UDR, INC. Medium-Term Notes, Series A Due Nine Months or More From Date of Issue DISTRIBUTION AGREEMENT
Exhibit 1.01
March 20, 2007
X.X. Xxxxxx Securities Inc.
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Banc of America Securities LLC | |
000 Xxxx Xxxxxx, 0xx Xxxxx
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Xxxxxx Xxxxx | |
Xxx Xxxx, Xxx Xxxx 00000
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000 Xxxxx Xxxxx Xxxxxx | |
| Xxxxxxxxx, Xxxxx Xxxxxxxx 00000 | ||
Citigroup Global Markets Inc.
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Xxxxxxx, Xxxxx & Co. | |
000 Xxxxxxxxx Xxxxxx
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00 Xxxxx Xxxxxx | |
Xxx Xxxx, Xxx Xxxx 00000
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Xxx Xxxx, Xxx Xxxx 00000 | |
McDonald Investments Inc.
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Xxxxxx Xxxxxxx & Co. Incorporated | |
000 Xxxxxx Xxxxxx
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0000 Xxxxxxxx | |
Xxxxxxxxx, Xxxx 00000
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Xxx Xxxx, Xxx Xxxx 00000 | |
SunTrust Capital Markets, Inc.
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Wachovia Capital Markets, LLC | |
000 Xxxxxxxxx Xxxxxx
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000 X. Xxxxxxx Xx., XX0000 | |
23rd Floor, MC 3947
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Charlotte, North Carolina 28288 | |
Xxxxxxx, Xxxxxxx 00000 |
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Xxxxx Fargo Securities, LLC |
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000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000 |
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Xxx Xxxxxxxxx, Xxxxxxxxxx 00000 |
Ladies and Gentlemen:
UDR, Inc., a Maryland corporation (the “Company”), confirms its agreement with X.X. Xxxxxx
Securities Inc., Banc of America Securities LLC, Citigroup Global Markets Inc., Xxxxxxx, Sachs &
Co., McDonald Investments Inc., Xxxxxx Xxxxxxx & Co. Incorporated, SunTrust Capital Markets, Inc.,
Wachovia Capital Markets, LLC and Xxxxx Fargo Securities, LLC (each, an “Agent”, and together, the
“Agents”) with respect to the issue and sale by the Company of its Medium-Term Notes, Series A Due
Nine Months or More From Date of Issue (the “Notes”). The Notes are to be issued pursuant to an
Indenture, dated as of November 1, 1995, as amended, supplemented or modified from time to time
(the “Indenture”), between the Company (successor by merger to United Dominion Realty Trust, Inc.,
a Virginia corporation) and U.S. Bank National Association, successor trustee to Wachovia Bank,
National Association (formerly known as First Union National Bank of Virginia), as trustee (the
“Trustee”).
United Dominion Realty, L.P., a Delaware limited partnership (the “Operating Partnership”),
and Heritage Communities L.P., a Delaware limited partnership (“Heritage OP”), are hereinafter
referred to collectively as the “Operating Entities” and individually referred to as
an “Operating Entity.” All references herein to any “subsidiary” or “subsidiaries” of the
Company shall be deemed to include the Operating Entities unless otherwise expressly stated.
This Agreement provides both for the sale of Notes by the Company to one or more Agents as
principal for resale to investors and other purchasers and for the sale of Notes by the Company
directly to investors (as may from time to time be agreed to by the Company and the applicable
Agent), in which case such Agent will act as an agent of the Company in soliciting purchases of the
Notes.
The Company has filed with the Securities and Exchange Commission (the “Commission”) an
automatic shelf registration statement on Form S-3 (No. 333-131278) which provides for the
registration of securities (including the Notes) under the Securities Act of 1933, as amended (the
“1933 Act”), and the offering thereof from time to time in accordance with Rule 415 of the rules
and regulations of the Commission under the 1933 Act (the “1933 Act Regulations”), and the Company
has filed such post-effective amendments thereto as may have been required prior to the Company’s
acceptance of an offer to purchase Notes. Such registration statement (as so amended, if
applicable), including any document incorporated therein by reference pursuant to the Securities
Exchange Act of 1934, as amended (the “1934 Act”), and any prospectus, prospectus supplement and/or
pricing supplement deemed or retroactively deemed to be a part thereof that has not been superseded
or modified is referred to herein as the “Registration Statement.” “Registration Statement”
without reference to a time means the Registration Statement as of the time of the first contract
of sale of any issue of Notes, which time shall be considered the “effective date” of the
Registration Statement with respect to such Notes. For purposes of the definition of Registration
Statement as used herein, information contained in a form of prospectus, prospectus supplement or
pricing supplement that is deemed retroactively to be a part of the Registration Statement pursuant
to Rule 430B of the 1933 Act Regulations (“Rule 430B”) shall be considered to be included in the
Registration Statement at the time specified in Rule 430B. The prospectus supplement relating to
the series of Notes and the base prospectus and all applicable amendments or supplements thereto,
in each case immediately prior to the Applicable Time (as defined in the applicable Terms
Agreement), including any document incorporated by reference therein, is herein called the
“Statutory Prospectus.” The “Prospectus” means the Statutory Prospectus and the final pricing
supplement in the form first filed with the Commission pursuant to Rule 424(b) of the 1933 Act
Regulations (“Rule 424(b)”) that discloses the public offering price and other final terms of the
Notes of any issue and otherwise satisfies Section 10(a) of the 1933 Act. A “preliminary
prospectus” shall be deemed to refer to any prospectus, any prospectus supplement and any pricing
supplement used before the acceptance by the Company of an offer for the purchase of Notes which
omitted information to be included upon pricing in a form of prospectus filed with the Commission
pursuant to Rule 424(b). For purposes of this Agreement, all references to the Registration
Statement, Statutory Prospectus, Prospectus or preliminary prospectus or to any amendment or
supplement thereto shall be deemed to include any copy filed with the Commission pursuant to its
Electronic Data Gathering, Analysis and Retrieval system (“XXXXX”).
All references in this Agreement to financial statements and schedules and other information
which is “disclosed”, “contained,” “included” or “stated” (or other references of like import) in
the Registration Statement, Statutory Prospectus, Prospectus or preliminary prospectus
shall be deemed to include all such financial statements and schedules and other information
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which is incorporated by reference in or otherwise deemed by the 1933 Act Regulations to be a part
of or included in the Registration Statement, Statutory Prospectus, Prospectus or preliminary
prospectus, as the case may be; and all references in this Agreement to amendments or supplements
to the Registration Statement, Statutory Prospectus, Prospectus or preliminary prospectus shall be
deemed to include the filing of any document under the 1934 Act which is incorporated by reference
in or otherwise deemed by the 1933 Act Regulations to be a part of or included in the Registration
Statement, Statutory Prospectus, Prospectus or preliminary prospectus, as the case may be.
SECTION 1. Appointment as Agents.
(a) Appointment. Subject to the terms and conditions stated herein and subject to the
reservation by the Company of the right to sell Notes directly on its own behalf, the Company
hereby agrees that Notes will be sold to or through the Agents. Notwithstanding any provision
herein to the contrary, the Company reserves the right to appoint additional agents for the offer
and sale of Notes, which agency may be on an on-going basis or on a one-time basis. Any such
additional agent shall become a party to this Agreement and shall thereafter be subject to the
provisions hereof and entitled to the benefits hereunder upon the execution of a counterpart hereof
or other form of acknowledgement of its appointment hereunder, including the form of letter
attached hereto as Exhibit B, and delivery to the Company of addresses for notice hereunder and
under the Procedures.
(b) Sale of Notes. The Company shall not sell or approve the solicitation of
purchases of Notes in excess of the amount which shall be authorized by the Company from time to
time. The Agents shall have no responsibility for maintaining records with respect to the
aggregate initial offering price of Notes sold, or of otherwise monitoring the availability of
Notes for sale, under the Registration Statement.
(c) Purchases as Principal. The Agents shall not have any obligation to purchase
Notes from the Company as principal, but one or more Agents may agree from time to time to purchase
Notes as principal for resale to investors and other purchasers determined by such Agent or Agents.
Any such purchase of Notes from the Company by an Agent as principal shall be made in accordance
with Section 3(a) hereof.
(d) Solicitations as Agents. If agreed upon by an Agent and the Company, such Agent,
acting solely as agent for the Company and not as principal, will solicit purchases of the Notes.
Unless otherwise instructed by the Company, such Agent will communicate to the Company, orally,
each offer to purchase Notes solicited by it on an agency basis other than those offers rejected by
such Agent. Such Agent shall have the right, in its discretion reasonably exercised, to reject any
proposed purchase of Notes, as a whole or in part, and any such rejection shall not be deemed a
breach of its agreement contained herein. The Company may accept or reject any proposed purchase
of Notes, in whole or in part. Such Agent shall make reasonable efforts to assist the Company in
obtaining performance by each purchaser whose offer to purchase Notes has been solicited by it and
accepted by the Company. Such Agent shall not have any liability to the Company in the event that
any such purchase is not consummated for
any reason. If the Company shall default on its obligation to deliver Notes to a purchaser
whose offer it has accepted, the Company shall (i) hold such Agent harmless against any loss, claim
or
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damage arising from or as a result of such default by the Company and (ii) pay to such Agent any
commission to which it would otherwise be entitled absent such default.
(e) Reliance. The Company and the Agents agree that any Notes purchased from the
Company by one or more Agents as principal shall be purchased, and any Notes the placement of which
an Agent arranges as agent of the Company shall be placed by such Agent, in reliance on the
representations, warranties, covenants and agreements of the Company contained herein and on the
terms and conditions and in the manner provided herein.
SECTION 2. Representations and Warranties.
(a) The Company represents and warrants to each Agent as of the date hereof, as of the date of
the effectiveness of any amendment to the Registration Statement (including the filing of any
document incorporated by reference therein), as of the date of any supplement to the Prospectus, as
of the Applicable Time and as of the date of each delivery of Notes (whether to such Agent as
principal or through such Agent as agent) (the date of each such delivery to such Agent as
principal is referred to herein as the “Settlement Date”) (each of the times referred to above
shall be a “Representation Date”), as follows:
(i) Due Incorporation and Qualification. The Company has been duly organized
and is validly existing as a corporation in good standing under the laws of the State of
Maryland, with full power and authority to own, lease and operate its properties and conduct
its business as described in the General Disclosure Package (as defined below) and the
Prospectus; and the Company is duly qualified to transact business in all jurisdictions in
which the conduct of its business requires such qualification except where the failure to so
qualify would not have a material adverse effect on the condition, financial or otherwise,
or the earnings, business affairs or business prospects of the Company and its subsidiaries,
taken as a whole.
(ii) Subsidiaries. Each subsidiary of the Company has been duly organized and
is validly existing as a corporation, limited liability company, limited partnership,
general partnership or real estate investment trust, as the case may be, in good standing
under the laws of the jurisdiction of its incorporation or organization, with power and
authority to own, lease and operate its properties and conduct its business as described in
the General Disclosure Package and the Prospectus and is duly qualified to transact business
in all jurisdictions in which the conduct of its business requires such qualification except
where the failure to so be in good standing would not have a material adverse effect on the
condition, financial or otherwise, or the earnings, business affairs or business prospects
of the Company and its subsidiaries considered as one enterprise; each Operating Entity is
duly qualified to transact business in all jurisdictions in which the conduct of its
business requires such qualification, or in which the failure to qualify would have a
materially adverse effect upon the business of such Operating Entity; all of the issued and
outstanding shares of capital stock of each such corporate subsidiary and all of the issued
and outstanding shares of beneficial interest of each such real estate
investment trust subsidiary have been duly authorized and validly issued, are fully
paid and non-assessable and are owned by the Company or a subsidiary of the Company, free
and clear of any perfected security interest, mortgage, pledge, lien, encumbrance, claim
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or
equity; all of the issued and outstanding partnership interests of each such partnership
subsidiary and all of the issued and outstanding limited liability company interests of each
such limited liability company subsidiary have been duly authorized and validly issued, are
fully paid and (except in the case of general partnership interests) non-assessable and,
except as otherwise disclosed in the Prospectus, are owned by the Company and/or one or more
subsidiaries of the Company, free and clear of any security interest, mortgage, pledge,
lien, encumbrance, claim or equity; and the Company and/or one or more subsidiaries of the
Company are the only members or general partners of the Company’s limited liability company
or limited partnership subsidiaries, as applicable, and own the entire membership or general
partnership interest in each such subsidiary free and clear of any perfected security
interest, mortgage, pledge, lien, encumbrance, claim or equity.
(iii) Registration Statement and Prospectus. (A) At the time of filing the
Registration Statement, (B) at the time of the most recent amendment thereto for the
purposes of complying with Section 10(a)(3) of the 1933 Act (whether such amendment was by
post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d) of the
1934 Act or form of prospectus), (C) at the time the Company or any person acting on its
behalf (within the meaning, for this clause only, of Rule 163(c) of the 1933 Act Regulations
(“Rule 163(c)”)) made any offer relating to the Notes in reliance on the exemption of Rule
163 of the 1933 Act Regulations and (D) at the date hereof, the Company was and is a
“well-known seasoned issuer” as defined in Rule 405 of the 1933 Act Regulations (“Rule
405”), including not having been and not being an “ineligible issuer” as defined in Rule
405. The Registration Statement is an “automatic shelf registration statement,” as defined
in Rule 405, and the Notes, since their registration on the Registration Statement, have
been and remain eligible for registration by the Company on a Rule 405 “automatic shelf
registration statement.” The Company has not received from the Commission any notice
pursuant to Rule 401(g)(2) of the 1933 Act Regulations objecting to the use of the automatic
shelf registration statement form. At the time of filing the Registration Statement, at the
earliest time thereafter that the Company or any other offering participant made a bona fide
offer (within the meaning of Rule 164(h)(2) of the 1933 Act Regulations) of the Notes and at
the date hereof, the Company neither was nor is an “ineligible issuer,” as defined in Rule
405, including (x) the Company or any of its subsidiaries in the preceding three years not
having been convicted of a felony or misdemeanor or having been made the subject of a
judicial or administrative decree or order as described in Rule 405 and (y) the Company in
the preceding three years not having been the subject of a bankruptcy petition or insolvency
or similar proceeding, not having had a registration statement be the subject of a
proceeding under Section 8 of the 1933 Act and not being the subject of a proceeding under
Section 8A of the 1933 Act in connection with the offering of the Notes, all as described in
Rule 405.
The Registration Statement became effective upon filing under Rule 462(e) of the 1933
Act Regulations (“Rule 462(e)”) on January 25, 2006, and any post-effective amendment
thereto also became effective upon filing under Rule 462(e). No stop order suspending the
effectiveness of the Registration Statement, or notice objecting to its use, has been issued
under the 1933 Act and no proceedings for that purpose have been
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instituted or are pending
or, to the knowledge of the Company, are contemplated by the Commission, and any request on
the part of the Commission for additional information has been complied with; the Indenture
has been duly qualified under the Trust Indenture Act of 1939 as amended (the “1939 Act”);
at the respective times that the Registration Statement and any post-effective amendment
thereto (including the filing of the Company’s most recent Annual Report on Form 10-K with
the Commission (the “Annual Report on Form 10-K”)) became effective, at each deemed
effective date with respect to the Agents pursuant to Rule 430B(f)(2) of the 1933 Act
Regulations and at the date hereof, the Registration Statement and any amendments thereto
complied in all material respects with the requirements of the 1933 Act, the 1933 Act
Regulations, the 1939 Act and the rules and regulations of the Commission under the 1939 Act
(the “1939 Act Regulations”) and did not and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; each preliminary prospectus and the Statutory
Prospectus filed as part of the Registration Statement as originally filed or as part of any
amendment thereto, or filed pursuant to Rule 424 under the 1933 Act Regulations, complied
when so filed in all material respects with the 1933 Act Regulations; each preliminary
prospectus and the Statutory Prospectus delivered to the applicable Agent(s) for use in
connection with the offering of Notes are identical to any electronically transmitted copies
thereof filed with the Commission pursuant to XXXXX, except to the extent permitted by
Regulation S-T; and at the date hereof, at the date of the Statutory Prospectus and at each
Representation Date, neither the Statutory Prospectus nor any amendment or supplement
thereto included or will include an untrue statement of a material fact or omitted or will
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.
Any offer that is a “written communication” as defined in Rule 405 relating to the
Notes made prior to the filing of the Registration Statement by the Company or any person
acting on its behalf (within the meaning, for this paragraph only, of Rule 163(c)) has been
filed with the Commission in accordance with the exemption provided by Rule 163 and
otherwise complied with the requirements of Rule 163, including without limitation the
legending requirement, to qualify such offer for the exemption from Section 5(c) of the 1933
Act provided by Rule 163.
As of the Applicable Time with respect to the offering of any applicable issue of
Notes, the Issuer Free Writing Prospectus(es) (as defined below) and the Statutory
Prospectus, relating to the offering of the Notes, all considered together (collectively,
the “General Disclosure Package”) will not include any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
As used in this subsection and elsewhere in this Agreement:
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined
in Rule 433 under the 1933 Act, relating to any issue of Notes in the form filed or required
to be filed with the Commission or, if not required to be filed, in the form
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retained in the
Company’s records pursuant to Rule 433(g) and identified in the applicable Terms Agreement.
Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times
through the completion of the public offer and sale of the Notes or until any earlier date
that the Company notified or notifies the Agents as described in Section 3(b), will not
include any information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement or the Prospectus, including any document
incorporated by reference therein and any preliminary or other prospectus deemed to be a
part thereof that has not been superseded or modified.
The representations and warranties in this subsection shall not apply to statements in
or omissions from the Registration Statement, the Prospectus or any Issuer Free Writing
Prospectus (x) contained in that part of the Registration Statement which shall constitute
the Statement of Eligibility on Form T-1 under the 1939 Act of the Trustee and (y) made in
reliance upon and in conformity with information furnished to the Company in writing by the
Agents expressly for use therein.
(iv) Incorporated Documents. The documents incorporated by reference in the
Registration Statement, the General Disclosure Package and the Prospectus, when they became
effective or were filed with the Commission, as the case may be, conformed in all material
respects to the requirements of the 1933 Act or the 1934 Act, as applicable, and the rules
and regulations of the Commission thereunder, and do not and will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading.
(v) Accountants. The accountants who certified the financial statements
included or incorporated by reference in the Registration Statement are independent public
accountants within the meaning of the 1933 Act and the 1933 Act Regulations.
(vi) Financial Statements. The financial statements together with related
notes and schedules of the Company and its subsidiaries and of any companies, other entities
or properties acquired or to be acquired by the Company, in each case included or
incorporated by reference in the Registration Statement, the General Disclosure Package and
the Prospectus, present fairly, or (in the case of any amendment or supplement to any such
document, or any material incorporated by reference in any such document, filed with the
Commission after the date as of which this representation is being made) will present
fairly, at all times during the effectiveness of this Agreement, the financial condition and
the results of operations of the Company and its subsidiaries and of such companies,
entities and properties, as the case may be, at the indicated dates and for the indicated
periods. Such financial statements have been prepared in accordance with United States
generally accepted principles of accounting, consistently applied
throughout the periods involved, and all adjustments necessary for a fair presentation
of results for such periods have been made (except to the extent that, in accordance with
the 1934 Act and the rules and regulations of the Commission thereunder, certain footnotes
have been omitted from the financial statements included in the Company’s Quarterly Reports
on Form 10-Q incorporated by reference in the Registration Statement, the
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General Disclosure
Package and the Prospectus). The summary financial and statistical data included or
incorporated by reference in the Registration Statement, the General Disclosure Package and
Prospectus present fairly the information shown therein and have been compiled on a basis
consistent with the financial statements presented therein; the pro forma financial
statements and related notes thereto included or incorporated by reference in the
Registration Statement, the General Disclosure Package and Prospectus present fairly the
information shown therein, have been prepared in accordance with the Commission’s rules and
guidelines with respect to pro forma financial statements and have been properly compiled on
the bases described therein, and the assumption used in the preparation thereof are
reasonable and the adjustments used therein are appropriate to give effect to the
transactions and circumstances referred to therein. All disclosures contained in the
Registration Statement, the General Disclosure Package or the Prospectus regarding “non-GAAP
financial measures” (as such term is defined by the 1933 Act Regulations of the Commission)
comply with Regulation G under the 1934 Act and Item 10 of Regulation S-K of the 1933 Act
Regulations, to the extent applicable.
(vii) Validity of this Agreement. This Agreement has been duly authorized,
executed and delivered by the Company.
(viii) Authorization and Validity of the Indenture. The Indenture has been
duly authorized and duly qualified under the 1939 Act, and, at each Representation Date,
will constitute a valid and legally binding instrument, enforceable in accordance with its
terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, and other laws
of general applicability relating to or affecting creditors’ rights generally and to general
equity principles, and except further as enforcement thereof may be limited by (1)
requirements that a claim with respect to any Notes payable other than in U.S. dollars (or a
foreign currency or composite currency judgment in respect of such claim) be converted into
U.S. dollars at a rate of exchange prevailing on a date determined pursuant to applicable
law or (2) governmental authority to limit, delay or prohibit the making of payments outside
the United States.
(ix) Authorization and Validity of the Notes. The Notes have been duly and
validly authorized for issuance, offer and sale pursuant to this Agreement and, when issued,
authenticated and delivered pursuant to the provisions of this Agreement and the Indenture
against payment of the consideration therefor, the Notes will constitute valid and legally
binding obligations of the Company enforceable in accordance with their terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting enforcement of creditors’ rights generally or by general
equity principles, and except further as enforcement thereof may be limited by (1)
requirements that a claim with respect to any Notes payable other than in U.S. dollars (or a
foreign currency or composite currency
judgment in respect of such claim) be converted into U.S. dollars at a rate of exchange
prevailing on a date determined pursuant to applicable law or (2) governmental authority to
limit, delay or prohibit the making of payments outside the United States; the Notes and the
Indenture will be substantially in the form heretofore delivered to the Agents and will
conform in all material respects to all statements relating thereto contained in the
Prospectus; and each holder of Notes will be entitled to the benefits of the Indenture.
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(x) No Conflicts. The issue and sale of the Notes and the compliance by the
Company with all of the provisions of the Notes, the Indenture, this Agreement, and the
consummation of the transactions herein and therein contemplated will not conflict with or
result in a breach or violation of any of the terms or provisions of, or constitute a
default under, 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 (except in any case in which such would not
have a material adverse effect on the condition (financial or otherwise), prospects,
earnings, business or properties of the Company and its subsidiaries taken as a whole), nor
will such action result in any violation of the provisions of the Amended and Restated
Articles of Restatement or bylaws of the Company, or any law, statute or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over the Company
or any of its subsidiaries or any of their respective properties; and no consent, approval,
authorization, order, registration or qualification of or with any such court or
governmental agency or body is required for the issue and sale of the Notes or the
consummation by the Company of the transactions contemplated by this Agreement or the
Indenture, except such as have been, or will have been prior to each Representation Date,
obtained under the 1933 Act and the 1939 Act and such consents, approvals, authorizations,
registrations or qualifications as may be required under state securities or Blue Sky laws
in connection with the purchase and distribution of the Notes by the Agents.
(xi) Material Changes or Material Transactions. Neither the Company nor any of
its subsidiaries has sustained since the date of the latest audited financial statements
included or incorporated by reference in the Registration Statement, the General Disclosure
Package or the Prospectus any material loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than as set forth or
contemplated therein; and, since the respective dates as of which information is given in
the Registration Statement, the General Disclosure Package and Prospectus, (i) there has not
been any material change in the capital stock, total assets or long-term debt of the Company
or any of its subsidiaries or any material adverse change, or any development involving a
prospective material adverse change, in or affecting the general affairs, management,
financial position, shareholders’ equity or results of operations of the Company and its
subsidiaries, otherwise than as set forth or contemplated therein and (ii) neither the
Company nor any of its subsidiaries has entered into any transaction not in the ordinary
course of business which is material to the Company and its subsidiaries considered as a
whole.
(xii) No Defaults. Neither the Company nor any of its subsidiaries is in
violation of its Amended and Restated Articles of Restatement or bylaws, limited partnership
agreement, limited liability company agreement, operating agreement or other organizational
documents or in default in the performance or observance of any material obligation,
agreement, covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which it is a party or by which it or
any of them may be bound.
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(xiii) Legal Proceedings. Other than as set forth in the Registration
Statement, the General Disclosure Package and the Prospectus, there are no legal or
governmental proceedings pending to which the Company or any of its subsidiaries is a party
or of which any property of the Company or any of its subsidiaries is the subject which, if
determined adversely to the Company or any of its subsidiaries, would individually or in the
aggregate have a material adverse effect on the current or future consolidated financial
position, shareholders’ equity or results of operations of the Company and its subsidiaries;
and, to the best of the Company’s knowledge, no such proceedings are threatened or
contemplated by governmental authorities or threatened by others.
(xiv) Licenses; Trademarks. The Company and each of its subsidiaries hold all
material licenses, certificates and permits from governmental authorities which are
necessary to the conduct of their respective businesses; and to their knowledge, neither the
Company nor any of its subsidiaries has infringed any patents, patent rights, trade names,
trademarks or copyrights, which infringement is material to the business of the Company or
any of its subsidiaries.
(xv) Marketable Title; Leasehold Estates. Except as described in the
Registration Statement, the General Disclosure Package and Prospectus, the Company and its
subsidiaries have good and marketable title to, or valid and enforceable leasehold estates
in, all items of real and personal property referred to therein as owned or leased by them,
in each case free and clear of all liens, encumbrances, claims, security interests and
defects, other than those referred to therein or which would not materially affect the value
thereof or materially interfere with the use made or to be made by them.
(xvi) Hazardous Material. The Company has no knowledge of (1) the unlawful
presence of any hazardous substances, hazardous materials, toxic substances or waste
materials (collectively, “Hazardous Materials”) on any of the properties owned by it or any
of its subsidiaries, or of (2) any unlawful spills, releases, discharges or disposal of
Hazardous Materials that have occurred or are presently occurring off such properties as a
result of any construction on or operation and use of such properties which presence or
occurrence would materially adversely affect the condition, financial or otherwise, or the
earnings, business affairs or business prospects of the Company and its subsidiaries, taken
as a whole. In connection with the construction on or operation and use of the properties
owned by the Company or any of its subsidiaries, the Company represents that it has no
knowledge of any material failure to comply with all applicable local, state and federal
environmental laws, regulations, ordinances and administrative and judicial
orders relating to the generation, recycling, reuse, sale, storage, handling, transport
and disposal of any Hazardous Materials.
(xvii) Tax Filings. The Company has filed all U.S. Federal, local and foreign
income tax returns which have been required to be filed or has filed extensions and has paid
all taxes indicated by said returns and all assessments received by it to the extent that
such taxes have become due and are not being contested in good faith, except in each case to
the extent that the failure to so file or so pay would not materially adversely affect the
condition, financial or otherwise, or the earnings, business affairs or business prospects
of the Company or any of its subsidiaries.
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(xviii) Statements in Statutory Prospectus. The statements set forth in the
Statutory Prospectus as amended or supplemented under the captions “Description of Debt
Securities” and “Description of Notes”, insofar as they purport to constitute a summary of
the terms of the Notes, and under the captions “U.S. Federal Income Tax Considerations” and
“Plan of Distribution”, insofar as they purport to describe the provisions of the laws and
documents referred to therein, are accurate, complete and fair in all material respects.
(xix) Disclosure Controls and Procedures. The Company has established and
maintains “disclosure controls and procedures” (as such term is defined in Rule 13a-15 and
15d-15 under the 0000 Xxx) that (A) are designed to ensure that material information
relating to the Company and its consolidated subsidiaries, is made known to the Company’s
Chief Executive Officer and its Chief Financial Officer by others within those entities,
particularly during the periods in which the filings made by the Company with the Commission
which it may make under Section 13(a), 13(c) or 15(d) of the 1934 Act are being prepared,
(B) have been evaluated for effectiveness as of the end of the Company’s most recent fiscal
year and (C) to their knowledge are effective to perform the functions for which they were
established.
(xx) Accounting Controls and Procedures. The Company has established and
maintains “internal control over financial reporting” (as such term is defined in Rule
13a-15 and 15d-15 under the 0000 Xxx) that (A) 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 and (B) have been
evaluated by the management of the Company (including the Company’s Chief Executive Officer
and Chief Financial Officer) for effectiveness as of the end of the Company’s most recent
fiscal year. In addition, not later than the date of the filing with the Commission of the
Company’s (or if filed, Guarantor’s) most recent Annual Report on Form 10-K, each of the
accountants and the audit committee of the board of directors of the Company had been
advised of (x) all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably likely to
adversely affect the Company’s ability to record, process, summarize and report financial
information and (y) any fraud, whether or not material, that involves management or other
employees who have a significant role in the Company’s internal control over financial
reporting.
(xxi) Compliance with the Xxxxxxxx-Xxxxx Act. There is and has been no failure
on the part of the Company or any of the Company’s directors or officers, in their
capacities as such, to comply in all material respects 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.
(xxii) No Advisory or Fiduciary Relationship. The Company acknowledges and
agrees that (A) any purchase and sale of Notes pursuant to this Agreement, including the
determination of the public offering price of the Notes and any related discounts and
commissions, is an arm’s-length commercial transaction between the Company, on the
11
one hand,
and the Agent(s), on the other hand, (B) in connection with any offering contemplated hereby
and the process leading to each such transaction each Agent is and has been acting solely as
a principal and is not the agent or fiduciary of the Company or its stockholders, creditors,
employees or any other party, (C) no Agent has assumed or will assume an advisory or
fiduciary responsibility in favor of the Company with respect to the offering contemplated
hereby or the process leading thereto (irrespective of whether such Agent has advised or is
currently advising the Company on other matters) and no Agent has any obligation to the
Company with respect to the offering contemplated hereby except the obligations expressly
set forth in this Agreement, (D) the Agent(s) and their respective affiliates may be engaged
in a broad range of transactions that involve interests that differ from those of the
Company, and (E) the Agent(s) have not provided any legal, accounting, regulatory or tax
advice with respect to the offering contemplated hereby and the Company has consulted its
own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.
(xxiii) REIT Qualification. With respect to all tax periods regarding which
the Internal Revenue Service is or will be entitled to assert any claim, the Company has met
the requirements for qualification as a real estate investment trust under Sections 856
through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and the Company’s
present and contemplated operations, assets and income continue to meet such requirements.
(xxiv) Investment Company Act. The Company is not and, after giving effect to
the offering and sale of the Notes as contemplated herein, will not be an “investment
company” or an entity “controlled” by an “investment company as such terms are defined in
the Investment Company Act of 1940, as amended (the “1940 Act”).
(xxv) Commodity Exchange Act. The Notes, when issued, authenticated and
delivered pursuant to the provisions of this Agreement and the Indenture, will be excluded
or exempted under the provisions of the Commodity Exchange Act.
(xxvi) Ratings. The Notes are rated “Baa2” by Xxxxx’x Investors Service, Inc.
and “BBB” by Standard & Poor’s Rating Services.
(xxvii) Significant Subsidiaries. The Operating Entities are the only
“Significant Subsidiaries” of the Company (as defined in Regulation S-X of the 1933 Act
Regulations).
(b) Additional Certifications. Any certificate signed by any director or officer of
the Company and delivered to one or more Agents or to counsel for the Agents in connection with an
offering of Notes to one or more Agents as principal or through an Agent as agent shall be deemed a
representation and warranty by the Company to such Agent or Agents as to the matters covered
thereby on the date of such certificate and at each Representation Date subsequent thereto.
SECTION 3. Purchases as Principal; Solicitations as Agent.
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(a) Purchases as Principal. Subject to the terms and conditions stated herein, the
Company agrees that, whenever the Company determines to sell Notes directly to any Agent as
principal for resale to others, it will enter into a separate agreement relating to such sale in
accordance with the provisions of this Section 3(a).
Each sale of Notes to an Agent shall be made in accordance with the terms of this Agreement
and the Procedures (as defined in Section 3(c) below) and a supplemental agreement which will
provide for the sale of such Notes to, and the purchase and reoffering thereof by, an Agent. Each
such supplemental agreement (which may be an oral agreement and confirmed in writing between an
Agent and the Company) is herein referred to as a “Terms Agreement”. Each such Terms Agreement,
whether oral (and confirmed in writing, which may be by facsimile transmission) or in writing,
shall be with respect to such information (as applicable) as is specified in Exhibit A hereto. An
Agent’s commitment to purchase Notes shall be deemed to have been made on the basis of the
representations and warranties of the Company herein contained and shall be subject to the terms
and conditions herein set forth.
Delivery of the certificates for Notes sold to a Purchaser pursuant to any Terms Agreement
shall be made as agreed to between the Company and the Purchaser as set forth in the respective
Terms Agreement, not later than the Purchase Date set forth in such Terms Agreement, against
payment of funds to the Company in the net amount due to the Company for such Notes by the method
and in the form set forth in the respective Terms Agreement.
Unless the context otherwise requires, references herein to “this Agreement” shall include the
applicable agreement of one or more Agents to purchase Notes from the Company as principal. Each
purchase of Notes, unless otherwise agreed, shall be at a discount from the principal amount of
each such Note equivalent to the applicable commission set forth in Schedule A hereto. The Agents
may engage the services of any other broker or dealer in connection with the resale of the Notes
purchased by them as principal and may allow all or any portion of the discount received in
connection with such purchases from the Company to such brokers and dealers. At the time of each
purchase of Notes from the Company by one or more Agents as principal, such Agent or Agents shall
specify the requirements for the stand-off agreement, officers’ certificate, opinions of counsel
and comfort letter pursuant to Sections 4(j), 7(b), 7(c) and 7(d) respectively hereof.
(b) Solicitations as Agent. On the basis of the representations and warranties herein
contained, but subject to the terms and conditions herein set forth, when agreed by the Company and
an Agent, such Agent, as an agent of the Company, will use its reasonable efforts to solicit offers
to purchase the Notes upon the terms and conditions set forth in the Prospectus. The Agents are
not authorized to appoint sub-agents with respect to Notes sold through them as agent. All Notes
sold through an Agent as agent will be sold at 100% of their principal amount unless otherwise
agreed to by the Company and such Agent.
The Company reserves the right, in its sole discretion, to suspend solicitation of purchases
of the Notes through an Agent, as agent, commencing at any time for any period of time or
permanently. As soon as practicable after receipt of instructions from the Company, such Agent
will suspend solicitation of purchases from the Company until such time as the Company has advised
such Agent that such solicitation may be resumed.
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The Company agrees to pay each Agent a commission, in the form of a discount, equal to the
applicable percentage of the principal amount of each Note sold by the Company as a result of a
solicitation made by such Agent, as an agent of the Company, as set forth in Schedule A hereto,
unless otherwise agreed.
(c) Administrative Procedures. The purchase price, interest rate or formula, maturity
date and other terms of the Notes (as applicable) specified in Exhibit A hereto shall be agreed
upon by the Company and the applicable Agent or Agents and specified in a pricing supplement to the
Prospectus (each, a “Pricing Supplement”) to be prepared in connection with each sale of Notes.
Except as may be otherwise specified in the applicable Pricing Supplement, the Notes will be issued
in denominations of U.S. $1,000 or any larger amount that is an integral multiple of U.S. $1,000.
Administrative procedures with respect to the sale of Notes shall be agreed upon from time to time
by the Company, the Agents and the Trustee (the “Procedures”). The Agents and the Company agree to
perform, and the Company agrees to cause the Trustee to agree to perform, their respective duties
and obligations specifically provided to be performed by them in the Procedures.
SECTION 4. Covenants of the Company.
The Company covenants with the Agents as follows:
(a) The Company will file each Statutory Prospectus pursuant to and in accordance with Rule
424(b) within the time period prescribed therein. Prior to the termination of the offering of any
issue of Notes, the Company will not file any amendment to the Registration Statement or supplement
to the Prospectus or Statutory Prospectus (except for a supplement relating to an offering of
securities other than the Notes) unless the Company has furnished to the related Agent(s) a copy
for their review prior to filing and will not file any such proposed amendment or supplement to
which such Agent(s) may reasonably object. Subject to the foregoing sentence, the Company will
cause each supplement to the Prospectus or Statutory Prospectus to be filed (or mailed for filing)
with the Commission as required pursuant to Rule 424 of the 1933 Act Regulations (without reliance
on Rule 424(b)(8)). The Company will promptly advise such Agent(s) (i) when each supplement to the
Prospectus or Statutory Prospectus shall have been filed (or mailed for filing) with the Commission
pursuant to Rule 424 of the 1933 Act Regulations (the filing of any such supplement on XXXXX shall
be deemed notice by the Company to the Agents), (ii) when any amendment to the Registration
Statement shall have become effective (for so long as the Registration Statement is an “automatic
shelf registration statement” within the meaning of Rule 405, the filing of any such amendment on
XXXXX shall be deemed notice of effectiveness by the Company to the Agents), (iii) of any request
by the Commission for any amendment to the Registration Statement or amendment to or supplement to
the Prospectus or Statutory Prospectus or for any additional information, (iv) of the issuance by
the Commission of any stop order suspending the effectiveness of the Registration Statement or the
institution or threatening of any proceeding for that purpose or of any examination pursuant to
Section 8(e) of the 1933 Act with respect to the Registration Statement, (v) if the Company becomes
the subject of a proceeding under Section 8A of the 1933 Act in connection with the offering of the
Notes, (vi) of the receipt by the Company of any notification with respect to the suspension of the
qualification of the Notes for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose and (vii) any
14
change in the rating assigned by any nationally recognized statistical rating organization to
any debt securities of the Company or the public announcement by any nationally recognized
statistical rating organization that it has under surveillance or review, with possible negative
implications, its rating of any debt securities of the Company. The Company will use its best
efforts to prevent the issuance of any such stop order and, if issued, to obtain as soon as
possible the withdrawal thereof. The Company shall pay the required Commission filing fees
relating to the Notes within the time required by Rule 456(b)(1)(i) of the 1933 Act Regulations
without regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r) of
the 1933 Act Regulations (including, if applicable, by updating the “Calculation of Registration
Fee” table in accordance with Rule 456(b)(1)(ii) of the 1933 Act Regulations either in a
post-effective amendment to the Registration Statement or on the cover page of a prospectus filed
pursuant to Rule 424(b)).
(b) The Registration Statement is an “automatic shelf registration statement,” as defined in
Rule 405, that initially became effective within three years of the date hereof. If immediately
prior to the third anniversary (the “Renewal Deadline”) of the initial effective date of the
automatic shelf registration statement relating to the Notes, any of the Notes remain unsold by the
Agent(s), the Company will, prior to the Renewal Deadline, file, if it has not already done so and
is eligible to do so, a new automatic shelf registration statement relating to the Notes, in a form
satisfactory to the Agents. If the Company is no longer eligible to file an automatic shelf
registration statement, the Company will, prior to the Renewal Deadline, if it has not already done
so, file a new shelf registration statement relating to the Notes, in a form satisfactory to the
Agents, and will use its best efforts to cause such registration statement to be declared effective
within 180 days after the Renewal Deadline. The Company will take all other action necessary or
appropriate to permit the public offering and sale of the Notes to continue as contemplated in the
expired registration statement relating to the Notes. References herein to the Registration
Statement shall include such new automatic shelf registration statement or such new shelf
registration statement, as the case may be.
(c) If, at any time when a prospectus relating to the Notes is required to be (or, but for the
exemption in Rule 172 of the 1933 Act Regulations, would be required to be) delivered under the
1933 Act, any event occurs as a result of which the Registration Statement, General Disclosure
Package or the Prospectus, as then supplemented, would include any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein not misleading,
any facts or events arise which, individually or in the aggregate, would represent a fundamental
change in the information set forth in the Registration Statement, the General Disclosure Package
or the Prospectus, or if it shall be necessary to amend the Registration Statement, file a new
registration statement or to supplement the Prospectus to comply with the 1933 Act or the 1934 Act
or the respective rules and regulations thereunder, the Company promptly will (i) notify such Agent
to suspend the solicitation of offers to purchase Notes (and, if so notified, such Agent shall
forthwith suspend such solicitation and cease using the Prospectus as then amended or
supplemented), (ii) prepare and file with the Commission, subject to the first sentence of
paragraph (a) of this Section 4, an amendment or supplement or new registration statement which
will correct such statement or omission or an amendment or supplement which will effect such
compliance and (iii) will supply any such amended or supplemented Prospectus or new registration
statement to such Agent in such quantities as such Agent may reasonably request. If such amendment
or supplement, and any documents, certificates and opinions
15
furnished to such Agent pursuant to paragraph (i) of this Section 4 in connection with the
preparation or filing of such amendment or supplement are reasonably satisfactory in all respects
to such Agent, such Agent will, upon the filing of such amendment or supplement with the Commission
and upon the effectiveness of an amendment to the Registration Statement (or new registration
statement) if such an amendment is required, resume such Agent’s obligation to solicit offers to
purchase Notes hereunder. If at any time following issuance of an Issuer Free Writing Prospectus
there occurred or occurs an event or development as a result of which such Issuer Free Writing
Prospectus conflicted or would conflict with the information then contained in the Registration
Statement or Prospectus or included or would include an untrue statement of a material fact or
omitted or would omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances prevailing at that subsequent time, not misleading, (i) the
Company will promptly notify the applicable Agent(s) and (ii) the Company will promptly amend or
supplement such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue
statement or omission.
(d) With respect to any issue of Notes, the Company represents and agrees that, unless it
obtains the prior written consent of the related Agent(s), it will not make any offer relating to
the Notes that would constitute an Issuer Free Writing Prospectus, or that would otherwise
constitute a “free writing prospectus,” as defined in Rule 405, that is required to be filed with
the Commission or retained by the Company under Rule 433; provided that the prior written consent
of the Agent(s) hereto shall be deemed to have been given in respect to the Issuer Free Writing
Prospectus(es) listed in the applicable Terms Agreement. Any such free writing prospectus
consented to by such Agent(s) is hereinafter referred to as a “Permitted Free Writing Prospectus.”
The Company represents that it has treated and agrees that it will treat each Permitted Free
Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied
and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing
Prospectus, including timely Commission filing where required, legending and record keeping.
(e) The Company will prepare a final term sheet relating to the final terms of the Notes, in
the form attached to the form of Terms Agreement, and will file such final term sheet within the
period required by Rule 433(d)(5)(ii). Any such final term sheet is an Issuer Free Writing
Prospectus and a Permitted Free Writing Prospectus for purposes of this Agreement. In addition to
the foregoing, the Agent may, without consent of the Company, use a free writing prospectus that
contains only (a) (i) information describing the preliminary terms of the Notes or their offering,
(ii) information that describes the final terms of the Notes or their offering and that is included
in the final term sheet of the Company contemplated in the first sentence of this subsection or
(iii) information permitted by Rule 134 under the 1933 Act or (b) other information that is not
“issuer information,” as defined in Rule 433.
(f) The Company will deliver to the Agents as many signed and conformed copies of the
Registration Statement (as originally filed) and of each amendment thereto (including exhibits
filed therewith or incorporated by reference therein and documents incorporated by reference in the
Prospectus) as the Agents reasonably request. The Company will furnish to the Agents as many
copies of the Prospectus and any Issuer Free Writing Prospectus (in each case, as amended or
supplemented) as the Agents reasonably request so long as the Agents are
16
required to deliver a Prospectus in connection with sales or solicitations of offers to
purchase the Notes.
(g) As soon as practicable, but in any event not later than 16 months after any Settlement
Date, the Company will make generally available to its security holders and to the Agents an
earnings statement covering a period of at least 12 months beginning after the effective date of
the Registration Statement and otherwise satisfying the provisions of and provide the benefits
contemplated by Section 11(a) of the 1933 Act and Rule 158 under the 1933 Act.
(h) The Company will endeavor, in cooperation with the Agents, to qualify the Notes for
offering and sale under the applicable securities laws of such states and other jurisdictions of
the United States as the Agents may designate, and will maintain such qualifications in effect for
as long as may be required for the distribution of the Notes; provided, however,
that the Company 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. The Company
will file such statements and reports as may be required by the laws of each jurisdiction in which
the Notes have been qualified as above provided. The Company will promptly advise the Agents of
the receipt by the Company of any notification with respect to the suspension of the qualification
of the Notes for sale in any such state or jurisdiction or the initiating or threatening of any
proceeding for such purpose.
(i) The Company, during the period when the Prospectus is required to be delivered under the
1933 Act or the 1934 Act in connection with sales of the Notes (or but for the exemption afforded
by Rule 172 of the 1933 Act would be required to be delivered), will file all documents required to
be filed with the Commission pursuant to Sections 13, 14 or 15(d) of the 1934 Act within the time
periods prescribed by the 1934 Act and the rules and regulations of the Commission thereunder (the
“1934 Act Regulations”).
(j) If specified by the applicable Agent or Agents in connection with a purchase of Notes from
the Company as principal, between the date of the agreement to purchase such Notes and the
Settlement Date with respect to such purchase, the Company will not, without the prior written
consent of such Agent or Agents, offer or sell, grant any option for the sale of, or enter into any
agreement to sell, any debt securities of the Company (other than the Notes that are to be sold
pursuant to such agreement, commercial paper in the ordinary course of business or assumptions of
mortgages on acquired properties).
(k) The Company will continue to elect to qualify as a “real estate investment trust” under
the Code and will use its best efforts to continue to qualify as a “real estate investment trust”
for so long as the Company’s board of directors deems it in the best interest of the Company and
its shareholders to remain so qualified.
SECTION 5. Conditions of Obligations.
The obligations of the Agents to purchase Notes from the Company as principal and to solicit
offers to purchase Notes as agent of the Company, and the obligations of any purchasers of Notes
sold through an Agent as agent of the Company, will be subject to the accuracy of the
17
representations and warranties on the part of the Company herein and to the accuracy of the
statements of the Company’s directors or officers made in any certificate furnished pursuant to the
provisions hereof, to the performance and observance by the Company of all its covenants and
agreements herein contained and to the following additional conditions precedent:
(a) Legal Opinions. On the date hereof, the Agents shall have received the following
legal opinions, dated as of the date hereof and in form and substance satisfactory to the Agents:
(i) Opinion of Company Counsel. The favorable opinion of Xxxxxxxx & Xxxxxxxx
LLP, counsel to the Company, substantially to the effect that:
(1) Each of the Company and the Operating Entities has been duly incorporated
or formed, as applicable, and is validly existing as a corporation or limited
partnership, as the case may be, in good standing under the laws of the jurisdiction
in which is incorporated or formed, as applicable, with full corporate or
partnership, as applicable, power and authority to own or lease, as the case may be,
and to its properties and conduct its business as described in the Statutory
Prospectus as amended or supplemented.
(2) The Company is duly qualified to transact business as a foreign corporation
in the States of Arizona, Colorado, Delaware, Florida, Georgia, North Carolina,
Ohio, Oregon, South Carolina, Tennessee and Virginia. United Dominion Realty, L.P.
is duly qualified and authorized to transact business as a foreign limited
partnership in the States of Arizona, California, Florida, Georgia, Maryland, Ohio,
Oregon, Tennessee, Virginia and Washington. Heritage Communities L.P. is duly
qualified and authorized to transact business as a foreign limited partnership in
the States of Arizona, California, Texas and Washington.
(3) This Agreement has been duly authorized, executed and delivered by the
Company.
(4) The Notes, in the form(s) certified by the Company as of the date hereof,
have been duly authorized for issuance, offer and sale pursuant to this Agreement
and, when executed and delivered by the Company and duly authenticated by the
Trustee in accordance with the Indenture, and issued and delivered pursuant to the
provisions of this Agreement and the Indenture against payment of consideration
therefor, will constitute legal, valid and binding obligations of the Company
entitled to the benefits provided by the Indenture, enforceable in accordance with
their terms, except as enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting enforcement of
creditors’ rights generally or by general equity principles, and except further as
enforcement thereof may be limited by (1) requirements that a claim with respect to
any Notes payable other than in U.S. dollars (or a foreign currency or composite
currency judgment in respect of such claim) be converted into U.S. dollars at a rate
of exchange prevailing on a date
18
determined pursuant to applicable law or (2) governmental authority to limit,
delay or prohibit the making of payments outside the United States.
(5) The Indenture has been duly authorized, executed and delivered by the
Company, is duly qualified under the 1939 Act, and constitutes a legal, valid and
binding instrument of the Company, enforceable in accordance with its terms, except
as enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting enforcement of creditors’ rights
generally or by general equity principles, and further as enforcement thereof may be
limited by (1) requirements that a claim with respect to any Notes payable other
than in U.S. dollars (or a foreign currency or composite currency judgment in
respect of such claim) be converted into U.S. dollars at a rate of exchange
prevailing on a date determined pursuant to applicable law or (2) governmental
authority to limit, delay or prohibit the making of payments outside the United
States.
(6) None of the issue and sale of the Notes, the compliance by the Company with
all of the provisions of the Notes, the Indenture and the Distribution Agreement,
nor the consummation of any other of the transactions herein or therein contemplated
will (i) result in a violation of the Articles of Restatement or bylaws of the
Company, (ii) to such counsel’s knowledge, constitute a material breach of the terms
of any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Company is a party or by which it is bound or to which its
property or assets of the Company is subject and which has been filed as an exhibit
to any of the Company’s filings made pursuant to the 1934 Act and incorporated by
reference into the Registration Statement and the Statutory Prospectus, or (iii) to
such counsel’s knowledge, violate any statute, law, order, rule or regulation of any
court, regulatory body, administrative agency, governmental body, arbitrator or
other authority of the State of Maryland or the United States of America having
jurisdiction over the Company or any of its properties.
(7) The Registration Statement has become effective under the 1933 Act; any
required filing of the Statutory Prospectus, and any supplements thereto, pursuant
to Rule 424(b) has been made in the manner and within the time period required by
Rule 424(b); to the knowledge of such counsel, no stop order suspending the
effectiveness of the Registration Statement, or notice objecting to its use, has
been issued and no proceedings for that purpose have been instituted or threatened
by the Commission, and the Registration Statement and the Statutory Prospectus
(other than the following, as to which counsel need express no opinion: (i) the
financial statements, the related notes and schedules thereto and other financial
and statistical information included or incorporated by reference therein, and (ii)
the Statement of Eligibility on Form T-1 filed as an exhibit thereto), as of their
respective effective or issue dates, as the case may be, complied as to form in all
material respects with the applicable requirements of the 1933 Act and the 1933 Act
Regulations and the 1939 Act and the 1939 Act Regulations of the Commission
thereunder.
19
(8) No authorization, approval or consent of any governmental authority or
agency is required in connection with the transactions contemplated in this
Agreement, except such as have been obtained under the 1933 Act or the 1933 Act
Regulations and the 1939 Act and such as may be required under state securities or
Blue Sky laws of any jurisdiction in connection with the purchase and distribution
of the Notes by the Agents in the manner contemplated in this Agreement and in the
Statutory Prospectus and such other approvals as have been obtained.
(9) Each document filed pursuant to the 1934 Act (other than the financial
statements, supporting schedules, footnotes and other statistical and financial
information contained therein, as to which no opinion need be rendered) and
incorporated or deemed to be incorporated by reference in the Statutory Prospectus
complied when so filed as to form in all material respects with the 1934 Act and the
1934 Act Regulations.
(10) The statements set forth in the Statutory Prospectus under the captions
“Description of Debt Securities”, “Description of Notes” and “U.S. Federal Income
Tax Considerations”, insofar as they constitute a summary of documents referred to
therein or matters of law are correct in all material respects.
(11) To such counsel’s knowledge, there is no pending or threatened action,
suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any of the Operating Entities or its or
their property which, if determined adversely to the Company or any of the Operating
Entities, would individually or in the aggregate have a material adverse effect on
the current or future consolidated financial position, shareholders’ equity or
results of operations of the Company and its subsidiaries, taken as a whole.
(12) Neither the Company nor either of the Operating Entities is an “investment
company” as defined in the 1940 Act.
(ii) Opinion of Counsel to the Agents. The favorable opinion of Sidley Austin
llp, counsel to the Agents, in form and substance reasonably acceptable to the
Agents.
(iii) Opinion of Counsel to the Company. The favorable opinion of Xxxxxxxx &
Xxxxxxxx LLP, counsel for the Company, in form and substance satisfactory to counsel for the
Agents, to the effect that the Company has qualified to be taxed as a real estate investment
trust pursuant to Sections 856 through 860 of the Code for its most recently ended fiscal
year and for the three fiscal years immediately preceding such year, and the Company’s
organization and contemplated method of operation are such as to enable it to continue to so
qualify for its current fiscal year.
(iv) Disclosure Documents. In giving their opinions required by subsections
(a)(1) and (a)(2), respectively, of this Section, Xxxxxxxx & Xxxxxxxx LLP and Sidley
20
Austin llp shall each additionally state that no facts have come to such
counsel’s attention that causes such counsel to believe that (A) the Registration Statement,
at the later of the time of the filing of the Annual Report on Form 10-K or as of the “new
effective date” with respect to the Agents and the Notes pursuant to, and within the meaning
of, Rule 430B(f)(2) under the 1933 Act, contained any untrue statement of a material fact or
omitted to state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and (B) the Statutory Prospectus, as of the date hereof,
included or includes, as the case may be, any untrue statement of material fact or omitted
or omits, as the case may be, to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading. Such
counsel need not express a view or belief with respect to (i) the financial statements, the
related notes and schedules thereto or other financial and statistical data included or
incorporated by reference in the Registration Statement and the Statutory Prospectus or (ii)
any part of the Registration Statement which shall constitute a Statement of Eligibility on
Form T-1 under the 0000 Xxx.
(b) Officer’s Certificate. At the date hereof, the Agents shall have received a
certificate of the Chief Executive Officer, President or any Vice President and the principal
financial officer or principal accounting officer of the Company, dated as of the date hereof, to
the effect that (i) since the respective dates as of which information is given in the Registration
Statement and the Statutory Prospectus or since the date of any agreement by one or more Agents to
purchase Notes from the Company as principal, there has not been any material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or business prospects of
the Company and its subsidiaries considered as one enterprise, whether or not arising in the
ordinary course of business, (ii) the representations and warranties of the Company contained in
Section 2 hereof are true and correct with the same force and effect as though expressly made at
and as of the date of such certificate and (iii) the Company has performed or complied with all
agreements and satisfied all conditions on its part to be performed or satisfied at or prior to the
date of such certificate.
(c) [Reserved]
(d) Other Documents. On the date hereof and on each Settlement Date, counsel to the
Agents shall have been furnished with such documents and opinions as such counsel may reasonably
require for the purpose of enabling such counsel to pass upon the issuance and sale of Notes as
herein contemplated and related proceedings, or in order to evidence the accuracy and completeness
of any of the representations and warranties, or the fulfillment of any of the conditions, herein
contained; and all proceedings taken by the Company in connection with the issuance and sale of
Notes as herein contemplated shall be satisfactory in form and substance to the Agents and to
counsel to the Agents.
If any condition specified in this Section 5 shall not have been fulfilled when and as
required to be fulfilled, this Agreement may be terminated by the applicable Agent or Agents by
notice to the Company at any time and any such termination shall be without liability of any party
to any other party, except that the covenant regarding provision of an earnings statement set forth
in Section 4(f) hereof, the provisions concerning payment of expenses under Section 10 hereof, the
indemnity and contribution agreement set forth in Sections 8 and 9 hereof, the
21
provisions concerning the representations, warranties and agreements to survive delivery of
Section 11 hereof, the provisions relating to governing law and forum set forth in Section 14 and
the provisions relating to parties set forth in Section 15 hereof shall remain in effect.
SECTION 6. Delivery of and Payment for Notes Sold through an Agent.
Delivery of Notes sold through an Agent as agent shall be made by the Company to such Agent
for the account of any purchaser only against payment therefor in immediately available funds. In
the event that a purchaser shall fail either to accept delivery of or to make payment for a Note on
the date fixed for settlement, such Agent shall promptly notify the Company and deliver such Note
to the Company and, if such Agent has theretofore paid the Company for such Note, the Company will
promptly return such funds to such Agent. If such failure occurred for any reason other than
default by such Agent in the performance of its obligations hereunder, the Company will reimburse
such Agent on an equitable basis for its loss of the use of the funds for the period such funds
were credited to the Company’s account.
SECTION 7. Additional Covenants of the Company.
The Company covenants and agrees with the Agents that:
(a) Reaffirmation of Representations and Warranties. Each acceptance by the Company
of an offer for the purchase of Notes (whether to one or more Agents as principal or through an
Agent as agent), and each delivery of Notes (whether to one or more Agents as principal or through
an Agent as agent), shall be deemed to be an affirmation that the representations and warranties of
the Company contained in this Agreement and in any certificate theretofore delivered to the Agents
pursuant hereto are true and correct at the time of such acceptance or sale, as the case may be,
and an undertaking that such representations and warranties will be true and correct at the time of
delivery to such Agent or Agents or to the purchaser or its agent, as the case may be, of the Note
or Notes relating to such acceptance or sale, as the case may be, as though made at and as of each
such time (and it is understood that such representations and warranties shall relate to the
Registration Statement, the General Disclosure Package and the Prospectus as amended and
supplemented to each such time).
(b) Subsequent Delivery of Certificates. Each time that (i) the Registration
Statement or the Statutory Prospectus shall be amended or supplemented (other than by an amendment
or supplement providing solely for a change in the interest rate or formula applicable to the Notes
or relating solely to the issuance and/or offering of securities other than the Notes), (ii) there
is filed with the Commission any document incorporated by reference into the Registration
Statement, the General Disclosure Package or the Prospectus (other than any Current Report on Form
8-K relating solely to the issuance and/or offering of securities other than the Notes, unless the
Agents shall otherwise specify), (iii) (if required in connection with the purchase of Notes from
the Company by one or more Agents as principal) the Company sells Notes to such Agent or Agents as
principal or (iv) the Company sells Notes in a form not previously certified to the Agents by the
Company, the Company shall furnish or cause to be furnished to the Agent(s), forthwith a
certificate dated the date of filing with the Commission of such supplement or document, the date
of effectiveness of such amendment, or the date of such sale, as the case may be, in form
satisfactory to the Agent(s) to the effect that the statements contained in the
22
certificate referred to in Section 5(b) hereof which were last furnished to the Agents are
true and correct at the time of such amendment, supplement, filing or sale, as the case may be, as
though made at and as of such time (except that such statements shall be deemed to relate to the
Registration Statement, the General Disclosure Package and the Prospectus as amended and
supplemented to such time) or, in lieu of such certificate, a certificate of the same tenor as the
certificate referred to in Section 5(b) hereof, modified as necessary to relate to the Registration
Statement, the General Disclosure Package and the Prospectus as amended and supplemented to the
time of delivery of such certificate.
(c) Subsequent Delivery of Legal Opinions. Each time that (i) the Registration
Statement or the Statutory Prospectus shall be amended or supplemented (other than by an amendment
or supplement providing solely for a change in the interest rate or formula applicable to the
Notes, providing solely for the inclusion of additional financial information, or, unless the
Agents shall otherwise specify, relating solely to the issuance and/or offering of securities other
than the Notes), (ii) there is filed with the Commission any document incorporated by reference
into the Registration Statement, General Disclosure Package or the Prospectus (other than any
Current Report on Form 8-K relating solely to the issuance and/or offering of securities other than
the Notes, unless the Agents shall otherwise specify), (iii) (if required in connection with the
purchase of Notes from the Company by one or more Agents as principal) the Company sells Notes to
such Agent or Agents as principal or (iv) the Company sells Notes in a form not previously
certified to the Agents by the Company, the Company shall furnish or cause to be furnished
forthwith to the Agents and to counsel to the Agents the written opinion of Xxxxxxxx & Xxxxxxxx
LLP, counsel to the Company, or other counsel satisfactory to the Agents, dated the date of filing
with the Commission of such supplement or document, the date of effectiveness of such amendment, or
the date of such sale, as the case may be, in form and substance satisfactory to the Agents, of the
same tenor as the opinion referred to in Section 5(a)(1) hereof (and including the statement
required by Section 5(a)(4)), but modified to state that (x) the Registration Statement has become
effective under the 1933 Act; any required filing of the preliminary prospectus or the Statutory
Prospectus, and any supplements thereto, pursuant to Rule 424(b) has been made in the manner and
within the time period required by Rule 424(b); any required filing of any Issuer Free-Writing
Prospectus pursuant to Rule 433(b) has been made in the manner and within the time period required
by Rule 433(b); to the knowledge of such counsel, no stop order suspending the effectiveness of the
Registration Statement, or notice objecting to its use, has been issued, no proceedings for that
purpose have been instituted or threatened and the Registration Statement, the preliminary
prospectus, the Statutory Prospectus and any such Issuer Free Writing Prospectus (other than (i)
the financial statements and other financial and statistical information contained therein and (ii)
the Statement of Eligibility on Form T-1 filed as an exhibit thereto, as to which such counsel need
express no opinion), as of their respective effective or issue dates, as the case may be, complied
as to form in all material respects with the applicable requirements of the 1933 Act and the 1933
Act Regulations and the 1939 Act and the 1939 Act Regulations of the Commission thereunder and (y)
no facts have come to such counsel’s attention that have caused it to believe that (A) the
Registration Statement, at the later of the time of the filing of the Annual Report on Form 10-K or
as of the “new effective date” with respect to the Agents and the Notes pursuant to, and within the
meaning of, Rule 430B(f)(2) under the 1933 Act, contained any untrue statement of a material fact
or omitted to state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and (B) (1) the General Disclosure Package, as of the Applicable
Time specified in the applicable Terms Agreement and
23
(2) the Prospectus, as of its date and as of the Closing Date, included or includes, as the
case may be, any untrue statement of material fact or omitted or omits, as the case may be, to
state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.
(d) Delivery of Comfort Letters. Each time that the Agents purchase Notes from the
Company as principal or solicit offers to purchase Notes as agent of the Company, the Agents shall
receive (1) a letter from Ernst & Young LLP, dated as of the date of the applicable pricing
supplement, in form and substance satisfactory to the Agents, to the effect that: (i) they are
independent accountants with respect to the Company and its subsidiaries within the meaning of the
1933 Act and the applicable published rules and regulations thereunder; (ii) it is their opinion
that the consolidated financial statements and supporting schedules of the Company and its
subsidiaries included or incorporated by reference in the Registration Statement, the General
Disclosure Package and the Prospectus as amended and supplemented to the date of such letter, and
covered by their opinions therein comply in form in all material respects with the applicable
accounting requirements of the 1933 Act and the 1934 Act and the related published rules and
regulations thereunder; (iii) based upon limited procedures set forth in detail in such letter
(which shall include, without limitation, the procedures specified by the American Institute of
Certified Public Accountants for a review of interim financial information as described in SAS No.
100, Interim Financial Information, with respect to the unaudited condensed consolidated financial
statements of the Company and its subsidiaries included or incorporated by reference in the
Registration Statement), nothing came to their attention that caused them to believe that (1) any
material modifications should be made to the unaudited financial statements and financial statement
schedules of the Company and its subsidiaries included or incorporated by reference in the
Registration Statement, the General Disclosure Package and the Prospectus for them to be in
conformity with accounting principles generally accepted in the United States, (2) the unaudited
financial statements and financial statement schedules of the Company included or incorporated by
reference in the Registration Statement, the General Disclosure Package and the Prospectus do not
comply as to form in all material respects with the applicable accounting requirements of the 1934
Act and the related published rules and regulations thereunder, or (3) at a specified date not more
than three days prior to the date of such letter, there has been any change in the capital stock of
the Company or in the secured and unsecured debt of the Company or any decrease in the total assets
of the Company, as compared with the amounts shown in the most recent consolidated balance sheet
included or incorporated by reference in the Registration Statement, the General Disclosure Package
and the Prospectus or, during the period from the date of the most recent consolidated statement of
operations included or incorporated by reference in the Registration Statement, the General
Disclosure Package and the Prospectus to a specified date not more than three days prior to the
date of such letter, there were any decreases, as compared with the corresponding period in the
preceding year, in rental income or in the total or per share amounts of net income or income
before gains (losses) on investments, minority interests, discontinued operations and extraordinary
items of the Company, except in all instances for changes, increases or decreases which the
Registration Statement, the General Disclosure Package and the Prospectus disclose have occurred or
may occur or except for such exceptions enumerated in such letter as shall have been agreed to by
the Agents and the Company; (iv) they have compared the information in the Prospectus under
selected captions with the disclosure requirements of Regulation S K and on the basis of limited
procedures specified in such letter nothing came to their attention as a result of the foregoing
procedures that caused them to believe
24
that this information does not conform in all material respects with the disclosure
requirements of Items 301, 402 and 503(d) of Regulation S K; and (v) in addition to the audit
referred to in their opinions and the limited procedures referred to in clause (iii) and (iv)
above, they have carried out certain specified procedures, not constituting an audit, with respect
to certain amounts, percentages and financial information which are included or incorporated by
reference in the Registration Statement, the General Disclosure Package and the Prospectus and
which are specified by the Agents, and have found such amounts, percentages and financial
information to be in agreement with the relevant accounting, financial and other records of the
Company and its subsidiaries identified in such letter; and (2) a letter from Ernst & Young LLP,
dated as of the Settlement Date, in form and substance satisfactory to the Agents, to the effect
that they reaffirm the statements made in the letter furnished by them pursuant to Section 7(d)(1)
hereof, except that the specified date referred to therein for the carrying out of procedures shall
be no more than three business days prior to such Settlement Date.
SECTION 8. Indemnification.
(a) Indemnification of the Agents. The Company agrees to indemnify and hold harmless
each Agent and each person, if any, who controls such Agent within the meaning of Section 15 of the
1933 Act as follows:
(i) against any and all loss, liability, claim, damage and expense whatsoever as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, in the Statutory Prospectus, the Prospectus, any
preliminary prospectus, or in any amendment thereof or supplement thereto, any Issuer Free
Writing Prospectus or any “issuer information” filed or required to be filed pursuant to
Rule 433(d) under the 1933 Act or arising out of or based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading;
(ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission referred to in
subsection (i) above, or any such alleged untrue statement or omission, if such settlement
is effected with the written consent of the Company; and
(iii) against any and all expense whatsoever, as incurred (including, the fees and
disbursements of counsel chosen by the Agents), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceedings by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the
extent that any such expense is not paid under (i) or (ii) above;
provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information
25
furnished to the Company by any Agent expressly for use in any such document referred to (i) above.
This indemnity agreement will be in addition to any liability which the Company may otherwise
have.
(b) Indemnification of the Company. Each Agent severally and not jointly agrees to
indemnify and hold harmless the Company, its directors, each of its officers who signed the
Registration Statement and each person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act, against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section, but only with respect to
written information relating to such Agent furnished to the Company by or on behalf of such Agent
expressly for use in any document referred to in (a)(i) above. This indemnity agreement will be in
addition to any liability which such Agent may otherwise have.
(c) Actions Against Parties; Notification. Each indemnified party shall give notice
as promptly as reasonably practicable to each indemnifying party of any action commenced against it
in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is
not materially prejudiced as a result thereof and in any event shall not relieve it from any
liability which it may have otherwise than on account of this indemnity agreement. In the case of
parties indemnified pursuant to Section 8(a) hereof, counsel to the indemnified parties shall be
selected by the applicable Agent(s) and, in the case of parties indemnified pursuant to Section
8(b) hereof, counsel to the indemnified shall be selected by the Company. An indemnifying party
may participate at its own expense in the defense of any such action; provided,
however, that counsel to the indemnifying party shall not (except with the consent of the
indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying
parties be liable for fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances.
No indemnifying party shall, without the prior written consent of the indemnified parties,
settle or compromise or consent to the entry of any judgment with respect to any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever in respect of which indemnification or contribution could be sought under this
Section 8 or 9 hereof (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation, investigation, proceeding
or claim and (ii) does not include a statement as to or an admission of fault, culpability or a
failure to act by or on behalf of any indemnified party.
SECTION 9. Contribution.
In order to provide for just and equitable contribution in circumstances in which the
indemnity agreement provided for in Section 8 is for any reason held to be unenforceable by the
indemnified parties although applicable in accordance with its terms, the Company and the Agents
shall contribute to the aggregate losses, liabilities, claims, damages and expenses of the nature
contemplated by said indemnity agreement incurred by the Company and one or more of
26
the Agents, as incurred, in such proportions that each Agent is responsible for that portion
represented by the percentage that the commission or underwriting discount received by such Agent
bears to the total sales price from the sale of the Notes sold to or through such Agent that were
the subject of the claim for indemnification and the Company is responsible for the balance;
provided, however, that no person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 0000 Xxx) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. For purposes of this Section 9, each person, if any, who
controls an Agent within the meaning of Section 15 of the 1933 Act shall have the same rights to
contribution as such Agent, and each director of the Company, each officer of the Company who
signed the Registration Statement, and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act shall have the same rights to contribution as the Company.
SECTION 10. Payment of Expenses.
The Company will pay all expenses incident to the performance of its obligations under this
Agreement (whether or not any sale of Notes is consummated), including:
(a) The preparation and filing of the Registration Statement, the Prospectus, any preliminary
prospectus, any Issuer Free Writing Prospectus and all amendments or supplements thereto;
(b) The preparation, filing and reproduction of this Agreement and the Indenture;
(c) The preparation, printing, issuance and delivery of the Notes, including any fees and
expenses relating to the eligibility and issuance of Notes in book-entry form;
(d) The reasonable fees and disbursements of the Company’s accountants and counsel, of the
Trustee and its counsel, and of any calculation agent or exchange rate agent;
(e) The reasonable fees and disbursements of counsel to the Agents incurred in connection with
the establishment of the program relating to the Notes and incurred from time to time in connection
with the transactions contemplated hereby;
(f) The qualification of the Notes under state securities laws in accordance with the
provisions of Section 4(h) hereof, including filing fees and the reasonable fees and disbursements
of counsel for the Agents in connection therewith and in connection with the preparation of any
Blue Sky or Legal Investment Survey;
(g) The printing and delivery to and by the Agents in quantities as stated above of copies of
the Registration Statement, the Prospectus, any preliminary prospectus, any Issuer Free Writing
Prospectus and all amendments or supplements thereto;
(h) The preparation, reproducing and delivery to the Agents of copies of the Indenture and all
amendments, supplements and modifications thereto;
(i) Any fees charged by nationally recognized statistical rating organizations for the rating
of the Notes;
27
(j) The fees and expenses incurred in connection with any listing of Notes on a securities
exchange;
(k) The fees and expenses incurred with respect to any filing with the National Association of
Securities Dealers, Inc.;
(l) Any advertising and other out-of-pocket expenses of the Agents incurred with the approval
of the Company; and
(m) The cost of providing any CUSIP or other identification numbers for the Notes.
SECTION 11. Representations, Warranties and Agreements to Survive Delivery.
All representations, warranties and agreements contained in this Agreement or in certificates
of officers of the Company submitted pursuant hereto or thereto shall remain operative and in full
force and effect, regardless of any investigation made by or on behalf of the Agents or any
controlling person of an Agent, or by or on behalf of the Company, and shall survive each delivery
of and payment for any of the Notes.
SECTION 12. Termination.
(a) Termination of this Agreement. This Agreement (excluding any agreement by one or
more Agents to purchase Notes from the Company as principal) may be terminated for any reason at
any time by the Company or by an Agent, as to itself, upon the giving of 30 days’ written notice of
such termination to the other party hereto.
(b) Termination of Agreement to Purchase Notes as Principal. The applicable Agent or
Agents may also terminate any agreement by such Agent or Agents to purchase Notes from the Company
as principal, by notice to the Company, at any time at or prior to the Settlement Date relating
thereto (i) if there has been, since the date of such agreement or since the respective dates as of
which information is given in the Registration Statement, General Disclosure Package and the
Prospectus, any material adverse change in the condition, financial or otherwise, or in the
earnings, business affairs or business prospects of the Company and its subsidiaries considered as
one enterprise, whether or not arising in the ordinary course of business, or (ii) if there has
occurred any material adverse change in the financial markets in the United States or any outbreak
of hostilities or other calamity or crisis or escalation of any existing hostilities, the effect of
which is such as to make it, in the judgment of such Agent or Agents, impracticable or inadvisable
to market the Notes or enforce contracts for the sale of the Notes or a material disruption has
occurred in securities settlement or clearance services in the United States, or (iii) if trading
in any of the securities of the Company has been suspended by the Commission or the New York Stock
Exchange, or if trading generally on either the New York Stock Exchange, the American Stock
Exchange or NASDAQ has been suspended, or minimum or maximum prices for trading have been fixed, or
maximum ranges for prices for securities have been required, by either of said exchanges or by
order of the Commission or any other governmental authority, or if a banking moratorium has been
declared by Federal, New York or Maryland authorities, (iv) if the rating assigned by any
nationally recognized statistical rating organization to any debt securities of the Company as of
the date of such agreement shall have been lowered since that date or if any such rating
organization shall have publicly announced that it has under
28
surveillance or review, with possible negative implications, its rating of any debt securities
of the Company, or (v) if there shall have come to the attention of such Agent or Agents any facts
that would cause them to believe that the Registration Statement, General Disclosure Package and
the Prospectus, at the time it was required to be delivered to a purchaser of Notes, included an
untrue statement of a material fact or omitted to state a material fact necessary in order to make
the statements therein, in light of the circumstances existing at the time of such delivery, not
misleading.
(c) General. In the event of any such termination, none of the parties will have any
liability to any other party hereto, except that (i) the Agents shall be entitled to any commission
earned in accordance with the third paragraph of Section 3(b) hereof, (ii) if at the time of
termination (A) any Agent shall own any Notes purchased by it as principal with the intention of
reselling them or (B) an offer to purchase any of the Notes has been accepted by the Company but
the time of delivery to the purchaser or his agent of the Note or Notes relating thereto has not
occurred, the covenants set forth in Sections 4 and 7 hereof shall remain in effect until such
Notes are so resold or delivered, as the case may be, and (iii) the covenant set forth in Section
4(h) hereof, the provisions of Section 10 hereof, the indemnity and contribution agreements set
forth in Sections 8 and 9 hereof, and the provisions of Sections 11, 14 and 15 hereof shall remain
in effect.
SECTION 13. Notices.
Unless otherwise provided herein, all notices required under the terms and provisions hereof
shall be in writing, either delivered by hand, by mail or by telex, telecopier or telegram, and any
such notice shall be effective when received at the address specified below.
If to the Company or the Operating Entities:
UDR, Inc.
0000 Xxxx Xxxxxx Xxxxx, Xxxxx 000
Xxxxxxxxx Xxxxx, Xxxxxxxx 00000
Attention: President
Telecopy No.: (000) 000-0000
0000 Xxxx Xxxxxx Xxxxx, Xxxxx 000
Xxxxxxxxx Xxxxx, Xxxxxxxx 00000
Attention: President
Telecopy No.: (000) 000-0000
with a copy to:
Xxxxxxxx & Xxxxxxxx LLP
000 Xxxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. Xxxxxx, Esq.
Telecopy No.: (000) 000-0000
000 Xxxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. Xxxxxx, Esq.
Telecopy No.: (000) 000-0000
If to the Agents:
X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Medium-Term Note Desk
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Medium-Term Note Desk
29
Telecopy No.: (000) 000-0000
Banc of America Securities LLC
00 Xxxx 00xx Xxxxxx
XX0-000-00-00
Xxx Xxxx, Xxx Xxxx 00000
Attention: High Grade Transaction Management/Legal
Telecopy No.: (000) 000-0000
00 Xxxx 00xx Xxxxxx
XX0-000-00-00
Xxx Xxxx, Xxx Xxxx 00000
Attention: High Grade Transaction Management/Legal
Telecopy No.: (000) 000-0000
Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Transaction Execution Group
Telecopy No.: (000) 000-0000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Transaction Execution Group
Telecopy No.: (000) 000-0000
Xxxxxxx, Sachs & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxx Xxxxxx — Registration Department
Telecopy No.: (000) 000-0000
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxx Xxxxxx — Registration Department
Telecopy No.: (000) 000-0000
McDonald Investments Inc.
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Xxxxxx Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Investment Banking Division
Telecopy No.: (000) 000-0000
0000 Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Investment Banking Division
Telecopy No.: (000) 000-0000
SunTrust Capital Markets, Inc.
000 Xxxxxxxxx Xxxxxx
23rd Floor, MC 3947
Xxxxxxx, Xxxxxxx 00000
000 Xxxxxxxxx Xxxxxx
23rd Floor, MC 3947
Xxxxxxx, Xxxxxxx 00000
Wachovia Capital Markets, LLC
000 X. Xxxxxxx Xx., XX0000
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
000 X. Xxxxxxx Xx., XX0000
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Xxxxx Fargo Securities, LLC
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
or at such other address as such party may designate from time to time by notice duly given in
accordance with the terms of this Section 13.
30
SECTION 14. Governing Law; Forum.
This Agreement and all the rights and obligations of the parties 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. Any suit, action or proceeding brought by the Company against any
Agent in connection with or arising under this Agreement shall be brought solely in the state or
federal court of appropriate jurisdiction located in the Borough of Manhattan, The City of New
York.
SECTION 15. Parties.
This Agreement shall inure to the benefit of and be binding upon the Agents, the Company and
their respective successors. Nothing expressed or mentioned in this Agreement is intended or shall
be construed to give any person, firm or corporation, other than the parties hereto and their
respective successors and the controlling persons and officers and directors referred to in
Sections 8 and 9 and their heirs and legal representatives, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision herein contained. This Agreement and
all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the
parties hereto and respective successors and said controlling persons and officers and directors
and their heirs and legal representatives, and for the benefit of no other person, firm or
corporation. No purchaser of Notes shall be deemed to be a successor by reason merely of such
purchase.
SECTION 16. Counterparts.
This Agreement may be executed in one or more counterparts and, if executed in more than one
counterpart, the executed counterparts hereof shall constitute a single instrument.
31
If the foregoing is in accordance with the Agents’ understanding of our agreement, please sign
and return to the Company a counterpart hereof, whereupon this instrument along with all
counterparts will become a binding agreement between the Agents and the Company in accordance with
its terms.
| Very truly yours, | ||||||
| UDR, INC., | ||||||
| a Maryland corporation | ||||||
| By: | /s/ Xxxxxxx X. Xxxxx | |||||
| Name: | ||||||
| Title: | Executive Vice President and Chief Financial Officer | |||||
Confirmed and Accepted, as of the date first above written:
| X.X. XXXXXX SECURITIES INC. | ||||
By: |
/s/ Xxxxxxx X. Xxxxxxx | |||
| Title: Vice President | ||||
| BANC OF AMERICA SECURITIES LLC | ||||
By: |
/s/ Xxxxx X. Xxxxxxx | |||
| Title: Vice President | ||||
| CITIGROUP GLOBAL MARKETS INC. | ||||
By: |
/s/ Xxxxxxx X. Xxxxxxxxxxx | |||
| Title: Director | ||||
| XXXXXXX, SACHS & CO. | ||||
By: |
/s/ Xxxxxxx, Xxxxx & Co. | |||
| MCDONALD INVESTMENTS INC. | ||||
By: |
/s/ Xxxx Xxxx | |||
| Title: Director | ||||
| XXXXXX XXXXXXX & CO. INCORPORATED | ||||
By: |
/s/ Xxxxxxx Xxxxx | |||
| Title: Executive Director | ||||
| SUNTRUST CAPITAL MARKETS, INC. | ||||
By: |
/s/ Xxxxxx X. Xxxxxxxx | |||
| Title: Director | ||||
| WACHOVIA CAPITAL MARKETS, LLC | ||||
By: |
/s/ Xxxxxx Xxx | |||
| Title: Managing Director | ||||
| XXXXX FARGO SECURITIES, LLC | ||||
By: |
/s/ Xxxxxx XxXxxxxx | |||
| Title: Managing Director | ||||
EXHIBIT A
FORM OF TERMS AGREEMENT
TERMS AGREEMENT
, 20__
Subject in all respects to the terms and conditions of the Distribution Agreement dated March
20, 2007 by and among X.X. Xxxxxx Securities Inc., Banc of America Securities LLC, Citigroup Global
Markets Inc., Xxxxxxx, Sachs & Co., McDonald Investments Inc., Xxxxxx Xxxxxxx & Co. Incorporated,
SunTrust Capital Markets, Inc., Wachovia Capital Markets, LLC and Xxxxx Fargo Securities, LLC
(each, an “Agent”, and together, the “Agents”) and you (the “Agreement”), [each of] the
undersigned, severally and not jointly, agrees to purchase the following Medium-Term Notes, Series
A (the “Notes”), in the respective amounts set forth in the table below, of UDR, Inc.:
Aggregate Principal Amount: |
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[Table of allocations:] |
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Currency or Currency Unit: |
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Interest Rate or Base Rate(s): |
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Spread: |
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Spread Multiplier: |
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Stated Maturity Date: |
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Interest Payment Dates: |
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Record Dates: |
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Applicable Time: |
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Purchase Price:
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% of Principal Amount [plus accrued interest, if any, from , 20___] | |
Settlement Date and Time: |
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Certificated or Book-Entry Form: |
Place for Delivery of Notes
and Payment Therefor:
and Payment Therefor:
Method of Payment:
Modification, if any, in
the requirements to
deliver the documents
specified in the Agreement:
the requirements to
deliver the documents
specified in the Agreement:
Stand-off Period:
Issuer Free Writing Prospectus(es):
Also, in connection with the purchase of Notes from the Company by one or more Agents as principal,
agreement as to whether the following will be required:
Officers’ Certificate pursuant to Section 7(b) of the Distribution Agreement.
Legal Opinions pursuant to Section 7(c) of the Distribution Agreement.
Comfort Letters pursuant to Section 7(d) of the Distribution Agreement.
Stand-off Agreement pursuant to Section 4(j) of the Distribution Agreement.
Legal Opinions pursuant to Section 7(c) of the Distribution Agreement.
Comfort Letters pursuant to Section 7(d) of the Distribution Agreement.
Stand-off Agreement pursuant to Section 4(j) of the Distribution Agreement.
Other terms:
| [PURCHASERS] | ||||||
| By: | ||||||
Accepted:
By: |
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EXHIBIT A TO TERMS AGREEMENT
FORMS OF FINAL TERM SHEET
FINAL TERM SHEET
Form of Fixed Rate Pricing Term Sheet
Issuer:
|
UDR, Inc. | |
Size: |
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Security Type: |
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Maturity: |
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Coupon: |
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Price to Public: |
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Yield to maturity: |
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[Spread to Benchmark Treasury: ] |
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[Benchmark Treasury:] |
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[Benchmark Treasury Spot and Yield:] |
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Interest Payment Dates: |
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Redemption Provisions: |
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[First call date and price:] |
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[Make-whole call:] |
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Trade Date: |
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Settlement Date: |
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Denominations: |
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CUSIP: |
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[Ratings:] |
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Underwriters: |
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
collect •.
Any disclaimer or other notice that may appear below is not applicable to this communication and
should be disregarded. Such disclaimer or notice was automatically generated as a result of this
communication being sent by Bloomberg or another email system.
Form of Floating Rate Pricing Term Sheet
Issuer:
|
UDR, Inc. | |
Size: |
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Maturity: |
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Coupon: |
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Price to Public: |
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Interest Payment and Reset Dates: |
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Day Count Convention: |
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Redemption Provisions: |
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Trade Date: |
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Settlement Date: |
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Denominations: |
||
CUSIP: |
||
[Ratings:] |
||
Underwriters: |
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
collect •.
Any disclaimer or other notice that may appear below is not applicable to this communication and
should be disregarded. Such disclaimer or notice was automatically generated as a result of this
communication being sent by Bloomberg or another email system.
SCHEDULE A
As compensation for the services of the Agents hereunder, the Company shall pay the applicable
Agent, on a discount basis, a commission for the sale of each Note equal to the principal amount of
such Note multiplied by the appropriate percentage set forth below:
| PERCENT OF | ||||
| MATURITY RANGES | PRINCIPAL AMOUNT | |||
From 9 months to less than 1 year |
.125 | % | ||
From 1 year to less than 18 months |
.150 | |||
From 18 months to less than 2 years |
.200 | |||
From 2 years to less than 3 years |
.250 | |||
From 3 years to less than 4 years |
.350 | |||
From 4 years to less than 5 years |
.450 | |||
From 5 years to less than 6 years |
.500 | |||
From 6 years to less than 7 years |
.550 | |||
From 7 years to less than 10 years |
.600 | |||
From 10 years to less than 15 years |
.625 | |||
From 15 years to less than 20 years |
.700 | |||
From 20 years to 30 years |
.750 | |||
Greater than 30 years |
* | |||
| * | As agreed to by the Company and the applicable Agent at the time of sale. |
Sch. A-1
EXHIBIT B
UDR, Inc.
Medium-Term Notes, Series A
due Nine Months or More From Date of Issue
due Nine Months or More From Date of Issue
, 20
[Name and Address of Agent]
Dear [ ]:
UDR, Inc., a Maryland corporation (the “Company”), has previously entered into a Distribution
Agreement dated as of March 20, 2007 (the “Distribution Agreement”), between the Company and [list
named agents] (the “Existing Agents”), with respect to the issue and sale by the Company of its
Medium-Term Notes, Series A due Nine Months or More From Date of Issue (the “Notes”), pursuant to
an Indenture dated as of November 1, 1995, as amended or modified from time to time, between the
Company and U.S. Bank National Association, successor trustee to Wachovia Bank, National
Association (formerly known as First Union National Bank of Virginia), as Trustee. A copy of the
Distribution Agreement, including the Administrative Procedures with respect to the issuance of the
Notes (the “Procedures”), is attached hereto.
Subject to and in accordance with the terms of the Distribution Agreement and the Procedures,
the Company hereby appoints you as an Agent under the Distribution Agreement [in connection with
the purchase of the Notes described in the accompanying Pricing Supplement No. , dated
, but only for this one reverse inquiry transaction]. Your appointment is made subject
to the terms and conditions applicable to Agents under the Distribution Agreement [and terminates
upon payment for the Notes or other termination of this transaction].
Subject to the provisions hereof, this Agreement incorporates by reference all of the terms
and provisions of the Distribution Agreement, including all schedules and exhibits thereto.
Except as otherwise expressly provided herein, all terms used herein which are defined in the
Distribution Agreement shall have the same meanings as in the Distribution Agreement, except that
the terms “Agent”, “Agents” and “you”, as used in the Distribution Agreement, shall be deemed to
refer, where applicable and for purposes of this Agreement, to the Existing Agents and you.
You and we each agree to perform our respective duties and obligations specifically provided
to be performed by each of us in accordance with the terms and provisions of the Distribution
Agreement and the Procedures.
If the foregoing correctly sets forth our agreement, please indicate your acceptance hereof in
the space provided for that purpose below. This action will confirm your appointment and your
acceptance and agreement to act as Agent in connection with the issue and sale of the Notes under
the terms and conditions of the Distribution Agreement.
| Very truly yours, | ||||
| UDR, Inc. | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
CONFIRMED AND ACCEPTED:
as of the date first above written
as of the date first above written
[Agent] |
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Name: |
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Title:
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