PRAXAIR, INC. DEBT SECURITIES PREFERRED STOCK COMMON STOCK STANDARD UNDERWRITING AGREEMENT PROVISIONS
Exhibit 1.1
December 14, 2006
PRAXAIR, INC.
DEBT SECURITIES
PREFERRED STOCK
COMMON STOCK
PREFERRED STOCK
COMMON STOCK
STANDARD UNDERWRITING AGREEMENT PROVISIONS
1. Introductory. Praxair, Inc., a Delaware corporation (the “Company”), may issue and sell
from time to time its debt securities consisting of senior debt securities (“Senior Debt
Securities”) and subordinated debt securities (“Subordinated Debt Securities” and, together with
the Senior Debt Securities, the “Debt Securities”) and shares of its equity securities consisting
of preferred stock, par value $.01 per share (“Preferred Stock”), and common stock, par value $.01
per share (“Common Stock” and, together with the Preferred Stock, the “Equity Securities”). The
Debt Securities and the Equity Securities are collectively referred to herein as the “Securities”
and are registered under the registration statement referred to in Section 2(a) hereof.
The Debt Securities may be issued in one or more series and may have varying designations,
denominations, interest rates and payment dates, maturities, redemption provisions and selling
prices. The Senior Debt Securities will be issued under the indenture dated as of July 15, 1992
(the “Senior Indenture”) between the Company and U.S. Bank National Association, as the ultimate
successor trustee to Bank of America Illinois (formerly Continental Bank, National Association)
(the “Senior Trustee”) and the Subordinated Debt Securities will be issued under an indenture (the
“Subordinated Indenture” and, together with the Senior Indenture, the “Indentures”) between the
Company and the trustee named in the applicable prospectus supplement (the “Subordinated Trustee”
and, together with the Senior Trustee, the “Trustees”). The Preferred Stock may be issued in one
or more series, may have varying dividend and liquidation preferences, voting rights, and
redemption provisions, and may be convertible, as described in its certificate of designation, into
shares of Common Stock.
These standard underwriting agreement provisions (the “Standard Provisions”), by themselves,
shall not be construed as an obligation on the part of the Company to sell any of the Offered
Securities or as an obligation of any person to purchase the Offered Securities (as defined). The
Standard Provisions are intended to be incorporated by reference in a Terms Agreement (as defined
in Section 3 hereof) relating to the type, designation and series of Securities to be issued and
sold by the Company pursuant thereto (the “Offered Securities”) to the underwriters named therein
(the “Underwriters”). If the Underwriters consist only of the firm or firms referred to in the
Terms Agreement as Representative or Representatives, then the term
“Underwriters” and
“Representatives”, as used herein, shall each be deemed to refer to such firm or firms. It is
understood that the Company may from time to time agree to sell the Offered Securities to a certain
firm or firms (“Manager” or “Managers”) outside the United States and
Canada, such Manager or Managers to be specified in, and said Offered Securities to be sold
pursuant to, a Terms Agreement (such Terms Agreement being referred to therein by such Managers as
a Subscription Agreement). As used herein, the terms Underwriter and Underwriters are deemed to
include, unless the context otherwise specifies or requires, the Manager or Managers. The
Underwriters and Managers (or Underwriter and Manager) may provide for the coordination of their
activities by entering into an Agreement Between U.S. Underwriters and Managers which may permit
them, among other things, to sell the Offered Securities to each other for purposes of resale. As
used herein the term “United States” shall mean the United States of America (including the States
and the District of Columbia), its territories and possessions and other areas subject to its
jurisdiction and “Canada” means Canada, its provinces, territories and possessions and other areas
subject to its jurisdiction. The Terms Agreement relating to the Offered Securities, together with
the provisions hereof incorporated therein by reference (which provisions shall not become
effective until so incorporated by reference), is herein referred to as this “Agreement”.
2. Representations and Warranties of the Company. The Company represents and warrants
to, and agrees with, each Underwriter that:
(a) The Company is permitted to use Form S-3 under the Securities Act of 1933 (the
“Act”) and has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on such Form (the file number of which is set forth in the Terms
Agreement), which has become effective, for the registration under the Act of the Offered
Securities. Such registration statement, as amended at the date of this Agreement, meets
the requirements set forth in Rule 415(a)(1)(x) under the Act and complies in all other
material respects with said Rule. Such registration statement, including the documents
incorporated therein by reference and the information (if any) deemed to be part of the
registration statement at each time of effectiveness pursuant to Rule 430B of the Act, is
hereinafter referred to as the “Registration Statement.” The prospectus included in the
Registration Statement covering the Offered Securities, as amended or supplemented from time
to time, is hereinafter referred to as the “Basic Prospectus.” The term “Basic Prospectus,”
as supplemented by the prospectus supplement in the form first used to confirm each sale of
Offered Securities (or in the form first made available to the Underwriters by the Company
to meet requests of purchasers pursuant to Rule 173 under the Act) and identified as such in
the Terms Agreement (the “Prospectus Supplement”), is hereinafter referred to as the “U.S.
Prospectus.” The term “Preliminary Prospectus” means the preliminary prospectus supplement
identified in the Terms Agreement, together with the Basic Prospectus, as amended or
supplemented immediately prior to the Time of Sale (as defined in the Terms Agreement). The
term “Issuer Free Writing Prospectus” means an “issuer free writing prospectus” as defined
in Rule 433 under the Act. The term “Time of Sale Information” means, as of the Time of
Sale, the Preliminary Prospectus, the Issuer Free Writing Prospectus attached as Exhibit 1
to the Terms Agreement (the “Pricing Term Sheet”) and the other information, if any, set
forth on Exhibit 2 to the Terms Agreement. As used herein, the terms “Registration
Statement,” “Basic Prospectus,” “U.S. Prospectus,” “Preliminary Prospectus,” and “Time
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of
Sale Information” shall include the documents, if any, incorporated by reference therein.
The terms “supplement,” “amendment” and “amend” as used herein with respect to the
Registration Statement, the Basic Prospectus, the Preliminary Prospectus, the
Time of Sale Information or Issuer Free Writing Prospectus shall include all documents
subsequently filed by the Company with the Commission pursuant to the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), that are deemed to be incorporated by
reference therein. If applicable, the prospectus relating to the Offered Securities to be
sold by the Company to the Manager or Managers, as supplemented by a prospectus supplement
as of the time of the applicable Terms Agreement, which will be identical to the U.S.
Prospectus except as provided in such Terms Agreement, is hereinafter referred to as the
“International Prospectus” (collectively the U.S. Prospectus and the International
Prospectus are hereinafter referred to as the “Prospectuses”). If the U.S. Prospectus is
the only prospectus relating to the Offered Securities, the term “Prospectuses” shall be
deemed to refer only to the U.S. Prospectus.
(b) (A) As of the date of any Terms Agreement, when the U.S. Prospectus is first filed
pursuant to Rule 424(b) under the Act, when, prior to the Closing Date (as defined in
Section 3), any amendment to the Registration Statement becomes effective (including the
filing of any document incorporated by reference in the Registration Statement) and at the
Closing Date, (i) the Registration Statement, as amended as of any such time, and the
Prospectuses, as amended or supplemented as of any such time, and the Indentures will comply
in all material respects with the applicable requirements of the Act, the Trust Indenture
Act of 1939, as amended (the “Trust Indenture Act”), and the Exchange Act and the respective
rules thereunder and (ii) neither the Registration Statement, as amended as of any such
time, nor the Prospectuses, as amended or supplemented as of any such time, will contain any
untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein not misleading; and (B) the
Time of Sale Information, at the Time of Sale and at the Closing Date did not and will not,
contain any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided, however, that, in the case of both (A) and (B), the
Company makes no representations or warranties as to (i) that part of the Registration
Statement which constitutes the Statement of Eligibility (Form T-1) under the Trust
Indenture Act of the Trustee, (ii) the information contained in or omitted from the
Registration Statement, the Time of Sale Information or the Prospectuses or any amendment
thereof or supplement thereto in reliance upon and in conformity with information furnished
in writing to the Company for use in connection with the preparation of the Registration
Statement, the Time of Sale Information and the Prospectuses by or on behalf of any
Underwriter or the International Prospectus by any Manager, it being understood and agreed
that the only such information is that described as such in the applicable Terms Agreement.
(c) The Company (including its agents and representatives, other than the Underwriters
in their capacity as such) has not prepared, made, used, authorized, approved or referred to
and will not prepare, make, use, authorize, approve or refer to any Issuer Free Writing
Prospectus that constitutes an offer to sell or solicitation of an offer to buy the Offered
Securities other than (i) any document not constituting a prospectus pursuant
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to Section
2(a)(10)(a) of the Act or Rule 134 under the Act, (ii) the Preliminary Prospectus, (iii) the
Prospectuses and (iv) the Pricing Term Sheet, in each case approved in writing in advance by
the Underwriters. Each such Issuer Free Writing Prospectus complied
in all material respects with the Act, has been or will be (within the time period
specified in Rule 433) filed in accordance with the Act (to the extent required thereby),
does not include any information that conflicts with the information contained in the
Registration Statement (including any document incorporated therein by reference and any
prospectus supplement deemed to be a part thereof that has not been superseded or modified)
and, when taken together with the Time of Sale Information, did not, and at the Closing Date
will not, contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided that the Company makes no representation and
warranty with respect to any statements or omissions made in each such Issuer Free Writing
Prospectus in reliance upon and in conformity with information relating to any Underwriter
furnished to the Company in writing by such Underwriter through the Representatives
expressly for use in any Issuer Free Writing Prospectus, it being understood and agreed that
the only such information furnished by or on behalf of any Underwriter consists of the
information described as such in the Terms Agreement..
(d) The Company has been duly incorporated, is validly existing as a corporation in
good standing under the laws of the jurisdiction of its incorporation and has the corporate
power and authority to own its property and to conduct its business as described in the Time
of Sale Information and the Prospectuses.
(e) Each significant subsidiary (as defined in Regulation S-X of the Commission) of the
Company has been duly incorporated, is validly existing as a corporation in good standing
under the laws of the jurisdiction of its incorporation, has the corporate power and
authority to own its property and to conduct its business as described in the Time of Sale
Information and the Prospectuses.
(f) The applicable Terms Agreement has been duly authorized, executed and delivered by
the Company.
(g) If Debt Securities are being offered, the applicable Indenture has been duly
qualified under the Trust Indenture Act and has been duly authorized by the Company and
(assuming due authorization, execution and delivery by the applicable trustee) constitutes
(or with respect to the Subordinated Indenture, upon execution and delivery by the Company,
will constitute) a valid and binding agreement of the Company, enforceable in accordance
with its terms except as (i) the enforceability thereof may be limited by fraudulent
transfer, bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights
generally and (ii) rights of acceleration and the availability of equitable remedies may be
limited by equitable principles of general applicability.
(h) If Debt Securities are being offered, such Debt Securities have been duly
authorized by the Company and, when executed and authenticated in accordance with the
applicable Indenture and delivered to and duly paid for by the purchasers thereof, will be
entitled to the benefits of the applicable Indenture and will be valid and binding
obligations
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of the Company, enforceable in accordance with their respective terms except as
(i) the enforceability thereof may be limited by fraudulent transfer, bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally and (ii)
rights of acceleration and the availability of equitable remedies may be limited by equitable
principles of general applicability.
(i) If the Offered Securities are convertible into or exercisable for shares of Common
Stock, the shares of Common Stock initially issuable upon conversion or exercise of such
Offered Securities have been duly authorized and reserved for issuance upon conversion or
exercise and, when issued upon conversion or exercise in accordance with the terms of the
Offered Securities, will have been validly issued and will be fully paid and non-assessable,
and the issuance of such shares is not subject to any preemptive or similar rights.
(j) If Equity Securities are being offered, such Equity Securities have been duly
authorized, and when delivered to and paid for by the Underwriters, will be validly issued,
fully paid and non-assessable and will conform to the description thereof contained in the
Time of Sale Information and the Prospectuses; and the issuance of such securities is not
subject to preemptive or similar rights.
(k) The Delayed Delivery Contracts (as defined below), if any, have been duly
authorized, executed and delivered by the Company and are valid and binding agreements of
the Company, enforceable in accordance with their respective terms except as (i) the
enforceability thereof may be limited by fraudulent transfer, bankruptcy, insolvency or
similar laws affecting creditors’ rights generally and (ii) the availability of equitable
remedies may be limited by equitable principles of general applicability.
(l) The execution and delivery by the Company of, and the performance by the Company of
its obligations under, the applicable Terms Agreement, the Indentures, the Offered
Securities and any Delayed Delivery Contract does not and will not contravene any provision
of applicable law or the certificate of incorporation or by-laws of the Company or any
agreement or other instrument binding upon the Company or any of its subsidiaries that is
material to the Company and its subsidiaries, taken as a whole, or any judgment, order or
decree of any governmental body, agency or court having jurisdiction over the Company or its
subsidiaries, and no consent, approval, authorization or order of or qualification with any
governmental body or agency is required for the performance by the Company of its
obligations under the applicable Terms Agreement, the Offered Securities, the Indentures and
any Delayed Delivery Contracts, except such as may be required by the securities or Blue Sky
laws of the various states in connection with offer and sale of the Offered Securities.
(m) Except as disclosed in the Time of Sale Information and the Prospectuses, there are
no pending actions, suits or proceedings against or affecting the Company, any of its
subsidiaries or any of their respective properties that, would individually or in the
aggregate have a material adverse effect on the Company and its subsidiaries taken as a
whole, or would materially and adversely affect the ability of the Company to perform its
obligations under the applicable Terms Agreement, the Indentures, the Offered Securities
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and
Delayed Delivery contracts, or which are otherwise material in the context of the sale of
the Offered Securities; and no such actions, suits or proceedings are overtly threatened.
(n) There are no contracts or other documents which are required to be filed as
exhibits to the Registration Statement by the Act or by the applicable rules and regulations
thereunder, or which were required to be filed as exhibits to any document incorporated by
reference in the Time of Sale Information or any Prospectus by the Exchange Act or the
applicable rules and regulations thereunder, which have not been filed as exhibits to the
Registration Statement or to such document or incorporated therein by reference as required
by the applicable rules and regulations under the Act or the applicable rules and
regulations under the Exchange Act.
(o) There has not been any material adverse change in the financial condition, business
or results of operations of the Company and its subsidiaries, taken as a whole, except as
disclosed in or contemplated by the Time of Sale Information and the Prospectuses.
(p) The Company is not an “investment company” or an entity “controlled” by an
“investment company”, as such terms are defined in the Investment Company Act of 1940, as
amended.
(q) Except as set forth in the Time of Sale Information and the Prospectuses, the
Company, its subsidiaries and the Company’s Board of Directors are in compliance, in all
material respects, with the Xxxxxxxx-Xxxxx Act of 2002 and all applicable rules and
regulations promulgated thereunder. 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 that comply, in all material respects, with the Act and the
Exchange Act.
(r) (A) At the time of initial filing of the Registration Statement, (B) at the time
of the most recent amendment thereto for the purposes of complying with Section 10(a)(3) of
the Act (whether such amendment was by post-effective amendment, incorporated report filed
pursuant to Section 13 or 15(d) of the Exchange Act or form of prospectus), and (C) at the
time the Company or any person acting on its behalf (within the meaning, for this clause
only, of Rule 163(c)) made any offer relating to the Securities in reliance on the exemption
of Rule 163, the Company was a “well known seasoned issuer” as defined in Rule 405,
including not having been an “ineligible issuer” as defined in Rule 405.
(s) The Registration Statement is an “automatic shelf registration statement,” as
defined in Rule 405, that initially became effective within three years of the date of the
Terms Agreement. If immediately prior to the Renewal Deadline (as hereinafter defined), any
of the Offered Securities remain unsold by the Underwriters, the Company will prior to the
Renewal Deadline file, if it has not already done so and is eligible to do so, a new
automatic shelf registration statement relating to the Securities, in a form reasonably
satisfactory to the Underwriters. If the Company is no longer eligible to file an
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automatic
shelf registration statement, the Company will prior to the Renewal Deadline, if it has not
already done so, file a new shelf registration statement relating to the Securities, in a
form reasonably satisfactory to the Underwriters, and will use its reasonable best
efforts to cause such registration statement to be declared effective within 180 days
after the Renewal Deadline. The Company will take all other action necessary or appropriate
to permit the public offering and sale of the Securities to continue as contemplated in the
expired registration statement relating to the Securities. References herein to the
Registration Statement shall include such new automatic shelf registration statement or such
new shelf registration statement, as the case may be. The term “Renewal Deadline” means the
third anniversary of the initial effective time of the Registration Statement.
(t) The Company has not received from the Commission any notice pursuant to Rule
401(g)(2) objecting to use of the automatic shelf registration statement form. If at any
time when Securities remain unsold by the Underwriters the Company receives from the
Commission a notice pursuant to Rule 401(g)(2) or otherwise ceases to be eligible to use the
automatic shelf registration statement form, the Company will (i) promptly notify the
Underwriters, (ii) promptly file a new registration statement or post-effective amendment on
the proper form relating to the Securities, in a form reasonably satisfactory to the
Underwriters, (iii) use its reasonable best efforts to cause such registration statement or
post-effective amendment to be declared effective as soon as practicable, and (iv) promptly
notify the Underwriters of such effectiveness. The Company will take all other action
necessary or appropriate to permit the public offering and sale of the Securities to
continue as contemplated in the registration statement that was the subject of the Rule
401(g)(2) notice or for which the Company has otherwise become ineligible. References
herein to the Registration Statement shall include such new registration statement or
post-effective amendment, as the case may be.
(u) The Company has paid or shall pay the required Commission filing fees relating to
the Securities within the time required by Rule 456(b)(1) without regard to the proviso
therein and otherwise in accordance with Rules 456(b) and 457(r).
3. Purchase and Offering of Securities. The obligation of the Underwriters, if any,
to purchase the Offered Securities will be evidenced by a terms agreement substantially in the form
of Annex II hereto (“Terms Agreement”) at the time the Company determines to sell the Offered
Securities (or any combination of Offered Securities). The Terms Agreement will incorporate by
reference the provisions of this Agreement, except as otherwise provided therein, and will specify
(1) the firm or firms which will be Underwriters and, if any, Managers, (2) the names of any
Representatives, (3) the names of any lead Managers (“Lead Managers”), (4) the applicable amount of
Offered Securities to be purchased by each Underwriter and the purchase price to be paid by the
Underwriters for the Offered Securities, (5) the terms of the Offered Securities not already
specified in the applicable Indenture or certificate of designations (including, but not limited
to, designations, denominations, exchange provisions, covenants, interest rates and payment dates,
dividend rates and payment dates, maturity, redemption provisions and sinking fund requirements),
(6) whether any of the Offered Securities may be sold to institutional investors pursuant to
Delayed Delivery Contracts (as defined below), (7) the time and date on which delivery of the
Offered Securities will be made to the Representatives for the accounts of the several Underwriters
against payment by the several Underwriters through the Representatives
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(and Managers) of the
purchase price in Federal (same-day) funds (such time and date, or such other time and date not
later than seven full business days thereafter as the Representatives (and Managers) and the
Company agree to as to time and date for payment and delivery, being
herein and in the Terms Agreement referred to as the “Closing Date”), (8) the place of
delivery and payment, (9) the Time of Sale and (10) certain other information agreed by the Company
and the Representatives. If the Company grants the Underwriters an option to purchase additional
Securities to cover over-allotment, the terms of such option (or options) will be specified in the
Terms Agreement.
The obligations of the Underwriters to purchase the Offered Securities will be several and not
joint. The Offered Securities delivered to the Underwriters on the Closing Date will be in
definitive fully registered form, in such denominations and registered in such names as the
Representatives (and Managers) may request. Certificates for the Offered Securities shall be
registered in such names and in such denominations as the Representatives (and Managers) may
request not less than two Business Days in advance of the Closing Date.
If the Terms Agreement provides for sales of Offered Securities pursuant to Delayed Delivery
Contracts, the Company authorizes the Underwriters to solicit offers to purchase Offered Securities
pursuant to delayed delivery contracts substantially in the form of Annex I attached hereto
(“Delayed Delivery Contracts”) with such changes therein as the Company may authorize or approve.
Delayed Delivery Contracts are to be with institutional investors, including commercial and savings
banks, insurance companies, pension funds, investment companies and educational and charitable
institutions. On the Closing Date the Company will pay, as compensation, to the Representatives
for the accounts of the Underwriters (and to the Managers, if applicable), the fee set forth in
such Terms Agreement in respect of the principal amount of Offered Securities to be sold pursuant
to Delayed Delivery Contracts (“Contract Securities”). The Underwriters will not have any
responsibility in respect of the validity or the performance of any Delayed Delivery Contract. If
the Company executes and delivers a Delayed Delivery Contract, the Contract Securities will be
deducted from the Securities to be purchased by the several Underwriters and the aggregate
principal amount of Offered Securities to be purchased by each Underwriter will be reduced pro rata
in proportion to the principal amount of Offered Securities set forth opposite each Underwriter’s
name in such Terms Agreement, except to the extent that the Representatives (or Managers) determine
that such reduction shall be otherwise than pro rata and so advise the Company. The Company will
advise the Representatives (and Managers) not later than the business day prior to the Closing Date
of the principal amount of Contract Securities.
4. Certain Agreements of the Company. The Company agrees with the several
Underwriters that, in connection with each offering of Securities:
(a) The Company will file the U.S. Prospectus with the Commission pursuant to and in
accordance with Rule 424(b) not later than the second business day following the execution
and delivery of the Terms Agreement, and, if required, the Company will file the
International Prospectus with the Commission pursuant to and in accordance with Rule 424(b)
not later than the second business day following the execution and delivery of the
Subscription Agreement.
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(b) At any time prior to the later of the Closing Date and the completion of the
Underwriters’ initial distribution of the Offered Securities, before amending or
supplementing the Registration Statement or the U.S. Prospectus or International Prospectus
with respect to the Securities, the Company will furnish to the Representatives (and Managers) a copy of such proposed amendment or supplement and will not file any such
proposed amendment or supplement to which the Representatives (and Managers) reasonably
object (other than Exchange Act filings to be made in the ordinary course, in which case the
Company will furnish to the Representatives a copy of such proposed filing). The Company
will also advise the Representatives (and Managers) promptly of the filing of any such
amendment or supplement and of the institution by the Commission of any stop order
proceedings in respect of the Registration Statement and will use reasonable best efforts to
prevent the issuance of any such stop order and to obtain as soon as possible its lifting,
if issued.
(c) If at any time prior to the later of the Closing Date or the completion of the
Underwriters’ initial distribution of the Offered Securities (i) any event shall occur or
condition shall exist as a result of which the Time of Sale Information, as amended or
supplemented prior to such later time, would include any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading or (ii) it is
necessary to amend or supplement the Time of Sale Information to comply with law, the
Company will immediately notify the Underwriters thereof and forthwith prepare and, subject
to Section 4(h), file with the Commission such amendments or supplements to the Time of Sale
Information as may be necessary so that the statements in the Time of Sale Information, as
so amended or supplemented, will not include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading or so that the Time of Sale
Information will comply with law.
(d) As soon as practicable after the date of each Terms Agreement, the Company will
make generally available to its security holders an earnings statement that satisfies the
provisions of Section 11(a) of the Act and Rule 158 under the Act.
(e) The Company will furnish to the Representatives (and Managers) copies of any
preliminary prospectus and any preliminary prospectus supplement, the U.S. Prospectus and
the International Prospectus, each Issuer Free Writing Prospectus and all amendments and
supplements to such documents, in each case as soon as available and in such quantities as
are reasonably requested.
(f) The Company will arrange for the qualification of the Securities for sale and the
determination of their eligibility for investment under the laws of such jurisdictions in
the United States as the Representatives (and Managers) designate and will continue such
qualifications in effect so long as required for the distribution; provided that the
Company shall not be required to qualify to do business in any jurisdiction where it is not
now qualified or to file a general consent to service of process in any jurisdiction.
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(g) Between the date of any Terms Agreement and the Closing Date specified in such
agreement, the Company will not, without the prior consent of the Representatives and the
Lead Managers, directly or indirectly, offer, sell, contract to sell, announce its intention
to sell, pledge or otherwise dispose of any Common Stock, Preferred Stock, securities
convertible or exercisable for shares of Common Stock or debt securities of the
Company having a maturity of more than one year from the date of issue, in each case,
that are similar in terms of the Offered Securities other than (a) pursuant to an employee
or director stock option plan, stock ownership plan or other equity-based compensation plan
or dividend reinvestment plan of the Company as in effect on the date of such Prospectuses,
(b) issuances of Common Stock upon conversion, exchange or exercise of securities
outstanding at the date of such Prospectuses and (c) private placements of up to 1,000,000
shares of Common Stock (or securities convertible into or exchangeable for such shares of
Common Stock) in connection with acquisitions.
(h) Before making, preparing, using, authorizing, approving, referring to or filing any
Issuer Free Writing Prospectus, the Company will furnish to the Underwriters and counsel for
the Underwriters a copy of the proposed Issuer Free Writing Prospectus for review and will
not make, prepare, use, authorize, approve, refer to or file any such Issuer Free Writing
Prospectus to which the Underwriters or counsel for the Underwriters reasonably objects.
5. Representations, Warranties and Covenants of the Underwriters. Each Underwriter
agrees that it has not used, and agrees that, unless it obtains the prior written consent of the
Company, it will not use any Issuer Free Writing Prospectus relating to the Offered Securities
other than (i) the Pricing Term Sheet and (ii) any preliminary term sheets substantially in the
form of the Pricing Term Sheet with certain pricing terms to be determined.
6. Conditions of the Obligations of the Underwriters. The obligations of the several
Underwriters to purchase and pay for the Offered Securities will be subject to the accuracy, in all
material respects, of the representations and warranties on the part of the Company herein, to the
accuracy, in all material respects, of the statements of officers of the Company made pursuant to
the provisions hereof, to the performance by the Company of its obligations hereunder and to the
following additional conditions precedent:
(a) The Representatives (and Managers) shall have received separate letters, dated the
date of the Time of Sale and the Closing Date, in form and substance satisfactory to the
Representatives (and Managers) of independent public accountants of the Company, containing
statements and information of the type ordinarily included in accountants’ “comfort letters”
to underwriters with respect to the financial statements and certain financial information
contained in the Time of Sale Information and the Prospectuses.
(b) The U.S. Prospectus, and, if applicable, the International Prospectus, shall have
been filed with the Commission in accordance with the requirements of the Act and the
applicable rules and regulations thereunder and Section 4(a) of this Agreement. No stop
order suspending the effectiveness of the Registration Statement or of any part
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thereof
shall have been issued and no proceedings for that purpose shall have been instituted or, to
the knowledge of the Company, shall be contemplated by the Commission.
(c) Subsequent to the execution and delivery of the Terms Agreement, there shall not
have occurred (i) any material adverse change in the financial condition, business or
results of operations of the Company and its subsidiaries, taken as a whole, from
that set forth in the Time of Sale Information and the Prospectuses; (ii) any
downgrading in, or notice of any proposal to downgrade, the rating of the Company’s debt
securities by any “nationally recognized statistical rating organization” (as defined for
purposes of Rule 436(g) under the Act) or any public announcement that any such organization
has under surveillance or review the rating of the Company’s debt securities with negative
implications or without indicating the direction of possible change; (iii) any suspension or
material limitation of trading in securities generally on the New York Stock Exchange or any
setting of minimum prices for trading on such exchange; (iv) any suspension of trading of
any securities of the Company on any exchange; (v) any banking moratorium declared by
Federal or New York authorities; or (vi) the outbreak or material escalation of hostilities
involving the United States or the declaration by the United States of a national emergency
or war, if the effect of any such event set forth in (i) through (vi), in the judgment of
the Representatives (and Managers), makes it impractical to proceed with the public offering
or the delivery of the Offered Securities on the terms and in the manner contemplated by the
Prospectuses.
(d) The Representatives (and Managers) shall have received from (i) Xxxxxx Xxxxxx &
Xxxxxxx llp, or other counsel to the Company reasonably acceptable to the
Representatives, an opinion and a letter each dated the Closing Date and substantially in
the forms of Exhibit A-1 and A-2 and (ii) the General Counsel of the Company, an opinion,
dated the Closing Date and substantially in the form of Exhibit B.
(e) The Representatives (and Managers) shall have received from Xxxxx Xxxx & Xxxxxxxx,
counsel for the Underwriters, such opinion or opinions, dated the Closing Date,
substantially in the form of Exhibit C, 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) The Representatives (and Managers) shall have received certificates, dated the
Closing Date, of the President or any Vice President and a principal financial or accounting
officer of the Company in which such officers (in their capacities as such) shall state
that, to the best of their knowledge, (i) the representations and warranties of the Company
in this Agreement are true and correct in all material respects, that the Company has
complied with all agreements and satisfied all conditions on its part to be performed or
satisfied hereunder at or prior to the Closing Date, (ii) no stop order suspending the
effectiveness of the Registration Statement or of any part thereof has been issued and no
proceedings for that purpose have been instituted or, to their knowledge, are contemplated
by the Commission and that (iii) subsequent to the date of the most recent financial
statements in the Time of Sale Information and the Prospectuses, there has been no material
adverse change in the financial condition, business or results of operations of
-11-
the Company
and its subsidiaries, taken as a whole, except as set forth in or contemplated by the Time
of Sale Information and the Prospectuses or as described in such certificate.
(g) Payment for and delivery of the Offered Securities to be purchased by the
Underwriters will occur simultaneously with the payment for delivery of the Offered
Securities, if any, to be purchased by the Managers.
(h) Any material required to be filed by the Company pursuant to Rule 433(d) under the
Act shall have been filed by the Company with the Commission within the applicable time
periods prescribed for such filings by Rule 433 under the Act.
7. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Underwriter and each person, if any, who controls such Underwriter within the meaning
of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all
losses, claims, damages and liabilities caused by any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement or in any amendment thereof, the Time of
Sale Information, any Issuer Free Writing Prospectus (taken together with the Time of Sale
Information) or the Prospectuses (as amended or supplemented if the Company shall have furnished
any amendments or supplements thereto), or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as such losses, claims, damages or liabilities are caused by any
such untrue statement or omission or alleged untrue statement or omission based upon information
relating to any Underwriter furnished in writing to the Company by such Underwriter through the
Representatives (or Managers) expressly for use therein.
(b) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Company, its directors, officers who sign the Registration Statement and each person, if any, who
controls the Company within the meaning of either Section 15 of the Act or Section 20 of the
Exchange Act and each other Underwriter and any person controlling such Underwriter within the
meaning of either Section 15 of the Act or Section 20 of the Exchange Act to the same extent as the
foregoing indemnity from the Company to such Underwriter, but only with reference to information
relating to such Underwriter furnished to the Company by such Underwriter in writing through the
Representatives (or Managers) expressly for use in the Registration Statement, the Time of Sale
Information, any Issuer Free Writing Prospectus or the Prospectuses or any amendments or
supplements thereto.
(c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to either paragraph (a)
or (b) above, such person (the “indemnified party”) shall promptly notify each person against whom
such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon
request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified
party to represent the indemnified party and any others the indemnifying party may designate in
such proceeding and shall pay the fees and disbursements to such counsel related to such
proceeding. In any such proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified
party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the
retention of such counsel, (ii) the named parties to any such proceeding
-12-
(including any impleaded
parties) include both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interests
between them or (iii) the indemnifying party shall have failed to retain counsel reasonably
satisfactory to the indemnified party to represent the indemnified party in any such proceeding.
It is understood that the indemnifying party shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all such indemnified
parties and that all such fees and expenses shall be reimbursed as they are incurred. Such
firm shall be designated in writing by the Representatives (and Managers), in the case of parties
indemnified pursuant to paragraph (a) above, and by the Company, in the case of parties indemnified
pursuant to paragraph (b) above. The indemnifying party shall not be liable for any settlement of
any proceeding in respect of which the indemnified party is entitled to indemnification pursuant to
paragraph (a) or (b) above effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with such consent or if there be a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any
loss or liability by reason of such settlement or judgment. No indemnifying party shall, without
the prior written consent of the indemnified party (which consent shall not unreasonably be
withheld), effect any settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and for which such indemnified party would have
been entitled to indemnity hereunder, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter of such proceeding.
(d) If the indemnification provided for in paragraph (a) or (b) of this Section 7 is
unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or
liabilities referred to therein in connection with any offering of the Offered Securities, then
each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party
thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of
such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and each Underwriter on the other from
the offering of the Offered Securities or (ii) if the allocation provided by clause (i) 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 each Underwriter on the other in connection with the statements or omissions that 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 in connection with the offering of such Offered Securities shall be deemed to be in
the same respective proportions as the total net proceeds from the offering of such Offered
Securities (before deducting expenses) received by the Company bear to the total discounts and
commissions received by the Underwriters. The relative fault of the Company on the one hand and of
each Underwriter on the other shall be determined by reference to, among other things, whether the
untrue or allegedly 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 by such Underwriter and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Underwriters’ respective obligations to contribute pursuant to
this Section 7(d) are several in proportion to the respective principal amounts of Offered
Securities purchased by each Underwriter and not joint.
-13-
(e) The Company and each Underwriter agree that it would not be just or equitable if
contribution pursuant to this Section 7 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 that
does not take account of the equitable considerations referred to in paragraph (d) above. The
amount paid or payable by an indemnified party as a result of the losses, claims, damages and
liabilities referred to in paragraph (d) above shall be deemed to include, subject to the
limitations
set forth in paragraph (c) above, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7, no Underwriter shall be required to contribute
any amount in excess of the amount by which the total price at which the Offered Securities
referred to in paragraph (d) above that were purchased through such Underwriter exceeds the amount
of any damages that 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 remedies
provided for in this Section 7 are not exclusive and shall not limit any rights or remedies which
may otherwise be available to any indemnified party at law or in equity.
8. Default of Underwriters. If any Underwriter or Underwriters default in their
obligations to purchase Offered Securities under the Terms Agreement and the aggregate number or
principal amount of the Offered Securities to be purchased on such Closing Date that such
defaulting Underwriter or Underwriters agreed but failed to purchase does not exceed 10% of the
total number or principal amount of the Offered Securities to be purchased on such date by all
Underwriters, the Representatives (and Managers) 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 the Closing Date, the non-defaulting Underwriters shall be
obligated severally, in proportion to their respective commitments under this Agreement and the
Terms Agreement, to purchase the Offered Securities that such defaulting Underwriters agreed but
failed to purchase. If any Underwriter or Underwriters so default and the aggregate number or
principal amount of the Securities with respect to which such default or defaults occur exceeds 10%
of the total number or principal amount of the Offered Securities and arrangements satisfactory to
the Representatives (and Managers) and the Company for the purchase of such Offered Securities by
other persons are not made within 36 hours after such default, such Terms Agreement will terminate
without liability on the part of any non-defaulting Underwriter or the Company, except as provided
in Section 9 (provided that if such default occurs with respect to any Optional Securities after
the First Closing Date (each as defined in the applicable Terms Agreement), this Agreement shall
not terminate as to any Offered 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. The
respective commitments of the several Underwriters for the purposes of this Section shall be
determined without regard to reduction in the respective Underwriters’ obligations to purchase the
number or principal amount of the Offered Securities set forth opposite their names in the Terms
Agreement as a result of Delayed Delivery Contracts entered into by the Company.
The agreements set forth in this Section will not apply if the Terms Agreement specifies that
such agreements will not apply.
-14-
9. 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 result
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 Terms Agreement is terminated pursuant to Section 8 or
if for any reason the purchase of the Offered Securities by the Underwriters under the Terms
Agreement is not consummated, the respective obligations of the Company and the Underwriters
pursuant to Section 7 shall remain in effect, and if any Offered Securities have been purchased
hereunder the representations and warranties in Section 2 and all obligations under Section 4 shall
also remain in effect. If the purchase of the Offered Securities by the Underwriters is not
consummated for any reason other than the termination of the Terms Agreement pursuant to Section 8
or the occurrence of any event specified in clause (iii), (iv), (v) or (vi) of Section 6(c), the
Company will reimburse the Underwriters for all out-of-pocket expenses (including reasonable fees
and disbursement of counsel) reasonably incurred by them in connection with the offering of the
Offered Securities.
10. Notices. All communications hereunder will be in writing, may be sent by mail,
facsimile, telegraphed and confirmed or otherwise delivered, if to the Underwriters, at their
addresses furnished to the Company in writing for the purpose of communications hereunder and, if
to the Company, at Praxair, Inc., 00 Xxx Xxxxxxxxx Xxxx, Xxxxxxx, Xxxxxxxxxxx 00000-0000,
Attention: Vice President and Treasurer.
11. Successors. This Agreement will inure to the benefit of and be binding upon the
Company and such Underwriters as are identified in the Terms Agreement and their respective
successors and the officers and directors and controlling persons referred to in Section 7, and no
other person will have any right or obligation hereunder.
12. Applicable Law. These Standard Provisions and the Terms Agreement shall be
governed by, and construed in accordance with, the laws of the State of New York, without regard to
principles of conflicts of laws. Each of the Company and the Underwriters 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 these Standard Provisions and
the Terms Agreement or the transactions contemplated thereby.
13. No Fiduciary Duty. The Company hereby acknowledges that (a) each Underwriter is
acting solely as underwriter of the offering of the Offered Securities and not as advisor to, or
agent of, the Company and (b) each Underwriter is acting as an independent contractor and not in
any other capacity, including as a fiduciary, in connection with the offering of the Offered
Securities. Furthermore, the Company and each Underwriter agrees that it is solely responsible for
making its own independent judgments with respect to the offering of the Offered Securities. 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.
-15-
ANNEX I
[PRAXAIR, INC.]
[Insert specific title of securities]*
DELAYED DELIVERY CONTRACT
[Insert date of initial public offering],1 20
Praxair, Inc.
00 Xxx Xxxxxxxxx Xxxx
Xxxxxxx, Xxxxxxxxxxx 00000-0000
00 Xxx Xxxxxxxxx Xxxx
Xxxxxxx, Xxxxxxxxxxx 00000-0000
Attention:
Ladies and Gentlemen:
The undersigned hereby agrees to purchase from Praxair, Inc., a Delaware corporation (the
“Company”), and the Company agrees to sell to the undersigned, [If one delayed closing, insert — as
of the date hereof, for delivery on , 20___ (“Delivery Date”)]
[ shares of the Company’s (title of Securities] (the “Securities”), offered by the Company’s
Prospectus relating thereto, receipt of a copy of which is hereby acknowledged, at a purchase price
of
$ per share, and on the further terms and conditions set forth in this contract.]
[$ principal amount of the Company’s (title of Securities] (the “Securities”), offered
by the Company’s Prospectus relating thereto, receipt of a copy of which is hereby acknowledged, at
a purchase price of ___% of the principal amount thereof plus accrued interest, if any, and on the
further terms and conditions set forth in this contract.]
[The undersigned will purchase from the Company as of the date hereof, for delivery on the
dates set forth below, Securities in the principal amounts set forth below:
| Delivery Date | Principal Amount | |
Each of such delivery dates is hereinafter referred to as a “Delivery Date”.]
Payment for the Securities that the undersigned has agreed to purchase for delivery on each
Delivery Date shall be made to the Company or its order by certified or official bank check
| 1 | To be completed when the Terms Agreement is executed by the parties thereto. |
in New York Clearing House (next day) funds at the office of at 10:00 A.M. on
such Delivery Date upon delivery to the undersigned of the Securities to be purchased by the
undersigned on such Delivery Date in definitive fully registered form and in such denominations and
registered in such names as the undersigned shall designate by written or telegraphic communication
addressed to the Company not less than three business days prior to such Delivery Date.
It is expressly agreed that the provisions for delayed delivery and payment are for the sole
convenience of the undersigned; that the purchase hereunder of Securities is to be regarded in all
respects as a purchase as of the date of this contract [subject, in the case of debt securities, to
the first paragraph hereof with respect to the accrual of interest]; that the obligation of the
Company to make delivery of and accept payment for, and the obligation of the undersigned to take
delivery of and make payment for, Securities on each Delivery Date shall be subject only to the
conditions that (1) investment in the Securities shall not at such Delivery Date be prohibited
under the laws of any jurisdiction in the United States to which the undersigned is subject and
which governs the undersigned’s investment in the Securities and (2) the Company shall have sold to
the Underwriters the principal amount of the Securities less the principal amount thereof covered
by this and other similar contracts. The undersigned represents that its investment in the
Securities is not, as of the date hereof, prohibited under the laws of any jurisdiction to which
the undersigned is subject and which governs such investment.
Promptly after completion of the sale to the Underwriters the Company will mail or deliver to
the undersigned at its address set forth below notice to such effect, accompanied by a copy of the
opinion of counsel for the Company delivered to the Underwriters in connection therewith.
This contract will inure to the benefit of and be binding upon the parties hereto and their
respective successors, but will not be assignable by either party hereto without the written
consent of the other.
It is understood that the acceptance of any such contract is in the Company’s sole discretion
and, without limiting the foregoing, need not be on a first-come, first served basis. If this
contract is acceptable to the Company, it is requested that the Company sign the form of acceptance
below and mail or deliver one of the counterparts hereof to the undersigned at its address set
forth below. This will become a binding contract between the Company and the undersigned when such
counterpart is so mailed or delivered.
-2-
This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York.
| Very truly yours, | ||||
| (Name of Purchaser) | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| (Address of Purchaser) | ||||
Accepted, as of the above date
PRAXAIR, INC.
By: |
||||
| Title: |
-3-
ANNEX II
TERMS AGREEMENT
, 20
Praxair, Inc
00 Xxx Xxxxxxxxx Xxxx
Xxxxxxx, Xxxxxxxxxxx 00000-0000
00 Xxx Xxxxxxxxx Xxxx
Xxxxxxx, Xxxxxxxxxxx 00000-0000
Ladies and Gentlemen:
We [(the “Representative(s)”)] [(the “Manager(s)”)] understand that Praxair, Inc., a Delaware
corporation (the “Company”), proposes to issue and sell [[$ aggregate principal amount]
or [shares]] of its [senior debt securities/subordinated debt securities/preferred stock/common
stock] (the “Offered Securities”) covered by the Registration Statement on Form S-3 (No. 333- )
(the “Registration Statement”) filed by the Company. Subject to the terms and conditions set forth
herein or incorporated by reference herein, the [Underwriters] [(Managers)] named in Schedule I
attached hereto agree to purchase, severally and not jointly, the Offered Securities in the amounts
set forth opposite our respective names on such Schedule. The closing in respect of the purchase
and sale of the Offered Securities shall occur on at [a.m] (the “Closing Date”) at
the offices of .
All the provisions contained in the Praxair, Inc. Standard Underwriting Agreement Provisions
(December 14, 2006 edition), other than the form of [Delayed Delivery Contract attached thereto as
Annex I and] Terms Agreement attached thereto as Annex II (the “Standard Provisions”), a copy of
which is filed as an exhibit to the Registration Statement, are incorporated herein by reference in
their entirety and shall be deemed to be a part of this Terms Agreement to the same extent as if
the Standard Provisions had been set forth in full herein. Terms defined in the Standard
Provisions are used herein as therein defined.
For purposes of Sections 2 and 7 of the Standard Provisions, the only information furnished to
the Company by any [Underwriter] [Manager] for use in the [U.S.] [International] Prospectus
consists of the following information in the [U.S.] [International] Prospectus furnished on behalf
of each Underwriter [Manager]: the last paragraph at the bottom of the prospectus supplement cover
page concerning the terms of the offering by the [Underwriters] [Managers], the legend concerning
over-allotments and stabilizing on the inside front cover page of the prospectus supplement and,
the information contained in the [5th, 6th, 7th and 8th][5th, 6th, 7th, 8th and 9th] paragraphs
under the caption [“Underwriting”][“Subscription and Sale”] in the prospectus supplement.
Date of Basic Prospectus: .
Date of Preliminary Prospectus Supplement: .
Date of Prospectus Supplement: .
Time
of Sale: [a.m./p.m.] New York City time.
Name[s] and Address[es] of Representative[s] [Lead Manager[s]]:
The Offered Securities shall have the following terms: [include one or more of the following,
as appropriate]
[DEBT SECURITIES]
Title:
Maturity:
Interest Rate:
Interest payment dates:
Redemption provisions:
Purchase Price: % of the principal amount thereof
Public Offering Price: % of the principal amount thereof, plus accrued interest from
Additional Terms:
[Preferred Stock]
Title:
Liquidation Preference: $ per share
Dividend Rate: $ per share
Dividend payment dates:
Redemption provisions:
Purchase Price: $ per share
Public Offering Price: $ per share
Additional Terms:
[Common Stock]
Purchase Price: $ per share
Public Offering Price: $ per share
-2-
which terms shall be set forth in a pricing term sheet substantially in the form of Exhibit 1
attached hereto (the “Pricing Term Sheet”).
[Over-allotment Option: (“Optional Securities”)]
[Upon written notice from the Representatives (and Managers) given to the Company from time to
time prior to
, 20___, the Underwriters may purchase all or less than
all of the Optional Securities at the purchase price [If debt issue, insert — per principal amount
of Offered Securities (including any accrued interest thereon to the related Optional Closing
Date)] [If preferred stock issue, insert — per Offered Security (including any accumulated
dividends thereon to the related Optional Closing Date)] [If common stock issue, insert — per
Offered Security] to be paid for the Firm Securities. The Company agrees to sell to the
Underwriters the [principal amount] [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 [principal amount] [number of shares] of Firm Securities (subject to adjustment
by the Representatives (and Managers) 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 (and Managers) to the Company.
Each time for the delivery of any 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 (and Lead Managers) but shall not be later than three 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 the
Representatives (and Lead Managers) for the accounts of the several Underwriters, against payment
of the purchase price therefor by certified or official bank check or checks in Federal (same-day)
funds drawn to the order of the Company at the office of The [If stock
issue, insert — certificates for the] Optional Securities being purchased on each Optional Closing
Date will be in definitive [If debt issue, insert — fully registered] form, in such denominations
and registered in such names as [ ]) requests upon reasonable notice prior to
such Optional Closing Date and will be made available for checking and packaging at the office of
at
a reasonable time in advance of such Optional Closing Date.
[The Offered Securities will be made available for checking and packaging at the office of
at least 24 hours prior to the Closing Date.]
[We represent that we are authorized to act for the several Underwriters named in Schedule I
hereto in connection with this financing and any action under this agreement by any of us will be
binding upon all the Underwriters [Managers]].
-3-
This Terms Agreement may be executed in one or more counterparts, all of which counterparts
shall constitute one and the same instrument.
-4-
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to us the enclosed duplicate hereof, whereupon it will become a binding agreement among the
Company, and the several Underwriters in accordance with its terms.
| Very truly yours, | ||||
| [NAMES OF REPRESENTATIVES] | ||||
| On behalf of themselves and
as Representatives of the
Several Underwriters |
||||
| By: | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| [NAME OF LEAD MANAGERS] | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| [NAMES OF ANY OTHER MANAGERS] | ||||
| Each by its duly authorized Attorney-in-Fact | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
The foregoing Terms Agreement is
hereby confirmed as of the date
first above written
PRAXAIR, INC.
By: |
||||
| Title: |
-5-
SCHEDULE A
| Amount of | ||||
| Offered Securities | ||||
| Underwriter[s]Manager[s]] | to be Purchased | |||
Total |
$ | |||
Exhibit 1 — Pricing Term Sheet (Debt Offering)
Final Term Sheet
Filed pursuant to Rule 433
Dated [ ]
Relating to
Prospectus Supplement dated [ ] to
Registration Statement No. 333- [ ]
Filed pursuant to Rule 433
Dated [ ]
Relating to
Prospectus Supplement dated [ ] to
Registration Statement No. 333- [ ]
$[ ] [ ]% Notes due [ ]
Issuer:
|
Praxair, Inc. | |||||
Principal Amount:
|
$ | [ ] | ||||
Title of Securities:
|
[ ] | |||||
Trade Date:
|
[ ] | |||||
Original Issue Date (Settlement Date):
|
[ ] | |||||
Maturity Date:
|
[ ] | |||||
Yield to Maturity:
|
[ ] | |||||
Spread to Benchmark Treasury:
|
[ ] | |||||
Benchmark Treasury:
|
[ ] | |||||
Benchmark Treasury Price and Yield:
|
[ ] | |||||
Public Offering Price (Issue Price):
|
[ ]% of the Principal Amount thereof | |||||
Underwriting Spread:
|
[ ]% | |||||
Interest Rate:
|
[ ]% per annum | |||||
Interest Payment Dates:
|
Semi-annually in arrears on each [ ] and [ ], commencing [ ]. | |||||
Redemption Provision:
|
[ ] | |||||
Bookrunner(s):
|
[ ] | |||||
Co-Manager(s):
|
[ ] |
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
XXXXX on the SEC website at xxx.xxx.xxx. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
[insert Underwriters name(s) and phone number(s)].
Any disclaimers or other notices that may appear below are not applicable to this communication and
should be disregarded. Such disclaimers or other notices were automatically generated as a result
of this communication being sent via Bloomberg or another email system.
-2-
Exhibit 2 — Additional Time of Sale Information
[List, if any]
-3-
EXHIBIT A-1
[FORM OF OPINION OF COUNSEL TO THE COMPANY]
l. If Debt Securities are being issued, the applicable Indenture has been duly authorized,
executed and delivered by the Company and (assuming the due authorization, execution and delivery
by the Trustee) is a valid and binding obligation of the Company, enforceable in accordance with
its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, fraudulent transfer or similar laws affecting creditors’ rights generally and by
general principles of equity.
2. If Debt Securities are being issued, such Debt Securities have been duly authorized and
executed and when such Debt Securities have been authenticated in accordance with the applicable
Indenture and delivered to and paid for by the purchasers thereof such Debt Securities will be
valid and binding obligations of the Company, enforceable against the Company in accordance with
their respective terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, fraudulent transfer or similar laws affecting creditors’ rights
generally and by general principles of equity, and will be entitled to the benefit of the
Indenture. The Indenture has been qualified under the Trust Indenture Act of 1939, as amended.
3. If the Offered Securities are convertible into Common Stock, the shares of Common Stock
issuable upon conversion of such Offered Securities have been duly and validly authorized and
reserved for issuance upon such conversion by all necessary corporate action and such shares, when
issued upon such conversion, will be duly authorized and validly issued, fully paid and
non-assessable, and the issuance of such shares upon such conversion will not be subject to
preemptive or other similar rights.
4. If Equity Securities are being offered, such Equity Securities have been duly authorized
and are validly issued, fully paid and non-assessable; and the issuance of such securities is not
subject to preemptive or similar rights.
5. The statements under the captions “Description of Debt Securities” and “Description of
Capital Stock” in the Preliminary Prospectus and the Pricing Term Sheet (collectively, the “Pricing
Disclosure Package”), insofar as such statements constitute a summary of legal matters or
documents, are accurate in all material respects.
6. The Terms Agreement has been duly authorized, executed and delivered by the Company[, and
any Delayed Delivery Contract has been duly authorized, executed and delivered by the Company].
7. The Registration Statement has been declared effective under the Act, no stop order
suspending its effectiveness has been issued, and no proceedings for that purpose have been
instituted or are pending or, to the knowledge of such counsel, threatened by the Commission.
8. The Registration Statement, as of its effective date, and the Pricing Disclosure Package,
as of the Time of Sale, and the Prospectuses, as of the date hereof (other than the financial
statements, related schedules and statistical information of a financial nature contained or
incorporated therein, as to which we have not been asked to, and do not, express any opinion),
appear on their face to have complied as to form in all material respects with the requirements of
the Act and the applicable rules and regulations thereunder.
9. The Company is not an “investment company” or an entity “controlled” by an “investment
company”, as such terms are defined in the Investment Company Act of 1940, as amended.
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EXHIBIT A-2
[FORM OF LETTER OF COUNSEL TO THE COMPANY]
We have participated in conferences with officers and other representatives of the Company,
representatives of the independent registered public accounting firm for the Company,
representatives of counsel for the Underwriters and representatives of the Underwriters at which
the contents of the Registration Statement, the Prospectuses and the Pricing Disclosure Package and
related matters were discussed. Although we have made certain inquiries and investigations in
connection with the preparation of the Registration Statement, the Prospectuses and the Pricing
Disclosure Package, the limitations inherent in the role of outside counsel are such that we cannot
and do not assume any responsibility for the accuracy, completeness or fairness of the statements
contained in such documents, except as provided in paragraph [
]2 of our opinion to you
of even date herewith. Subject to the foregoing, we advise you that no facts have come to our
attention that lead us to believe that (i) the Registration Statement, as of the date of the Terms
Agreement, contained an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not misleading, (ii) the
Prospectus, as of its date or as of the date hereof, contained or contains an untrue statement of a
material fact or omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading or
(iii) the Pricing Disclosure Package, taken together, as of the Time of Sale, contained an untrue
statement of a material fact or omitted to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading
(it being understood that we express no comment with respect to the financial statements or other
financial data that is included in or omitted from the Registration Statement, the Prospectuses or
the Pricing Disclosure Package or on any of the information contained in the Statement of
Eligibility on Form T-1 of the Trustee).
| 2 | Paragraph 5 in Exhibit A-1 to Standard Provisions. |
EXHIBIT B
[FORM OF OPINION OF GENERAL COUNSEL OF THE COMPANY]
1. The Company has been duly incorporated, is validly existing as a corporation in good
standing under the laws of the State of Delaware and has the corporate power and authority to own
its properties and conduct its business as described in the Pricing Disclosure Package and the
Prospectuses.
2. To the best of my knowledge, no consent, approval, authorization or other order of, or
filing with, any governmental agency or body or any court in the United States of America is
required for the consummation of the transactions contemplated by the Terms Agreement in connection
with the issuance or sale of the Offered Securities by the Company, except such as have been
obtained and made under the Act and the Trust Indenture Act and such as may be required under state
securities laws and, except to the extent that the failure to make or maintain such consents,
approvals, authorizations, orders or filings will not, individually or in the aggregate, have a
material adverse effect on the Company and its subsidiaries, taken as a whole.
3. To the best of my knowledge, there are no litigation or governmental proceedings pending or
overtly threatened against the Company or any of its subsidiaries which is required to be disclosed
in the Pricing Disclosure Package or the Prospectus which are not disclosed therein.
4. To the best of my knowledge, there are no contracts or other documents which are required
to be filed as exhibits to the Registration Statement by the Act or by the applicable rules and
regulations thereunder, or which are required to be filed by the Exchange Act or the rules and
regulations thereunder as exhibits to any documents incorporated by reference in the Pricing
Disclosure Package or the Prospectus, which have not been filed as exhibits to the Registration
Statement or to such document or incorporated therein by reference as required by the applicable
rules and regulations under the Act or the Exchange Act.
5. The execution, delivery and performance of[, as applicable, the Indentures and] the Terms
Agreement, and the issuance and sale of the Offered Securities, and compliance with the terms and
provisions thereof, will not, to my knowledge, result in any breach or violation of any of the
terms and provisions of, or constitute a default under, any statute, any rule or regulation of any
governmental agency or body of the United States applicable to the Company (other than state
securities laws as to which I have not been asked to, and do not, express any opinion) or the
certificate of incorporation or by-laws of the Company, and the Company has the corporate power and
authority to authorize, issue and sell the Offered Securities as contemplated by the Terms
Agreement.
EXHIBIT C
[FORM OF OPINION OF COUNSEL FOR THE UNDERWRITERS]
1. If Debt Securities are being issued, the applicable indenture has been duly qualified under
the Trust Indenture Act and has been duly authorized, executed and delivered by the Company and is
a valid and binding agreement of the Company, enforceable in accordance with its terms except as
(i) the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer or similar laws affecting creditors’ rights generally and (ii) rights of acceleration and
the availability of equitable remedies may be limited by equitable principles of general
applicability.
2. If Debt Securities are being issued, such Debt Securities have been duly authorized by the
Company and established in conformity with the provisions of the applicable Indenture and, when
such Debt Securities have been executed by the Company and authenticated by the Trustee in
accordance with the provisions of the applicable Indenture and delivered to and duly paid for by
the purchasers thereof, they will be entitled to the benefits of such Indenture and will be valid
and binding obligations of the Company, enforceable in accordance with their terms, except as (i)
the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer or similar laws affecting creditors’ rights generally and (ii) rights of acceleration and
the availability of equitable remedies may be limited by equitable principles of general
applicability.
3. The Terms Agreement has been duly authorized, executed and delivered by the Company.
4. If the Offered Securities are convertible into Common Stock, the shares of Common Stock
issuable upon conversion of such Offered Securities have been duly and validly authorized and
reserved for issuance upon such conversion by all necessary corporate action and such shares, when
issued upon such conversion, will be duly authorized and validly issued, fully paid and
non-assessable.
5. If Equity Securities are being offered, such Equity Securities have been duly authorized
and are validly issued, fully paid and non-assessable.
We have considered the matters required to be included in the Registration Statement,
Prospectuses and Time of Sale Information and the information contained therein. We are of the
opinion that the statements in the Time of Sale Information and the Prospectuses under the captions
“Description of Debt Securities”, “Description of Capital Stock” and “Plan of Distribution”,
insofar as such statements constitute summaries of the documents referred to therein, fairly
present the information called for with respect to such documents.
We have not ourselves checked the accuracy or completeness of, or otherwise verified, the
information furnished with respect to other matters in the Registration Statement, the Time of Sale
Information or the Prospectus but we have generally reviewed and discussed with your
representatives and with certain officers and employees of, and counsel and independent public
accountants for, the Company the information furnished, whether or not subject to our check and
verification. On the basis of such consideration, review and discussion, but without
independent check or verification, except as stated herein, (i) in our opinion the Registration
Statement and the Prospectus appear on their face to be appropriately responsive in all material
respects to the requirements of the Act, (ii) nothing has come to our attention that causes us to
believe that, insofar as relevant to the offering of the Securities, (a) on the date of the Terms
Agreement, the Registration Statement or the Time of Sale Information contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, (b) the Prospectus, as of the date of the
Terms Agreement or as of the date hereof, contained or contains any untrue statement of a material
fact or omitted or omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. In
expressing the foregoing opinion and belief, we have not been called to pass upon, and we express
no opinion or belief as to, the financial statements, related schedules and statistical information
of a financial nature contained or incorporated by reference in the Registration Statement, the
Time of Sale Information or the Prospectus, and the Statement of Eligibility and Qualification of
the Trustee on Form T-1. In addition, we express no opinion or belief as to the conveyance of the
Time of Sale Information or the information contained therein to investors.
We have examined the opinions of Xxxxxx Xxxxxx & Xxxxxxx, counsel for the Company, and of the
General Counsel of the Company, each dated the date hereof and delivered to you pursuant to Section
5(d) of the Underwriting Agreement, and we believe that such opinions are appropriately responsive
to the requirements of the Underwriting Agreement.
We have also examined the letters of PricewaterhouseCoopers LLP dated the date of the Terms
Agreement and the date hereof relating to the financial statements and other information contained
or incorporated by reference in the Registration Statement, the Time of Sale Information or the
Prospectus, and the other matters referred to in such letter, delivered to you pursuant to Section
5(a) of the Underwriting Agreement. We participated in discussions with representatives of
PricewaterhouseCoopers LLP, representatives of the Company and your representatives relating to the
form of such letter, and we believe that it is substantially in the form agreed to.
We are members of the Bar of the State of New York and the foregoing opinion is limited to the
laws of the State of New York, the General Corporation Law of the State of Delaware and the federal
laws of the United States of America.
This opinion is rendered solely to you in connection with the above matter. This opinion may
not be relied upon by you for any other purpose or relied upon by or furnished to any other person
without our prior written consent.
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