or their or his substitute or substitutes, may lawfully do or cause to be done
by virtue thereof.
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/s/ William Ackman
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/s/ Allen Model |
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William Ackman
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Allen Model |
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/s/ David Arthur
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/s/ R. Scot Sellers |
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David Arthur
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R. Scot Sellers |
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/s/ Adam Flatto
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/s/ Steven Shepsman |
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Adam Flatto
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Steven Shepsman |
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/s/ Jeffrey Furber
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/s/ Andrew C. Richardson |
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Jeffrey Furber
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Andrew C. Richardson |
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Dated: May 18, 2011 |
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