COMMERCIAL PAPER DEALER AGREEMENT 4(2) PROGRAM between COMMERCIAL METALS COMPANY, as Issuer and GOLDMAN, SACHS & CO., as Dealer
Exhibit 10.2
COMMERCIAL PAPER DEALER AGREEMENT
4(2) PROGRAM
4(2) PROGRAM
between
COMMERCIAL METALS COMPANY, as Issuer
and
XXXXXXX, XXXXX & CO., as Dealer
Concerning Notes to be issued pursuant to an Issuing and
Paying Agency Agreement dated as of November 24, 1998, as
amended, between the Issuer and JPMorgan Chase Bank, N.A.,
as Issuing and Paying Agent
Dated as of
October 7, 2009
COMMERCIAL PAPER DEALER AGREEMENT
4(2) Program
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 (the
“Notes”) through the Dealer.
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 those contained in 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 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 365 days from the date of issuance (exclusive of days of grace) and shall
not contain any provision for extension, renewal or automatic “rollover.”
1.4 The authentication and issuance of, and payment for, the Notes shall be effected in
accordance with the Issuing and Paying Agency Agreement, and the Notes shall be either individual
physical certificates or 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. If such failure occurred for any reason other than default by the
Dealer, the Issuer shall reimburse the Dealer on an equitable basis for the Dealer’s loss of the
use of such funds for the period such funds were credited to the Issuer’s account.
1.6 All offers and sales of the Notes by the Issuer shall be effected pursuant to the
exemption from the registration requirements of the Securities Act provided by Section 4(2)
thereof, which exempts transactions by an issuer not involving any public offering. 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: (i) investors
reasonably believed by the Dealer to be Qualified Institutional Buyers (“QIBs”),
Institutional Accredited Investors or Sophisticated Individual Accredited Investors,
and (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.
(b) Resales and other transfers of the Notes by the holders thereof shall be
made only in accordance with the restrictions in the legend 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 the 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) The Dealer shall furnish or shall have furnished to each purchaser of Notes for
which it has acted as the Dealer 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 the Dealer would be
ineligible for resale under Rule 144A, the Issuer shall immediately notify the Dealer (by
telephone, confirmed in writing) of such fact and shall promptly prepare and deliver to the
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 is not currently issuing commercial paper in the
United States market in reliance upon the exemption provided by Section 3(a)(3) of the
Securities Act. The Issuer agrees that, if it shall issue commercial paper after the date
hereof in reliance upon such exemption, (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 Securities 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:
(a) The 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 named in the Addendum hereto acting on behalf of
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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 named in the Addendum hereto. The Issuer also agrees that (except as
permitted by Section 1.6(i)), as long as the Notes are being offered for sale by the Dealer
and the other dealers named in the Addendum hereto 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 named in the Addendum hereto (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 or the other dealers named in the Addendum hereto, 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.
(b) 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. 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 either (i) 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 or (ii) in a manner which would not cause a violation of Regulation T and the
interpretations thereunder.
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
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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).
2.4 Assuming compliance by the Dealer with the procedures applicable to it set forth in
Section 1 hereof, the offer and sale of the 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.
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 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.
2.7 Neither the execution and delivery of this Agreement and the Issuing and Paying Agency
Agreement, nor the issuance 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 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 default, individually or in the aggregate, could reasonably be expected to
have a material adverse effect on the financial condition or operations of the Issuer 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 might result in
a material adverse change in the financial condition or operations of the Issuer or the ability of
the Issuer to perform its obligations under this Agreement, the Notes or the Issuing and Paying
Agency Agreement.
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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’s
information.
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 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
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 issuance of
Notes hereunder. The Issuer shall, whenever it 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), promptly, and in any event prior to any subsequent issuance of Notes
hereunder, notify the Dealer (by telephone, confirmed in writing) of such change, development, or
occurrence.
3.3 The Issuer shall from time to time upon written request from the Dealer furnish to the
Dealer such information as the Dealer may reasonably request, including, without limitation,
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any press releases or copies of material provided by the Issuer to any national securities exchange
or rating agency, regarding (i) the Issuer’s operations and financial condition, (ii) the 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, however, 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 will not be in default of any of its obligations hereunder, under the Notes or
under the Issuing and Paying Agency Agreement, at any time that any of the Notes are outstanding.
3.6 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.
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.
4.2 The Issuer agrees to promptly 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
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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 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), (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, any affiliate of the Dealer
or any such controlling entity and their respective directors, officers, employees, partners,
incorporators, shareholders, servants, trustees and agents (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/or 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/or 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 in (i) above shall not
extend to any Claims to the extent they arise out of or are based upon Dealer Information,
and the foregoing indemnity in (ii) above shall not extend to any Claims to the extent they
arise out of or are based upon the gross negligence or willful misconduct of the Dealer in the
performance or failure to perform its obligations hereunder as established by a final judgment of a
court of competent jurisdiction.
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 this Section 5 is held to be unavailable or insufficient to hold
harmless the Indemnitees, although applicable in accordance with the terms of this Section 5, the
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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 Information” shall mean material concerning the Dealer and provided by the Dealer
in writing expressly for inclusion in the Private Placement Memorandum.
6.4 “DTC” shall mean The Depository Trust Company.
6.5 “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended.
6.6 “Indemnitee” shall have the meaning set forth in Section 5.1.
6.7 “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.
6.8 “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.
6.9 “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
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Agreement, or any successor thereto in accordance with the Issuing and Paying Agency Agreement.
6.10 “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.
6.11 “Private Placement Memorandum” shall mean offering materials prepared in accordance with
Section 4 (including materials referred to therein or incorporated by reference therein, if any)
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).
6.12 “Qualified Institutional Buyer” shall have the meaning assigned to that term in Rule 144A
under the Securities Act.
6.13 “Rule 144A” shall mean Rule 144A under the Securities Act.
6.14 “SEC” shall mean the U.S. Securities and Exchange Commission.
6.15 “Securities Act” shall mean the U.S. Securities Act of 1933, as amended.
6.16 “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 not less than $5 million in investments (as defined, for purposes of this section, in Rule
2a51-1 under the Investment Company Act of 1940, as amended).
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 The Issuer agrees that any suit, action or proceeding brought by the Issuer against the
Dealer in connection with or arising out of this Agreement or the Notes or the offer and sale of
the Notes shall be brought solely in the United States federal courts located in the Borough of
Manhattan or the courts of the State 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.
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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 3.6, 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 subsidiary of the ultimate parent company of
the Dealer.
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 is for the exclusive benefit of the parties hereto, and their respective
permitted successors and assigns hereunder, and shall not be deemed to give any legal or equitable
right, remedy or claim to any other person whatsoever.
7.8 The Issuer acknowledges and agrees that the Dealer is acting solely in the capacity of an
arm’s length contractual counterparty to the Issuer with respect to the offering of the Notes
contemplated hereby (including in connection with determining the price and terms of the offering)
and not as a financial advisor or a fiduciary to, or an agent of (except to the extent explicitly
set forth herein), the Issuer or any other person. The Dealer has not assumed an advisory or
fiduciary responsibility in favor of the Issuer with respect to the offering contemplated hereby or
the process leading thereto (irrespective of whether the Dealer has advised or is currently
advising the Issuer on other matters) or any other obligation to the Issuer except the obligations
expressly set forth in this Agreement. Additionally, the Dealer is not advising the Issuer or any
other person as to any legal, tax, investment, accounting or regulatory matters in any
jurisdiction. The Issuer shall consult with its own advisors concerning such matters and shall be
responsible for making its own independent investigation and appraisal of the transactions
contemplated hereby, and the Dealer shall have no responsibility or liability to the Issuer with
respect thereto. Any review by the Dealer of the Issuer, the transactions contemplated hereby or
other matters relating to such transactions will be performed solely for the benefit of the Dealer
and shall not be on behalf of the Issuer.
7.9 This Agreement constitutes the entire agreement between the parties hereto and supersedes
any prior understanding (whether written or oral) between the Issuer and the Dealer with respect to
the subject matter hereof.
[Signature Page to Follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date and year first above written.
| COMMERCIAL METALS COMPANY, as Issuer | ||||||
| By: | /s/ Xxxxx X. Xxxxxxx | |||||
| Name: | Xxxxx X. Xxxxxxx
|
|||||
| Title: | Treasurer | |||||
| XXXXXXX, XXXXX & CO., as Dealer | ||||||
| By: | /s/ Xxxxxx X. Xxxxxx | |||||
| Name: | Xxxxxx X. Xxxxxx
|
|||||
| Title: | Vice President | |||||
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ADDENDUM
The following additional clauses shall apply to the Agreement and be deemed a part thereof.
1. The other dealer referred to in clause (b) of Section 1.2 of the Agreement is Banc of America
Securities LLC.
2. The addresses of the respective parties for purposes of notices under Section 7.1 are as
follows:
| For the Issuer: | ||||||
| Address: | 0000 X. XxxXxxxxx Xxxx. Xxxxxx, Xxxxx 00000 |
|||||
| Attention: | Xxxxx X. Xxxxxxx, Treasurer | |||||
| Telephone number: | (000) 000-0000 | |||||
| Fax number: | (000) 000-0000 | |||||
| For the Dealer: | ||||||
| Address: | 00 Xxxxx Xxxxxx, 00xx Xxxxx Xxx Xxxx, XX 00000 |
|||||
| Attention: | Money Market Origination | |||||
| Telephone number: | (000) 000-0000 | |||||
| Fax number: | (000) 000-0000 | |||||
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EXHIBIT A
FORM OF LEGEND FOR
PRIVATE PLACEMENT MEMORANDUM AND NOTES
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 (I) IT HAS BEEN AFFORDED
AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO COMMERCIAL METALS COMPANY (THE
“ISSUER”) AND THE NOTES, (II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY
DISTRIBUTION THEREOF AND (III) IT IS EITHER (A) (1) 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 NOT LESS THAN $5 MILLION IN INVESTMENTS (AN “INSTITUTIONAL
ACCREDITED INVESTOR” OR “SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR”,
RESPECTIVELY) AND (2) (i) IS PURCHASING NOTES FOR ITS OWN ACCOUNT, (ii) 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 (iii) IS A FIDUCIARY OR AGENT (OTHER THAN A U.S.
BANK OR SAVINGS AND LOAN ASSOCIATION) 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 ALSO
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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 BANC OF AMERICA SECURITIES LLC 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, SOPHISTICATED INDIVIDUAL
ACCREDITED INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE
REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS OF $250,000.
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EXHIBIT B
FURTHER PROVISIONS RELATING
TO INDEMNIFICATION
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 Section 5 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, 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 the Issuer from any liability which it may have hereunder unless and except to the
extent it did not otherwise learn of such Claim and such failure results in the forfeiture by the
Issuer of substantial rights and defenses, 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 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 (i) includes an unconditional release of each Indemnitee
from all liability arising out of such Claim, and (ii)
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does not include a statement as to, or an admission of, fault, culpability or failure to act, by or
on behalf of any Indemnitee.
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