NEWMONT MINING CORPORATION as Issuer NEWMONT USA LIMITED As Guarantor Underwriting Agreement
Exhibit 1.2
NEWMONT MINING CORPORATION
as Issuer
NEWMONT USA LIMITED
As Guarantor
3.00% Convertible Senior Notes due 2012
Underwriting Agreement
January 28, 2009
Citigroup Global Markets Inc.
X.X. Xxxxxx Securities Inc.
As Representatives of the
several Underwriters listed
in Schedule 1 hereto
X.X. Xxxxxx Securities Inc.
As Representatives of the
several Underwriters listed
in Schedule 1 hereto
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
and
c/o X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Newmont Mining Corporation, a Delaware corporation (the “Company”), proposes to issue and sell
to the several Underwriters listed in Schedule 1 hereto (the “Underwriters”), for whom you are
acting as representatives (the “Representatives”), $450,000,000 principal amount of its 3.00%
Convertible Senior Notes due 2012 (the “Underwritten Securities”) and, at the option of the
Underwriters, up to an additional $67,500,000 principal amount of its 3.00% Convertible Senior
Notes due 2012 (the “Option Securities”) if and to the extent that the Underwriters shall have
determined to exercise the option to purchase such 3.00% Convertible Senior Notes due 2012 granted
to the Underwriters in Section 2 hereof. Payment of principal of, and interest, if any, on, the
Securities will be guaranteed by Newmont USA Limited, a Delaware corporation, as guarantor (the
“Guarantor”), pursuant to the terms and conditions of the guaranty issued under the Indenture (as
defined below) (the “Guaranty”). The Securities and the Guaranty will be issued pursuant to an
Indenture to be dated as of February 3, 2009 (the “Indenture”) among the Company, the Guarantor
and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). The
Underwritten Securities and the Option Securities are herein referred to as the “Securities”. The
Securities will be convertible into shares (the “Underlying Securities”) of common stock of the
Company, par value $1.60 per share (the “Common Stock”).
Each of the Company and the Guarantor, jointly and severally, hereby confirms its agreement
with the several Underwriters concerning the purchase and sale of the Securities, as follows:
1. Registration Statement. The Company has prepared and filed with the Securities and
Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended, and the rules
and regulations of the Commission thereunder (collectively, the “Securities Act”), a registration
statement on Form S-3ASR (File No. 333-146720), including a prospectus, relating to the Securities.
Such registration statement, as amended at the time it became effective, including the
information, if any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to be part
of the registration statement at the time of its effectiveness (“Rule 430 Information”), is
referred to herein as the “Registration Statement”; and as used herein, the term “Preliminary
Prospectus” means each prospectus included in such registration statement (and any amendments
thereto) before effectiveness, any prospectus filed with the Commission pursuant to Rule 424(a)
under the Securities Act and the prospectus included in the Registration Statement at the time of
its effectiveness that omits Rule 430 Information, and the term “Prospectus” means the prospectus
in the form first used (or made available upon request of purchasers pursuant to Rule 173 under the
Securities Act) in connection with confirmation of sales of the Securities. If the Company has
filed an abbreviated registration statement pursuant to Rule 462(b) under the Securities Act (the
“Rule 462 Registration Statement”), then any reference herein to the term “Registration Statement”
shall be deemed to include such Rule 462 Registration Statement. Any reference in this Agreement
to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to
refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form
S-3 under the Securities Act, as of the effective date of the Registration Statement or the date of
such Preliminary Prospectus or the Prospectus, as the case may be, and any reference to “amend”,
“amendment” or “supplement” with respect to the Registration Statement, any Preliminary Prospectus
or the Prospectus shall be deemed to refer to and include any documents filed after such date under
the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder (collectively, the “Exchange Act”) that are deemed to be incorporated by reference
therein. Capitalized terms used but not defined herein shall have the meanings given to such terms
in the Registration Statement and the Prospectus.
At or prior to the Applicable Time (as defined below), the Company had prepared the following
information (collectively, the “Pricing Disclosure Package”): a Preliminary Prospectus dated
January 27, 2009 and each “free-writing prospectus” (as defined pursuant to Rule 405 under the
Securities Act) listed on Annex C hereto.
“Applicable Time” means 5:00 P.M., New York City time, on January 28, 2009.
2. Purchase of the Securities by the Underwriters.
(a) On the basis of the representations, warranties and agreements set forth herein and
subject to the conditions set forth herein (i) the Company agrees to issue and sell the
Underwritten Securities to the several Underwriters as provided in this Agreement, (ii) the
Guarantor agrees to issue and deliver the Guaranty, and (iii) each Underwriter agrees, severally
and not jointly, to purchase from the Company and the Guarantor the respective principal amount of
Underwritten Securities set forth opposite such Underwriter’s name in Schedule 1 hereto at a price
equal to 97.50% of the principal amount thereof (the “Purchase Price”) plus accrued interest, if
any, from February 3, 2009 to the Closing Date (as defined below).
On the basis of the representations, warranties and agreements set forth herein and subject to
the conditions set forth herein, (i) the Company agrees to issue and sell the Option Securities to
the several Underwriters as provided in this Agreement, and (ii) the Underwriters shall have the
option to purchase,
severally and not jointly, from the Company the Option Securities at the Purchase Price plus
accrued interest, if any, from the Closing Date to the date of payment and delivery. The Guarantor
agrees that the Option Securities shall have the benefit of the Guaranty.
If any Option Securities are to be purchased, the amount of Option Securities to be purchased
by each Underwriter shall be the amount of Option Securities which bears the same ratio to the
aggregate amount of Option Securities being purchased as the amount of Underwritten Securities set
forth opposite the name of such Underwriter in Schedule 1 hereto (or such amount increased as set
forth in Section 10 hereof) bears to the aggregate amount of Underwritten Securities being
purchased from the Company by the several Underwriters, subject, however, to eliminate Securities
in denominations other than $1,000 as the Representatives in their sole discretion shall make.
The Underwriters may exercise the option to purchase Option Securities at any time in whole,
or from time to time in part, on or before the thirteenth day following the date of the Prospectus,
by written notice from the Representatives to the Company. Such notice shall set forth the
aggregate amount of Option Securities as to which the option is being exercised and the date and
time when the Option Securities are to be delivered and paid for, which may be the same date and
time as the Closing Date (as hereinafter defined) but shall not be earlier than the Closing Date or
later than the first to occur of the tenth full business day (as hereinafter defined) after the
date of such notice (unless such time and date are postponed in accordance with the provisions of
Section 10 hereof) or the thirteenth day following the Closing Date. Any such notice shall be
given at least two business days prior to the date and time of delivery specified therein. No
Option Securities shall be sold or delivered unless the Underwritten Securities previously have
been, or simultaneously are, sold and delivered.
(b) The Company and the Guarantor understand that the Underwriters intend to make a public
offering of the Securities as soon after the effectiveness of this Agreement as in the judgment of
the Representatives is advisable, and initially to offer the Securities on the terms set forth in
the Prospectus. The Company and the Guarantor acknowledge and agree that the Underwriters may
offer and sell Securities to or through any affiliate (as hereinafter defined) of an Underwriter.
(c) Payment for the Securities shall be made by wire transfer in immediately available funds
to the account specified by the Company to the Representatives in the case of the Underwritten
Securities, at the offices of Xxxxxxxx & Xxxxxxxx LLP, 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
at 10:00 A.M., New York City time, on February 3, 2009, or at such other time or place on the same
or such other date, not later than the fifth business day thereafter, as the Representatives and
the Company may agree upon in writing or, in the case of the Option Securities, on the date and at
the time and place specified by the Representatives in the written notice of the Underwriters’
election to purchase such Option Securities. The time and date of such payment for the
Underwritten Securities is referred to herein as the “Closing Date”, and the time and date for such
payment for the Option Securities, if other than the Closing Date, is herein referred to as the
“Additional Closing Date”.
Payment for the Securities to be purchased on the Closing Date or the Additional Closing Date,
as the case may be, shall be made against delivery to the Representatives for the respective
accounts of the several Underwriters of the Securities to be purchased on such date or the
Additional Closing Date, as the case may be, with any transfer taxes payable in connection with the
sale of such Securities duly paid by the Company. Delivery of the Securities shall be made through
the facilities of The Depository Trust Company (“DTC”) unless the Representatives shall otherwise
instruct. The Global Note for the Securities will be made available for inspection by the
Representatives at the office of X.X. Xxxxxx Securities Inc. set forth above not later than 1:00
P.M., New York City time, on the business day prior to the Closing Date or the Additional Closing
Date, as the case may be.
(d) The Company and the Guarantor acknowledge and agree that the Underwriters are acting
solely in the capacity of an arm’s length contractual counterparty to the Company and Guarantor
with respect to the offering of Securities contemplated hereby (including in connection with
determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an
agent of, the Company, the Guarantor or any other person. Additionally, neither the
Representatives nor any other Underwriter is advising the Company, the Guarantor or any other
person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction.
The Company and the Guarantor shall consult with their own respective advisors concerning such
matters and shall be responsible for making its own independent investigation and appraisal of the
transactions contemplated hereby, and the Underwriters shall have no responsibility or liability to
the Company or the Guarantor with respect thereto. Any review by the Underwriters of the Company
and the Guarantor and the transactions contemplated hereby or other matters relating to such
transactions will be performed solely for the benefit of the Underwriters and shall not be on
behalf of the Company, the Guarantor or any other person.
3. Representations and Warranties of the Company. The Company and the Guarantor,
jointly and severally, represent and warrant to each Underwriter that:
(a) Preliminary Prospectus. No order preventing or suspending the use of any
Preliminary Prospectus has been issued by the Commission, and each Preliminary Prospectus
included in the Pricing Disclosure Package, at the time of filing thereof, complied in all
material respects with the Securities Act, and no Preliminary Prospectus, at the time of
filing thereof, contained any 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; provided that the Company
and the Guarantor make no representation and warranty with respect to any statements or
omissions made 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 Preliminary Prospectus, it being understood and
agreed that the only such information furnished by any Underwriter consists of the
information described as such in Section 7(b) hereof.
(b) Pricing Disclosure Package. The Pricing Disclosure Package as of the Applicable
Time did not, and as of the Closing Date and as of the Additional Closing Date, as the case
may be, 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
and the Guarantor make no representation and warranty with respect to any statements or
omissions made 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 such Pricing Disclosure Package, it being understood
and agreed that the only such information furnished by any Underwriter consists of the
information described as such in Section 7(b) hereof.
(c) Issuer Free Writing Prospectus. Other than the Registration Statement, the
Preliminary Prospectus and the Prospectus, the Company and the Guarantor (including their
agents and representatives, other than the Underwriters in their capacity as such) have not
prepared, used, authorized, approved or referred to and will not prepare, use, authorize,
approve or refer to any “written communication” (as defined in Rule 405 under the Securities
Act) that constitutes an offer to sell or solicitation of an offer to buy the Securities
(each such communication by the Company, the Guarantor, or their agents and representatives
(other than a communication referred to in clause (i) below) an “Issuer Free Writing
Prospectus”) other than (i) any document not constituting a prospectus pursuant to Section
2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act or (ii) the documents
listed on Annex C hereto, any
electronic road show and any other written communications approved in writing in
advance by the Representatives. Each such Issuer Free Writing Prospectus (w) complied in
all material respects with the Securities Act, (x) has been or will be (within the time
period specified in Rule 433) filed in accordance with the Securities Act (to the extent
required thereby), (y) does not include any information that conflicts with the information
contained in the Registration Statement, including any document incorporated by reference
therein that has not be superseded or modified and (z) when taken together with the
Preliminary Prospectus accompanying, or delivered prior to delivery of, such Issuer Free
Writing Prospectus, did not, and as of the Closing Date and as of the Additional Closing
Date, as the case may be, 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 and the Guarantor make no representation and warranty with respect to any statements
or omissions made in each such Issuer Free Writing Prospectus or Preliminary 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
such Issuer Free Writing Prospectus or Preliminary Prospectus, it being understood and
agreed that the only such information furnished by any Underwriter consists of the
information described as such in Section 7(b) hereof.
(d) Registration Statement and Prospectus. The Registration Statement is an “automatic
shelf registration statement” as defined under Rule 405 of the Securities Act that has been
filed with the Commission not earlier than three years prior to the date hereof; and no
notice of objection of the Commission to the use of such registration statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has
been received by the Company. No order suspending the effectiveness of the Registration
Statement has been issued by the Commission, and no proceeding for that purpose or pursuant
to Section 8A of the Securities Act against the Company or related to the offering of the
Securities has been initiated or threatened by the Commission; as of the applicable
effective date of the Registration Statement and any post-effective amendment thereto, the
Registration Statement and any such post-effective amendment complied and will comply in all
material respects with the Securities Act, and did not and will not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein not misleading; and as of the date of
the Prospectus and any amendment or supplement thereto and as of the Closing Date and as of
the Additional Closing Date, as the case may be, the Prospectus 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 and the Guarantor make no representation and
warranty with respect to any statements or omissions made 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 the Registration Statement and
the Prospectus and any amendment or supplement thereto, it being understood and agreed that
the only such information furnished by any Underwriter consists of the information described
as such in Section 7(b) hereof.
(e) Incorporated Documents. The documents incorporated by reference in the
Registration Statement, the Prospectus and the Pricing Disclosure Package, when they were
filed with the Commission conformed in all material respects to the requirements of the
Exchange Act, and none of such documents contained any untrue statement of a material fact
or omitted to state a material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; and any further documents
so filed and incorporated by reference in the Registration Statement, the Prospectus or the
Pricing Disclosure Package, when
such documents are filed with the Commission, will conform in all material respects to
the requirements of the Exchange Act and will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading.
(f) Financial Statements. The financial statements (including the related notes
thereto) of the Company and its consolidated subsidiaries included or incorporated by
reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus
comply in all material respects with the applicable requirements of the Securities Act and
the Exchange Act, as applicable, and present fairly the consolidated financial position of
the Company and its consolidated subsidiaries as of the dates indicated and the results of
their operations and the changes in their cash flows for the periods specified; such
financial statements have been prepared in conformity with generally accepted accounting
principles in the United States applied on a consistent basis throughout the periods covered
thereby, and any supporting schedules included or incorporated by reference in the
Registration Statement present fairly the information required to be stated therein; and the
other financial information included or incorporated by reference in the Registration
Statement, the Pricing Disclosure Package and the Prospectus has been derived from the
accounting records of the Company and its consolidated subsidiaries and presents fairly the
information shown thereby.
(g) No Material Adverse Change. Since the date of the most recent financial statements
of the Company included or incorporated by reference in the Registration Statement, the
Pricing Disclosure Package and the Prospectus, (i) there has not been any change in the
capital stock (other than the issuance of shares of Common Stock upon exercise of stock
options and warrants described as outstanding in, and the grant of options and awards under
existing equity incentive plans described in, the Registration Statement, the Pricing
Disclosure Package and the Prospectus), or increase in short-term debt or long-term debt of
the Company and its subsidiaries taken as a whole (except as disclosed on Schedule 2
hereto), or any dividend or distribution of any kind declared, set aside for payment, paid
or made by the Company on any class of capital stock (other than the regular quarterly
dividend paid on December 29, 2008), or any material adverse change, or except as otherwise
disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus,
any development involving a prospective material adverse change, in or affecting the
business, properties, management, financial position, stockholders’ equity, results of
operations or prospects of the Company and its subsidiaries taken as a whole; (ii) neither
the Company nor any of its subsidiaries has entered into any transaction or agreement
(whether or not in the ordinary course of business) that is material to the Company and its
subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent,
that is material to the Company and its subsidiaries taken as a whole; and (iii) neither the
Company nor any of its subsidiaries has sustained any loss or interference with its business
that is material to the Company and its subsidiaries taken as a whole and that is either
from fire, explosion, flood or other calamity, whether or not covered by insurance, or from
any labor disturbance or dispute or any action, order or decree of any court or arbitrator
or governmental or regulatory authority, except in each case as otherwise disclosed in or
contemplated by the Registration Statement, the Pricing Disclosure Package and the
Prospectus.
(h) Organization and Good Standing. The Company, the Guarantor and each of the
Company’s Significant Subsidiaries (as set forth in Schedule 3 hereto, the “Significant
Subsidiaries”) have been duly organized and are validly existing and in good standing under
the laws of their respective jurisdictions of organization, are duly qualified to do
business and are in good standing (to the extent such concept exists in the jurisdiction in
question) in each jurisdiction in which their respective ownership or lease of property or
the conduct of their
respective businesses requires such qualification, and have all power and authority
necessary to own or hold their respective properties and to conduct the businesses in which
they are engaged, except where the failure to be so qualified or in good standing or have
such power or authority would not, individually or in the aggregate, have a material adverse
effect on the business, properties, management, financial position, stockholders’ equity,
results of operations or prospects of the Company and its subsidiaries taken as a whole or
on the performance by the Company of its obligations under the Transaction Documents (as
defined below) (a “Material Adverse Effect”), and, other than the Guarantor and the
Significant Subsidiaries (which directly or indirectly own over 10% of the Company’s
consolidated assets or derive over 10% of the Company’s consolidated revenues), there are no
subsidiaries of the Company that directly own (i.e., other than through the ownership of
equity interests of other subsidiaries of the Company) over 10% of the Company’s
consolidated assets or directly derive (i.e., other than as a result of the ownership of
equity interests of other subsidiaries of the Company) over 10% of the Company’s
consolidated revenues.
(i) Capitalization. The Company has an authorized capitalization as set forth in the
Registration Statement, the Pricing Disclosure Package and the Prospectus under the heading
“Capitalization”; all the outstanding shares of capital stock of the Company have been duly
and validly authorized and issued and are fully paid and non-assessable and are not subject
to any pre-emptive or similar rights; except as described in or expressly contemplated by
the Pricing Disclosure Package and the Prospectus, there are no outstanding rights
(including, without limitation, pre-emptive rights), warrants or options to acquire, or
instruments convertible into or exchangeable for, any shares of capital stock or other
equity interest in the Company, the Guarantor or any of the Significant Subsidiaries, or any
contract, commitment, agreement, understanding or arrangement of any kind relating to the
issuance of any capital stock of the Company, the Guarantor or any such Significant
Subsidiary (except, if any, such rights, warrants, options, instruments, contracts,
commitments, agreements, understandings or arrangements in favor of the Company, the
Guarantor or any of their respective subsidiaries), or any such convertible or exchangeable
securities or any such rights, warrants or options except for this Agreement; the capital
stock of the Company conforms in all material respects to the description thereof contained
in the Registration Statement, the Pricing Disclosure Package and the Prospectus; and all
the outstanding shares of capital stock or other equity interests of each Significant
Subsidiary have been duly and validly authorized and issued, are fully paid and
non-assessable (except, in the case of any foreign subsidiary, for directors’ qualifying
shares and except as set forth in Schedule 4, all outstanding shares of capital stock or
other interests of the Guarantor and the Significant Subsidiaries are owned directly or
indirectly by the Company, free and clear of any lien, charge, encumbrance, security
interest, restriction on voting or transfer or any other claim of any third party except
those that would not, individually or in the aggregate, have a Material Adverse Effect.
(j) Stock Options. With respect to the outstanding stock options (the “Stock Options”)
granted pursuant to the stock-based compensation plans of the Company and its subsidiaries
(the “Company Stock Plans”), (i) each Stock Option intended to qualify as an “incentive
stock option” under Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”) was designed to so qualify, (ii) each grant of a Stock Option was duly authorized no
later than the date on which the grant of such Stock Option was by its terms to be effective
(the “Grant Date”) by all necessary corporate action, including, as applicable, approval by
the board of directors of the Company (or a duly constituted and authorized committee
thereof) and any required stockholder approval by the necessary number of votes or written
consents, and the award agreement governing such grant (if any) was duly executed and
delivered by each party thereto, (iii) each such grant was made in accordance with the
applicable material terms of the
Company Stock Plans, the Exchange Act and all other applicable laws and regulatory
rules or requirements, including the rules of the New York Stock Exchange (the “Exchange”)
and any other exchange on which Company securities are traded, and (iv) each such grant was
properly accounted for in accordance with GAAP in the financial statements (including the
related notes) of the Company in all material respects and disclosed in the Company’s
filings with the Commission in accordance with the Exchange Act and all other applicable
laws. The Company has not knowingly granted, and there is no and has been no policy or
practice of the Company of granting, Stock Options prior to, or otherwise improperly
coordinating the grant of Stock Options with, the release or other public announcement of
material nonpublic information regarding the Company or its subsidiaries or their results of
operations or prospects.
(k) Due Authorization. Each of the Company and the Guarantor has full right, power and
authority to execute and deliver this Agreement and the Indenture and to perform its
respective obligations hereunder and thereunder; the Company has full right, power and
authority to execute the Securities and to perform its obligations thereunder; the Guarantor
has full right, power and authority to execute and deliver the Guaranty and to perform its
obligations thereunder (collectively, the Guaranty, the Indenture, this Agreement and the
Securities are referred to herein as the “Transaction Documents”); and all action required
to be taken for the due and proper authorization, execution and delivery by it of each of
the Transaction Documents and the consummation by it of the transactions contemplated
thereby has been duly and validly taken by the Company and the Guarantor, as the case may
be.
(l) The Indenture. The Indenture has been duly authorized by the Company and the
Guarantor and upon effectiveness of the Registration Statement and on the Closing Date and
on the Additional Closing Date, as the case may be, was or will have been duly qualified
under the Trust Indenture Act and, when duly executed and delivered in accordance with its
terms by each of the parties thereto, will constitute a valid and legally binding agreement
of the Company and the Guarantor enforceable against the Company and the Guarantor in
accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency or similar laws affecting creditors’ rights generally or by equitable principles
relating to enforceability (collectively, the “Enforceability Exceptions”).
(m) Underwriting Agreement. This Agreement has been duly authorized, executed and
delivered by the Company and the Guarantor.
(n) The Securities and the Guaranties. The Securities to be issued and sold by the
Company hereunder have been duly authorized and, when duly executed, authenticated, issued
and delivered as provided in the Indenture and paid for as provided herein, will be duly and
validly issued and outstanding and will constitute valid and legally binding obligations of
the Company enforceable against the Company in accordance with their terms, subject to the
Enforceability Exceptions, and will be entitled to the benefit of the Indenture. The
Guaranty has been duly authorized by the Guarantor and, when executed and delivered by the
Guarantor and affixed to the Securities, will constitute the valid and legally binding
obligation of the Guarantor, will be in the form contemplated by the Indenture, entitled to
the benefits of the Indenture and enforceable against the Guarantor in accordance with its
terms, subject to the Enforceability Exceptions.
(o) The Underlying Securities. Upon issuance and delivery of the Securities in
accordance with this Agreement and the Indenture, the Securities will be convertible at the
option of the holder thereof into shares of the Underlying Securities in accordance the
terms of the Securities; the Underlying Securities reserved for issuance upon conversion of
the Securities have been duly
authorized and reserved and, when issued upon conversion of the Securities in
accordance with the terms of the Securities, will be validly issued, fully paid and non
assessable, and the issuance of the Underlying Securities will not be subject to any
preemptive or similar rights.
(p) Acquisition. The Sale and Purchase Agreement, dated January 27, 2009, among the
Company, AngloGold Xxxxxxx Australia Limited, AngloGold Xxxxxxx Limited, Saddleback
Investments Pty Ltd, Newmont Boddington Pty Ltd, Newmont Australia Limited and BGM
Management Company Pty Limited, (the “SPA”) has been duly authorized, executed and delivered
by the Company. To the knowledge of the Company, since January 27, 2009, there has not been
any “Material Adverse Effect” (as such term is defined in the SPA) that would give any party
thereto the right to terminate the SPA.
(q) No Violation or Default. None of the Company, the Guarantor or any of the
Significant Subsidiaries is in violation of its charter or by-laws or similar organizational
documents. Neither the Company nor any of its subsidiaries (including the Guarantor) is
(i) in default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or
condition contained in any indenture, mortgage, deed of trust, loan agreement or other
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 property or
assets of the Company or any of its subsidiaries is subject; or (ii) in violation of any law
or statute or any judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority, except for any such default or violation that would
not, individually or in the aggregate, have a Material Adverse Effect.
(r) No Conflicts. The execution, delivery and performance by the Company and the
Guarantor of each of the Transaction Documents to which each is a party, the issuance and
sale of the Securities (including the issuance of the Underlying Securities upon conversion
thereof) and the consummation of the transactions contemplated by the Transaction Documents
will not (i) conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any of its
subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement or other
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 property or
assets of the Company or any of its subsidiaries is subject, (ii) result in any violation of
the provisions of the charter or by-laws or similar organizational documents of the Company
or any of its subsidiaries or (iii) result in the violation of any law or statute or any
judgment, order, rule or regulation of any court or arbitrator or governmental or
regulatory authority, except, in the case of clauses (i) and (iii) above, for any such
conflict, breach, violation or default that would not, individually or in the aggregate,
have a Material Adverse Effect.
(s) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory authority is
required for the execution, delivery and performance by the Company and the Guarantor of
each of the Transaction Documents to which it is a party, the issuance and sale of the
Securities (including the issuance of the Underlying Securities upon conversion thereof) and
the consummation of the transactions contemplated by the Transaction Documents, except for
the registration of the Securities under the Securities Act, the qualification of the
Indenture under the Trust Indenture Act and such consents, approvals, authorizations, orders
and registrations or qualifications as may be required under applicable state or other
securities laws in connection with the purchase and distribution of the Securities by the
Underwriters.
(t) Legal Proceedings. Except as described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, there are no legal, governmental or regulatory
investigations, actions, suits or proceedings pending to which the Company or any of its
subsidiaries is a party or to which any property of the Company or any of its subsidiaries
is the subject that, individually or in the aggregate, if determined adversely to the
Company or any of its subsidiaries, would reasonably be expected to have a Material Adverse
Effect; no such investigations, actions, suits or proceedings are, to the knowledge of the
Company, threatened or contemplated by any governmental or regulatory authority or
threatened by others; and (i) there are no current or pending legal, governmental or
regulatory actions, suits or proceedings that are required under the Securities Act to be
described in the Registration Statement, the Pricing Disclosure Package or the Prospectus
that are not so described in the Registration Statement, the Pricing Disclosure Package and
the Prospectus and (ii) there are no statutes, regulations or contracts or other documents
that are required under the Securities Act to be filed as exhibits to the Registration
Statement or described in the Registration Statement, the Pricing Disclosure Package or the
Prospectus that are not so filed as exhibits to the Registration Statement or described in
the Registration Statement, the Pricing Disclosure Package and the Prospectus.
(u) Independent Accountants. PricewaterhouseCoopers LLP, which has certified certain
financial statements of the Company and its subsidiaries, is an independent registered
public accounting firm with respect to the Company and its subsidiaries within the
applicable rules and regulations adopted by the Commission and the Public Company Accounting
Oversight Board (United States) and as required by the Securities Act.
(v) Title to Real and Personal Property. The Company and its subsidiaries have good
title in fee simple (in the case of real property) to, or have valid rights to lease or
otherwise use, all items of real and personal property and assets that are material to the
respective businesses of the Company and its subsidiaries, in each case free and clear of
all liens, encumbrances, claims and defects and imperfections of title except those that (i)
do not materially interfere with the use made and proposed to be made of such property by
the Company and its subsidiaries or (ii) would not, individually or in the aggregate, have a
Material Adverse Effect.
(w) Title to Intellectual Property. Each of the Company, the Guarantor and the
Significant Subsidiaries own or possess adequate rights to use all material patents, patent
applications, trademarks, service marks, trade names, trademark registrations, service xxxx
registrations, copyrights, licenses and know-how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or
procedures) (collectively, the “Intellectual Property”) reasonably necessary for the conduct
of their respective businesses as currently conducted and as proposed to be conducted,
except where the failure to own or possess such Intellectual Property would not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect. The
Company and its subsidiaries (including the Guarantor) have not received any notice of
infringement, misappropriation or conflict with the asserted rights of others with respect
to any Intellectual Property except for notices the content of which if accurate would not,
individually or in the aggregate, have a Material Adverse Effect.
(x) No Undisclosed Relationships. No relationship, direct or indirect, exists between
or among the Company or any of its subsidiaries, on the one hand, and the directors,
officers, stockholders or affiliates of the Company or any of its subsidiaries, on the
other, that is required by the Securities Act to be described in the Registration Statement
and the Prospectus and that is not so described in such documents and in the Pricing
Disclosure Package.
(y) Investment Company Act. Neither the Company nor the Guarantor is, and after giving
effect to the offering and sale of the Securities and the application of the proceeds
thereof as described in the Registration Statement, the Pricing Disclosure Package and the
Prospectus, neither of them will be required to register as an “investment company” or an
entity “controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Investment Company Act”).
(z) Taxes. Each of the Company and its subsidiaries has filed all federal, state,
local and foreign tax returns required to be filed by it through the date hereof and paid
all taxes as shown thereon and all assessments received by it to the extent required to be
paid and not being contested in good faith, except where the failure to do so would not have
a Material Adverse Effect; and to the Company’s knowledge, except as otherwise disclosed in
the Registration Statement, the Pricing Disclosure Package and the Prospectus, there is no
tax deficiency that has been, or could reasonably be expected to be, asserted in writing
against the Company or any of its subsidiaries or any of their respective properties or
assets that if ultimately upheld would have a Material Adverse Effect.
(aa) Licenses and Permits. The Company and its subsidiaries possess all licenses,
certificates, permits and other authorizations issued by, and have made all declarations and
filings with, the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or
the conduct of their respective businesses as described in the Registration Statement, the
Pricing Disclosure Package and the Prospectus, except where the failure to possess or make
the same would not, individually or in the aggregate, have a Material Adverse Effect; and
except as described in the Registration Statement, the Pricing Disclosure Package and the
Prospectus, neither the Company nor any of its subsidiaries has received notice of any
revocation or modification of any such license, certificate, permit or authorization or has
any reason to believe that any such license, certificate, permit or authorization will not
be renewed in the ordinary course, which would, individually or in the aggregate, have a
Material Adverse Effect.
(bb) No Labor Disputes. No labor disturbance by or dispute with employees of the
Company or any of its subsidiaries exists or, to the knowledge of the Company, is
contemplated or threatened, and the Company is not aware of any existing or imminent labor
disturbance by, or dispute with, the employees of any of its or its subsidiaries’ principal
suppliers, contractors or customers, except as would not, individually or in the aggregate,
have a Material Adverse Effect.
(cc) Compliance with and Liability under Environmental Laws. Except as described in
the Registration Statement, the Pricing Disclosure Package and the Prospectus, and except
for matters that would not individually or in the aggregate reasonably be expected to have a
Material Adverse Effect, (i) the Company and its subsidiaries are, and at all prior times
were, in compliance with any and all applicable federal, state, local and foreign laws,
rules, regulations, requirements, decisions, judgments, decrees, orders and the common law
relating to pollution or the protection of the environment, natural resources or human
health or safety, including those relating to the generation, storage, treatment, use,
handling, transportation, Release or threat of Release of Hazardous Materials (as defined
below) (collectively, “Environmental Laws”); (ii) the Company and its subsidiaries have
received and are in compliance with all permits, licenses, certificates or other
authorizations or approvals required of them under applicable Environmental Laws to conduct
their respective businesses; (iii) the Company and its subsidiaries have not received notice
of any actual or potential liability under or relating to, or actual or potential violation
of, any Environmental Laws, including for the investigation or remediation of any
Release or threat of Release of Hazardous Materials, and have no knowledge of any event
or condition that would reasonably be expected to result in any such notice; (iv) neither
the Company nor any of its subsidiaries is conducting or paying for, in whole or in part,
any investigation, remediation or other corrective action pursuant to any Environmental Law
at any location; (v) neither the Company nor any of its subsidiaries is a party to any
order, decree or agreement that imposes any obligation or liability under any Environmental
Law; (vi) other than as reserved on the Company’s financial statements, there are no costs
or liabilities associated with Environmental Laws of or relating to the Company or its
subsidiaries; and (vii) (A) there are no proceedings that are pending, or that are known to
be contemplated, against the Company or any of its subsidiaries under any Environmental Laws
in which a governmental entity is also a party, other than such proceedings regarding which
it is reasonably believed no monetary sanctions of $100,000 or more will be imposed, and (B)
the Company and its subsidiaries are not aware of any facts or issues regarding compliance
with Environmental Laws, or liabilities or other obligations under Environmental Laws.
(dd) Compliance with ERISA. To the best knowledge of the Company (i) each employee
benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), for which the Company or any member of its “Controlled
Group” (defined as any organization which is a member of a controlled group of corporations
within the meaning of Section 414 of the Internal Revenue Code of 1986, as amended (the
“Code”)) would reasonably be expected to have any material liability (each, a “Plan”) has
been maintained in compliance with its terms and the requirements of ERISA and the Code in
all material respects, except where the failure to be in such compliance would not,
individually or in the aggregate, have a Material Adverse Effect; (ii) no material
prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the
Code, has occurred with respect to any Plan excluding transactions effected pursuant to a
statutory or administrative exemption that could reasonably be expected to result in a
material liability to the Company or its subsidiaries; (iii) for each Plan that is subject
to the funding rules of Section 412 of the Code or Section 302 of ERISA, the minimum funding
standard of Section 412 of the Code or Section 302 of ERISA, as applicable, has been
satisfied (without taking into account any waiver thereof or extension of any amortization
period) and is reasonably expected to be satisfied in the future (without taking into
account any waiver thereof or extension of any amortization period); (iv) except as
otherwise disclosed in the Registration Statement, Pricing Disclosure Package and the
Prospectus, there is no material difference between the fair market value of the assets of
each Plan and the present value of all benefits accrued under such Plan (determined based on
those assumptions used to fund such Plan); (v) no “reportable event” (within the meaning of
Section 4043(c) of ERISA) has occurred or is reasonably expected to occur for which the
Company would have liability; (vi) neither the Company nor any member of the Controlled
Group has incurred, nor reasonably expects to incur, any liability under Title IV of ERISA
(other than contributions to the Plan or premiums to the Pension Benefit Guarantee
Corporation, in the ordinary course and without default) in respect of a Plan (including a
“multiemployer plan”, within the meaning of Section 4001(a)(3) of ERISA); and (vii) to the
knowledge of the Company, there is no pending audit or investigation by the Internal Revenue
Service, the U.S. Department of Labor, the Pension Benefit Guaranty Corporation or any other
governmental agency or any foreign regulatory agency with respect to any Plan that could
reasonably be expected to result in material liability to the Company or its subsidiaries,
except, in the case of clause (iv), (v) and (vi) above, where such liability would not,
individually or in the aggregate, have a Material Adverse Effect. No material increase in
the Company and its subsidiaries’ “accumulated post-retirement benefit obligations” (within
the meaning of Statement of Financial Accounting Standards 106) compared to the amount of
such obligations in the Company and its subsidiaries’ most recently completed fiscal year
has occurred or is reasonably likely to occur.
(ee) Disclosure Controls. The Company and its subsidiaries on a consolidated basis
maintain an effective system of “disclosure controls and procedures” (as defined in Rule
13a-15(e) of the Exchange Act) that complies with the requirements of the Exchange Act and
that has been designed to ensure that information required to be disclosed by the Company in
reports that it files or submits under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in the Commission’s rules and forms,
including controls and procedures designed to ensure that such information is accumulated
and communicated to the Company’s management as appropriate to allow timely decisions
regarding required disclosure. The Company and its subsidiaries on a consolidated basis
have carried out evaluations of the effectiveness of their disclosure controls and
procedures as required by Rule 13a-15 of the Exchange Act.
(ff) Accounting Controls. The Company and its subsidiaries on a consolidated basis
maintain systems of “internal control over financial reporting” (as defined in Rule
13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and
have been designed by, or under the supervision of, their respective principal executive and
principal financial officers, or persons performing similar functions, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting
principles, including, but not limited to, internal accounting controls sufficient to
provide reasonable assurance 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 and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv)
the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Based on the
Company’s most recent evaluation of its internal controls over financial reporting pursuant
to Rule 13a-15(c) of the Exchange Act, there are no material weaknesses in the Company’s
internal controls. The Company’s auditors and the Audit Committee of the Board of Directors
of the Company have been advised of: (i) all significant deficiencies and material
weaknesses in the design or operation of internal controls over financial reporting which
have adversely affected or are reasonably likely to adversely affect the Company’s ability
to record, process, summarize and report financial information; and (ii) any fraud, whether
or not material, that involves management or other employees who have a significant role in
the Company’s internal controls over financial reporting.
(gg) Insurance. The Company and its subsidiaries are insured by insurers of recognized
financial responsibility or are self insured against such losses and risks and in such
amounts as are reasonable and consistent with sound business practice.
(hh) No Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to the
knowledge of the Company, any director, officer, agent, employee or other person associated
with or acting on behalf of the Company or any of its subsidiaries has (i) used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; (ii) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate funds; (iii) violated or
is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or (iv) made
any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment.
(ii) 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, the
Guarantor or any of its subsidiaries with respect to the Money Laundering Laws is pending
or, to the knowledge of the Company, threatened.
(jj) 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 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.
(kk) No Broker’s Fees. Neither the Company nor any of its subsidiaries is a party to
any contract, agreement or understanding with any person (other than this Agreement) that
would give rise to a valid claim against the Company or any of its subsidiaries or any
Underwriter for a brokerage commission, finder’s fee or like payment in connection with the
offering and sale of the Securities.
(ll) No Registration Rights. No person has the right to require the Company or any of
its subsidiaries to register any securities for sale under the Securities Act by reason of
the filing of the Registration Statement with the Commission or the issuance and sale of the
Securities.
(mm) No Stabilization. Neither the Company nor the Guarantor has taken, directly or
indirectly, any action designed to or that could reasonably be expected to cause or result
in any stabilization or manipulation of the price of the Securities.
(nn) Margin Rules. The application of the proceeds received by the Company from the
issuance, sale and delivery of the Securities as described in the Registration Statement,
the Pricing Disclosure Package and the Prospectus will not violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System or any other regulation of such Board
of Governors.
(oo) Forward-Looking Statements. No forward-looking statement (within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in the
Registration Statement, the Pricing Disclosure Package or the Prospectus has been made or
reaffirmed without a reasonable basis or has been disclosed other than in good faith.
(pp) Statistical and Market Data. Nothing has come to the attention of the Company or
the Guarantor that has caused the Company or the Guarantor to believe that the statistical
and market-related data included or incorporated by reference in the Registration Statement,
the Pricing Disclosure Package and the Prospectus is not based on or derived from sources
that are reliable and accurate in all material respects.
(qq) Xxxxxxxx-Xxxxx Act. There is and has been no failure on the part of the Company
or the Guarantor or, to the knowledge of the Company or the Guarantor, any of the Company’s
or the Guarantor’s directors or officers, in their capacities as such, to comply with any
provision of
the Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated in connection
therewith (the “Xxxxxxxx-Xxxxx Act”), including Section 402 related to loans and Sections
302 and 906 related to certifications.
(rr) Status under the Securities Act. At the time of filing the Registration Statement
and any post-effective amendment thereto, at the earliest time thereafter that the Company
or any offering participant made a bona fide offer (within the meaning of Rule 164(h)(2)
under the Securities Act) of the Securities and at the date hereof, the Company was not and
is not an “ineligible issuer,” and is a well-known seasoned issuer, in each case as defined
in Rule 405 under the Securities Act. The Company has paid the registration fee for this
offering pursuant to Rule 456(b)(1) under the Securities Act or will pay such fee within the
time period required by such rule and in any event prior to the Closing Date.
4. Further Agreements of the Company. Each of the Company and the Guarantor, as the
case may be, jointly and severally, covenants and agrees with each Underwriter that:
(a) Required Filings. The Company will file the final Prospectus with the Commission
within the time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the
Securities Act, will file any Issuer Free Writing Prospectus to the extent required by Rule
433 under the Securities Act; will file promptly all reports and any definitive proxy or
information statements required to be filed by the Company with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the
Prospectus and for so long as the delivery of a prospectus is required in connection with
the offering or sale of the Securities; and will furnish copies of the Prospectus and each
Issuer Free Writing Prospectus (to the extent not previously delivered) to the Underwriters
in New York City prior to 10:00 A.M., New York City time, on the business day next
succeeding the date of this Agreement in such quantities as the Representatives may
reasonably request. The Company will pay the registration fee for this offering within the
time period required by Rule 456(b)(1) under the Securities Act and in any event prior to
the Closing Date.
(b) Delivery of Copies. The Company will deliver, without charge, (i) to the
Representatives, three signed copies of the Registration Statement as originally filed and
each amendment thereto, in each case including all exhibits and consents filed therewith;
and (ii) to each Underwriter (A) a conformed copy of the Registration Statement as
originally filed and each amendment thereto (without exhibits) and (B) during the Prospectus
Delivery Period (as defined below), as many copies of the Prospectus (including all
amendments and supplements thereto and documents incorporated by reference therein and each
Issuer Free Writing Prospectus) as the Representatives may reasonably request. As used
herein, the term “Prospectus Delivery Period” means such period of time after the first date
of the public offering of the Securities as in the opinion of counsel for the Underwriters a
prospectus relating to the Securities is required by law to be delivered (or required to be
delivered but for Rule 172 under the Securities Act) in connection with sales of the
Securities by any Underwriter or dealer.
(c) Amendments or Supplements, Issuer Free Writing Prospectuses. Before preparing,
using, authorizing, approving, referring to or filing any Issuer Free Writing Prospectus,
and before filing any amendment or supplement to the Registration Statement or the
Prospectus, whether before or after the time that the Registration Statement becomes
effective, the Company will furnish to the Representatives and counsel for the Underwriters
a copy of the proposed Issuer Free Writing Prospectus, amendment or supplement for review
and will not prepare, use, authorize, approve, refer to or file any such Issuer Free Writing
Prospectus or file any such proposed amendment or supplement to which the Representatives
reasonably objects.
(d) Notice to the Representatives. The Company will advise the Representatives
promptly, and confirm such advice in writing, (i) when the Registration Statement has become
effective; (ii) when any amendment to the Registration Statement has been filed or becomes
effective; (iii) when any supplement to the Prospectus or any Issuer Free Writing Prospectus
or any amendment to the Prospectus has been filed; (iv) of any request by the Commission for
any amendment to the Registration Statement or any amendment or supplement to the Prospectus
or the receipt of any comments from the Commission relating to the Registration Statement or
any other request by the Commission for any additional information; (v) of the issuance by
the Commission of any order suspending the effectiveness of the Registration Statement or
preventing or suspending the use of any Preliminary Prospectus, any of the Pricing
Disclosure Package or the Prospectus or the initiation or threatening of any proceeding for
that purpose or pursuant to Section 8A of the Securities Act; (vi) of the occurrence of any
event within the Prospectus Delivery Period as a result of which the Prospectus, the Pricing
Disclosure Package or any Issuer Free Writing Prospectus as then amended or supplemented
would include any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances
existing when the Prospectus, the Pricing Disclosure Package or any such Issuer Free Writing
Prospectus is delivered to a purchaser, not misleading; (vii) of the receipt by the Company
or the Guarantor of any notice of objection of the Commission to the use of the Registration
Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the
Securities Act; and (viii) of the receipt by the Company or the Guarantor of any notice with
respect to any suspension of the qualification of the Securities for offer and sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose; and the
Company and the Guarantor will use their best efforts to prevent the issuance of any such
order suspending the effectiveness of the Registration Statement, preventing or suspending
the use of any Preliminary Prospectus, any of the Pricing Disclosure Package or the
Prospectus or suspending any such qualification of the Securities and, if any such order is
issued, will obtain as soon as possible the withdrawal thereof.
(e) Ongoing Compliance. (1) If during the Prospectus Delivery Period (i) any event
shall occur or condition shall exist as a result of which the Prospectus as then amended or
supplemented 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 existing when the Prospectus is delivered to a purchaser, not misleading or
(ii) it is necessary to amend or supplement the Prospectus to comply with law, the Company
will immediately notify the Underwriters thereof and forthwith prepare and, subject to
paragraph (c) above, file with the Commission and furnish to the Underwriters and to such
dealers as the Representatives may designate such amendments or supplements to the
Prospectus as may be necessary so that the statements in the Prospectus as so amended or
supplemented will not, in the light of the circumstances existing when the Prospectus is
delivered to a purchaser, be misleading or so that the Prospectus will comply with law and
(2) if at any time prior to the Closing Date (i) any event shall occur or condition shall
exist as a result of which the Pricing Disclosure Package as then amended or supplemented
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
existing when the Pricing Disclosure Package is delivered to a purchaser, not misleading or
(ii) it is necessary to amend or supplement the Pricing Disclosure Package to comply with
law, the Company will immediately notify the Underwriters thereof and forthwith prepare and,
subject to paragraph (c) above, file with the Commission (to the extent required) and
furnish to the Underwriters and to such dealers as the Representatives may designate such
amendments or supplements to the Pricing Disclosure Package as may be necessary so that the
statements in the Pricing Disclosure Package as so amended or supplemented will not, in the
light
of the circumstances existing when the Pricing Disclosure Package is delivered to a
purchaser, be misleading or so that the Pricing Disclosure Package will comply with law.
(f) Blue Sky Compliance. The Company and the Guarantor will qualify the Securities for
offer and sale under the securities or Blue Sky laws of such states in the United States as
the Representatives shall reasonably request and will continue such qualifications in effect
so long as required for distribution of the Securities; provided that neither the
Company nor the Guarantor shall be required to (i) qualify as a foreign corporation or other
entity or as a dealer in securities in any such jurisdiction where it would not otherwise be
required to so qualify, (ii) file any general consent to service of process in any such
jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not
otherwise so subject.
(g) Earning Statement. The Company will make generally available to its security
holders and the Representatives as soon as practicable an earning statement that satisfies
the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission
promulgated thereunder covering a period of at least twelve months beginning with the first
fiscal quarter of the Company occurring after the “effective date” (as defined in Rule 158)
of the Registration Statement.
(h) Clear Market. For a period of 90 days after the date of the Prospectus, neither
the Company nor the Guarantor will (i) offer, pledge, announce the intention to sell, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract
to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of,
directly or indirectly, any shares of Stock or any securities convertible into or
exercisable or exchangeable for Stock or (ii) enter into any swap or other agreement that
transfers, in whole or in part, any of the economic consequences of ownership of the Stock,
whether any such transaction described in clause (i) or (ii) above is to be settled by
delivery of Stock or such other securities, in cash or otherwise, without the prior written
consent of each of the Representatives on behalf of the Underwriters, other than (A) the
Securities to be sold hereunder, the 1.25% Convertible Senior Notes due 2014 or the 1.625%
Convertible Senior Notes due 2017, (B) the shares of Common Stock to be sold by the Company
concurrently herewith pursuant to an Underwriting Agreement, dated the date hereof, between
the Company, Citigroup Global Markets Inc. and X.X. Xxxxxx Securities Inc., as
representatives of the several underwriters named therein, (C) the grant of options and
issuance of shares of Stock to employees or directors by the Company in each case under
Company Stock Plans in the ordinary course of business, and (D) any shares of Stock of the
Company issued upon the exercise of options granted under Company Stock Plans.
(i) Use of Proceeds. The Company will apply the net proceeds from the sale of the
Securities as described in the Registration Statement, the Pricing Disclosure Package and
the Prospectus under the heading “Use of Proceeds”.
(j) No Stabilization. The Company and the Guarantor will not take, directly or
indirectly, any action designed to or that could reasonably be expected to cause or result
in any stabilization or manipulation of the price of the Securities and will not take any
action prohibited by Regulation M under the Exchange Act in connection with the distribution
of the Securities contemplated hereby.
(k) Underlying Securities. The Company will reserve and keep available at all times,
free of pre-emptive rights, shares of Common Stock for the purpose of enabling the Company
to satisfy all obligations to issue the Underlying Securities upon conversion of the
Securities. The Company will use its best efforts to cause the Underlying Securities to be
listed on the Exchange.
(l) Reports. So long as the Securities are outstanding, the Company will furnish to
the Representatives, as soon as they are available, copies of all reports or other
communications (financial or other) furnished generally to holders of the Securities, and
copies of any reports and financial statements furnished to or filed with the Commission or
any national securities exchange or automatic quotation system; provided the Company
will be deemed to have furnished such reports and financial statements to the
Representatives to the extent they are filed on the Commission’s Electronic Data Gathering,
Analysis, and Retrieval system.
(m) Record Retention. The Company will, pursuant to reasonable procedures developed in
good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the
Commission in accordance with Rule 433 under the Securities Act.
5. Certain Agreements of the Underwriters. Each Underwriter hereby represents and
agrees that:
(a) It has not used, authorized use of, referred to or participated in the planning for
use of, and will not use, authorize use of, refer to or participate in the planning for use
of, any “free writing prospectus”, as defined in Rule 405 under the Securities Act (which
term includes use of any written information furnished to the Commission by the Company and
not incorporated by reference into the Registration Statement and any press release issued
by the Company) required to be filed with the Commission other than (i) a free writing
prospectus that contains no “issuer information” (as defined in Rule 433(h)(2) under the
Securities Act) that was not included (including through incorporation by reference) in the
Preliminary Prospectus or a previously filed Issuer Free Writing Prospectus, (ii) any Issuer
Free Writing Prospectus listed on Annex C or prepared pursuant to Section 3(c) or Section
4(c) above (including any electronic road show), or (iii) any free writing prospectus
prepared by such underwriter and approved by the Company in advance in writing (each such
free writing prospectus referred to in clauses (i) or (iii), an “Underwriter Free Writing
Prospectus”).
(b) It has not and will not, without the prior written consent of the Company, use any
free writing prospectus that contains the final terms of the Securities unless such terms
have previously been included in a free writing prospectus filed with the Commission;
provided that Underwriters may use a term sheet substantially in the form of Annex D hereto
without the consent of the Company; provided further that any Underwriter using such term
sheet shall notify the Company, and provide a copy of such term sheet to the Company, prior
to the first use of such term sheet.
(c) It is not subject to any pending proceeding under Section 8A of the Securities Act
with respect to the offering (and will promptly notify the Company if any such proceeding
against it is initiated during the Prospectus Delivery Period).
6. Conditions of Underwriters’ Obligations. The obligation of each Underwriter to
purchase the Underwritten Securities on the Closing Date or the Option Securities on the Additional
Closing Date, as the case may be, as provided herein is subject to the performance by the Company
and the Guarantor of their respective covenants and other obligations hereunder and to the
following additional conditions:
(a) Registration Compliance; No Stop Order. No order suspending the effectiveness of
the Registration Statement shall be in effect, and no proceeding for such purpose, pursuant
to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act shall be pending before
or threatened by the Commission; the Prospectus and each Issuer Free Writing Prospectus
shall have been timely filed with the Commission under the Securities Act (in the case of an
Issuer Free
Writing Prospectus, to the extent required by Rule 433 under the Securities Act) and in
accordance with Section 4(a) hereof; and all requests by the Commission for additional
information shall have been complied with to the reasonable satisfaction of the
Representatives.
(b) Representations and Warranties. The representations and warranties of the Company
and the Guarantor contained herein shall be true and correct on the date hereof and on and
as of the Closing Date or the Additional Closing Date, as the case may be; and the
statements of the Company and the Guarantor and their respective officers made in any
certificates delivered pursuant to this Agreement shall be true and correct on and as of the
Closing Date or the Additional Closing Date, as the case may be.
(c) No Downgrade. Subsequent to the earlier of (A) the Applicable Time and (B) the
execution and delivery of this Agreement, no downgrading to below an investment grade rating
shall have occurred in the rating accorded any debt securities or preferred stock of, or
guaranteed by, the Company or any of its subsidiaries (including the Guarantor) that are
rated by a “nationally recognized statistical rating organization,” as such term is defined
by the Commission for purposes of Rule 436(g)(2) under the Securities Act (“NRSRO”). In
addition, subsequent to the earlier of (A) the Applicable Time and (B) the execution and
delivery of this Agreement, if any NRSRO shall have downgraded the rating accorded any debt
securities or preferred stock issued or guaranteed by the Company or any of its subsidiaries
(including the Guarantor) to the lowest investment grade rating, such rating organization
shall not have publicly announced that it has under surveillance or review its rating of any
such debt securities or preferred stock.
(d) No Material Adverse Change. No event or condition of a type described in Section
3(g) hereof shall have occurred or shall exist, which event or condition is not described in
the Pricing Disclosure Package (excluding any amendment or supplement thereto) and the
Prospectus (excluding any amendment or supplement thereto) and the effect of which in the
judgment of the Representatives makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the Closing Date or the Additional Closing
Date, as the case may be, on the terms and in the manner contemplated by this Agreement, the
Pricing Disclosure Package and the Prospectus.
(e) Officer’s Certificate. The Representatives shall have received on and as of the
Closing Date or the Additional Closing Date, as the case may be, a certificate of the chief
financial officer or chief accounting officer of each of the Company and the Guarantor and
one additional senior executive officer of each of the Company and the Guarantor who is
reasonably satisfactory to the Representatives (i) confirming that such officers have
reviewed the Registration Statement, the Pricing Disclosure Package and the Prospectus and,
to the knowledge of such officers, the representations set forth in Sections 3(b) and 3(d)
hereof are true and correct, (ii) confirming that the other representations and warranties
of the Company and the Guarantor in this Agreement are true and correct and that the Company
and the Guarantor have complied with all agreements and satisfied all conditions on its part
to be performed or satisfied hereunder at or prior to the Closing Date or the Additional
Closing Date, as the case may be, and (iii) to the effect set forth in paragraphs (a), (c)
and (d) above.
(f) Comfort Letters. On the date of this Agreement and on the Closing Date or the
Additional Closing Date, as the case may be, PricewaterhouseCoopers LLP shall have furnished
to the Representatives, at the request of the Company, letters, dated the respective dates
of delivery thereof and addressed to the Underwriters, in form and substance reasonably
satisfactory to the Representatives, containing statements and information of the type
customarily included in
accountants’ “comfort letters” to underwriters with respect to the financial statements
and certain financial information contained or incorporated by reference in the Registration
Statement, the Pricing Disclosure Package and the Prospectus; provided, that the letter
delivered on the Closing Date or the Additional Closing Date, as the case may be, shall use
a “cut-off” date no more than three business days prior to such Closing Date or such
Additional Closing Date, as the case may be.
(g) Opinions and 10b-5 Statement of Counsel for the Company. Holme Xxxxxxx & Xxxx LLP,
counsel for the Company and the Guarantor, shall have furnished to the Representatives, at
the request of the Company, their written opinion and 10b-5 statement, dated the Closing
Date or the Additional Closing Date, as the case may be, and addressed to the Underwriters,
substantially in the form and to the effect set forth in Annex A. Xxxxx Xxxxxx, Vice
President and General Counsel of the Company, shall have furnished to the Representatives,
at the request of the Company his written opinion, dated the Closing Date or the Additional
Closing Date, as the case may be, and addressed to the Underwriters, substantially in the
form and to the effect set forth in Annex B.
(h) Opinion and 10b-5 Statement of Counsel for the Underwriters. The Representatives
shall have received on and as of the Closing Date or the Additional Closing Date, as the
case may be, an opinion and 10b-5 statement of Xxxxxxxx & Xxxxxxxx LLP, counsel for the
Underwriters, with respect to such matters as the Representatives may reasonably request,
and such counsel shall have received such documents and information as they may reasonably
request to enable them to pass upon such matters.
(i) No Legal Impediment to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any federal, state
or foreign governmental or regulatory authority that would, as of the Closing Date or the
Additional Closing Date, as the case may be, prevent the issuance or sale of the Securities;
and no injunction or order of any federal, state or foreign court shall have been issued
that would, as of the Closing Date or the Additional Closing Date, as the case may be,
prevent the issuance or sale of the Securities.
(j) Good Standing. The Representatives shall have received on and as of the Closing
Date or the Additional Closing Date, as the case may be, satisfactory evidence of the good
standing of the Company and the Guarantor in their respective jurisdictions of organization
and their good standing as a foreign entity in the State of Colorado and the State of Nevada
(as to the Guarantor only), in each case in writing or any standard form of
telecommunication from the appropriate governmental authorities of such jurisdictions.
(k) Exchange Listing. An application for the listing of the Underlying Securities
shall have been submitted to the Exchange.
(l) Lock-up Agreements. The “lock-up” agreements, each substantially in the form of
Exhibit A hereto, between you and certain officers and directors of the Company relating to
sales and certain other dispositions of shares of Common Stock or certain other securities,
delivered to you on or before the date hereof, shall be full force and effect on the Closing
Date or Additional Closing Date, as the case may be.
(m) Additional Documents. On or prior to the Closing Date or the Additional Closing
Date, as the case may be, the Company and the Guarantor shall have furnished to the
Representatives such further certificates and documents as the Representatives may
reasonably request.
All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
7. Indemnification and Contribution.
(a) Indemnification of the Underwriters. The Company and the Guarantor, jointly and
severally, agree to indemnify and hold harmless each Underwriter, its affiliates, directors and
officers and each person, if any, who controls such Underwriter within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims,
damages and liabilities (including, without limitation, reasonable legal fees and other expenses
incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and
expenses are incurred), joint or several, that arise out of, or are based upon, (i) any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement or
caused by any omission or alleged omission to state therein a material fact required to be stated
therein or necessary in order to make the statements therein, not misleading, or (ii) any untrue
statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus,
the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus, any
“issuer information” relating to this offering filed or required to be filed pursuant to Rule
433(d) under the Securities Act or any Pricing Disclosure Package (including any Pricing Disclosure
Package that has subsequently been amended), or caused by any omission or alleged omission to state
therein a material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, in each case except insofar as such
losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to any Underwriter furnished to the Company in writing by such Underwriter
through the Representatives expressly 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 the Company and the Guarantor. Each Underwriter agrees, severally and
not jointly, to indemnify and hold harmless the Company and the Guarantor, their respective
directors, officers who signed the Registration Statement, and each person, if any, who controls
the Company or the Guarantor within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only
with respect to any losses, claims, damages or liabilities (including, without limitation,
reasonable legal fees and other expenses incurred in connection with any suit, action or proceeding
or any claim asserted, as such fees and expenses are incurred) that arise out of, or are based
upon, any untrue statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with any information relating to such Underwriter furnished to the Company
in writing by such Underwriter through the Representatives expressly for use in the Registration
Statement, any Preliminary Prospectus, the Prospectus (or any amendment or supplement thereto), any
Issuer Free Writing Prospectus or any Pricing Disclosure Package, it being understood and agreed
upon that the only such information furnished by any Underwriter consists of the following
information in the Prospectus furnished on behalf of each Underwriter: the concession figure
appearing in the third paragraph under the caption “Underwriting” and the information contained in
the ninth and tenth paragraphs under the caption “Underwriting”.
(c) Notice and Procedures. If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against any person in
respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such
person (the
“Indemnified Person”) shall promptly notify the person against whom such indemnification may
be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have under paragraph (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 Person shall not relieve it from any liability that it may have
to an Indemnified Person otherwise than under paragraph (a) or (b) above. If any such proceeding
shall be brought or asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory
to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel
to the Indemnifying Person) to represent the Indemnified Person in such proceeding and shall pay
the fees and expenses of such counsel related to such proceeding, as incurred. In any such
proceeding, any Indemnified Person 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 Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there
may be legal defenses available to it that are different from or in addition to those available to
the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interest
between them. It is understood and agreed that the Indemnifying Person 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 Indemnified
Persons, and that all such fees and expenses shall be paid or reimbursed as they are incurred. Any
such separate firm for any Underwriter, its affiliates, directors and officers and any control
persons of such Underwriter shall be designated in writing by the Representatives and any such
separate firm for the Company and the Guarantor, their respective directors, officers who signed
the Registration Statement and any control persons of the Company or the Guarantor shall be
designated in writing by the Company. The Indemnifying Person shall not be liable for any
settlement of any proceeding 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 Person agrees to indemnify each Indemnified Person from and against any
loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days after receipt
by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the date of such
settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person
(which consent shall not be unreasonably withheld), effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Person is or could have been a party and
indemnification could have been sought hereunder by such Indemnified Person, unless such settlement
(x) includes an unconditional release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are the subject matter
of such proceeding and (y) does not include any statement as to or any admission of fault,
culpability or a failure to act by or on behalf of any Indemnified Person.
(d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of
indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person 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 and the Guarantor, on the one hand, and
the Underwriters on the other, from the offering of the 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) but also the relative fault of the
Company and the Guarantor, on the one hand, and the Underwriters 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 and
the Guarantor, on the one hand, and the Underwriters on the other, shall be deemed to be in the
same respective proportions as the net proceeds (before deducting expenses) received by the Company
from the sale of the Securities and the total underwriting discounts and commissions received by
the Underwriters in connection therewith, in each case as set forth in the table on the cover of
the Prospectus, bear to the aggregate offering price of the Securities. The relative fault of the
Company and the Guarantor, on the one hand, and the Underwriters on the other, 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, the Guarantor or by the Underwriters, respectively, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission.
(e) Limitation on Liability. The Company, the Guarantor and the Underwriters agree that it
would not be just and 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
Person 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 above, any reasonable legal
or other expenses incurred by such Indemnified Person in connection with any such action or claim.
Notwithstanding the provisions of this Section 7, in no event shall an Underwriter be required to
contribute any amount in excess of the amount by which the total underwriting discounts and
commissions received by such Underwriter with respect to the offering of the Securities 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 Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The
Underwriters’ obligations to contribute pursuant to this Section 7 are several in proportion to
their respective purchase obligations hereunder and not joint.
(f) Non-Exclusive Remedies. 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 Person
at law or in equity.
8. Effectiveness of Agreement. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.
9. Termination. This Agreement may be terminated in the absolute discretion of the
Representatives, by notice to the Company, if after the execution and delivery of this Agreement
and prior to the Closing Date or, in the case of the Option Securities, prior to the Additional
Closing Date (i) trading generally shall have been suspended or materially limited on or by any of
the Exchange or the Nasdaq Stock Market; (ii) trading of any securities issued or guaranteed by the
Company or the Guarantor shall have been suspended on any exchange or in any over-the-counter
market; (iii) a general moratorium on commercial banking activities shall have been declared by
federal or New York State authorities; or (iv) there shall have occurred any outbreak or escalation
of hostilities or any change in financial markets or any calamity or crisis, either within or
outside the United States, that, in the judgment of the Representatives, is material and adverse
and makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the Closing Date or the Additional Closing
Date, as the case may be, on the terms and in the manner contemplated by this Agreement, the
Pricing Disclosure Package and the Prospectus.
10. Defaulting Underwriter.
(a) If, on the Closing Date or the Additional Closing Date, as the case may be, any
Underwriter defaults on its obligation to purchase the Securities that it has agreed to purchase
hereunder on such date, the Representatives may in their discretion arrange for the purchase of
such Securities by themselves, the non-defaulting Underwriters or by other persons reasonably
satisfactory to the Company on the terms contained in this Agreement. If, within 36 hours after
any such default by any Underwriter, the Representatives do not arrange for the purchase of such
Securities, then the Company shall be entitled to a further period of 36 hours within which to
procure other persons satisfactory to the Representatives to purchase such Securities on such
terms. If, within the respective prescribed period, the Representatives shall have arranged for
the purchase of such Securities, or the Company shall have arranged for the purchase of such
Securities, either the Representatives or the Company may postpone the Closing Date or the
Additional Closing Date, as the case may be, for up to five full business days in order to effect
any changes that in the opinion of the Company or the Representatives may be necessary in the
Registration Statement and the Prospectus or in any other document or arrangement relating to such
purpose, and the Company agrees to promptly prepare any amendment or supplement to the Registration
Statement and the Prospectus that effects any such changes. As used in this Agreement, the term
“Underwriter” includes, for all purposes of this Agreement unless the context otherwise requires,
any person not listed in Schedule 1 hereto that, pursuant to this Section 10, purchases Securities
that a defaulting Underwriter agreed but failed to purchase.
(b) If, either (i) after giving effect to any arrangements for the purchase of the
Underwritten Securities of a defaulting Underwriter or Underwriters by the non-defaulting
Underwriters, the Representatives and the Company as provided in paragraph (a) above, the aggregate
principal amount of such Underwritten Securities that remain unpurchased does not exceed
one-eleventh of the aggregate principal amount of Underwritten Securities or (ii) after giving
effect to any arrangements for the purchase of the Option Securities of a defaulting Underwriter or
Underwriter by the non-defaulting underwriters, the Representatives and the Company as provided in
paragraph (a) above, the aggregate principal amount of such Option Securities that remains
unpurchased does not exceed one-eleventh of the aggregate principal amount of all Option
Securities to be purchased at the relevant Additional Closing Date, then the Company shall have the
right to require each non-defaulting Underwriter to purchase the aggregate principal amount of
Securities or Option Securities, as the case may be, that such Underwriter agreed to purchase
hereunder on such date plus such Underwriter’s pro rata share (based on the aggregate principal
amount of such Securities that such Underwriter agreed to purchase on such date) of such Securities
of such defaulting Underwriter or Underwriters for which such arrangements have not been made.
(c) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Company as
provided in paragraph (a) above, the aggregate principal amount of Securities that remain
unpurchased on the Closing Date or the Additional Closing Date, as the case may be, exceeds
one-eleventh of the aggregate principal amount of Securities to be purchased on such date, or if
the Company shall not exercise the right described in paragraph (b) above, then this Agreement or,
with respect to any Additional Closing Date, the obligation of the Underwriters to purchase
Securities on the Additional Closing Date shall terminate without liability on the part of the
non-defaulting Underwriters. Any termination of this Agreement pursuant to this Section 10 shall
be without liability on the part of the Company and the Guarantor, except
that the Company will continue to be liable for the payment of expenses as set forth in
Section 11 hereof and except that the provisions of Section 7 hereof shall not terminate and shall
remain in effect.
(d) Nothing contained herein shall relieve a defaulting Underwriter of any liability it may
have to the Company, the Guarantor or any non-defaulting Underwriter for damages caused by its
default.
11. Payment of Expenses.
(a) Whether or not the transactions contemplated by this Agreement are consummated or this
Agreement is terminated, the Company and the Guarantor, jointly and severally, will pay or cause to
be paid all costs and expenses incident to the performance of its obligations hereunder, including
without limitation, (i) the costs incident to the authorization, sale, execution, issue,
authentication, packaging and initial delivery of the Securities and any taxes payable by it in
that connection; (ii) the costs incident to the preparation, printing and filing under the
Securities Act of the Registration Statement, the Preliminary Prospectus, any Issuer Free Writing
Prospectus, any Pricing Disclosure Package and the Prospectus (including all exhibits, amendments
and supplements thereto) and the distribution thereof; (iii) the costs of reproducing and
distributing each of the Underwriting Agreement; (iv) the fees and expenses of the Company’s and
the Guarantor’s counsel and independent accountants; (v) the fees and expenses incurred in
connection with the registration or qualification of the Securities under the state or foreign
securities or blue sky laws of such jurisdictions as the Representatives may designate and the
preparation, printing and distribution of Blue Sky memoranda related thereto (including the
related fees and expenses of counsel for the Underwriters); (vi) any fees charged by rating
agencies for rating the Securities; (vii) the fees and expenses of the Trustee and any paying agent
(including related fees and expenses of any counsel to such parties); (viii) all expenses and
application fees incurred in connection with any filing with, and clearance of the offering by,
FINRA and the approval of the Securities for book-entry transfer by DTC; (ix) all expenses incurred
by the Company and the Guarantor in connection with any “road show” presentation to potential
investors; and (x) all expenses and application fees related to the listing of the Underlying
Securities on the Exchange; provided, however, that except as provided in this Section 11, the
Underwriters shall pay their own costs and expenses, including without limitation the fees and
disbursements of their counsel and any advertising expenses (other than with respect to any road
show presentation) connected with any offers they make.
(b) If the purchase of the Underwritten Securities by the Underwriters is not consummated for
any reason permitted under this Agreement other than because of the termination of this Agreement
pursuant to clauses (i), (iii) and (iv) of Section 9 hereof, the occurrence of any event specified
in Section 10 hereof or the occurrence of any event specified in paragraph (h) of Section 6 hereof,
the Company and the Guarantor, jointly and severally, agree to reimburse the Underwriters for all
out-of-pocket costs and expenses (including the fees and expenses of their counsel) reasonably
incurred by the Underwriters in connection with this Agreement and the offering contemplated
hereby, but the Company and the Guarantor shall be under no further liability to any Underwriter
except as provided in Section 7 hereof.
12. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and the officers
and directors and any controlling persons referred to in Section 7 hereof. Nothing in this
Agreement is intended or shall be construed to give any other person any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision contained herein. No
purchaser of Securities from any Underwriter shall be deemed to be a successor merely by reason of
such purchase.
13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company, the Guarantor and the Underwriters contained in this
Agreement or made by or on behalf of the Company, the Guarantor or the Underwriters pursuant to
this Agreement or
any certificate delivered pursuant hereto shall survive the delivery of and payment for the
Securities and shall remain in full force and effect, regardless of any termination of this
Agreement or any investigation made by or on behalf of the Company, the Guarantor or the
Underwriters.
14. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities
Act; (b) the term “business day” means any day other than a day on which banks are permitted or
required to be closed in New York City; and (c) the term “subsidiary” has the meaning set forth in
Rule 405 under the Securities Act.
15. Miscellaneous.
(a) Authority of the Representatives. Any action by the Underwriters hereunder may be taken
by the Representatives on behalf of the Underwriters, and any such action taken by the
Representatives shall be binding upon the Underwriters.
(b) Notices. All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted and confirmed by any standard form of
telecommunication. Notices to the Underwriters shall be given to the Representatives c/o Citigroup
Global Markets Inc., 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (fax: (000) 000-0000),
Attention: General Counsel; or X.X. Xxxxxx Securities Inc., 000 Xxxxxxx Xxxxxx, 0xx xxxxx, Xxx
Xxxx, XX 00000 (fax: (000) 000-0000); Attention Equity Syndicate Desk. Notices to the Company
shall be given to it at 0000 Xxxxx Xxxxxxxx Xxxxx Xxxxxx, Xxxxxxxxx Xxxxxxx, Xxxxxxxx 00000
(fax:(000) 000-0000); Attention: Treasurer.
(c) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York applicable to agreements made and to be performed in such state.
(d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.
(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any
consent or approval to any departure therefrom, shall in any event be effective unless the same
shall be in writing and signed by the parties hereto.
(f) Headings. The headings herein are included for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.
If the foregoing is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below.
Very truly yours, NEWMONT MINING CORPORATION |
||||
By: | /s/ Xxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxx X. Xxxxxx | |||
Title: | Assistant General Counsel and Assistant Secretary | |||
NEWMONT USA LIMITED |
||||
By: | /s/ Xxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxx X. Xxxxxx | |||
Title: | Assistant General Counsel and Corporate Secretary | |||
Accepted: January 28, 2009 | ||||
CITIGROUP GLOBAL MARKETS INC. | ||||
For itself and on behalf of the
several Underwriters listed in Schedule 1 hereto. |
||||
By: |
/s/ Xxxxxx Xxxxxxxxx | |||
Accepted: January 28, 2009 | ||||
X.X. XXXXXX SECURITIES INC. | ||||
For itself and on behalf of the
several Underwriters listed in Schedule 1 hereto. |
||||
By: |
/s/ Xxxxxxx Xxxxxxxxxxx | |||
Schedule 1
Underwriter | Principal Amount | |||
Citigroup Global Markets Inc. |
$ | 180,000,000 | ||
X.X. Xxxxxx Securities Inc. |
$ | 180,000,000 | ||
BMO Capital Markets Corp. |
$ | 90,000,000 | ||
Total |
$ | 450,000,000 | ||
Schedule 2
1. An increase in long-term debt to approximately $3.5 billion; and
2. An increase in short term debt outstanding to approximately $172 million.
Schedule 3
Newmont USA Limited, a Delaware corporation
Newmont Mining Corporation of Canada Limited, a Canadian federal corporation
P.T. Newmont Nusa Tengarra, an Indonesian limited liability company
Newmont Australia Limited, an Australian limited liability company
Minera Yanacocha S.R.L, a Peruvian limited liability company
Schedule 4
Capitalization
Minera Yanacocha S.R.L.
Newmont holds a 51.35% interest in MineraYanacocha S.R.L. (“Yanacocha”) with the remaining
interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance
Corporation (5%). %). An agreement among the shareholders provides for certain preemptive rights
should a shareholder seek to transfer its ownership interest.
Pursuant to the terms of a bond offering entered into by Yanacocha, Newmont and Buenaventura
collectively must continue to maintain ownership of at least 51% of Yanacocha. If such ownership
level is not maintained, the bonds are subject to repayment. The current principal amount of bonds
outstanding is $100 million.
P.T. Newmont Nusa Tenggara
Newmont operates the Batu Hijau mine, a producer of copper/gold concentrates, and has a 45%
ownership interest therein, held through a partnership with an affiliate of Sumitomo Corporation.
Newmont has a 56.25% interest in the partnership and the Sumitomo affiliate holds the remaining
43.75%. The partnership, in turn, owns 80% of P.T. Newmont Nusa Tenggara (“PTNNT”), the subsidiary
that owns the Batu Hijau mine. The remaining 20% interest in PTNNT is held by P.T. Pukuafu Indah
(“PTPI”), an unrelated Indonesian company.
Under the Batu Hijau Contract of Work, beginning in 2005 and continuing through 2010, a
portion of PTNNT owned by Newmont/Sumitomo must be offered for sale to the Indonesian government or
to Indonesian nationals, equal to the difference between the following percentages and the
percentage of shares already owned by the Indonesian government or Indonesian nationals (if such
number is positive): 15% by the end of the 2005; 23% by the end of 2006; 30% by the end of 2007;
37% by the end of 2008, 44% by the end of 2009; and 51% by the end of 2010. The price at which such
interest must be offered for sale to the Indonesian parties is the highest of the then-current
replacement cost, the price at which shares of the project company would be accepted for listing on
the Jakarta Stock Exchange, or the fair market value of such interest as a going concern. PTPI
currently owns a 20% interest in Batu Hijau, which required the Newmont/Sumitomo partnership to
offer a 3% interest in 2006 and an additional 7% interest in 2007. To date, while local
governments and other Indonesian companies have expressed an interest in acquiring the shares, no
sale transactions have been effected. Pursuant to this provision, it is possible that the
ownership interest of the Newmont/Sumitomo partnership in Batu Hijau could be reduced to 49% by the
end of 2010.
The shares of PTNNT held by Newmont through the Newmont/Sumitomo partnership have been pledged
as security to the senior lenders who provided financing to develop the Batu Hijau mine. The
Newmont/Sumitomo partnership agreement contains provisions on governance and transfers of
partnership interests.
Annex A
Form of Opinion of Holme Xxxxxxx & Xxxx
Annex B
Form of Opinion of Xxxxx Xxxxxx, Vice President and General Counsel of the Company
Annex C
a. | Pricing Disclosure Package |
Annex D
Newmont Mining Corporation
Pricing Term Sheet
Pricing Term Sheet dated January 28, 2009
|
Filed pursuant to Rule 433 | |
Registration File No. 333-146720 | ||
Supplementing the Preliminary | ||
Prospectus Supplements dated | ||
January 27, 2009 and the | ||
Prospectus dated October 15, 2007 |
Newmont Mining Corporation
Concurrent Offerings of
30 million shares of Common Stock, par value $1.60 per share
(the “Common Stock Offering”)
(the “Common Stock Offering”)
and
$450 million aggregate principal amount of 3.00% Convertible Senior Notes due 2012
(the “Convertible Notes Offering”)
(the “Convertible Notes Offering”)
This free writing prospectus relates only to the concurrent offerings of shares of Common Stock and
3.00% Convertible Senior Notes due 2012 and should be read together with (1) the preliminary
prospectus supplement, dated January 27, 2009, relating to the Common Stock Offering, including the
documents incorporated therein by reference, (2) the preliminary prospectus supplement, dated
January 27, 2009, relating to the Convertible Notes Offering, including the documents incorporated
therein by reference, and (3) the related base prospectus, dated October 15, 2007, each filed
pursuant to Rule 424(b) under the Securities Act, Registration Statement No. 333-146720.
Issuer:
|
Newmont Mining Corporation, a Delaware corporation | |
Common stock symbol:
|
NEM |
Common Stock Offering
Title of Securities:
|
Common Stock, par value $1.60 per share, of the Issuer. | |
Shares Issued:
|
30,000,000 (34,500,000 if the over-allotment option is exercised in full). | |
Outstanding Common Shares after Offering: |
473,062,428 (477,562,428 if the over-allotment option is exercised in full). |
Net Proceeds to Issuer after
Underwriting Discount:
|
Approximately $1,075 million (approximately $1,236 million if the over-allotment option is exercised in full). | |
Last Sale Price of Issuer’s
Common Stock on the New York
Stock Exchange:
|
$38.61. | |
Public Offering Price per Share:
|
$37.00. | |
Underwriting Discount per Share:
|
$1.17. | |
Aggregate Underwriting Discount:
|
$35.1 million. | |
Selling Concession per Share:
|
$0.70. | |
Pricing Date:
|
January 28, 2009. | |
Trade Date:
|
January 28, 2009. | |
Settlement Date:
|
February 3, 2009. | |
Joint Book-Running Managers:
|
Citigroup Global Markets Inc. and X.X. Xxxxxx Securities Inc. | |
Co-Managers:
|
BMO Capital Markets Corp. | |
Use of Proceeds:
|
The Issuer intends to use the net proceeds from this offering and the | |
Convertible Notes Offering (including any proceeds resulting from any exercise by the underwriters of their over-allotment option for either offering) to fund the acquisition from AngloGold Xxxxxxx Australia Limited of the 33.33% interest in the Boddington project in Western Australia that it does not already own, and the additional capital expenditures that will result from its increased ownership in the Boddington project, as well as for general corporate purposes. If the Acquisition is not completed, the issuer intends to use the net proceeds from this offering and the Convertible Notes Offering for general corporate purposes. |
Convertible Notes Offering
Title of Securities:
|
3.00% Convertible Senior Notes due 2012 (the “Notes”). | |
Aggregate Principal Amount Offered: |
$450,000,000. | |
Over-allotment Option:
|
$ 67,500,000. | |
Maturity Date:
|
February 15, 2012. | |
Interest:
|
3.00% per year, accruing from the Settlement Date. | |
Interest Payment Dates:
|
Each February 15 and August 15, beginning August 15, 2009. | |
Record Dates:
|
Each February 1 and August 1, beginning on August 1, 2009. |
Price to Public:
|
100%. | |
Net Proceeds to Issuer
after Underwriting
Discount:
|
97.5%. | |
Conversion Premium:
|
25% of the Public Offering Price Per Share in the Common Stock Offering. | |
Conversion Price:
|
Approximately $46.25 per share of Issuer’s common stock, subject to adjustment. | |
Conversion Rate:
|
21.6216 shares of Issuer’s common stock per $1,000 principal amount of Notes, subject to adjustment. | |
CUSIP:
|
651639 AK2. | |
Pricing Date:
|
January 28, 2009. | |
Trade Date:
|
January 28, 2009. | |
Settlement Date:
|
February 3, 2009. | |
Joint Book-Running Managers:
|
Citigroup Global Markets Inc. and X.X. Xxxxxx Securities Inc. | |
Co-Managers:
|
BMO Capital Markets Corp. | |
Use of Proceeds:
|
The Issuer intends to use the net proceeds from this offering and the Common Stock Offering (including any proceeds resulting from any exercise by the underwriters of their over-allotment option for either offering) to fund the acquisition from AngloGold Xxxxxxx Australia Limited of the 33.33% interest in the Boddington project in Western Australia that it does not already own, and the additional capital expenditures that will result from its increased ownership in the Boddington project, as well as for general corporate purposes. If the Acquisition is not completed, the issuer intends to use the net proceeds from this offering and the Common Stock Offering for general corporate purposes. | |
Adjustment to Conversion
Rate Upon Certain
Make-Whole Fundamental
Changes:
|
The number of additional shares to be added to the conversion rate with respect to conversions during the make-whole conversion period will be determined by reference to the table below and is based on the effective date of the relevant make-whole fundamental change and the “applicable price” in respect of such make-whole fundamental change. |
Stock Price
Effective Date | $37.00 | $45.00 | $52.50 | $60.00 | $67.50 | $75.00 | $82.50 | $90.00 | $97.50 | $105.00 | $112.50 | $120.00 | $127.50 | $135.00 | |||||||||||||||||||||||||||||||||||||||||||
February 3, 2009 |
5.4054 | 4.1120 | 2.6430 | 1.7375 | 1.1604 | 0.7823 | 0.5289 | 0.3559 | 0.2360 | 0.1520 | 0.0928 | 0.0512 | 0.0228 | 0.0054 | |||||||||||||||||||||||||||||||||||||||||||
February 15, 2010 |
5.4054 | 3.6886 | 2.2006 | 1.3363 | 0.8219 | 0.5088 | 0.3143 | 0.1912 | 0.1119 | 0.0602 | 0.0267 | 0.0065 | 0.0000 | 0.0000 | |||||||||||||||||||||||||||||||||||||||||||
February 15, 2011 |
5.4054 | 2.9012 | 1.4270 | 0.6916 | 0.3318 | 0.1572 | 0.0717 | 0.0285 | 0.0060 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | |||||||||||||||||||||||||||||||||||||||||||
February 15, 2012 |
5.4054 | 0.6006 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
The exact stock prices and effective dates may not be set forth in the table above, in which case
• | If the stock price is between two stock price amounts in the table or the effective date is between two effective dates in the table, the number of additional shares by which the conversion rate will be increased will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year. |
• | If the stock price is greater than $135.00 per share (subject to adjustment), no additional shares will be added to the conversion rate. | ||
• | If the stock price is less than $37.00 per share (subject to adjustment), no additional shares will be added to the conversion rate. Notwithstanding the foregoing, in no event will the total number of shares of common stock issuable upon conversion of the notes exceed 27.0270 per $1,000 principal amount of notes, subject to adjustments in the same manner as the conversion rate as set forth above under “— Conversion rate adjustments.” |
If any information contained in this Pricing Term Sheet is inconsistent with information contained
in the prospectus, preliminary prospectus supplement relating to the Common Stock Offering or
preliminary prospectus supplement relating to the Convertible Notes Offering, the terms of this
Pricing Term Sheet shall govern.
The Issuer has filed a registration statement (including a prospectus and the related preliminary
prospectus supplements) with the SEC for the offerings to which this communication relates. Before
you invest, you should read the preliminary prospectus in that registration statement, the related
preliminary prospectus supplements and other documents the Issuer has filed with the SEC for more
complete information about the Issuer and these offerings. You may get these documents for free by
visiting XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, copies may be obtained from
Citigroup Global Markets Inc., Brooklyn Army Terminal, 000 00xx Xxxxxx, 0xx Xxxxx, Xxxxxxxx, XX
00000, (000) 000-0000 or from X.X. Xxxxxx, National Statement Processing, Prospectus Library, 4
Chase Xxxxxxxxx Xxxxxx, XX Xxxxx, Xxxxxxxx, Xxx Xxxx 00000 or by
telephone at (000) 000-0000.
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.
Exhibit A
FORM OF LOCK-UP AGREEMENT
January [__], 2009
CITIGROUP GLOBAL MARKETS INC.
X.X. XXXXXX SECURITIES INC.
As Representatives of
the several Underwriters
X.X. XXXXXX SECURITIES INC.
As Representatives of
the several Underwriters
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
and
c/o X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Re: Newmont Mining Corporation — Public Offerings
Ladies and Gentlemen:
The undersigned understands that you, as Representatives of the several Underwriters, propose
to enter into an Underwriting Agreement (the “Equity Underwriting Agreement”) with Newmont Mining
Corporation, a Delaware corporation (the “Company”), providing for the public offering (the “Public
Equity Offering”) by the several Underwriters named in Schedule 1 to the Equity Underwriting
Agreement of Common Stock, par value $1.60 per share, of the Company (the “Common Stock”), and an
Underwriting Agreement (the “Convertible Underwriting Agreement,” together with the Equity
Underwriting Agreement, the “Underwriting Agreements”) with the Company, providing for the public
offering (the “Public Convertible Offering,” together with the Public Equity Offering, the “Public
Offerings”) by the several Underwriters named in Schedule 1 to the Convertible Underwriting
Agreement of convertible notes of the Company (the Common Stock and the convertible notes offered
pursuant to the Underwriting Agreements, collectively, the “Securities”). Capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the Underwriting Agreements.
In consideration of the Underwriters’ agreement to purchase and make the Public Offerings of
the Securities, the undersigned hereby agrees that, without the prior written consent of each of
the Representatives on behalf of the Underwriters, the undersigned will not, during the period
ending 90 days after the date of the prospectuses relating to the Public Offerings, (1) offer,
pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, directly or indirectly, any shares of the Common Stock or any
securities convertible into or exercisable or exchangeable for Common Stock (including without
limitation, Common Stock which may be deemed to be beneficially owned by the undersigned in
accordance with the rules and regulations of the Securities and Exchange Commission and securities
which may be issued upon exercise of a stock option or warrant) or (2) enter into any swap or other
agreement that transfers, in whole or in part, any of the economic consequences of ownership of the
Common Stock, whether any such transaction described in clause (1) or (2) above is to be set-
tled by delivery of Common Stock or such other securities, in cash or otherwise or (3) make
any demand for or exercise any right with respect to the registration of any shares of Common Stock
or any security convertible into or exercisable or exchangeable for Common Stock, in each case
other than (A) transfers of shares of Common Stock (or stock options exercisable for shares of
Common Stock) as a bona fide gift or gifts (including, for the avoidance of doubt, charitable
donations or gifts) or for estate planning purposes, (B) distributions of shares of Common Stock to
partners, members or stockholders of the undersigned, (C) distributions or sales of shares of
Common Stock acquired in open market transactions by the undersigned after the completion of the
Public Offerings, and (D) sales of shares of Common Stock on behalf of the undersigned by the
undersigned’s broker pursuant to a Rule 10b5-1 Trading Plan established prior to the date of this
Letter Agreement; provided that in the case of any transfer or distribution pursuant to
clause (A) or (B), each donee or distributee shall execute and deliver to the Representatives a
lock-up letter in the form of this paragraph; and provided, further, that in the
case of any sale, transfer or distribution pursuant to clause (A), (B) or (C), no filing by any
party (donor, donee, transferor or transferee) under the Securities Exchange Act of 1934, as
amended, or other public announcement shall be required or shall be made voluntarily in connection
with such transfer or distribution (other than a filing on a Form 5 made after the expiration of
the 90-day period referred to above).
In furtherance of the foregoing, the Company, and any duly appointed transfer agent for the
registration or transfer of the securities described herein, are hereby authorized to decline to
make any transfer of securities if such transfer would constitute a violation or breach of this
Letter Agreement.
The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Letter Agreement. All authority herein conferred or agreed to be
conferred and any obligations of the undersigned shall be binding upon the successors, assigns,
heirs or personal representatives of the undersigned.
The undersigned understands that, if the Underwritings Agreement do not become effective, or
if the Underwriting Agreements (other than the provisions thereof which survive termination) shall
terminate or be terminated prior to payment for and delivery of the Securities to be sold
thereunder, the undersigned shall be released from all obligations under this Letter Agreement.
The undersigned understands that the Underwriters are entering into the Underwriting Agreements and
proceeding with the Public Offerings in reliance upon this Letter Agreement.
This Letter Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflict of laws principles thereof.
Very truly yours, |
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By: | ||||
Name: | ||||
Title: | ||||