35,750,000 Shares FERRO CORPORATION Common Stock UNDERWRITING AGREEMENT (this “Agreement”)
Exhibit 1.1
Execution Version
35,750,000 Shares
FERRO CORPORATION
Common Stock
UNDERWRITING AGREEMENT
(this “Agreement”)
(this “Agreement”)
November 2, 2009
Credit Suisse Securities (USA) LLC
X.X. Xxxxxx Securities Inc.
As representatives of the several underwriters (the “Representatives”)
c/o Credit Suisse Securities (USA) LLC,
Eleven Madison Avenue
New York, N.Y. 10010-3629
X.X. Xxxxxx Securities Inc.
As representatives of the several underwriters (the “Representatives”)
c/o Credit Suisse Securities (USA) LLC,
Eleven Madison Avenue
New York, N.Y. 10010-3629
Ladies and Gentlemen:
1. Introductory. Ferro Corporation, an Ohio corporation (“Company”), agrees with the several
Underwriters named in Schedule A hereto (“Underwriters”) to issue and sell to the several
Underwriters 35,750,000 shares (“Firm Securities”) of its common stock, par value $1.00 per share
(the “Securities”), and also agrees to issue and sell to the Underwriters, at the option of the
Underwriters, an aggregate of not more than 5,362,500 additional shares (“Optional Securities”) of
its Securities as set forth below. The Firm Securities and the Optional Securities are herein
collectively called the “Offered Securities.”
2. Representations and Warranties of the Company. The Company represents and warrants to,
and agrees with, the several Underwriters that:
(a) Filing and Effectiveness of Registration Statement; Certain Defined Terms. The
Company has filed with the Commission a registration statement on Form S-3 (No. 333-161136),
including a related prospectus or prospectuses, covering the registration of the Offered
Securities under the Act, which has become effective. “Registration Statement” at any
particular time means such registration statement in the form then filed with the
Commission, including any amendment thereto, any document incorporated by reference therein
and all 430B Information and all 430C Information with respect to such registration
statement, that in any case has not been superseded or modified. “Registration Statement”
without reference to a time means the Registration Statement as of the Effective Time. For
purposes of this definition, 430B Information shall be considered to be included in the
Registration Statement as of the time specified in Rule 430B.
For purposes of this Agreement:
“430B Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430B(e) or retroactively deemed to be a part
of the Registration Statement pursuant to Rule 430B(f).
“430C Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430C.
“Act” means the Securities Act of 1933, as amended.
“Applicable Time” means 7:00 p.m. (Eastern time) on the date of this Agreement.
“Closing Date” has the meaning defined in Section 3 hereof.
“Commission” means the Securities and Exchange Commission.
“Effective Time” of the Registration Statement relating to the Offered Securities means
the time of the first contract of sale for the Offered Securities.
“Exchange Act” means the Securities Exchange Act of 1934.
“Final Prospectus” means the Statutory Prospectus that discloses the public offering
price, other 430B Information and other final terms of the Offered Securities and otherwise
satisfies Section 10(a) of the Act.
“General Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is intended for general distribution to prospective investors, as evidenced by its
being so specified in Schedule C to this Agreement.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined
in Rule 433, relating to the Offered Securities in the form filed or required to
be filed with the Commission or, if not required to be filed, in the form retained in the
Company’s records pursuant to Rule 433(g).
“Limited Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not a General Use Issuer Free Writing Prospectus; provided, however, that if an
Issuer Free Writing Prospectus is not prepared by or on behalf of the Company and not
authorized by the Company or used or referred to by the Company, it will not constitute a
Limited Use Issuer Free Writing Prospectus.
“Rules and Regulations” means the rules and regulations of the Commission.
“Securities Laws” means, collectively, the Xxxxxxxx-Xxxxx Act of 2002
(“Xxxxxxxx-Xxxxx”), the Act, the Exchange Act, the Rules and Regulations, the auditing
principles, rules, standards and practices applicable to auditors of “issuers” (as defined
in Xxxxxxxx-Xxxxx) promulgated or approved by the Public Company Accounting Oversight Board
and, as applicable, the rules of the New York Stock Exchange and the NASDAQ Stock Market
(“Exchange Rules”).
“Statutory Prospectus” with reference to any particular time means the prospectus
relating to the Offered Securities that is included in the Registration Statement
immediately prior to that time, including all 430B Information and all 430C Information with
respect to the Registration Statement. For purposes of the foregoing definition, 430B
Information shall be considered to be included in the Statutory Prospectus only as of the
actual time that form of prospectus (including a prospectus supplement) is filed with the
Commission pursuant to Rule 424(b) and not retroactively.
Unless otherwise specified, a reference to a “rule” is to the indicated rule under the
Act.
(b) Compliance with Securities Act Requirements. (i) (A) At the time the
Registration Statement initially became effective, (B) at the time of each amendment thereto
for the purposes of complying with Section 10(a)(3) of the Act (whether by post-effective
amendment, incorporated report or form of prospectus), (C) at the Effective Time relating to
the Offered Securities and (D) on the Closing Date, the Registration Statement conformed and
will conform in all material respects to the requirements of the Act and the Rules and
Regulations and did not and will not include any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading and (ii) (A) on its date, (B) at the time of filing the Final
Prospectus pursuant to Rule 424(b) and (C) on the Closing Date, the Final Prospectus will
conform in all material respects to the requirements of the Act and the Rules and
Regulations, and will not include any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein
not misleading. The preceding sentence does not apply to statements in or omissions from
any such document based upon 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 is that described as such in Section 8(b) hereof.
(c) Shelf Registration Statement. The date of this Agreement is not more than three
years subsequent to the initial effective time of the Registration Statement. If,
immediately prior to the third anniversary of initial effective time of the Registration
Statement, any of the Offered Securities remain unsold by the
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Underwriters, the Company will prior to that third anniversary file, if it has not
already done so, a new shelf registration statement relating to the Offered Securities, in a
form reasonably satisfactory to the Representatives, will use their commercially reasonable
efforts to cause such registration statement to be declared effective within 180 days after
that third anniversary, and will take all other action necessary or appropriate to permit
the public offering and sale of the Offered Securities to continue as contemplated in the
expired registration statement relating to the Offered Securities. References herein to the
Registration Statement shall include such new shelf registration statement.
(d) Ineligible Issuer Status. (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 Offered Securities and (ii) at the date
hereof, the Company was not and is not an “ineligible issuer,” as defined in Rule 405,
including (x) the Company or any other subsidiary in the preceding three years not having
been convicted of a felony or misdemeanor or having been made the subject of a judicial or
administrative decree or order as described in Rule 405 and (y) the Company in the preceding
three years not having been the subject of a bankruptcy petition or insolvency or similar
proceeding, not having had a registration statement be the subject of a proceeding under
Section 8 of the Act and not being the subject of a proceeding under Section 8A of the Act
in connection with the offering of the Offered Securities, all as described in Rule 405.
(e) General Disclosure Package. As of the Applicable Time, neither (i) the General Use
Issuer Free Writing Prospectus(es) issued at or prior to the Applicable Time, the
preliminary prospectus supplement, dated October 27, 2009, including the base prospectus,
dated September 29, 2009, (which is the most recent Statutory Prospectus distributed to
investors generally), and the other information, if any, stated in Schedule C to this
Agreement to be included in the General Disclosure Package, all considered together
(collectively, the “General Disclosure Package”), nor (ii) any individual Limited Use Issuer
Free Writing Prospectus, when considered together with the General Disclosure Package,
included any untrue statement of a material fact or omitted 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 any Statutory Prospectus or any Issuer Free Writing Prospectus in
reliance 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 is that described as such in Section 8(b) hereof.
(f) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the public offer and sale
of the Offered Securities or until any earlier date that the Company notified or notifies
the Representatives as described in the next sentence, did not, does not and will not
include any information that conflicted, conflicts or will conflict with the information
then contained in the Registration Statement. 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 then contained in the Registration Statement or as a result of which such Issuer
Free Writing Prospectus, if republished immediately following such event or development,
would include an untrue statement of a material fact or omitted or would 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, (i) the Company has promptly
notified or will promptly notify the Representatives and (ii) the Company has promptly
amended or will promptly amend or supplement such Issuer Free Writing Prospectus to
eliminate or correct such conflict, untrue statement or omission.
(g) Good Standing of the Company. The Company has been duly incorporated and is
existing and in good standing under the laws of the State of Ohio, with corporate power and
authority (corporate and other) to own its properties and conduct its business as described
in the General Disclosure Package and Final Prospectus; and the Company is duly qualified to
do business as a foreign corporation in good standing in all other jurisdictions in which
its ownership or lease of property or the conduct of its business requires such
qualification, except to the extent that the failure to be so qualified or be in good
standing would not, individually or in the aggregate, result in a material adverse effect on
the condition (financial or otherwise),
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results of operations, business, properties or prospects of the Company and its
subsidiaries taken as a whole (“Material Adverse Effect”).
(h) Subsidiaries. Each “Significant Subsidiary” of the Company (as such term is
defined in Rule 1-02 of Regulation S-X) is listed on Schedule B hereto, has been duly
incorporated or organized and is existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, with power and authority (corporate and
other) to own its properties and conduct its business; and each Significant Subsidiary of
the Company is duly qualified to do business as a foreign corporation or organization in
good standing in all other jurisdictions in which its ownership or lease of property or the
conduct of its business requires such qualification, except to the extent that the failure
to be so qualified or be in good standing would not have a Material Adverse Effect; to the
extent applicable, all of the issued and outstanding capital stock of each Significant
Subsidiary of the Company has been duly authorized and validly issued and is fully paid and
nonassessable; and, except as discussed in the General Disclosure Package and Final
Prospectus, the capital stock or other equity interests, as applicable, of each Significant
Subsidiary owned by the Company, directly or through subsidiaries, is owned free from liens,
encumbrances and defects.
(i) Offered Securities. The Offered Securities and all other outstanding shares of
capital stock of the Company have been duly authorized; the authorized equity capitalization
of the Company is as set forth in the General Disclosure Package and Final Prospectus; all
outstanding shares of capital stock of the Company are, and when the Offered Securities have
been delivered and paid for in accordance with this Agreement on each Closing Date, such
Offered Securities will have been, validly issued, fully paid and nonassessable, will
conform, in all material respects, to the information in the General Disclosure Package and
to the description of such Offered Securities contained in the Final Prospectus; the
stockholders of the Company have no preemptive rights with respect to the Securities; and
none of the outstanding shares of capital stock of the Company have been issued in violation
of any preemptive or similar rights of any security holder.
(k) No Finder’s Fee. Except for compensation payable pursuant to (i) that certain
letter agreement dated as of March 19, 2009 between Xxxxxx, Del Genio, Xxxxx & Co., LLC and
the Company and (ii) this Agreement, there are no contracts, agreements or understandings
between the Company and any person that would give rise to a valid claim against the Company
or any Underwriter for a brokerage commission, finder’s fee or other like payment in
connection with this offering.
(l) Registration Rights. Except as disclosed in the General Disclosure Package, there
are no contracts, agreements or understandings between the Company and any person granting
such person the right to require the Company to file a registration statement under the Act
with respect to any securities of the Company owned or to be owned by such person or to
require the Company to include such securities in the securities registered pursuant to a
Registration Statement or in any securities being registered pursuant to any other
registration statement filed by the Company under the Act (collectively, “registration
rights”), and any person to whom the Company has granted registration rights has agreed not
to exercise such rights until after the expiration of the Lock-Up Period referred to in
Section 5 hereof.
(n) Absence of Further Requirements. No consent, approval, authorization, or order of,
or filing or registration with, any person (including any governmental agency or body or any
court) is required for the consummation of the transactions contemplated by this Agreement
in connection with the offering, issuance and sale of the Offered Securities by the Company,
except for the filing of a listing application with the New York Stock Exchange and such as
have been obtained, or made and such as may be required under the Act and the rules and
regulations thereunder, the Exchange Act and the rules and regulations thereunder, the Rules
and Regulations and state securities laws.
(o) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of this Agreement, and the issuance and sale of the Offered
Securities and compliance with the terms and provisions thereof will not result in a breach
or violation of any of the terms and provisions of, or constitute a default or a Debt
Repayment Triggering Event (as defined below) under, or result in the imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any of its
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subsidiaries pursuant to, the charter or by-laws of the Company or any of its
subsidiaries, any statute, rule, regulation or order of any governmental agency or body or
any court, domestic or foreign, having jurisdiction over the Company or any of its
subsidiaries or any of their properties, or any agreement or instrument to which the Company
or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is
bound or to which any of the properties of the Company or any of its subsidiaries is
subject, except for such conflicts, breaches or defaults that, singly, or in the aggregate,
would not reasonably be expected to result in a Material Adverse Effect; a “Debt Repayment
Triggering Event” means any event or condition that gives, or with the giving of notice or
lapse of time would give, the holder of any note, debenture, or other evidence of
indebtedness (or any person acting on such holder’s behalf) the right to require the
repurchase, redemption or repayment of all or a portion of such indebtedness by the Company
or any of its subsidiaries.
(p) Absence of Existing Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is in violation of its respective charter or by-laws or in default (or with the
giving of notice or lapse of time would be in default) under any existing obligation,
agreement, covenant or condition contained in any indenture, loan agreement, mortgage, lease
or other agreement or instrument to which any of them is a party or by which any of them is
bound or to which any of the properties of any of them is subject, except such defaults that
would not, individually or in the aggregate, result in a Material Adverse Effect.
(q) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.
(r) Absence of Labor Dispute. No labor dispute with the employees of the Company or
any of its subsidiaries exists or, to the knowledge of the Company, is imminent that could
have a Material Adverse Effect.
(s) Possession of Intellectual Property. Except as disclosed in the General
Disclosure Package, the Company owns, possesses, licenses or can license or acquire on
reasonable terms, adequate rights to use patents, copyrights, know-how (including trade
secrets and other unpatented and/or unpatentable inventions, proprietary or confidential
information, systems or procedures), trademarks, service marks, trade names and other
intellectual property (collectively, “Intellectual Property”) necessary to carry on the
business now operated by it, except where the failure to own, possess, license or acquire on
reasonable terms any such Intellectual Property would not, singly or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Except as disclosed in the
General Disclosure Package, the Company has not received any written notice and is not
otherwise currently aware of any infringement of, or conflict with, asserted Intellectual
Property rights of any third party, or of any facts or circumstances which would render any
Intellectual Property owned by the Company invalid or inadequate to protect the interests of
the Company therein, in each case where such infringement or conflict (if the subject of any
unfavorable decision, ruling or finding) or invalidity or inadequacy, singly or in the
aggregate, would reasonably be expected to result in a Material Adverse Effect.
(t) Environmental Laws. Except as disclosed in the General Disclosure Package, (a)(i)
neither the Company nor any of its subsidiaries has received notice alleging that the
Company or any of its subsidiaries is in violation of, or otherwise has any liability under,
any federal, state, local or non-U.S. statute, law, rule, regulation, ordinance, code, other
requirement or rule of law (including common law), or decision or order of any domestic or
foreign governmental agency, governmental body or court, relating to pollution, to the use,
handling, transportation, treatment, storage, discharge, disposal or release of Hazardous
Substances, to the protection or restoration of the environment or natural resources
(including biota), to health and safety as such relates to exposure to Hazardous Substances,
to the EU regulatory framework for Registration, Evaluation, Authorisation and Restriction
of Chemicals (REACH) and to natural resource damages (collectively, “Environmental Laws”),
(ii) neither the Company nor any of its subsidiaries owns, operates or leases any real
property contaminated with Hazardous Substances, (iii) neither the Company nor any of its
subsidiaries is conducting or funding any investigation, remediation, remedial action or
monitoring of actual or suspected releases of Hazardous Substances in the environment, (iv)
neither the Company nor any of its subsidiaries has received written notice that it is
liable or allegedly liable for or otherwise has any
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liability related to any release or threatened release of Hazardous Substances,
including at any off-site treatment, storage or disposal site, (v) neither the Company nor
any of its subsidiaries is subject to any judicial or administrative proceeding by any
governmental agency or governmental body or person relating to Environmental Laws or
Hazardous Substances, and (vi) the Company and its subsidiaries have received and are in
compliance with all permits, licenses, authorizations, identification numbers or other
approvals required under applicable Environmental Laws to conduct their respective
businesses, except in each case covered by clauses (i) — (vi) such as would not
individually or in the aggregate have a Material Adverse Effect; and (b) in the ordinary
course of its business, the Company periodically evaluates the effect, including associated
costs and liabilities, of Environmental Laws on the business, properties, results of
operations and financial condition of it and its subsidiaries, and, on the basis of such
evaluation, the Company has reasonably concluded that such Environmental Laws would not,
singly or in the aggregate, be reasonably expected to have a Material Adverse Effect. For
purposes of this subsection “Hazardous Substances” means (A) petroleum and petroleum
products, by-products or breakdown products, radioactive materials, asbestos-containing
materials and polychlorinated biphenyls, and (B) any other chemical, material, waste or
substance defined or regulated as toxic or hazardous or as a pollutant or contaminant under
Environmental Laws.
(u) Accurate Disclosure. The statements in the General Disclosure Package and the
Final Prospectus under the headings “Certain Material United States Federal Income Tax
Considerations,” “Description of Common Stock” and “Risk Factors” insofar as such statements
summarize legal matters, agreements, documents or proceedings discussed therein, are
accurate and fair summaries of such legal matters, agreements, documents or proceedings and
present the information required to be shown.
(v) Absence of Manipulation. The Company has not taken, directly or indirectly, any
action that is designed to or that has constituted or that would reasonably be expected to
cause or result in the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Offered Securities.
(w) Statistical and Market-Related Data. Any third-party statistical and
market-related data included or incorporated by reference in a Registration Statement, a
Statutory Prospectus or the General Disclosure Package and Final Prospectus are based on or
derived from sources that the Company believes to be reliable and accurate.
(x) Internal Controls and Compliance with the Xxxxxxxx-Xxxxx Act. Except as set forth
in the General Disclosure Package, the Company is in compliance in all material respects
with the applicable provisions of Xxxxxxxx-Xxxxx and all applicable Exchange Rules. Except
as set forth in the General Disclosure Package, the Company maintains a system of internal
controls, including, but not limited to, disclosure controls and procedures, internal
controls over accounting matters and financial reporting, an internal audit function and
legal and regulatory compliance controls (collectively, “Internal Controls”) that comply
with the Securities Laws and are sufficient to provide reasonable assurances that (i)
transactions are executed in accordance with management’s general or specific
authorizations, (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 accountability for assets, (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 differences. The Internal Controls are, or
upon consummation of the offering of the Offered Securities will be, overseen by the Audit
Committee (the “Audit Committee”) of the board of directors of the Company (the “Board”) in
accordance with Exchange Rules. Except as set forth in the General Disclosure Package, the
Company has not publicly disclosed or reported to the Audit Committee or the Board, and
within the next 90 days the Company does not reasonably expect to publicly
disclose or report to the Audit Committee or the Board, a significant deficiency, material
weakness, change in Internal Controls or fraud involving management or other employees who
have a significant role in Internal Controls (each, an “Internal Control Event”), any
violation of, or failure to comply with, the Securities Laws, or any matter which, in each
case, if determined adversely, would have a Material Adverse Effect.
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(y) No Change in Internal Controls. Except as disclosed in the General Disclosure
Package and the Final Prospectus, since the date of the latest audited financial statements
included in the General Disclosure Package and the Final Prospectus, there has been no
change in the Company’s internal control over financial reporting that has materially
adversely affected, or is reasonably likely to materially adversely affect, the Company’s
internal control over financial reporting.
(z) Absence of Accounting Issues. To the knowledge of the Chief Executive Officer,
Chief Financial Officer or General Counsel, except as set forth in the General Disclosure
Package, the Audit Committee is not reviewing or investigating, and neither the Company’s
independent auditors nor its internal auditors have recommended that the Audit Committee
review or investigate, (i) adding to, deleting, changing the application of, or changing the
Company’s disclosure with respect to, any of the Company’s material accounting policies;
(ii) any matter which could result in a restatement of the Company’s financial statements
for any annual or interim period during the current or prior three fiscal years; or (iii)
any Internal Control Event except such that would not have a Material Adverse Effect.
(aa) Litigation. Except as disclosed in the General Disclosure Package, there are no
pending actions, suits or proceedings (including any written inquiries or, to the Company’s
knowledge, investigations by any court or governmental agency or body, domestic or foreign)
against or affecting the Company, any of its subsidiaries or any of their respective
properties that, if determined adversely to the Company or any of its subsidiaries, would
individually or in the aggregate have a Material Adverse Effect, or would materially and
adversely affect the ability of the Company to perform its obligations under this Agreement;
and no such actions, suits or proceedings (including any inquiries or investigations by any
court or governmental agency or body, domestic or foreign) are to the Company’s knowledge,
threatened or contemplated.
(bb) Financial Statements. The financial statements included in, or incorporated by
reference into, the Registration Statement, the General Disclosure Package and the Final
Prospectus present fairly the financial position of the Company and its consolidated
subsidiaries as of the dates shown and their results of operations and cash flows for the
periods shown, and except as otherwise disclosed in the Registration Statement or the
General Disclosure Package, such financial statements have been prepared in conformity with
the generally accepted accounting principles in the United States applied on a consistent
basis.
(cc) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the latest audited financial
statements included in, or incorporated by reference into, the General Disclosure Package
and the Final Prospectus (i) there has been no change, nor any development or event
involving a prospective change, in the condition (financial or otherwise), results of
operations, business, properties or prospects of the Company and its subsidiaries, taken as
a whole that is material and adverse, (ii) except as disclosed in or contemplated by the
General Disclosure Package, there has been no dividend or distribution of any kind declared,
paid or made by the Company on any class of its capital stock and (iii) except as disclosed
in or contemplated by the General Disclosure Package, there has been no material adverse
change in the capital stock, short-term indebtedness, long-term indebtedness, net current
assets or net assets of the Company and its subsidiaries
(dd) Investment Company Act. The Company is not and, after giving effect to the
offering and sale of the Offered Securities and the application of the proceeds thereof as
described in the General Disclosure Package and Final Prospectus, will not be required to
register as an “investment company” as defined in the Investment Company Act of 1940 (the
“Investment Company Act”).
(ee) Ratings. No “nationally recognized statistical rating organization” as such term
is defined for purposes of Rule 436(g)(2) (i) has imposed (or has informed the Company that
it is considering imposing) any condition (financial or otherwise) on the Company’s
retaining any rating assigned to the Company or any securities of the Company or (ii) has
indicated to the Company that it is considering any of the actions described in Section
7(c)(ii) hereof.
(ff) Foreign Operations. Neither the Company, nor to the Company’s knowledge, any
director, officer, agent or employee acting on behalf of the Company, has used any corporate
funds during the last
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five years for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; made any unlawful payment to any foreign or domestic
government official or employee from corporate funds; violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment.
(gg) Compliance with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the
“Money Laundering Laws”) and 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 with respect to the Money Laundering Laws is pending or, to the knowledge of
the Company, threatened.
(hh) Compliance with OFAC. None of the Company, any of its subsidiaries or, to the
knowledge of the Company, any director, officer, agent, employee or affiliate of the Company
or any of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the
Company will not, directly or indirectly, use the proceeds of the offering of the Offered
Securities hereunder, or lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other person or entity, for the purpose of financing
the activities of any person currently subject to any U.S. sanctions administered by OFAC.
(ii) Insurance. Each of the Company and its subsidiaries carries or is entitled to the
benefits of insurance, with insurers of recognized financial responsibility, in such amounts
and covering such risks as is generally maintained by similar companies engaged in the same
or similar business, and all such insurance is in full force and effect.
(jj) Absence of Relationships. No relationship, direct or indirect, exists between or
among the Company or any of its affiliates, on the one hand, and any director, officer,
stockholder, customer or supplier of any of them, on the other hand, which is required by
the Act or by regulations promulgated thereunder to be described in the General Disclosure
Package and the Final Prospectus which is not so described or is not described as required.
3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the several Underwriters, and each of the Underwriters agrees, severally and not
jointly, to purchase from the Company, at a purchase price of $5.348 per share, the respective
number of shares of Firm Securities set forth opposite the names of the Underwriters in Schedule A
hereto.
The Company will deliver the Firm Securities to or as instructed by the Representatives for
the accounts of the several Underwriters in a form reasonably acceptable to the Representatives
against payment of the purchase price by the Underwriters in Federal (same day) funds by wire
transfer to an account at a bank designated by the Company and reasonably acceptable to the
Representatives drawn to the order of the Company, at the office of Xxxxxx & Xxxxxxx LLP, 000 Xxxxx
Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx 00000-0000, at 10 A.M., New York time, on November 6, 2009,
or at such other time not later than seven full business days thereafter as the Representatives and
the Company determine, such time being herein referred to as the “First Closing Date.” For
purposes of Rule 15c6-1 under the Securities Exchange Act of 1934, the First Closing Date (if later
than the otherwise applicable settlement date) shall be the settlement date for payment of funds
and delivery of securities for all the Firm Securities sold pursuant to the offering. The Firm
Securities so to be delivered or evidence of their issuance will be made available for checking at
the New York office of Xxxxxx & Xxxxxxx LLP at least 24 hours prior to the First Closing Date.
In addition, upon written notice from the Representatives given to the Company from time to
time not more than 30 days subsequent to the date of the Final Prospectus, the Underwriters may
purchase all or less than all of the Optional Securities at the purchase price per Security to be
paid for the Firm Securities. The Company agrees to sell
8
to the Underwriters the number of shares of Optional Securities specified in such notice and
the Underwriters agree, severally and not jointly, to purchase such Optional Securities. Such
Optional Securities shall be purchased for the account of each Underwriter in the same proportion
as the number of shares of Firm Securities set forth opposite such Underwriter’s name bears to the
total number of shares of Firm Securities (subject to adjustment by the Representatives to
eliminate fractions) and may be purchased by the Underwriters only for the purpose of covering
over-allotments made in connection with the sale of the Firm Securities. No Optional Securities
shall be sold or delivered unless the Firm Securities previously have been, or simultaneously are,
sold and delivered. The right to purchase the Optional Securities or any portion thereof may be
exercised from time to time and to the extent not previously exercised may be surrendered and
terminated at any time upon notice by the Representatives to the Company.
Each time for the delivery of and payment for the Optional Securities, being herein referred
to as an “Optional Closing Date,” which may be the First Closing Date (the First Closing Date and
each Optional Closing Date, if any, being sometimes referred to as a “Closing Date”), shall be
determined by the Representatives but shall be not later than five full business days after written
notice of election to purchase Optional Securities is given. The Company will deliver the Optional
Securities being purchased on each Optional Closing Date to or as instructed by the Representatives
for the accounts of the several Underwriters in a form reasonably acceptable to the Representatives
against payment of the purchase price therefor in Federal (same day) funds by wire transfer to an
account at a bank designated by the Company and reasonably acceptable to the Representatives drawn
to the order of the Company, at the above office of Xxxxxx & Xxxxxxx LLP. The Optional
Securities being purchased on each Optional Closing Date or evidence of their issuance will be made
available for checking at the above office of Xxxxxx & Xxxxxxx LLP at a reasonable time in advance
of such Optional Closing Date.
4. Offering by Underwriters. It is understood that the several Underwriters propose to offer
the Offered Securities for sale to the public as set forth in the Final Prospectus.
5. Certain Agreements of the Company. The Company agrees with the several Underwriters that:
(a) Filing of Prospectuses. The Company has filed or will file each Statutory
Prospectus (including the Final Prospectus) pursuant to and in accordance with Rule
424(b)(2) (or, if applicable and consented to by the Representatives, subparagraph (5)) not
later than the second business day following the earlier of the date it is first used or the
execution and delivery of this Agreement. The Company has complied and will comply with
Rule 433 with respect to the Offered Securities.
(b) Filing of Amendments; Response to Commission Requests. The Company will offer the
Representatives a reasonable opportunity to comment on any amendment or supplement to the
Registration Statement or any Statutory Prospectus prior to its filing; and the Company will
also advise the Representatives promptly of (i) the filing of any such amendment or
supplement, (ii) any request by the Commission or its staff for any amendment to the
Registration Statement, for any supplement to any Statutory Prospectus or for any additional
information, (iii) the institution by the Commission of any stop order proceedings in
respect of the Registration Statement or the threatening of any proceeding for that purpose,
and (iv) the receipt by the Company of any notification with respect to the suspension of
the qualification of the Offered Securities in any jurisdiction or the institution or
threatening of any proceedings for such purpose. The Company will use its best efforts to
prevent the issuance of any such stop order or the suspension of any such qualification and,
if issued, to obtain as soon as possible the withdrawal thereof.
(c) Continued Compliance with Securities Laws. If, at any time when a prospectus
relating to the Offered Securities is (or but for the exemption in Rule 172 would be)
required to be delivered under the Act by any Underwriter or dealer, any event occurs as a
result of which the Final Prospectus as then amended or supplemented would include an 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, not
misleading, or if it is necessary at any time to amend the Registration Statement or
supplement the Final Prospectus to comply with the Act, the Company will promptly notify the
Representatives of such event and will promptly prepare and file with the Commission and
furnish, at its own expense, to the
9
Underwriters and the dealers and any other dealers upon request of the Representatives,
an amendment or supplement that will correct such statement or omission or an amendment
which will effect such compliance. Neither the Representatives’ consent to, nor the
Underwriters’ delivery of, any such amendment or supplement shall constitute a waiver of any
of the conditions set forth in Section 7 hereof.
(d) Rule 158. As soon as practicable, but not later than 16 months, after the date of
this Agreement, the Company will make generally available to its securityholders an earnings
statement covering a period of at least 12 months beginning after the date of this Agreement
and satisfying the provisions of Section 11(a) of the Act and Rule 158.
(e) Furnishing of Prospectuses. The Company will furnish to the Representatives copies
of the Registration Statement, including all exhibits, any Statutory Prospectus, the Final
Prospectus and all amendments and supplements to such documents, in each case as soon as
available and in such quantities as the Representatives reasonably request. The Company
will pay the expenses of printing and distributing to the Underwriters all such documents.
(f) Blue Sky Qualifications. The Company will endeavor to qualify the Offered
Securities for sale under the laws of such jurisdictions as the Representatives reasonably
designate and will continue such qualifications in effect so long as required for the
distribution; provided, however, that the Company shall not be required to qualify as a
foreign corporation or a dealer in securities or to file any consents to service of process
under the laws of any jurisdiction.
(g) Reporting Requirements. During the period of two years hereafter, the Company will
furnish to the Representatives and, upon request, to each of the other Underwriters, as soon
as practicable after the end of each fiscal year, a copy of its annual report to
stockholders for such year; and the Company will furnish to the Representatives (i) as soon
as available, a copy of each report and any definitive proxy statement of the Company filed
with the Commission under the Exchange Act or mailed to stockholders, and (ii) from time to
time, such other information concerning the Company as the Representatives may reasonably
request. However, so long as the Company is subject to the reporting requirements of either
Section 13 or Section 15(d) of the Exchange Act and is timely filing reports with the
Commission on its Electronic Data Gathering, Analysis and Retrieval system (“XXXXX”), it is
not required to furnish such reports or statements to the Representatives or the
Underwriters.
(h) Payment of Expenses. The Company will pay all expenses incident to the performance
of its obligations under this Agreement (other than the fees and disbursements of counsel to
the Underwriters), including but not limited to any filing fees and other expenses incurred
in connection with qualification of the Offered Securities for sale under the laws of such
jurisdictions as the Representatives reasonably designates and the preparation and printing
of memoranda relating thereto, any fees charged by investment rating agencies for the rating
of the Offered Securities, costs and expenses relating to investor presentations or any
“road show” in connection with the offering and sale of the Offered Securities including,
without limitation, any travel expenses of the Company’s officers and employees and any
other expenses of the Company including the chartering of airplanes, fees and expenses
incident to listing the Offered Securities on the NYSE and other national and foreign
exchanges, fees and expenses in connection with the registration of the Offered Securities
under the Exchange Act, expenses incurred in distributing preliminary prospectuses and the
Final Prospectus (including any amendments and supplements thereto) to the Underwriters and
for expenses incurred for preparing, printing and distributing any Issuer Free Writing
Prospectuses to investors or prospective investors, in each case, with respect to the
Offered Securities.
(i) Use of Proceeds. The Company will use the net proceeds received in connection with
this offering in the manner described in the “Use of Proceeds” section of the General
Disclosure Package and Final Prospectus, and, except as disclosed in the General Disclosure
Package, the Company does not intend to use any of the proceeds from the sale of the Offered
Securities hereunder to repay any outstanding debt owed to any affiliate of any Underwriter.
10
(j) Absence of Manipulation. 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, stabilization or manipulation of the price of any securities of the Company to
facilitate the sale or resale of the Offered Securities.
(k) Restriction on Sale of Securities. For the period specified below (the “Lock-Up
Period”), the Company will not, directly or indirectly, take any of the following actions
with respect to its Securities or any securities convertible into or exchangeable or
exercisable for any of its Securities (“Lock-Up Securities”): (i) offer, sell, issue,
contract to sell, pledge or otherwise dispose of Lock-Up Securities, (ii) offer, sell,
issue, contract to sell, contract to purchase or grant any option, right or warrant to
purchase Lock-Up Securities, (iii) enter into any swap, hedge or any other agreement that
transfers, in whole or in part, the economic consequences of ownership of Lock-Up
Securities, (iv) establish or increase a put equivalent position or liquidate or decrease a
call equivalent position in Lock-Up Securities within the meaning of Section 16 of the
Exchange Act or (v) file with the Commission a registration statement under the Act relating
to Lock-Up Securities, or publicly disclose the intention to take any such action, without
the prior written consent of the Representatives, except grants of employee stock options
and other equity awards pursuant to the terms of a plan in effect on the date hereof,
issuances of Lock-Up Securities pursuant to the exercise of such options and other equity
awards or the exercise of any other employee stock options and other equity awards
outstanding on the date hereof or issuances of Lock-Up Securities pursuant to the Company’s
dividend reinvestment plan or deferred compensation plans and conversion of the Company’s
outstanding Series A ESOP Convertible Preferred Stock into shares of Common Stock. The
initial Lock-Up Period will commence on the date hereof and continue for 90 days after the
date hereof or such earlier date that the Representative consent to in writing.
6. Free Writing Prospectuses.
(a) Issuer Free Writing Prospectuses. The Company represents and agrees that, unless it
obtains the prior consent of the Representatives, and each Underwriter represents and agrees
that, unless it obtains the prior consent of the Company and the Representatives, it has not
made and will not make any offer relating to the Offered 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 with the Commission.
Any such free writing prospectus consented to by the Company and the Representatives is
hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company represents
that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as
an “issuer free writing prospectus,” as defined in Rule 433, and has complied and
will comply with the requirements of Rules 164 and 433 applicable to any Permitted Free
Writing Prospectus, including timely Commission filing where required, legending and record
keeping.
(b) Term Sheets. The Company will prepare a final term sheet relating to the Offered
Securities in the form included in Schedule D hereto, and will file such final term sheet
within the period required by Rule 433(d)(5)(ii) following the date such final terms have
been established for all classes of the offering of the Offered Securities. Any such final
term sheet is an Issuer Free Writing Prospectus and a Permitted Free Writing Prospectus for
purposes of this Agreement. The Company also consents to the use by any Underwriter of a
free writing prospectus that is not required to be filed with the Commission and that
contains only (i) (x) information describing the preliminary terms of the Offered Securities
or their offering or (y) information that describes the final terms of the Offered
Securities or their offering and that is included in the final term sheet of the Company
contemplated in the first sentence of this subsection or (ii) other information that is not
“issuer information,” as defined in Rule 433, it being understood that any such free writing
prospectus referred to in clause (i) or (ii) above shall not be an Issuer Free Writing
Prospectus for purposes of this Agreement.
7. Conditions of the Obligations of the Underwriters. The obligations of the several
Underwriters to purchase and pay for the Firm Securities on the First Closing Date and the Optional
Securities to be purchased on the Optional Closing Date will be subject to the accuracy of the
representations and warranties of the Company herein (as though made on such Closing Date), to the
accuracy of the statements of Company officers made pursuant
11
to the provisions hereof, to the performance by the Company of its obligations hereunder and
to the following additional conditions precedent:
(a) Accountants’ Comfort Letter. The Representatives shall have received letters,
dated, respectively, the date hereof and each Closing Date, of Deloitte & Touche LLP,
confirming that they are a registered public accounting firm and independent public
accountants within the meaning of the Securities Laws and substantially in the form of Annex
I hereto (except that, in any letter dated a Closing Date, the specified date referred to in
Annex I hereto shall be a date no more than three days prior to such Closing Date).
(b) Filing of Prospectus. The Final Prospectus shall have been filed with the
Commission in accordance with the Rules and Regulations and Section 5(a) hereof. No stop
order suspending the effectiveness of the Registration Statement or of any part thereof
shall have been issued and no proceedings for that purpose shall have been instituted or, to
the knowledge of the Company or any Underwriter, shall be contemplated by the Commission.
(c) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement and prior to each Closing Date, there shall not have occurred (i) any change, or
any development or event involving a prospective change, in the condition (financial or
otherwise), results of operations, business, properties or prospects of the Company and its
subsidiaries taken as a whole which, in the reasonable judgment of the
Representatives, is material and adverse and makes it impractical or inadvisable to market
the Offered Securities; (ii) any downgrading in the rating of any debt securities of the
Company by any “nationally recognized statistical rating organization” (as defined for
purposes of Rule 436(g)), or any public announcement that any such organization has under
surveillance or review its rating of any debt securities of the Company (other than an
announcement with positive implications of a possible upgrading, and no implication of a
possible downgrading, of such rating) or any announcement that the Company has been placed
on negative outlook; (iii) any change in U.S. or international financial, political or
economic conditions or currency exchange rates or exchange controls the effect of which is
such as to make it, in the reasonable judgment of the Representatives, impractical to market
or to enforce contracts for the sale of the Offered Securities, whether in the primary
market or in respect of dealings in the secondary market; (iv) any suspension or material
limitation of trading in securities generally on the NYSE, or any setting of minimum or
maximum prices for trading on such exchange; (v) or any suspension of trading of any
securities of the Company on any exchange or in the over-the-counter market; (vi) any
banking moratorium declared by any U.S. federal or New York authorities; (vii) any major
disruption of settlements of securities, payment, or clearance services in the United States
or any other country where such securities are listed or (viii) any attack on, outbreak or
escalation of hostilities or act of terrorism involving the United States, any declaration
of war by Congress or any other national or international calamity or emergency if, in the
reasonable judgment of the Representatives, the effect of any such attack, outbreak,
escalation, act, declaration, calamity or emergency is such as to make it impractical or
inadvisable to market the Offered Securities or to enforce contracts for the sale of the
Offered Securities.
(d) Opinion of Counsel for Company. The Representatives shall have received an
opinion, dated each Closing Date, of Xxxxx Day, counsel for the Company, in substantially
the same form of Annex III attached hereto.
(e) Opinion of Counsel for Underwriters. The Representatives shall have received from
Xxxxxx & Xxxxxxx LLP, counsel for the Underwriters, such opinion or opinions, dated such
Closing Date, with respect to such matters as the Representatives may require, and the
Company shall have furnished to such counsel such documents as they request for the purpose
of enabling them to pass upon such matters.
(f) Opinion of Counsel for Ferro Spain SA. The Representatives shall have received
from DLA Piper, counsel for Ferro Spain SA, such opinion or opinions, dated such Closing
Date, to the effect that:
(i) Good Standing. Ferro Spain SA has been duly incorporated and is existing and in
good standing under the laws of the jurisdiction of its incorporation, with power and
authority (corporate and limited liability) to own its properties and conduct its business
as described in the General Disclosure
12
Package and Final Prospectus; and in accordance with the provisions of Spanish law and
the provisions of Ferro Spain SA’s constituent documents and by-laws, Ferro Spain SA is duly
qualified to do business as a Spanish corporation in good standing, and under Spanish law
DLA Piper is not aware of legal limitations for Ferro Spain SA to do business, or to own or
lease property, in all the jurisdictions in which it operates;
(g) Opinion of Counsel for Ferro (Holland) BV. The Representatives shall have
received from De Brauw Blackstone Westbroek, counsel for Ferro (Holland) BV, such opinion or
opinions, dated such Closing Date, to the effect that:
(i) Good Standing. Ferro (Holland) BV has been duly incorporated and is existing and
in good standing under the laws of the jurisdiction of its incorporation, with power and
authority (corporate and limited liability) to own its properties and conduct its business
as described in the General Disclosure Package and Final Prospectus; and Ferro (Holland) BV
is duly qualified to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification, except where the failure to be so qualified and be in good
standing would not have a Material Adverse Effect;
(h) Opinion of Counsel for Ferro B.V. The Representatives shall have received from De
Brauw Blackstone Westbroek, counsel for Ferro B.V., such opinion or opinions, dated such
Closing Date, to the effect that:
(i) Good Standing. Ferro B.V. has been duly incorporated and is existing and in good
standing under the laws of the jurisdiction of its incorporation, with power and authority
(corporate and limited liability) to own its properties and conduct its business as
described in the General Disclosure Package and Final Prospectus; and Ferro B.V. is duly
qualified to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification, except where the failure to be so qualified and be in good
standing would not have a Material Adverse Effect;
(i) Opinion of Counsel for Ferro (Italia) SrL. The Representatives shall have received
from Pavia d Ansaldo, counsel for Ferro (Italia) SrL, such opinion or opinions, dated such
Closing Date, to the effect that:
(i) Good Standing. Ferro (Italia) SrL has been duly incorporated and is existing and
in good standing under the laws of the jurisdiction of its incorporation, with power and
authority (corporate and limited liability) to own its properties and conduct its business
as described in the General Disclosure Package and Final Prospectus; and Ferro (Italia) SrL
is duly qualified to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification, except where the failure to be so qualified and be in good
standing would not have a Material Adverse Effect;
(j) Officer’s Certificate. The Representatives shall have received a certificate,
dated such Closing Date, of an executive officer of the Company and a principal financial or
accounting officer of the Company in which such officers shall state that: the
representations and warranties of the Company in this Agreement are true and correct; the
Company has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied hereunder at or prior to such Closing Date; no stop order suspending
the effectiveness of the Registration Statement has been issued and no proceedings for that
purpose have been instituted or, to the best of their knowledge and after reasonable
investigation, are contemplated by the Commission; and, subsequent to the date of the most
recent financial statements in the General Disclosure Package and Final Prospectus, there
has been no material adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or otherwise), results of operations,
business, properties or prospects of the Company and its subsidiaries taken as a whole
except as set forth in the General Disclosure Package and Final Prospectus or as described
in such certificate.
13
(k) Chief Financial Officer Certificate. The Representatives shall have received a
certificate, dated the date hereof, of the chief financial officer of the Company as to
certain financial information contained in the General Disclosure Package and the Final
Prospectus in the form reasonably satisfactory to the Representatives.
(l) Lockup Agreement. The Company has obtained and delivered to the Underwriters
executed copies of an agreement in the form of Annex II hereof in form and substance
satisfactory to the Representatives from each of the persons and entities listed on Schedule
E hereto.
(m) Listing. The Offered Securities shall have been approved for listing on the NYSE,
subject to official notice of issuance.
The Company will furnish the Representatives with such conformed copies of such opinions,
certificates, letters and documents as the Representatives reasonably request. The Representatives
may in their sole discretion waive on behalf of the Underwriters compliance with any conditions to
the obligations of the Underwriters hereunder, whether in respect of an Optional Closing Date or
otherwise.
8. Indemnification and Contribution.
(a) Indemnification of Underwriters. The Company will indemnify and hold harmless
each Underwriter, its partners, members, directors, officers, employees, agents, affiliates
and each person, if any, who controls such Underwriter within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act (each, an “Indemnified Party”), against any and
all losses, claims, damages or liabilities, joint or several, to which such Indemnified
Party may become subject, under the Act, the Exchange Act, other Federal or state statutory
law or regulation 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 any material fact contained in any part of the Registration Statement at
any time, any Statutory Prospectus as of any time, the Final Prospectus or any Issuer Free
Writing Prospectus, or arise out of or are based upon the omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse each Indemnified Party for any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending
against any loss, claim, damage, liability, action, litigation, investigation or proceeding
whatsoever (whether or not such Indemnified Party is a party thereto), whether threatened or
commenced, and in connection with the enforcement of this provision with respect to any of
the above as such expenses are incurred; provided, however, that the Company will 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 an untrue statement or alleged untrue statement in or omission or
alleged omission from any of such documents in reliance 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 any Underwriter consists of the information described as such in subsection (b)
below.
(b) Indemnification of Company. Each Underwriter will severally and not jointly
indemnify and hold harmless the Company, each of its directors and each of its officers who
signs a Registration Statement and each person, if any, who controls the Company within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, an “Underwriter
Indemnified Party”), against any losses, claims, damages or liabilities to which such
Underwriter Indemnified Party may become subject, under the Act, the Exchange Act, other
Federal or state statutory law or regulation 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 any material fact contained in any part of
the Registration Statement at any time, any Statutory Prospectus as of any time, the Final
Prospectus, or any Issuer Free Writing Prospectus, or arise out of or are based upon the
omission or the alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with written information
furnished to the Company by such Underwriter through the Representatives specifically for
use therein, and will reimburse any legal or other expenses
14
reasonably incurred by such Underwriter Indemnified Party in connection with
investigating or defending against any such loss, claim, damage, liability, action,
litigation, investigation or proceeding whatsoever (whether or not such Underwriter
Indemnified Party is a party thereto), whether threatened or commenced, based upon any such
untrue statement or omission, or any such alleged untrue statement or omission as such
expenses are incurred, it being understood and agreed that the only such information
furnished by any Underwriter consists of the following information in the Final Prospectus
furnished on behalf of each Underwriter: the information in the fourth paragraph under the
caption “Underwriting (Conflicts of Interest)” (concerning the Underwriters’ selling
concession and the ability of the Underwriters to change the public offering price and
selling concession) and the information in the ninth paragraph under the caption
“Underwriting (Conflicts of Interest)” (concerning short sales, stabilizing transaction and
purchases to cover positions created by short sales by the Underwriters).
(c) Actions against Parties; Notification. Promptly after receipt by an indemnified
party under this Section 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
subsection (a) or (b) above, notify the indemnifying party of the commencement thereof; but
the failure to notify the indemnifying party shall not relieve it from any liability that it
may have under subsection (a) or (b) above except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and
provided further that the failure to notify the indemnifying party shall not relieve it from
any liability that it may have to an indemnified party otherwise than under subsection (a)
or (b) above. In case any such action is brought against any indemnified party and it
notifies the indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party under this
Section for any legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened action in respect of which any indemnified party
is or could have been a party and indemnity could have been sought hereunder by such
indemnified party unless such settlement (i) includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter of such
action 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 an indemnified party.
(d) Contribution. If the indemnification provided for in this Section is unavailable
or insufficient to hold harmless an indemnified party under subsection (a) or (b) above,
then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities referred to in
subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Underwriters on the other from the
offering of the Offered Securities or (ii) if the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits referred to in clause (i) above but also the relative fault of the
Company on the one hand and the Underwriters on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities as well as any
other relevant equitable considerations. The relative benefits received by the Company on
the one hand and the Underwriters on the other shall be deemed to be in the same proportion
as the total net proceeds from the offering (before deducting expenses) received by the
Company bear to the total underwriting discounts and commissions received by the
Underwriters. The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company or the
Underwriters and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities referred to in
the first sentence of this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any action or claim which is the
15
subject of this subsection (d). Notwithstanding the provisions of this subsection (d),
no Underwriter shall be required to contribute any amount in excess of the amount by which
the total price at which the Offered Securities underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which such Underwriter
has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. 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. The Underwriters’ obligations in this
subsection (d) to contribute are several in proportion to their respective underwriting
obligations and not joint. The Company and the Underwriters agree that it would not be just
and equitable if contribution pursuant to this Section 8(d) were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable considerations
referred to in this Section 8(d).
9. Default of Underwriters. If any Underwriter or Underwriters default in their obligations
to purchase Offered Securities hereunder on either the First or any Optional Closing Date and the
aggregate number of shares of Offered Securities that such defaulting Underwriter or Underwriters
agreed but failed to purchase does not exceed 10% of the total number of shares of Offered
Securities that the Underwriters are obligated to purchase on such Closing Date, the
Representatives may make arrangements satisfactory to the Company for the purchase of such Offered
Securities by other persons, including any of the Underwriters, but if no such arrangements are
made by such Closing Date, the non-defaulting Underwriters shall be obligated severally, in
proportion to their respective commitments hereunder, to purchase the Offered Securities that such
defaulting Underwriters agreed but failed to purchase on such Closing Date. If any Underwriter or
Underwriters so default and the aggregate number of shares of Offered Securities with respect to
which such default or defaults occur exceeds 10% of the total number of shares of Offered
Securities that the Underwriters are obligated to purchase on such Closing Date and arrangements
satisfactory to the Representatives and the Company for the purchase of such Offered Securities by
other persons are not made within 36 hours after such default, this Agreement will terminate
without liability on the part of any non-defaulting Underwriter or the Company, except as provided
in Section 10 (provided that if such default occurs with respect to Optional Securities after the
First Closing Date, this Agreement will not terminate as to the Firm Securities or any Optional
Securities purchased prior to such termination). As used in this Agreement, the term “Underwriter”
includes any person substituted for an Underwriter under this Section. Nothing herein will relieve
a defaulting Underwriter from liability for its default.
10. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or its officers and of
the several Underwriters set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation, or statement as to the results thereof, made by or on
behalf of any Underwriter, the Company or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment for the Offered
Securities. If the purchase of the Offered Securities by the Underwriters is not consummated for
any reason other than solely because of the termination of this Agreement pursuant to Section 9
hereof, the Company will reimburse the Underwriters for all out-of-pocket expenses (including fees
and disbursements of counsel) reasonably incurred by them in connection with the offering of the
Offered Securities, and the respective obligations of the Company and the Underwriters pursuant to
Section 8 hereof shall remain in effect. In addition, if any Offered Securities have been
purchased hereunder, the representations and warranties in Section 2 and all obligations under
Section 5 shall also remain in effect.
11. Notices. All communications hereunder will be in writing and, if sent to the
Underwriters, will be mailed, delivered or telegraphed and confirmed to Credit Suisse Securities
(USA) LLC at Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, N.Y. 10010-3629,
Attention: LCD-IBD and to X.X. Xxxxxx Securities Inc. at X.X. Xxxxxx Securities Inc., 000 Xxxxxxx
Xxxxxx, Xxx Xxxx, X.X. 00000, Attention: Equity Syndicate Desk, or, if sent to the Company, will be
mailed, delivered or faxed and confirmed to it at Ferro Corporation, 0000 Xxxxxxxx Xxxxxx,
Xxxxxxxxx, Xxxx 00000, Attention: General Counsel, Facsimile: 000-000-0000, with a copy to Xxxxx
Day, North Point, 000 Xxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxx 00000-0000, Attention: Xxxxxxxxxxx X. Xxxxx;
provided, however, that any notice to an Underwriter pursuant to Section 8 will be mailed,
delivered or faxed and confirmed to such Underwriter.
16
12. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers and directors and controlling persons
referred to in Section 8, and no other person will have any right or obligation hereunder.
13. Representation of Underwriters. The Representatives will act for the several
Underwriters in connection with this financing, and any action under this Agreement taken by the
Representatives will be binding upon all the Underwriters.
14. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all such counterparts shall together constitute one
and the same Agreement.
15. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) No Other Relationship. The Representatives have been retained solely to act as
underwriters in connection with the sale of Offered Securities and no fiduciary, advisory or
agency relationship between the Company and the Representatives has been created in respect
of any of the transactions contemplated by this Agreement or the Final Prospectus,
irrespective of whether the Representatives have advised or is advising the Company on other
matters;
(b) Arms’ Length Negotiations. The price of the Offered Securities set forth in this
Agreement was established by the Company following discussions and arms-length negotiations
with the Representatives and the Company is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions contemplated by
this Agreement;
(c) Absence of Obligation to Disclose. The Company has been advised that the
Representatives and their respective affiliates are engaged in a broad range of transactions
which may involve interests that differ from those of the Company and that the
Representatives have no obligation to disclose such interests and transactions to the
Company solely by virtue of any fiduciary, advisory or agency relationship; and
(d) Waiver. The Company waives, to the fullest extent permitted by law, any claims it
may have against the Representatives for breach of fiduciary duty or alleged breach of
fiduciary duty in connection with the transactions contemplated by this Agreement and the
process leading thereto and agrees that the Representatives shall have no liability (whether
direct or indirect) to the Company in respect of such a fiduciary duty claim or to any
person asserting a fiduciary duty claim on behalf of or in right of the Company, including
stockholders, employees or creditors of the Company.
16. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
The Company hereby submits to the non-exclusive jurisdiction of the Federal and state courts
in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby. The Company irrevocably and
unconditionally waives any objection to the laying of venue of any suit or proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby in Federal and state
courts in the Borough of Manhattan in The City of New York and irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such suit or proceeding in any
such court has been brought in an inconvenient forum.
17
If the foregoing is in accordance with the Representatives’ understanding of our agreement,
kindly sign and return to the Company one of the counterparts hereof, whereupon it will become a
binding agreement between the Company and the several Underwriters in accordance with its terms.
Very truly yours, FERRO CORPORATION |
||||
By | /s/ Xxxxxx X. Xxxxxx | |||
Name: | Xxxxxx X. Xxxxxx | |||
Title: | Vice President and Chief Financial Officer | |||
The foregoing Underwriting Agreement is hereby
confirmed and accepted as of the date first above
written.
Credit Suisse Securities (USA) LLC |
||||
By: | /s/ Xxxxxxx X. Xxxxxxx | |||
Name: | Xxxxxxx X. Xxxxxxx | |||
Title: | Managing Director | |||
X.X. Xxxxxx Securities Inc. |
||||
By: | /s/ Xxxxxxxx Xxxx | |||
Name: | Xxxxxxxx Xxxx | |||
Title: | Vice President | |||
Acting on behalf of themselves and as the
Representatives of the several Underwriters
Representatives of the several Underwriters
18
SCHEDULE A
Number of | ||||
Underwriter | Firm Securities | |||
Credit Suisse Securities (USA) LLC |
16,087,500 | |||
X.X. Xxxxxx Securities Inc. |
10,725,000 | |||
KeyBanc Capital Markets Inc. |
3,217,500 | |||
Citigroup Global Markets Inc. |
2,145,000 | |||
PNC Capital Markets LLC |
2,145,000 | |||
First Analysis Securities Corporation |
715,000 | |||
RBS Securities Inc. |
715,000 | |||
Total |
35,750,000 | |||
19
SCHEDULE B
Significant Subsidiaries
Ferro Color & Glass Corporation
Ferro Spain XX
Xxxxx B.V.
Xxxxx (Xxxxxxx) BV
Xxxxx (Italia) SrL
20
SCHEDULE C
1. General Use Free Writing Prospectuses (included in the General Disclosure Package)
“General Use Issuer Free Writing Prospectus” includes each of the following documents:
1. Final term sheet, dated November 2, 2009, a copy of which is included in Schedule D
hereto.
2. Other Information Included in the General Disclosure Package
The following information is also included in the General Disclosure Package:
None.
21
SCHEDULE D
PRICING TERM SHEET
Issuer Free Writing Prospectus
Filed Pursuant to Rule 433 under the Securities Act of 1933
Relating to Preliminary Prospectus Supplement dated October 27, 2009
Registration No. 333-161136
Filed Pursuant to Rule 433 under the Securities Act of 1933
Relating to Preliminary Prospectus Supplement dated October 27, 2009
Registration No. 333-161136
FERRO CORPORATION
TERM SHEET
Dated November 2, 2009
Dated November 2, 2009
35,750,000 Shares of Common Stock
This term sheet relates only to the securities described below and supplements and should be read
together with the preliminary prospectus supplement, dated October 27, 2009, and the accompanying
prospectus (including the documents incorporated by reference therein) relating to these
securities.
Issuer: | Ferro Corporation | |
Title of Securities:
|
Common Stock, par value $1.00 per share | |
Stock Symbol / Exchange:
|
FOE / New York Stock Exchange | |
Trade Date:
|
November 2, 2009 | |
Closing Date:
|
November 6, 2009 | |
Number of Shares Offered:
|
35,750,000 shares | |
Underwriters’ Option to Purchase
Additional Shares:
|
5,362,500 shares | |
Price to the Public (Issue Price):
|
$5.60 per share | |
Net Proceeds to Ferro Corporation:
|
We estimate that the net proceeds from the sale of our common stock in this offering, after deducting underwriting discounts and estimated offering expenses, will be approximately $186.9 million (or $215.5 million if the over-allotment option is exercised in full). | |
Estimated Term Loan Balances as
Adjusted to Give Effect to the
Amendment and Restatement of the
Credit Facility, this Offering
and the Application of the Net
Proceeds Therefrom as of November
2, 2009 (Assuming No Exercise of
the Underwriters’ Option to
Purchase Additional Shares):
|
Aggregate Principal Amount of Existing
Term Loans: $224.8 million Aggregate Principal Amount of New Term Loans: $35.4 million |
22
As adjusted to give effect to this offering and the application of the net proceeds therefrom,
as of September 30, 2009 (assuming no exercise of the underwriters’ option to purchase additional
shares), Ferro Corporation would have had (a) cash and cash equivalents of approximately $64.3
million, (b) long-term debt, less current portion of approximately $453.3 million, (c) total
shareholders’ equity of approximately $515.7 million and (d) a total capitalization of
approximately $1,017.0 million.
Ferro Corporation has filed a registration statement (including a preliminary prospectus supplement
and an accompanying prospectus) with the SEC for the offering to which this communication relates.
Before you invest, you should read the preliminary prospectus supplement and the accompanying
prospectus in that registration statement and other documents Ferro Corporation has filed with the
SEC for more complete information about the issuer and this offering. You may get these documents
for free by visiting XXXXX on the SEC web site at xxx.xxx.xxx. Alternatively, copies of the
preliminary prospectus supplement and the accompanying prospectus may be obtained from Credit
Suisse Securities (USA) LLC by calling toll-free (000) 000-0000 or from X.X. Xxxxxx Securities Inc.
by calling toll-free (000) 000-0000.
23
SCHEDULE E
Xxxxxx X. Xxxxxx
Xxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
Xxxxxx Xxxxxx Xxxxxxx
Xxxxxxx X. Xxxxxx
Xxxx X. Xxxxxxxxxx
Xxxxxx X. Xxxxx
Xxxxxxxx Xxxxxxxx
Xxx X. Xxxxxxx
Xxxxx X. Xxxxxx
Xxxxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxx
Xxxxxxx X. Xxxxx
Xxxxx X. Xxxxxxx
Xxxxxxx X. Xxxxx
Xxxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxx
Xxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
Xxxxxx Xxxxxx Xxxxxxx
Xxxxxxx X. Xxxxxx
Xxxx X. Xxxxxxxxxx
Xxxxxx X. Xxxxx
Xxxxxxxx Xxxxxxxx
Xxx X. Xxxxxxx
Xxxxx X. Xxxxxx
Xxxxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxx
Xxxxxxx X. Xxxxx
Xxxxx X. Xxxxxxx
Xxxxxxx X. Xxxxx
Xxxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxx
24
Annex I
The Representatives shall have received letters, dated, respectively, the date hereof and any
Closing Date, of Deloitte & Touche LLP confirming that they are a registered public accounting firm
and independent public accountants within the meaning of the Securities Laws to the effect that:
(i) in their opinion the audited consolidated financial statements examined by them and
included in the Registration Statements and the General Disclosure Package comply as to form in all
material respects with the applicable accounting requirements of the Securities Laws;
(ii) with respect to the period(s) covered by the unaudited quarterly consolidated financial
statements included in the Registration Statement and the General Disclosure Package, they have
performed the procedures specified by the American Institute of Certified Public Accountants for a
review of interim financial information as described in XX 000, Xxxxxxx Financial Information, on
the unaudited quarterly consolidated financial statements (including the notes thereto) of the
Company and its consolidated subsidiaries included in the Registration Statement and the General
Disclosure Package, and have made inquiries of certain officials of the Company who have
responsibility for financial and accounting matters of the Company and its consolidated
subsidiaries as to whether such unaudited quarterly consolidated financial statements comply as to
form in all material respects with the applicable accounting requirements of the Securities Act and
the related published rules and regulations; they have read the latest unaudited monthly
consolidated financial statements (including the notes thereto) of the Company and its consolidated
subsidiaries made available by the Company and the minutes of the meetings of the stockholders,
Board of Directors and committees of the Board of Directors of the Company; and have made inquiries
of certain officials of the Company who have responsibility for financial and accounting matters of
the Company and its consolidated subsidiaries as to whether the unaudited monthly financial
statements are stated on a basis substantially consistent with that of the audited consolidated
financial statements included in the Registration Statement and General Disclosure Package; and on
the basis thereof, nothing came to their attention which caused them to believe that:
(A) the unaudited financial statements included in the Registration Statement or the General
Disclosure Package do not comply as to form in all material respects with the applicable accounting
requirements of the Securities Laws, or that any material modifications should be made to the
unaudited quarterly consolidated financial statements for them to be in conformity with generally
accepted accounting principles;
(B) with respect to the period subsequent to the date of the most recent unaudited quarterly
consolidated financial statements included in the General Disclosure Package, at a specified date
at the end of the most recent month, there were any increases in the short-term debt or long-term
debt of the Company and its consolidated subsidiaries, or any change in stockholders’ equity or the
consolidated capital stock of the Company and its consolidated subsidiaries or any decreases in the
net current assets or net assets of the Company and its consolidated
subsidiaries, as compared with the amounts shown on the latest balance sheet included in the
General Disclosure Package; or for the period from the day after the date of the most recent
unaudited quarterly consolidated financial statements for such entities included in the General
Disclosure Package to such specified date, there were any decreases, as compared with the
corresponding period in the preceding year, in consolidated net sales, net operating income,
consolidated net income or in the ratio of earnings to fixed charges of the Company and its
consolidated subsidiaries, except for such changes, increases or decreases set forth in such letter
which the General Disclosure Package discloses have occurred or may occur;
(iii) With respect to any period as to which officials of the Company have advised that no
consolidated financial statements as of any date or for any period subsequent to the specified date
referred to in (ii)(B) above are available, they have made inquiries of certain officials of the
Company who have responsibility for the financial and accounting matters of the Company and its
consolidated subsidiaries as to whether, at a specified date not more than three business days
prior to the date of such letter, there were any increases in the short-term debt or long-term debt
of the Company and its consolidated subsidiaries, or any change in stockholders’ equity or the
consolidated capital stock of the Company and its consolidated subsidiaries or any decreases in the
net current assets or net assets of the Company and its consolidated subsidiaries, as
compared with the amounts shown on the most recent balance sheet for such entities included in the
General Disclosure Package; or for the period from the day after the date of the most recent
unaudited quarterly financial statements for such entities included in the General Disclosure
Package to such
specified date, there were any decreases, as compared with the corresponding period in the
preceding year, in net sales, net operating income, consolidated net income, or in the ratio of
earnings to fixed charges of the Company and its consolidated subsidiaries and, on the basis of
such inquiries and the review of the minutes described in paragraph (ii) above, nothing came to
their attention which caused them to believe that there was any such change, increase, or decrease,
except for such changes, increases or decreases set forth in such letter which the General
Disclosure Package discloses have occurred or may occur; and
(iv) they have compared specified dollar amounts (or percentages derived from such dollar
amounts) and other financial and statistical information contained in the Registration Statement,
each Issuer Free Writing Prospectus (other than any Issuer Free Writing Prospectus that is an
“electronic road show,” as defined in Rule 433(h)) and the General Disclosure Package (in each case
to the extent that such dollar amounts, percentages and other financial and statistical information
are derived from the general accounting records of the Company and its subsidiaries or are derived
directly from such records by analysis or computation) with the results obtained from inquiries, a
reading of such general accounting records and other procedures specified in such letter and have
found such dollar amounts, percentages and other financial and statistical information to be in
agreement with such results.
All financial statements included in material incorporated by reference into the Registration
Statement or the General Disclosure Package shall be deemed included in the Registration Statement
or the General Disclosure Package for purposes of this Schedule.
Annex II
Form of Lock-Up Agreement
Form of Lock-Up Agreement
, 2009
Ferro Corporation
0000 Xxxxxxxx Xxxxxx
Xxxxxxxxx Xxxx 00000
0000 Xxxxxxxx Xxxxxx
Xxxxxxxxx Xxxx 00000
Credit Suisse Securities (USA) LLC
X.X. Xxxxxx Securities Inc.
As representatives of the several underwriters (the “Representatives”)
X.X. Xxxxxx Securities Inc.
As representatives of the several underwriters (the “Representatives”)
c/o Credit Suisse Securities (USA) LLC
Eleven Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Eleven Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Dear Sirs:
As an inducement to the Underwriters to execute the Underwriting Agreement, pursuant to which
an offering will be made that is intended to result in the establishment of a public market for
35,750,000 shares of common stock (the “Offered Securities”), par value $1.00 per share (the
“Common Stock”) of Ferro Corporation, and any successor (by merger or otherwise) thereto, (the
“Company”), the undersigned hereby agrees that during the period specified in the following
paragraph (the “Lock-Up Period”), the undersigned will not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any Common Stock or securities convertible into or
exchangeable or exercisable for any Common Stock, enter into a transaction which would have the
same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in
part, any of the economic consequences of ownership of the Common Stock, whether any such
aforementioned transaction is to be settled by delivery of the Common Stock or such other
securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale,
pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement,
without, in each case, the prior written consent of the Representatives. In addition, the
undersigned agrees that, without the prior written consent of the Representatives, it will not,
during the Lock-Up Period, make any demand for or exercise any right with respect to, the
registration of any Common Stock or any security convertible into or exercisable or exchangeable
for the Common Stock.
The initial Lock-Up Period will commence on the date of commencement of marketing of the
Common Stock (through an issuance by the Company of a press release) and continue and include the
date 90 days after the public offering date set forth on the final prospectus used to sell the
Offered Securities (the “Public Offering Date”) pursuant to the Underwriting Agreement.
Any Common Stock received upon exercise of options granted to the undersigned will also be
subject to this Agreement; provided, that nothing herein shall restrict the undersigned from
exercising any option or receiving Common Stock from the Company upon the exercise of any option or
other equity award. Any Common Stock acquired by the undersigned in the open market after the date
of this Agreement will not be subject to this Agreement. A transfer of Common Stock (i) to a
family member, (ii) to a trust, (iii) as a bona fide gift or (iv) to the Company to satisfy any
payment or withholding obligations in connection with the exercise or settlement of any equity
awards under the Company’s equity compensation plans in existence on the date hereof may be made,
provided, that, in the case of a transfer under clause (i), (ii) or (iii), the donee or transferee
agrees to be bound in writing by the terms of this Agreement prior to such transfer and such
transfer shall not involve a disposition for value and, in the case of a transfer under clause (i),
(ii) (iii) or (iv), no filing by any party (donor, donee, transferor or transferee) under the
Securities Exchange Act of 1934 (the “Exchange Act”) shall be required or shall be voluntarily made
in connection with such transfer (other than a filing on a Form 5 made after the expiration of the
Lock-Up Period or pursuant to Form 10-Q or 10-K in connection with repurchases of Common Stock by
the Company).
Notwithstanding anything herein to the contrary, the undersigned may enter into a written
trading plan established pursuant to Rule 10b5-1 of the Exchange Act during the Lock-Up Period, and
the Company may announce the establishment of such a plan, provided that no direct or indirect
offers, pledges, sales, contracts to sell, sales of any option or contract to purchase, purchases
of any option or contract to sell, grants of any option, right or warrant to purchase, loans, or
other transfers or disposals of any Common Stock or any securities convertible into or exercisable
or exchangeable for Common Stock may be effected pursuant to such plan during the Lock-Up Period.
In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby
authorized to decline to make any transfer of shares of Common Stock if such transfer would
constitute a violation or breach of this Agreement.
This Agreement shall be binding on the undersigned and the successors, heirs, personal
representatives and assigns of the undersigned. This Agreement shall lapse and become null and
void, at the option of the Company, if the Underwriting Agreement shall not have been entered into
by the Company and the Representatives on or before November 4, 2009. This agreement shall be
governed by, and construed in accordance with, the laws of the State of New York.
Very truly yours,
[Name of stockholder]