UNDERWRITING AGREEMENT THE DOW CHEMICAL COMPANY $1,750,000,000 7.60% Notes due 2014 $3,250,000,000 8.55% Notes due 2019 $1,000,000,000 9.40% Notes due 2039 Underwriting Agreement
Exhibit
1.2
$6,000,000,000
THE DOW
CHEMICAL COMPANY
$1,750,000,000
7.60% Notes due 2014
$3,250,000,000
8.55% Notes due 2019
$1,000,000,000
9.40% Notes due 0000
Xxxxxxxxxxxx
Xxxxxxxxx
Xxx Xxxx,
Xxx Xxxx
May 7 ,
0000
Xxxx xx
Xxxxxxx Securities LLC
Citigroup
Global Markets Inc.
HSBC
Securities (USA) Inc.
Xxxxxx
Xxxxxxx & Co. Incorporated
As
representatives of the several underwriters
named in Schedule I hereto
c/o Citigroup
Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx,
00000
Ladies
and Gentlemen:
The Dow Chemical Company, a corporation
organized under the laws of the State of Delaware (the “Company”), proposes to
sell to the several underwriters named in Schedule I hereto (the
“Underwriters”), for whom you (the “Representatives”) are acting as
representatives, $1,750,000,000 aggregate principal amount of the Company’s
7.60% Notes due 2014 (the “Notes due 2014”), $3,250,000,000 aggregate principal
amount of the Company’s 8.55% Notes due 2019 (the “Notes due
2019”) and $1,000,000,000 aggregate principal amount of the Company’s
9.40% Notes due 2039 (the “Notes due 2039” and, together with the Notes due 2014
and the Notes due 2019 to be sold by the Company hereunder, the “Company
Securities”), to be issued under an indenture (the “Indenture”) dated as of May
1, 2008, between the Company and The Bank of New York Mellon Trust Company,
N.A., as trustee (the “Trustee”), and the persons named in Schedule II hereto
(the “Selling Noteholders”) propose, severally and not jointly, to sell to the
several Underwriters $1,346,968,000 aggregate principal amount of the Notes due
2019 as more specifically set forth in Schedule II hereto (collectively, the
“Selling Noteholder Securities” and, together with the Company Securities, the
“Securities”). Any reference herein to the Registration Statement,
the Base Prospectus, any Preliminary Prospectus or the Final Prospectus shall be
deemed to refer to and include the documents incorporated by reference therein
pursuant to Item 12 of Form S-3, which were filed under the Exchange Act on or
before the Effective Date of the Registration Statement or the issue date of the
Base Prospectus, any Preliminary Prospectus or the Final Prospectus, as the case
may be; and any reference herein to the terms “amend,” “amendment” or
“supplement” with respect to the Registration Statement,
the Base
Prospectus, any Preliminary Prospectus or the Final Prospectus shall be deemed
to refer to and include the filing of any document under the Exchange Act after
the Effective Date of the Registration Statement or the issue date of the Base
Prospectus, any Preliminary Prospectus or the Final Prospectus, as the case may
be, deemed to be incorporated therein by reference. Certain terms
used herein are defined in Section 20 hereof.
On April 1, 2009, pursuant to an
Agreement and Plan of Merger dated July 10, 2008, among the Company, Rohm and
Xxxx Company, a Delaware corporation (“Rohm and Xxxx”) and Ramses Acquisition
Corp. (“Merger Sub”), a direct, wholly owned subsidiary of the Company, the
Company completed the acquisition of Rohm and Xxxx through the merger of Merger
Sub with and into Rohm and Xxxx, with Xxxx and Xxxx as the surviving corporation
and becoming a wholly owned subsidiary of the Company (such transaction, the
“Acquisition”).
The Selling Noteholders are the owners
of Cumulative Perpetual Preferred Stock, Series B (the “Preferred Securities”),
of the Company and have entered into an agreement, dated May 5, 2009 (the
“Purchase Agreement”), with the Company pursuant to which the Selling
Noteholders have agreed, among other things, to sell (the “Preferred Securities
Sale”) a portion of the Preferred Securities in consideration for the Selling
Noteholder Securities. The aggregate principal amount of Selling
Noteholder Securities to be issued for each Preferred Security shall be
determined by dividing (x) the Original Purchase Price (as such term is defined
in the Certificate of Designations governing such Preferred Securities) of such
Preferred Security, plus accrued and unpaid dividends and any dividends added to
the Liquidation Preference (as such term is defined in the Certificate of
Designations governing such Preferred Securities) to the Closing Date (as
defined below), by (y) the public offering price less the underwriting discount
for the Selling Noteholder Securities as set forth on the cover page of the
Final Prospectus (in each case expressed as a percentage per Note due
2019).
1. Representations and
Warranties.
(a) The
Company represents and warrants to, and agrees with, each Underwriter and each
Selling Noteholder as of the Execution Time and as of the Closing Date (as
defined in Section 3) as set forth below in this Section 1.
(i)
The Company meets the requirements for use of Form S-3 under the Act and has
prepared and filed with the Commission an automatic shelf registration
statement, as defined in Rule 405 on Form S-3 (File No. 333-140859), including a
related Base Prospectus, for registration under the Act of the offering and sale
of the Securities. Such Registration Statement, including any
amendments thereto filed prior to the Execution Time, became effective upon
filing and no notice of objection of the Commission to the use of such
Registration Statement or any post-effective amendment thereto pursuant to Rule
40l (g)(2) under the Act has been received by the Company. No order
suspending the effectiveness of the Registration Statement has been issued by
the Commission and no proceeding for that purpose or pursuant to Section 8A of
the Act against the Company or related to the offering has been initiated or, to
the Company’s knowledge, threatened by the Commission. The Company
may have filed with the Commission, as part of an amendment to the Registration
Statement or pursuant to Rule 424(b), one or more preliminary prospectus
supplements relating to the Securities, each
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of which
has previously been furnished to you. The Company will file with the
Commission a final prospectus supplement relating to the Securities in
accordance with Rule 424(b). As filed, such final prospectus
supplement shall contain all information required by the Act and the rules
thereunder, and, except to the extent the Representatives shall agree in writing
to a modification, shall be in all substantive respects in the form furnished to
you prior to the Execution Time or, to the extent not completed at the Execution
Time, shall contain only such specific additional information and other changes
(beyond that contained in the Base Prospectus and any Preliminary Prospectus) as
the Company has advised you, prior to the Execution Time, will be included or
made therein. The Registration Statement, at the Execution Time,
meets the requirements set forth in Rule 415(a)(1)(x).
(ii)
On each Effective Date, the Registration Statement did, and when the Final
Prospectus is first filed in accordance with Rule 424(b) and on the Closing
Date, the Final Prospectus (and any supplement thereto) will, comply in all
material respects with the applicable requirements of the Act, the Exchange Act
and the Trust Indenture Act and the respective rules thereunder; on each
Effective Date and at the Execution Time, the Registration Statement did not and
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements therein not misleading; on the Effective Date and on the Closing Date
the Indenture did or will comply in all material respects with the applicable
requirements of the Trust Indenture Act and the rules thereunder; and on the
date of any filing pursuant to Rule 424(b) and on the Closing Date, the Final
Prospectus (together with any supplement thereto) will not include any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided, however, that the
Company makes no representations or warranties as to (i) that part of the
Registration Statement which shall constitute the Statement of Eligibility (Form
T-1) under the Trust Indenture Act of the Trustee or (ii) the information
contained in or omitted from the Registration Statement or the Final Prospectus
(or any supplement thereto) in reliance upon and in conformity with information
furnished in writing to the Company by or on behalf of any Underwriter through
the Representatives specifically for inclusion in the Registration Statement or
the Final Prospectus (or any supplement thereto), it being understood and agreed
that the only such information furnished by or on behalf of any Underwriter
consists of the information described as such in Section 8 hereof.
(iii) At
the Execution Time, (i) the Disclosure Package and (ii) each electronic road
show, when taken together as a whole with the Disclosure Package, did not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The
preceding sentence does not apply to statements in or omissions from the
Disclosure Package based upon and in conformity with written information
furnished to the Company by any Underwriter through the Representatives
specifically for use therein, it being understood and agreed that the only such
information furnished by or on behalf of any Underwriter consists of the
information described as such in Section 8 hereof.
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(iv) (i)
At the time of filing the Registration Statement, (ii) at the time of the most
recent amendment thereto for the purposes of complying with Section 10(a)(3) of
the Act (whether such amendment was by post-effective amendment, incorporated
report filed pursuant to Sections 13 or 15(d) of the Exchange Act or form of
prospectus), (iii) at the time the Company or any person acting on its behalf
(within the meaning, for this clause only, of Rule 163(c)) made any offer
relating to the Securities in reliance on the exemption in Rule 163, and (iv) at
the Execution Time (with such date being used as the determination date for
purposes of this clause (iv)), the Company was or is (as the case may be) a
“well-known seasoned issuer” as defined in Rule 405. The Company
agrees to pay the fees required by the Commission relating to the Securities
within the time required by Rule 456(b)(1) without regard to the proviso therein
and otherwise in accordance with Rules 456(b) and 457(r).
(v) (i)
At the earliest time after the filing of the Registration Statement that the
Company or another offering participant made a bona fide offer (within the
meaning of Rule 164(h)(2)) of the Securities and (ii) as of the Execution Time
(with such date being used as the determination date for purposes of this clause
(ii)), the Company was not and is not an Ineligible Issuer (as defined in Rule
405), without taking account of any determination by the Commission pursuant to
Rule 405 that it is not necessary that the Company be considered an Ineligible
Issuer.
(vi) Each
Issuer Free Writing Prospectus and the final term sheet prepared and filed
pursuant to Section 5(a)(ii) hereof does not include any information that
conflicts with the information contained in the Registration Statement,
including any document incorporated therein by reference and any prospectus
supplement deemed to be a part thereof that has not been superseded or
modified. If at any time following issuance of an Issuer Free Writing
Prospectus there occurred or occurs an event or development as a result of which
such Issuer Free Writing Prospectus conflicted or would conflict with the
information contained in the Registration Statement, the Preliminary Prospectus
or the Final Prospectus, the Company has promptly notified or will promptly
notify the Representatives and has promptly amended or supplemented or will
promptly amend or supplement, at its own expense, such Issuer Free Writing
Prospectus to eliminate or correct such conflict. The foregoing
sentence does not apply to statements in or omissions from any Issuer Free
Writing Prospectus based upon and in conformity with written information
furnished to the Company by any Underwriter through the Representatives
specifically for use therein, it being understood and agreed that the only such
information furnished by or on behalf of any Underwriter consists of the
information described as such in Section 8 hereof.
(vii) The
documents incorporated by reference in the Disclosure Package and the Final
Prospectus, when they became effective or were filed with the Commission, as the
case may be, conformed in all material respects to the requirements of the Act
or the Exchange Act and the rules and regulations of the Commission thereunder,
and none of such documents contained an untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; and any further documents so filed and incorporated
by reference in the Registration Statement
4
and the
Final Prospectus, when such documents become effective or are filed with the
Commission, as the case may be, will conform in all material respects to the
requirements of the Act or the Exchange Act, as applicable, and the rules and
regulations of the Commission thereunder then in effect and will not contain any
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
(viii) The Company has been duly
organized and is validly existing as a corporation in good standing under the
laws of the State of Delaware, with power and authority to own or lease, as the
case may be, and to operate its properties and conduct its business as described
in the Disclosure Package and the Final Prospectus; the Company is duly
qualified as a foreign corporation to transact business and is in good standing
in each other jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business,
except where the failure so to qualify or to be in good standing would not have
a material adverse effect on the business, financial condition or results of
operations of the Company and its subsidiaries considered as a whole (a
“Material Adverse Effect”).
(ix) Union
Carbide Corporation (“UCC”) and Rohm and Xxxx are the only subsidiaries of the
Company that qualify as a “significant subsidiary” under Section 1-02(w) of
Regulation S-X. Each of UCC and Rohm and Xxxx has been duly organized and is
validly existing as a corporation in good standing under the laws of the
jurisdiction of its incorporation, with power and authority to own or lease, as
the case may be, and to operate its properties and conduct its business as
described in the Disclosure Package and the Final Prospectus; each of UCC and
Rohm and Xxxx is duly qualified as a foreign corporation to transact business
and is in good standing in each jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure so to qualify or to be in good
standing would not have a Material Adverse Effect; except as otherwise disclosed
in the Disclosure Package and the Final Prospectus, all of the issued and
outstanding capital stock of each of UCC and Rohm and Xxxx has been duly
authorized and validly issued, is fully paid and non-assessable and (except for
shares necessary to qualify directors or to maintain any minimum number of
shareholders required by law) is owned by the Company, directly or through
subsidiaries, free and clear of any security interest, mortgage, pledge, lien,
encumbrance, or claim.
(x) The
Company has outstanding capital stock as set forth in the Disclosure Package and
the Final Prospectus (except for subsequent issuances as described in the
Disclosure Package and the Final Prospectus pursuant to employee benefit plans
or pursuant to the exercise of convertible securities or options and except for
repurchases in connection with open market or repurchase plans or redemptions of
shares of preferred stock). All of the outstanding shares of capital
stock of the Company have been duly authorized and validly issued and are fully
paid and non-assessable.
(xi) This
Agreement has been duly authorized, executed and delivered by the
Company.
5
(xii) The
Purchase Agreement has been duly authorized, executed and delivered by the
Company and (assuming the due authorization, execution and delivery by each of
the other parties thereto) constitutes the valid and legally binding obligation
of the Company enforceable in accordance with its terms except as the same may
be limited by bankruptcy, insolvency, reorganization or other laws of general
applicability relating to or affecting the enforcement of creditors’ rights and
to general equity principles. The Selling Noteholder Securities have
been duly authorized for issuance pursuant to the Purchase Agreement, when
issued and delivered by the Company to the Selling Noteholders in consideration
for the sale of the Preferred Securities as contemplated by the Purchase
Agreement and authenticated by the Trustee, will constitute valid and legally
binding obligations of the Company, will be entitled to the benefits provided by
the Indenture and will be enforceable in accordance with their terms except as
the same may be limited by bankruptcy, insolvency, reorganization or other laws
of general applicability relating to or affecting the enforcement of creditors’
rights and to general equity principles.
(xiii) The
Securities have been duly authorized, and, when issued and delivered pursuant to
this Agreement, the Securities will have been duly executed, issued and
delivered and (assuming the due authentication thereof by the Trustee) will
constitute valid and legally binding obligations of the Company, will be
entitled to the benefits provided by the Indenture and will be enforceable in
accordance with their terms except as the same may be limited by bankruptcy,
insolvency, reorganization or other laws of general applicability relating to or
affecting the enforcement of creditors’ rights and to general equity
principles.
(xiv) The
Indenture has been duly authorized, executed and delivered by the Company and
(assuming due authorization, execution and delivery by the Trustee) constitutes
a valid and legally binding agreement of the Company, enforceable in accordance
with its terms except as the same may be limited by bankruptcy, insolvency,
reorganization or other laws of general applicability relating to or affecting
the enforcement of creditors’ rights and to general equity principles; the
Indenture has been duly qualified under the Trust Indenture Act.
(xv) The
Indenture conforms, and the Securities will conform, in all material respects,
to the descriptions thereof contained in the Disclosure Package and the Final
Prospectus.
(xvi) The
statements in each of the Disclosure Package and the Final Prospectus under the
captions “Description of the Notes,” “Description of Debt Securities” and
“United States Federal Tax Considerations” in each case insofar as such
statements constitute a summary of the legal matters, documents or proceedings
referred to therein, fairly present and summarize, in all material respects, the
matters referred to therein.
(xvii) The
issuance and sale of the Securities and the compliance by the Company with all
of the provisions of the Securities, the Indenture and this Agreement and the
consummation of the transactions therein and herein contemplated, will not
result in a breach or violation of any of the terms or provisions of, or
constitute a default under,
6
or result
in the creation or imposition of any lien, charge or encumbrance upon any of the
property or assets of the Company, UCC or Rohm and Xxxx pursuant to the terms of
any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Company, UCC or Rohm and Xxxx is a party or by which the
Company, UCC or Rohm and Xxxx is bound or to which any property or assets of the
Company, UCC or Rohm and Xxxx is subject, which would reasonably be expected to
have a Material Adverse Effect or affect the validity of the Securities or the
legal authority of the Company to comply with the Securities, the Indenture, or
this Agreement; nor will such action result in any violation of the provisions
of the Restated Articles of Incorporation, as amended, or the Bylaws of the
Company; nor will such action result in a violation of any statute or any order,
rule or regulation of any court or governmental agency or body in the United
States having jurisdiction over the Company, UCC or Rohm and Xxxx or any of
their properties, which would reasonably be expected to have a Material Adverse
Effect or affect the validity of the Securities or the legal authority of the
Company to comply with the Securities, the Indenture, or this
Agreement.
(xviii) No
consent, approval, authorization, order, registration or qualification of or
with any court or any such regulatory authority or other governmental body in
the United States having jurisdiction over the Company is required for the
issuance and sale of the Securities or the consummation by the Company of the
other transactions contemplated by this Agreement or the Indenture, except such
consents, approvals, authorizations, orders, registrations or qualifications as
have been obtained under the Act and the Trust Indenture Act and such as may be
required by the securities or Blue Sky laws of the various states and the
securities laws of any jurisdiction outside the United States in which the
Securities are offered.
(xix) Except
as set forth in or contemplated in the Disclosure Package and the Final
Prospectus (exclusive of any amendment or supplement thereto), no action, suit
or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any of its subsidiaries is pending
or, to the Company’s knowledge, threatened that (i) would reasonably be expected
to have a material adverse effect on the performance of this Agreement or the
consummation of any of the transactions contemplated hereby or (ii) would
reasonably be expected to have a Material Adverse Effect.
(xx) Since
the dates as of which information is given in the Disclosure Package and the
Final Prospectus (exclusive of any amendments or supplements thereto after the
date hereof), there has not been (i) any material change in the capital stock
(other than changes pursuant to open market or repurchase plans or employee
benefit plans or changes resulting from the conversion or redemption of
outstanding shares of preferred stock or convertible debt) or long-term debt of
the Company and its consolidated subsidiaries considered as a whole, or (ii) any
material adverse change, in or affecting the business, financial condition or
results of operations of the Company and its consolidated subsidiaries
considered as a whole, otherwise than, in the case of (i) or (ii) above, as set
forth or contemplated in the Disclosure Package and the Final Prospectus
(exclusive of any amendments or supplements thereto after the date
hereof).
7
(xxi) Deloitte
& Touche LLP, who has audited certain financial statements of the Company
and its consolidated subsidiaries (which do not include Rohm and Xxxx and its
subsidiaries) and delivered their report with respect to the audited
consolidated financial statements and schedules of the Company and its
consolidated subsidiaries (which do not include Rohm and Xxxx and its
subsidiaries) included or incorporated by reference in the Disclosure Package
and the Final Prospectus, are independent registered public accountants with
respect to the Company within the meaning of the Act and the applicable
published rules and regulations thereunder.
(xxii) PricewaterhouseCoopers
LLP, who has audited certain financial statements of Rohm and Xxxx and its
consolidated subsidiaries and delivered their report with respect to the audited
consolidated financial statements of Rohm and Xxxx included or incorporated by
reference in the Disclosure Package and the Final Prospectus, are independent
certified public accountants with respect to Rohm and Xxxx under Rule 101 of the
Code of Professional Conduct of the American Institute of Certified Public
Accountants, and its rulings and interpretations.
(xxiii) The
Company’s consolidated historical financial statements and schedules (which do
not include Rohm and Xxxx and its subsidiaries) incorporated by reference in the
Preliminary Prospectus, the Final Prospectus and the Registration Statement
present fairly in all material respects the financial condition, results of
operations and cash flows of the Company as of the dates and for the periods
indicated, comply as to form in all material respects with the applicable
accounting requirements of the Act and have been prepared in conformity with
generally accepted accounting principles in the United States applied on a
consistent basis throughout the periods involved (except as otherwise noted
therein). The selected financial data set forth under the caption
“Prospectus Supplement Summary — Summary Historical Financial and Other Data of
Dow” and “Selected Historical Financial and Other Data of Dow” in the Disclosure
Package and the Final Prospectus fairly present, in all material respects, the
information set forth therein on a basis consistent with that of the Company’s
audited financial statements incorporated by reference in the Disclosure Package
and the Final Prospectus.
(xxiv) The
consolidated historical financial statements of Rohm and Xxxx and its
consolidated subsidiaries incorporated by reference in the Preliminary
Prospectus, the Final Prospectus and the Registration Statement present fairly
in all material respects the financial condition, results of operations and cash
flows of Rohm and Xxxx as of the dates and for the periods indicated, comply as
to form in all material respects with the applicable accounting requirements of
the Act and have been prepared in conformity with generally accepted accounting
principles in the United States applied on a consistent basis throughout the
periods involved (except as otherwise noted therein). The selected
financial data set forth under the caption “Prospectus Supplement Summary —
Summary Historical Financial and Other Data of Rohm and Xxxx” and “Selected
Historical Financial and Other Data of Rohm and Xxxx Company” in the Disclosure
Package and the Final Prospectus fairly present, in all material respects, the
information set forth therein on a basis consistent with that of the audited
financial statements of Rohm and Xxxx and its consolidated subsidiaries
incorporated by reference in the Disclosure Package and the Final
Prospectus.
8
(xxv) The
pro forma combined condensed financial information of the Company and its
consolidated subsidiaries and the related notes thereto included in the
Disclosure Package and the Final Prospectus have been prepared in accordance
with the Commission’s rules with respect to pro forma financial information, and
the adjustments used therein are appropriate to give effect to the transactions
and circumstances described therein. The pro forma combined condensed
financial information included in the Disclosure Package and the Final
Prospectus include assumptions that provide a reasonable basis for presenting
the significant effects directly attributable to the transactions and events
described therein, the related pro forma adjustments give appropriate effect to
those assumptions, and the pro forma adjustments reflect the proper application
of those adjustments to the historical financial statement amounts in the pro
forma combined condensed financial information included in the Disclosure
Package and the Final Prospectus. The pro forma combined condensed
financial information included in the Disclosure Package and the Final
Prospectus complies as to form in all material respects with the applicable
requirements of Article 11 of Regulation S-X under the Act and the pro forma
adjustments have been properly applied to the historical amounts in the
compilation of that information.
(xxvi) The
Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the
Disclosure Package and the Final Prospectus, will not be an “investment company”
as defined in the Investment Company Act of 1940, as amended.
(xxvii) No
material, collective labor dispute with the employees of the Company or any of
its subsidiaries exists or, to the Company’s knowledge, is threatened that would
reasonably be expected to have a Material Adverse Effect.
(xxviii)
Except as set forth in or contemplated in the Disclosure Package and the Final
Prospectus (exclusive of any amendment or supplement thereto), the Company and
its subsidiaries are in compliance in all material respects with all applicable
laws (including all applicable laws and regulations relating to the protection
of human health and safety, the environment, or hazardous or toxic substances or
wastes, pollutants or contaminants (collectively “Environmental
Laws”)), ordinances, rules, regulations, and requirements of governmental
authorities, except where (i) the necessity of compliance therewith is contested
in good faith by appropriate proceedings or (ii) noncompliance therewith would
not have a Material Adverse Effect.
(xxix) In
the ordinary course of its business, the Company periodically reviews the effect
of Environmental Laws on the business, operations and properties of the Company
and its subsidiaries, in the course of which it identifies and evaluates
associated costs and liabilities (including, without limitation, any capital or
operating expenditures required for clean-up, closure of properties or
compliance with Environmental Laws, or any permit, license or approval, any
related constraints on operating activities and any potential liabilities to
third parties). To the Company’s knowledge, no such associated costs
and liabilities would, singly or in the aggregate, have a Material Adverse
Effect, except as set forth in or contemplated in the Disclosure Package and the
Final Prospectus (exclusive of any amendment or supplement
thereto).
9
(xxx) Except
as would not reasonably be expected to have a Material Adverse Effect and except
as set forth in or contemplated in the Disclosure Package and the Final
Prospectus (exclusive of any amendment or supplement thereto), to the Company’s
knowledge, the Company or its subsidiaries own or possess the right to use all
patents, trademarks, service marks, trade names, copyrights, patentable
inventions, trade secrets and know-how used by the Company or its subsidiaries
in, and material to, the conduct of the Company’s and its subsidiaries’ business
taken as a whole as now conducted or as proposed in the Disclosure Package and
the Final Prospectus to be conducted (collectively, the “Intellectual
Property”). Except as would not otherwise reasonably be
expected to have a Material Adverse Effect and except as set forth in or
contemplated in the Disclosure Package and the Final Prospectus (exclusive of
any amendment or supplement thereto), there are no legal or governmental
actions, suits, proceedings or claims pending or, to the Company’s knowledge,
threatened, against the Company (i) challenging the Company’s rights in or to
any Intellectual Property, (ii) challenging the validity or scope of any
Intellectual Property owned by the Company, or (iii) alleging that the operation
of the Company’s business as now conducted infringes or otherwise violates any
patent, trademark, copyright, trade secret or other proprietary rights of a
third party.
(xxxi) There
is and has been no failure in any material respects on the part of the Company
and any of the Company’s directors or officers, in their capacities as such, to
comply with any provision of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and
regulations promulgated in connection therewith (the “Xxxxxxxx-Xxxxx Act”),
including Section 402 relating to loans and Sections 302 and 906 relating to
certifications.
(xxxii) The
Company maintains a system of internal control over financial reporting with
respect to itself and its consolidated subsidiaries sufficient to provide
reasonable assurance that (i) receipts and expenditures of the Company are made
only in accordance with the general or specific authorizations of the management
or directors of the Company; (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with generally accepted
accounting principles in the United States and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any material differences. The management of
the Company concluded that such internal control over financial reporting was
effective as of December 31, 2008 and, other than as may result from the
Acquisition, there have been no changes in the Company’s internal control over
financial reporting since such date that have materially affected, or are
reasonably likely to materially affect, the Company’s internal control over
financial reporting.
(xxxiii) The
Company maintains “disclosure controls and procedures” (as such term is defined
in Rule 13a-15(e) under the Exchange Act); based on the evaluation of these
disclosure controls and procedures, the Company’s Chief Executive Officer and
Chief Financial Officer concluded that the Company’s disclosure controls and
procedures were effective as of March 31, 2009.
10
(xxxiv) The
Company has not taken, directly or indirectly, any action designed to or that
would constitute or that might reasonably be expected to cause or result in,
under the Exchange Act or otherwise, stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the
Securities; provided, however, that no such representation is made with respect
to any action undertaken by the Underwriters or the Selling
Noteholders.
Any certificate signed by any officer
of the Company and delivered to the Representatives or counsel for the
Underwriters in connection with the offering of the Securities shall be deemed a
representation and warranty by the Company, as to matters covered thereby, to
each Underwriter.
(b) Each
Selling Noteholder, severally and not jointly, represents and warrants to, and
agrees with, the Company and each Underwriter that:
(i)
Such Selling Noteholder is the record and beneficial owner of the number of
Preferred Securities set forth opposite such Selling Noteholder’s name on
Schedule II and on the Closing Date will be the record and beneficial owner of
the aggregate principal amounts of the Notes due 2019 set forth opposite such
Selling Noteholder’s name in Column B on Schedule II hereto (assuming the
Company delivers the Securities to the Selling Noteholders in compliance with
the Purchase Agreement), in each case free and clear of all liens, encumbrances,
equities and claims, has validly entered into the Purchase Agreement and has
full power and authority to sell its interest in the Selling
Noteholder Securities to be received in consideration for the sale of
its Preferred Securities pursuant to the Purchase Agreement, and, assuming that
each Underwriter acquires its interest in the Securities it has purchased from
such Selling Noteholder without notice of any adverse claim (within the meaning
of Section 8-105 of the New York Uniform Commercial Code (“NYUCC”)), each
Underwriter that has purchased such Securities delivered on the Closing Date to
The Depository Trust Company or other securities intermediary by making payment
therefor as provided herein, and that has had such Securities credited to the
securities account or accounts of such Underwriters maintained with The
Depository Trust Company or such other securities intermediary will have
acquired a security entitlement (within the meaning of Section 8-102(a)(17) of
the NYUCC) to such Securities purchased by such Underwriter, and no action based
on an adverse claim (within the meaning of Section 8-105 of the NYUCC) may be
asserted against such Underwriter with respect to such Securities.
(ii) This
Agreement has been duly authorized, executed and delivered by such Selling
Noteholder. The Purchase Agreement has been duly authorized, executed
and delivered by such Selling Noteholder and (assuming the due authorization,
execution and delivery by the Company) constitutes the valid and legally binding
obligation of such Selling Noteholder enforceable against such Selling
Noteholder in accordance with its terms except as the same may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other laws of general applicability relating to or affecting the enforcement of
creditors’ rights and to general equity principles.
11
(iii) Such
Selling Noteholder has not taken, directly or indirectly, any action designed to
or that would constitute or that might reasonably be expected to cause or result
in, under the Exchange Act or otherwise, stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the
Securities until such Selling Noteholder shall be deemed to have completed its
participation in the distribution of the Securities as computed in Rule 100 of
Regulation M under the Exchange Act; provided, however, that no such
representation is made with respect to any action undertaken by the
Underwriters. It is agreed that both orders and purchases by the
Selling Noteholders in connection with the offering shall not violate this
clause (iii).
(iv) No
consent, approval, authorization or order of any court or governmental agency or
body is required for the consummation by such Selling Noteholder of the
transactions contemplated herein (including the Preferred Securities Sale),
except such as may have been obtained under the Act and the Trust Indenture Act,
as may be required by the rules of the New York Stock Exchange and the Financial
Industry Regulatory Authority, Inc. (“FINRA”) and such as may be required under
the blue sky laws of any jurisdiction in connection with the purchase and
distribution of the Securities by the Underwriters and such other approvals as
have been obtained.
(v) Neither
the sale of the Securities being sold by such Selling Noteholder nor the
consummation of any other of the transactions herein contemplated (including the
Preferred Securities Sale) by such Selling Noteholder or the fulfillment of the
terms hereof by such Selling Noteholder will conflict with, result in a breach
or violation of, or constitute a default under any law or the charter or by-laws
(or comparable governing documents) of such Selling Noteholder or the terms of
any indenture or other agreement or instrument to which such Selling Noteholder
or any of its subsidiaries (if applicable) is a party or bound, or any judgment,
order or decree applicable to such Selling Noteholder or any of its subsidiaries
(if applicable) of any court, regulatory body, administrative agency,
governmental body or arbitrator having jurisdiction over such Selling Noteholder
or any of its subsidiaries (if applicable), other than in each case any
conflict, breach, violation or default which would not reasonably be expected to
have a material adverse effect on the ability of such Selling Noteholder to
consummate the transactions herein contemplated.
(vi) On
each Effective Date and at the Execution Time, the Registration Statement did
not and will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in order to
make the statements therein not misleading; at the Execution Time, the
Disclosure Package did not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; and on the date of any filing pursuant to Rule 424(b) and on the
Closing Date, the Final Prospectus (together with any supplement thereto) will
not include any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however,
that the representations and warranties contained in this clause (vi) shall
apply only to written information furnished in writing to the Company or to the
Underwriters by or on behalf of such Selling
12
Noteholder
specifically for inclusion in the Registration Statement or the Final Prospectus
(or any supplement thereto), it being understood and agreed that the only such
information furnished by or on behalf of such Selling Noteholder consists of the
information described as such in Section 8(b) hereof.
Any certificate signed by any Selling
Noteholder (or any officer thereof, if applicable) and delivered to the
Representatives or counsel for the Underwriters in connection with the offering
of the Securities shall be deemed a representation and warranty by such Selling
Noteholder, as to matters covered thereby, to each Underwriter.
2. Purchase and
Sale. Subject to the terms and conditions and in reliance upon
the representations and warranties herein set forth, the Company and the Selling
Noteholders agree, severally and not jointly, to sell to each Underwriter, and
each Underwriter agrees, severally and not jointly, to purchase from the Company
and (in the case of the Notes due 2019 only) the Selling Noteholders, at 99.088%
of the principal amount thereof plus accrued interest from May 13, 2009, with
respect to the Notes due 2014, at 99.144% of the principal amount thereof plus
accrued interest from May 13, 2009, with respect to the Notes due 2019 and at
98.687% of the principal amount thereof plus accrued interest from May 13, 2009,
with respect to the Notes due 2039, in each case the principal amount of the
Securities set forth opposite such Underwriter’s name in Columns B, C and D,
respectively, of Schedule I hereto, plus any additional principal amount of
Securities which such Underwriter may become obligated to purchase pursuant to
the provisions of Section 9 hereof. The Company and the Underwriters
agree that in the event the offering of common stock (the "Equity Offering") by
the Company pursuant to the underwriting agreement, dated May 6, 2009, among the
Company, the Selling Noteholders and the several underwriters named in Schedule
III thereto (the "Equity Offering Agreement") is not consummated, the Company
agrees to sell to each Underwriter, and each Underwriters agrees, severally and
not jointly, to purchase from the Company, on the same terms as set forth in the
immediately preceding sentence, the Securities which would have otherwise been
sold by the Selling Noteholders.
3. Delivery and
Payment. Delivery of and payment for the Securities shall be
made at 9:00 a.m., New York City time, on May 13, 2009 or at such time on such
later date not more than three Business Days after the foregoing date as the
Representatives, the Company and the Selling Noteholders shall mutually agree
upon, which date and time may be postponed by agreement among the
Representatives, the Company and the Selling Noteholders or as provided in
Section 9 hereof (such date and time of delivery and payment for the Securities
being herein called the “Closing Date”). Delivery of the Securities
shall be made to the Representatives for the respective accounts of the several
Underwriters against payment by the several Underwriters through the
Representatives of the respective aggregate purchase prices of the Securities
being sold by the Company and each of the Selling Noteholders thereof to or upon
the order of the Company and the Selling Noteholders by wire transfer payable in
same-day funds to their respective accounts specified by each of the Company and
the Selling Noteholders. Delivery of the Securities shall be made
through the facilities of The Depository Trust Company unless the
Representatives shall otherwise instruct.
The Company will pay all applicable
state transfer taxes, if any, involved in the transfer to the several
Underwriters of the Securities to be purchased by them from such
Selling
13
Noteholder
and the respective Underwriters will pay any additional transfer taxes involved
in further transfers.
4. Offering by
Underwriters. It is understood that the several Underwriters
propose to offer the Securities for sale to the public as set forth in the Final
Prospectus.
5. Agreements.
(a) The
Company agrees with the several Underwriters and the Selling Noteholders
that:
(i)
Prior to the termination of the offering of the Securities, the Company will not
file any amendment of the Registration Statement or supplement (including the
Final Prospectus or any Preliminary Prospectus) to the Base Prospectus unless
the Company has furnished to the Representatives a copy for their review prior
to filing and will not file any such proposed amendment or supplement to which
the Representatives reasonably object. The Company will cause the
Final Prospectus, properly completed, and any supplement thereto to be filed in
a form approved by the Representatives with the Commission pursuant to the
applicable paragraph of Rule 424(b) within the time period prescribed and will
provide evidence satisfactory to the Representatives of such timely
filing. The Company will promptly advise the Representatives (i) when
the Final Prospectus, and any supplement thereto, shall have been filed (if
required) with the Commission pursuant to Rule 424(b), (ii) when, prior to
termination of the offering of the Securities, any amendment to the Registration
Statement shall have been filed or become effective, (iii) of any request by the
Commission or its staff for any amendment of the Registration Statement, or any
Rule 462(b) Registration Statement, or for any supplement to the Final
Prospectus or for any additional information, (iv) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement or of any notice objecting to its use or the institution or
threatening of any proceeding for that purpose and (v) of the receipt by the
Company of any notification with respect to the suspension of the qualification
of the Securities for sale in any jurisdiction or the institution or threatening
of any proceeding for such purpose. The Company will use its
reasonable best efforts to prevent the issuance of any such stop order or the
occurrence of any such suspension or objection to the use of the Registration
Statement and, upon such issuance, occurrence or notice of objection, to obtain
as soon as practicable the withdrawal of such stop order or relief from such
occurrence or objection, including, if necessary, by filing an amendment to the
Registration Statement or a new registration statement and using its reasonable
best efforts to have such amendment or new registration statement declared
effective as soon as practicable.
(ii) The
Company will prepare (or cause to be prepared) a final term sheet, containing a
description of the final terms of the Securities and the offering thereof, in
the form approved by the Representatives and attached as Schedule IV hereto and
file such term sheet pursuant to Rule 433(d) within the time required by such
Rule.
(iii) If,
at any time prior to the filing of the Final Prospectus pursuant to Rule 424(b),
any event occurs as a result of which the Disclosure Package would include any
14
untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein in the light of the circumstances under which they
were made or the circumstances then prevailing not misleading, the Company will
(i) notify promptly the Representatives so that any use of the Disclosure
Package may cease until it is amended or supplemented; (ii) amend or supplement
the Disclosure Package to correct such statement or omission; and (iii) supply
any amendment or supplement to the Representatives in such quantities as the
Representatives may reasonably request.
(iv) If,
at any time when a prospectus relating to the Securities is required to be
delivered under the Act (including in circumstances where such requirement may
be satisfied pursuant to Rule 172), any event occurs as a result of which the
Disclosure Package or the Final Prospectus as then supplemented would include
any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein in the light of the circumstances under
which they were made at such time not misleading, or if it shall be necessary to
amend the Registration Statement, file a new registration statement or
supplement the Disclosure Package or the Final Prospectus to comply with the Act
or the Exchange Act or the respective rules thereunder, including in connection
with use or delivery of the Disclosure Package or the Final Prospectus, the
Company promptly will (i) notify the Representatives of any such event, (ii)
prepare and file with the Commission, subject to the second sentence of
paragraph (a) of this Section 5, an amendment or supplement or new registration
statement which will correct such statement or omission or effect such
compliance, (iii) use its reasonable best efforts to have any amendment to the
Registration Statement or new registration statement declared effective as soon
as practicable in order to avoid any disruption in use of the Disclosure Package
or the Final Prospectus and (iv) supply any supplemented Disclosure Package or
Final Prospectus to the Representatives in such quantities as they may
reasonably request.
(v) As
soon as practicable, the Company will make generally available to its security
holders and to the Representatives an earnings statement or statements of the
Company which will satisfy the provisions of Section 11(a) of the Act and Rule
158.
(vi) The
Company will furnish to the Representatives and counsel for the Underwriters,
without charge, signed copies of the Registration Statement (including exhibits
thereto) and to each other Underwriter a copy of the Registration Statement
(without exhibits thereto) and, so long as delivery of a prospectus by an
Underwriter or dealer may be required by the Act (including in circumstances
where such requirement may be satisfied pursuant to Rule 172), as many copies of
each Preliminary Prospectus, the Final Prospectus and each Issuer Free Writing
Prospectus and any supplement thereto as the Representatives may reasonably
request. The Company will pay the expenses of printing or other
production of all documents relating to the offering.
(vii) The
Company will arrange, if necessary, for the qualification of the Securities for
sale under the laws of such jurisdictions in the United States as the
Representatives may designate and will maintain such qualifications in effect so
long as required for the distribution of the Securities; provided that in no
event shall the Company be obligated to qualify to do business in any
jurisdiction where it is not now so qualified or to take any action that would
subject it to service of process in suits, other
15
than
those arising out of the offering or sale of the Securities, in any jurisdiction
where it is not now so subject.
(viii) The
Company agrees that, unless it has or shall have obtained the prior written
consent of the Representatives (such consent not to be unreasonably withheld,
conditioned or delayed), and each Underwriter, severally and not jointly, agrees
with the Company that, unless it has or shall have obtained, as the case may be,
the prior written consent of the Company, it has not made and will not make any
offer relating to the Securities that would constitute an Issuer Free Writing
Prospectus or that would otherwise constitute a “free writing prospectus” (as
defined in Rule 405) required to be filed by the Company with the Commission or
retained by the Company under Rule 433, other than a free writing prospectus
containing the information contained in the final term sheet prepared and filed
pursuant to Section 5(a)(ii) hereto; provided that the prior written consent of
the parties hereto shall be deemed to have been given in respect of the Free
Writing Prospectuses included in Schedule III hereto. Any such free
writing prospectus consented to by the Representatives or the Company is
hereinafter referred to as a “Permitted Free Writing Prospectus.” The
Company agrees that (x) it has treated and will treat, as the case may be, each
Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and (y)
it has complied and will comply, as the case may be, with the requirements of
Rules 164 and 433 applicable to any Permitted Free Writing Prospectus, including
in respect of timely filing with the Commission, legending pursuant to
reasonable procedures developed in good faith, and record keeping.
(ix) The
Company will not, without the prior written consent of the Representatives (such
consent not to be unreasonably withheld, conditioned, or delayed), offer, sell,
contract to sell, pledge, or otherwise dispose of (or enter into any transaction
which is designed to, or might reasonably be expected to, result in the
disposition (whether by actual disposition or effective economic disposition due
to cash settlement or otherwise) by the Company or any affiliate of the
Company), directly or indirectly, including the filing (or participation in the
filing) of a registration statement with the Commission in respect of, or
establish or increase a put equivalent position or liquidate or decrease a call
equivalent position within the meaning of Section 16 of the Exchange Act, any
debt securities issued or guaranteed by the Company (other than the Securities)
or publicly announce an intention to effect any such transaction, until the
Closing Date.
(x) The
Company will not take, directly or indirectly, any action designed to or that
would constitute or that might reasonably be expected to cause or result in,
under the Exchange Act or otherwise, stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the
Securities.
(xi) The
Company agrees to pay the costs and expenses relating to the following matters:
(i) the preparation, printing or reproduction and filing with the Commission of
the Registration Statement (including financial statements and exhibits
thereto), each Preliminary Prospectus, the Final Prospectus and each Issuer Free
Writing Prospectus, and each amendment or supplement to any of them; (ii) the
printing (or reproduction) and delivery (including postage, air freight charges
and charges for counting and packaging) of such copies of the Registration
Statement, each Preliminary
16
Prospectus,
the Final Prospectus and each Issuer Free Writing Prospectus, and all amendments
or supplements to any of them, as may, in each case, be reasonably requested for
use in connection with the offering and sale of the Securities; (iii) the
preparation, printing (if any), authentication, issuance and delivery of
certificates for the Securities, including any stamp or transfer taxes in
connection with the original issuance and sale of the Securities; (iv) the
printing (or reproduction) and delivery of this Agreement, any blue sky
memorandum and all other agreements or documents printed (or reproduced) and
delivered in connection with the offering of the Securities; (v) any
registration of the Securities under the Exchange Act and the listing of the
Securities on the New York Stock Exchange; (vi) any registration or
qualification of the Securities for offer and sale under the securities or blue
sky laws of the several states (including filing fees and the reasonable fees
and expenses of counsel for the Underwriters relating to such registration and
qualification); (vii) any filings required to be made with FINRA (including
filing fees and the reasonable fees and expenses of counsel for the Underwriters
relating to such filings); (viii) the transportation and other expenses incurred
by or on behalf of Company representatives in connection with presentations to
prospective purchasers of the Securities; (ix) the fees and expenses of the
Company’s accountants and the fees and expenses of counsel (including local and
special counsel) for the Company; and (x) all other costs and expenses incident
to the performance by the Company and the Selling Noteholders of their
obligations hereunder; provided, that the
Selling Noteholders agree to pay the fees and expenses of their respective
counsel and any other fees and expenses of their respective
advisors.
(xii) Solely
in connection with the consummation of the transactions contemplated by this
Agreement, the Company hereby irrevocably waives, and agrees not to exercise,
any rights of first offer to the Securities that the Company may
have.
(xiii) The
Company agrees to make timely delivery to the Selling Noteholders of the Selling
Noteholder Securities to be delivered under the Purchase Agreement to enable the
Selling Noteholders to deliver such Securities hereunder.
(b) Each
Selling Noteholder, severally and not jointly, agrees with the several
Underwriters and the Company that:
(i) Such
Selling Noteholder will not take, directly or indirectly, any action designed to
or that would constitute or that might reasonably be expected to cause or result
in, under the Exchange Act or otherwise, stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the
Securities until such Selling Noteholder shall be deemed to have completed its
participation in the distribution of the Securities as computed in Rule 100 of
Regulation M under the Exchange Act. It is agreed that both orders
and purchases by the Selling Noteholders in connection with the offering shall
not violate this clause (i).
(ii) Such
Selling Noteholder will advise you promptly, and if requested by you, will
confirm such advice in writing, so long as delivery of a prospectus relating to
the Securities by an underwriter or dealer may be required under the Act, of any
change in the name of such Selling Noteholder and the amount of Securities owned
by such
17
Selling
Noteholder included under the caption “Selling Noteholders” in the Registration
Statement, the Final Prospectus, any Preliminary Prospectus or any amendment or
supplement thereto.
(iii) Such
Selling Noteholder represents that it has not prepared or had prepared on its
behalf or used or referred to, and agrees that it will not prepare or have
prepared on its behalf or use or refer to, any Free Writing Prospectus, and has
not distributed and will not distribute any written materials in connection with
the offer or sale of the Securities.
6. Conditions to the
Obligations of the Underwriters. The obligations of the
Underwriters to purchase the Securities shall be subject to the accuracy of the
representations and warranties on the part of the Company and the Selling
Noteholders contained herein as of the Execution Time and the Closing Date, to
the accuracy of the statements of the Company and the Selling Noteholders made
in any certificates pursuant to the provisions hereof, to the performance by the
Company and the Selling Noteholders of their respective obligations hereunder
and to the following additional conditions:
(a) The
Final Prospectus, and any supplement thereto, have been filed in the manner and
within the time period required by Rule 424(b); the final term sheet
contemplated by Section 5(a)(ii) hereto, and any other material required to be
filed by the Company pursuant to Rule 433(d) under the Act, shall have been
filed with the Commission within the applicable time periods prescribed for such
filings by Rule 433; and no stop order suspending the effectiveness of the
Registration Statement or any notice objecting to its use shall have been issued
and no proceedings for that purpose shall have been instituted or
threatened.
(b) The
Company shall have requested and caused Shearman & Sterling LLP, external
counsel of the Company to have furnished to the Representatives their opinion
dated the Closing Date and addressed to the Representatives, to the effect
that:
(i) this
Agreement has been duly authorized, executed and delivered by the
Company;
(ii) the
Purchase Agreement has been duly authorized, executed and delivered by the
Company and (assuming the due authorization, execution and delivery by each of
the other parties thereto) constitutes the valid and legally binding obligation
of the Company enforceable in accordance with its terms except as the same may
be limited by bankruptcy, insolvency, reorganization or other laws of general
applicability relating to or affecting the enforcement of creditors’ rights and
to general equity principles;
(iii) no
authorization, approval or other action by, and no notice to or filing with, any
United States federal or New York governmental authority or regulatory body, is
required for the due execution, delivery or performance by the Company of the
Underwriting Agreement or the Purchase Agreement, except as have been obtained
and are in full force and effect under the Act or as may be required under the
securities or blue sky laws of any jurisdiction in the United States in
connection with the offer and sale of the Securities by the
Company;
18
(iv) the
Indenture has been duly authorized, executed and delivered by the Company and
(assuming due authorization, execution, and delivery by the Trustee) constitutes
a valid and legally binding agreement of the Company, enforceable in accordance
with its terms except as the same may be limited by bankruptcy, insolvency,
reorganization or other laws of general applicability relating to or affecting
the enforcement of creditors’ rights and to general equity principles; the
Indenture has been duly qualified under the Trust Indenture Act;
(v) the
Company Securities have been duly authorized and executed by the Company and,
when authenticated by the Trustee in accordance with the Indenture and delivered
and paid for as provided in the Underwriting Agreement, the Company Securities
will be the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms and entitled to the benefits
of the Indenture, except as the same may be limited by bankruptcy, insolvency,
reorganization or other laws of general applicability relating to or affecting
the enforcement of creditors’ rights and to general equity
principles;
(vi) the
Selling Noteholder Securities have been duly authorized and executed by the
Company and, when authenticated by the Trustee in accordance with the Indenture
and delivered by the Company to the Selling Noteholders in accordance with the
Purchase Agreement will be the legal, valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms and
entitled to the benefits of the Indenture, except as the same may be limited by
bankruptcy, insolvency, reorganization or other laws of general applicability
relating to or affecting the enforcement of creditors’ rights and to general
equity principles;
(vii) the
execution and delivery by the Company of the Underwriting Agreement do not, and
the performance by the Company of its obligations thereunder and the
consummation of the transactions contemplated thereby will not result in a
violation of the law of the State of New York (including the rules or
regulations promulgated thereunder or pursuant thereto), that a New York lawyer
exercising customary professional diligence would reasonably be expected to
recognize as being applicable to the Company, the Underwriting Agreement or the
transactions governed thereby;
(viii) the
statements in the Disclosure Package and the Final Prospectus under the caption
“Description of the Notes” and “Description of the Debt Securities”, in each
case, insofar as such statements constitute summaries of documents referred to
therein, fairly summarize in all material respects the documents referred to
therein; and
(ix) the
statements in the Disclosure Package and the Final Prospectus under the caption
“United States Federal Tax Considerations,” insofar as such statements
constitute summaries of legal matters referred to therein and subject to the
limitations set forth therein, fairly summarize in all material respects the
legal matters referred to therein.
In addition, such counsel shall state
that (a) to the best of such counsel’s knowledge based on the telephonic request
to the staff of the Commission, the registration is effective and
19
no
proceedings for a stop order with respect thereto are pending or are threatened
and (b) each of the Registration Statement and the Final Prospectus, excluding
the documents incorporated by reference therein (other than the financial
statements and other financial or statistical data contained therein or omitted
therefrom, and the Trustee's Statement of Eligibility (Form T-1), as to which
such counsel expresses no opinion), appears on its face to be appropriately
responsive in all material respects to the requirements of the Act and the
applicable rules and regulations of the Commission thereunder.
Such counsel shall also state that no
facts came to such counsel’s attention that caused such counsel to believe that
(i) the Registration Statement (other than the financial statements and
other financial or statistical data contained therein or omitted therefrom and
the Trustee's Statement of Eligibility (Form T-1), as to which such counsel has
not been requested to comment), as of the date of the Underwriting Agreement,
contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading, or (ii) the Disclosure Package (other than the financial
statements and other financial or statistical data contained therein or omitted
therefrom, as to which such counsel has not been requested to comment), at the
Execution Time, contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading or (iii)
the Final Prospectus (other than the financial statements and other financial or
statistical data contained therein or omitted therefrom, as to which such
counsel has not been requested to comment), as of its date and as of the Closing
Date, contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.
In rendering such opinion, such counsel
may rely (A) as to matters involving the application of laws of any jurisdiction
other than the State of New York, the corporate law of the State of Delaware or
the Federal laws of the United States, to the extent they deem proper and
specified in such opinion, upon the opinion of other counsel of good standing
whom they believe to be reliable and who are satisfactory to counsel for the
Underwriters and (B) as to matters of fact, to the extent they deem proper, on
certificates of responsible officers of the Company and public
officials. References to the Final Prospectus in this paragraph (b)
shall also include any supplements thereto at the Closing Date.
(c) The
Company shall have requested and caused Xxxxxx X. Xxxxxx, Assistant General
Counsel – Corporate and Financial Law, of the Company to have furnished to the
Representatives his opinion dated the Closing Date and addressed to the
Representatives, to the effect that:
(i)
the Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware, with full
corporate power and authority to own, lease, and/or operate its properties and
conduct its business as described in the Disclosure Package and the Final
Prospectus, and is duly qualified to do business as a foreign corporation and is
in good standing under the laws of each jurisdiction which requires such
qualification wherein it owns or leases material
20
properties
or conducts material business, except where the failure to so qualify would not
have a Material Adverse Effect;
(ii) each
of UCC and Rohm and Xxxx has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the jurisdiction in which it is
chartered or organized, with full corporate power and authority to own, lease,
and/or operate its properties and conduct its business as described in the
Disclosure Package and the Final Prospectus, and is duly qualified to do
business as a foreign corporation and is in good standing under the laws of each
jurisdiction which requires such qualification wherein it owns or leases
material properties or conducts material business, except where the failure to
so qualify would not have a Material Adverse Effect;
(iii) except
as otherwise set forth in the Disclosure Package and the Final Prospectus, all
the outstanding shares of capital stock of UCC and Rohm and Xxxx have been duly
authorized and validly issued and are fully paid and non-assessable and, except
as otherwise set forth in the Disclosure Package and the Final Prospectus, and
except for shares necessary to qualify directors or to maintain any minimum
number of shareholders required by law, all outstanding shares of capital stock
of UCC and Rohm and Xxxx are owned by the Company either directly or through
wholly owned subsidiaries free and clear of any perfected security interest and,
to the knowledge of such counsel, after due inquiry, any other security
interest, claim, lien or encumbrance;
(iv) the
Company’s authorized equity capitalization is as set forth in the Disclosure
Package and the Final Prospectus (except for subsequent issuances pursuant to
employee benefit plans or pursuant to the exercise of convertible securities or
options and except for repurchases in connection with open market or repurchase
plans or redemptions of shares of preferred stock);
(v) to
the knowledge of such counsel, except as disclosed in the Disclosure Package and
the Final Prospectus, there is no pending or threatened action, suit or
proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving the Company or any of its subsidiaries, that (i) would
reasonably be expected to have a material adverse effect on the performance of
this Agreement or the consummation of any of the transactions contemplated
hereby or (ii) would reasonably be expected to have a Material Adverse
Effect;
(vi) neither
the execution and delivery of the Indenture, the issue and sale of the
Securities, nor the consummation of any other of the transactions herein
contemplated nor the fulfillment of the terms hereof will conflict with, result
in a breach or violation of, or imposition of any lien, charge or encumbrance
upon any property or assets of the Company or its subsidiaries pursuant to, (i)
the charter or by-laws of the Company, UCC or Rohm and Xxxx, (ii) the terms of
any indenture, contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant or instrument to
which the Company or its subsidiaries is a party or bound or to which its or
their property is subject, or (iii) any statute, law, rule, regulation, other
than of the State of New York, judgment, order or decree applicable to the
Company or its
21
subsidiaries
of any court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over the Company or its
subsidiaries or any of its or their properties, which conflict, breach,
violation, lien, charge or encumbrance, in the case of (ii) and (iii), would,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect or affect the validity of the Securities or the legal authority
of the Company to comply with the Securities, the Indenture or this Agreement in
any material respect;
(vii) the
Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the
Disclosure Package and the Final Prospectus, will not be an “investment company”
as defined in the Investment Company Act of 1940, as amended;
and
(viii) the
documents incorporated by reference in the Disclosure Package and the Final
Prospectus (other than the financial statements and other financial and
statistical information contained therein, as to which such counsel need express
no opinion), when they became effective or were filed with the Commission, as
the case may be, complied as to form in all material respects with the
applicable requirements of the Act or the Exchange Act and the rules and
regulations of the Commission thereunder, and nothing has come to his attention
that caused him to believe that any of such documents contained an untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
In addition, such counsel shall state
that any required filing of the Base Prospectus, any Preliminary Prospectus and
the Final Prospectus, and any supplements thereto, pursuant to Rule 424(b) has
been made in the manner and within the time period required by Rule
424(b).
In addition, such counsel shall also
state that no facts came to such counsel’s attention that caused such counsel to
believe that (i) the Registration Statement (other than the financial statements
and other financial or statistical data contained therein or omitted therefrom
and the Trustee's Statement of Eligibility (Form T-1), as to which such counsel
has not been requested to comment), as of the date of the Underwriting
Agreement, contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or (ii) the Disclosure Package (other than
the financial statements and other financial or statistical data contained
therein or omitted therefrom, as to which such counsel has not been requested to
comment), at the Execution Time, contained an untrue statement of a material
fact or omitted to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading or (iii) the Final Prospectus (other than the financial
statements and other financial or statistical data contained therein or omitted
therefrom, as to which such counsel has not been requested to comment), as of
its date and as of the Closing Date, contained or contains an untrue statement
of a material fact or omitted or omits to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
22
In rendering such opinion, such counsel
may rely (A) as to matters involving the application of laws of any jurisdiction
other than the State of Michigan, the corporate law of the State of Delaware or
the Federal laws of the United States, to the extent he deems proper and
specified in such opinion, upon the opinion of other counsel of good standing
whom he believes to be reliable and who are satisfactory to counsel for the
Underwriters and (B) as to matters of fact, to the extent he deems proper, on
certificates of responsible officers of the Company and public
officials. References to the Final Prospectus in this paragraph (c)
shall also include any supplements thereto at the Closing Date.
(d) The
Selling Noteholders shall have requested and caused counsel for the Selling
Noteholders, to have furnished to the Representatives their opinion dated the
Closing Date and addressed to the Representatives, substantially to the effect
set forth in Exhibit A hereto.
(e) The
Representatives shall have received from Xxxxx Xxxxx LLP, counsel for the
Underwriters, such opinion or opinions, dated the Closing Date and addressed to
the Representatives, with respect to the issuance and sale of the Securities,
the Indenture, the Registration Statement, the Disclosure Package, the Final
Prospectus (together with any supplement thereto) and other related matters as
the Representatives may reasonably require, and the Company and each Selling
Noteholder shall have furnished to such counsel such documents as they
reasonably request for the purpose of enabling them to pass upon such
matters.
(f) The
Company shall have furnished to the Representatives a certificate of the
Company, signed by the Chairman of the Board, the President, the Chief Financial
Officer or the Treasurer of the Company, dated the Closing Date, to the effect
that the signer of such certificate has carefully examined (or caused to be
examined) the Registration Statement, the Disclosure Package, the Final
Prospectus, any Issuer Free Writing Prospectus and any supplements or amendments
thereto, as well as each electronic road show used in connection with the
offering of the Securities, and this Agreement and that:
(i) the
representations and warranties of the Company in this Agreement are true and
correct on and as of the Closing Date with the same effect as if made on the
Closing Date and the Company has complied with all the agreements and satisfied
all the conditions on its part to be performed or satisfied at or prior to the
Closing Date;
(ii) no
stop order suspending the effectiveness of the Registration Statement or any
notice objecting to its use has been issued and no proceedings for that purpose
have been instituted or, to the Company’s knowledge, threatened;
and
(iii) since
the date of the most recent financial statements of the Company included or
incorporated by reference in the Disclosure Package and the Final Prospectus
(exclusive of any supplement thereto), there has been no material adverse change
in or affecting the business, financial condition or results of operations of
the Company and its consolidated subsidiaries considered as a whole, whether or
not arising from transactions in the ordinary course of business, except as set
forth or contemplated in the Disclosure Package and the Final Prospectus
(exclusive of any amendments or supplements thereto after the date
hereof).
23
(g) Each
Selling Noteholder shall have furnished to the Representatives a certificate,
signed by an authorized officer (or comparable person) of such Selling
Noteholder, dated the Closing Date, to the effect that the representations and
warranties of such Selling Noteholder in this Agreement are true and correct on
and as of the Closing Date to the same effect as if made on the Closing
Date.
(h) At
the Execution Time and on the Closing Date, Deloitte & Touche LLP shall have
furnished to the Representatives, at the request of the Company, letters, dated
the respective dates of delivery thereof and addressed to the Underwriters, in
form and substance reasonably satisfactory to the Representatives, containing
statements and information of the type customarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements and
certain financial information contained or incorporated by reference in the
Registration Statement, the Disclosure Package and the Final Prospectus; provided that the
letter delivered on the Closing Date shall use a “cut-off’ date no more than
three business days prior to the Closing Date.
(i) At
the Execution Time and on the Closing Date, PricewaterhouseCoopers LLP shall
have furnished to the Representatives, at the request of the Company, letters,
dated the respective dates of delivery thereof and addressed to the
Underwriters, in form and substance reasonably satisfactory to the
Representatives, containing statements and information of the type customarily
included in accountants’ “comfort letters” to underwriters with respect to the
financial statements and certain financial information of Rohm and Xxxx
contained or incorporated by reference in the Registration Statement, the
Disclosure Package and the Final Prospectus; provided that the
letter delivered on the Closing Date shall use a “cut-off’ date no more than
three business days prior to the Closing Date.
(j) Subsequent
to the Execution Time or, if earlier, the dates as of which information is given
in the Registration Statement (exclusive of any amendment thereof) and the Final
Prospectus (exclusive of any amendment or supplement thereto), there shall not
have been (i) any change or decrease specified in the letters referred to in
paragraphs (h) and (i) of this Section 6 or (ii) any change, or any development
involving an impending prospective change, in or affecting the business,
prospects, financial condition or results of operations of the Company and its
consolidated subsidiaries taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set forth in or
contemplated in the Disclosure Package and the Final Prospectus (exclusive of
any amendment or supplement thereto) the effect of which, in any case referred
to in clause (i) or (ii) above, is, in the reasonable judgment of the
Representatives, so material and adverse as to make it impractical or
inadvisable to proceed with the offering or delivery of the Securities as
contemplated by the Registration Statement (exclusive of any amendment thereof),
the Disclosure Package and the Final Prospectus (exclusive of any amendment or
supplement thereto).
(k) Subsequent
to the Execution Time, there shall not have been any decrease in the rating of
any of the Company’s debt securities by any “nationally recognized statistical
rating organization” (as defined for purposes of Rule 436(g) under the Act) or
any notice given of any intended or potential decrease in any such rating or of
a possible change in any such rating that does not indicate the direction of the
possible change.
24
(l) Prior
to the Closing Date, the Company and the Selling Noteholders shall have
furnished to the Representatives such further information, certificates and
documents as the Representatives may reasonably request for the purpose of
enabling them to pass upon the issuance and sale of the Securities as herein
contemplated, or in order to evidence the accuracy of any of the representations
or warranties, or the fulfillment of any of the conditions, herein
contained.
If any of the conditions specified in
this Section 6 shall not have been fulfilled when and as provided in this
Agreement, or if any of the opinions and certificates mentioned above or
elsewhere in this Agreement shall not be reasonably satisfactory in form and
substance to the Representatives and counsel for the Underwriters, this
Agreement and all obligations of the Underwriters hereunder may be canceled at,
or at any time prior to, the Closing Date by the
Representatives. Notice of such cancellation shall be given to the
Company and each Selling Noteholder in writing or by telephone or facsimile
confirmed in writing.
The documents required to be delivered
by this Section 6 shall be delivered at the office of Xxxxx Xxxxx LLP, counsel
for the Underwriters, at 00 Xxxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx 00000, on the
Closing Date.
6A. Conditions to the
Obligations of the Selling Noteholders.
(a) The
obligations of the Selling Noteholders to deliver the Selling Noteholder
Securities and the associated certificates and opinions, shall be subject to the
Company having delivered to the Selling Noteholders the Securities which the
Selling Noteholders are required to deliver hereunder, in all respects in
compliance with the Purchase Agreement. The Selling Noteholders shall have no
liability to the Underwriters or any other person in the event that they are
unable to deliver the Securities to the Underwriters because the Company has
failed to deliver such Securities to the Selling Noteholders on a timely basis
in compliance with the Purchase Agreement.
(b) The
consummation of the offering hereby by the Selling Noteholders of the Selling
Noteholder Securities is conditioned upon the consummation of the Equity
Offering by the Company pursuant to the Equity Offering Agreement.
7. Reimbursement of
Underwriters’ Expenses. If the sale of the Securities provided
for herein is not consummated because any condition to the obligations of the
Underwriters set forth in Section 6 hereof is not satisfied, because of any
termination pursuant to Section 10 hereof or because of any refusal, inability
or failure on the part of the Company or any Selling Noteholder to perform any
agreement herein or comply with any provision hereof other than by reason of a
default by any of the Underwriters, the Company will reimburse the Underwriters
severally through the Representatives on demand for all reasonable and properly
documented out-of-pocket expenses (including reasonable fees and disbursements
of counsel) that shall have been incurred by them in connection with the
proposed purchase and sale of the Securities. If the Company is required to make
any payments to the Underwriters under this Section 7 because of any Selling
Noteholder’s refusal, inability or failure to satisfy any condition to the
obligations of the Underwriters set forth in Section 6 (except to the extent
caused by the Company’s failure to deliver the Selling Noteholder Securities on
the Closing Date as required by the Purchase
25
Agreement
and as set forth Section 6A above), the Company shall be reimbursed on demand
for all amounts so paid by the breaching Selling Noteholder.
8. Indemnification and
Contribution.
(a) The
Company agrees to indemnify and hold harmless each Underwriter, the directors,
officers, employees and agents and affiliates of each Underwriter and each
person who controls any Underwriter within the meaning of either the Act or the
Exchange Act against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the Act, the
Exchange Act, the Trust Indenture Act or other Federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in
the registration statement for the registration of the Securities as originally
filed or in any amendment thereof, or in the Base Prospectus, any Preliminary
Prospectus or any other preliminary prospectus supplement relating to the
Securities, the Final Prospectus or any Issuer Free Writing Prospectus or the
information contained in the final term sheet required to be prepared and filed
pursuant to Section 5(a)(ii) hereto, or in any amendment thereof or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein (in the case of a prospectus, in the light of the
circumstances under which they were made) not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished to
the Company by or on behalf of any Underwriter through the Representatives
specifically for inclusion therein. This indemnity agreement will be
in addition to any liability which the Company may otherwise have.
(b) Each
Selling Noteholder severally agrees to indemnify and hold harmless each
Underwriter, the directors, officers, employees, agents and affiliates of each
Underwriter and each person who controls any Underwriter within the meaning of
either the Act or the Exchange Act, if any, to the same extent as the foregoing
indemnity from the Company to each Underwriter, but only with reference to
written information furnished to the Company or any Underwriter by or on behalf
of such Selling Noteholder specifically for inclusion in the documents referred
to in the foregoing indemnity; it being agreed that the only such information is
the information included in the Registration Statement, any Preliminary
Prospectus or the Final Prospectus under the caption “Selling Noteholders”
adjacent to the name of such Selling Noteholder in the table included
therein. This indemnity agreement will be in addition to any
liability which any Selling Noteholder may otherwise have.
(c) Each
Underwriter severally and not jointly agrees to indemnify and hold harmless the
Company, each of its directors, each of its officers who signs the Registration
Statement, and each person who controls the Company within the meaning of either
the Act or the Exchange Act, each Selling Noteholder, and each person who
controls a Selling Noteholder within the meaning of either the Act or the
Exchange Act, to the same extent as the foregoing indemnity to
26
each
Underwriter contained in paragraph (a) above, but only with reference to written
information relating to such Underwriter furnished to the Company by or on
behalf of such Underwriter through the Representatives specifically for
inclusion in the documents referred to in the foregoing
indemnity. This indemnity agreement will be in addition to any
liability which any Underwriter may otherwise have. The Company and
the Selling Noteholders acknowledge that the statements set forth under the
heading "Underwriting" in (i) the list of Underwriters and their respective
participation in the sale of the Securities, (ii) the first two sentences
of the third paragraph (related to concessions and reallowances) and
(iii) the seventh, eighth and ninth paragraphs (related to stabilization,
syndicate covering transactions and penalty bids) in any Preliminary Prospectus
and the Final Prospectus constitute the only information furnished in writing by
or on behalf of the several Underwriters for inclusion in any Preliminary
Prospectus, the Final Prospectus or any Issuer Free Writing
Prospectus.
(d) Promptly
after receipt by an indemnified party under this Section 8 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 8,
notify the indemnifying party in writing of the commencement thereof; but the
failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses and (ii) will
not, in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled
to participate in any such action and appoint counsel of the indemnifying
party’s choice at the indemnifying party’s expense to represent the indemnified
party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and expenses
of any separate counsel retained by the indemnified party or parties except as
set forth below); provided, however, that such counsel shall be satisfactory to
the indemnified party. Notwithstanding the indemnifying party’s
election to appoint counsel to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel (including
local counsel), and the indemnifying party shall bear the reasonable fees, costs
and expenses of such separate counsel if (i) the use of counsel chosen by
the indemnifying party to represent the indemnified party would present such
counsel with a conflict of interest, (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified party
and the indemnifying party and the indemnified party shall have reasonably
concluded that there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those available to
the indemnifying party (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel
(other than local counsel), approved by the Underwriters in the case of
paragraph (a) of this Section 8, representing the indemnified parties under such
paragraph (a) who are parties to such action), (iii) the indemnifying party
shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action or (iv) the indemnifying party shall authorize the
indemnified party to employ separate counsel at the expense of the indemnifying
party. An indemnifying party will not, without the prior written
consent of the indemnified parties, settle or compromise or consent to the entry
of any judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such
27
claim or
action) unless such settlement, compromise or consent includes (i) an
unconditional release of each indemnified party from all liability arising out
of such claim, action, suit or proceeding and (ii) does not include a statement
as to or an admission of fault, culpability or a failure to act, by or on behalf
of any indemnified party.
(e) In
the event that the indemnity provided in paragraph (a), (b) or (c) of this
Section 8 is unavailable to or insufficient to hold harmless an indemnified
party for any reason, the Company, the Selling Noteholders and the Underwriters
severally agree to contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in connection
with investigating or defending the same) (collectively “Losses”) to which the
Company, one or more of the Selling Noteholders and one or more of the
Underwriters may be subject in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Selling Noteholders on the one
hand and by the Underwriters on the other from the offering of the
Securities. If the allocation provided by the immediately preceding
sentence is unavailable for any reason, the Company, the Selling Noteholders and
the Underwriters severally shall contribute in such proportion as is appropriate
to reflect not only such relative benefits but also the relative fault of the
Company and the Selling Noteholders on the one hand and of the Underwriters on
the other in connection with the statements or omissions which resulted in such
Losses as well as any other relevant equitable
considerations. Benefits received by the Company and by the Selling
Noteholders shall be deemed to be equal to the total net proceeds from the
offering (before deducting expenses) received by each of them, and benefits
received by the Underwriters shall be deemed to be equal to the total
underwriting discounts and commissions, in each case as set forth on the cover
page of the Final Prospectus. Relative fault shall be determined by reference
to, among other things, whether any untrue or any alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information provided by the Company and the Selling Noteholders, on
the one hand, or the Underwriters, on the other, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. Notwithstanding the
provisions of this paragraph (e), no Underwriter shall be required to contribute
any amount in excess of the underwriting commissions received by such
Underwriter in connection with the Securities underwritten by it and distributed
to the public. The Company, the Selling Noteholders and the Underwriters agree
that it would not be just and equitable if contribution were determined by pro
rata allocation or any other method of allocation which does not take account of
the equitable considerations referred to above. Notwithstanding the
provisions of this paragraph (e), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 8, each person
who controls an Underwriter within the meaning of either the Act or the Exchange
Act and each director, officer, employee and agent of an Underwriter shall have
the same rights to contribution as such Underwriter, and each person who
controls the Company within the meaning of either the Act or the Exchange Act,
each officer of the Company who shall have signed the Registration Statement and
each director of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this
paragraph (e).
(f) The
liability of each Selling Noteholder under such Selling Noteholder’s
representations and warranties contained in Section 1 hereof and under the
indemnity and
28
contribution
agreements contained in this Section 8 shall be limited to an amount equal
to the aggregate purchase prices of the Securities sold by such Selling
Noteholder to the Underwriters. The Company and the Selling
Noteholders may agree, as among themselves and without limiting the rights of
the Underwriters under this Agreement, as to the respective amounts of such
liability for which they each shall be responsible.
9. Default by an
Underwriter. If any one or more Underwriters shall fail to
purchase and pay for any of the Securities agreed to be purchased by such
Underwriter or Underwriters hereunder and such failure to purchase shall
constitute a default in the performance of its or their obligations under this
Agreement, the remaining Underwriters shall be obligated severally to take up
and pay for (in the respective proportions which the principal amount of
Securities set forth opposite their names in Schedule I hereto bears to the
aggregate principal amount of Securities set forth opposite the names of all the
remaining Underwriters) the Securities which the defaulting Underwriter or
Underwriters agreed but failed to purchase; provided, however, that in the
event that the aggregate principal amount of Securities which the defaulting
Underwriter or Underwriters agreed but failed to purchase shall exceed 10% of
the aggregate principal amount of Securities set forth in Schedule I hereto, the
remaining Underwriters shall have the right to purchase all, but shall not be
under any obligation to purchase any, of the Securities, and if such
nondefaulting Underwriters do not purchase all the Securities, this Agreement
will, subject to the immediately following sentence, terminate without liability
to any nondefaulting Underwriter, the Selling Noteholders or the
Company. In the event of a default by any Underwriter as set forth in
this Section 9, the Closing Date shall be postponed for such period, not less
than one but not exceeding five Business Days, as the Representatives shall
determine in order that the required changes in the Registration Statement and
the Final Prospectus or in any other documents or arrangements may be
effected. During such time, the Company shall be entitled to procure
another party or parties to purchase such Securities on such terms; provided
that the non-defaulting Underwriters shall consent to such other party or
parties, which consent shall not be unreasonably withheld, conditioned, or
delayed. Nothing contained in this Agreement shall relieve any
defaulting Underwriter of its liability, if any, to the Company, the Selling
Noteholders and any nondefaulting Underwriter for damages occasioned by its
default hereunder.
10. Termination. This
Agreement shall be subject to termination in the absolute discretion of the
Representatives, by notice given to the Company and the Selling Noteholders
prior to delivery of and payment for the Securities, if at any time prior to
such delivery and payment (i) trading in the Company’s Common Stock shall have
been suspended by the Commission or the New York Stock Exchange or trading in
securities generally on the New York Stock Exchange shall have been suspended or
limited or minimum prices shall have been established on such exchange, (ii) a
banking moratorium shall have been declared either by Federal or New York State
authorities or (iii) there shall have occurred any outbreak or escalation of
hostilities, declaration by the United States of a national emergency or war, or
other calamity or crisis the effect of which on financial markets is such as to
make it, in the judgment of the Representatives, impractical or inadvisable to
proceed with the offering or delivery of the Securities as contemplated by any
Preliminary Prospectus or the Final Prospectus (exclusive of any amendment or
supplement thereto).
29
11. Representations and
Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company or
its officers, of each Selling Noteholder or its officers and of the Underwriters
set forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of any Underwriter,
any Selling Noteholder or the Company or any of the officers, directors,
employees, agents or controlling persons referred to in Section 8 hereof, and
will survive delivery of and payment for the Securities. The
provisions of Sections 7 and 8 hereof shall survive the termination or
cancellation of this Agreement.
12. Notices. All
communications hereunder will be in writing and effective only on receipt, and,
if sent to the Representatives, will be mailed, delivered or telefaxed to Banc
of America Securities LLC, High Grade Transaction Management/Legal (fax no.
(000) 000-0000) and confirmed to High Grade Transaction Management/Legal, Banc
of America Securities LLC at Xxx Xxxxxx Xxxx, XX0-000-00-00, Xxx Xxxx, Xxx Xxxx
00000; Citigroup Global Markets Inc., General Counsel (fax
no.: (000) 000-0000) and confirmed to the General Counsel,
Citigroup Global Markets Inc., at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx,
Xxx Xxxx, 00000, Attention: General Counsel; HSBC Securities
(USA) Inc., Transaction Management Group (fax no.: (000) 000-0000) and confirmed
to Transaction Management Group, HSBC Securities (USA) Inc., at HSBC Tower 3,
000 0xx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000; and Xxxxxx Xxxxxxx & Co.
Incorporated (fax no.: (212) 000- 0000), at 0000 Xxxxxxxx, 00xx Xxxxx, Xxx Xxxx,
Xxx Xxxx 00000, Attention: Investment Banking Division, or, if sent to the
Company, will be mailed, delivered or telefaxed to the Treasurer, The Dow
Chemical Company (fax no. (000) 000-0000) and confirmed to the Treasurer, The
Dow Chemical Company at 0000 Xxx Xxxxxx, Xxxxxxx, Xxxxxxxx 00000, or, if sent to
any Selling Noteholder, will be mailed, delivered or telefaxed and confirmed to
it at the address set forth in Schedule II hereto.
13. Successors. This
Agreement will inure to the benefit of and be binding upon the parties hereto
and their respective successors and the officers, directors, employees, agents
and controlling persons referred to in Section 8 hereof, and no other person
will have any right or obligation hereunder.
14. No Fiduciary
Duty. The Company and the Selling Noteholders each hereby
acknowledge that (a) the purchase and sale of the Securities pursuant to this
Agreement is an arm’s-length commercial transaction between the Company and the
Selling Noteholders, on the one hand, and the Underwriters and any affiliate
through which it may be acting, on the other, (b) the Underwriters are acting as
principal and not as an agent or fiduciary of the Company or the Selling
Noteholders and (c) the engagement of the Underwriters by the Company and the
Selling Noteholders in connection with the offering and the process leading up
to the offering is as independent contractors and not in any other
capacity. Furthermore, the Company and the Selling Noteholders agree
that they are solely responsible for making their own judgments in connection
with the offering (irrespective of whether any of the Underwriters has advised
or is currently advising the Company or the Selling Noteholders on related or
other matters). The Company and the Selling Noteholders each hereby
agree that it will not claim that the Underwriters have rendered advisory
services of any nature or respect, or owe an agency, fiduciary or similar duty
to them, in connection with such transaction or the process leading
thereto.
30
15. Integration. This
Agreement supersedes all prior agreements and understandings (whether written or
oral) between the Company and the Underwriters, or any of them, with respect to
the subject matter hereof.
16. Applicable
Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed within the State of New York.
17. Waiver of Jury
Trial. The Company, the Selling Noteholders and the
Underwriters hereby irrevocably waive, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby.
18. Counterparts. This
Agreement may be signed in one or more counterparts, each of which shall
constitute an original and all of which together shall constitute one and the
same agreement.
19. Headings. The
section headings used herein are for convenience only and shall not affect the
construction hereof.
20. Definitions. The
terms that follow, when used in this Agreement, shall have the meanings
indicated.
“Act” shall mean the Securities Act of
1933, as amended and the rules and regulations of the Commission promulgated
thereunder.
“Base Prospectus” shall mean the base
prospectus referred to in paragraph 1(a)(i) above contained in the Registration
Statement at the Execution Time.
“Business Day” shall mean any day other
than a Saturday, a Sunday or a legal holiday or a day on which banking
institutions or trust companies are authorized or obligated by law to close in
New York City.
“Commission” shall mean the Securities
and Exchange Commission.
“Disclosure Package” shall mean (i) the
Base Prospectus, (ii) the Preliminary Prospectus used most recently prior to the
Execution Time, (iii) the Issuer Free Writing Prospectuses, if any, identified
in Schedule III hereto, (iv) the final term sheet prepared and filed pursuant to
Section 5(a)(ii) hereto, if any, and (v) any other Free Writing Prospectus that
the parties hereto shall hereafter expressly agree in writing to treat as part
of the Disclosure Package.
“Effective Date” shall mean each date
and time that the Registration Statement and any post-effective amendment or
amendments thereto became or becomes effective.
“Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended, and the rules and regulations of
the Commission promulgated thereunder.
31
“Execution Time” shall mean the date
and time that this Agreement is executed and delivered by the parties
hereto.
“Final Prospectus” shall mean the
prospectus supplement relating to the Securities that was first filed pursuant
to Rule 424(b) after the Execution Time, together with the Base
Prospectus.
“Free Writing Prospectus” shall mean a
free writing prospectus, as defined in Rule 405.
“Issuer Free Writing Prospectus” shall
mean an issuer free writing prospectus, as defined in Rule 433.
“Preliminary Prospectus” shall mean any
preliminary prospectus supplement to the Base Prospectus referred to in
paragraph 1(a)(i) above which is used prior to the filing of the Final
Prospectus, together with the Base Prospectus.
“Registration Statement” shall mean the
registration statement referred to in paragraph 1(a)(i) above, including
exhibits and financial statements and any prospectus supplement relating to the
Securities that is filed with the Commission pursuant to Rule 424(b) and deemed
part of such registration statement pursuant to Rule 430B, as amended on each
Effective Date and, in the event any post-effective amendment thereto becomes
effective prior to the Closing Date, shall also mean such registration statement
as so amended.
“Rule 158”, “Rule 163”, “Rule 164”,
“Rule 172”, “Rule 405”, “Rule 415”, “Rule 424”, “Rule 430B” and “Rule 433” refer
to such rules under the Act.
“Trust Indenture Act” shall mean the
Trust Indenture Act of 1939, as amended and the rules and regulations of the
Commission promulgated thereunder.
“Well-Known Seasoned Issuer” shall mean
a well-known seasoned issuer, as defined in Rule 405.
[Signature pages appear on next
page]
32
If the foregoing is in accordance with
your understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this letter and your acceptance shall represent a
binding agreement among the Company, the Selling Noteholders and the several
Underwriters.
Very truly yours, | ||||
THE DOW CHEMICAL COMPANY | ||||
By:
|
/s/ Xxxxxxxx X. Xxxxxxx | |||
Name |
Xxxxxxxx
X. Xxxxxxx
|
|||
Title | Executive Vice President and Chief Financial Officer |
XXXXXXX
& CO. INC., ON BEHALF OF THE
SEVERAL
FUNDS AND ACCOUNTS
MANAGED
BY IT,
|
||||
By:
|
/s/ Xxxxxxx Xxxxxxx | |||
Name |
Xxxxxxx
Xxxxxxx
|
|||
Title | Senior Vice President |
Signature page to Debt Underwriting
Agreement
THE
FIRST 1945 TRUST
THE
SECOND 1945 TRUST
THE
1955 TRUST
THE
1956 TRUST
|
|||
By:
|
|||
/s/ Xxxx X. Xxxx | |||
Name:
|
Xxxx
X. Xxxx
|
||
Title:
|
Trustee
|
/s/ Xxxx Xxxx Xxxx | |||
Name:
|
Xxxx
Xxxx Xxxx
|
||
Title:
|
Trustee
|
/s/
Xxxxxx Xxxxxxxx Xxxx
|
|||
Name:
|
Xxxxxx
Xxxxxxxx Xxxx
|
||
Title:
|
Trustee
|
/s/
Xxxxxxx Xxxxx Xxxx
|
|||
Name:
|
Xxxxxxx
Xxxxx Xxxx
|
||
Title:
|
Trustee
|
WACHOVIA
BANK, N.A.,
|
||||
as Trustee | ||||
By:
|
/s/ Xxxxx X. Xxxxx | |||
Name: | Xxxxx X. Xxxxx | |||
Title: | S.V.P. |
Signature page to Debt Underwriting
Agreement
1961
TRUST A
|
|||
By:
|
|||
/s/
Xxxxxx Xxxx Gravagno
|
|||
Name:
|
Xxxxxx
Xxxx Xxxxxxxx
|
||
Title:
|
Trustee
|
/s/
Xxxx Xxxx Xxxx
|
|||
Name:
|
Xxxx
Xxxx Xxxx
|
||
Title:
|
Trustee
|
/s/
Xxxxxx Xxxxxxxx Xxxx
|
|||
Name:
|
Xxxxxx
Xxxxxxxx Xxxx
|
||
Title:
|
Trustee
|
/s/
Xxxxxxx Xxxxx Xxxx
|
|||
Name:
|
Xxxxxxx
Xxxxx Xxxx
|
||
Title:
|
Trustee
|
1961
TRUST B
|
|||
By:
|
|||
/s/
Xxxx X. Xxxx
|
|||
Name:
|
Xxxx
X. Xxxx
|
||
Title:
|
Trustee
|
/s/
Xxxxx X. Xxxx
|
|||
Name:
|
Xxxxx
X. Xxxx
|
||
Title:
|
Trustee
|
/s/
Xxxxxxx X. Xxxx
|
|||
Name:
|
Xxxxxxx
X. Xxxx
|
||
Title:
|
Trustee
|
/s/
Xxxxxxxxx X. Xxxx
|
|||
Name:
|
Xxxxxxxxx
X. Xxxx
|
||
Title:
|
Trustee
|
Signature page to Debt Underwriting
Agreement
The
foregoing Agreement is hereby confirmed
and
accepted as of the date first written above.
|
|||
BANC
OF AMERICA SECURITIES LLC
CITIGROUP
GLOBAL MARKETS INC.
HSBC
SECURITIES (USA) INC.
XXXXXX
XXXXXXX & CO. INCORPORATED
|
|||
BY:
BANC OF AMERICA SECURITIES LLC
|
|||
By:
|
/s/ Xxx X. Xxxxx | ||
Name:
Xxx
X. Xxxxx
|
|||
Title:
Managing
Director
|
BY:
CITIGROUP GLOBAL MARKETS INC.
|
|||
By:
|
/s/ Xxxx
X. XxXxxxxxx, Xx.
|
||
Name:
Xxxx X. XxXxxxxxx, Xx.
|
|||
Title:
Managing Director
|
BY:
HSBC SECURITIES (USA) INC.
|
|||
By:
|
/s/ Xxxxxxx X. Xxxxxx | ||
Name:
Xxxxxxx
X. Xxxxxx
|
|||
Title:
Vice President
|
BY:
XXXXXX XXXXXXX & CO. INCORPORATED
|
|||
By:
|
/s/ Yurij Slyz | ||
Name:
Yurij
Slyz
|
|||
Title:
Vice President
|
|||
For
themselves and the other several Underwriters
named
in Schedule I hereto.
|
SCHEDULE
I
UNDERWRITERS
Column
B
|
Column
C
|
Column
D
|
||||||||||
Underwriters
|
Principal
Amount
of
Securities due
2014
to be
Purchased
|
Principal
Amount
of
Securities due
2019
to be
Purchased
|
Principal
Amount
of
Securities due
2039
to be
Purchased
|
|||||||||
Banc
of America Securities LLC
|
$ | 294,291,000 | $ | 546,542,000 | $ | 168,167,000 | ||||||
Citigroup
Global Markets Inc.
|
294,292,000 | 546,541,000 | 168,167,000 | |||||||||
Xxxxxx
Xxxxxxx & Co. Incorporated
|
294,292,000 | 546,542,000 | 168,166,000 | |||||||||
HSBC
Securities (USA) Inc.
|
197,750,000 | 367,250,000 | 113,000,000 | |||||||||
Mizuho
Securities USA Inc.
|
126,875,000 | 235,625,000 | 72,500,000 | |||||||||
RBS Securities
Inc.
|
126,875,000 | 235,625,000 | 72,500,000 | |||||||||
Barclays Capital
Inc.
|
126,875,000 | 235,625,000 | 72,500,000 | |||||||||
Deutsche Bank Securities
Inc.
|
126,875,000 | 235,625,000 | 72,500,000 | |||||||||
Mitsubishi
UFJ Securities (USA), Inc.
|
126,875,000 | 235,625,000 | 72,500,000 | |||||||||
Xxxxxxxx Xxxxxx Van,
LLC
|
8,750,000 | 16,250,000 | 5,000,000 | |||||||||
Loop Capital Markets,
LLC
|
8,750,000 | 16,250,000 | 5,000,000 | |||||||||
Xxxxxxxx Capital Group,
LLC
|
8,750,000 | 16,250,000 | 5,000,000 | |||||||||
The Xxxxxxxx Capital Group,
L.P.
|
8,750,000 | 16,250,000 | 5,000,000 | |||||||||
Total
|
$ | 1,750,000,000 | $ | 3,250,000,000 | $ | 1,000,000,000 |
Sch. I -
1
SCHEDULE
II
SELLING
NOTEHOLDERS
Column
A
|
Column
B
|
|||
Name
of Selling Noteholder
|
Number
of Preferred
Securities
Owned
|
Principal
Amount of
Securities
due 2019
to
be Sold
|
||
Xxxxxxx
Advantage Master LTD
|
141,752
|
$108,310,000
|
||
Xxxxxxx
Advantage Plus Master LTD
|
400,686
|
$306,154,000
|
||
Xxxxxxx
Advantage Select Master Fund Ltd
|
3,203
|
$2,448,000
|
||
Xxxxxxx
Credit Opportunities Master Limited
|
250,000
|
$256,572,000
|
||
Address
for Communications for the Selling Noteholders listed
above
(collectively, the "Xxxxxxx Selling Noteholders"):
Xxxxxxx
& Co. Inc.
0000
Xxxxxx xx xxx Xxxxxxxx
00xx
Xxxxx
Xxx
Xxxx, XX 00000
Attn: Xxxxxxx
Xxxxxxx
Tel: (000)
000-0000
Fax:
(000) 000-0000
|
||||
THE
FIRST 1945 TRUST
Address
for Communications:
Xxxx
Trust Xxxxxx
0000
Xxxx Xx., 00xx Xxxxx
Xxxxxxxxxxxx,
XX 00000
Attn:
Xx. Xxxxx Xxxx,
Executive Trust Advisor
Tel:
(000) 000-0000
Fax:
(000) 000-0000
Wachovia
Bank, N.A., as Trustee
Calibre
0000
Xxxxxx Xxxxxx, XX 0000
Xxxxxxxxxxxx,
XX 00000
Attn:
Xxxxx Xxxxx and
Xxxx Xxxxxx
Tel: (000)
000-0000
Fax: (000)
000-0000
|
28,563
|
$24,178,000
|
||
THE
SECOND 1945 TRUST
Address
for Communications:
Xxxx
Trust Xxxxxx
0000
Xxxx Xx., 00xx Xxxxx
Xxxxxxxxxxxx,
XX 00000
|
336,317
|
$284,682,000
|
Sch. II -
1
Column
A
|
Column
B
|
|||
Name
of Selling Noteholder
|
Number
of Preferred
Securities
Owned
|
Principal
Amount of
Securities
due 2019
to
be Sold
|
Attn:
Xx. Xxxxx Xxxx,
Executive Trust Advisor
Tel:
(000) 000-0000
Fax: (000)
000-0000
Wachovia
Bank, N.A., as Trustee
Calibre
0000
Xxxxxx Xxxxxx, XX 0000
Xxxxxxxxxxxx,
XX 00000
Attn:
Xxxxx Xxxxx and
Xxxx Xxxxxx
Tel: (000)
000-0000
Fax: (000)
000-0000
(000) 000-0000
|
||||
THE
1955 TRUST
Address
for Communications:
Xxxx
Trust Xxxxxx
0000
Xxxx Xx., 00xx Xxxxx
Xxxxxxxxxxxx,
XX 00000
Attn:
Xx. Xxxxx Xxxx,
Executive
Trust Advisor
Tel: (000)
000-0000
Fax: (000)
000-0000
Wachovia
Bank, N.A., as Trustee
Calibre
0000
Xxxxxx Xxxxxx, XX 0000
Xxxxxxxxxxxx,
XX 00000
Attn:
Xxxxx Xxxxx and
Xxxx Xxxxxx
Tel: (000)
000-0000
Fax: (000)
000-0000
(000) 000-0000
|
72,722
|
$61,558,000
|
||
THE
1956 TRUST
Address
for Communications:
Xxxx
Trust Xxxxxx
0000
Xxxx Xx., 00xx Xxxxx
Xxxxxxxxxxxx,
XX 00000
Attn:
Xx. Xxxxx Xxxx,
Executive Trust Advisor
Tel:
(000) 000-0000
Fax: (000)
000-0000
Wachovia
Bank, N.A., as Trustee
Calibre
|
270,837
|
$229,254,000
|
Sch. II -
2
Column
A
|
Column
B
|
|||
Name
of Selling Noteholder
|
Number
of Preferred
Securities
Owned
|
Principal
Amount of
Securities
due 2019
to
be Sold
|
0000
Xxxxxx Xxxxxx, XX 0000
Xxxxxxxxxxxx,
XX 00000
Attn: Xxxxx
Xxxxx and
Xxxx
Xxxxxx
Tel: (000)
000-0000
Fax: (000)
000-0000
(000) 000-0000
|
||||
1961
TRUST A
Address
for Communications:
Xxxx
Trust Xxxxxx
0000
Xxxx Xx., 00xx Xxxxx
Xxxxxxxxxxxx,
XX 00000
Attn:
Xx. Xxxxx Xxxx,
Executive
Trust Advisor
Tel:
(000) 000-0000
Fax: (000)
000-0000
|
43,601
|
$36,906,000
|
||
1961
TRUST B
Address
for Communications:
Xxxx
Trust Xxxxxx
0000
Xxxx Xx., 00xx Xxxxx
Xxxxxxxxxxxx,
XX 00000
Attn:
Xx. Xxxxx Xxxx,
Executive Trust Advisor
Tel:
(000) 000-0000
Fax: (000)
000-0000
|
43,601
|
$36,906,000
|
||
Total
|
1,591,282
|
$1,346,968,000
|
Sch. II -
3
SCHEDULE
III
Schedule
of Free Writing Prospectuses included in the Disclosure Package
(exclusive
of the final term sheet prepared and filed pursuant to Section
5(a)(ii))
None
Sch. III
- 1
SCHEDULE
IV
Filed
Pursuant to Rule 433
Registration
Statement No. 333-140859
Supplementing the Preliminary
Prospectus
Supplement dated May 6,
2009
(To Prospectus dated February 23,
2007)
$6,000,000,000
The
Dow Chemical Company
$1,750,000,000
7.60% Notes Due 2014
$3,250,000,000
8.55% Notes Due 2019
$1,000,000,000
9.40% Notes Due 2039
Final
Term Sheet
May 7,
2009
7.60%
Notes Due 2014
Issuer:
|
The
Dow Chemical Company
|
Title
of Securities:
|
Senior
Unsecured Notes
|
Aggregate
Principal Amount
Offered:
|
$1,750,000,000
(All of which are offered by the Issuer)
|
Maturity
Date:
|
May
15, 2014
|
Trade
Date:
|
May
7, 2009
|
Settlement
Date (T+4):
|
May
13, 2009
|
Coupon
(Interest Rate):
|
7.60%
per annum
|
Price
to Public (Issue Price):
|
99.688%
of principal amount
|
Yield
to Maturity:
|
7.676%
|
Benchmark
Treasury:
|
UST
1.875% due April 30, 2014
|
Benchmark
Treasury Price
and
Yield:
|
98-18
3/4;
2.176%
|
Sch. IV -
1
Spread
to Benchmark
Treasury:
|
5.50%
(550 basis points)
|
Interest
Payment Dates:
|
Semi-annually
on May 15 and November 15, beginning on November 15,
2009.
|
Day
Count Convention:
|
30/360
|
Optional
Redemption:
|
The
Notes will be redeemable at the Issuer’s option at any time, in whole or
in part, at a redemption price equal to (A) the greater of (i) 100% of the
principal amount of such Notes and (ii) the sum of the present values of
remaining scheduled payments of principal and interest (exclusive of
interest accrued to the date of redemption) on such Notes discounted to
the redemption date on a semi-annual basis at the Treasury rate plus 0.50%
(50 basis points), plus (B) accrued interest to the redemption
date.
|
Change
of Control:
|
If
a change of control triggering event occurs, the Issuer will be required,
subject to certain conditions, to make an offer to repurchase the Notes at
a price equal to 101% of the principal amount of the Notes, plus accrued
and unpaid interest to the date of repurchase (all as described in the
Issuer’s Preliminary Prospectus Supplement dated May 6, 2009 relating to
the Notes).
|
CUSIP
Number:
|
260543
BW 2
|
Denominations:
|
$2,000
x $1,000
|
Joint
Book-Running
Managers:
|
Banc
of America Securities LLC
Citigroup
Global Markets Inc.
HSBC
Securities (USA) Inc.
Xxxxxx
Xxxxxxx & Co. Incorporated
Mizuho
Securities USA Inc.
|
Senior
Co-Managers:
|
Barclays Capital
Inc.
Deutsche Bank Securities
Inc.
Mitsubishi
UFJ Securities (USA), Inc.
RBS Securities
Inc.
|
Co-Managers:
|
Xxxxxxxx Xxxxxx Van,
LLC
Loop Capital Markets,
LLC
Xxxxxxxx Capital Group,
LLC
The Xxxxxxxx Capital Group,
L.P.
|
Type
of Offering:
|
SEC
registered (No. 333-140859)
|
Sch. IV -
2
Listing:
|
None
|
Long-term
Debt Ratings:
|
Xxxxx’x:
Baa3 (Negative Outlook); S&P, BBB- (Negative Outlook); Fitch: BBB
(Negative Outlook)
|
8.55%
Notes Due 2019
Issuer:
|
The
Dow Chemical Company
|
Title
of Securities:
|
Senior
Unsecured Notes
|
Aggregate
Principal Amount
Offered:
|
$3,250,000,000
|
Aggregate
Principal Amount
Offered
by Dow:
|
$1,903,032,000 See
"Other Offerings" below.
|
Aggregate
Principal Amount
Offered
by Selling
Noteholders:
|
$1,346,968,000 See
"Other Offerings" below.
|
Maturity
Date:
|
May
15, 2019
|
Trade
Date:
|
May
7, 2009
|
Settlement
Date (T+4):
|
May
13, 2009
|
Coupon
(Interest Rate):
|
8.55%
per annum
|
Price
to Public (Issue Price):
|
99.794%
of principal amount
|
Yield
to Maturity:
|
8.581%
|
Benchmark
Treasury:
|
UST
2.750% due February 15, 2019
|
Benchmark
Treasury Price
and
Yield:
|
95-06;
3.331%
|
Spread
to Benchmark
Treasury:
|
5.25%
(525 basis points)
|
Interest
Payment Dates:
|
Semi-annually
on May 15 and November 15, beginning on November 15,
2009.
|
Day
Count Convention:
|
30/360
|
Sch. IV -
3
Optional
Redemption:
|
The
Notes will be redeemable at the Issuer’s option at any time, in whole or
in part, at a redemption price equal to (A) the greater of (i) 100% of the
principal amount of such Notes and (ii) the sum of the present values of
remaining scheduled payments of principal and interest (exclusive of
interest accrued to the date of redemption) on such Notes discounted to
the redemption date on a semi-annual basis at the Treasury rate plus 0.50%
(50 basis points), plus (B) accrued interest to the redemption
date.
|
Change
of Control:
|
If
a change of control triggering event occurs, the Issuer will be required,
subject to certain conditions, to make an offer to repurchase the Notes at
a price equal to 101% of the principal amount of the Notes, plus accrued
and unpaid interest to the date of repurchase (all as described in the
Issuer’s Preliminary Prospectus Supplement dated May 6, 2009 relating to
the Notes).
|
CUSIP
Number:
|
260543
BX 0
|
Denominations:
|
$2,000
x $1,000
|
Joint
Book-Running
Managers:
|
Banc
of America Securities LLC
Citigroup
Global Markets Inc.
HSBC
Securities (USA) Inc.
Xxxxxx
Xxxxxxx & Co. Incorporated
RBS Securities
Inc.
|
Senior
Co-Managers:
|
Barclays Capital
Inc.
Deutsche Bank Securities
Inc.
Mitsubishi
UFJ Securities (USA), Inc.
Mizuho
Securities USA Inc.
|
Co-Managers:
|
Xxxxxxxx Xxxxxx Van,
LLC
Loop Capital Markets,
LLC
Xxxxxxxx Capital Group,
LLC
The Xxxxxxxx Capital Group,
L.P.
|
Type
of Offering:
|
SEC
registered (No. 333-140859)
|
Listing:
|
None
|
Long-term
Debt Ratings:
|
Moody’s:
Baa3 (Negative Outlook); S&P, BBB- (Negative Outlook); Fitch: BBB
(Negative Outlook)
|
Sch. IV -
4
9.40%
Notes Due 2039
Issuer:
|
The
Dow Chemical Company
|
Title
of Securities:
|
Senior
Unsecured Notes
|
Aggregate
Principal Amount
Offered:
|
$1,000,000,000 (All
of which are offered by the Issuer)
|
Maturity
Date:
|
May
15, 2039
|
Trade
Date:
|
May
7, 2009
|
Settlement
Date (T+4):
|
May
13, 2009
|
Coupon
(Interest Rate):
|
9.40%
per annum
|
Price
to Public (Issue Price):
|
99.562%
of principal amount
|
Yield
to Maturity:
|
9.444%
|
Benchmark
Treasury:
|
UST
4.500% Notes due May 15, 2038
|
Benchmark
Treasury Price
and
Yield:
|
102-31;
4.319%
|
Spread
to Benchmark Treasury:
|
5.125%
(512.5 basis points)
|
Interest
Payment Dates:
|
Semi-annually
on May 15 and November 15, beginning on November 15,
2009.
|
Day
Count Convention:
|
30/360
|
Optional
Redemption:
|
The
Notes will be redeemable at the Issuer’s option at any time, in whole or
in part, at a redemption price equal to (A) the greater of (i) 100% of the
principal amount of such Notes and (ii) the sum of the present values of
remaining scheduled payments of principal and interest (exclusive of
interest accrued to the date of redemption) on such Notes discounted to
the redemption date on a semi-annual basis at the Treasury rate plus 0.50%
(50 basis points), plus (B) accrued interest to the redemption
date.
|
Change
of Control:
|
If
a change of control triggering event occurs, the Issuer will be required,
subject to certain conditions, to make an offer to repurchase the Notes at
a price equal to 101% of the principal amount of the Notes, plus accrued
and unpaid interest to the
|
Sch. IV -
5
date
of repurchase (all as described in the Issuer’s Preliminary Prospectus
Supplement dated May 6, 2009 relating to the Notes).
|
|
CUSIP
Number:
|
260543
BY 8
|
Denominations:
|
$2,000
x $1,000
|
Joint
Book-Running
Managers:
|
Banc
of America Securities LLC
Citigroup
Global Markets Inc.
HSBC
Securities (USA) Inc.
Xxxxxx
Xxxxxxx & Co. Incorporated
|
Senior
Co-Managers:
|
Barclays Capital
Inc.
Deutsche Bank Securities
Inc.
Mitsubishi
UFJ Securities (USA), Inc.
Mizuho
Securities USA Inc.
RBS Securities
Inc.
|
Co-Managers:
|
Xxxxxxxx Xxxxxx Van,
LLC
Loop Capital Markets,
LLC
Xxxxxxxx Capital Group,
LLC
The Xxxxxxxx Capital Group,
L.P.
|
Type
of Offering:
|
SEC
registered (No. 333-140859)
|
Listing:
|
None
|
Long-term
Debt Ratings:
|
Moody’s:
Baa3 (Negative Outlook); S&P: BBB- (Negative Outlook); Fitch: BBB
(Negative Outlook)
|
Note: A
securities rating is not a recommendation to buy, sell or hold securities and
may be subject to revision or withdrawal at any time
Use
of Proceeds
Dow intends to use the net proceeds
from this offering in the amount of approximately $4.65 billion (i) to repay a
portion of its borrowings under its term loan agreement and (ii) for
refinancings, renewals, replacements and refundings of outstanding
indebtedness.
Other
Offerings
On May 6, 2009, the Company priced a
public offering (the "Equity Offering") of 130,434,783 shares of its common
stock, par value $2.50 per share, 66,666,683 of which are being sold by the
Company and 63,768,100 of which are being sold by selling
stockholders. The consummation of this debt offering is not
conditioned upon the consummation of the Equity Offering and vice versa, but the
consummation of this debt offering by the selling noteholders is conditioned
upon the consummation of the Equity Offering by the Company. In the
event the
Sch. IV -
6
Company
does not consummate the Equity Offering, the Company will issue and sell all of
the Notes described above.
If the
Company consummates the Equity Offering, including the full exercise
of the underwriters’ option to purchase additional shares to cover
over-allotments, no shares of Cumulative Perpetual Preferred Stock, Series B
would remain outstanding.
Purchase
of Notes by Selling Noteholders
Certain
affiliates of the Xxxxxxx Selling Noteholders will be purchasing Notes in this
offering.
The
issuer has filed a registration statement (including a prospectus) with the SEC
for the offering to which this communication relates. Before you
invest, you should read the prospectus in that registration statement and other
documents the issuer has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free by
visiting IDEA on the SEC Web site at xxx.xxx.xxx. Alternatively, the
issuer, any underwriter or any dealer participating in the offering will arrange
to send you the prospectus if you request it by calling Banc of America
Securities LLC toll-free at 1-800-294-1322, Citigroup Global Markets Inc. toll
free at 1-877-858-5407, HSBC Securities (USA) Inc., toll-free at 0-000-000-0000,
Xxxxxx Xxxxxxx & Co. Incorporated toll free at 1-866-718-1649, Mizuho
Securities USA Inc. toll free at 0-000-000-0000 (ext. 3143) or RBS Securities
Inc. toll-free at 0-000-000-0000.
Sch. IV -
7
Exhibit
A
Form of
Opinion of Internal Counsel to the Xxxxxxx Selling Noteholders
1. The
Underwriting Agreement has been authorized, executed and delivered by or on
behalf of each of the Selling Noteholders and each Selling Noteholder has full
legal right and authority to sell, transfer and deliver in the manner provided
in the Underwriting Agreement the Securities being sold by such Selling
Noteholder hereunder.
2. The
sale of the Securities by each Selling Noteholder and the consummation by each
Selling Noteholder of the transactions contemplated in the Underwriting
Agreement will not (a) violate the certificate of limited partnership or
partnership agreement (or comparable governing documents) of any of the Selling
Noteholders, (b) result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture or other agreement or instrument known
to me to which such Selling Noteholder is a party or by which such Selling
Noteholder is bound, or (c) violate any judgment, order or decree known to me of
any U.S. federal or New York State court or governmental agency or body having
jurisdiction over such Selling Noteholder, except, in the case of clauses (b)
and (c) only, for such breaches, violations or defaults that would not
materially adversely affect the ability of such Selling Noteholder to perform
its obligations under the Underwriting Agreement.
Form of
Opinion of External Counsel to the Xxxxxxx Selling Noteholders
1. The
sale of the Securities by each Selling Noteholder and the consummation by each
Selling Noteholder of the transactions contemplated in the Underwriting
Agreement will not violate any U.S. federal or New York State statute, rule or
regulation (no opinion being given hereby as to any federal or state securities
or antifraud statutes, rules or regulations).
2. No
consent, approval, authorization or order of any U.S. federal or New York State
court or governmental agency or body is required to be obtained or made by any
of the Selling Noteholders for the consummation of the transactions contemplated
by the Underwriting Agreement in connection with the sale of the Securities to
be sold by the Selling Noteholders, except such as have been obtained and made
under the Act and the Trust Indenture Act and such as may be required under
state or foreign securities or blue sky laws in connection with the purchase and
distribution of such Securities by the Underwriters.
3. Upon
(i) payment for the Securities to be sold by the Selling Noteholders as provided
in the Underwriting Agreement, (ii) delivery of certificates representing such
Securities, as directed by the Underwriters, to Cede & Co. (“Cede”) or such
other nominee as may be designated by DTC, (iii) registration of such Securities
in the name of Cede or such other nominee by the issuer of such Securities and
(iv) DTC indicating by book entry on its records that such Securities have been
credited to securities accounts of the Underwriters, (A) under Section 8-501 of
the NYUCC, the Underwriters will acquire a security entitlement in respect of
such Securities, and (B) under Section 8-502 of the NYUCC, no action based on
any “adverse claim” (as defined in Section 8-102 of the NYUCC) to such
Securities may be asserted against the Underwriters with respect to such
security entitlement (having assumed for purposes of our
Ex. A -
1
opinions
in this paragraph 3 that when such payment, delivery, registration and crediting
occur, (x) such Securities will have been registered in the name of Cede or
another nominee designated by DTC, in each case on the Company’s share registry
in accordance with its certificate of incorporation, by-laws and applicable law,
(y) DTC will be a “clearing corporation” within the meaning of Section 8-102 of
the NYUCC and (z) none of the DTC or the Underwriters have “notice of an adverse
claim” (as defined in Section 8-105 of the NYUCC) to the
Securities).
Form of
Opinion of Dechert LLP on behalf of The First 1945 Trust, The Second 1945 Trust,
The
1955
Trust, The 1956 Trust, 1961 Trust A and 1961 Trust B
1. This
Agreement has been duly authorized, executed and delivered by the Selling
Noteholders and each Selling Noteholder has full legal right and authority to
sell, transfer and deliver in the manner provided in this Agreement the
Securities being sold by such Selling Noteholder hereunder.
2. The
Purchase Agreement has been duly authorized, executed and delivered by the
Selling Noteholders and (assuming the due authorization, execution and delivery
by the Company) constitutes the valid and legally binding obligation of the
Selling Noteholders enforceable in accordance with its terms except as the same
may be limited by bankruptcy, insolvency, reorganization or other laws of
general applicability relating to or affecting the enforcement of creditors’
rights and to general equity principles.
3. Upon payment for the Securities to be
sold by each Selling Noteholder pursuant to this Agreement, delivery of such
Securities, as directed by the Underwriters, to The Depository Trust Company
("DTC") or to such other nominee as may be designated by DTC, registration of
such Securities in the name of DTC or such other nominee and the crediting of
such Securities on the books of DTC to securities accounts of the Underwriters
(assuming that neither DTC nor any such Underwriter has notice of any adverse
claim within the meaning of Section 8-105 of the NYUCC to such Securities), (A)
under Section 8-501 of the NYUCC, the Underwriters will acquire a security
entitlement in respect of such Securities and (B) no action based on any
“adverse claim” (within the meaning of Section 8-102 and Section 8-105 of the
NYUCC) to such Securities may be asserted against the Underwriters with respect
to such security entitlement.
4. To
such counsel's knowledge, no consent, approval, authorization or order of any
court or governmental agency or body is required for the consummation by any
Selling Noteholder of the transactions contemplated herein, except such as may
have been obtained under the Act and the Trust Indenture Act and such as may be
required under the blue sky laws of any jurisdiction in connection with the
purchase and distribution of the Securities by the Underwriters and such other
approvals (specified in such opinion) as have been obtained.
5. To
such counsel's knowledge, neither the sale of the Securities being sold by any
Selling Noteholder nor the consummation of any other of the transactions herein
contemplated by any Selling Noteholder or the fulfillment of the terms hereof by
any Selling Noteholder will result
in a breach or violation of any of the terms and provisions of, or constitute a
default under,
Ex. A -
2
(i) any statute, rule, regulation,
judgment, decree or order known to
us to be applicable to any Selling Noteholder of any governmental agency or body
or any court having jurisdiction over any Selling Noteholder or (ii) the
constituent documents of any Selling Noteholder.
Ex.
A - 3