Attached files
file | filename |
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8-K - FORM 8-K - SITE Centers Corp. | l42060e8vk.htm |
EX-1.4 - EX-1.4 - SITE Centers Corp. | l42060exv1w4.htm |
EX-5.2 - EX-5.2 - SITE Centers Corp. | l42060exv5w2.htm |
EX-8.1 - EX-8.1 - SITE Centers Corp. | l42060exv8w1.htm |
EX-1.3 - EX-1.3 - SITE Centers Corp. | l42060exv1w3.htm |
EX-1.2 - EX-1.2 - SITE Centers Corp. | l42060exv1w2.htm |
EX-4.1 - EX-4.1 - SITE Centers Corp. | l42060exv4w1.htm |
EX-5.1 - EX-5.1 - SITE Centers Corp. | l42060exv5w1.htm |
Exhibit 1.1
DEVELOPERS DIVERSIFIED REALTY CORPORATION
(an Ohio corporation)
(an Ohio corporation)
9,500,000 Common Shares
UNDERWRITING AGREEMENT
March 1, 2011
Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
388 Greenwich Street
New York, New York 10013
Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036
1585 Broadway
New York, New York 10036
Ladies and Gentlemen:
Developers Diversified Realty Corporation, an Ohio corporation (the Company), and Citigroup
Global Markets Inc. as agent for one of its affiliates (Citigroup) and Morgan Stanley & Co.
Incorporated as agent for one of its affiliates (Morgan Stanley and, together with Citigroup, the
Forward Sellers), at the Companys request in connection with the letter agreement dated the date
hereof between the Company and CitiBank, N.A., acting through Citigroup as agent (the Citi Forward
Agreement) and the letter agreement dated the date hereof between the Company and Morgan Stanley &
Co. International plc, acting through Morgan Stanley as agent (the MS Forward Agreement and,
together with the Citi Forward Agreement, the Forward Agreements), each relating to the forward
sale by the Company, of a number of common shares, par value $0.10 per share, of the Company
(Common Shares) equal to the number of Common Shares to be borrowed and sold by each of the
Forward Sellers pursuant to this Agreement, confirm their respective agreements with Citigroup and
Morgan Stanley (together, the Underwriters) with respect to the sale by the Forward Sellers and
the purchase by the Underwriters, acting severally and not jointly, of the respective numbers of
Common Shares set forth in Schedules I-A and I-B hereto. CitiBank, N.A. and Morgan
Stanley & Co. International plc are hereinafter referred to as the Forward Counterparties. The
9,500,000 Common Shares to be borrowed and sold by the Forward Sellers to the Underwriters are
referred to as the Underwritten Securities, subject to Section 3(b) hereof. The Underwritten
Securities to be purchased by the Underwriters and any Common Shares to be issued and sold by the
Company to the Underwriter pursuant to Section 13 hereof are hereinafter called, collectively, the
Securities.
1. Representations and Warranties. The Company represents and warrants to each
Underwriter, each Forward Seller and each Forward Counterparty, as of the date hereof, at the
Applicable Time referred to in Section 1(c) hereof and as of the Closing Date (as hereinafter
defined) that:
(a) The Company has filed with the Securities and Exchange Commission (the Commission) an
automatic shelf registration statement on Form S-3 (No. 333-162451), including the related
preliminary prospectus or prospectuses. Such registration statement registers the issuance, if
any, and sale by the Company of the Securities as contemplated by this Agreement under the
Securities Act of 1933, as amended (the 1933 Act). Promptly after execution and delivery of this
Agreement, the Company will prepare and file a prospectus supplement relating to the offering of
the Securities (the Prospectus Supplement) in accordance with the provisions of Rule 430B (Rule
430B) of the rules and regulations of the Commission under the 1933 Act (the 1933 Act
Regulations) and paragraph (b) of Rule 424 (Rule 424(b)) of the 1933 Act Regulations under the
1933 Act. Any information included in such Prospectus Supplement that was omitted from such
registration statement at the time it became effective but that is deemed to be part of and
included in such registration statement pursuant to Rule 430B is referred to as Rule 430B
Information. The prospectus that is part of such registration statement and each prospectus
supplement used in connection with the offering of the Securities that omitted Rule 430B
Information is herein called a preliminary prospectus. Such registration statement, at any given
time, including the amendments thereto to such time, the exhibits and any schedules thereto at such
time, the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the
1933 Act at such time and the documents otherwise deemed to be a part thereof or included therein
by the 1933 Act Regulations, is herein called the Registration Statement. The Registration
Statement at the time it originally became effective is herein called the Original Registration
Statement. The final prospectus and the Prospectus Supplement in the form first furnished to the
Underwriters for use in connection with the offering of the Securities, including the documents
incorporated by reference therein pursuant to Item 12 of Form S-3 under the 1933 Act at the time of
the execution of this Agreement is herein called the Prospectus.
All references in this Agreement to financial statements and schedules and other information
which is contained, included or stated in the Registration Statement, any preliminary
prospectus or the Prospectus (and all other references of like import) shall be deemed to mean and
include all such financial statements and schedules and other information which is or is deemed to
be incorporated by reference in or otherwise deemed by the 1933 Act Regulations to be a part of or
included in the Registration Statement, any preliminary prospectus or the Prospectus, as the case
may be, as of any specified date; and all references in this Agreement to amendments or supplements
to the Registration Statement, any preliminary prospectus or the Prospectus shall be deemed to mean
and include, without limitation, the filing of any document under the Securities Exchange Act of
1934, as amended (the 1934 Act), which is or is deemed to be incorporated by reference in or
otherwise deemed by the 1933 Act Regulations to be a part of or included in the Registration
Statement, such preliminary prospectus or the Prospectus, as the case may be, as of any specified
date.
(b) (A) At the time of filing the Original Registration Statement, (B) at the time of the most
recent amendment thereto for the purposes of complying with Section 10(a)(3) of the 1933 Act
(whether such amendment was by post-effective amendment, incorporated report filed pursuant to
Section 13 or 15(d) of the 1934 Act or form of prospectus), (C) at the time the Company or any
person acting on its behalf (within the meaning, for this clause only, of Rule 163(c) of the 1933
Act Regulations) made any offer relating to the Securities in reliance on the exemption of Rule 163
of the 1933 Act Regulations, and (D) at the date hereof, the Company
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was a well-known seasoned issuer as defined in Rule 405 of the 1933 Act Regulations (Rule
405). The Registration Statement is an automatic shelf registration statement, as defined in
Rule 405, that initially became effective within three years of the date hereof, and the
Securities, since their registration on the Registration Statement, have been and remain eligible
for registration by the Company on a Rule 405 automatic shelf registration statement. The
Company has not received from the Commission any notice pursuant to Rule 401(g)(2) under the 1933
Act objecting to the use of the automatic shelf registration statement form.
At the time of filing the Original Registration Statement, at the earliest time thereafter
that the Company or another offering participant made a bona fide offer (within the meaning of Rule
164(h)(2) of the 1933 Act Regulations) of the Securities and at the date hereof, the Company was
not and is not an ineligible issuer, as defined in Rule 405.
(c) The Original Registration Statement became effective upon filing under Rule 462(e) of the
1933 Act Regulations (Rule 462(e)) on October 13, 2009, and any post-effective amendment thereto
also became effective upon filing under Rule 462(e). No stop order suspending the effectiveness of
the Registration Statement has been issued under the 1933 Act and no proceedings for that purpose
have been instituted, are pending or, to the knowledge of the Company, have been threatened, and
any request on the part of the Commission for additional information has been complied with.
If applicable, any offer that is a written communication relating to the Securities made prior
to the filing of the Original Registration Statement by the Company or any person acting on its
behalf (within the meaning, for this paragraph only, of Rule 163(c) of the 1933 Act Regulations)
has been filed with the Commission in accordance with Rule 163 of the 1933 Act Regulations (Rule
163) and otherwise complied with the requirements of Rule 163, including without limitation the
legending requirement, to qualify such offer for the exemption from Section 5(c) of the 1933 Act
provided by Rule 163.
At the respective times the Original Registration Statement and each amendment thereto
(including amendments filed for the purpose of complying with Section 10(a)(3) of the 1933 Act)
became effective, at each deemed effective date with respect to the Underwriters pursuant to Rule
430B(f)(2) of the 1933 Act Regulations, at the date hereof, at the Applicable Time and at the
Closing Date, the Registration Statement, as amended as of such date, complied, complies and will
comply in all material respects with the requirements of the 1933 Act and the 1933 Act Regulations,
and the Registration Statement, as amended as of such date, did not, does not and will not contain
an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading.
Neither the Prospectus nor any amendments or supplements thereto, at the time the Prospectus
or any such amendment or supplement was issued, at the date hereof, at the Applicable Time, at the
time of any filing pursuant to Rule 424(b) of the 1933 Act Regulations and at the Closing Date,
included, includes or will include an untrue statement of a material fact or omitted, omits or will
omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.
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Any preliminary prospectus (including the prospectus filed as part of the Registration
Statement or any amendment thereto) complied when so filed in all material respects with the 1933
Act and the 1933 Act Regulations and any such preliminary prospectus and the Prospectus delivered
or made available to the Underwriters for use in connection with the offering of the Securities as
contemplated by this Agreement was and will be, at the time of such delivery, identical to the
electronically transmitted copies thereof filed with the Commission pursuant to its Electronic Data
Gathering, Analysis and Retrieval system (EDGAR), except to the extent permitted by Regulation
S-T.
As of the Applicable Time, neither (i) the Issuer General Use Free Writing Prospectus(es) (as
defined below) issued at or prior to the Applicable Time, the Statutory Prospectus (as defined
below) and the information to be conveyed by the Underwriters to purchasers of the Securities at
the Applicable Time as set forth in Schedule II hereto, all considered together
(collectively, the General Disclosure Package), nor (ii) any individual Issuer Limited Use Free
Writing Prospectus, when considered together with the General Disclosure Package, included any
untrue statement of a material fact or omitted 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 representations and warranties in this Section 1(c) shall not apply to statements in or
omissions from the Registration Statement or any post-effective amendment thereto or the Prospectus
or any amendments or supplements thereto, or the General Disclosure Package made in reliance upon
and in conformity with information furnished to the Company in writing by any Underwriter, any
Forward Seller or any Forward Counterparty expressly for use in the Registration Statement or any
post-effective amendment thereto, or the Prospectus, or any amendments or supplements thereto, or
the General Disclosure Package.
As used in this subsection and elsewhere in this Agreement:
Applicable Time means 8:30 a.m. (New York City time) on March 2, 2011 or such other time as
agreed by the Company and the Underwriters.
Issuer Free Writing Prospectus means any issuer free writing prospectus, as defined in
Rule 433 of the 1933 Act Regulations (Rule 433), relating to the Securities that (i) is required
to be filed with the Commission by the Company, (ii) is a road show that is a written
communication within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with
the Commission, or (iii) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a
description of the Securities or of the offering that does not reflect the final terms, in each
case in the form filed or required to be filed with the Commission or, if not required to be filed,
in the form retained in the Companys records pursuant to Rule 433(g).
Issuer General Use Free Writing Prospectus means any Issuer Free Writing Prospectus that is
intended for general distribution to prospective investors, as evidenced by its being specified in
Schedule II hereto.
Issuer Limited Use Free Writing Prospectus means any Issuer Free Writing Prospectus that is
not an Issuer General Use Free Writing Prospectus.
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Statutory Prospectus means the prospectus and/or prospectus supplement relating to the
Securities that is included in the Registration Statement immediately prior to the Applicable Time,
including the documents incorporated by reference therein and any preliminary or other prospectus
and/or prospectus supplement deemed to be a part thereof.
(d) Each Issuer Free Writing Prospectus identified on Schedule II hereto, as of its
issue date and at all subsequent times through the Closing Date or until any earlier date that the
Company notified or notifies the Underwriters as described in Section 6(f) hereof, did not, does
not and will not include any information that conflicted, conflicts or will conflict with the
information contained in the Registration Statement, the General Disclosure Package or the
Prospectus, including any document incorporated by reference therein and any preliminary or other
prospectus deemed to be a part thereof that has not been superseded or modified. The foregoing
sentence does not apply to statements in or omissions from any such Issuer Free Writing Prospectus
based upon and in conformity with written information furnished to the Company by any Underwriter,
any Forward Seller or Forward Counterparty specifically for use therein.
(e) The documents incorporated or deemed to be incorporated by reference in the Registration
Statement, the General Disclosure Package and the Prospectus pursuant to Item 12 of Form S-3 under
the 1933 Act, at the time they were or hereafter are filed with the Commission, complied and will
comply in all material respects with the requirements of the 1934 Act and the rules and regulations
of the Commission thereunder (the 1934 Act Regulations), and, when read together with the other
information in the Registration Statement, the General Disclosure Package or the Prospectus, as the
case may be, (a) at the time the Original Registration Statement became effective, (b) at the
Applicable Time and (c) as of the date of this Agreement or the Closing Date or during the period
specified in Section 6(f) hereof, did not and will not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading.
(f) Since the respective dates as of which information is given in the Registration Statement,
the General Disclosure Package and the Prospectus, except as otherwise provided therein, (A) there
has not occurred any material adverse change or any development that is reasonably likely to have a
material adverse effect on the financial condition or in the earnings or business of the Company
and its subsidiaries considered as one enterprise (a Material Adverse Effect) from that set forth
in the Registration Statement, the General Disclosure Package and the Prospectus (exclusive of any
amendments or supplements thereto subsequent to the date of this Agreement), (B) there have been no
transactions entered into by the Company or its subsidiaries which are material with respect to the
Company and its subsidiaries considered as one enterprise other than those in the ordinary course
of business and (C) except for regular quarterly distributions on the Common Shares, and regular
distributions declared, paid or made in accordance with the terms of any class or series of the
Companys preferred shares, there has been no dividend or distribution of any kind declared, paid
or made by the Company on any class of its capital shares.
(g) The consolidated financial statements and supporting schedules of the Company included in,
or incorporated by reference into, the Registration Statement, the General
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Disclosure Package and the Prospectus (in each case, other than any pro forma financial
information and projections) present fairly, in all material respects, the financial position of
the Company and its consolidated subsidiaries as of the dates indicated and the results of their
operations for the periods specified; except as otherwise stated in the Registration Statement, the
General Disclosure Package and the Prospectus, said financial statements have been prepared in
conformity with generally accepted accounting principles in the United States (GAAP) applied on a
consistent basis; and the supporting schedules, if any, included in, or incorporated by reference
into, the Registration Statement, the General Disclosure Package and the Prospectus present fairly,
in all material respects, the information required to be stated therein. The selected financial
data and the summary financial information included in, or incorporated by reference into, the
Registration Statement, the General Disclosure Package and the Prospectus (in each case, other than
any pro forma financial information and projections) 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 included in, or incorporated by reference into, the Registration Statement,
the General Disclosure Package and the Prospectus. The statements of certain revenues and expenses
of the properties acquired or proposed to be acquired, if any, included in, or incorporated by
reference into, the Registration Statement, the General Disclosure Package and the Prospectus
present fairly in all material respects the information set forth therein and have been prepared,
in all material respects, in accordance with the applicable financial statement requirements of
Rule 3-14 under the 1934 Act with respect to real estate operations acquired or to be acquired.
The pro forma financial statements and the other pro forma financial information (including the
notes thereto), if any, included in, or incorporated by reference into, the Registration Statement,
the General Disclosure Package and the Prospectus present fairly, in all material respects, the
information set forth therein, have been prepared, in all material respects, in accordance with the
Commissions rules and guidelines with respect to pro forma financial statements and have been
properly compiled on the basis described therein and the assumptions used in the preparation of
such pro forma financial statements and other pro forma financial information (including the notes
thereto) are reasonable and the adjustments used therein are appropriate to give effect to the
transactions or circumstances referred to therein. All disclosures contained in the Registration
Statement, the General Disclosure Package and the Prospectus regarding non-GAAP financial
measures (as such term is defined by the rules and regulations of the Commission), if any, comply
with Regulation G under the 1934 Act and Item 10 of Regulation S-K of the 1933 Act Regulations, to
the extent applicable.
(h) PricewaterhouseCoopers LLP, who has expressed its opinion on the audited
financial statements and related schedules included in, or incorporated by reference into, the
Registration Statement, is an independent registered public accounting firm within the meaning of
the 1933 Act and the applicable 1933 Act Regulations.
(i) The Company has been duly organized and is validly existing and in good standing as a
corporation under the laws of the State of Ohio, with power and authority (corporate and other) to
own, lease and operate its properties and to conduct its business as described in the Registration
Statement, the General Disclosure Package and the Prospectus; the Company is in possession of and
operating in compliance with all material franchises, grants, authorizations, licenses, permits,
easements, consents, certificates and orders required for the conduct of its business, all of which
are valid and in full force and effect, except where the failure to so possess or comply would not
have a Material Adverse Effect; and the Company is
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duly qualified to do business and in good standing as a foreign corporation in all other
jurisdictions where its ownership or leasing of properties or the conduct of its business requires
such qualification, except where failure to qualify and be in good standing would not have a
Material Adverse Effect.
(j) Each significant subsidiary (as defined in Rule 405 of the 1933 Act Regulations and for
purposes of such definition, the most recently completed fiscal year shall be the most recently
completed fiscal year for which the Company has filed an Annual Report on Form 10-K) (each, a
Significant Subsidiary), has been duly incorporated or formed and is validly existing as a
corporation, partnership or limited liability company in good standing or in full force and effect
under the laws of the jurisdiction of its incorporation or formation, has corporate, partnership or
limited liability company power and authority to own, lease and operate its properties and to
conduct its business and is duly qualified as a foreign corporation, partnership or limited
liability company 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 where the failure to so qualify would not have a Material Adverse Effect.
(k) The capitalization of the Company is as set forth in the Registration Statement, the
General Disclosure Package and the Prospectus under Description of Preferred Shares
Capitalization and Description of Common Shares Capitalization; the issued and outstanding
capital shares of the Company have been duly authorized and validly issued and are fully paid and
non-assessable and are not subject to preemptive or other similar rights; and all of the issued and
outstanding capital stock of the Companys Significant Subsidiaries has been duly authorized and
validly issued, is fully paid and non-assessable, and such issued and outstanding capital stock
owned directly or indirectly by the Company is owned free and clear of any security interest,
mortgage, pledge, lien, encumbrance, claim or equity, except as otherwise set forth in the
Registration Statement, the General Disclosure Package and the Prospectus or for such security
interests, mortgages, pledges, liens, encumbrances, claims or equities that would not have a
Material Adverse Effect.
(l) Any Common Shares to be issued and sold by the Company pursuant to Section 13 hereof have
been duly authorized by the Company for issuance and sale pursuant to this Agreement and, when
issued and delivered pursuant to this Agreement against payment of the consideration therefor
specified herein, will be validly issued, fully paid and non-assessable; the Securities conform in
all material respects to all statements relating thereto contained in the Registration Statement,
the General Disclosure Package and the Prospectus; and the issuance of any Common Shares pursuant
to Section 13 hereof is not subject to preemptive or other similar rights.
(m) The Common Shares (if any) to be purchased by the Forward Counterparties from the Company
pursuant to the Forward Agreements have been duly authorized and reserved for issuance to the
Forward Counterparties pursuant thereto and, when issued and delivered pursuant to the Forward
Agreements against payment of the consideration therefor specified therein, will be validly issued,
fully paid and non-assessable; and the issuance of such Common Shares will not be subject to any
preemptive or other similar rights.
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(n) There is no action, suit or proceeding before or by any court or governmental agency or
body, domestic or foreign, now pending, or, to the knowledge of the Company, threatened against the
Company or its subsidiaries, which is required to be disclosed in the Prospectus (other than as
disclosed therein), or which would have a Material Adverse Effect or would materially and adversely
affect the properties or assets thereof or which might materially and adversely affect the
consummation of this Agreement, the Forward Agreements or the transactions contemplated herein and
therein; all pending legal or governmental proceedings to which the Company or any of its
subsidiaries is a party or of which any of their respective property is the subject which are not
described in the Registration Statement, the General Disclosure Package and the Prospectus,
including routine litigation incidental to the business, could not, considered in the aggregate,
reasonably be expected to result in a Material Adverse Effect; and there are no material contracts
or documents of the Company or its subsidiaries which are required to be filed as exhibits to the
Registration Statement by the 1933 Act or by the 1933 Act Regulations which have not been so filed.
(o) Neither the Company nor any of its Significant Subsidiaries is (i) in violation of the
Companys Second Amended and Restated Articles of Incorporation, as amended (the Articles of
Incorporation), or certificate of formation, certificate of limited partnership or other
organizational document, as the case may be, or the Companys Amended Code of Regulations, as
amended (the Code of Regulations), or bylaws, operating agreement or partnership agreement, as
the case may be, or (ii) in default in the performance or observance of any material obligation,
agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement,
note, lease or other instrument to which it is a party or by which it or its properties may be
bound, where such defaults in the aggregate would have a Material Adverse Effect; and the execution
and delivery of this Agreement and the Forward Agreements, and the consummation of the transactions
contemplated herein and therein, have been duly authorized by all necessary corporate action, and
compliance by the Company with its obligations hereunder and thereunder 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 its Significant Subsidiaries
pursuant to, any contract, indenture, mortgage, loan agreement, note, lease or other instrument to
which the Company or any of its Significant Subsidiaries is a party or by which it may be bound or
to which any of the property or assets of the Company or any of its Significant Subsidiaries is
subject, nor will such action result in any violation of (i) the provisions of the Articles of
Incorporation or Code of Regulations or, (ii) to the Companys knowledge, any law, administrative
regulation or administrative or court order or decree except, in the case of clause (ii) hereof,
for such conflicts, breaches, defaults, liens, charges, encumbrances or violations that would not
have a Material Adverse Effect; and no consent, approval, authorization or order of any court or
governmental authority or agency is required for the consummation by the Company of the
transactions contemplated by this Agreement or the Forward Agreements, except such as has been
obtained or as may be required under the 1933 Act, the 1934 Act, state securities or Blue Sky laws
or real estate syndication laws in connection with the purchase and distribution of the Securities
by the Underwriters.
(p) The Company has full right, power and authority to enter into this Agreement and each
Forward Agreement, and this Agreement and each Forward Agreement has been duly authorized, executed
and delivered by the Company.
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(q) Each of the Forward Agreements constitutes a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of
creditors rights generally or by equitable principles relating to enforceability; and the Forward
Agreements conform in all material respects to the descriptions thereof in the Registration
Statement, the General Disclosure Package and the Prospectus.
(r) Starting with its taxable year ended December 31, 1993, the Company has elected under
Section 856(c) of the Internal Revenue Code of 1986, as amended (the Code), to be taxed as a real
estate investment trust (REIT), and such election has not been revoked or terminated. The
Company has qualified as a REIT for its taxable years ended December 31, 1993 through December 31,
2010 and the Company has operated and intends to continue to operate so as to qualify as a REIT
thereafter.
(s) Neither the Company nor any of its subsidiaries is, or will be immediately after giving
effect to the consummation of the transactions contemplated by this Agreement and the Forward
Agreements, including the receipt of payment by the Company for Common Shares as contemplated by
the Forward Agreements and the application of the proceeds thereof as contemplated under the
caption Use of Proceeds in the Registration Statement, the General Disclosure Package and the
Prospectus, required to be registered as an investment company under the Investment Company Act of
1940, as amended (the 1940 Act).
(t) Except as set forth in the Registration Statement, the General Disclosure Package and the
Prospectus, there are no persons with registration or other similar rights to have any securities
registered pursuant to the Registration Statement.
(u) None of the Company or any of its wholly-owned subsidiaries or, to the Companys
knowledge, any of the officers and directors thereof acting on the Companys or such subsidiaries
behalf has taken, directly or indirectly, any action resulting in a violation of Regulation M under
the 1934 Act or designed to cause or result in, or which has constituted or which reasonably might
be expected to constitute, the stabilization or manipulation of the price of the Securities or
facilitation of the sale or resale of the Securities.
(v) (A) Except as described in the Registration Statement, the General Disclosure Package and
the Prospectus, the Company or its subsidiaries have good and marketable title or leasehold
interest, as the case may be, to the portfolio properties, including, without limitation, shopping
centers and business centers (including, without limitation, centers owned through unconsolidated
joint ventures and others that are otherwise consolidated by the Company) and undeveloped land (the
Portfolio Properties) described in the Registration Statement, the General Disclosure Package and
the Prospectus as being owned by the Company or its subsidiaries (except with respect to
undeveloped land described in the Registration Statement, the General Disclosure Package and the
Prospectus as being held by the Company through joint ventures), in each case free and clear of all
liens, encumbrances, claims, security interests and defects (excluding mortgages for borrowed
money) (collectively, Defects), except where such Defects would not have a Material Adverse
Effect; (B) the joint venture interest in each property described in the Registration Statement,
the General Disclosure Package and the Prospectus, as being held by the Company through a joint
venture, is owned free and clear of all
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Defects except for such Defects that would not have a Material Adverse Effect; (C) all liens,
charges, encumbrances, claims or restrictions on or affecting the properties and assets of the
Company or its subsidiaries (excluding mortgages for borrowed money) are disclosed in the
Registration Statement, the General Disclosure Package and the Prospectus, except for any such
liens, charges, encumbrances, claims or restrictions that would not have a Material Adverse Effect;
and (D) none of the Company, its wholly-owned subsidiaries or, to the knowledge of the Company, any
lessee of any of the Portfolio Properties is in default under any of the leases governing the
Portfolio Properties, except such defaults that would not have a Material Adverse Effect, and the
Company does not know of any event which, but for the passage of time or the giving of notice, or
both, would constitute a default under any of such leases, except such defaults that would not have
a Material Adverse Effect.
(w) The Company or its subsidiaries have title insurance on each of the Portfolio Properties
(except with respect to each property described in the Registration Statement, the General
Disclosure Package and the Prospectus as held by the Company through a joint venture) in an amount
at least equal to the greater of (A) the cost of acquisition of such Portfolio Property and (B) the
cost of construction of the improvements located on such Portfolio Property except, in each case,
where the failure to maintain such title insurance would not have a Material Adverse Effect; the
joint venture owning each property described in the Registration Statement, the General Disclosure
Package and the Prospectus as held by the Company through a joint venture has title insurance on
such property in an amount at least equal to the greater of (A) the cost of acquisition of such
Portfolio Property by such joint venture and (B) the cost of construction of the improvements
located on such Portfolio Property, except in each case, where the failure to maintain such title
insurance would not have a Material Adverse Effect.
(x) The notes secured by the mortgages and deeds of trust encumbering the Portfolio Properties
(except with respect to each property described in the General Disclosure Package and the
Prospectus as held by the Company through a joint venture) are not convertible except where the
conversion of such notes would not have a Material Adverse Effect, and said mortgages and deeds of
trust are not cross-defaulted or cross-collateralized to any property that is not a Portfolio
Property, except where such cross-default or cross-collateralization, if triggered, would not have
a Material Adverse Effect.
(y) The Company has no knowledge of (a) the unlawful presence of any regulated hazardous
substances, hazardous materials, toxic substances or waste materials (collectively, Hazardous
Materials) in violation of Environmental Laws (as hereinafter defined) on any of the Portfolio
Properties or (b) any spills, releases, discharges or disposals of Hazardous Materials in violation
of Environmental Laws that have occurred or are presently occurring from the Portfolio Properties
as a result of any construction on or operation and use of the Portfolio Properties, which presence
or occurrence would have a Material Adverse Effect. In connection with the construction on or
operation and use of the Portfolio Properties, the Company represents that, as of the date of this
Agreement, the Company has no knowledge of any material failure to comply with all applicable
local, state and federal environmental laws, regulations, ordinances and binding administrative and
judicial orders relating to the generation, storage, handling, transport and disposal of any
Hazardous Materials (Environmental Laws) that would have a Material Adverse Effect.
10
(z) The Company and its subsidiaries maintain a system of internal accounting and other
controls sufficient to provide reasonable assurances that (i) transactions are executed in
accordance with managements general or specific authorizations, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP and to maintain
accountability for assets, (iii) access to assets is permitted only in accordance with managements
general or specific authorization and (iv) the recorded accounting for assets is compared with
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences. The Company has no knowledge of any material weaknesses in its internal control over
financial reporting and, except as described in the Registration Statement, the General Disclosure
Package and the Prospectus, since the end of the Companys most recent audited fiscal year, there
has been no change in the Companys internal control over financial reporting that has materially
affected, or is reasonably likely to materially affect, the Companys internal control over
financial reporting.
(aa) The Company has established and maintains disclosure controls and procedures (as such
term is defined in Rules 13a-15 and 15d-15 under the 1934 Act) in accordance with the rules and
regulations under the Sarbanes-Oxley Act of 2002, the 1933 Act and the 1934 Act.
(bb) No labor problem or dispute with the employees of the Company or its Significant
Subsidiaries exists or, to the knowledge of the Company, is threatened or imminent, that would have
a Material Adverse Effect, except as set forth in or contemplated in the Registration Statement,
the General Disclosure Package and the Prospectus (exclusive of any amendments or supplement
thereto subsequent to the date of this Agreement).
(cc) Each of the Company and its subsidiaries is insured by insurers of recognized financial
responsibility against such material losses and risks and in such amounts as management of the
Company believes to be prudent.
(dd) Neither the Company, nor any of its subsidiaries nor, any director or officer, nor to the
knowledge of the Company, any agent or employee of the Company or any of its subsidiaries has taken
or will take any action in furtherance of an offer, payment, promise to pay, or authorization or
approval of the payment or giving of money, property, gifts or anything else of value, directly or
indirectly, to any government official (including any officer or employee of a government or
government-owned or controlled entity or of a public international organization, or any person
acting in an official capacity for or on behalf of any of the foregoing, or any political party or
party official or candidate for political office) to unlawfully influence official action or secure
an unlawful advantage; and the Company and its wholly-owned subsidiaries have conducted their
businesses in compliance with applicable anti-corruption laws and have instituted and maintain and
will continue to maintain policies and procedures designed to promote and achieve compliance with
such laws and with the representation and warranty contained herein.
(ee) The operations of the Company and its subsidiaries are and have been conducted at all
times in compliance in all material respects with all applicable financial recordkeeping and
reporting requirements, including those of the Bank Secrecy Act, as amended by Title III of the
Uniting and Strengthening America by Providing Appropriate Tools Required
11
to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable
anti-money laundering statutes of jurisdictions where the Company and its subsidiaries conduct
business, the rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the
Anti-Money Laundering Laws), and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its
subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the best knowledge of
the Company, threatened.
(ff) (A) Neither the Company nor any of its subsidiaries (collectively, the Entity) or, to
the knowledge of the Company, any director, officer, employee, agent, affiliate or representative
of the Entity, is an individual or entity (Person) that is, or is owned or controlled by a Person
that is: (A) the subject of any sanctions (Sanctions) administered or enforced by the U.S.
Department of Treasurys Office of Foreign Assets Control (OFAC), nor (B) located, organized or
resident in a country or territory that is the subject of Sanctions (including, without limitation,
Burma/Myanmar, Cuba, Iran, North Korea, Sudan and Syria).
(B) The Company will not, directly or indirectly, use the proceeds of the offering of the
Securities or of the settlement of the Forward Agreements, as the case may be, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:
(A) to fund or facilitate any activities or business of or with any Person or in any country or
territory that, at the time of such funding or facilitation, is the subject of Sanctions; or (B)
in any other manner that will result in a violation of Sanctions by any Person (including any
Person participating in the offering of Securities, whether as underwriter, advisor, investor or
otherwise).
(C) For the past five years, the Company has not knowingly engaged in and is not now knowingly
engaged in any dealings or transactions with any Person, or in any country or territory, that at
the time of the dealing or transaction is or was the subject of Sanctions.
Any certificate signed by any officer of the Company and delivered to the Underwriters or
counsel for the Underwriters in connection with the offering of the Securities shall be deemed a
representation and warranty by the Company, as to matters covered thereby, to each Underwriter,
each Forward Seller and each Forward Counterparty.
2. Representations and Warranties by the Forward Sellers. Each of the Forward Sellers
severally represents and warrants to each Underwriter and the Company as of the date hereof, as of
the Applicable Time and as of the Closing Date as follows:
(a) This Agreement has been duly authorized, executed and delivered by such Forward Seller
and, at the Closing Date, such Forward Seller will have full right, power and authority to sell,
transfer and deliver the Underwritten Securities.
(b) The Forward Agreement between the Company and the Forward Counterparty affiliated with
such Forward Seller has been duly authorized, executed and delivered by such affiliated Forward
Counterparty and constitutes a valid and binding agreement
12
of such Forward Counterparty, enforceable against such Forward Counterparty in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors rights generally or by equitable principles relating
to enforceability.
(c) Such Forward Seller will, at the Closing Date, have the free and unqualified right to
transfer the Underwritten Securities to be sold by such Forward Seller, and the Underwritten
Securities, at the Closing Date, will be free and clear of any security interest, mortgage, pledge,
lien, charge, claim, equity or encumbrance of any kind; and upon delivery of such Underwritten
Securities and payment of the purchase price therefor as herein contemplated, assuming each of the
Underwriters has no notice of any adverse claim, each of the Underwriters will have the free and
unqualified right to transfer the Underwritten Securities purchased by it from such Forward Seller,
free and clear of any security interest, mortgage, pledge, lien, charge, claim, equity or
encumbrance of any kind.
(d) Such Forward Seller is acting as an agent for such affiliated Forward Counterparty in
connection with the transactions contemplated hereby.
3. Purchase and Sale. (a) On the basis of the representations and warranties
contained in this Agreement, and subject to its terms and conditions, each Forward Seller and the
Company (with respect to any Common Shares issued and sold by the Company pursuant to Section 13
hereof), severally and not jointly, hereby agrees to sell to the Underwriters, and each Underwriter
agrees, severally and not jointly, to purchase from each Forward Seller and the Company (with
respect to any Common Shares issued and sold by the Company pursuant to Section 13 hereof) the
respective numbers of Securities set forth in Schedule I-A hereto opposite its name (or the
proportionate number of Common Shares to be issued and sold by the Company pursuant to Section 13
hereof, as the case may be) at $13.75 per share (the Purchase Price).
(b) In the event that the Forward Seller does not borrow and deliver for sale the number of
Common Shares set forth in Schedule I-B opposite the name of such Forward Seller under the
column captioned Number of Underwritten Securities To Be Sold on the Closing Date pursuant to the
terms of the applicable Forward Agreement, the Company shall issue and sell in whole but not in
part a number of Common Shares equal to the number of shares that such Forward Seller does not
deliver. In such event, the aggregate number of Common Shares that such Forward Seller does so
deliver for sale shall be the Underwritten Securities with respect to such Forward Seller.
(c) If a Forward Seller does not borrow and deliver for sale the number of Common Shares set
forth in Schedule I-B opposite the name of such Forward Seller under the column captioned
Number of Underwritten Securities to Be Sold, such Forward Seller will use its best efforts to
notify the Company no later than 5:00 p.m., New York City time, on the first business day prior to
the Closing Date.
4. Delivery and Payment. Payment for the Underwritten Securities shall be made by the
Underwriters to each Forward Seller (or, in the case of delivery of any Common Shares to be issued
and sold by the Company in accordance with Section 13 hereof, to the Company) in Federal or other
funds immediately available in New York City against delivery of
13
such Underwritten Securities (or any Common Shares to be issued and sold by the Company
pursuant to Section 13 hereof, as the case may be) for the respective accounts of the Underwriters
at 10:00 a.m., New York City time, on March 7, 2011. Delivery of the Underwritten Securities, as
well as any Common Shares issued and sold by the Company pursuant to Section 13 hereof in lieu of
such Underwritten Securities, shall be made at 10:00 a.m., New York City time, by causing The
Depository Trust Company (DTC) to credit the account of the Underwriter at DTC, on March 7, 2011,
or at such time on such later date not more than three business days after the foregoing date as
the Underwriters shall designate, which date and time may be postponed by agreement between the
Underwriters and the Company or as provided in Section 13 hereof (such date and time of delivery
and payment for the Securities being herein called the Closing Date). Delivery of the
Underwritten Securities, as well as any Common Shares issued and sold by the Company pursuant to
Section 13 hereof in lieu of such Underwritten Securities, shall be made, and the Underwritten
Securities, as well as any Common Shares issued and sold by the Company pursuant to Section 13
hereof in lieu of such Underwritten Securities, shall be registered in the name of Cede & Co. as
nominee of DTC, and available for checking in New York, New York at least one full business day
prior to the Closing Date.
5. Offering by Underwriters. It is understood that the Underwriters propose to offer
the Securities for sale to the public as set forth in the General Disclosure Package and the
Prospectus.
6. Agreements. The Company agrees with the Forward Sellers, the Forward
Counterparties and the Underwriters that:
(a) Immediately following the execution of this Agreement, the Company, subject to Section
6(c) hereof, will prepare a Prospectus Supplement containing the Rule 430B Information, and the
Company will effect the filings required under Rule 424(b) of the 1933 Act Regulations, in the
manner and within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)).
The Company shall pay the required Commission filing fees relating to the Securities within the
time required by Rule 456(b)(1)(i) of the 1933 Act Regulations without regard to the proviso
therein and otherwise in accordance with Rules 456(b) and 457(r) of the 1933 Act Regulations
(including, if applicable, by updating the Calculation of Registration Fee table in accordance
with Rule 456(b)(1)(ii) either in a post-effective amendment to the Registration Statement or on
the cover page of the Prospectus Supplement filed pursuant to Rule 424(b)).
(b) The Company will advise the Underwriters and the Forward Sellers promptly (i) of the
issuance by the Commission of any stop order suspending the effectiveness of the Registration
Statement or of the institution of any proceedings for that purpose or of any examination pursuant
to Section 8(e) of the 1933 Act concerning the Registration Statement and (ii) if the Company
becomes the subject of a proceeding under Section 8A of the 1933 Act in connection with the
offering of the Securities or if the Company receives from the Commission a notice pursuant to Rule
401(g)(2) of the 1933 Act Regulations. The Company will use its reasonable best efforts to prevent
the issuance of any stop order and to obtain as soon as possible the lifting thereof, if issued.
The Company will advise the Underwriters and the Forward Sellers promptly of any request by the
Commission for any amendment of or supplement to the
14
Registration Statement, the filing of a new registration statement relating to the Securities,
any amendment of or supplement to the Prospectus or for additional information.
(c) At any time when the Prospectus relating to the Securities is required to be delivered (or
but for the exception afforded by Rule 172 of the 1933 Act Regulations would be required to be
delivered) under the 1933 Act or the 1934 Act in connection with sales of the Securities (the
Prospectus Delivery Period), the Company will give the Underwriters and the Forward Sellers
notice of its intention to file any amendment to the Registration Statement, a new registration
statement relating to the Securities or any amendment or supplement to the Prospectus, whether
pursuant to the 1933 Act, the 1934 Act or otherwise, and will furnish the Underwriters and the
Forward Sellers with copies of any such amendment or supplement or such new registration statement
a reasonable amount of time prior to such proposed filing, and will not file any such amendment or
supplement or such new registration statement or other documents in a form to which the
Underwriters or the Forward Sellers or counsel for the Underwriters or counsel for the Forward
Sellers shall reasonably object in writing or which is not in material compliance with the 1933
Act, the 1933 Act Regulations, the 1934 Act or the 1934 Act Regulations, as applicable; provided,
however, that with respect to any proposed amendment or supplement resulting solely from the
incorporation by reference of any report to be filed under the 1934 Act and the 1934 Act
Regulations, the Company will only be required to furnish the Underwriters and the Forward Sellers
with copies of such report a reasonable amount of time prior to the proposed filing thereof. The
Company will give the Underwriters and the Forward Sellers notice of its intention to make any such
filing from the Applicable Time to the Closing Date and will furnish the Underwriters and the
Forward Sellers with copies of any such documents a reasonable amount of time prior to such
proposed filing, as the case may be, and will not file or use any such document to which the
Underwriters or the Forward Sellers or counsel for the Underwriters or counsel for the Forward
Sellers shall reasonably object.
(d) At the request of an Underwriter or a Forward Seller, the Company will deliver to such
Underwriter or such Forward Seller a conformed copy of the Original Registration Statement and of
each amendment thereto (including exhibits filed therewith and documents incorporated by reference
therein pursuant to Item 12 of Form S-3 under the 1933 Act or otherwise deemed to be a part
thereof).
(e) The Company will furnish to each Underwriter and each Forward Seller, upon written
request, as many copies of each preliminary prospectus and any amendment or supplement thereto as
such Underwriter or such Forward Seller reasonably requests (which copies may be delivered via
email), and the Company hereby consents to the use of such copies for purposes permitted by the
1933 Act. The Company will furnish to each Underwriter and each Forward Seller, from time to time
during the Prospectus Delivery Period, such number of copies of the Prospectus (as amended or
supplemented) as such Underwriter or such Forward Seller may reasonably request for the purposes
contemplated by the 1933 Act, the 1933 Act Regulations, the 1934 Act or the 1934 Act Regulations.
(f) If, during the Prospectus Delivery Period, any event relating to or affecting the Company
occurs as a result of which the Prospectus or any other prospectus as then in effect would include
an 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
15
made, not misleading, or if it is necessary at any time to amend the Registration Statement or
to file a new registration statement relating to the Securities or amend or supplement the
Prospectus to comply with the 1933 Act or the 1934 Act, the Company will promptly notify the
Underwriters and the Forward Sellers thereof and, subject to Section 6(c) hereof, will amend the
Registration Statement, file such new registration statement or amend or supplement the Prospectus,
as applicable, to correct such statement or omission whether by filing documents pursuant to the
1933 Act, the 1934 Act or otherwise, as may be necessary to correct such untrue statement or
omission or to make the Registration Statement and Prospectus comply with such requirements; the
Company will use its reasonable best efforts to have such amendment or such new registration
statement declared effective as soon as practicable (if it is not an automatic shelf registration
statement with respect to the Securities) and the Company will furnish to the Underwriters and the
Forward Sellers a reasonable number of copies of such amendment or supplement or such new
registration statement. If at any time after the date of this Agreement, an event or development
occurs as a result of which the General Disclosure Package contains an untrue statement of a
material fact or omits to state a material fact necessary in order to make the statements therein,
in the light of the circumstances existing at the Applicable Time or at the time it is delivered or
conveyed to a purchaser, not misleading, the Company will promptly notify the Underwriters and the
Forward Sellers and, subject to Section 6(c) hereof, will promptly amend or supplement in a manner
reasonably satisfactory to the Underwriters and the Forward Sellers, at its own expense, the
General Disclosure Package to eliminate or correct such untrue statement or omission. If, prior to
the completion of the public offer and sale of the Securities, at any time following the issuance
of an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result
of which such Issuer Free Writing Prospectus conflicted or would conflict with the information
contained in the Registration Statement (or any other registration statement relating to the
Securities) or the Statutory Prospectus or any preliminary prospectus or included or would include
an untrue statement of a material fact or omitted or would omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances prevailing at that
subsequent time, not misleading, the Company will promptly notify the Underwriters and the Forward
Sellers and, subject to Section 6(c) hereof, will promptly amend or supplement, at its own expense,
such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or
omission. The Underwriters delivery of any such amendment or supplement shall not constitute a
waiver of any of the conditions in Section 7 hereof.
(g) If immediately prior to the third anniversary of October 13, 2009 (such third anniversary,
the Renewal Deadline) any of the Securities remain unsold by the Underwriters, the Company will,
prior to the Renewal Deadline, promptly notify the Underwriters and the Forward Sellers and file,
if it has not already done so and is eligible to do so, an automatic shelf registration statement
(as defined in Rule 405 of the 1933 Act Regulations) relating to the Securities, in a form
satisfactory to the Underwriters and the Forward Sellers. If at the Renewal Deadline any of the
Securities remain unsold by the Underwriters and the Company is not eligible to file an automatic
shelf registration statement, the Company will, if it has not already done so, promptly notify the
Underwriters and the Forward Sellers and file a new shelf registration statement or post-effective
amendment on the proper form relating to the Securities in a form satisfactory to the Underwriters
and the Forward Sellers, and will use its best efforts to cause such registration statement or
post-effective amendment to be declared effective as soon as practicable after the Renewal Deadline
and promptly notify the Underwriters and the
16
Forward Sellers of such effectiveness. The Company will take all other action necessary or
appropriate to permit the public offering and sale of the Securities to continue as contemplated in
the expired registration statement relating thereto. References herein to the Registration
Statement shall include such automatic shelf registration statement or such new shelf registration
statement or post-effective amendment, as the case may be.
(h) The Company will cooperate with the Underwriters to enable the Securities to be qualified
for sale under the securities laws and real estate syndication laws of such jurisdictions as the
Underwriters may reasonably designate and at the reasonable request of the Underwriters will make
such applications and furnish such information as may be required of it as the issuer of the
Securities for that purpose; provided, however, that the Company shall not be required to qualify
to do business or to file a general consent to service of process or to become subject to taxation
as a foreign business in any such jurisdiction. The Company will, from time to time, prepare and
file such statements and reports as are or may be required of it as the issuer of the Securities to
continue such qualifications in effect for so long a period as the Underwriters may reasonably
request for the distribution of the Securities; and in each jurisdiction in which the Securities
have been so qualified, the Company will file such statements and reports as may be required by the
laws of such jurisdiction to continue such qualification in effect for so long as may be required
for the distribution of the Securities; provided, however, that the Company shall not be obligated
to qualify as a foreign corporation or to take any action that would subject it to general service
of process in any jurisdiction where it is not so qualified or where it would be subject to
taxation as a foreign business.
(i) With respect to each sale of Securities, the Company will timely file such reports
pursuant to the 1934 Act as are necessary in order to make generally available to its
securityholders an earnings statement in form complying with the provisions of Rule 158 of the 1933
Act Regulations for the purposes of, and to provide to the Underwriters the benefits contemplated
by, the last paragraph of Section 11(a) of the 1933 Act.
(j) During the period of five years from the date hereof or, in the case of the Forward
Sellers, until the expiration or termination of the Forward Agreements, to the extent not otherwise
available on EDGAR or the Companys website, the Company will deliver to the Underwriters and the
Forward Sellers (i) copies of each annual report of the Company and each other report furnished by
the Company to its shareholders, (ii) as soon as they are available, copies of any other reports
(financial or other) which the Company shall publish or otherwise make available to any of its
security holders as such, and (iii) as soon as they are available, copies of any reports and
financial statements furnished to or filed with the Commission or any national securities exchange.
(k) The Company will use the net proceeds received by it from the sale of Securities or from
the settlement of the Forward Agreements, as the case may be, in the manner specified in the
Registration Statement, the General Disclosure Package and the Prospectus under Use of Proceeds.
(l) The Company will use its reasonable best efforts to continue to meet the requirements to
qualify as a REIT under the Code for the taxable year in which sales of the
17
Securities are to occur, unless otherwise specified in the Registration Statement, the General
Disclosure Package and the Prospectus.
(m) The Company, during the Prospectus Delivery Period, will file promptly all documents
required to be filed with the Commission pursuant to Section 13, 14 or 15 of the 1934 Act within
the time periods prescribed by the 1934 Act and the 1934 Act Regulations.
(n) The Company represents and agrees that, unless it obtains the prior written consent of the
Underwriters and the Forward Sellers, and the Underwriters represents and agrees that, unless it
obtains the prior written consent of the Company and the Forward Sellers, it has not made and will
not make any offer relating to the Securities that would constitute an issuer free writing
prospectus, as defined in Rule 433, or that would otherwise constitute a free writing
prospectus, as defined in Rule 405; provided, however, that the prior written consent of the
Company, the Underwriters and the Forward Sellers shall be deemed to have been given in respect of
any Issuer Free Writing Prospectus(es) included on Schedule II hereto. Any such free
writing prospectus consented to in writing by the Company, the Underwriters and the Forward Sellers
is hereinafter referred to as a Permitted Free Writing Prospectus. The Company represents that
it has treated or agrees that it will treat each Permitted Free Writing Prospectus as an issuer
free writing prospectus, as defined in Rule 433, and has complied and will comply with the
requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely
filing with the Commission where required, legending and record keeping.
(o) For a period from the date of the Prospectus through and including the 45th day following
the date of the Prospectus (the Lock-up Period), the Company will not, without the prior written
consent of the Underwriters, issue, offer, sell, contract to sell, hypothecate, pledge, grant or
sell any option, right or warrant to purchase, or otherwise dispose of, or contract to dispose of,
any Common Shares, any securities substantially similar to the Common Shares or any other
securities convertible into or exercisable or exchangeable for Common Shares. However, these
restrictions do not apply to (A) borrowings under the Companys credit facilities, (B) the issuance
of Common Shares upon conversion of the Companys 3.50% Convertible Senior Notes due 2011, the
Companys 3.00% Convertible Senior Notes due 2012 or the Companys 1.75% Convertible Senior Notes
due 2040, (C) any debt or equity securities issued in connection with acquisition transactions,
including the acquisition of real property or interests therein, including mortgage or leasehold
interests or in conjunction with any joint venture transaction to which the Company is or becomes a
party, provided that any such issuances during the Lock-up Period in the aggregate do not exceed 5%
of the outstanding Common Shares as of the date of such issuance, (D) securities issued in
connection with the Companys employee benefit plans, share option plans, any equity-based
compensation plan or arrangement and/or distribution reinvestment plans existing at the date of
this Agreement, (E) securities issued pursuant to currently outstanding options, warrants or rights
or (F) the delivery of Common Shares pursuant to the Forward Agreements or this Agreement.
In the event that either (x) during the last 17 days of the Lock-up Period referred to above,
the Company issues an earnings release or a press release announcing a significant event or (y)
prior to the expiration of the Lock-up Period, the Company announces that it will release earnings
results or issue a press release announcing a significant event during the 17-day period beginning
on the last day of such Lock-up Period, the restrictions described above shall
18
continue to apply until the expiration of the 17-day period beginning on the first day
following the date of the earnings release or press release, except that such extension will not
apply if, within three business days prior to the 15th calendar day before the last day
of the Lock-up Period, the Company delivers a certificate, signed by the Chief Financial Officer or
Chief Executive Officer of the Company, certifying on behalf of the Company that the Common Shares
are actively traded securities (as defined in Regulation M).
(p) During the Lock-up Period, the Company will not waive or otherwise agree to allow Mr.
Alexander Otto or any member of the Otto Family (as such term is defined in the Investors Rights
Agreement, dated as of May 11, 2009, between Mr. Otto and the Company (the Investors Rights
Agreement)) to sell any Common Shares other than as permitted in Section 3.1(f) of the Investors
Rights Agreement, as such agreement exists on the date of this Agreement.
(q) The Company will use its best efforts to cause (i) the Common Shares (if any) to be issued
pursuant to Physical Settlement or Net Share Settlement (as each such term is defined in the
Forward Agreements) of each Forward Agreement and (ii) the Common Shares (if any) to be issued and
sold by the Company pursuant to Section 13 hereof, to be approved for listing on the New York Stock
Exchange (the NYSE) as of the date such Common Shares are issued upon such Physical Settlement or
Net Share Settlement or the Closing Date, as the case may be.
(r) Neither the Company nor any of its subsidiaries will 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 1934 Act or otherwise, stabilization or manipulation of the price of any of their
securities to facilitate the sale or resale of the Securities.
(s) Whether or not the transactions contemplated in this Agreement are consummated or this
Agreement is terminated, the Company agrees to pay or cause to be paid all expenses incident to the
performance of its obligations under this Agreement, including: (i) the fees, disbursements and
expenses of the Companys counsel and the Companys registered public accounting firm in connection
with the registration and delivery of the Securities under the 1933 Act and all other fees or
expenses in connection with the preparation and filing of the Registration Statement, any
preliminary prospectus, any Issuer Free Writing Prospectus, the Prospectus and amendments and
supplements to any of the foregoing, including all printing costs associated therewith, and the
mailing and delivery of copies thereof to the Underwriters, the Forward Sellers and dealers, in the
quantities hereinabove specified, and any costs associated with electronic delivery of any of the
foregoing by the Underwriters to investors, (ii) all costs and expenses related to the transfer and
delivery of the Securities to the Underwriters, including any transfer or other taxes payable
thereon, (iii) the cost of printing or producing any Blue Sky or Legal Investment memorandum in
connection with the offer and sale of the Securities under state securities laws and all expenses
in connection with the qualification of the Securities for offer and sale under state securities
laws and real estate syndication laws as provided in Section 6(h) hereof, including filing fees and
the reasonable fees and disbursements of counsel for the Underwriters in connection with such
qualification and in connection with the Blue Sky or Legal Investment memorandum (provided that the
amount for such memorandum shall not exceed $5,000), (iv) all filing fees and the reasonable fees
and disbursements of counsel to the
19
Underwriters incurred in connection with the review and qualification of the offering of the
Securities by the Financial Industry Regulatory Authority (provided that any fees of such counsel
shall not exceed $5,000), (v) all costs and expenses incident to listing the Securities on the
NYSE, (vi) the cost of printing certificates representing the Securities, (vii) the costs and
charges of any transfer agent, registrar or depositary, (viii) the costs and expenses of the
Company relating to investor presentations on any road show undertaken in connection with the
marketing of the offering of the Securities including, without limitation, expenses associated with
the production of road show slides and graphics, fees and expenses of any consultants engaged in
connection with the road show presentations with the prior approval of the Company, travel and
lodging expenses of the representatives and officers of the Company and any such consultants, and
the cost of any aircraft chartered in connection with the road show and (ix) all other costs and
expenses incident to the performance of the obligations of the Company hereunder for which
provision is not otherwise made in this Section. It is understood, however, that except as
provided in this Section 6(s) and Sections 8 and 9 hereof, and as otherwise provided in the Forward
Agreements, the Underwriters, Forward Sellers and Forward Counterparties will pay all of their
costs and expenses, including fees and disbursements of their counsel, stock transfer taxes payable
on resale of any of the Securities by them and any advertising expenses connected with any offers
they may make.
7. Conditions to the Obligations of the Underwriters. The obligations of the
Underwriters to purchase the Securities (or any Common Shares to be issued and sold by the Company
pursuant to Section 13 hereof in lieu thereof), and the obligations of the Forward Sellers to
deliver and sell the Underwritten Securities, shall be subject to the accuracy of the
representations and warranties on the part of the Company contained herein as of the date of this
Agreement, the Applicable Time and the Closing Date, to the accuracy of the statements of the
Company made in any certificates pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional conditions:
(a) The Registration Statement has become effective and, on the Closing Date, (i) no stop
order suspending the effectiveness of the Registration Statement shall have been issued under the
1933 Act or proceedings therefor initiated or, to the knowledge of the Company, threatened by the
Commission, and any request on the part of the Commission for additional information shall have
been complied with to the reasonable satisfaction of counsel to the Underwriters, (ii) each
preliminary prospectus and the Prospectus containing the Rule 430B Information shall have been
filed with the Commission in the manner and within the time period required by Rule 424(b) without
reliance on Rule 424(b)(8) (or a post-effective amendment providing such information shall have
been filed and become effective in accordance with the requirements of Rule 430B), (iii) any
material required to be filed by the Company pursuant to Rule 433(d) of the 1933 Act Regulations
shall have been filed with the Commission within the applicable time periods prescribed for such
filings under such Rule 433, (iv) the Company shall have paid the required Commission filing fees
relating to the Securities within the time period required by Rule 456(b)(1)(i) of the 1933 Act
Regulations without regard to the proviso therein and otherwise in accordance with Rules 456(b) and
457(r) of the 1933 Act Regulations, and (v) there shall not have come to your attention any facts
that would cause you to believe that (a) the Prospectus, at the time it was required to be
delivered or made available to purchasers of the Securities or (b) the General Disclosure Package,
at the Applicable Time, included an untrue
20
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 existing at such time, not misleading.
(b) At the time of execution of this Agreement, the Underwriters and the Forward Sellers shall
have received from PricewaterhouseCoopers llp a letter, addressed to the Underwriters, the
Forward Sellers and the Forward Counterparties, dated the date hereof, in form and substance
satisfactory to the Underwriters and the Forward Sellers, containing statements and information of
the type customarily included in accountants comfort letters to underwriters.
(c) On the Closing Date, the Underwriters and the Forward Sellers shall have received from
PricewaterhouseCoopers llp a letter, addressed to the Underwriters, the Forward Sellers
and the Forward Counterparties, dated the Closing Date, to the effect that such accountants
reaffirm, as of the Closing Date, and as though made on the Closing Date, the statements made in
the letter furnished by such accountants pursuant to paragraph (b) of this Section 7, except that
the specified date will be a date not more than three days prior to the Closing Date.
(d) On the Closing Date (i) there shall not have been, since the date hereof or since the
respective dates as of which information is given in the Registration Statement, the General
Disclosure Package and the Prospectus, any Material Adverse Effect, other than as set forth in the
Registration Statement, the General Disclosure Package and the Prospectus, (ii) the Company has
complied with all agreements and satisfied all conditions on its part to be performed or satisfied
at or prior to the Closing Date, (iii) the Company has not received from the Commission any notice
pursuant to Rule 401(g)(2) of the 1933 Act objecting to the use of the automatic shelf registration
statement form, (iv) no stop order suspending the effectiveness of the Registration Statement shall
have been issued under the 1933 Act and no proceeding therefor shall have been instituted or
threatened by the Commission and (v) the Underwriters, the Forward Sellers and the Forward
Counterparties shall have received on the Closing Date a certificate of the President and Chief
Executive Officer of the Company and the Chief Financial Officer or the Chief Accounting Officer of
the Company, dated as of the Closing Date, evidencing compliance with the provisions of this
subsection (d).
(e) The Underwriters, the Forward Sellers and the Forward Counterparties shall have received
certificates, dated the Closing Date, of the President and Chief Executive Officer of the Company
and the Chief Financial Officer or the Chief Accounting Officer of the Company, to the effect that
the representations and warranties of the Company contained in Section 1 are true and correct with
the same force and effect as though expressly made at and as of the Closing Date.
(f) On the Closing Date, the Underwriters and the Forward Sellers shall have received from
Jones Day, counsel for the Company, an opinion, addressed to the Underwriters, the Forward Sellers
and the Forward Counterparties, dated as of the Closing Date, substantially in the form set forth
in Exhibit A hereto and to such further effect as counsel to the Underwriters and counsel
to the Forward Sellers may reasonably request.
21
(g) On the Closing Date, the Underwriters and the Forward Sellers shall have received from
Sidley Austin llp, counsel for the Underwriters and counsel for the Forward Sellers,
addressed to the Underwriters, the Forward Sellers and the Forward Counterparties, their opinion or
opinions dated the Closing Date in form and substance satisfactory to the Underwriters and the
Forward Sellers, and the Company shall have furnished to such counsel such documents as they may
request for the purpose of enabling them to pass upon such matters.
In giving their opinions, Sidley Austin llp may rely as to matters involving the laws
of the State of Ohio upon the opinion of Jones Day. Jones Day and Sidley Austin llp may
rely (i) as to the qualification of the Company or its subsidiaries to do business in any state or
jurisdiction, upon certificates of appropriate government officials, telephonic confirmation by
representatives of such states or confirmation from information contained on the websites of such
states and (ii) as to matters of fact, upon certificates and written statements of officers and
employees of and accountants for the Company or its subsidiaries.
(h) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:
(i) | there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any of the Companys securities by any nationally recognized statistical rating organization; or |
(ii) | there shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Registration Statement, the General Disclosure Package and the Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement) that, in the judgment of the Underwriters, is material and adverse and that makes it, in the judgment of the Underwriters, impracticable to market the Securities on the terms and in the manner contemplated in the Registration Statement, the General Disclosure Package and the Prospectus. |
(i) At the time of execution of this Agreement, the Underwriters shall have received lock-up
agreements substantially in the form of Exhibit B hereto (the Lock-up Agreements) from
each of the executive officers and directors listed on Schedule III hereto.
(j) The Common Shares reserved for listing upon issuance following Physical Settlement or Net
Share Settlement (as each such term is defined in the Forward Agreements) of each Forward Agreement
and the Common Shares (if any) to be sold by the Company pursuant to Section 13 hereof shall have
been approved for listing on the NYSE, subject only to official notice of issuance.
(k) The Company shall have furnished to the Underwriters and the Forward Sellers, as the case
may be, such additional certificates as the Underwriters or the Forward Sellers, as the case may
be, may have reasonably requested as to the accuracy, at and as of the
22
Closing Date, of the representations and warranties made herein by them, as to compliance, at
and as of the Closing Date, by them with their covenants and agreements herein contained and other
provisions hereof to be satisfied at or prior to the Closing Date, and as to other conditions to
the obligations of the Underwriters hereunder.
If any of the conditions hereinabove provided for in this Section 7 shall not have been
satisfied when and as required to be satisfied, this Agreement may be terminated by the
Underwriters by notifying the Company of such termination in writing or by telegram at or prior to
the Closing Date, but the Underwriters shall be entitled to waive any of such conditions.
8. Reimbursement of Underwriters Expenses. If the sale of the Securities provided
for herein is not consummated because of any termination pursuant to Section 7 or Section 11
hereof, the Company will reimburse the Underwriters, the Forward Sellers and the Forward
Counterparties severally through the Underwriters or the Forward Sellers, as the case may be, on
demand for all reasonable out-of-pocket expenses (including reasonable fees and disbursements of
counsel) that shall have been incurred by them in connection with the proposed purchase and sale of
the Securities.
9. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Underwriter (including, for this purpose, any affiliated broker-dealer of such
Underwriter participating as an initial seller in the offering of the Securities) and each person,
if any, who controls any Underwriter within the meaning of either Section 15 of the 1933 Act or
Section 20 of the 1934 Act, and each Forward Seller and Forward Counterparty and each person, if
any, who controls any Forward Seller or Forward Counterparty within the meaning of either Section
15 of the 1933 Act or Section 20 of the 1934 Act from and against any and all losses, claims,
damages and liabilities (including, without limitation, any legal or other expenses reasonably
incurred in connection with defending or investigating any such action or claim) caused by any
untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement or any amendment thereof, including the Rule 430B Information, or in the General
Disclosure Package, any preliminary prospectus, any Issuer Free Writing Prospectus or the
Prospectus (as amended or supplemented if the Company shall have furnished any amendments or
supplements thereto), or caused by any omission or alleged omission to state therein a material
fact required to be stated therein (with respect to any preliminary prospectus, any Issuer Free
Writing Prospectus or the Prospectus only, in the light of the circumstances under which they were
made) or necessary to make the statements therein not misleading, except insofar as such losses,
claims, damages or liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information relating to any Underwriter, any Forward Seller
or any Forward Counterparty furnished to the Company in writing by such Underwriter, such Forward
Seller or such Forward Counterparty expressly for use therein.
(b) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Company, its directors, its officers who signed the Registration Statement, and each person, if
any, who controls the Company within the meaning of either Section 15 of the 1933 Act or Section 20
of the 1934 Act, and each Forward Seller and Forward Counterparty and each person, if any, who
controls any Forward Seller or Forward Counterparty within the meaning of either Section 15 of the
1933 Act or Section 20 of the 1934 Act to the same extent as the
23
foregoing indemnity from the Company to each Underwriter, but only with reference to
information relating to such Underwriter furnished to the Company in writing by such Underwriter
expressly for use in the Registration Statement, including the Rule 430B Information, or in the
General Disclosure Package, any preliminary prospectus, any Issuer Free Writing Prospectus, the
Prospectus or any amendments or supplements thereto.
(c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 9(a) or 9(b)
hereof, such person (the indemnified party) shall promptly notify the person against whom such
indemnity may be sought (the indemnifying party) in writing and the indemnifying party shall be
entitled to retain counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such proceeding and shall
pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding,
any indemnified party shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party
and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the
indemnifying party does not promptly retain counsel reasonably satisfactory to the indemnified
party or (iii) the named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and the indemnified party reasonably
concludes that the representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them. It is understood that the indemnifying party
shall not, in respect of the legal expenses of any indemnified party in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all such indemnified parties and
that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be
designated in writing by the Underwriters, in the case of parties indemnified pursuant to Section
9(a) hereof, and by the Company, in the case of parties indemnified pursuant to Section 9(b)
hereof. The indemnifying party 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 from and against
any loss or liability 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 the second and
third sentences of this paragraph, 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 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at least 30 days
prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the date of such
settlement; provided that an indemnifying party shall not be liable for any such settlement
effected without its consent if such indemnifying party (x) reimburses such indemnified party in
accordance with such request to the extent that the indemnifying party in its judgment considers
such request to be reasonable and (y) provides written notice to the indemnified party stating the
reason it deems the unpaid balance unreasonable, in each case no later than 45 days after receipt
by such indemnifying party of the aforesaid request from the indemnified party. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement of
any
24
pending or threatened proceeding in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified party, unless (i)
such settlement includes an unconditional release of such indemnified party from all liability on
claims that are the subject matter of such 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) To the extent the indemnification provided for in Section 9(a) or 9(b) hereof is
unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the indemnifying party on
the one hand and the indemnified party on the other hand from the offering of the Securities or
(ii) if the allocation provided by clause 9(d)(i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause
9(d)(i) above but also the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other hand in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Forward Sellers and the
Underwriters in connection with the offering of the Securities shall be deemed to be in the same
respective proportions as the net proceeds from the offering of the Securities (before deducting
expenses) received by the Company (which benefits shall be deemed equal to the proceeds that would
be received by the Company upon Physical Settlement of the Forward Agreements assuming a Forward
Price (as such term is defined in the Forward Agreements) equal to the Purchase Price of all of the
Securities), the proceeds received by the Underwriters from the sale of the Securities less the
Purchase Price of all of the Securities and the Spread (as such term is defined in the Forward
Agreements) that would be received by the Forward Counterparty affiliated with such Forward Seller
net of any costs incurred by such Forward Counterparty under the relevant Forward Agreement,
respectively, bear to the sum of the aggregate public offering price of the Securities and the
amount of such Spread. The relative fault of the Company, the Forward Sellers and the Underwriters
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company, the Forward Sellers or the Underwriters and the parties
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Underwriters respective obligations to contribute pursuant to this
Section 9 are several in proportion to the respective number of Securities they have purchased
hereunder, and not joint.
(e) The Company, the Forward Sellers and the Underwriters agree that it would not be just or
equitable if contribution pursuant to this Section 9 were determined by pro rata allocation or by
any other method of allocation that does not take account of the equitable considerations referred
to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this
25
Section 9, no Underwriter shall not be required to contribute any amount in excess of the
amount by which the total price at which the Securities underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages that such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The remedies provided for in this Section 9 are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any indemnified party at
law or in equity.
(f) The indemnity and contribution provisions contained in this Section 9 and the
representations, warranties and other statements of the Company contained in this Agreement shall
remain operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of an Underwriter or any person controlling such
Underwriter, by or on behalf of a Forward Seller or any person controlling such Forward Seller or
by or on behalf of the Company, its officers or directors or any person controlling the Company and
(iii) acceptance of and payment for any of the Securities.
10. Default by an Underwriter. If an Underwriter shall fail to purchase and pay for
any of the Securities agreed to be purchased by such Underwriter hereunder and such failure to
purchase shall constitute a default in the performance of its or their obligations under this
Agreement, the remaining Underwriter shall be obligated to take up and pay for the Securities which
the defaulting Underwriter agreed but failed to purchase; provided, however, that
in the event that the aggregate amount of Securities which the defaulting Underwriter agreed but
failed to purchase shall exceed 10% of the aggregate amount of Securities set forth in Schedule
I-A hereto, the remaining Underwriter shall have the right to purchase all, but shall not be
under any obligation to purchase any, of the Securities, and if such nondefaulting Underwriter does
not purchase all the Securities, this Agreement will terminate without liability to the
nondefaulting Underwriter, the Forward Sellers, the Forward Counterparties or the Company. In any
such case the nondefaulting Underwriter, the Company or each Forward Seller shall have the right to
postpone the Closing Date, but in no event for longer than seven days, in order that the required
changes, if any, in the Registration Statement and in the Prospectus or in any other documents or
arrangement may be effected. Nothing contained in this Agreement shall relieve a defaulting
Underwriter of its liability, if any, to the Company and the nondefaulting Underwriter for damages
occasioned by its default hereunder.
11. Termination. This Agreement shall be subject to termination by notice given by
the Underwriters to the Company and each Forward Seller, if after the execution and delivery of
this Agreement and prior to delivery of and payment for the Securities: (i) trading generally shall
have been suspended or materially limited on or by, as the case may be, the NYSE or the Nasdaq
Global Market, (ii) trading of any securities of the Company shall have been suspended on any
exchange or in any over-the-counter market, (iii) a general moratorium on commercial banking
activities in New York shall have been declared by either Federal or New York State authorities or
a material disruption in commercial banking or securities settlement or clearance services has
occurred in the United States, (iv) if the rating assigned by any nationally recognized
statistical rating organization to any securities of the Company as of the date of this Agreement
shall have been lowered since such date or if any such rating
26
organization shall have publicly announced that it has placed any securities of the Company on
what is commonly termed a watch list for possible downgrading, (v) there shall have occurred any
outbreak or escalation of hostilities, declaration by the United States of a national emergency or
war, or other calamity or crisis or any change in national or international political, financial or
economic condition, the effect of which on financial markets is such as to make it, in the sole
judgment of the Underwriters, impractical or inadvisable to proceed with the offering or delivery
of the Securities as contemplated by the Registration Statement, the General Disclosure Package and
the Prospectus (exclusive of any amendment or supplement thereto subsequent to the date of this
Agreement), or (vi) if there has been, since the date of this Agreement or since the respective
dates as of which information is given in the Registration Statement, the General Disclosure
Package or the Prospectus, any Material Adverse Effect.
12. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company, the Forward Sellers,
the Forward Counterparties and the Underwriters set forth in or made pursuant to this Agreement
will remain in full force and effect, regardless of any investigation made by or on behalf of the
Underwriters, any Forward Seller or Forward Counterparty or the Company or any of their respective
officers, directors, employees, agents or controlling persons referred to in Section 9 hereof, and
will survive delivery of and payment for the Securities. The provisions of Sections 8 and 9 hereof
shall survive the termination or cancellation of this Agreement.
13. Additional Issuance and Sale by the Company. (a) In the event that a Forward
Seller does not to deliver for sale the number of Common Shares set forth in Schedule I-B
opposite the name of such Forward Seller under the column captioned Number of Underwritten
Securities to be Sold pursuant to the terms of the applicable Forward Agreement, the Company shall
issue and sell in whole but not in part a number of Common Shares equal to the number of shares
that such Forward Seller does not deliver. The Underwriters shall have the right to postpone the
Closing Date for a period not exceeding one (1) business day in order to effect any required
changes in any documents or arrangements. A Forward Seller shall have no liability whatsoever for
any Securities it does not deliver to the Underwriters or any other party if the applicable Forward
Agreement does not become effective because all of the conditions to effectiveness set forth in
Section 10(a) of the applicable Forward Agreement have not been satisfied.
14. No Fiduciary Relationship. The Company acknowledges and agrees that the
Underwriters are acting solely in the capacity of an arms length contractual counterparty to the
Company with respect to the offering of Securities contemplated hereby (including in connection
with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an
agent of, the Company or any other person. Additionally, the Underwriters are not advising the
Company or any other person as to any legal, tax, investment, accounting or regulatory matters in
any jurisdiction. The Company shall consult with its own advisors concerning such matters and shall
be responsible for making its own independent investigation and appraisal of the transactions
contemplated hereby, and the Underwriters shall have no responsibility or liability to the Company
with respect thereto. Any review by the Underwriters of the Company, the transactions contemplated
hereby or other matters relating to such transactions will be performed solely for the benefit of
the Underwriters and shall not be on behalf of the Company.
27
15. Notices. All communications hereunder will be in writing and, if sent to the
Underwriters and/or the Forward Sellers, will be mailed, delivered or telecopied and confirmed to
(a) Citigroup Global Markets Inc., 388 Greenwich Street, New York, New York 10013, Facsimile: (212)
816-7912 attention of General Counsel or (b) Morgan Stanley & Co. Incorporated, 1585 Broadway, New
York, New York 10036, Attention: Equity Syndicate Desk, with a copy to the Legal Department.
Notices to the Company shall be mailed, delivered or telecopied and confirmed to it at 3300
Enterprise Parkway, Beachwood, Ohio 44122, Attention: General Counsel.
16. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and the controlling persons and directors referred
to in Section 9 hereof, and no other person will have any right or obligation hereunder.
17. Applicable Law. This 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.
18. WAIVER OF JURY TRIAL. THE COMPANY, THE FORWARD SELLERS AND THE UNDERWRITERS
HEREBY IRREVOCABLY WAIVE, 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 OR THE
TRANSACTIONS CONTEMPLATED HEREBY.
19. Counterparts. This Agreement may be signed in one or more counterparts (including
by facsimile), each of which shall constitute an original and all of which together shall
constitute one and the same agreement.
20. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.
28
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, the Forward Sellers and the Underwriters.
Very truly yours, | ||||
DEVELOPERS DIVERSIFIED REALTY CORPORATION | ||||
By: | /s/ David J. Oakes | |||
Name: David J. Oakes | ||||
Title: Senior Executive Vice President & Chief Financial Officer |
29
Citigroup Global Markets Inc., | ||||
Acting in its capacity as Forward Seller and as agent | ||||
CitiBank, N.A. | ||||
By: | /s/ Herman Hirsch | |||
Name: Herman Hirsch | ||||
Title: Managing Director | ||||
CitiBank, N.A., | ||||
Acting in its capacity as Forward Counterparty, | ||||
solely as the recipient and/or beneficiary of certain | ||||
representations, warranties, covenants and | ||||
indemnities set forth in this Agreement | ||||
By: | /s/ James Heathcote | |||
Name: James Heathcote | ||||
Title: Authorized Representative |
30
Morgan Stanley & Co. Incorporated, | ||||
Acting in its capacity as Forward Seller and as agent | ||||
for Morgan Stanley & Co. International plc | ||||
By: | /s/ Tolliver Williams | |||
Name: Tolliver Williams | ||||
Title: Vice President | ||||
Morgan Stanley & Co. International plc | ||||
Acting in its capacity as Forward Counterparty, | ||||
solely as the recipient and/or beneficiary of certain | ||||
representations, warranties, covenants and | ||||
indemnities set forth in this Agreement | ||||
By: | /s/ Rajul Patel | |||
Name: Rajul Patel | ||||
Title: Authorized Signatory |
31
The foregoing Agreement is hereby confirmed and accepted as of the date first above written. | ||||
Citigroup Global Markets Inc. | ||||
By:
|
/s/ John Wieker | |||
Name: John Wieker | ||||
Title: Director | ||||
Morgan Stanley & Co. Incorporated | ||||
By:
|
/s/ Matt Johnson | |||
Name: Matt Johnson | ||||
Title: Executive Director |
32
SCHEDULE I-A
Number of | ||||
Underwritten Securities | ||||
Underwriters | to be Purchased | |||
Citigroup Global Markets Inc. |
4,750,000 | |||
Morgan Stanley & Co. Incorporated |
4,750,000 | |||
Total |
9,500,000 | |||
SCHEDULE I-B
Number of Underwritten | ||||
Name | Securities To Be Sold | |||
Citigroup Global Markets Inc. |
4,750,000 | |||
Morgan Stanley & Co. Incorporated |
4,750,000 |
SCHEDULE II
SPECIFY EACH ISSUER FREE WRITING PROSPECTUS OR OTHER INFORMATION CONVEYED ORALLY BY UNDERWRITERS TO
PURCHASERS INCLUDED IN THE GENERAL DISCLOSURE PACKAGE
PURCHASERS INCLUDED IN THE GENERAL DISCLOSURE PACKAGE
The sale price per share
SCHEDULE III
List of Persons to Sign Lock-up Agreements
Terrance R. Ahern
James C. Boland
Thomas Finne
Paul W. Freddo
Robert H. Gidel
Daniel B. Hurwitz
John S. Kokinchak
Volker Kraft
Victor B. MacFarlane
Craig Macnab
David J. Oakes
Scott D. Roulston
Barry A. Sholem
William B. Summers, Jr.
Christa Vesy
Scott A. Wolstein
James C. Boland
Thomas Finne
Paul W. Freddo
Robert H. Gidel
Daniel B. Hurwitz
John S. Kokinchak
Volker Kraft
Victor B. MacFarlane
Craig Macnab
David J. Oakes
Scott D. Roulston
Barry A. Sholem
William B. Summers, Jr.
Christa Vesy
Scott A. Wolstein
Exhibit A
FORM OF OPINION OF COMPANYS COUNSEL
TO BE DELIVERED PURSUANT TO SECTION 7(f)
TO BE DELIVERED PURSUANT TO SECTION 7(f)
Exhibit B
[Form of Lock-Up Agreement]
March 1, 2011
Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
388 Greenwich Street
New York, New York 10013
Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036
1585 Broadway
New York, New York 10036
Re: Developers Diversified Realty Corporation Lock-Up Agreement
Ladies and Gentlemen:
We refer to the Underwriting Agreement (the Underwriting Agreement), dated March 1, 2011,
between Developers Diversified Realty Corporation, an Ohio corporation (the Company), the Forward
Sellers (as defined therein), the Forward Counterparties (as defined therein) and you as the
Underwriters named therein (the Underwriter), relating to the underwritten public offering (the
Offering) of 9,500,000 (the Shares) common shares, par value $0.10 per share, of the Company
(the Common Shares). Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings ascribed to them in the Underwriting Agreement.
In consideration of the agreement by the Underwriters to offer and sell the Shares, and for
other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged,
the undersigned agrees that, during the period beginning from the date hereof and continuing to and
including the date 45 days after the date of the final Prospectus covering the Offering (the
Lock-Up Period), the undersigned will not offer, sell, contract to sell, pledge, grant any option
to purchase, make any short sale or otherwise dispose of any Common Shares, or any options or
warrants to purchase any Common Shares, or any securities convertible into, exchangeable for or
that represent the right to receive Common Shares, whether now owned or hereinafter acquired, owned
directly by the undersigned (including holding as a custodian) or with respect to which the
undersigned has beneficial ownership within the rules and regulations of the Commission
(collectively, the Undersigneds Shares). In the event that either (x) during the last 17 days
of the Lock-Up Period, the Company issues an earnings release or a press release announcing a
significant event or (y) prior to the expiration of the Lock-Up Period, the Company announces that
the Company will release earnings results or a press release announcing a significant event during
the 17-day period beginning on the last day of the Lock-Up Period, the restrictions described above
shall continue to apply until the expiration of the 17-day period beginning on the first day
following the date of the earnings release or press release, except that such extension will not
apply if, within three business days prior to the 15th calendar day before the last day
of the Lock-Up Period, the Company delivers a certificate, signed by the Chief
Financial Officer or Chief Executive Officer of the Company, certifying on behalf of the
Company that the Common Shares are actively traded securities (as defined in Regulation M).
The foregoing restriction is expressly agreed to preclude the undersigned from engaging in any
hedging or other transaction which is designed to or which reasonably could be expected to lead to
or result in a sale or disposition of the Undersigneds Shares even if such Shares would be
disposed of by someone other than the undersigned. Such prohibited hedging or other transactions
would include without limitation any short sale or any purchase, sale or grant of any right
(including without limitation any put or call option) with respect to any of the Undersigneds
Shares or with respect to any security that includes, relates to, or derives any significant part
of its value from such Shares.
Notwithstanding the foregoing, the undersigned may transfer the Undersigneds Shares (i) as a
bona fide gift or gifts provided that, if the donee thereof is a member of the undersigneds
immediate family, such donee agrees to be bound in writing by the restrictions set forth herein,
(ii) to any trust for the direct or indirect benefit of the undersigned or the immediate family of
the undersigned, provided that the trustee of the trust agrees to be bound in writing by the
restrictions set forth herein, and provided further that any such transfer shall not involve a
disposition for value, (iii) as sales of Common Shares to satisfy tax obligations (withholding or
otherwise) of the undersigned in connection with the grant by the Company to the undersigned of
equity awards, or the vesting of equity awards acquired by the undersigned or the distribution to
the undersigned of a deferred equity award, in each case pursuant to equity incentive and deferral
plans existing and as in effect on the date of this Lock-Up Agreement, [for Scott Wolstein, insert
the following: (iv) pursuant to a written plan for trading securities in effect on the date of
this Lock-Up Agreement, which plan was established pursuant to and in accordance with Rule
10b5-1(c) of the 1934 Act Regulations, it being understood that the undersigned may amend such plan
during the Lock-Up Period as long as such amendment does not take effect prior to the end of the
Lock-Up Period] or [(v)] with the prior written consent of the Underwriters; provided, however,
that in the case of clause (i) or (ii), no such transfer is required to be filed with the
Securities and Exchange Commission pursuant to a Form 4Statement of Changes of Beneficial
Ownership and the undersigned does not otherwise voluntarily effect a filing on such Form 4
regarding such transfer. For purposes of this Lock-Up Agreement, immediate family shall mean any
relationship by blood, marriage or adoption, not more remote than first cousin. For Dan Hurwitz,
insert the following: Further, notwithstanding the foregoing, the undersigned may enter into a
written plan for trading securities established pursuant to and in accordance with Rule 10b5-1 of
the 1934 Act Regulations during the Lock-Up Period, provided that no direct or indirect offers,
sales, agreements to offer or sell, solicitations of offers to purchase, swaps, or other disposals
of, or transactions in, the Undersigneds Shares may be effected pursuant to such plan during the
Lock-Up Period.] In addition, notwithstanding the foregoing, if the undersigned is a corporation,
the corporation may transfer the capital stock of the Company to any wholly-owned subsidiary of
such corporation; provided, however, that in any such case, it shall be a condition to the transfer
that the transferee execute an agreement stating that the transferee is receiving and holding such
capital stock subject to the provisions of this Lock-Up Agreement and there shall be no further
transfer of such capital stock except in accordance with this Lock-Up Agreement; and provided,
further, that any such transfer shall not involve a disposition for value. The undersigned now
has, and, except as contemplated above, for the duration of this Lock-Up Agreement will have, good
and marketable title to the Undersigneds Shares, free and
clear of all liens, encumbrances, and claims whatsoever. The undersigned also agrees and
consents to the entry of stop transfer instructions with the Companys transfer agent and registrar
against the transfer of the Undersigneds Shares except in compliance with the foregoing
restrictions.
The undersigned understands that the Company and the Underwriters are relying upon this
Lock-Up Agreement in proceeding toward consummation of the Offering. The undersigned further
understands that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigneds
heirs, legal representatives, successors, and assigns.
This letter agreement shall be governed by and construed in accordance with the laws of the
State of New York.
Delivery of a signed copy of this letter by telecopier or facsimile transmission shall be
effective as delivery of the original hereof.
Very truly yours, | ||||
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