PROLOGIS 48,050,061 Shares Common Shares of Beneficial Interest ($0.01 par value) Equity Distribution Agreement
Exhibit 1.1
Equity Distribution Agreement
March 29, 2010
Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx, 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx, 00000
Xxxxxx Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
0000 Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
ProLogis, a Maryland real estate investment trust (the “Company”), confirms its
agreement (this “Agreement”) with Citigroup Global Markets Inc. and Xxxxxx Xxxxxxx & Co.
Incorporated (each a “Manager” and collectively, the “Managers”) as follows:
1. Description of Shares. The Company proposes to issue and sell through or to the
Managers, as sales agents and/or principals, of up to 48,050,061 common shares (the
“Shares”) of beneficial interest, par value $0.01 per share (“Common Stock”), of
the Company, from time to time during the term of this Agreement and on the terms set forth in
Section 3 of this Agreement. For purposes of selling the Shares through the Managers, the Company
hereby appoints the Managers as exclusive agents of the Company for the purpose of soliciting
purchases of the Shares from the Company pursuant to this Agreement and each Manager agrees to use
its reasonable efforts to solicit purchases of the Shares on the terms and subject to the
conditions stated herein. The Company agrees that whenever it determines to sell the Shares
directly to a Manager as principal, it will enter into a separate agreement (each, a “Terms
Agreement”) in substantially the form of Annex I hereto, relating to such sale in accordance
with Section 3 of this Agreement. Certain terms used herein are defined in Section 18 hereof.
2. Representations and Warranties. The Company represents and warrants to, and agrees with,
the Managers at the Execution Time and on each such time the following representations and
warranties are repeated or deemed to be made pursuant to this Agreement, as set forth below.
(a) The Company meets the requirements for use of Form S-3 under the Act and has prepared and
filed with the Commission an automatic shelf registration statement, as defined in Rule 405 (File
Number 333-157818) on Form S-3, including a related Base Prospectus, for registration under the Act
of the offering and sale of the Shares and other securities of the Company. Such Registration
Statement, including any amendments thereto filed prior to the Execution Time or prior to any such
time this representation is repeated or deemed to be made, became effective upon filing. The
Company shall file with the Commission the Prospectus
Supplement relating to the Shares in accordance with Rule 424(b) promptly after the Execution
Time (but in any event in the time period prescribed thereby). As filed, the Prospectus will
contain all information required by the Act and the rules thereunder, and, except to the extent the
Managers shall agree in writing to a modification, shall be in all substantive respects in the form
furnished to the Managers prior to the Execution Time or prior to any such time this representation
is repeated or deemed to be made. The Registration Statement, at the Execution Time, each such time
this representation is repeated or deemed to be made, and at all times during which a prospectus is
required by the Act to be delivered (whether physically or through compliance with Rule 172 or any
similar rule) in connection with any offer or sale of Shares, meets the requirements set forth in
Rule 415(a)(1)(x). The initial Effective Date of the Registration Statement was not earlier than
the date three years before the Execution Time. Any reference herein to the Registration Statement,
the Base Prospectus, the Prospectus Supplement, any Interim Prospectus Supplement or the Prospectus
shall be deemed to refer to and include the documents incorporated by reference therein pursuant to
Item 12 of Form S-3 which were filed under the Exchange Act on or before the Effective Date of the
Registration Statement or the issue date of the Base Prospectus, the Prospectus Supplement, any
Interim Prospectus Supplement or the Prospectus, as the case may be; and any reference herein to
the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, the Base
Prospectus, the Prospectus Supplement, any Interim Prospectus Supplement or the Prospectus shall be
deemed to refer to and include the filing of any document under the Exchange Act after the
Effective Date of the Registration Statement or the issue date of the Base Prospectus, the
Prospectus Supplement, any Interim Prospectus Supplement or the Prospectus, as the case may be,
deemed to be incorporated therein by reference. Notwithstanding the foregoing, the representations
and warranties in this subsection shall not apply to (i) that part of the Registration Statement
which constitutes the Statement of Eligibility on Form T-1 of the trustee under the Trust Indenture
Act (the “Form T-1”) and (ii) statements in or omissions from the Registration Statement or
any post-effective amendment or the Prospectus or any amendments or supplements thereto, made in
reliance upon and in conformity with information furnished to the Company in writing by the
Managers relating to the Managers expressly for use therein.
(b) To the extent that the Registration Statement is not available for the sales of the Shares
as contemplated by this Agreement or the Company otherwise is unable to make the representations
set forth in Section 2(e) at any time when such representations are required, the Company shall
file a new registration statement with respect to any additional shares of Common Stock necessary
to complete such sales of the Shares and shall cause such registration statement to become
effective as promptly as practicable. After the effectiveness of any such registration statement,
all references to “Registration Statement” included in this Agreement shall be deemed to include
such new registration statement, including all documents incorporated by reference therein pursuant
to Item 12 of Form S-3, and all references to “Base Prospectus” included in this Agreement shall be
deemed to include the final form of prospectus, including all documents incorporated therein by
reference, included in any such registration statement at the time such registration statement
became effective.
(c) On each Effective Date, at the Execution Time, at each Applicable Time, at each Settlement
Date and at all times during which a prospectus is required by the Act to be delivered (whether
physically or through compliance with Rule 172 or any similar rule) in connection with
any offer or sale of Shares, the Registration Statement complied and will comply in all
material respects with the applicable requirements of the Act and the rules thereunder and did not
and will not contain any untrue statement of a material fact or omit to state any material fact
required to
be stated therein or necessary in order to make the statements therein not misleading;
and on the date of any filing pursuant to Rule 424(b), at each Applicable Time, on each Settlement
Date and at all times during which a prospectus is required by the Act to be delivered (whether
physically or through compliance with Rule 172 or any similar rule) in connection with any offer or
sale of Shares, the Prospectus (together with any supplement thereto) complied and will comply in
all material respects with the applicable requirements of the Act and the rules thereunder and did
not and will not include any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided, however, that the Company makes no
representations or warranties as to the information contained in or omitted from the Registration
Statement or the Prospectus (or any supplement thereto) in reliance upon and in conformity with
information furnished in writing to the Company by the Managers specifically for inclusion in the
Registration Statement or the Prospectus (or any supplement thereto).
(d) At the Execution Time, at each Applicable Time and at each Settlement Date, the Disclosure
Package does not contain 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. The preceding sentence does not apply to statements in or omissions
from the Disclosure Package based upon and in conformity with written information furnished to the
Company by the Managers specifically for use therein.
(e) (i) At the time of filing the Registration Statement, (ii) at the time of the most recent
amendment thereto for the purposes of complying with Section 10(a)(3) of the Act (whether such
amendment was by post-effective amendment, incorporated report filed pursuant to Sections 13 or
15(d) of the Exchange Act or form of prospectus), and (iii) at the time the Company or any person
acting on its behalf (within the meaning, for this clause only, of Rule 163(c)) made any offer
relating to the Shares in reliance on the exemption in Rule 163, the Company was or is (as the case
may be) a “well-known seasoned issuer” as defined in Rule 405. The Company agrees to pay the fees
required by the Commission relating to the Shares within the time required by Rule 456(b)(1)
without regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r).
(f) (i) At the earliest time after the filing of the Registration Statement that the Company
or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2)) of
the Shares and (ii) as of the Execution Time and on each such time this representation is repeated
or deemed to be made (with such date being used as the determination date for purposes of this
clause (ii)), the Company was not and is not an Ineligible Issuer (as defined in Rule 405), without
taking account of any determination by the Commission pursuant to Rule 405 that it is not necessary
that the Company be considered an Ineligible Issuer.
(g) Each Issuer Free Writing Prospectus does not include any information that conflicts with
the information contained in the Registration Statement, including any document incorporated
therein by reference and any prospectus supplement deemed to be a part thereof that
has not been superseded or modified. The foregoing sentence does not apply to statements in or
omissions from any Issuer Free Writing Prospectus based upon and in conformity with written
information furnished to the Company by the Managers specifically for use therein.
(h) The Registration Statement is not the subject of a pending proceeding or examination under
Section 8(d) or 8(e) of the Act, and the Company is not the subject of a pending proceeding under
Section 8A of the Act in connection with the offering of the Shares.
(i) The Common Stock is an “actively-traded security” exempted from the requirements of Rule
101 of Regulation M under the Exchange Act by subsection (c)(1) of such rule.
(j) The Company has not entered into any other sales agency agreements or other similar
arrangements with any agent or any other representative in respect of at the market offerings of
the Shares in accordance with Rule 415(a)(4) of the Act.
(k) The Company has not and will not (i) take, directly or indirectly, any action designed to
or that would constitute or that might reasonably be expected to cause or result in, under the
Exchange Act or otherwise, stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Shares or (ii) sell, bid for, purchase or pay any
person (other than as contemplated by this Agreement) any compensation for soliciting purchases of
the Shares.
(l) Other than the Managers, there is no broker, finder or other party that is entitled to
receive from the Company any brokerage or finder’s fee or other fee or commission as a result of
any transactions contemplated by this Agreement.
(m) This Agreement has been, and any applicable Terms Agreement will be, duly authorized,
executed and delivered by the Company.
(n) The Shares have been duly authorized, and when issued, delivered and paid for in
accordance with this Agreement and any applicable Terms Agreement, will be validly issued, fully
paid and non-assessable, free and clear of any lien, charge or encumbrance; the shares of
beneficial interest of the Company, including the Shares, conform to the description thereof
contained in the Registration Statement and the Shares will conform to the description thereof
contained in the Prospectus as amended or supplemented. Neither the shareholders of the Company,
nor any other person or entity have any preemptive rights or rights of first refusal with respect
to the Shares or other rights to purchase or receive any of the Shares, and no person has the
right, contractual or otherwise, to cause the Company to issue to it, or register pursuant to the
Act, any shares of beneficial interest or other securities or assets of the Company upon the
issuance or sale of the Shares.
(o) Except as otherwise disclosed in the Disclosure Package and the Prospectus, subsequent to
the respective dates as of which information is given in the Disclosure Package and the Prospectus:
(i) there has been no material adverse change, or any development that could reasonably be expected
to result in a material adverse change, in the condition, financial or otherwise, or in the
earnings, business, operations or prospects, whether or not arising from
transactions in the ordinary course of business, of the Company and its subsidiaries,
considered as one entity (any such change is called a “Material Adverse Change”); (ii) the
Company and its subsidiaries, considered as one entity, have not incurred any material liability or
obligation, indirect, direct or contingent, not in the ordinary course of business or entered into
any material
transaction or agreement not in the ordinary course of business; and (iii) except for
regular quarterly dividends on the Common Stock or shares of preferred stock or shares in amounts
per share that are consistent with past practice or any special dividends on the Common Stock that
are the subject of a press release (whether in cash, Common Stock or a combination of both), there
has been no dividend or distribution of any kind declared, paid or made by the Company or, except
for dividends paid to the Company or other subsidiaries, any of its subsidiaries on any class of
capital stock or shares or repurchase or redemption by the Company or any of its subsidiaries of
any class of capital stock or shares.
(p) KPMG LLP, who have expressed their opinion with respect to the Company’s audited financial
statements for the fiscal years ended December 31, 2007, 2008 and 2009 incorporated by reference in
the Registration Statement and the Prospectus, are independent public or certified public
accountants within the meaning of Regulation S-X under the Securities Act and the Exchange Act and
a registered public accounting firm within the meaning of the Xxxxxxxx-Xxxxx Act of 2002.
(q) The financial statements together with the related notes thereto and the related
schedule(s) incorporated by reference in the Registration Statement and the Prospectus present
fairly the consolidated financial position of the Company and its subsidiaries, as of and at the
dates indicated and the results of their operations and cash flows for the periods specified. Such
financial statements and related schedule(s) have been prepared in conformity with generally
accepted accounting principles as applied in the United States applied on a consistent basis
throughout the periods involved, except as may be expressly stated in the related notes thereto. No
other financial statements or supporting schedules are required to be included in the Registration
Statement. The summary financial information, if any, included in the Prospectus present fairly in
all material respects the information shown therein and have been compiled on a basis consistent
with that of the audited financial statements incorporated by reference in the Registration
Statement and the Prospectus.
(r) The Company has been duly organized and is validly existing as a real estate investment
trust in good standing under the laws of the State of Maryland and has the trust power and
authority to own, lease and operate its properties and to conduct its business as described in the
Disclosure Package and the Prospectus, and to enter into and perform its obligations under this
Agreement and any applicable Terms Agreement. The Company is duly qualified to transact business
and is in good standing in each jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business, except for such
jurisdictions where the failure to so qualify or to be in good standing would not, individually or
in the aggregate, result in a Material Adverse Change.
(s) Each subsidiary and joint venture of the Company listed on Schedule II hereto
(collectively, the “Significant Subsidiaries”) has been duly incorporated or organized, as
the case may be, and is validly existing as a corporation, trust or partnership and (except as to
any general partnership) in good standing under the laws of the jurisdiction of its incorporation or
organization, as the case may be, and has the power (corporate or other) and authority to own,
lease and operate its properties and to conduct its business as described in the Disclosure Package
and the Prospectus. Each Significant Subsidiary is duly qualified as a foreign corporation, trust
or partnership to transact business and is in good standing in each jurisdiction
in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct
of business, except for such jurisdictions where the failure to so qualify or to be in good
standing would not, individually or in the aggregate, result in a Material Adverse Change. All of
the issued and outstanding capital stock and other equity interests of each Significant Subsidiary
have been duly authorized and validly issued, and are fully paid and (except for general
partnership interests and directors’ qualifying shares) nonassessable; all shares of outstanding
capital stock and other equity interests of each Significant Subsidiary held by the Company,
directly or through subsidiaries, are owned free and clear of any security interest, mortgage,
pledge, lien, encumbrance or claim, except for the pledge of such capital stock or other interests
to secure borrowings of the Company or one of its wholly owned subsidiaries. The subsidiaries of
the Company listed on Schedule II are the only subsidiaries of the Company that are material to the
condition, financial or otherwise, or the earnings, business, operations or prospects of the
Company and its subsidiaries, considered as one entity, and except for ProLogis Management
Incorporated, include all subsidiaries of the Company, which individually meet the criteria in the
definition of “significant subsidiary” pursuant to Rule 1-02(w) of Regulation S-X under the
Securities Act.
(t) All of the issued and outstanding shares of beneficial interest of the Company have been
duly authorized and validly issued, are fully paid and nonassessable and have been issued in
compliance with federal and state securities laws.
(u) There are no outstanding options to purchase, or any rights or warrants to subscribe for,
or any securities or obligations convertible into, or any contracts or commitments to issue or
sell, any shares of Common Stock, any shares of capital stock of any subsidiary, or any such
warrants, convertible securities or obligations, except as set forth in the Disclosure Package and
the Prospectus and except for options granted under, or contracts or commitments pursuant to, the
Company’s previous or currently existing option plan and other similar officer, trustee or employee
benefit plans; and there are no contracts, commitments, agreements, arrangements, understandings or
undertakings of any kind to which the Company is a party, or by which it is bound, granting to any
person the right to require either the Company to file a registration statement under the
Securities Act with respect to any securities of the Company or requiring the Company to include
such securities with the Shares registered pursuant to any registration statement, except as set
forth in the Disclosure Package and the Prospectus.
(v) Neither the Company nor any of its subsidiaries is in violation of its declaration of
trust (or charter or by laws or other similar constitutive documents), except, in the case of
subsidiaries of the Company, for such violations as would not, individually or in the aggregate,
result in a Material Adverse Change. Neither the Company nor any of its subsidiaries is in default
(or, with the giving of notice or lapse of time or both, would be in default) (“Default”)
under any indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other
instrument to which the Company or any of its subsidiaries is a party or by which it or any of
them may be bound, or to which any of the property or assets of the Company or any of its
subsidiaries is subject (each, an “Existing Instrument”), except for such Defaults as would
not, individually or in the aggregate, result in a Material Adverse Change. The Company’s
execution, delivery and performance of this Agreement and any applicable Terms Agreement, and the
issuance and delivery of the Shares, the consummation of the transactions contemplated hereby and
by the Disclosure Package and the Prospectus (i) have been duly authorized by all necessary
trust, corporate or other action, as the case may be, and will not result in any violation of the
provisions of the declaration of trust (or charter or by laws or other similar constitutive
documents) of the Company or any subsidiary of the Company, except, in the case of subsidiaries of
the Company, for such violations as would not, individually or in the aggregate, result in a
Material Adverse Change, (ii) will not conflict with or constitute a breach of, or Default under,
or result in the creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company or any of its subsidiaries pursuant to, or require the consent of any other
party to, any Existing Instrument, except for such conflicts, breaches, Defaults, liens, charges or
encumbrances as would not, individually or in the aggregate, result in a Material Adverse Change
and (iii) will not result in any violation of any law, administrative regulation or administrative
or court decree applicable to the Company or any subsidiary of the Company, except for such
violation as would not, individually or in the aggregate, result in a Material Adverse Change. No
consent, approval, authorization or other order of, or registration or filing with, any court or
other governmental or regulatory authority or agency, is required for the Company’s execution,
delivery and performance of this Agreement and any applicable Terms Agreement, or the issuance and
delivery of the Shares or consummation of the transactions contemplated hereby and by the
Disclosure Package and the Prospectus, except for the filing of the Prospectus Supplement as
contemplated by Section 2(a) and such as have been obtained or made by the Company and are in full
force and effect under the Securities Act, and applicable state securities or blue sky laws and
from the Financial Industry Regulatory Authority (“FINRA”) or the failure of which to
obtain would not result in a Material Adverse Change or have a material adverse effect on the
consummation of the transactions contemplated by this Agreement.
(w) Except as otherwise disclosed in the Disclosure Package and the Prospectus, there are no
legal or governmental actions, suits or proceedings pending or, to the best of the Company’s
knowledge, threatened (i) against or affecting the Company or any of its subsidiaries, (ii) which
has as the subject thereof any officer or director of, or property owned or leased by, the Company
or any of its subsidiaries or (iii) relating to environmental or discrimination matters, where in
any such case (A) there is a reasonable possibility that such action, suit or proceeding might be
determined adversely to the Company or such subsidiary and (B) any such action, suit or proceeding,
if so determined adversely, would reasonably be expected to result in a Material Adverse Change or
adversely affect the consummation of the transactions contemplated by this Agreement.
(x) No material labor dispute with the employees of the Company or any of its subsidiaries
exists or, to the best of the Company’s knowledge, is threatened or imminent, except for such
disputes as would not, individually or in the aggregate, result in a Material Adverse Change.
(y) The Company and its subsidiaries own or possess sufficient trademarks, trade names, patent
rights, copyrights, domain names, licenses, approvals, trade secrets and other similar rights
(collectively, “Intellectual Property Rights”) reasonably necessary to conduct their
businesses as now conducted, except as would not result in a Material Adverse Change; and the
expected expiration of any of such Intellectual Property Rights would not result in a Material
Adverse Change. Neither the Company nor any of its subsidiaries has received any notice of
infringement or conflict with asserted Intellectual Property Rights of others, which infringement
or conflict, if the subject of an unfavorable decision, would result in a Material Adverse Change.
The Company is not a party to or bound by any options, licenses or agreements with respect to the
Intellectual Property Rights of any other person or entity that are required to be set forth in the
Registration Statement or the Prospectus, and that are not described in all material respects in
such documents. None of the technology employed by the Company has been obtained or is being used
by the Company in violation of any contractual obligation binding on the Company or, to the
Company’s knowledge, any of its officers, directors or employees or otherwise in violation of the
rights of any persons, except for such violations as would not, individually or in the aggregate,
result in a Material Adverse Change.
(z) The Company and each subsidiary possess such valid and current certificates,
authorizations, permits, licenses, approvals, consents and other authorizations issued by the
appropriate state, federal or foreign regulatory agencies or bodies necessary to conduct their
respective businesses, and neither the Company nor any subsidiary has received any notice of
proceedings relating to the revocation or modification of, or non-compliance with, any such
certificate, authorization, permit, license, approval, consent or other authorization which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could result in
a Material Adverse Change.
(aa) Except as otherwise disclosed in the Disclosure Package and the Prospectus, the Company
and each of its subsidiaries has good and marketable title to all the properties and assets
reflected as owned in the financial statements referred to in Section 1(q) above (or elsewhere in
the Disclosure Package and the Prospectus), in each case free and clear of any security interests,
mortgages, liens, encumbrances, equities, claims and other defects, except such as do not
materially and adversely affect the value of such property and do not materially interfere with the
use made or proposed to be made of such property by the Company or such subsidiary. The real
property, improvements, equipment and personal property held under lease by the Company or any
subsidiary are held under valid and enforceable leases, with such exceptions as are not material
and do not materially interfere with the use made or proposed to be made of such real property,
improvements, equipment or personal property by the Company or such subsidiary.
(bb) The Company and its subsidiaries have filed all material federal, state and foreign
income and franchise tax returns or have properly requested extensions thereof and have paid all
taxes required to be paid by any of them and, if due and payable, any related or similar
assessment, fine or penalty levied against any of them except as may be being contested in good
faith and by appropriate proceedings. The Company has made adequate charges, accruals and reserves
in the applicable financial statements referred to in Section 1(q) above in respect of all federal,
state and foreign income and franchise taxes for all periods as to which the tax liability
of the Company or any of its subsidiaries has not been finally determined. With respect to all
tax periods in respect of which the Internal Revenue Service is or will be entitled to 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, and the regulations and
published interpretations thereunder (the “Internal Revenue Code”) and the Company’s
present and contemplated organizational ownership, method of operation, assets and income are such
that the Company will continue to meet such requirements.
(cc) The Company is not, and after receipt of payment for the Shares and the application of
the proceeds as described in the Disclosure Package and the Prospectus under “Use of Proceeds” will
not be, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended (the “Investment Company Act”).
(dd) Each of the Company and its subsidiaries taken as a whole carry or are covered by
insurance in such amounts covering such risks as are generally deemed adequate and customary for
their businesses. The Company has no reason to believe that it or any subsidiary will not be able
(i) to renew its existing insurance coverage as and when such policies expire or (ii) to obtain
comparable coverage from similar institutions as may be necessary or appropriate to conduct its
business as now conducted and at a cost that would not result in a Material Adverse Change.
(ee) Neither the Company nor any of its Significant Subsidiaries nor, to the best of the
Company’s knowledge, any employee or agent of the Company or any Significant Subsidiary, has made
any contribution or other payment to any official of, or candidate for, any federal, state or
foreign office in violation of any law or of the character necessary to be disclosed in the
Disclosure Package and the Prospectus in order to make the statements therein, in the light of the
circumstances under which such statements were made, not misleading.
(ff) Except as would not, individually or in the aggregate, result in a Material Adverse
Change (i) neither the Company nor any of its subsidiaries is in violation of any federal, state,
local or foreign law or regulation relating to pollution or protection of human health or the
environment (including, without limitation, ambient air, surface water, groundwater, land surface
or subsurface strata) or wildlife, including without limitation, laws and regulations relating to
emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants,
wastes, toxic substances, hazardous substances, petroleum and petroleum products (collectively,
“Materials of Environmental Concern”), or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of
Environmental Concern (collectively, “Environmental Laws”), which violation includes, but
is not limited to, noncompliance with any permits or other governmental authorizations required for
the operation of the business of the Company or its subsidiaries under applicable Environmental
Laws, or noncompliance with the terms and conditions thereof, nor has the Company or any of its
subsidiaries received any written communication, whether from a governmental authority, citizens
group, employee or otherwise, that alleges that the Company or any of its subsidiaries is in
violation of any Environmental Law; (ii) there is no claim, action or cause of action filed with a
court or governmental authority with respect to which the Company has received written notice, no
investigation with respect to which the Company has received written notice, and no written notice
by any person or entity alleging potential liability for
investigatory costs, cleanup costs, governmental responses costs, natural resources damages,
property damages, personal injuries, attorneys’ fees or penalties arising out of, based on or
resulting from the presence, or release into the environment, of any Material of Environmental
Concern at any location owned, leased or operated by the Company or any of its subsidiaries, now or
in the past (collectively, “Environmental Claims”), pending or, to the best of the
Company’s knowledge, threatened against the Company or any of its subsidiaries or any person or
entity whose liability for any Environmental Claim the Company or any of its subsidiaries has
retained or assumed either contractually or by operation of law; and (iii) to the best of the
Company’s knowledge, there are no past or present actions, activities, circumstances, conditions,
events or incidents, including, without limitation, the release, emission, discharge, presence or
disposal of any Material of Environmental Concern, that reasonably could result in a violation of
any Environmental Law or form the basis of a potential Environmental Claim against the Company or
any of its subsidiaries or against any person or entity whose liability for any Environmental Claim
the Company or any of its subsidiaries has retained or assumed either contractually or by operation
of law.
(gg) The Company and its subsidiaries and any “employee benefit plan” (as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended, and the regulations and
published interpretations thereunder (collectively, “ERISA”)) established or maintained by
the Company, its subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance in
all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or a
subsidiary, any member of any group of organizations described in Sections 414(b), (c), (m) or (o)
of the Internal Revenue Code, of which the Company or such subsidiary is a member. No “reportable
event” (as defined under ERISA) has occurred or is reasonably expected to occur with respect to any
“employee benefit plan” established or maintained by the Company, its subsidiaries or any of their
ERISA Affiliates. No “employee benefit plan” established or maintained by the Company, its
subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan” were terminated,
would have any “amount of unfunded benefit liabilities” (as defined under ERISA). Neither the
Company, its subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to
incur any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from,
any “employee benefit plan,” (ii) Sections 412, 4971 or 4975 of the Internal Revenue Code, or (iii)
Section 4980B of the Internal Revenue Code with respect to the excise tax imposed thereunder. Each
“employee benefit plan” established or maintained by the Company, its subsidiaries or any of their
ERISA Affiliates that is intended to be qualified under Section 401(a) of the Internal Revenue Code
has received a favorable determination letter from the Internal Revenue Service and nothing has
occurred, whether by action or failure to act, which is reasonably likely to cause disqualification
of any such employee benefit plan under Section 401(a) of the Internal Revenue Code.
(hh) The Company and its subsidiaries maintain effective internal control over financial
reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act.
(ii) The Company has established and maintains disclosure controls and procedures (as such
term is defined in Rules 13a-15 and 15d-14 under the Exchange Act); such disclosure controls and
procedures are designed to ensure that material information relating to the Company and its
subsidiaries is made known to the chief executive officer and chief financial officer of the
Company by others within the Company or any of its subsidiaries, and such disclosure controls
and procedures are reasonably effective to perform the functions for which they were established
subject to the limitations of any such control system; the Company’s auditors and the audit
committee of the board of directors of the Company have been advised of: (i) any significant
deficiencies or material weaknesses in the design or operation of internal controls which could
adversely affect the Company’s ability to record, process, summarize, and report financial data;
and (ii) any fraud, whether or not material, that involves management or other employees who have a
role in the Company’s internal controls; and since the date of the most recent evaluation of such
disclosure controls and procedures, there have been no significant changes in internal
controls or in other factors that could significantly affect internal controls, including any corrective
actions with regard to significant deficiencies and material weaknesses.
(jj) The Shares have been approved for listing on the New York Stock Exchange
(“NYSE”), subject only to official notice of issuance.
Any certificate signed by any officer of the Company and delivered to the Managers or counsel
for the Managers in connection with this Agreement or any Terms Agreement shall be deemed a
representation and warranty by the Company, as to matters covered thereby, to the Managers.
3. Sale and Delivery of Shares.
(a) Subject to the terms and conditions and in reliance upon the representations and
warranties herein set forth, the Company agrees to issue and sell Shares from time to time through
a Designated Manager, acting as sales agent, and each Manager agrees, at any time it is a
Designated Manager, to use its reasonable efforts to sell, as sales agent for the Company, the
Shares on the following terms.
(i) The Shares are to be sold on a daily basis or otherwise as shall be agreed to
by the Company and a Designated Manager on any day that (A) is a trading day for the
NYSE, (B) the Company has instructed the Designated Manager by telephone (confirmed
promptly by electronic mail) to make such sales and (C) the Company has satisfied its
obligations under Section 6 of this Agreement; provided, however, that
the Company will only submit instructions to sell Shares to one of the Managers on a
single trading day. The Company will designate the maximum amount of the Shares to be
sold by the Designated Manager daily as agreed to by such Designated Manager (in any
event not in excess of the amount available for issuance under the Prospectus and the
currently effective Registration Statement) and the minimum price per Share at which
such Shares may be sold. Subject to the terms and conditions hereof, the Designated
Manager shall use its reasonable efforts to sell on a particular day all of the Shares
designated for the sale by the Company on such day. The gross sales price of the Shares
sold under this Section 3(a) shall be the market price for shares of the Company’s
Common Stock sold by the Designated Manager under this Section 3(a) on the NYSE at the
time of sale of such Shares (but in no event shall such gross price be less than the
minimum price per Share designated by the Company at which such Shares may be sold).
(ii) The Company acknowledges and agrees that (A) there can be no assurance that
the Designated Manager will be successful in selling the Shares, (B) the Designated
Manager will incur no liability or obligation to the Company or any other person or
entity if it does not sell Shares for any reason other than a failure by the Designated
Manager to use its reasonable efforts consistent with its normal trading and sales
practices and applicable law and regulations to sell such Shares as required under this
Agreement, and (C) the Designated Manager shall be under no obligation to purchase
Shares on a principal basis pursuant to this Agreement, except as otherwise specifically
agreed by the Designated Manager and the Company.
(iii) The Company shall not authorize the issuance and sale of, and a Designated
Manager may not sell, any Share at a price lower than the minimum price therefor
designated from time to time by the Company’s Board of Directors (the “Board”),
or a duly authorized committee thereof, and notified to the Designated Manager in
writing. The Company or a Designated Manager may, upon notice to the other parties
hereto by telephone (confirmed promptly by electronic mail), suspend an offering of the
Shares by such Designated Manager for any reason and at any time; provided,
however, that such suspension or termination shall not affect or impair the
parties’ respective obligations with respect to the Shares sold hereunder prior to the
giving of such notice.
(iv) The Designated Manager hereby covenants and agrees not to make any sales of
the Shares on behalf of the Company, pursuant to this Section 3(a), other than (A) by
means of ordinary brokers’ transactions between members of the NYSE that qualify for
delivery of a Prospectus to the NYSE in accordance with Rule 153 of the 1933 Act
Regulations (such transactions are hereinafter referred to as “Continuous
Offerings”) and (B) such other sales of the Shares on behalf of the Company in its
capacity as agent of the Company as shall be agreed by the Company and such Designated
Manager pursuant to a Terms Agreement.
(v) The compensation to a Designated Manager for sales of the Shares with respect
to which such Designated Manager acts as sales agent under this Agreement shall be up to 2.00%
of the gross sales price of the Shares sold by such Designated Manager pursuant to this
Section 3(a), as agreed between the Company and such Designated Manager at the time instructions to sell Shares are given, and payable as described in the succeeding subsection (vi) below. The
foregoing rate of compensation shall not apply when a Manager acts as principal, in
which case the Company may sell Shares to such Manager as principal at a price agreed
upon at the relevant Applicable Time pursuant to a Terms Agreement. The remaining
proceeds, after further deduction for any transaction fees imposed by any governmental
or self-regulatory organization in respect of such sales (the “Transaction
Fees”), shall constitute the net proceeds to the Company for such Shares (the
“Net Proceeds”).
(vi) A Designated Manager shall provide written confirmation (which may be by
facsimile or electronic mail) to the Company following the close of trading on the NYSE
each day in which the Shares are sold by such Designated Manager under this Section 3(a)
setting forth the number of the Shares sold on such day, the aggregate
gross sales proceeds and the Net Proceeds to the Company. Compensation payable to a
Designated Manager with respect to any sales made pursuant to this Agreement shall be
set forth and invoiced in periodic statements from such Designated Manager to the
Company, with payment to be made by the Company promptly after its receipt thereof.
(vii) Settlement for sales of the Shares pursuant to this Section 3(a) will occur
on the third trading day following the date on which such sales are made (each such day,
a “Settlement Date”). On each Settlement Date, the Shares sold through a
Designated Manager for settlement on such date shall be issued and delivered by the
Company to such Designated Manager against payment of the aggregate gross sales
proceeds less any Transaction Fees from the sale of such Shares. Settlement for all such Shares
shall be effected by free delivery of the Shares to such Designated Manager’s account at
The Depository Trust Company (“DTC”) in return for payments in same day funds
delivered to the account designated by the Company. If the Company or its transfer agent
(if applicable) shall default on its obligation to deliver the Shares on any Settlement
Date, the Company shall (A) indemnify and hold such Designated Manager harmless against
any loss, claim or damage arising from or as a result of such default by the Company and
(B) pay such Designated Manager any commission to which it would otherwise be entitled
absent such default. If a Designated Manager breaches this Agreement by failing to
deliver the aggregate gross sales proceeds less any Transaction Fees to the Company on
any Settlement Date for the Shares delivered by the Company, such Designated Manager
will pay the Company interest based on the effective overnight federal funds rate on
such unpaid amount less any compensation due to such Designated Manager.
(viii) At each Applicable Time, Settlement Date, Representation Date (as defined in
Section 4(l)) and Filing Date (as defined in Section 4(r)), the Company shall be deemed
to have affirmed each representation and warranty contained in this Agreement as if such
representation and warranty were made as of such date, modified as necessary to relate
to the Registration Statement and the Prospectus as amended as of such date. Any
obligation of any Manager to use its reasonable efforts to sell the Shares on behalf of
the Company shall be subject to the continuing accuracy of the representations and
warranties of the Company herein, to the performance by the Company of its obligations
hereunder and to the continuing satisfaction of the additional conditions specified in
Section 6 of this Agreement.
(b) If the Company wishes to issue and sell the Shares pursuant to this Agreement but other
than as set forth in Section 3(a) of this Agreement (each, a “Placement”), it will notify
the Managers of the proposed terms of such Placement. If any Manager or both Managers, acting as
principal, wishes to accept such proposed terms (which a Manager may decline to do for any reason
in its sole discretion) or, following discussions with the Company wishes to accept amended terms,
such Manager or Managers and the Company will enter into a Terms Agreement setting forth the terms
of such Placement. The terms set forth in a Terms Agreement will not be binding on the Company or
such Manager or Managers unless and until the Company and such Manager or Managers have each
executed such Terms Agreement accepting all of the terms of
such Terms Agreement. In the event of a conflict between the terms of this Agreement and the
terms of a Terms Agreement, the terms of such Terms Agreement will control.
(c) Each sale of the Shares to a Manager shall be made in accordance with the terms of this
Agreement and, if applicable, a Terms Agreement, which will provide for the sale of such Shares to,
and the purchase thereof by, such Manager. A Terms Agreement may also specify certain provisions
relating to the reoffering of such Shares by a Manager. The commitment of a Manager to purchase the
Shares pursuant to any Terms Agreement 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. Each Terms Agreement shall specify the number of the Shares to be
purchased by a Manager pursuant thereto, the price to be paid to the Company for such Shares, any
provisions relating to rights of, and default by, underwriters
acting together with such Manager in the reoffering of the Shares, and the time and date (each such time and date being referred to
herein as a “Time of Delivery”) and place of delivery of and payment for such Shares. Such
Terms Agreement shall also specify any requirements for opinions of counsel, accountants’ letters
and officers’ certificates pursuant to Section 6 of this Agreement and any other information or
documents required by such Manager.
(d) Under no circumstances shall the number and aggregate amount of the Shares sold pursuant
to this Agreement and any Terms Agreement exceed (i) the aggregate amount set forth in Section 1,
(ii) the number of shares of the Common Stock available for issuance under the currently effective
Registration Statement or (iii) the number and aggregate amount of the Shares authorized from time
to time to be issued and sold under this Agreement by the Board, or a duly authorized committee
thereof, and notified to the Managers in writing.
(e) If either party has reason to believe that the exemptive provisions set forth in Rule
101(c)(1) of Regulation M under the Exchange Act are not satisfied with respect to the Shares, it
shall promptly notify the other party and sales of the Shares under this Agreement and any Terms
Agreement shall be suspended until that or other exemptive provisions have been satisfied in the
judgment of each party.
4. Agreements. The Company agrees with each of the Managers that:
(a) During any period when the delivery of a prospectus relating to the Shares is required
(including in circumstances where such requirement may be satisfied pursuant to Rule 172) to be
delivered under the Act in connection with the offering or sale of the Shares, the Company will not
file any amendment of the Registration Statement or supplement in connection with the offering and
sale of the Shares (including the Prospectus Supplement or any Interim Prospectus Supplement) to
the Base Prospectus, the Disclosure Package or the Prospectus, whether pursuant to the Securities
Act, the Exchange Act or otherwise, unless (A) the Company has furnished to the Managers a copy of
such amendment or supplement (including, for the avoidance of doubt, reports or other information
to be filed by the Company under the Exchange Act that would be incorporated by reference into the
Registration Statement and Prospectus) for its review a reasonable period of time prior to filing
(or, in the case of Current Reports on Form 8-K, has used its commercially reasonable efforts to so
furnish copies to the Managers prior to filing), and (B) except for reports or other information
required to be filed by the Company under
the Exchange Act, the Company will not file any such proposed amendment or supplement to which
the Managers reasonably object. The Company has prepared the Prospectus, in a form approved by the
Managers, and shall file such Prospectus, as amended at the Execution Time, with the Commission
pursuant to the applicable paragraph of Rule 424(b) promptly after the Execution Time (but in any
event within the time period described thereby) and will cause any supplement to the Prospectus to
be prepared, in a form approved by the Managers, and will file such supplement with the Commission
pursuant to the applicable paragraph of Rule 424(b) within the time period prescribed thereby and
will notify the Managers of such timely filing. During any period when the delivery of a prospectus
relating to the Shares is required (including in circumstances where such requirement may be
satisfied pursuant to Rule 172) to be delivered under the Act in connection with the offering or
sale of the Shares, the Company will promptly advise the Managers (i) when the Prospectus, and any
supplement thereto, shall have been filed (if required) with the Commission pursuant to Rule
424(b), (ii) when, during any period when
the delivery of a prospectus (whether physically or through compliance with Rule 172 or any
similar rule) is required under the Act in connection with the offering or sale of the Shares, any
amendment to the Registration Statement shall have been filed or become effective (other than a
prospectus supplement relating solely to the offering of securities other than the Shares), (iii)
of any request by the Commission or its staff for any amendment of the Registration Statement, or
for any supplement to the 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 of any
notice objecting to its use or the institution or threatening of any proceeding for that purpose
and (v) of the receipt by the Company of any notification with respect to the suspension of the
qualification of the Shares for sale in any jurisdiction or the institution or threatening of any
proceeding for such purpose. The Company will use its best efforts to prevent the issuance of any
such stop order or the occurrence of any such suspension or objection to the use of the
Registration Statement and, upon such issuance, occurrence or notice of objection, to obtain at the
earliest possible moment the withdrawal of such stop order or relief from such occurrence or
objection, including, if necessary, by filing an amendment to the Registration Statement or a new
registration statement and using its best efforts to have such amendment or new registration
statement declared effective as soon as practicable.
(b) If, at any time on or after an Applicable Time but prior to the related Settlement Date or
Time of Delivery, any event occurs as a result of which the Disclosure Package would include any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein in the light of the circumstances under which they were made or the
circumstances then prevailing not misleading, the Company will (i) notify promptly the relevant
Manager(s) so that any use of the Disclosure Package may cease until it is amended or supplemented;
(ii) amend or supplement the Disclosure Package to correct such statement or omission; and (iii)
supply any amendment or supplement to the relevant Manager(s) in such quantities as the Manager(s)
may reasonably request.
(c) During any period when the delivery of a prospectus relating to the Shares is required
(including in circumstances where such requirement may be satisfied pursuant to Rule 172) to be
delivered under the Act, any event occurs as a result of which 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 in the light of the circumstances under which they were made at such
time not misleading, or if it shall be necessary to amend the Registration Statement, file a new
registration statement or supplement the Prospectus to comply with the Act or the Exchange Act or
the respective rules thereunder, including in connection with use or delivery of the Prospectus,
the Company promptly will (i) notify the Managers of any such event, (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 effect
such compliance, (iii) use its best efforts to have any amendment to the Registration Statement or
new registration statement declared effective as soon as practicable in order to avoid any
disruption in use of the Prospectus and (iv) supply any supplemented Prospectus to the Managers in
such quantities as the Managers may reasonably request.
(d) As soon as practicable, the Company will make generally available to its security holders
and to the Managers an earnings statement or statements of the Company and its subsidiaries which
will satisfy the provisions of Section 11(a) of the Act and Rule 158.
(e) Company will furnish to the Managers and counsel for the Managers, without charge, signed
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 or deemed
to be incorporated by reference therein) and signed copies of all consents and certificates of
experts. The Registration Statement and each amendment thereto furnished to the Managers will be
identical to any electronically transmitted copies thereof filed with the Commission pursuant to
XXXXX, except to the extent permitted by Regulation S-T. The Company will pay the expenses of
printing or other production of all documents relating to the offering.
(f) The Company will furnish to the Managers and counsel for the Managers, without charge, for
so long as delivery of a prospectus by the Managers or dealer may be required by the Act (including
in circumstances where such requirement may be satisfied pursuant to Rule 172), as many copies of
the Prospectus and each Issuer Free Writing Prospectus and any supplement thereto as either Manager
may reasonably request. The Prospectus and any Issuer Free Writing Prospectus and any amendments or
supplements thereto furnished to the Managers will be identical to any electronically transmitted
copies thereof filed with the Commission pursuant to XXXXX, except to the extent permitted by
Regulation S-T. The Company will pay the expenses of printing or other production of all documents
relating to the offering.
(g) The Company will arrange, if necessary, for the qualification of the Shares for sale under
the laws of such jurisdictions as the Managers may designate and will maintain such qualifications
in effect so long as required for the distribution of the Shares; provided that in no event
shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so
qualified or to take any action that would subject it to service of process in suits, other than
those arising out of the offering or sale of the Shares, in any jurisdiction where it is not now so
subject or where it would be subject to taxation as a foreign business.
(h) The Company agrees that, unless it has or shall have obtained the prior written consent of
the relevant Designated Manager, and each Manager agrees with the Company that, unless it has or
shall have obtained, as the case may be, the prior written consent of the Company, it has not made
and will not make any offer relating to the Shares that would constitute an Issuer Free Writing
Prospectus or that would otherwise constitute a “free writing prospectus” (as defined in Rule 405)
required to be filed by the Company with the Commission or retained by the Company under Rule 433;
provided that the prior written consent of the parties hereto shall be deemed to have been
given in respect of the Free Writing Prospectuses included in Schedule I hereto. Any such free
writing prospectus consented to by the Managers or the Company is hereinafter referred to as a
“Permitted Free Writing Prospectus.” The Company agrees that (i) it has treated and will treat, as
the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and
(ii) it has complied and will comply, as the case may be, with the requirements of Rules 164 and
433 applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and
record keeping.
(i) Intentionally Omitted.
(j) The Company will not (i) take, directly or indirectly, any action designed to or that
would constitute or that might reasonably be expected to cause or result in, under the Exchange Act
or otherwise, stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Shares or (ii) sell, bid for, purchase or pay any person
(other than as contemplated by this Agreement or any Terms Agreement) any compensation for
soliciting purchases of the Shares.
(k) The Company will, at any time during the term of this Agreement, as supplemented from time
to time, advise the Managers promptly after it shall have received notice or obtain knowledge
thereof, of any information or fact that would materially alter or affect any opinion, certificate,
letter and other document provided to the Managers pursuant to Section 6 herein.
(l) Upon commencement of the offering of the Shares under this Agreement (if requested by the
Managers) (and upon the recommencement of the offering of the Shares under this Agreement following
the termination of a suspension of sales hereunder), and each time that (i) the Registration
Statement or the Prospectus shall be amended or supplemented (other than (A) an Interim Prospectus
Supplement filed pursuant to Rule 424(b) pursuant to Section 4(r) of this Agreement, (B) a
prospectus supplement relating solely to the offering of securities other than the Shares or (C)
the filing with the Commission of any report under the Exchange Act), (ii) there is filed with the
Commission any annual report on Form 10-K or quarterly report on Form 10-Q, or any document which
contains financial statements or financial information (other than an annual report on Form 10-K or
a quarterly report on Form 10-Q) incorporated by reference into the Prospectus, or any amendment
thereto, or (iii) the Shares are delivered to one or more Designated Managers as principal at the
Time of Delivery pursuant to a Terms Agreement (such commencement date (in the case that the
above-mentioned request is made by a Manager) or recommencement date and each such date referred to
in (i), (ii) and (iii) above, a “Representation Date”), the Company shall furnish or cause
to be furnished to the Managers forthwith a certificate dated and delivered on such Representation
Date, as the case may be, in form satisfactory to the Managers to the effect that the statements
contained in the certificate referred to in Section 6(d) of this Agreement which were last
furnished to the Managers are true and correct at the time of such Representation Date, as though
made at and as of such time (except that such statements shall be deemed to relate to the
Registration Statement 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 said Section
6(d), modified as necessary to relate to the Registration Statement and the Prospectus as amended
and supplemented to the time of delivery of such certificate.
(m) At each Representation Date, the Company shall furnish or cause to be furnished forthwith
to the Managers and to counsel to the Managers a written opinion of Xxxxx Xxxxx LLP, counsel to the
Company (“Company Counsel”), or other counsel reasonably satisfactory to the Managers, and the General Counsel of the Company, each dated and delivered on such
Representation Date, in form and substance satisfactory to the Managers, of the same tenor as the
opinions referred to in Section 6(b) of this Agreement, but modified as necessary to relate to the
Registration Statement and the Prospectus as amended and supplemented to the time of delivery of
such opinion.
(n) At each Representation Date, Shearman & Sterling LLP, counsel to the Managers, shall
deliver a written opinion, dated and delivered on such Representation Date, in form and substance
satisfactory to the Managers, of the same tenor as the opinions referred to in Section 6(c) of this
Agreement but modified as necessary to relate to the Registration Statement and the Prospectus as
amended and supplemented to the time of delivery of such opinion.
(o) At each Representation Date, the Company shall cause KPMG LLP (the “Accountants”),
or other independent accountants satisfactory to the Managers forthwith, to furnish the Managers a
letter, dated and delivered on such Representation Date, in form satisfactory to the Manager, of
the same tenor as the letter referred to in Section 6(e) of this Agreement but modified to relate
to the Registration Statement and the Prospectus, as amended and supplemented to the date of such
letter.
(p) At each Representation Date, and at such other times as may be reasonably requested by a
Manager (which shall be on a weekly basis or otherwise), the Company will conduct a due diligence
session, in form and substance satisfactory to the Managers, which shall include representatives of
the management and the independent accountants of the Company. The Company shall cooperate timely
with any reasonable due diligence request from or review conducted by the Managers or its agents
from time to time in connection with the transactions contemplated by this Agreement, including,
without limitation, providing information and available documents and access to appropriate
corporate officers and the Company’s agents during regular business hours and at the Company’s
principal offices, and timely furnishing or causing to be furnished such certificates, letters and
opinions from the Company, its officers and its agents, as the Managers may reasonably request.
(q) The Company consents to each Manager trading in the Common Stock for such Manager’s own
account and for the account of its clients at the same time as sales of the Shares occur pursuant
to this Agreement or pursuant to a Terms Agreement.
(r) The Company will either (i) disclose in its Annual Reports on Form 10-K and Quarterly
Reports on Form 10-Q, as applicable, with regard to the relevant quarter, the number of the Shares
sold through the Managers pursuant to this Agreement, the Net Proceeds to the Company and the
compensation paid by the Company with respect to such sales of the Shares pursuant to this
Agreement, or (ii) on or prior to the earlier of (A) the date on which the Company shall file a
Quarterly Report on Form 10-Q or an Annual Report on Form 10-K in respect of any fiscal quarter in
which sales of Shares were made by a Manager pursuant to Section 3(a) of this Agreement and (B) the
date on which the Company shall be obligated to file such document referred to in clause (A) in
respect of such quarter (each such date, and any date on which an amendment to any such document is
filed, a “Filing Date”), the Company will file a prospectus supplement with the Commission
under the applicable paragraph of Rule 424(b), which prospectus supplement will set forth, with regard to such quarter, the number of the
Shares sold through a Manager as agent pursuant to Section 3(a) of this Agreement in Continuous
Offerings, the Net Proceeds to the Company and the compensation paid by the Company with respect to
such sales of the Shares pursuant to Section 3(a) of this Agreement and deliver such
number of copies of each such prospectus supplement to the NYSE as are required by such exchange.
(s) If to the knowledge of the Company, the conditions set forth in Section 6(a) or 6(f) shall
not be true and correct on the applicable Settlement Date, the Company will offer to any person who
has agreed to purchase Shares from the Company as the result of an offer to purchase solicited by a
Designated Manager the right to refuse to purchase and pay for such Shares.
(t) Each acceptance by the Company of an offer to purchase the Shares hereunder, and each
execution and delivery by the Company of a Terms Agreement, shall be deemed to be an affirmation to
the Designated Manager, or the Manager(s) party to a Terms Agreement, as the case may be, that the
representations and warranties of the Company contained in or made pursuant to this Agreement are
true and correct as of the date of such acceptance or of such Terms Agreement as though made at and
as of such date, and an undertaking that such representations and warranties will be true and
correct as of the Settlement Date for the Shares relating to such acceptance or as of the Time of
Delivery relating to such sale, as the case may be, as though made at and as of such date (except
that such representations and warranties shall be deemed to relate to the Registration Statement
and the Prospectus as amended and supplemented relating to such Shares).
(u) The Company shall ensure that there are at all times sufficient shares of Common Stock to
provide for the issuance, free of any preemptive rights, out of its authorized but unissued shares
of Common Stock or shares of Common Stock held in treasury, of the maximum aggregate number of
Shares authorized for issuance by the Board pursuant to the terms of this Agreement. The Company
will use its commercially reasonable efforts to cause the Shares to be listed for trading on NYSE
and to maintain such listing.
(v) During any period when the delivery of a prospectus relating to the Shares is required
(including in circumstances where such requirement may be satisfied pursuant to Rule 172) to be
delivered under the Act, the Company will file all documents required to be filed with the
Commission pursuant to the Exchange Act within the time periods required by the Exchange Act and
the regulations thereunder.
(w) The Company shall cooperate with the Managers and use its reasonable efforts to permit the
Shares to be eligible for clearance and settlement through the facilities of DTC.
(x) The Company will apply the Net Proceeds from the sale of the Shares in the manner set
forth in the Disclosure Package and the Prospectus.
5. Payment of Expenses.
(a) The Company agrees to pay the costs and expenses incident to the performance of its
obligations under this Agreement, whether or not the transactions contemplated hereby are
consummated, including without limitation: (i) the preparation, printing or reproduction and filing
with the Commission of the Registration Statement (including financial statements and exhibits
thereto), the Prospectus and each Issuer Free Writing Prospectus, and each amendment or supplement
to any of them; (ii) the printing (or reproduction) and delivery (including postage,
air freight charges and charges for counting and packaging) of such copies of the Registration Statement, the
Prospectus, and each Issuer Free Writing Prospectus, and all amendments or supplements to any of
them, as may, in each case, be reasonably requested for use in connection with the offering and
sale of the Shares; (iii) the preparation, printing, authentication, issuance and delivery of
certificates for the Shares, including any stamp or transfer taxes in connection with the original
issuance and sale of the Shares; (iv) the printing (or reproduction) and delivery of this
Agreement, any blue sky memorandum and all other agreements or documents printed (or reproduced)
and delivered in connection with the offering of the Shares; (v) the registration of the Shares
under the Exchange Act and the listing of the Shares on the NYSE; (vi) any registration or
qualification of the Shares for offer and sale under the securities or blue sky laws of the several
states (including filing fees and the reasonable fees and expenses of counsel for the Managers
relating to such registration and qualification); (vii) any filings required to be made with the
Financial Industry Regulatory Authority, Inc. (“FINRA”) (including filing fees and the
reasonable fees and expenses of counsel for the Manager relating to such filings); (viii) the
transportation and other expenses incurred by or on behalf of Company representatives in connection
with presentations to prospective purchasers of the Shares; (ix) the fees and expenses of the
Company’s accountants and the fees and expenses of counsel (including local and special counsel)
for the Company; and (x) all other costs and expenses incident to the performance by the Company of
its obligations hereunder.
(b) If this Agreement is terminated in accordance with the provisions of Section 8 hereof and
the aggregate offering price of all Shares offered and sold pursuant to this Agreement does not
equal or exceed $40,000,000, the Company shall reimburse each Manager for all of its reasonable and
documented out-of-pocket expenses up to $75,000, including the reasonable fees, disbursements and
expenses of counsel for the Managers incurred by it in connection with the offering contemplated by
this Agreement.
6. Conditions to the Obligations of the Managers. The obligations of the Managers under
this Agreement and any Terms Agreement shall be subject to (i) the accuracy of the representations
and warranties on the part of the Company contained herein as of the Execution Time, each
Representation Date, and as of each Applicable Time, Settlement Date and Time of Delivery, (ii) to
the performance by the Company of its obligations hereunder and (iii) the following additional
conditions:
(a) The Prospectus, and any supplement thereto, required by Rule 424 to be filed with the
Commission have been filed in the manner and within the time period required by Rule 424(b) with
respect to any sale of Shares; each Interim Prospectus Supplement shall have been filed in the
manner required by Rule 424(b) within the time period required by Section 4(r) of this Agreement;
any material required to be filed by the Company pursuant to Rule 433(d) under the Act, shall have
been filed with the Commission within the applicable time periods prescribed
for such filings by Rule 433; and no stop order suspending the effectiveness of the
Registration Statement or any notice objecting to its use shall have been issued and no proceedings
for that purpose shall have been instituted or threatened.
(b) (A) The Company shall have requested and caused Company Counsel, to furnish to the
Managers, on every date specified in Section 4(m) of this Agreement, its opinion, dated as of such
date and addressed to the Managers, in the form attached as Exhibit A.
(B) The Company shall have requested and caused its General Counsel or Deputy General Counsel,
to furnish to the Managers, on every date specified in Section 4(m) of this Agreement, its opinion,
dated as of such date and addressed to the Managers, in the form attached as Exhibit B.
(c) The Managers shall have received from Shearman & Sterling LLP, counsel for the Managers,
on every date specified in Section 4(n) of this Agreement, such opinion or opinions, dated as of
such date and addressed to the Managers, with respect to the issuance and sale of the Shares, the
Registration Statement, the Disclosure Package, the Prospectus (together with any supplement
thereto) and other related matters as the Managers may reasonably require, and the Company shall
have furnished to such counsel such documents as they request for the purpose of enabling them to
pass upon such matters.
(d) The Company shall have furnished or caused to be furnished to the Managers, on every date
specified in Section 4(l) of this Agreement, a certificate of the Company, signed by the Chief
Executive Officer or General Counsel and the principal financial or accounting officer of the
Company, dated as of such date, to the effect that the signers of such certificate have carefully
examined the Registration Statement, the Disclosure Package and the Prospectus and any supplements
or amendments thereto and this Agreement and that:
(i) the representations and warranties of the Company in this Agreement are true
and correct on and as of such date with the same effect as if made on such date and the
Company has complied with all the agreements and satisfied all the conditions on its
part to be performed or satisfied at or prior to such date;
(ii) no stop order suspending the effectiveness of the Registration Statement or
any notice objecting to its use has been issued and no proceedings for that purpose have
been instituted or, to the Company’s knowledge, threatened; and
(iii) since the date of the most recent financial statements included in the
Disclosure Package, there has been no Material Adverse Change, except as set forth in or
contemplated in the Disclosure Package and the Prospectus.
(e) The Company shall have requested and caused the Accountants to have furnished to the
Managers, on every date specified in Section 4(o) hereof and to the extent requested by the
Managers in connection with any offering of the Shares, letters (which may refer to letters
previously delivered to the Managers), dated as of such date, in form and substance satisfactory to
the Managers, which letters shall cover, without limitation, the various financial statements and
disclosures contained or incorporated by reference in the Registration Statement, the
Disclosure Package and the Prospectus and other matters ordinarily covered by accountants’
“comfort letters” to underwriters in connection with registered public offerings as contemplated in
the Statement on Auditing Standards No. 72, as well as confirming that they have performed a review
of any unaudited interim financial information of the Company included or incorporated by reference
in the Registration Statement, the Disclosure Package and the Prospectus in accordance with
Statement on Auditing Standards No. 100.
References to the Prospectus in this paragraph (e) include any supplement thereto at the
date of the letter.
(f) Since the respective dates as of which information is disclosed in the Registration
Statement, the Disclosure Package and the Prospectus, except as otherwise stated therein, there
shall not have been (i) any change or decrease specified in the letter or letters referred to in
paragraph (e) of this Section 6 or (ii) Material Adverse Change, except as set forth in or
contemplated in the Disclosure Package (exclusive of any amendment or supplement thereto) the
effect of which, in any case referred to in clause (i) or (ii) above, is, in the sole judgment of
the Managers, so material and adverse as to make it impractical or inadvisable to proceed with the
offering or delivery of the Shares as contemplated by the Registration Statement (exclusive of any
amendment thereof), the Disclosure Package and the Prospectus (exclusive of any amendment or
supplement thereto).
(g) The Company shall have paid the required Commission filing fees relating to the Shares
within the time period required by Rule 456(b)(1)(i) of the Act without regard to the proviso
therein and otherwise in accordance with Rules 456(b) and 457(r) of the Act and, if applicable,
shall have updated the “Calculation of Registration Fee” table in accordance with Rule
456(b)(1)(ii) either in a post-effective amendment to the Registration Statement or on the cover
page of a prospectus filed pursuant to Rule 424(b).
(h) Intentionally Omitted.
(i) FINRA shall not have raised any objection with respect to the fairness and reasonableness
of the terms and arrangements under this Agreement.
(j) The Shares shall have been listed and admitted and authorized for trading on the NYSE, and
satisfactory evidence of such actions shall have been provided to the Managers.
(k) Prior to each Settlement Date and Time of Delivery, as applicable, the Company shall have
furnished to the Designated Manager such further information, certificates and documents as the
Designated Manager may reasonably request.
If any of the conditions specified in this Section 6 shall not have been fulfilled when and as
provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere
in this Agreement shall not be reasonably satisfactory in form and substance to the Managers and
counsel for the Managers, this Agreement and all obligations of the applicable Manager hereunder
may be canceled at, or at any time prior to, any Settlement Date or Time of Delivery, as
applicable, by such Manager with respect to itself only. Notice of such cancellation
shall be given to the Company in writing or by telephone or facsimile confirmed in writing.
Following any such cancellation by a Manager, this Agreement shall remain in effect as to the other
Manager that has not exercised its right to cancel this Agreement pursuant to this Section
6 and any obligations and rights of the Managers under this Agreement shall be satisfied by or
afforded to only such other Manager.
The documents required to be delivered by this Section 6 shall be delivered at the office of
Shearman & Sterling LLP, counsel for the Managers, at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx,
00000, on each such date as provided in this Agreement.
7. Indemnification and Contribution.
(a) The Company agrees to indemnify and hold harmless each Manager, the directors, officers,
employees and agents of each Manager, any broker-dealer affiliate of a Manager through which Shares are sold and each person who controls each Manager within the meaning
of either the Act or the Exchange Act against any and all losses, claims, damages or liabilities,
to which they or any of them may become subject under the Act, the Exchange Act or other Federal or
state statutory law or regulation, at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of the Company), insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon (i) upon any untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement (or any amendment thereto) or the omission or alleged omission
therefrom of a material fact required to be stated therein or necessary to make the statements
therein not misleading; or (ii) upon any untrue statement or alleged untrue statement of a material
fact contained in any Issuer Free Writing Prospectus or any “issuer information” filed or required
to be filed pursuant to Rule 433(d) under the Act, the Base Prospectus, the Prospectus Supplement
or any Interim Prospectus Supplement (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact, in each case, necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
or (iii) in whole or in part upon any inaccuracy in the representations and warranties of the
Company contained herein; or (iv) in whole or in part upon any failure of the Company to perform
its obligations hereunder or under law; and agrees to reimburse each such indemnified party, for
any legal or other expenses as such expenses are reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the Company will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon any such untrue statement or
alleged untrue statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by a Manager specifically for
inclusion therein. This indemnity agreement will be in addition to any liability that the Company
may otherwise have.
(b) Each Manager, severally and not jointly, agrees to indemnify and hold harmless the
Company, each of its trustees, each of its officers who signs the Registration Statement, and each
person who controls the Company within the meaning of either the Act or the Exchange Act, to the
same extent as the foregoing indemnity from the Company to the Managers, but only with reference to
written information relating to such Manager furnished to the Company by such Manager specifically
for inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability which a Manager may otherwise
have.
(c) Promptly after receipt by an indemnified party under this Section 7 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 7, notify the indemnifying party in writing
of the commencement thereof; but the failure so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party for contribution or otherwise than
under the indemnity agreement contained in paragraph (a) or (b) above or to the extent it is not
prejudiced as a proximate result of such failure. The indemnifying party shall be
entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent
the indemnified party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and expenses of any separate
counsel retained by the indemnified party or parties except as set forth below); provided,
however, that such counsel shall be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable fees, costs and
expenses of such separate counsel if (i) the actual or potential defendants in, or targets of, any
such action include both the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that a conflict may arise between the positions of the indemnifying
party and the indemnified party in conducting the defense of any such action or there may be legal
defenses available to it and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, (ii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of the institution of such action or (iii) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying
party. The indemnifying party under this Section 7 shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party
against any loss, claim, damage, liability or expense by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of counsel as
contemplated by Section 7(c) hereof, the indemnifying party agrees that it shall be liable for any
settlement of any proceeding effected without its written consent if (i) such settlement is entered
into more than 60 days after receipt by such indemnifying party of the aforesaid request and (ii)
such indemnifying party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement; provided, that if it is ultimately determined that an
indemnified party was not entitled to indemnification hereunder, such indemnified party shall be
responsible for repaying or reimbursing such amounts to the indemnifying party. Upon receipt of
notice from the indemnifying party to such indemnified party of such indemnifying party’s election
so to assume the defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this Section 7 for any legal
or other expenses subsequently incurred by such indemnified party in connection with the defense
thereof unless (i) the indemnified party shall have employed separate counsel in accordance with
the proviso to the next preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel (together with local
counsel), approved by the indemnifying party, representing the indemnified parties who are parties
to such action) or (ii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after notice of commencement of the action, in each of which cases the fees and expenses of counsel
shall be at the expense of the indemnifying party. An indemnifying party will not, without the
prior written consent of the indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect
of which indemnification or contribution may be sought hereunder
(whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise
or consent (i) includes an unconditional release of such indemnified party from all liability on
claims that are the subject matter of such action, suit or proceeding 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.
(d) In the event that the indemnity provided in paragraph (a), (b) or (c) of this Section 7 is
unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company
and the Managers agree to contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with investigating or
defending the same) (collectively “Losses”) to which the Company and each Manager may be
subject in such proportion as is appropriate to reflect the relative benefits received by the
Company on the one hand and by such Manager on the other from the offering of the Shares pursuant
to this Agreement; provided, however, that in no case shall a Manager be
responsible for any amount in excess of the underwriting discount or commission, as the case may
be, applicable to the Shares sold by such Manager hereunder. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, the Company and each Manager
severally shall contribute in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company on the one hand and of such Manager on the
other in connection with the statements or omissions which resulted in such Losses as well as any
other relevant equitable considerations. Benefits received by the Company shall be deemed to be
equal to the total net proceeds from the offering (before deducting expenses) received by it, and
benefits received by such Manager shall be deemed to be equal to the total underwriting discounts
and commissions, in each case as determined by this Agreement or any applicable Terms Agreement.
Relative fault shall be determined by reference to, among other things, whether any untrue or any
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information provided by the Company on the one hand or such Manager on the other,
the intent of the parties and their relative knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission. The Company and the Managers agree that it
would not be just and equitable if contribution were determined by pro rata allocation or any other
method of allocation which does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes
of this Section 7, each person who controls a Manager within the meaning of either the Act or the
Exchange Act and each director, officer, employee and agent of a Manager, and any broker-dealer affiliate of a Manager through which Shares are sold shall have the same rights to contribution as such Manager,
and each person who controls the Company within the meaning of either the Act or the Exchange Act,
each officer of the Company who shall have signed the Registration Statement and each trustee of
the Company shall have the same rights to contribution as the Company, subject in each case to the
applicable terms and conditions of this paragraph (d).
8. Termination.
(a) The Company shall have the right, by giving written notice as hereinafter specified, to
terminate the provisions of this Agreement relating to the solicitation of offers to purchase the
Shares in its sole discretion at any time. Any such termination shall be without
liability of any party to any other party except that (i) if Shares have been sold through a Manager for the
Company, then Section 4(t) shall remain in full force and effect with respect to such Manager and
the Company, (ii) with respect to any pending sale, through the Designated Manager for the Company,
the obligations of the Company, including in respect of compensation of the Designated Manager,
shall remain in full force and effect notwithstanding the termination and (iii) the provisions of
Sections 2, 5, 7, 9, 10, 12 and 14 of this Agreement shall remain in full force and effect
notwithstanding such termination.
(b) Each Manager shall have the right, by giving written notice as hereinafter specified, to
terminate the provisions of this Agreement relating to the solicitation of offers to purchase the
Shares in its sole discretion at any time, with respect to such Manager only. Any such termination
shall be without liability of any party to any other party except that the provisions of Sections
2, 5, 7, 9, 10, 12 and 14 of this Agreement shall remain in full force and effect with respect to
such Manager notwithstanding such termination. Following any such termination by a Manager, this
Agreement shall remain in effect as to the other Manager that has not exercised its right to
terminate the provisions of this Agreement pursuant to this Section 8(b) and any obligations and
rights of the Managers under this Agreement shall be satisfied by or afforded to only such other
Manager.
(c) This Agreement shall remain in full force and effect unless terminated pursuant to
Sections 8(a) or (b) above or otherwise by mutual agreement of the parties; provided that
any such termination by mutual agreement shall in all cases be deemed to provide that Sections 2,
5, 7 and 9 shall remain in full force and effect.
(d) Any termination of this Agreement shall be effective on the date specified in such notice
of termination; provided that such termination shall not be effective until the close of
business on the date of receipt of such notice by a Manager or the Company, as the case may be. If
such termination shall occur prior to the Settlement Date or Time of Delivery for any sale of the
Shares, such sale shall settle in accordance with the provisions of Section 3(a)(vii) of this
Agreement.
(e) In the case of any purchase of Shares by a Manager pursuant to a Terms Agreement, the
obligations of such Manager pursuant to such Terms Agreement shall be subject to termination, in
the absolute discretion of such Manager, by notice given to the Company prior to the Time of
Delivery relating to such Shares, if at any time prior to such delivery and payment (i) trading or
quotation in any of the Company’s securities shall have been suspended or limited
by the Commission or by the New York Stock Exchange, or trading in securities generally on
either the Nasdaq Stock Market or the New York Stock Exchange shall have been suspended or limited,
or minimum or maximum prices shall have been generally established on any of such stock exchanges
by the Commission or FINRA; (ii) a general banking moratorium shall have been declared by any of
federal or New York authorities; (iii) there shall have occurred any outbreak or escalation of
national or international hostilities or any crisis or calamity involving the United States, or any
change in the United States or international financial markets, or any substantial change or
development involving a prospective substantial change in United States’ or international
political, financial or economic conditions, as in the sole judgment of such Manager is material
and adverse and makes it impracticable or inadvisable to proceed with the offering or delivery of
the Shares in the manner and on the terms described in the Disclosure
Package and the Prospectus or to enforce contracts for the sale of securities; (iv) in the judgment of such Manager there shall
have occurred any Material Adverse Change; or (v) there shall have occurred a material disruption
in commercial banking or securities settlement or clearance services in the United States.
9. Representations and Indemnities to Survive. The respective agreements, representations,
warranties, indemnities and other statements of the Company or its officers and of each Manager set
forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any
investigation made by a Manager or the Company or any of the officers, directors, employees, agents
or controlling persons referred to in Section 7 hereof, and will survive delivery of and payment
for the Shares.
10. Notices. All communications hereunder will be in writing and effective only on receipt,
and (a) , if sent to Citigroup Global Markets Inc., will be mailed, delivered or telefaxed to the
Citigroup Global Markets Inc. General Counsel (fax no.: (000) 000-0000) and confirmed to the
General Counsel, Citigroup Global Markets Inc., at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000,
Attention: General Counsel, with a copy to: Shearman & Sterling LLP, 000 Xxxxxxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000 , (fax no.: (000) 000-0000), Attention: Xxxxxxx X. Xxxxxxxxx; (b) , if sent to
Xxxxxx Xxxxxxx & Co. Incorporated, will be mailed, delivered or telefaxed to Xxxxxx Xxxxxxx & Co.
Incorporated at 0000 Xxxxxxxx, 00xx Xxxxx, Xxx Xxxx, XX 00000, (fax no.: (000) 000-0000),
Attention: Investment Banking Division, with a copy to: Shearman & Sterling LLP, 000 Xxxxxxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 , (fax no.: (000) 000-0000), Attention: Xxxxxxx X. Xxxxxxxxx; or,
(c) if sent to the Company, will be mailed, delivered or telefaxed to ProLogis, 0000 Xxxxxxx Xxx,
Xxxxxx, Xxxxxxxx 00000, (fax no.: (000) 000-0000), Attention: Xxxxxx X. Xxxxxxx, with a copy to:
Xxxxx Xxxxx LLP, 00 Xxxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx 00000, (fax no.: (000) 000-0000),
Attention: Xxxxxxx X. Xxxxx.
11. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers, directors, employees, agents and
controlling persons referred to in Section 8 hereof, and no other person will have any right or
obligation hereunder.
12. No Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale of
the Shares pursuant to this Agreement is an arm’s-length commercial transaction between the
Company, on the one hand, and the Manager and any affiliate through which it may be acting, on
the other, (b) the Manager is acting solely as sales agent and/or principal in connection with the
purchase and sale of the Company’s securities and not as a fiduciary of the Company and (c) the
Company’s engagement of each Manager in connection with the offering and the process leading up to
the offering is as independent contractors and not in any other capacity. Furthermore, the Company
agrees that it is solely responsible for making its own judgments in connection with the offering
(irrespective of whether a Manager has advised or is currently advising the Company on related or
other matters). The Company agrees that it will not claim that a Manager has rendered advisory
services of any nature or respect, or owe an agency, fiduciary or similar duty to the Company, in
connection with the transactions contemplated by this Agreement or the process leading thereto.
13. Integration. This Agreement and any Terms Agreement supersede all prior agreements and
understandings (whether written or oral) between the Company and the Managers with respect to the
subject matter hereof, including without limitation that certain Equity Distribution Agreement
dated as of June 2, 2009 between the Company and Citigroup Global Markets Inc. (the “Prior
Agreement”). The Company and Citigroup Global Markets Inc. hereby acknowledge and agree that
the Prior Agreement is hereby terminated and that the parties thereto shall have no further rights
or obligations thereunder, except with respect to such provisions that expressly survive
termination of the Prior Agreement under the terms thereof.
14. Applicable Law. This Agreement and any Terms Agreement will be governed by and
construed in accordance with the laws of the State of New York applicable to contracts made and to
be performed within the State of New York.
15. Waiver of Jury Trial. The Company hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out
of or relating to this Agreement, any Terms Agreement or the transactions contemplated hereby or
thereby.
16. Counterparts. This Agreement and any Terms Agreement may be signed in one or more
counterparts, each of which shall constitute an original and all of which together shall constitute
one and the same agreement.
17. Headings. The section headings used in this Agreement and any Terms Agreement are for
convenience only and shall not affect the construction hereof.
18. Definitions. The terms that follow, when used in this Agreement and any Terms
Agreement, shall have the meanings indicated.
“Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations
of the Commission promulgated thereunder.
“Applicable Time” shall mean, with respect to any Shares, the time of sale of such
Shares pursuant to this Agreement or any relevant Terms Agreement.
“Base Prospectus” shall mean the base prospectus referred to in Section 2(a) above
contained in the Registration Statement at the Execution Time.
“Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday
or a day on which banking institutions or trust companies are authorized or obligated by law to
close in New York City.
“Commission” shall mean the Securities and Exchange Commission.
“Designated Manager” shall mean the Manager the Company designates from time to time
as sales agent to sell Shares pursuant to the terms of this Agreement.
“Disclosure Package” shall mean (i) the Base Prospectus, (ii) the Prospectus
Supplement,
(iii) the most recently filed Interim Prospectus Supplement, if any, (iv) the Issuer
Free Writing Prospectuses, if any, identified in Schedule I hereto, (v) the public offering price
of Shares sold at the relevant Applicable Time as specified in a Terms Agreement and (vi) any other
Free Writing Prospectus that the parties hereto shall hereafter expressly agree in writing to treat
as part of the Disclosure Package.
“Effective Date” shall mean each date and time that the Registration Statement and any
post-effective amendment or amendments thereto became or becomes effective.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder.
“Execution Time” shall mean the date and time that this Agreement is executed and
delivered by the parties hereto.
“Free Writing Prospectus” shall mean a free writing prospectus, as defined in Rule
405.
“Interim Prospectus Supplement” shall mean the prospectus supplement relating to the
Shares prepared and filed pursuant to Rule 424(b) from time to time as provided by Section 4(r) of
this Agreement.
“Issuer Free Writing Prospectus” shall mean an issuer free writing prospectus, as
defined in Rule 433.
“Prospectus” shall mean the Base Prospectus, as supplemented by the Prospectus
Supplement and the most recently filed Interim Prospectus Supplement (if any).
“Prospectus Supplement” shall mean the most recent prospectus supplement relating to
the Shares that was first filed pursuant to Rule 424(b) at or prior to the Execution Time.
“Registration Statement” shall mean the registration statement referred to in Section
2(a) above, including exhibits and financial statements and any prospectus supplement relating to
the Shares that is filed with the Commission pursuant to Rule 424(b) and deemed part of such
registration statement pursuant to Rule 430B, as amended on each Effective Date and, in the event
any post-effective amendment thereto becomes effective, shall also mean such registration statement
as so amended.
“Rule 158”, “Rule 163”, “Rule 164”, “Rule 172”, “Rule
405”, “Rule 415”, “Rule 424”, “Rule 430B” and “Rule 433” refer
to such rules under the Act.
“Well-Known Seasoned Issuer” shall mean a well-known seasoned issuer, as defined in
Rule 405.
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a binding agreement among the Company and the Managers.
| Very truly yours, PROLOGIS |
||||
| By: | /s/ Xxxxxxx X. Xxxxxxxx | |||
| Name: | Xxxxxxx X. Xxxxxxxx | |||
| Title: | Chief Financial Officer | |||
| The foregoing Agreement is hereby confirmed and accepted as of the date first written above. CITIGROUP GLOBAL MARKETS INC. |
||||
| By: | /s/ Xxxxxxx Xxxxxxxxxxx | |||
| Name: | Xxxxxxx Xxxxxxxxxxx | |||
| Title: | Managing Director | |||
| XXXXXX XXXXXXX & CO. INCORPORATED |
||||
| By: | /s/ Xxxxx Xxxxxxx | |||
| Name: | Xxxxx Xxxxxxx | |||
| Title: | Executive Director | |||
ProLogis — Equity Distribution Agreement
SCHEDULE I
Schedule of Free Writing Prospectuses included in the Disclosure Package
[None]
Sch. I-1
SCHEDULE II
Significant Subsidiaries
Palmtree Acquisition Corporation
PLD International Incorporated
ProLogis Japan Incorporated
Catellus Operating Limited Partnership
Catellus Finance 1, L.L.C.
PLD International Incorporated
ProLogis Japan Incorporated
Catellus Operating Limited Partnership
Catellus Finance 1, L.L.C.
Sch. I-1
| [Form of Terms Agreement] | ANNEX I |
[ISSUER NAME]
Common Stock
TERMS AGREEMENT
Common Stock
TERMS AGREEMENT
, 20___
[Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx, 00000]
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx, 00000]
[or]
[Xxxxxx Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000]
0000 Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000]
Dear Sirs:
[Name] (the “Company”) proposes, subject to the terms and conditions stated herein and
in the Equity Distribution Agreement, dated [date], 20___(the “Equity Distribution
Agreement”), among the Company, Citigroup Global Markets Inc. and Xxxxxx Xxxxxxx & Co.
Incorporated, to issue and sell to [Citigroup Global Markets Inc.][Xxxxxx Xxxxxxx & Co.
Incorporated] the securities specified in the Schedule I hereto (the “Purchased Shares”) [,
and solely for the purpose of covering over-allotments, to grant to [Citigroup Global Markets Inc.]
[Xxxxxx Xxxxxxx & Co. Incorporated] the option to purchase the additional securities specified in
the Schedule I hereto (the “Additional Shares”)]. [Include only if the Designated Manager
has an over-allotment option]
[[Citigroup Global Markets Inc.] [Xxxxxx Xxxxxxx & Co. Incorporated] shall have the right to
purchase from the Company all or a portion of the Additional Shares as may be necessary to cover
over-allotments made in connection with the offering of the Purchased Shares, at the same purchase
price per share to be paid by [Citigroup Global Markets Inc.] [Xxxxxx Xxxxxxx & Co. Incorporated]
to the Company for the Purchased Shares. This option may be exercised by [Citigroup Global Markets
Inc.] [Xxxxxx Xxxxxxx & Co. Incorporated] at any time (but not more than once) on or before the
thirtieth day following the date hereof, by written notice to the Company. Such notice shall set
forth the aggregate number of shares of Additional Shares as to which the option is being
exercised, and the date and time when the Additional Shares are to be delivered (such date and time
being herein referred to as the “Option Closing Date”); provided, however,
that the Option Closing Date shall not be earlier than the Time of Delivery (as set forth in the
Schedule I hereto) nor earlier than the second business day after the date on which the option
shall have been exercised nor later than the fifth business day after the date on which the option
shall have been exercised. Payment of the purchase price for the Additional Shares shall
Annex I-1
be made at the Option Closing Date in the same manner and at the same office as the payment for the
Purchased Shares.] [Include only if the Designated Manager Inc. has an over-allotment option]
Each of the provisions of the Equity Distribution Agreement not specifically related to the
solicitation by [Citigroup Global Markets Inc.] [Xxxxxx Xxxxxxx & Co. Incorporated], as agent of
the Company, of offers to purchase securities is incorporated herein by reference in its entirety,
and shall be deemed to be part of this Terms Agreement to the same extent as if such provisions had
been set forth in full herein. Each of the representations and warranties set forth therein shall
be deemed to have been made at and as of the date of this Terms Agreement [and] [,] the Time of
Delivery [and any Option Closing Date] [Include only if the Designated Manager has an
over-allotment option], except that each representation and warranty in Section 2 of the Equity
Distribution Agreement which makes reference to the Prospectus (as therein defined) shall be deemed
to be a representation and warranty as of the date of the Equity Distribution Agreement in relation
to the Prospectus, and also a representation and warranty as of the date of this Terms Agreement
[and] [,] the Time of Delivery [and any Option Closing Date] [Include only if the Designated
Manager has an over-allotment option] in relation to the Prospectus as amended and supplemented to
relate to the Purchased Shares.
An amendment to the Registration Statement (as defined in the Equity Distribution Agreement),
or a supplement to the Prospectus, as the case may be, relating to the Purchased Shares [and the
Additional Shares] [Include only if the Designated Manager has an over-allotment option], in the
form heretofore delivered to the Manager is now proposed to be filed with the Securities and
Exchange Commission.
Subject to the terms and conditions set forth herein and in the Equity Distribution Agreement
which are incorporated herein by reference, the Company agrees to issue and sell to [Citigroup
Global Markets Inc.] [Xxxxxx Xxxxxxx & Co. Incorporated] and the latter agrees to purchase from the
Company the number of shares of the Purchased Shares at the time and place and at the purchase
price set forth in the Schedule I hereto.
Annex I-2
If the foregoing is in accordance with your understanding, please sign and return to us a
counterpart hereof, whereupon this Terms Agreement, including those provisions of the Equity
Distribution Agreement incorporated herein by reference, shall constitute a binding agreement
between the Managers and the Company.
| PROLOGIS |
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| By: | ||||
| Name: | ||||
| Title: | ||||
| ACCEPTED as of the date first written above. [Designated Manager] |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Annex I-3
| [Form of Terms Agreement] | Schedule I to the Terms Agreement |
Title of Purchased Shares [and Additional Shares]:
Common Stock, par value $[___] per share
Number of Shares of Purchased Shares:
[Number of Shares of Additional Shares:]
[Price to Public:]
Purchase Price by [Citigroup Global Markets Inc.] [Xxxxxx Xxxxxxx & Co. Incorporated]:
Method of and Specified Funds for Payment of Purchase Price:
By wire transfer to a bank account specified by the Company in same day funds.
Method of Delivery:
Free delivery of the Shares to the Manager’s account at The Depository Trust Company in return for
payment of the purchase price.
Time of Delivery:
Closing Location:
Documents to be Delivered:
The following documents referred to in the Equity Distribution Agreement shall be delivered as a
condition to the closing at the Time of Delivery [and on any Option Closing Date]:
(1) The opinion referred to in Section 4(l).
(2) The opinion referred to in Section 4(m).
(3) The accountants’ letter referred to in Section 4(n).
(4) The officers’ certificate referred to in Section 4(k).
(5) Such other documents as the Manager shall reasonably request.
Annex I-4
EXHIBIT A
Form of Opinion of Company Counsel to be delivered pursuant to Section 6(b)(A) of the
Equity Distribution Agreement
Equity Distribution Agreement
References to the Prospectus in this Exhibit A shall also include any supplements thereto at
the Settlement Date.
(i) The Company has been duly organized and is validly existing as a real estate investment
trust in good standing under the laws of the State of Maryland and has the trust power and
authority to own, lease and operate its properties and to conduct its business as described in [the
Disclosure Package and] the Prospectus and to enter into and perform its obligations under this
Agreement and any applicable Terms Agreement. The Company is duly qualified to transact business
and is in good standing in each jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business, except for such
jurisdictions where the failure to so qualify or to be in good standing would not, individually or
in the aggregate, result in a Material Adverse Change.
(ii) This Agreement and any applicable Terms Agreement have been duly authorized, executed and
delivered by the Company.
(iii) The Shares have been duly and validly authorized, and, when issued and delivered to and
paid for [by the Designated Manager] pursuant to this Agreement and any Terms Agreement, will be
fully paid and non-assessable, and the issuance of the Shares will not be subject to any preemptive
or similar rights under the Company’s charter or bylaws or under Maryland law.
(iv) The Registration Statement became effective upon filing with the Commission pursuant to
Rule 462(e) under the Securities Act. To the best knowledge of such counsel, no stop order
suspending the effectiveness of the Registration Statement has been issued under the Securities Act
and no proceedings for such purpose have been instituted or are pending or are contemplated or
threatened by the Commission. Any required filing of the Base Prospectus and the Prospectus or any
supplements thereto pursuant to Rule 424(b) under the Securities Act has been made in the manner
and within the time period required by such Rule 424(b).
(v) The Registration Statement, the Prospectus, including any document incorporated by
reference therein, and each amendment or supplement to the Registration Statement and the
Prospectus, including any document incorporated by reference therein (other than the financial
statements and supporting schedules included or incorporated by reference therein or in exhibits to
or excluded from the Registration Statement and other than the Form T-1, as to which no opinion
need be rendered), when they became effective or were filed with the Commission, as the case may
be, complied as to form in all material respects with the applicable requirements of
Exhibit A-1
the Act and the Exchange Act.
(vi) The Shares conform in all material respects to the description thereof contained in [the
Disclosure Package and] the Prospectus.
(vii) The statements (A) in the Base Prospectus under the captions “Description of Common
Shares” and “Federal Income Tax Considerations,” (B) incorporated by reference in the Prospectus
from Item 3 of Part I of the Company’s Annual Report on Form 10-K, and (C) in the Item 15 of the
Registration Statement, in each case insofar as such statements constitute a summary of the legal
matters, documents or proceedings referred to therein has been reviewed by such counsel and fairly
present and summarize, in all material respects, the matters referred to therein.
(viii) No consent, approval, authorization or other order of, or registration or filing with,
any court or other governmental authority or agency, is required for the Company’s execution,
delivery and performance of this Agreement and any applicable Terms Agreement and consummation of
the transactions contemplated hereby and thereby and by [the Disclosure Package and] the Prospectus
(including the issuance and delivery of the Shares), except such as have been obtained or made by
the Company and are in full force and effect under the Securities Act, applicable state securities
or blue sky laws of any jurisdiction in connection with [the purchase and] the distribution of the
Shares by the Managers and from FINRA and consents the failure of which to obtain would not result
in a Material Adverse Change or have a material adverse effect on the transactions contemplated by
this Agreement or any applicable Terms Agreement.
(ix) The execution and delivery of each of the Agreement and any applicable Terms Agreement by
the Company, and the issuance, sale and delivery of the Shares by the Company and the performance
by the Company of its obligations hereunder and thereunder (other than performance by the Company
of its obligations under the indemnification section of this Agreement and any applicable Terms
Agreement, as to which no opinion need be rendered) (A) will not result in any violation of the
provisions of the declaration of trust (or charter or bylaws or other similar constitutive
documents) of the Company or any Significant Subsidiary incorporated or organized in a jurisdiction
located in the United States (each, a “U.S. Significant Subsidiary”); (B) will not
constitute a breach of, or Default under, or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company or any of the U.S. Significant
Subsidiaries pursuant to (x) the Global Senior Credit Agreement (the “Global Senior Credit
Agreement”), dated as of October 6, 2005, as amended, by and among the Company, affiliates
thereof, various lenders and Bank of America, N.A., as Global Administrative Agent (other than with
respect to compliance by the Company or any subsidiary with any financial covenants as to which no
opinion need be rendered), or (z) to the best knowledge of such counsel, any other material
Existing Instrument; or (C) to the best knowledge of such counsel, will not result in any violation
of any law, administrative regulation or administrative or court decree applicable to the Company
or any U.S. Significant Subsidiary, other than in the case of clauses (B) and (C), such Defaults
and violations as would not, individually or in the aggregate, result in a Material Adverse Change.
Exhibit A-2
(x) The Company is not, and after receipt of payment for the Shares and the application of the
proceeds as described in [the Disclosure Package and] the Prospectus under “Use of Proceeds”, will
not be, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended.
(xi) The Company has qualified to be taxed as a real estate investment trust pursuant to the
Internal Revenue Code for its taxable years ended December 31, 2007, 2008 and 2009 and the
Company’s present organization, ownership, the Company’s present and proposed method of operation,
assets and income are such that the Company is in a position under present law to so qualify for
the fiscal year ended December 31, 2010 and in the future.
(xii) The investments of the Company described in [the Disclosure Package and] the Prospectus
are permitted investments under the declaration of trust of the Company.
In addition, such counsel shall state that they have examined various documents and records
and participated in conferences with the Managers, officers and other representatives of the
Company, representatives of the independent public or certified public accountants for the Company
and with representatives of the Managers at which the contents of the Registration Statement[, the
Disclosure Package and] the Prospectus, and any supplements or amendments thereto, and related
matters were discussed and, although such counsel is not passing upon and does not assume any
responsibility for the accuracy, completeness or fairness of the statements contained in the
Registration Statement[, the Disclosure Package] or the Prospectus, including the documents
incorporated by reference therein (other than as specified above), and any supplements or
amendments thereto, on the basis of the foregoing, no facts came to their attention that caused
them to believe that (i) the Registration Statement or any amendments thereto, at the most recent
deemed effective date pursuant to Rule 430B(f)(2) under the Securities Act prior hereto, contained
an untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; [or] (ii) the Prospectus, as of
its date or at the relevant Representation Date, contained an untrue statement of a material fact
or omitted to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading[; or (iii) the Disclosure Package,
as amended or supplemented at the Execution Time or at any applicable date related to the delivery
of such opinion, contained an untrue statement of a material fact or omitted to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading]* (except for the Form T-1 and the financial statements,
supporting schedules and other financial or statistical data included or incorporated by reference
therein or derived or omitted therefrom as to which such counsel need express no belief).
In rendering such opinion, such counsel may rely (A) as to matters involving the application
of laws of any jurisdiction other than the General Corporation Law of the State of Delaware, the
laws regarding real estate investment trusts of the State of Maryland or the federal law of the
United States, to the extent they deem proper and specified in such opinion, upon the opinion
(which shall be dated the date of such counsel’s opinion, shall be satisfactory in form and
substance to Managers, shall expressly state that the Managers may rely on such opinion as if it
were addressed to them and shall be furnished to the Managers) of other counsel of good standing
whom they believe to be reliable and who are satisfactory to counsel for the Managers;
Exhibit A-3
provided, however, that such counsel shall further state that they believe that they and the
Managers are justified in relying upon such opinion of other counsel, (B) upon the opinion of
general counsel of the Company referred to in Section 6(b)(B) of the Agreement, and (C) as to
matters of fact, to the extent they deem proper, on certificates of responsible officers of the
Company and public officials and on the representations of the Company as provided in the
Agreement. In rendering the opinions contained in paragraphs (xi) and (xii), such opinion may be
based upon (a) the Internal Revenue Code and the rules and regulations promulgated thereunder and
the interpretations of the Internal Revenue Code and such regulations by the courts and the
Internal Revenue Service, all as they are in effect and exist at the time of the opinion, (b)
Maryland law existing and applicable to the Company, (c) facts and other matters set forth in the
Prospectus, (d) the provisions of the Amended Restated Declaration of Trust of the Company, the
agreements relating to properties owned by the Company and (e) certain statements and
representations as to factual matters made by the Company to such counsel provided that such
statements and representations are also set forth in a certificate to the Managers.
| * | Bracketed language need only be included if the “Disclosure Package” at the time such opinion is rendered contains documents in addition to those covered by the term “Prospectus” as defined in this Agreement, or if the opinion is being delivered at a Time of Delivery relating to the delivery of Shares to a Designated Manager pursuant to a Terms Agreement. |
Exhibit A-4
EXHIBIT B
Form of Opinion of the General Counsel of the Company to be delivered pursuant to
Section 6(b)(B) of the Equity Distribution Agreement
Section 6(b)(B) of the Equity Distribution Agreement
(i) Each of the U.S. Significant Subsidiaries of the Company has been duly incorporated or
organized, as the case may be, and is validly existing as a corporation, trust or partnership in
good standing under the laws of the jurisdiction of its incorporation or organization, as the case
may be, and has the power (corporate or other) and authority to own, lease and operate its
properties and to conduct its business as described in the Registration Statement [and Disclosure
Package]. Each U.S. Significant Subsidiary is duly qualified as a foreign corporation, trust,
partnership or limited liability company to transact business and (except as to any general
partnership) is in good standing in each jurisdiction in which such qualification is required,
whether by reason of the ownership or leasing of property or the conduct of business, except for
such jurisdictions where the failure to so qualify or to be in good standing would not,
individually or in the aggregate, result in a Material Adverse Change.
(ii) The outstanding shares of Common Stock of the Company have been duly authorized and are
validly issued, fully paid and non-assessable.
(iii) All of the issued and outstanding capital stock and other equity interests of each U.S.
Significant Subsidiary have been duly authorized and validly issued, is fully paid and (except for
general partnership interests) nonassessable; all shares of outstanding capital stock and other
equity interests of each U.S. Significant Subsidiary held by the Company, directly or through
subsidiaries, are owned free and clear of any security interest, mortgage, pledge, lien,
encumbrance or claim, except for such security interests, mortgages, pledges, liens, encumbrances
and claims as would not, individually or in the aggregate, result in a Material Adverse Change.
(iv) To the best knowledge of such counsel, there are no legal or governmental actions, suits
or proceedings pending or threatened which are required to be disclosed in the Registration
Statement [,] [or] the Prospectus [or the Disclosure Package], other than those disclosed therein.
(v) To the best knowledge of such counsel, there are no Existing Instruments required to be
described or referred to in the Registration Statement, or to be filed as exhibits thereto, other
than those described or referred to therein or filed or incorporated by reference as exhibits
thereto; and the descriptions thereof and references thereto are correct in all material respects.
(vi) To the best knowledge of such counsel, neither the Company nor any subsidiary formed in
the United States is in (A) violation of its declaration of trust (or charter or by-laws or other
similar constitutive documents) or (B) violation of any law, administrative regulation or
administrative or court decree applicable to the Company or any U.S. Significant Subsidiary or (C)
is in Default in the performance or observance of any obligation, agreement, covenant or
Exhibit B-1
condition contained in any material Existing Instrument, except in the case of (B) and (C) above,
for such violations or Defaults as would not, individually or in the aggregate, result in a
Material Adverse Change.
In rendering such opinion, such counsel may rely (A) as to matters involving the application
of laws of any jurisdiction other than the State of Maryland or the Federal laws of the United
States, to the extent they deem proper and specified in such opinion, upon the opinion of other
counsel of good standing whom they believe to be reliable and who are satisfactory to counsel for
the Managers and (B) as to matters of fact, to the extent they deem proper, on certificates of
responsible officers of the Company and public officials. References to the Prospectus in this
paragraph (b) shall also include any supplements thereto at the Settlement Date.
| * | Bracketed language need only be included if the “Disclosure Package” at the time such opinion is rendered contains documents in addition to those covered by the term “Prospectus” as defined in this Agreement, or if the opinion is being delivered at a Time of Delivery relating to the delivery of Shares to a Designated Manager pursuant to a Terms Agreement. |
Exhibit B-2
