COMMERCIAL PAPER DEALER AGREEMENT
4(2) PROGRAM
between
TYSON FOODS, INC., as Issuer
and
CHASE SECURITIES INC., as Dealer
Concerning Notes to be issued pursuant to an Issuing
and Paying Agency Agreement dated as of January 12,
2001 between the Issuer and The Chase Manhattan Bank,
as Issuing and Paying Agent
Dated As of
January 12, 2001
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COMMERCIAL PAPER DEALER AGREEMENT
4(2) Program
This agreement ("Agreement") sets forth the understandings between the
Issuer and the Dealer in connection with the issuance and sale by the
Issuer of its short-term promissory notes through the Dealer (the "Notes").
Certain terms used in this Agreement are defined in Section 6 hereof.
The Addendum to this Agreement, and any Annexes or Exhibits described
in this Agreement or such Addendum, are hereby incorporated into this
Agreement and made fully a part hereof.
Section 1. Offers, Sales and Resales of Notes
1.1 While (i) the Issuer has and shall have no obligation to sell the
Notes to the Dealer or to permit the Dealer to arrange any sale of the
Notes for the account of the Issuer, and (ii) the Dealer has and shall have
no obligation to purchase the Notes from the Issuer or to arrange any sale
of the Notes for the account of the Issuer, the parties hereto agree that
in any case where the Dealer purchases Notes from the Issuer, or arranges
for the sale of Notes by the Issuer, such Notes will be purchased or sold
by the Dealer in reliance on the representations, warranties, covenants and
agreements of the Issuer contained herein or made pursuant hereto and on
the terms and conditions and in the manner provided herein.
1.2 So long as this Agreement shall remain in effect, and in addition
to the limitations contained in Section 1.7 hereof, the Issuer shall not,
without the consent of the Dealer, offer, solicit or accept offers to
purchase, or sell, any Notes except (a) in transactions with one or more
dealers which may from time to time after the date hereof become dealers
with respect to the Notes by executing with the Issuer one or more
agreements which contain provisions substantially identical to Section 1 of
this Agreement, of which the Issuer hereby undertakes to provide the Dealer
prompt notice or (b) in transactions with the other dealers listed on the
Addendum hereto, which are executing agreements with the Issuer which
contain provisions substantially identical to Section 1 of this Agreement
contemporaneously herewith. In no event shall the Issuer offer, solicit or
accept offers to purchase, or sell, any Notes directly on its own behalf in
transactions with persons other than broker-dealers as specifically
permitted in this Section 1.2.
1.3 The Notes shall be in a minimum denomination or minimum amount,
whichever is applicable, of $250,000 or integral multiples of $1,000 in
excess thereof, will bear such interest rates, if interest bearing, or will
be sold at such discount from their face amounts, as shall be agreed upon
by the Dealer and the Issuer, shall have a maturity not exceeding 364 days
from the date of issuance (exclusive of days of grace) and shall not
contain any provision for extension, renewal or automatic "rollover. "
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1.4 The authentication, delivery and payment of the Notes shall be
effected in accordance with the Issuing and Paying Agency Agreement and the
Notes shall be either individual bearer physical certificates or
represented by book-entry Notes evidenced by a Master Note registered in
the name of DTC or its nominee in the form or forms annexed to the Issuing
and Paying Agency Agreement.
1.5 If the Issuer and the Dealer shall agree on the terms of the
purchase of any Note by the Dealer or the sale of any Note arranged by the
Dealer (including, but not limited to, agreement with respect to the date
of issue, purchase price, principal amount, maturity and interest rate (in
the case of interest-bearing Notes) or discount thereof (in the case of
Notes issued on a discount basis), and appropriate compensation for the
Dealer's services hereunder) pursuant to this Agreement, the Issuer shall
cause such Note to be issued and delivered in accordance with the terms of
the Issuing and Paying Agency Agreement and payment for such Note shall be
made by the purchaser thereof, either directly or through the Dealer, to
the Issuing and Paying Agent, for the account of the Issuer. Except as
otherwise agreed, in the event that the Dealer is acting as an agent and a
purchaser shall either fail to accept delivery of or make payment for a
Note on the date fixed for settlement, the Dealer shall promptly notify the
Issuer, and if the Dealer has theretofore paid the Issuer for the Note, the
Issuer will promptly return such funds to the Dealer against its return of
the Note to the Issuer, in the case of a certificated Note, and upon notice
of such failure in the case of a book-entry Note.
1.6 The Dealer and the Issuer hereby establish and agree to observe
the following procedures in connection with offers, sales and subsequent
resales or other transfers of the Notes:
(a) Offers and sales of the Notes shall be made only to
investors reasonably believed by the Dealer to be: (i) Institutional
Accredited Investors or Sophisticated Individual Accredited Investors,
(ii) non-bank fiduciaries or agents that will be purchasing Notes for
one or more accounts, each of which is reasonably believed by the
Dealer to be an Institutional Accredited Investor or Sophisticated
Individual Accredited Investor, and (iii) Qualified Institutional
Buyers.
(b) Resales and other transfers of the Notes by or through the
Dealer or by other holders thereof shall be made only in accordance
with the restrictions in the legends described in clause (e) below.
(c) No general solicitation or general advertising shall be used
in connection with the offering of the Notes. Without limiting the
generality of the foregoing, without the prior written approval of
Dealer, the Issuer shall not issue any press release or place or
publish any "tombstone" or other advertisement relating to the Notes.
(d) No sale of Notes to any one purchaser shall be for less than
$250,000 principal or face amount, and no Note shall be issued in a
smaller principal or face amount. If the purchaser is a non-bank
fiduciary acting on behalf of others, each person for whom such
purchaser is acting must purchase at least $250,000 principal or face
amount of Notes.
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(e) Offers and sales of the Notes by the Issuer through the
Dealer acting as agent for the Issuer shall be made in accordance with
Rule 506 under the Securities Act, and shall be subject to the
restrictions described in the legend appearing on Exhibit A hereto. A
legend substantially to the effect of such Exhibit A shall appear as
part of the Private Placement Memorandum used in connection with
offers and sales of Notes hereunder, as well as on each individual
certificate representing a Note and each Master Note representing book-
entry Notes offered and sold pursuant to this Agreement.
(f) Dealer shall furnish or shall have furnished to each
purchaser of Notes for which it has acted as the Dealer being sold to
an ultimate purchaser for the first time a copy of the then-current
Private Placement Memorandum unless such purchaser has previously
received a copy of the Private Placement Memorandum as then in effect.
The Private Placement Memorandum shall expressly state that any person
to whom Notes are offered shall have an opportunity to ask questions
of, and receive information from, the Issuer and the Dealer and shall
provide the names, addresses and telephone numbers of the persons from
whom information regarding the Issuer may be obtained.
(g) The Issuer agrees, for the benefit of the Dealer and each of
the holders and prospective purchasers from time to time of the Notes
that, if at any time the Issuer shall not be subject to Section 13 or
15(d) of the Exchange Act, the Issuer will furnish, upon request and
at its expense, to the Dealer and to holders and prospective
purchasers of Notes information required by Rule 144A(d)(4)(i) in
compliance with Rule 144A(d).
(h) In the event that any Note offered or to be offered by
Dealer would be ineligible for resale under Rule 144A, the Issuer
shall immediately notify Dealer (by telephone, confirmed in writing)
of such fact and shall promptly prepare and deliver to Dealer an
amendment or supplement to the Private Placement Memorandum describing
the Notes that are ineligible, the reason for such ineligibility and
any other relevant information relating thereto.
(i) The Issuer represents that it has outstanding issuances of
commercial paper in the United States market in reliance upon, and in
compliance with, the exemption provided by Section 3(a)(3) of the
Securities Act. In that connection, the Issuer agrees that (a) the
proceeds from the sale of the Notes will be segregated from the
proceeds of the sale of any such commercial paper by being placed in a
separate account; (b) the Issuer will institute appropriate corporate
procedures to ensure that the offers and sales of notes issued by the
Issuer pursuant to the Section 3(a)(3) exemption are not integrated
with offerings and sales of Notes hereunder; and (c) the Issuer will
comply with each of the requirements of Section 3(a)(3) of the Act in
selling commercial paper or other short-term debt securities other
than the Notes in the United States.
1.7 The Issuer hereby represents and warrants to the Dealer, in
connection with offers, sales and resales of Notes, as follows:
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(a) Issuer hereby confirms to the Dealer that (except as
permitted by Section 1.6(i)) within the preceding six months neither
the Issuer nor any person other than the Dealer or the other dealers
referred to in Section 1.2 hereof acting on behalf of the Issuer has
offered or sold any Notes, or any substantially similar security of
the Issuer (including, without limitation, medium-term notes issued by
the Issuer), to, or solicited offers to buy any such security from,
any person other than the Dealer or the other dealers referred to in
Section 1.2 hereof. The Issuer also agrees that, as long as the Notes
are being offered for sale by the Dealer and the other dealers
referred to in Section 1.2 hereof as contemplated hereby and until at
least six months after the offer of Notes hereunder has been
terminated, neither the Issuer nor any person other than the Dealer or
the other dealers referred to in Section 1.2 hereof (except as
contemplated by Section 1.2 hereof) will offer the Notes or any
substantially similar security of the Issuer for sale to, or solicit
offers to buy any such security from, any person other than the Dealer
and the other dealers referred to in Section 1.2 hereof (except to the
extent any of the foregoing would not cause the offer and sale of the
Notes by the Issuer to be integrated with other offers and sales so as
no longer to come within the exemption provided by Section 4(2) of the
Securities Act and Rule 506 thereunder), it being understood that such
agreement is made with a view to bringing the offer and sale of the
Notes within the exemption provided by Section 4(2) of the Securities
Act and Rule 506 thereunder and shall survive any termination of this
Agreement. The Issuer hereby represents and warrants that it has not
taken or omitted to take, and will not take or omit to take, any
action that would cause the offering and sale of Notes hereunder to be
integrated with any other offering of securities, whether such
offering is made by the Issuer or some other party or parties, under
circumstances that would cause the offering and sale of the Notes by
the Issuer to fail to be exempt under Section 4(2) of the Securities
Act.
(b) Except as described in Section 1.7(c) below, the Issuer
represents and agrees that the proceeds of the sale of the Notes are
not currently contemplated to be used for the purpose of buying,
carrying or trading securities within the meaning of Regulation T and
the interpretations thereunder by the Board of Governors of the
Federal Reserve System. Except as described in Section 1.7(c) below,
in the event that the Issuer determines to use such proceeds for the
purpose of buying, carrying or trading securities, whether in
connection with an acquisition of another company or otherwise, the
Issuer shall give the Dealer at least five business days' prior
written notice to that effect. The Issuer shall also give the Dealer
prompt notice of the actual date that it commences to purchase
securities with the proceeds of the Notes. Thereafter, in the event
that the Dealer purchases Notes as principal and does not resell such
Notes on the day of such purchase, to the extent necessary to comply
with Regulation T and the interpretations thereunder, the Dealer will
sell such Notes only to offerees it reasonably believes to be QIBs or
to QIBs it reasonably believes are acting for other QIBs, in each case
in accordance with Rule 144A.
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(c) The Dealer acknowledges that proceeds from the sale of Notes
prior to the consummation of the merger of IBP, inc. ("IBP") into
Lasso Acquisition Corporation ("Lasso"), a wholly-owned subsidiary of
the Issuer, pursuant to an Agreement and Plan of Merger dated as of
January 1, 2001 among the Issuer, Lasso and IBP, as amended from time
to time (the "Merger Agreement") are contemplated to be used, in part,
for the purpose of purchasing shares of common stock of IBP pursuant
to the terms of the offer to purchase up to 50.1% of the common stock
of IBP contemplated by the Merger Agreement. In the event the Dealer
purchases Notes as principal and does not resell such notes on the day
of such purchase, to the extent necessary to comply with Regulation T
and the interpretations thereunder, the Dealer will sell such Notes
only to offerees it reasonably believes to be QIBs or to QIBs it
reasonably believes are acting for other QIBs, in each case in
accordance with Rule 144A.
Section 2. Representations and Warranties of Issuer
The Issuer represents and warrants that:
2.1 The Issuer is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation
and has all the requisite power and authority to execute, deliver and
perform its obligations under the Notes, this Agreement and the Issuing and
Paying Agency Agreement.
2.2 This Agreement and the Issuing and Paying Agency Agreement have
been duly authorized, executed and delivered by the Issuer and constitute
legal, valid and binding obligations of the Issuer enforceable against the
Issuer in accordance with their terms subject to applicable bankruptcy,
insolvency and similar laws affecting creditors' rights generally, and
subject, as to enforceability, to general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law) and
limitations imposed on rights to indemnity and contribution imposed by
applicable law.
2.3 The Notes have been duly authorized, and when issued and
delivered as provided in the Issuing and Paying Agency Agreement, will be
duly and validly issued and delivered and will constitute legal, valid and
binding obligations of the Issuer enforceable against the Issuer in
accordance with their terms subject to applicable bankruptcy, insolvency
and similar laws affecting creditors' rights generally, and subject, as to
enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law) and limitations
imposed on rights to indemnity and contribution imposed by applicable law.
2.4 Assuming compliance by the Dealer with the procedures applicable
to it set forth in Section 1 hereof, the offer and sale of Notes in the
manner contemplated hereby do not require registration of the Notes under
the Securities Act, pursuant to the exemption from registration contained
in Section 4(2) thereof, and no indenture in respect of the Notes is
required to be qualified under the Trust Indenture Act of 1939, as
amended.
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2.5 The Notes will rank at least pari passu with all other unsecured
and unsubordinated indebtedness of the Issuer.
2.6 Assuming compliance by the Dealer with the procedures applicable
to it set forth in Section 1 hereof, no consent or action of, or filing or
registration with, any governmental or public regulatory body or authority,
including the SEC, is required to authorize, or is otherwise required in
connection with the execution, delivery or performance of, this Agreement,
the Notes or the Issuing and Paying Agency Agreement, except (i)as may be
required by the securities or Blue Sky laws of the various states in
connection with the offer and sale of the Notes, and (ii) for the
requirement that the Issuer file with the SEC a notice on Form D in
accordance with Rule 503 under the Securities Act and such amendments
thereto as Rule 503 may require.
2.7 Neither the execution and delivery of this Agreement and the
Issuing and Paying Agency Agreement, nor the issuance and delivery of the
Notes in accordance with the Issuing and Paying Agency Agreement, nor the
fulfillment of or compliance with the terms and provisions hereof or
thereof by the Issuer, will (i) result in the creation or imposition of any
mortgage, lien, charge or encumbrance of any nature whatsoever upon any of
the properties or assets of the Issuer, or (ii) violate or result in a
breach or an event of default under any of the terms of the Issuer's
charter documents or by-laws, any contract or instrument to which the
Issuer is a party or by which it or its property is bound, or any law or
regulation, or any order, writ, injunction or decree of any court or
government instrumentality, to which the Issuer is subject or by which it
or its property is bound, which breach or event of default could reasonably
be expected to have a material adverse effect on the financial condition or
operations of the Issuer and its subsidiaries taken as a whole, and the
validity of the Notes or the ability of the Issuer to perform its
obligations under this Agreement, the Notes or the Issuing and Paying
Agency Agreement.
2.8 There is no litigation or governmental proceeding pending, or to
the knowledge of the Issuer threatened, against or affecting the Issuer or
any of its subsidiaries which could reasonably be expected to have a
material adverse change in the financial condition or operations of the
Issuer and its subsidiaries taken as a whole or the ability of the Issuer
to perform its obligations under this Agreement, the Notes or the Issuing
and Paying Agency Agreement.
2.9 The Issuer is not an "investment company" or an entity
"controlled" by an "investment company" within the meaning of the
Investment Company Act of 1940, as amended.
2.10 Neither the Private Placement Memorandum nor the Company
Information contains any untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading, provided, that the Issuer makes no representation or
warranty as to the Dealer Information.
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2.11 Each (a) issuance of Notes by the Issuer hereunder and (b)
amendment or supplement of the Private Placement Memorandum shall be deemed
a representation and warranty by the Issuer to the Dealer, as of the date
thereof, that, both before and after giving effect to such issuance and
after giving effect to such amendment or supplement, (i) the
representations and warranties given by the Issuer set forth above in this
Section 2 remain true and correct on and as of such date as if made on and
as of such date, (ii) in the case of an issuance of Notes, the Notes being
issued on such date have been duly and validly issued and constitute legal,
valid and binding obligations of the Issuer, enforceable against the Issuer
in accordance with their terms, subject to applicable bankruptcy,
insolvency and similar laws affecting creditors' rights generally and
subject, as to enforceability, to general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law) and
limitations on rights to indemnity and contribution imposed by applicable
law, and (iii) in the case of an issuance of Notes, since the date of the
most recent Private Placement Memorandum, there has been no material
adverse change in the financial condition or operations of the Issuer and
its subsidiaries taken as a whole which has not been disclosed to the
Dealer in writing.
Section 3. Covenants and Agreements of Issuer
The Issuer covenants and agrees that:
3.1 The Issuer will give the Dealer prompt notice (but in any event
prior to any subsequent issuance of Notes hereunder) of any amendment to,
modification of, or waiver with respect to, the Notes or the Issuing and
Paying Agency Agreement, including a complete copy of any such amendment,
modification or waiver.
3.2 The Issuer shall, whenever there shall occur any event that could
reasonably be expected to have a material adverse effect on the financial
condition or results of operations of the Issuer and its subsidiaries taken
as a whole, or any adverse development or occurrence in relation to the
Issuer that would reasonably be expected to be material to the holders of
the Notes or potential holders of the Notes or the ability of the Issuer to
perform its obligations under this Agreement or the Notes, notify the
Dealer (by telephone, confirmed in writing) of such event prior to any
subsequent issuances of Notes hereunder. The Issuer shall, whenever it (i)
receives notice of any downgrading or intended downgrading or any review
for potential change in the rating accorded any of the Issuer's securities
by any nationally recognized statistical rating organization which has
published a rating of the Notes (a "Rating Agency"), or (ii) provides
material information to any Rating Agency that could reasonably be expected
to result in a downgrading or review for potential change in the rating
accorded any of the Issuer's securities by any Rating Agency, in each case,
promptly, and in any event prior to any subsequent issuance of Notes
hereunder, notify the Dealer (by telephone, confirmed in writing) of such
occurrence.
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3.3 The Issuer shall from time to time upon the request of the Dealer
furnish to the Dealer copies of all materials provided by the Issuer to any
national securities exchange regarding (i) the Issuer's operations and
financial condition, and (ii) due authorization and execution of the Notes,
and (iii) the Issuer's ability to pay the Notes as they mature.
3.4 The Issuer will take all such action as the Dealer may reasonably
request to ensure that each offer and each sale of the Notes will comply
with any applicable state Blue Sky laws; provided, that the Issuer shall
not be obligated to file any general consent to service of process or to
qualify as a foreign corporation in any jurisdiction in which it is not so
qualified or subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject.
3.5 The Issuer shall not issue Notes hereunder until the Dealer shall
have received (a) an opinion of counsel to the Issuer, addressed to the
Dealer, satisfactory in form and substance to the Dealer, (b) a copy of the
executed Issuing and Paying Agency Agreement as then in effect, (c) a copy
of resolutions adopted by the Board of Directors of the Issuer,
satisfactory in form and substance to the Dealer and certified by the
Secretary or similar officer of the Issuer, authorizing execution and
delivery by the Issuer of this Agreement the Issuing and Paying Agency
Agreement and the Notes and consummation by the Issuer of the transactions
contemplated hereby and thereby, (d) prior to the issuance of any Notes
represented by a book-entry note registered in the name of DTC or its
nominee, a copy of the executed Letter of Representations among the Issuer,
the Issuing and Paying Agent and DTC, and (e) such other certificates,
opinions, letters and documents as the Dealer shall have reasonably
requested.
3.6 The Issuer shall reimburse the Dealer for all of the Dealer's
reasonable out-of-pocket expenses related to this Agreement, including
expenses incurred in connection with its preparation and negotiation, and
the transactions contemplated hereby (including, but not limited to, the
printing and distribution of the Private Placement Memorandum), and, if
applicable, for the reasonable fees and out-of-pocket expenses of the
Dealer's counsel.
3.7 Without limiting any obligation of the Issuer pursuant to this
Agreement to provide the Dealer with credit and financial information, the
Issuer hereby acknowledges and agrees that the Dealer may share the Company
Information and any other information or matters relating to the Issuer or
the transactions contemplated hereby with affiliates of the Dealer, and
that such affiliates may likewise share information relating to the Issuer
or such transactions with the Dealer.
Section 4. Disclosure
4.1 The Private Placement Memorandum and its contents (other than the
Dealer Information) shall be the sole responsibility of the Issuer. The
Private Placement Memorandum shall contain a statement expressly offering
an opportunity for each prospective purchaser to ask questions of, and
receive answers from, the Issuer concerning the offering of Notes and to
obtain relevant additional information which the Issuer possesses or can
acquire without unreasonable effort or expense.
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4.2 The Issuer agrees promptly to furnish the Dealer the Company
Information as it becomes available.
4.3 (a) The Issuer further agrees to notify the Dealer promptly upon
the occurrence of any event relating to or affecting the Issuer that would
cause the Company Information then in existence to include an untrue
statement of material fact or to omit to state a material fact necessary in
order to make the statements contained therein, in light of the
circumstances under which they are made, not misleading.
(b) In the event that the Issuer gives the Dealer notice pursuant
to Section 4.3(a) and the Dealer notifies the Issuer that it then has Notes
it is holding in inventory, the Issuer agrees promptly to supplement or
amend the Private Placement Memorandum so that such Private Placement
Memorandum, as amended or supplemented, shall not contain an untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in light of the circumstances under
which they were made, not misleading, and the Issuer shall make such
supplement or amendment available to the Dealer.
(c) In the event that (i) the Issuer gives the Dealer notice
pursuant to Section 4.3(a) and (ii) the Dealer does not notify the Issuer
that it is then holding Notes in inventory and (iii) the Issuer chooses not
to promptly amend or supplement the Private Placement Memorandum in the
manner described in clause (b) above, then all solicitations and sales of
Notes shall be suspended until such time as the Issuer has so amended or
supplemented the Private Placement Memorandum, and made such amendment or
supplement available to the Dealer.
Section 5. Indemnification and Contribution
5.1 The Issuer will indemnify and hold harmless the Dealer, each
individual, corporation, partnership, trust, association or other entity
controlling the Dealer, within the meaning of Section 15 of the Securities
Act, any affiliate of the Dealer or any such controlling entity and their
respective directors, officers, employees, partners and incorporators
(hereinafter the "Indemnitees") against any and all liabilities, penalties,
suits, causes of action, losses, damages, claims, costs and expenses
(including, without limitation, reasonable fees and disbursements of
counsel) or judgments of whatever kind or nature (each a "Claim"), imposed
upon, incurred by or asserted against the Indemnitees arising out of or
based upon (i) any allegation that the Private Placement Memorandum, the
Company Information or any information provided by the Issuer to the Dealer
included (as of any relevant time of offer and sale of the Notes by the
Issuer) or includes an untrue statement of a material fact or omitted (as
of any relevant time of offer and sale of the Notes by the Issuer) or omits
to state any material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading or
(ii) arising out of or based upon the breach by the Issuer of any
agreement, covenant or representation made in or pursuant to this
Agreement; provided, however, that the foregoing indemnity shall not extend
to any Claims to the extent they arise out of or are based upon the
Dealer's breach of its obligations hereunder (it being understood that the
Dealer has no obligation to prepare or cause to be prepared any updates or
supplements to the Private Placement Memorandum). This indemnification
shall not apply to the extent that the Claim arises out of or is based on
Dealer Information.
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5.2 Provisions relating to claims made for indemnification under this
Section 5 are set forth on Exhibit B to this Agreement.
5.3 In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in clause (i) of
Section 5.1 is held to be unavailable or insufficient to hold harmless the
Indemnitees, although applicable in accordance with the terms of this
Section 5, the Issuer shall contribute to the aggregate costs incurred by
the Dealer in connection with any Claim in the proportion of the respective
economic interests of the Issuer and the Dealer; provided, however, that
such contribution by the Issuer shall be in an amount such that the
aggregate costs incurred by the Dealer do not exceed the aggregate of the
commissions and fees earned by the Dealer hereunder with respect to the
issue or issues of Notes to which such Claim relates. The respective
economic interests shall be calculated by reference to the aggregate
proceeds to the Issuer of the Notes issued hereunder and the aggregate
commissions and fees earned by the Dealer hereunder.
Section 6. Definitions
6.1 "Claim" shall have the meaning set forth in Section 5.1.
6.2 "Company Information" at any given time shall mean the Private
Placement Memorandum together with, to the extent applicable, (i) the
Issuer's most recent report on Form 10-K filed with the SEC and each report
on Form 10-Q or 8-K filed by the Issuer with the SEC since the most recent
Form 10-K, (ii) the Issuer's most recent annual audited financial
statements and each interim financial statement or report prepared
subsequent thereto, if not included in item (i) above, (iii) the Issuer's
and its affiliates' other publicly available recent reports, including, but
not limited to, any publicly available filings or reports provided to their
respective shareholders, (iv) any other information or disclosure prepared
pursuant to Section 4.3 hereof and (v) any information prepared or approved
by the Issuer for dissemination to investors or potential investors in the
Notes.
6.3 "Dealer" shall mean Chase Securities Inc.
6.4 "Dealer Information" shall mean material concerning the Dealer
and provided by the Dealer in writing expressly for inclusion in the
Private Placement Memorandum.
6.5 "DTC" shall mean The Depository Trust Company.
6.6 "Exchange Act" shall mean the U.S. Securities Exchange Act of
1934, as amended.
6.7 "Indemnitee" shall have the meaning set forth in Section 5.1.
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6.8 "Institutional Accredited Investor" shall mean an institutional
investor that is an accredited investor within the meaning of Rule 501
under the Securities Act and that has such knowledge and experience in
financial and business matters that it is capable of evaluating and bearing
the economic risk of an investment in the Notes, including, but not limited
to, a bank, as defined in Section 3(a)(2) of the Securities Act, or a
savings and loan association or other institution, as defined in Section
3(a)(5)(A) of the Securities Act, whether acting in its individual or
fiduciary capacity.
6.9 "Issuing and Paying Agency Agreement" shall mean the issuing and
paying agency agreement described on the cover page of this Agreement, as
such agreement may be amended or supplemented from time to time.
6.10 "Issuing and Paying Agent" shall mean the party designated as
such on the cover page of this Agreement, as issuing and paying agent under
the Issuing and Paying Agency Agreement.
6.11 "Non-bank fiduciary or agent" shall mean a fiduciary or agent
other than (a) a bank, as defined in Section 3(a)(2) of the Securities Act,
or (b) a savings and loan association, as defined in Section 3(a)(5)(A) of
the Securities Act.
6.12 "Private Placement Memorandum" shall mean offering materials
prepared in accordance with Section 4 (including materials referred to
therein or incorporated by reference therein) provided to purchasers and
prospective purchasers of the Notes, and shall include amendments and
supplements thereto which may be prepared from time to time in accordance
with this Agreement (other than any amendment or supplement that has been
completely superseded by a later amendment or supplement).
6.13 "Qualified Institutional Buyer" shall have the meaning assigned
to that term in Rule 144A under the Securities Act.
6.14 "Rule 144A" shall mean Rule 144A under the Securities Act.
6.15 "SEC" shall mean the U.S. Securities and Exchange Commission.
6.16 "Securities Act" shall mean the U.S. Securities Act of 1933, as
amended.
6.17 "Sophisticated Individual Accredited Investor" shall mean an
individual who (a) is an accredited investor within the meaning of
Regulation D under the Securities Act and (b) based on his or her pre-
existing relationship with the Dealer, is reasonably believed by the Dealer
to be a sophisticated investor (i) possessing such knowledge and experience
(or represented by a fiduciary or agent possessing such knowledge and
experience) in financial and business matters that he or she is capable of
evaluating and bearing the economic risk of an investment in the Notes and
(ii) having a net worth of at least $5 million.
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Section 7. General
7.1 Unless otherwise expressly provided herein, all notices under
this Agreement to parties hereto shall be in writing and shall be effective
when received at the address of the respective party set forth in the
Addendum to this Agreement.
7.2 This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to its conflict of
laws provisions.
7.3 EACH OF THE DEALER AND THE ISSUER AGREES THAT ANY SUIT, ACTION OR
PROCEEDING BROUGHT BY THE DEALER AGAINST THE ISSUER IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT OR THE NOTES OR THE OFFER AND SALE OF THE
NOTES MAY BE BROUGHT IN THE U.S. FEDERAL COURTS LOCATED IN THE BOROUGH OF
MANHATTAN OR THE COURTS OF THE SATE OF NEW YORK LOCATED IN THE BOROUGH OF
MANHATTAN. EACH OF THE DEALER AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY
JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.
7.4 This Agreement may be terminated, at any time, by the Issuer,
upon one business day's prior notice to such effect to the Dealer, or by
the Dealer upon one business day's prior notice to such effect to the
Issuer. Any such termination, however, shall not affect the obligations of
the Issuer under Sections 3.7, 5 and 7.3 hereof or the respective
representations, warranties, agreements, covenants, rights or
responsibilities of the parties made or arising prior to the termination of
this Agreement.
7.5 This Agreement is not assignable by either party hereto without
the written consent of the other party; provided, however, that the Dealer
may assign its rights and obligations under this Agreement to any wholly-
owned direct or indirect subsidiary of the Dealer or of its ultimate
parent. This Agreement shall not confer any rights or remedies upon any
person other than the parties hereto and their respective permitted
assigns.
7.6 This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.
7.7 This Agreement constitutes the entire agreement between the
parties hereto and supercedes any prior understandings, agreements or
representations by or between the parties hereto, written or oral, to the
extent they relate to the subject matter hereof.
7.7 Any payments to the Dealer hereunder, whether pursuant to
Sections 3.6, 5.1 or otherwise, shall be in US dollars and shall be free of
all withholding, stamp and other similar taxes and of all other
governmental charges of any nature whatsoever. In the event any
withholding is required by law, the Issuer agrees to (i) pay the same and
(ii) pay such additional amounts to the Dealer which, after deduction of
any such withholding, stamp or other taxes or governmental charges of any
nature whatsoever imposed with respect to the payment of such additional
amount, shall equal the amount withheld pursuant to clause (i).
324
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date and year first above written.
TYSON FOODS, INC.,
as Issuer
By:
Name:
Title:
CHASE SECURITIES INC.,
as Dealer
By:
Name:
Title:
325
ADDENDUM
1. The other dealers referred to in clause (b) of Section 1.2 of the
Agreement are:
Banc of America Securities LLC
X.X. Xxxxxx Securities Inc.
Xxxxxxx Xxxxx Money Markets Inc., as Dealer for Notes with maturities
up to 270 days
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, as Dealer for
Notes with maturities over 270 days up to 365 days
Credit Suisse First Boston Corporation
SunTrust Equitable Securities Corp.
2. The addresses of the respective parties for purposes of notices under
Section 7.1 are as follows:
For the Issuer:
Address: 0000 Xxxx Xxxxxxx Xxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Attention: General Counsel
Telephone number: (000) 000-0000
Fax number: (000) 000-0000
For the Dealer:
Address: 000 Xxxx Xxxxxx
0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Money Market Division
Telephone number: 000-000-0000
Fax number: 000-000-0000
326
EXHIBIT A
FORM OF LEGEND FOR
PRIVATE PLACEMENT MEMORANDUM AND NOTES
THE NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "ACT"), OR ANY OTHER APPLICABLE
SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY BE MADE
ONLY IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS. BY ITS ACCEPTANCE OF A NOTE, THE
PURCHASER WILL BE DEEMED TO REPRESENT THAT IT HAS BEEN
AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO
THE ISSUER AND THE NOTES, THAT IT IS NOT ACQUIRING SUCH NOTE
WITH A VIEW TO ANY DISTRIBUTION THEREOF AND THAT IT IS
EITHER (A) AN INSTITUTIONAL INVESTOR OR HIGHLY SOPHISTICATED
INDIVIDUAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN
THE MEANING OF RULE 501(a) UNDER THE ACT AND WHICH, IN THE
CASE OF AN INDIVIDUAL, (i) POSSESSES SUCH KNOWLEDGE AND
EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS THAT HE OR SHE
IS CAPABLE OF EVALUATING AND BEARING THE ECONOMIC RISK OF AN
INVESTMENT IN THE NOTES AND (ii) HAS A NET WORTH OF AT LEAST
$5 MILLION (AN "INSTITUTIONAL ACCREDITED INVESTOR" OR
"SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR",
RESPECTIVELY) AND THAT EITHER IS PURCHASING NOTES FOR ITS
OWN ACCOUNT, IS A U.S. BANK (AS DEFINED IN SECTION 3(a)(2)
OF THE ACT) OR A SAVINGS AND LOAN ASSOCIATION OR OTHER
INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT)
ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR IS A
FIDUCIARY OR AGENT (OTHER THAN A U.S. BANK OR SAVINGS AND
LOAN) PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF
WHICH IS SUCH AN INSTITUTIONAL ACCREDITED INVESTOR OR
SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR (i) WHICH
ITSELF POSSESSES SUCH KNOWLEDGE AND EXPERIENCE OR (ii) WITH
RESPECT TO WHICH SUCH PURCHASER HAS SOLE INVESTMENT
DISCRETION; OR (B) A QUALIFIED INSTITUTIONAL BUYER ("QIB")
WITHIN THE MEANING OF RULE 144A UNDER THE ACT WHICH IS
ACQUIRING NOTES FOR ITS OWN ACCOUNT OR FOR ONE OR MORE
ACCOUNTS, EACH OF WHICH IS A QIB AND WITH RESPECT TO EACH OF
WHICH THE PURCHASER HAS SOLE INVESTMENT DISCRETION; AND THE
PURCHASER ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY
RELY UPON THE EXEMPTION FROM THE REGISTRATION PROVISIONS OF
SECTION 5 OF THE ACT PROVIDED BY RULE 144A. BY ITS
ACCEPTANCE OF A NOTE, THE PURCHASER THEREOF SHALL ALSO BE
DEEMED TO AGREE THAT ANY RESALE OR OTHER TRANSFER THEREOF
WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR TO
CHASE SECURITIES INC. OR ANOTHER PERSON DESIGNATED BY THE
ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE
"PLACEMENT AGENTS"), NONE OF WHICH SHALL HAVE ANY OBLIGATION
TO ACQUIRE SUCH NOTE, (2) THROUGH A PLACEMENT AGENT TO AN
INSTITUTIONAL ACCREDITED INVESTOR OR SOPHISTICATED
INDIVIDUAL ACCREDITED INVESTOR OR A QIB BY A PLACEMENT
AGENT, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE
REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS OF
$250,000.
327
EXHIBIT B
FURTHER PROVISIONS RELATING
TO INDEMNIFICATION
(a) The Issuer agrees to reimburse each Indemnitee for all expenses
(including reasonable fees and disbursements of internal and external
counsel) as they are incurred by it in connection with investigating or
defending any loss, claim, damage, liability or action in respect of which
indemnification may be sought under clause (i) of Section 5.1 of the
Agreement (whether or not it is a party to any such proceedings).
(b) Promptly after receipt by an Indemnitee of notice of the existence
of a Claim arising under clause (i) of Section 5.1 of the Agreement, such
Indemnitee will, if a claim in respect thereof is to be made against the
Issuer, notify the Issuer in writing of the existence thereof; provided
that (i) the omission so to notify the Issuer will not relieve it from any
liability which it may have hereunder unless and except to the extent it
did not otherwise learn of such Claim and the issuer is materially
prejudiced thereby as determined by a court of law, and (ii) the omission
so to notify the Issuer will not relieve it from liability which it may
have to an Indemnitee otherwise than on account of this indemnity
agreement. In case any such Claim is made against any Indemnitee and it
notifies the Issuer of the existence thereof, the Issuer will be entitled
to participate therein, and to the extent that it may elect by written
notice delivered to the Indemnitee, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnitee; provided that if the
defendants in any such Claim include both the Indemnitee and the Issuer and
the Indemnitee shall have concluded that there may be legal defenses
available to it which are different from or additional to those available
to the Issuer, the Issuer shall not have the right to direct the defense of
such Claim on behalf of such Indemnitee, and the Indemnitee shall have the
right to select separate counsel to assert such legal defenses on behalf of
such Indemnitee. Upon receipt of notice from the Issuer to such Indemnitee
of the Issuer's election so to assume the defense of such Claim and
approval by the Indemnitee of counsel, the Issuer will not be liable to
such Indemnitee for expenses incurred thereafter by the Indemnitee in
connection with the defense thereof (other than reasonable costs of
investigation) unless (i) the Indemnitee shall have employed separate
counsel in connection with the assertion of legal defenses in accordance
with the proviso to the next preceding sentence (it being understood,
however, that the Issuer shall not be liable for the expenses of more than
one separate counsel (in addition to any local counsel in the jurisdiction
in which any Claim is brought), approved by the Dealer, representing the
Indemnitee who is party to such Claim), (ii) the Issuer shall not have
employed counsel reasonably satisfactory to the Indemnitee to represent the
Indemnitee within a reasonable time after notice of existence of the Claim
or (iii) the Issuer has authorized in writing the employment of counsel for
the Indemnitee. The indemnity, reimbursement and contribution obligations
of the Issuer hereunder shall be in addition to any other liability the
Issuer may otherwise have to an Indemnitee and shall be binding upon and
inure to the benefit of any successors, assigns, heirs and personal
representatives of the Issuer and any Indemnitee. The Issuer agrees that
without the Dealer's prior written consent, it will not settle, compromise
or consent to the entry of any judgment in any Claim in respect of which
328
indemnification may be sought under the indemnification provision of the
Agreement (whether or not the Dealer or any other Indemnitee is an actual
or potential party to such Claim), unless such settlement, compromise or
consent includes an unconditional release of each Indemnitee from all
liability arising out of such Claim.
329
