PROLOGIS Floating Rate Notes due 2009 Underwriting Agreement dated August 21, 2006 CITIGROUP GLOBAL MARKETS INC.
$250,000,000
Floating Rate Notes due 2009
dated August 21, 2006
CITIGROUP GLOBAL MARKETS INC.
August 21, 2006
CITIGROUP GLOBAL MARKETS INC.
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Ladies and Gentlemen:
Introductory. ProLogis, a Maryland real estate investment trust (the “Company”), proposes to
issue and sell to you, as underwriter (the “Underwriter”), $250,000,000 aggregate principal amount
of the Company’s Floating Rate Notes due 2009 (the “Notes”).
The Notes will be issued pursuant to an indenture, dated as of March 1, 1995 (the
“Indenture”), between the Company and U.S. Bank National Association (formerly State Street Bank
and Trust Company), as trustee (the “Trustee”), as supplemented by the first supplemental
indenture, dated as of February 9, 2005 (the “First Supplemental Indenture”), the second
supplemental indenture, dated as of November 2, 2005 (the “Second Supplemental Indenture”) and the
third supplemental indenture, dated as of November 2, 2005 (the “Third Supplemental Indenture” and
together with the Base Indenture, the First Supplemental Indenture and the Second Supplemental
Indenture, the “Indenture”). Certain terms of each series of Notes will be established pursuant to
Board Resolutions (as defined in the Indenture) adopted by the Company pursuant to Section 301 of
the Indenture. The Notes will be issued in book-entry form in the name of Cede & Co., as nominee
of The Depository Trust Company (the “Depositary”), pursuant to a Letter of Representations, dated
December 29, 2003 (as defined in Section 2 below) (the “DTC Agreement”), between the Company and
the Depositary.
The Company has prepared and filed with the Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-3 (File No. 333-132616), which contains a base
prospectus dated August 21, 2006 (the “Base Prospectus”), to be used in connection with the public
offering and sale of debt securities, including the Notes, and other securities of the Company
under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder
(collectively, the “Securities Act”), and the offering thereof from time to time in accordance with
Rule 415 under the Securities Act. Such registration statement, as amended, including the
financial statements, exhibits and schedules thereto, in the form in which it became effective
under the Securities Act, including any required information deemed to be a part thereof at the
time of effectiveness pursuant to Rule 430B under the Securities Act, is called the “Registration
Statement.” The term “Prospectus” shall mean the final prospectus supplement relating to the
Notes, together with the Base Prospectus, that is first filed pursuant to Rule 424(b) after the
date and time that this Agreement is executed and delivered by the parties hereto. Any reference
herein to the Registration Statement or the Prospectus shall be deemed to refer to and include the
documents that are or are deemed to be incorporated by reference therein pursuant to
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Item 12 of Form S-3 under the Securities Act prior to 4:45 p.m. Eastern Daylight Time on
August 21, 2006 (the “Initial Sale Time”). All references in this Agreement to the Registration
Statement, the Prospectus, or any amendments or supplements to any of the foregoing, shall include
any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and
Retrieval System (“▇▇▇▇▇”).
All references in this Agreement to financial statements and schedules and other information
which is “disclosed,” “contained,” “included” or “stated” (or other references of like import) in
the Registration Statement or Prospectus 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 the Registration Statement or Prospectus, as the case may be, prior to the Initial
Sale Time; and all references in this Agreement to amendments or supplements to the Registration
Statement or Prospectus shall be deemed to include the filing of any document under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), which is incorporated by reference in the
Registration Statement or Prospectus, as the case may be, after the Initial Sale Time.
The Notes, together with certain other senior indebtedness of the Company, will have the
benefit of a pledge of certain collateral (the “Collateral”) pursuant to (i) that certain Second
Amended and Restated Borrower Pledge Agreement dated as of October 6, 2005 (the “Borrower Pledge
Agreement”) executed by the Company and Bank of America, N.A., as collateral agent (the “Collateral
Agent”); (ii) each of the separate Subsidiary Pledge Agreements dated as of October 6, 2005
(collectively, the “Subsidiary Pledge Agreements”; and, together with the Borrower Pledge
Agreement, the “U.S. Pledge Agreements”) executed by the Collateral Agent and each of ProLogis
Japan Finance Incorporated, ProLogis Japan Incorporated, ProLogis Development Services
Incorporated, ProLogis Management Incorporated, ProLogis-North Carolina (2) Incorporated,
ProLogis-Monterrey (1) LLC, ProLogis-Monterrey (2) LLC, ProLogis-Reynosa (1) LLC, ProLogis-Reynosa
(2) LLC (such entities being the “U.S. Grantors”), ProLogis KK (the “Japanese Grantor”), ProLogis
China Holding II Srl. (the “Barbados Grantor”); and (iii) that certain Pledge of Intercompany
Receivables dated as of October 6, 2005 executed by PLD Europe Finance B.V., ProLogis UK Funding
B.V., ProLogis UK Finding II B.V. (such entities being the “Dutch Grantors”; and, together with the
Japanese Grantor and the Barbados Grantor, the “Foreign Grantors”; and, together with the U.S.
Grantors, the Japanese Grantor and the Barbados Grantor, the “Subsidiary Grantors”; and the
Subsidiary Grantors together with the Company, the “Grantors”), and the Collateral Agent (the
“Intercompany Pledge Agreement”; and, together with the U.S. Pledge Agreements, the “Pledge
Agreements”) The rights, duties, authority and responsibilities of the Collateral Agent and the
relationship among the Credit Parties (which includes, without limitation, the holders of debt
securities issued under the Indenture, including the Notes) regarding their pari passu interests in
the collateral is governed by that certain Amended and Restated Security Agency Agreement, dated as
of October 6, 2005 (the “Security Agency Agreement”) among the Company, Collateral Agent and Bank
of America, N.A., as Global Administrative Agent (the “Administrative Agent”). The Security Agency
Agreement, the Pledge Agreements and any related security documents are referred to herein
collectively as the “Security Documents.”
The Company hereby confirms its agreement with the Underwriter as follows:
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Section 1. Representations and Warranties. The Company hereby represents, warrants
and covenants to the Underwriter as of the date hereof, as of the Initial Sale Time and as of the
Closing Date (in each case, a “Representation Date”), as follows:
(a) Compliance with Registration Requirements. The Company meets the requirements for use of
Form S-3 under the Securities Act. The Registration Statement has become effective under the
Securities Act and no stop order suspending the effectiveness of the Registration Statement has
been issued under the Securities Act and no proceedings for that purpose have been instituted or
are pending or, to the knowledge of the Company, are contemplated or threatened by the Commission,
and any request on the part of the Commission for additional or supplemental information has been
complied with. In addition, the Indenture has been duly qualified under the Trust Indenture Act of
1939, as amended (the “Trust Indenture Act”).
At the respective times the Registration Statement and any post-effective amendments thereto
(including the filing of the Company’s most recent Annual Report on Form 10-K with the Commission
(the “Annual Report on Form 10-K”)) became effective and at each Representation Date, the
Registration Statement and any amendments thereto (i) complied and will comply in all material
respects with the requirements of the Securities Act and the rules and regulations of the
Commission thereunder (the “Securities Act Regulations”) and the Trust Indenture Act and the rules
and regulations of the Commission thereunder, and (ii) did not and will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. At the Initial Sale Time, at the date of
the Prospectus and at the Closing Date, neither the Prospectus nor any amendments or supplements
thereto included or will include an untrue statement of a material fact or omitted or will omit to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. Notwithstanding the foregoing, the
representations and warranties in this subsection shall not apply to (i) that part of the
Registration Statement which constitutes the Statement of Eligibility on Form T-1 of the Trustee
under the Trust Indenture Act (the “Form T-1”) and (ii) statements in or omissions from the
Registration Statement or any post-effective amendment or the Prospectus or any amendments or
supplements thereto, made in reliance upon and in conformity with information furnished to the
Company in writing by the Underwriter expressly for use therein, it being understood and agreed
that the only such information furnished by the Underwriter consists of the information described
as such in Section 8(b) hereof.
Each preliminary prospectus and prospectus filed as part of the Registration Statement, as
originally filed or as part of any amendment thereto, or filed pursuant to Rule 424 under the
Securities Act, complied when so filed in all material respects with the Securities Act Regulations
and the Prospectus delivered to the Underwriter for use in connection with the offering of the
Notes will, at the time of such delivery, be identical to any electronically transmitted copies
thereof filed with the Commission pursuant to ▇▇▇▇▇, except to the extent permitted by Regulation
S-T.
(b) Incorporated Documents. The documents incorporated or deemed to be incorporated by
reference in the Registration Statement and the Prospectus (i) 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 Exchange Act and the rules and regulations of the Commission
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thereunder (the “Exchange Act Regulations”) and (ii) when read together with the other
information in the Prospectus, at the Initial Sale Time, at the date of the Prospectus and at the
Closing Date, did not and will not include an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
(c) Company is a Well-Known Seasoned Issuer. (i) At the time of filing the Registration
Statement, (ii) at the time of the most recent amendment thereto for the purposes of complying with
Section 10(a)(3) of the Securities Act (whether such amendment was by post-effective amendment,
incorporated report filed pursuant to Section 13 or 15(d) of the Exchange Act or form of
prospectus), (iii) 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 Securities Act) made any offer relating to the Notes in
reliance on the exemption of Rule 163 of the Securities Act, and (iv) as of the date hereof (the
“Execution Time”), the Company was and is a “well known seasoned issuer” as defined in Rule 405 of
the Securities Act. The Registration Statement is an “automatic shelf registration statement,” as
defined in Rule 405 of the Securities Act, that initially became effective within three years of
the Execution Time; the Company has not received from the Commission any notice pursuant to Rule
401(g)(2) of the Securities Act objecting to use of the automatic shelf registration statement
form; and the Company has not otherwise ceased to be eligible to use the automatic shelf
registration statement form.
(d) Company is not an Ineligible Issuer. (i) At the earliest time after the filing of the
Registration Statement when a bona fide offer (as used in Rule 164(h)(2) of the Securities Act
Regulations) of the Notes is first made by the Company or any other offering participant, and (ii)
as of the Execution Time, the Company was not and is not an Ineligible Issuer (as defined in Rule
405 of the Securities Act).
(e) Issuer Free Writing Prospectuses. Each issuer free writing prospectus as defined in Rule
433 of the Securities Act (each, an “Issuer Free Writing Prospectus”), if any, as of its issue date
and at all subsequent times through the completion of the public offer and sale of the Notes or
until any earlier date of which the Company notified or notifies the Underwriter, did not, does not
and will not include any information that conflicted, conflicts or will conflict with the
information contained in the Registration Statement or the Prospectus, including any document
incorporated by reference therein that has not been superseded or modified. The foregoing sentence
does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and
in conformity with written information furnished to the Company by the Underwriter specifically for
use therein, it being understood and agreed that the only such information furnished by the
Underwriter consists of the information described as such in Section 8(b) hereof.
(f) Distribution of Offering Material By the Company. The Company has not distributed and
will not distribute, prior to the later of the Closing Date and the completion of the Underwriter’s
distribution of the Notes, any offering material in connection with the offering and sale of the
Notes other than the Prospectus, any Issuer Free Writing Prospectus reviewed and consented to by
the Underwriter and identified in Annex I hereto or the Registration Statement.
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(g) The Underwriting Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.
(h) Authorization of the Base Indenture. The Base Indenture has been duly qualified under
the Trust Indenture Act and has been duly authorized, executed and delivered by the Company and
constitutes a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles.
(i) Authorization of the Supplemental Indenture. Each of the First Supplemental Indenture,
the Second Supplemental Indenture and the Third Supplemental Indenture has been duly authorized by
the Company and, at the Closing Date, will have been duly executed and delivered by the Company and
will constitute a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights
and remedies of creditors or by general equitable principles.
(j) Authorization of the Notes. The Notes to be purchased by the Underwriter from the
Company are in the form contemplated by the Indenture, have been duly authorized for issuance and
sale pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly
executed by the Company and, when authenticated in the manner provided for in the Indenture and
delivered against payment of the purchase price therefor, will constitute valid and binding
obligations of the Company, enforceable in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
or other similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles, and will be entitled to the benefits of the Indenture.
(k) Authorization of the Pledge Agreements. Each of the Pledge Agreements has been duly
authorized, executed and delivered by the respective Grantor and constitutes a valid and binding
agreement of such Grantor, enforceable against it in accordance with its terms, except as the
enforcement thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of creditors or
by general equitable principles.
(l) Creation of Security Interest. The representations and warranties of each of the
Grantors contained in the respective Pledge Agreement are true and correct with the same force and
effect as if expressly made herein as of the date hereof. The Grantors are the legal and
beneficial owners of the Collateral free and clean of any lien, except for the liens and security
interests created under the Security Documents.
(m) Description of the Notes, the Indenture and the Security Documents. The Notes, the
Indenture and the Security Documents conform in all material respects to the descriptions thereof
contained in the Prospectus.
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(n) No Material Adverse Change. Except as otherwise disclosed in the Prospectus, subsequent
to the respective dates as of which information is given in the Prospectus: (i) there has been no
material adverse change, or any development that could reasonably be expected to result in a
material adverse change, in the condition, financial or otherwise, or in the earnings, business,
operations or prospects, whether or not arising from transactions in the ordinary course of
business, of the Company and its subsidiaries, considered as one entity (any such change is called
a “Material Adverse Change”); (ii) the Company and its subsidiaries, considered as one entity, have
not incurred any material liability or obligation, indirect, direct or contingent, not in the
ordinary course of business or entered into any material transaction or agreement not in the
ordinary course of business; and (iii) except for regular quarterly dividends on the common stock
or shares or preferred stock or shares in amounts per share that are consistent with past practice,
there has been no dividend or distribution of any kind declared, paid or made by the Company or,
except for dividends paid to the Company or other subsidiaries, any of its subsidiaries on any
class of capital stock or shares or repurchase or redemption by the Company or any of its
subsidiaries of any class of capital stock or shares.
(o) Independent Accountants. KPMG LLP, who have expressed their opinion with respect to the
Company’s audited financial statements for the fiscal years ended December 31, 2003, 2004 and 2005
incorporated by reference in the Registration Statement and the Prospectus, are independent public
or certified public accountants within the meaning of Regulation S-X under the Securities Act and
the Exchange Act and a registered public accounting firm within the meaning of the ▇▇▇▇▇▇▇▇-▇▇▇▇▇
Act of 2002. PricewaterhouseCoopers LLP, who have expressed their opinion with respect to the
Catellus Development Corporation’s (“Catellus”) audited financial statements for the fiscal years
ended December 31, 2003 and 2004 incorporated by reference in the Registration Statement and the
Prospectus, were, prior to September 15, 2005 and during the period covered by the financial
statements of Catellus for which they reported, independent public or certified public accountants
with respect to Catellus within the meaning of Regulation S-X under the Securities Act and the
Exchange Act and a registered public accounting firm within the meaning of the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act
of 2002.
(p) Preparation of the Financial Statements. The financial statements together with the
related notes thereto incorporated by reference in the Registration Statement and the Prospectus
present fairly the consolidated financial position of the Company and its subsidiaries and Catellus
and its subsidiaries, as applicable, as of and at the dates indicated and the results of their
operations and cash flows for the periods specified. The supporting schedules included in the
Registration Statement present fairly the information required to be stated therein. Such
financial statements and supporting schedules have been prepared in conformity with generally
accepted accounting principles as applied in the United States applied on a consistent basis
throughout the periods involved, except as may be expressly stated in the related notes thereto.
No other financial statements or supporting schedules are required to be included in the
Registration Statement. The selected financial data and the summary financial information included
in the Prospectus present fairly in all material respects the information shown therein and have
been compiled on a basis consistent with that of the audited financial statements included in the
Registration Statement and the Prospectus. In addition, any pro forma financial statements of the
Company and its subsidiaries and the related notes thereto included in the Registration Statement
and the Prospectus present fairly the information shown therein, have been prepared in all material
respects in accordance with the Commission’s rules and guidelines
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with respect to pro forma financial statements and have been properly compiled on the bases
described therein, and in the opinion of the Company the assumptions used in the preparation
thereof were reasonable at the time made and the adjustments used therein were based upon good
faith estimates and assumptions believed by the Company to be reasonable at the time made.
(q) Incorporation and Good Standing of the Company. The Company has been duly organized and
is validly existing as a real estate investment trust in good standing under the laws of the State
of Maryland and has the trust power and authority to own, lease and operate its properties and to
conduct its business as described in the Prospectus, and to enter into and perform its obligations
under each of this Agreement, the Notes, the Indenture and the Borrower Pledge Agreement. The
Company is duly qualified to transact business and is in good standing in each jurisdiction in
which such qualification is required, whether by reason of the ownership or leasing of property or
the conduct of business, except for such jurisdictions where the failure to so qualify or to be in
good standing would not, individually or in the aggregate, result in a Material Adverse Change.
(r) Incorporation and Good Standing of the Subsidiary Grantors. Each of the Subsidiary
Grantors has been duly incorporated and is validly existing and, to the extent applicable in such
jurisdiction, in good standing under the laws of its jurisdiction of organization and has the power
and authority to own, lease and operate its properties and to conduct its business as described in
the Prospectus, and to enter into and perform its obligations under the respective Pledge
Agreement. Each Subsidiary Grantor is duly qualified to transact business and is in good standing
in each jurisdiction in which such qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except for such jurisdictions where the failure to
so qualify or to be in good standing would not, individually or in the aggregate, result in a
Material Adverse Change.
(s) Incorporation and Good Standing of Significant Subsidiaries. Each subsidiary and joint
venture of the Company listed on Schedule A hereto (collectively, the “Significant Subsidiaries”)
has been duly incorporated or organized, as the case may be, and is validly existing as a
corporation, trust or partnership and (except as to any general partnership) in good standing under
the laws of the jurisdiction of its incorporation or organization, as the case may be, and has the
power (corporate or other) and authority to own, lease and operate its properties and to conduct
its business as described in the Prospectus. Each Significant Subsidiary is duly qualified as a
foreign corporation, trust or partnership to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of the ownership or leasing
of property or the conduct of business, except for such jurisdictions where the failure to so
qualify or to be in good standing would not, individually or in the aggregate, result in a Material
Adverse Change. All of the issued and outstanding capital stock and other equity interests of each
Significant Subsidiary have been duly authorized and validly issued, and are fully paid and (except
for general partnership interests and directors’ qualifying shares) nonassessable; all shares of
outstanding capital stock and other equity interests of each Significant Subsidiary held by the
Company, directly or through subsidiaries, are owned free and clear of any security interest,
mortgage, pledge, lien, encumbrance or claim, except for the pledge of such capital stock or other
interests to secure borrowings of the Company or one of its wholly owned subsidiaries. The
subsidiaries of the Company listed on Schedule A are the only subsidiaries of the Company that are
material to the condition, financial or otherwise, or the
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earnings, business, operations or prospects of the Company and its subsidiaries, considered as
one entity, and include all subsidiaries of the Company, which individually meet the criteria in
the definition of “significant subsidiary” pursuant to Rule 1-02(w) of Regulation S-X under the
Securities Act.
(t) Capital Stock Matters. All of the issued and outstanding shares of beneficial interest
of the Company have been duly authorized and validly issued, are fully paid and nonassessable and
have been issued in compliance with federal and state securities laws.
(u) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required. Neither the Company nor any of its subsidiaries is in violation of its declaration of
trust (or charter or by-laws or other similar constitutive documents), except, in the case of
subsidiaries of the Company, for such violations as would not, individually or in the aggregate,
result in a Material Adverse Change. Neither the Company nor any of its subsidiaries is in default
(or, with the giving of notice or lapse of time or both, would be in default) (“Default”) under any
indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument
to which the Company or any of its subsidiaries is a party or by which it or any of them may be
bound, including the Security Documents, or to which any of the property or assets of the Company
or any of its subsidiaries is subject (each, an “Existing Instrument”), except for such Defaults as
would not, individually or in the aggregate, result in a Material Adverse Change. The Company’s
execution, delivery and performance of this Agreement and the Indenture, and the issuance and
delivery of the Notes, the consummation of the transactions contemplated hereby or thereby and by
the Prospectus and the Grantors’ execution, delivery and performance of the Pledge Agreements (i)
have been duly authorized by all necessary trust, corporate or other action, as the case may be,
and will not result in any violation of the provisions of the declaration of trust (or charter or
by-laws or other similar constitutive documents) of the Grantors or any subsidiary of the Company,
except, in the case of subsidiaries of the Company, for such violations as would not, individually
or in the aggregate, result in a Material Adverse Change, (ii) will not conflict with or constitute
a breach of, or Default under, or result in the creation or imposition of any lien, charge or
encumbrance (other than the lien, charge or encumbrance created by the Pledge Agreements in favor
of the Collateral Agent) upon any property or assets of the Grantors or any of their subsidiaries
pursuant to, or require the consent of any other party to, any Existing Instrument, except for such
conflicts, breaches, Defaults, liens, charges or encumbrances as would not, individually or in the
aggregate, result in a Material Adverse Change and (iii) will not result in any violation of any
law, administrative regulation or administrative or court decree applicable to the Grantors or any
subsidiary of the Company, except for such violation as would not, individually or in the
aggregate, result in a Material Adverse Change. No consent, approval, authorization or other order
of, or registration or filing with, any court or other governmental or regulatory authority or
agency, is required for the Company’s execution, delivery and performance of this Agreement or the
Indenture, or the issuance and delivery of the Notes or consummation of the transactions
contemplated hereby or thereby and by the Prospectus, or the Grantors’ execution, delivery and
performance of the Pledge Agreements, except such as have been obtained or made by the Company or
the Grantors and are in full force and effect under the Securities Act, the Trust Indenture Act and
applicable state securities or blue sky laws and from NASD or the failure of which to obtain would
not result in a Material Adverse Change or have a material adverse effect on the consummation of
the transactions contemplated by this Agreement.
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(v) No Material Actions or Proceedings. Except as otherwise disclosed in the Prospectus,
there are no legal or governmental actions, suits or proceedings pending or, to the best of the
Company’s knowledge, threatened (i) against or affecting the Company or any of its subsidiaries,
(ii) which has as the subject thereof any officer or director of, or property owned or leased by,
the Company or any of its subsidiaries or (iii) relating to environmental or discrimination
matters, where in any such case (A) there is a reasonable possibility that such action, suit or
proceeding might be determined adversely to the Company or such subsidiary and (B) any such action,
suit or proceeding, if so determined adversely, would reasonably be expected to result in a
Material Adverse Change or adversely affect the consummation of the transactions contemplated by
this Agreement. No material labor dispute with the employees of the Company or any of its
subsidiaries exists or, to the best of the Company’s knowledge, is threatened or imminent, except
for such disputes as would not, individually or in the aggregate, result in a Material Adverse
Change.
(w) Intellectual Property Rights. The Company and its subsidiaries own or possess sufficient
trademarks, trade names, patent rights, copyrights, domain names, licenses, approvals, trade
secrets and other similar rights (collectively, “Intellectual Property Rights”) reasonably
necessary to conduct their businesses as now conducted, except as would not result in a Material
Adverse Change; and the expected expiration of any of such Intellectual Property Rights would not
result in a Material Adverse Change. Neither the Company nor any of its subsidiaries has received
any notice of infringement or conflict with asserted Intellectual Property Rights of others, which
infringement or conflict, if the subject of an unfavorable decision, would result in a Material
Adverse Change. The Company is not a party to or bound by any options, licenses or agreements with
respect to the Intellectual Property Rights of any other person or entity that are required to be
set forth in the Registration Statement or the Prospectus, and that are not described in all
material respects in such documents. None of the technology employed by the Company has been
obtained or is being used by the Company in violation of any contractual obligation binding on the
Company or, to the Company’s knowledge, any of its officers, directors or employees or otherwise in
violation of the rights of any persons, except for such violations as would not, individually or in
the aggregate, result in a Material Adverse Change.
(x) All Necessary Permits, etc. The Company and each subsidiary possess such valid and
current certificates, authorizations, permits, licenses, approvals, consents and other
authorizations issued by the appropriate state, federal or foreign regulatory agencies or bodies
necessary to conduct their respective businesses, and neither the Company nor any subsidiary has
received any notice of proceedings relating to the revocation or modification of, or non-compliance
with, any such certificate, authorization, permit, license, approval, consent or other
authorization which, singly or in the aggregate, if the subject of an unfavorable decision, ruling
or finding, could result in a Material Adverse Change.
(y) Title to Properties. Except as otherwise disclosed in the Prospectus, the Company and
each of its subsidiaries has good and marketable title to all the properties and assets reflected
as owned in the financial statements referred to in Section 1(p) above (or elsewhere in the
Prospectus), in each case free and clear of any security interests, mortgages, liens, encumbrances,
equities, claims and other defects, except such as do not materially and adversely affect the value
of such property and do not materially interfere with the use made or proposed to be made of such
property by the Company or such subsidiary. The real property, improvements, equipment
9
and personal property held under lease by the Company or any subsidiary are held under valid
and enforceable leases, with such exceptions as are not material and do not materially interfere
with the use made or proposed to be made of such real property, improvements, equipment or personal
property by the Company or such subsidiary.
(z) Tax Law Compliance. The Company and its subsidiaries have filed all material federal,
state and foreign income and franchise tax returns or have properly requested extensions thereof
and have paid all taxes required to be paid by any of them and, if due and payable, any related or
similar assessment, fine or penalty levied against any of them except as may be being contested in
good faith and by appropriate proceedings. The Company has made adequate charges, accruals and
reserves in the applicable financial statements referred to in Section 1(q) above in respect of all
federal, state and foreign income and franchise taxes for all periods as to which the tax liability
of the Company or any of its subsidiaries has not been finally determined. With respect to all tax
periods in respect of which the Internal Revenue Service is or will be entitled to any claim, the
Company has met the requirements for qualification as a real estate investment trust under Sections
856 through 860 of the Internal Revenue Code of 1986, as amended, and the regulations and published
interpretations thereunder (the “Internal Revenue Code”) and the Company’s present and contemplated
organizational ownership, method of operation, assets and income are such that the Company will
continue to meet such requirements.
(aa) Company Not an “Investment Company.” The Company is not, and after receipt of payment
for the Notes will not be, an “investment company” within the meaning of the Investment Company Act
of 1940, as amended (the “Investment Company Act”).
(bb) Insurance. Each of the Company and its subsidiaries taken as a whole carry or are
covered by insurance in such amounts covering such risks as are generally deemed adequate and
customary for their businesses. The Company has no reason to believe that it or any subsidiary
will not be able (i) to renew its existing insurance coverage as and when such policies expire or
(ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to
conduct its business as now conducted and at a cost that would not result in a Material Adverse
Change.
(cc) No Price Stabilization or Manipulation. The Company has not taken and will not take,
directly or indirectly, any action designed to or that might be reasonably expected to cause or
result in stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of the Notes.
(dd) No Unlawful Contributions or Other Payments. Neither the Company nor any of its
Significant Subsidiaries nor, to the best of the Company’s knowledge, any employee or agent of the
Company or any Significant Subsidiary, has made any contribution or other payment to any official
of, or candidate for, any federal, state or foreign office in violation of any law or of the
character necessary to be disclosed in the Prospectus in order to make the statements therein, in
the light of the circumstances under which such statements were made, not misleading.
(ee) Compliance with Environmental Laws. Except as would not, individually or in the
aggregate, result in a Material Adverse Change (i) neither the Company nor any of its subsidiaries
is in violation of any federal, state, local or foreign law or regulation relating to
10
pollution or protection of human health or the environment (including, without limitation,
ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including
without limitation, laws and regulations relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances,
petroleum and petroleum products (collectively, “Materials of Environmental Concern”), or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Materials of Environmental Concern (collectively, “Environmental Laws”), which
violation includes, but is not limited to, noncompliance with any permits or other governmental
authorizations required for the operation of the business of the Company or its subsidiaries under
applicable Environmental Laws, or noncompliance with the terms and conditions thereof, nor has the
Company or any of its subsidiaries received any written communication, whether from a governmental
authority, citizens group, employee or otherwise, that alleges that the Company or any of its
subsidiaries is in violation of any Environmental Law; (ii) there is no claim, action or cause of
action filed with a court or governmental authority with respect to which the Company has received
written notice, no investigation with respect to which the Company has received written notice, and
no written notice by any person or entity alleging potential liability for investigatory costs,
cleanup costs, governmental responses costs, natural resources damages, property damages, personal
injuries, attorneys’ fees or penalties arising out of, based on or resulting from the presence, or
release into the environment, of any Material of Environmental Concern at any location owned,
leased or operated by the Company or any of its subsidiaries, now or in the past (collectively,
“Environmental Claims”), pending or, to the best of the Company’s knowledge, threatened against the
Company or any of its subsidiaries or any person or entity whose liability for any Environmental
Claim the Company or any of its subsidiaries has retained or assumed either contractually or by
operation of law; and (iii) to the best of the Company’s knowledge, there are no past or present
actions, activities, circumstances, conditions, events or incidents, including, without limitation,
the release, emission, discharge, presence or disposal of any Material of Environmental Concern,
that reasonably could result in a violation of any Environmental Law or form the basis of a
potential Environmental Claim against the Company or any of its subsidiaries or against any person
or entity whose liability for any Environmental Claim the Company or any of its subsidiaries has
retained or assumed either contractually or by operation of law.
(ff) ERISA Compliance. The Company and its subsidiaries and any “employee benefit plan” (as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, and the
regulations and published interpretations thereunder (collectively, “ERISA”)) established or
maintained by the Company, its subsidiaries or their “ERISA Affiliates” (as defined below) are in
compliance in all material respects with ERISA. “ERISA Affiliate” means, with respect to the
Company or a subsidiary, any member of any group of organizations described in Sections 414(b),
(c), (m) or (o) of the Internal Revenue Code, of which the Company or such subsidiary is a member.
No “reportable event” (as defined under ERISA) has occurred or is reasonably expected to occur with
respect to any “employee benefit plan” established or maintained by the Company, its subsidiaries
or any of their ERISA Affiliates. No “employee benefit plan” established or maintained by the
Company, its subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan” were
terminated, would have any “amount of unfunded benefit liabilities” (as defined under ERISA).
Neither the Company, its subsidiaries nor any of their ERISA Affiliates has incurred or reasonably
expects to incur any liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any
11
“employee benefit plan,” (ii) Sections 412, 4971 or 4975 of the Internal Revenue Code, or
(iii) Section 4980B of the Internal Revenue Code with respect to the excise tax imposed thereunder.
Each “employee benefit plan” established or maintained by the Company, its subsidiaries or any of
their ERISA Affiliates that is intended to be qualified under Section 401(a) of the Internal
Revenue Code has received a favorable determination letter from the Internal Revenue Service and
nothing has occurred, whether by action or failure to act, which is reasonably likely to cause
disqualification of any such employee benefit plan under Section 401(a) of the Internal Revenue
Code.
(gg) Company’s Accounting System. The Company and its subsidiaries maintain effective
internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the
Exchange Act.
(hh) Disclosure Controls and Procedures. The Company has established and maintains
disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-14 under the
Exchange Act); such disclosure controls and procedures are designed to ensure that material
information relating to the Company and its subsidiaries is made known to the chief executive
officer and chief financial officer of the Company by others within the Company or any of its
subsidiaries, and such disclosure controls and procedures are reasonably effective to perform the
functions for which they were established subject to the limitations of any such control system;
the Company’s auditors and the audit committee of the board of directors of the Company have been
advised of: (i) any significant deficiencies or material weaknesses in the design or operation of
internal controls which could adversely affect the Company’s ability to record, process, summarize,
and report financial data; and (ii) any fraud, whether or not material, that involves management or
other employees who have a role in the Company’s internal controls; and since the date of the most
recent evaluation of such disclosure controls and procedures, there have been no significant
changes in internal controls or in other factors that could significantly affect internal controls,
including any corrective actions with regard to significant deficiencies and material weaknesses.
(ii) Termination of Guarantee Related to the Notes. The Guarantee Agreement, dated as of
November 12, 2003 executed by the subsidiaries of the Company party thereto (the “Guarantee”) for
the benefit of the Trustee and the holders of any debt securities issued under the Indenture has no
further force or effect and there is not currently existing and, other than the Guarantee, there
never has existed, any other guarantee of any debt securities issued under the Indenture, including
but not limited to the Notes.
Any certificate signed by any officer of the Company or any of its subsidiaries and delivered
to the Underwriter or to counsel for the Underwriter in connection with the offering of the Notes
shall be deemed a representation and warranty by the Company to the Underwriter as to the matters
set forth therein on the date of such certificate and, unless subsequently amended or supplemented,
at each Representation Date subsequent thereto.
The Company acknowledges that the Underwriter and, for purposes of the opinions to be
delivered pursuant to Section 5 hereof, counsel for the Company and counsel for the Underwriter,
will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents
to such reliance.
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Section 2. Purchase, Sale and Delivery of the Notes.
(a) The Notes. The Company agrees to issue and sell to the Underwriter all of the Notes upon
the terms herein set forth. On the basis of the representations, warranties and agreements herein
contained, and upon the terms but subject to the conditions herein set forth, the Underwriter
agrees to purchase from the Company $250,000,000 aggregate principal amount of the Notes offered
hereby at a purchase price of 100% of the principal amount of the Notes, payable on the Closing
Date.
(b) The Closing Date. Delivery of certificates for the Notes in global form to be purchased
by the Underwriter and payment therefor shall be made at the offices of Shearman & Sterling LLP (or
such other place as may be agreed to by the Company and the Underwriter) at 9:00 a.m., New York
City time, on August 24, 2006, or such other time and date as the Underwriter shall designate by
notice to the Company (the time and date of such closing are called the “Closing Date”).
(c) Public Offering of the Notes. The Underwriter hereby advises the Company that the
Underwriter intends to offer the Notes for sale to the public, as described in the Prospectus, as
soon after this Agreement has been executed as the Underwriter, in its sole judgment, has
determined is advisable and practicable.
(d) Payment for the Notes. Payment for the Notes shall be made at the Closing Date by wire
transfer of immediately available funds to the order of the Company.
It is understood that the Underwriter has been authorized, for its own account, to accept
delivery of and receipt for, and make payment of the purchase price for, the Notes.
(e) Delivery of the Notes. The Company shall deliver, or cause to be delivered, to the
Underwriter certificates for the Notes at the Closing Date, against the irrevocable release of a
wire transfer of immediately available funds for the amount of the purchase price therefor. The
certificates for the Notes shall be in such denominations and registered in such names and
denominations as the Underwriter shall have requested at least two full business days prior to the
Closing Date and shall be made available for inspection on the business day preceding the Closing
Date at a location in New York City, as the Underwriter may designate. Time shall be of the
essence, and delivery at the time and place specified in this Agreement is a further condition to
the obligations of the Underwriter.
Section 3. Additional Covenants. The Company further covenants and agrees with the
Underwriter as follows:
(a) Compliance with Securities Regulations and Commission Requests. The Company, subject to
Section 3(b), will comply with the requirements of Rule 430B of the Securities Act Regulations, and
will promptly notify the Underwriter, and confirm the notice in writing, of (i) the effectiveness
of any post-effective amendment to the Registration Statement or the filing of any supplement or
amendment to the Prospectus, (ii) the receipt of any comments from the Commission during the
Prospectus Delivery Period (defined below), (iii) any request by the Commission for any amendment
to the Registration Statement or any amendment or supplement to the Prospectus or for additional
information, and (iv) the issuance by the Commission of any
13
stop order suspending the effectiveness of the Registration Statement or of any order
preventing or suspending the use of the Prospectus, or of the suspension of the qualification of
the Notes for offering or sale in any jurisdiction, or of the initiation or threatening of any
proceedings for any of such purposes. The Company will promptly effect the filings necessary
pursuant to Rule 424 and will take such steps as it deems necessary to ascertain promptly whether
the Prospectus transmitted for filing under Rule 424 was received for filing by the Commission and,
in the event that it was not, it will promptly file such document. The Company will use its best
efforts to prevent the issuance of any stop order and, if any stop order is issued, to obtain the
lifting thereof at the earliest possible moment.
(b) Filing of Amendments. During such period beginning on the date of this Agreement and
ending on the later of the Closing Date or such date as, in the opinion of counsel for the
Underwriter, the Prospectus is no longer required by law to be delivered in connection with sales
of the Notes by an Underwriter or dealer, including in circumstances where such requirement may be
satisfied pursuant to Rule 172 of the Securities Act Regulations (the “Prospectus Delivery
Period”), the Company will give the Underwriter notice of its intention to file or prepare any
amendment to the Registration Statement (including any filing under Rule 462(b) of the Securities
Act Regulations), or any amendment, supplement or revision to the Prospectus, whether pursuant to
the Securities Act, the Exchange Act or otherwise, will furnish the Underwriter with copies of any
such documents a reasonable amount of time prior to such proposed filing or use, as the case may
be, and will not file or use any such document to which the Underwriter or counsel for the
Underwriter shall reasonably object.
(c) Delivery of Registration Statements. The Company will deliver to the Underwriter and
counsel for the Underwriter, without charge, as such Underwriter or counsel for the Underwriters
may reasonably request, signed copies of the Registration Statement as originally filed and of each
amendment thereto (including exhibits filed therewith or incorporated by reference therein and
documents incorporated or deemed to be incorporated by reference therein) and signed copies of all
consents and certificates of experts. The Registration Statement and each amendment thereto
furnished to the Underwriter will be identical to any electronically transmitted copies thereof
filed with the Commission pursuant to ▇▇▇▇▇, except to the extent permitted by Regulation S-T.
(d) Delivery of Prospectuses. The Company will furnish to the Underwriter, without charge,
during the Prospectus Delivery Period, such number of copies of the Prospectus as such Underwriter
may reasonably request. The Prospectus and any amendments or supplements thereto furnished to the
Underwriter will be identical to any electronically transmitted copies thereof filed with the
Commission pursuant to ▇▇▇▇▇, except to the extent permitted by Regulation S-T.
(e) Continued Compliance with Securities Laws. The Company will comply with the Securities
Act and the Securities Act Regulations and the Exchange Act and the Exchange Act Regulations so as
to permit the completion of the distribution of the Notes as contemplated in this Agreement and in
the Registration Statement and the Prospectus. If, during the Prospectus Delivery Period, any
event or development shall occur or condition exist as a result of which the Prospectus as then
amended or supplemented would include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein in the
14
light of the circumstances under which they were made or then prevailing, as the case may be,
not misleading, or if, in the opinion of counsel for the Underwriter or for the Company, it shall
be necessary to amend or supplement the Prospectus, or to file under the Exchange Act any document
incorporated by reference in the Prospectus, in order to make the statements therein, in the light
of the circumstances under which they were made or then prevailing, as the case may be, not
misleading, or if in the opinion of either such counsel, it is otherwise necessary or advisable to
amend or supplement the Registration Statement, the Prospectus, or to file under the Exchange Act
any document incorporated by reference in the Prospectus, or to file a new registration statement
containing the Prospectus, in order to comply with law, including in connection with the delivery
of the Prospectus, the Company agrees to (i) notify the Underwriter of any such event or condition
and (ii) promptly prepare (subject to Section 3(b) and 3(k) hereof), file with the Commission (and
use its best efforts to have any amendment to the Registration Statement or any new registration
statement to be declared effective) and furnish at its own expense to the Underwriter and to
dealers in such quantities as they may reasonably request, amendments or supplements to the
Registration Statement or the Prospectus, or any new registration statement, necessary in order to
make the statements in the Prospectus as so amended or supplemented, in the light of the
circumstances under which they were made or then prevailing, as the case may be, not misleading or
so that the Registration Statement or the Prospectus, as amended or supplemented, will comply with
law.
(f) Blue Sky Compliance. The Company shall cooperate with the Underwriter and counsel for
the Underwriter to qualify or register the Notes for sale under (or obtain exemptions from the
application of) the state securities or blue sky laws of those jurisdictions designated by the
Underwriter, shall comply with such laws and shall continue such qualifications, registrations and
exemptions in effect so long as required for the distribution of the Notes. The Company shall not
be required to qualify to transact business or to take any action that would subject it to general
service of process in any such jurisdiction where it is not presently qualified or where it would
be subject to taxation as a foreign business. The Company will advise the Underwriter promptly of
the suspension of the qualification or registration of (or any such exemption relating to) the
Notes for offering, sale or trading in any jurisdiction or any initiation or threat of any
proceeding for any such purpose, and in the event of the issuance of any order suspending such
qualification, registration or exemption, the Company shall use its best efforts to obtain the
withdrawal thereof at the earliest possible moment.
(g) Use of Proceeds. The Company shall apply the net proceeds from the sale of the Notes
sold by it in the manner described under the caption “Use of Proceeds” in the Prospectus.
(h) Depositary. The Company will cooperate with the Underwriter and use its best efforts to
permit the Notes to be eligible for clearance and settlement through the facilities of the
Depositary.
(i) Periodic Reporting Obligations. During the Prospectus Delivery Period, the Company shall
file, on a timely basis, with the Commission and the New York Stock Exchange all reports and
documents required to be filed under the Exchange Act and the Exchange Act Regulations.
15
(j) Agreement Not to Offer or Sell Additional Securities. During the period commencing on
the date hereof and ending on the Closing Date, the Company will not, without the prior written
consent of the Underwriter (which consent may be withheld at the sole discretion of the
Underwriter), directly or indirectly, sell, offer, contract or grant any option to sell, pledge,
transfer or establish an open “put equivalent position” within the meaning of Rule 16a-1(h) under
the Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any
registration statement under the Securities Act in respect of, any debt securities of the Company
similar to the Notes or securities exchangeable for or convertible into debt securities similar to
the Notes (other than as contemplated by this Agreement with respect to the Notes).
(k) Permitted Free Writing Prospectuses. The Company represents that it has not made, and
agrees that, unless it obtains the prior written consent of the Underwriter, it will not make, any
offer relating to the Notes that would constitute an Issuer Free Writing Prospectus or that would
otherwise constitute a “free writing prospectus” (as defined in Rule 405 of the Securities Act)
required to be filed by the Company with the Commission or retained by the Company under Rule 433
of the Securities Act; provided that the prior written consent of the Underwriter shall be deemed
to have been given in respect of any Issuer Free Writing Prospectuses identified in Annex I to this
Agreement. Any such free writing prospectus consented to or deemed to be consented to by the
Underwriter is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company
agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing
Prospectus as an Issuer Free Writing Prospectus, and (ii) has complied and will comply, as the case
may be, with the requirements of Rules 164 and 433 of the Securities Act applicable to any
Permitted Free Writing Prospectus, including in respect of timely filing with the Commission,
legending and record keeping. The Company consents to the use by the Underwriter of a free writing
prospectus that (a) is not an “issuer free writing prospectus” as defined in Rule 433, and (b)
contains only (i) information describing the preliminary terms of the Notes or their offering or
(ii) information that describes the final terms of the Notes or their offering; provided that the
Underwriter covenants with the Company not to take any action without the Company’s consent that
would result in a free writing prospectus being required to be filed with the Commission under Rule
433(d) under the Securities Act that otherwise would not be required to be filed by the Company
thereunder, but for the action of the Underwriter.
(l) Notice of Inability to Use Automatic Shelf Registration Statement Form. If at any time,
when the Notes remain unsold by the Underwriter, the Company receives from the Commission a notice
pursuant to Rule 401(g)(2) or otherwise ceases to be eligible to use the automatic shelf
registration statement form, the Company will (i) promptly notify the Underwriter, (ii) promptly
file a new registration statement or post-effective amendment on the proper form relating to the
Notes, in a form satisfactory to the Underwriter, (iii) use its best efforts to cause such
registration statement of post-effective amendment to be declared effective and (iv) promptly
notify the Underwriter of such effectiveness. The Company will take all other action necessary or
appropriate to permit the public offering and sale of the Notes to continue as contemplated in the
registration statement that was the subject of the Rule 401(g)(2) notice or for which the Company
has otherwise become ineligible. References herein to the Registration Statement shall include
such new registration statement or post-effective amendment, as the case may be.
16
(m) Filing Fees. The Company agrees to pay the required Commission filing fees relating to
the Notes within the time required by Rule 456(b)(1) of the Securities Act without regard to the
proviso therein and otherwise in accordance with Rules 456(b) and 457(r) of the Securities Act.
The Underwriter may, in its sole discretion, waive in writing the performance by the Company
of any one or more of the foregoing covenants or extend the time for their performance.
Section 4. Payment of Expenses. The Company agrees to pay all costs, fees and
expenses incurred in connection with the performance of its obligations hereunder and in connection
with the transactions contemplated hereby, including without limitation (i) all expenses incident
to the issuance and delivery of the Notes (including all printing and engraving costs), (ii) all
necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the
Notes to the Underwriter, (iii) all fees and expenses of the Company’s counsel, independent public
or certified public accountants and other advisors to the Company, (iv) all costs and expenses
incurred in connection with the preparation, printing, filing, shipping and distribution of the
Registration Statement (including financial statements, exhibits, schedules, consents and
certificates of experts), each Issuer Free Writing Prospectus, the Prospectus, and all amendments
and supplements thereto, and this Agreement, the Indenture, the DTC Agreement and the Notes, (v)
all filing fees, attorneys’ fees and expenses incurred by the Company or the Underwriter in
connection with qualifying or registering (or obtaining exemptions from the qualification or
registration of) all or any part of the Notes for offer and sale under the state securities or blue
sky laws, and, if requested by the Underwriter, preparing a “Blue Sky Survey” or memorandum, and
any supplements thereto, advising the Underwriter of such qualifications, registrations and
exemptions, (vi) the filing fees incident to the review and approval by NASD of the terms of the
sale of the Notes, (vii) the fees and expenses of the Trustee, including the reasonable fees and
disbursements of counsel for the Trustee in connection with the Indenture and the Notes, (viii) any
fees payable in connection with the rating of the Notes with the ratings agencies, (ix) all fees
and expenses (including reasonable fees and expenses of counsel) of the Company in connection with
approval of the Notes by the Depositary for “book-entry” transfer, (x) all other fees, costs and
expenses referred to in Item 14 of Part II of the Registration Statement, and (xi) all other fees,
costs and expenses incurred in connection with the performance of its obligations hereunder for
which provision is not otherwise made in this Section. Except as provided in this Section 4,
Section 6, Section 8 and Section 9 hereof, the Underwriter shall pay its own expenses, including
the fees and disbursements of its counsel.
Section 5. Conditions of the Obligations of the Underwriter. The obligations of the
Underwriter to purchase and pay for the Notes as provided herein on the Closing Date shall be
subject to the accuracy of the representations and warranties on the part of the Company set forth
in Section 1 hereof as of the date hereof, as of the Initial Sale Time, and as of the Closing Date
as though then made and to the timely performance by the Company of its covenants and other
obligations hereunder, and to each of the following additional conditions:
(a) Effectiveness of Registration Statement. The Registration Statement shall have become
effective under the Securities Act and no stop order suspending the effectiveness of the
Registration Statement shall have been issued under the Securities Act and no proceedings for
17
that purpose shall have been instituted or be pending or threatened by the Commission, any
request on the part of the Commission for additional information shall have been complied with to
the reasonable satisfaction of counsel to the Underwriter and the Company, at the Execution Time,
shall not have received from the Commission any notice pursuant to Rule 401(g)(2) of the Securities
Act objecting to use of the automatic shelf registration statement form. The Prospectus shall have
been filed with the Commission in accordance with Rule 424(b)(1), (2), (3), (4), (5) or (8), as
applicable (or any required post-effective amendment providing such information shall have been
filed and declared effective in accordance with the requirements of Rule 430A).
(b) Accountants’ Comfort Letter. On the date hereof, the Underwriter shall have received
from KPMG LLP, independent public or certified public accountants for the Company, a letter dated
the date hereof addressed to the Underwriter, in form and substance satisfactory to the Underwriter
with respect to the audited and unaudited financial statements and certain financial information
contained in the Registration Statement and the Prospectus.
(c) Bring-down Comfort Letter. On the Closing Date, the Underwriter shall have received from
KPMG LLP, independent public or certified public accountants for the Company, a letter dated such
date, in form and substance satisfactory to the Underwriter, to the effect that they reaffirm the
statements made in the letter furnished by them pursuant to subsection (b) of this Section 5,
except that the specified date referred to therein for the carrying out of procedures shall be no
more than three business days prior to the Closing Date.
(d) No Objection. If the Registration Statement and/or the offering of the Notes has been
filed with NASD for review, NASD shall not have raised any objection with respect to the fairness
and reasonableness of the underwriting terms and arrangements..
(e) No Material Adverse Change or Ratings Agency Change. For the period from and after the
date of this Agreement and prior to the Closing Date:
(i) in the judgment of the Underwriter there shall not have occurred any Material
Adverse Change; and
(ii) 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
securities of the Company or any of its subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436(g)(2)
under the Securities Act.
(f) Opinion of Counsel for the Company. On the Closing Date, the Underwriter shall have
received the favorable opinion of ▇▇▇▇▇, ▇▇▇▇▇, ▇▇▇▇ & Maw LLP, counsel for the Company, dated as
of such Closing Date, the form of which is attached as Exhibit A.
(g) Opinion of General Counsel of the Company. On the Closing Date, the Underwriter shall
have received the favorable opinion of ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Managing Director, General Counsel and
Secretary of the Company, dated as of such Closing Date, the form of which is attached as Exhibit
B.
18
(h) Opinion of Counsel for Collateral Agent and Administrative Agent. On the Closing Date,
the Underwriter shall have received the favorable opinion of ▇▇▇▇▇▇ and ▇▇▇▇▇, LLP, counsel to the
Collateral Agent and the Administrative Agent, dated as of such Closing Date, substantially to the
effect as set forth in Exhibit C.
(i) Opinion of Counsel for the Dutch Grantors. On the Closing Date, the Underwriter shall
have received the favorable opinion of Weidema van ▇▇▇, counsel to the Dutch Grantors, dated as of
such Closing Date, in the form delivered to the lenders in connection with the execution of the
global senior credit agreement, dated as of October 6, 2005, by and among the Company, certain
other borrowers, Bank of America, N.A., ABN Amro Bank N.V. and Sumitomo Mitsui Banking Corporation
(the “Global Senior Credit Agreement”), except that such counsel need not opine as to the due
authorization, execution and delivery of the Global Senior Credit Agreement.
(j) Opinion of Counsel for the Japanese Grantor. On the Closing Date, the Underwriter shall
have received the favorable opinion of ▇▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇▇▇▇, counsel to the Japanese Grantor,
dated as of such Closing Date, in the form delivered to the lenders in connection with the
execution of the Global Senior Credit Agreement, except that such counsel need not opine as to the
due authorization, execution and delivery of the Global Senior Credit Agreement.
(k) Opinion of Counsel for the Underwriter. On the Closing Date, the Underwriter shall have
received the favorable opinion of ▇▇▇▇▇▇▇▇ & Sterling LLP, counsel for the Underwriters, dated as
of such Closing Date, with respect to such matters as may be reasonably requested by the
Underwriter.
(l) Officers’ Certificate. On the Closing Date, the Underwriter shall have received a
written certificate executed by the Chief Executive Officer, President, Chief Operating Officer or
a Managing Director of the Company and the Chief Financial Officer or Chief Accounting Officer of
the Company, dated as of such Closing Date, to the effect that:
(i) the Company has received no stop order suspending the effectiveness of the
Registration Statement, and no proceedings for such purpose have been instituted or
threatened by the Commission;
(ii) the Company has not received from the Commission any notice pursuant to Rule
401(g)(2) of the Securities Act objecting to use of the automatic shelf registration
statement form;
(iii) there has not occurred any downgrading, and the Company has not received any
notice 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
securities of the Company or any of its subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436(g)(2)
under the Securities Act;
(iv) for the period from and after the date of this Agreement and prior to such
Closing Date, there has not occurred any Material Adverse Change;
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(v) the representations, warranties and covenants of the Company set forth in Section
1 of this Agreement are true and correct with the same force and effect as though expressly
made on and as of such Closing Date; and
(vi) the Company has complied with all the agreements hereunder and satisfied all the
conditions on its part to be performed or satisfied hereunder at or prior to such Closing
Date.
(m) Additional Documents. On or before the Closing Date, the Underwriter and counsel for the
Underwriter shall have received such information, documents and opinions as they may reasonably
require for the purposes of enabling them to pass upon the issuance and sale of the Notes as
contemplated herein, or in order to evidence the accuracy of any of the representations and
warranties, or the satisfaction of any of the conditions or agreements, herein contained.
If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Underwriter by notice to the Company at any time
on or prior to the Closing Date, which termination shall be without liability on the part of any
party to any other party, except that Section 4, Section 6, Section 8 and Section 9 shall at all
times be effective and shall survive such termination.
Section 6. Reimbursement of Underwriter’s Expenses. If this Agreement is terminated
by the Underwriter pursuant to Section 5 or Section 11, or if the sale to the Underwriter of the
Notes on the Closing Date is not consummated because of any refusal, inability or failure on the
part of the Company to perform any agreement herein or to comply with any provision hereof, the
Company agrees to reimburse the Underwriter upon demand for all out-of-pocket expenses that shall
have been reasonably incurred by the Underwriter in connection with the proposed purchase and the
offering and sale of the Notes, including but not limited to reasonable fees and disbursements of
counsel, printing expenses, travel expenses, postage, facsimile and telephone charges.
Section 7. Offering Restrictions.
In relation to each Member State of the European Economic Area which has implemented the
Prospectus Directive (each, a Relevant Member State), the Underwriter represents and agrees that
with effect from and including the date on which the Prospectus Directive is implemented in that
Relevant Member State (the Relevant Implementation Date) it has not made and will not make an offer
of the Notes to the public in that Relevant Member State prior to the publication of a prospectus
in relation to the Notes which has been approved by the competent authority in that Relevant Member
State or, where appropriate, approved in another Relevant Member State and notified to the
competent authority in that Relevant Member State, all in accordance with the Prospectus Directive,
except that it may, with effect from and including the Relevant Implementation Date, make an offer
of the Notes to the public in that Relevant Member State at any time:
(a) to legal entities which are authorised or regulated to operate in the financial markets
or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities;
20
(b) to any legal entity which has two or more of (1) an average of at least 250 employees
during the last financial year; (2) a total balance sheet of more than €43,000,000 and (3) an
annual net turnover of more than €50,000,000, as shown in its last annual or consolidated
accounts; or
(c) in any other circumstances which do not require the publication by the Issuer of a
prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an “offer of notes to the public” in
relation to any Notes in any Relevant Member State means the communication in any form and by any
means of sufficient information on the terms of the offer and the Notes to be offered so as to
enable an investor to decide to purchase or subscribe the Notes, as the same may be varied in that
Member State by any measure implementing the Prospectus Directive in that Member State and the
expression Prospectus Directive means Directive 2003/71/ EC and includes any relevant implementing
measure in each Relevant Member State.
The Underwriter further represents and agrees that:
(a) it has only communicated or caused to be communicated and will only communicate or cause
to be communicated an invitation or inducement to engage in investment activity (within the meaning
of Section 21 of the Financial Services and Markets Act 2000 (“FSMA”)) received by it in connection
with the issue or sale of the notes in circumstances in which Section 21(1) of the FSMA would not,
if the Issuer was not an authorised person, apply to the Company; and
(b) it has complied and will comply with all applicable provisions of the FSMA with respect
to anything done by it in relation to the notes in, from or otherwise involving the United Kingdom.
Section 8. Indemnification.
(a) Indemnification of the Underwriter. The Company agrees to indemnify and hold harmless
the Underwriter, its officers and employees, and each person, if any, who controls the Underwriter
within the meaning of the Securities Act and the Exchange Act against any loss, claim, damage,
liability or expense, as incurred, to which such Underwriter or such officer, employee or
controlling person may become subject, under the Securities Act, the Exchange Act or other federal
or state statutory law or regulation, or at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of the Company), insofar as
such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated
below) arises out of or is based (i) upon any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement (or any amendment thereto) or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to make
the statements therein not misleading; or (ii) upon any untrue statement or alleged untrue
statement of a material fact contained in any Issuer Free Writing Prospectus or the Prospectus (or
any amendment or supplement thereto) or the omission or alleged omission therefrom of a material
fact, in each case, necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or (iii) in whole or in
21
part upon any inaccuracy in the representations and warranties of the Company contained
herein; or (iv) in whole or in part upon any failure of the Company to perform its obligations
hereunder or under law; and to reimburse the Underwriter and each such officer, employee and
controlling person for any and all expenses (including the reasonable fees and disbursements of
counsel chosen by the Underwriter) as such expenses are reasonably incurred by such Underwriter or
such officer, employee or controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, arising out of or based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by the Underwriter expressly for use
in the Registration Statement (or any amendment thereto), any Issuer Free Writing Prospectus or the
Prospectus (or any amendment or supplement thereto). The indemnity agreement set forth in this
Section 8(a) shall be in addition to any liabilities that the Company may otherwise have.
(b) Indemnification of the Company, its Directors and Officers. The Underwriter agrees to
indemnify and hold harmless the Company, each of its trustees, each of its officers who signed the
Registration Statement and each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act, against any loss, claim, damage, liability or expense, as
incurred, to which the Company or any such trustee, officer or controlling person may become
subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or
regulation, or at common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of such Underwriter), insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or
is based upon any untrue or alleged untrue statement of a material fact contained in the
Registration Statement, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or
supplement thereto), or arises out of or is based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the Registration Statement,
any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), in
reliance upon and in conformity with written information furnished to the Company by the
Underwriter expressly for use therein; and to reimburse the Company, or any such trustee, officer
or controlling person for any legal and other expense reasonably incurred by the Company, or any
such director, officer or controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action. The Company
hereby acknowledges that the only information that the Underwriter has furnished to the Company
expressly for use in the Registration Statement, any Issuer Free Writing Prospectus or the
Prospectus (or any amendment or supplement thereto) are the statements set forth in the third
paragraph and the seventh paragraph under the caption “Underwriting” in the Prospectus; and the
Underwriter confirms that such statements are correct. The indemnity agreement set forth in this
Section 8(b) shall be in addition to any liabilities that the Underwriter may otherwise have.
(c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action, such
22
indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party under this Section 8, notify the indemnifying party in writing of the commencement thereof,
but the omission so to notify the indemnifying party will not relieve it from any liability which
it may have to any indemnified party for contribution or otherwise than under the indemnity
agreement contained in this Section 8 or to the extent it is not prejudiced as a proximate result
of such failure. In case any such action is brought against any indemnified party and such
indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying
party will be entitled to participate in, and, to the extent that it shall elect, jointly with all
other indemnifying parties similarly notified, by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to assume the defense
thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the
defendants in any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that a conflict may arise between the positions
of the indemnifying party and the indemnified party in conducting the defense of any such action or
that there may be legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party, the indemnified party or
parties shall have the right to select separate counsel to assume such legal defenses and to
otherwise participate in the defense of such action on behalf of such indemnified party or parties.
Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying
party’s election so to assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party under this Section 8
for any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one separate counsel (together
with local counsel), approved by the indemnifying party (the Underwriter in the case of Section
8(b) and Section 9), representing the indemnified parties who are parties to such action) or (ii)
the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified
party to represent the indemnified party within a reasonable time after notice of commencement of
the action, in each of which cases the fees and expenses of counsel shall be at the expense of the
indemnifying party.
(d) Settlements. The indemnifying party under this Section 8 shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel as contemplated by Section 8(c) hereof, the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected without its written consent if (i)
such settlement is entered into more than 60 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party
in accordance with such request prior to the date of such settlement; provided, that if it is
ultimately determined that an indemnified party was not entitled to indemnification hereunder, such
indemnified party shall be responsible for repaying or reimbursing such amounts to the indemnifying
party. No indemnifying party shall, without the prior written consent of the
23
indemnified party, effect any settlement, compromise or consent to the entry of judgment in
any pending or threatened action, suit or proceeding in respect of which any indemnified party is
or could have been a party and indemnity was or could have been sought hereunder by such
indemnified party, unless such settlement, compromise or consent includes an unconditional release
of such indemnified party from all liability on claims that are the subject matter of such action,
suit or proceeding.
Section 9. Contribution. If the indemnification provided for in Section 8 is for
any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified
party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then
each indemnifying party shall contribute to the aggregate amount paid or payable by such
indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses
referred to therein in such proportion as is appropriate to reflect the relative fault of the
Company, on the one hand, and the Underwriter, on the other hand, in connection with the statements
or omissions or inaccuracies in the representations and warranties herein which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and the Underwriter, on the
other hand, shall be determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material
fact or any such inaccurate or alleged inaccurate representation or warranty relates to information
supplied by the Company, on the one hand, or the Underwriter, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.
The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 8(c), any legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim. The provisions set forth in Section 8(c) with
respect to notice of commencement of any action shall apply if a claim for contribution is to be
made under this Section 9; provided, however, that no additional notice shall be required with
respect to any action for which notice has been given under Section 8(c) for purposes of
indemnification.
The Company and the Underwriter agree that it would not be just and equitable if contribution
pursuant to this Section 9 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in this Section
9.
Notwithstanding the provisions of this Section 9, the Underwriter shall not be required to
contribute any amount in excess of the underwriting commissions deemed to be received by the
Underwriter in connection with the Notes underwritten by it and distributed to the public. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 9, each officer and employee of the
Underwriter and each person, if any, who controls an Underwriter within the meaning of the
Securities Act and the Exchange Act shall have the same rights to contribution as such Underwriter,
and each trustee of the Company, each officer of the Company who signed the
24
Registration Statement, and each person, if any, who controls the Company with the meaning of
the Securities Act and the Exchange Act shall have the same rights to contribution as the Company.
Section 10. Termination of this Agreement. Prior to the Closing Date, this
Agreement may be terminated by the Underwriter by notice given to the Company if at any time (i)
trading or quotation in any of the Company’s securities shall have been suspended or limited by the
Commission or by the New York Stock Exchange, or trading in securities generally on either the
Nasdaq Stock Market or the New York Stock Exchange shall have been suspended or limited, or minimum
or maximum prices shall have been generally established on any of such stock exchanges by the
Commission or NASD; (ii) a general banking moratorium shall have been declared by any of federal or
New York authorities; (iii) there shall have occurred any outbreak or escalation of national or
international hostilities or any crisis or calamity involving the United States, or any change in
the United States or international financial markets, or any substantial change or development
involving a prospective substantial change in United States’ or international political, financial
or economic conditions, as in the judgment of the Underwriter is material and adverse and makes it
impracticable or inadvisable to market the Notes in the manner and on the terms described in the
Prospectus or to enforce contracts for the sale of securities; (iv) in the judgment of the
Underwriter there shall have occurred any Material Adverse Change; or (v) there shall have occurred
a material disruption in commercial banking or securities settlement or clearance services in the
United States. Any termination pursuant to this Section 11 shall be without liability on the part
of (a) the Company to the Underwriter, except that the Company shall be obligated to reimburse the
expenses of the Underwriter pursuant to Sections 4 and 6 hereof, (b) the Underwriter to the
Company, or (c) of any party hereto to any other party except that the provisions of Section 8 and
Section 9 shall at all times be effective and shall survive such termination.
Section 12. Representations and Indemnities to Survive Delivery. The respective
indemnities, agreements, representations, warranties and other statements of the Company, of its
officers and of the Underwriter 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 Underwriter or the
Company or any of its or their partners, officers or directors or any controlling person, as the
case may be, and will survive delivery of and payment for the Notes sold hereunder and any
termination of this Agreement.
Section 13. Notices. All communications hereunder shall be in writing and shall be
mailed, hand delivered or telecopied and confirmed to the parties hereto as follows:
If to the Underwriter:
Citigroup Global Markets Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: General Counsel
Attention: General Counsel
25
with a copy to:
Shearman & Sterling LLP
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
If to the Company:
ProLogis
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
with a copy to:
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ & Maw LLP
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Any party hereto may change the address for receipt of communications by giving written notice
to the others.
Section 14. Successors. This Agreement will inure to the benefit of and be binding
upon the parties hereto, and to the benefit of the employees, officers and directors and
controlling persons referred to in Section 8 and Section 9, and in each case their respective
successors, and no other person will have any right or obligation hereunder. The term “successors”
shall not include any purchaser of the Notes as such from the Underwriter merely by reason of such
purchase.
Section 15. Partial Unenforceability. The invalidity or unenforceability of any
Section, paragraph or provision of this Agreement shall not affect the validity or enforceability
of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of
this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed
to be made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.
26
Section 16. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE.
Section 17. No Fiduciary Duty. The Company acknowledges and agrees that: (i) the
purchase and sale of the Notes pursuant to this Agreement, including the determination of the
public offering price of the Notes and any related discounts and commissions, is an arm’s-length
commercial transaction between the Company, on the one hand, and the Underwriter, on the other
hand, and the Company is capable of evaluating and understanding and understands and accepts the
terms, risks and conditions of the transactions contemplated by this Agreement; (ii) in connection
with each transaction contemplated hereby and the process leading to such transaction the
Underwriter is and has been acting solely as a principal and is not the financial advisor, agent or
fiduciary of the Company or its affiliates, stockholders, creditors or employees or any other
party; (iii) the Underwriter has not assumed or will not assume an advisory, agency or fiduciary
responsibility in favor of the Company with respect to any of the transactions contemplated hereby
or the process leading thereto (irrespective of whether such Underwriter has advised or is
currently advising the Company on other matters) and the Underwriter has no obligation to the
Company with respect to the offering contemplated hereby except the obligations expressly set forth
in this Agreement; (iv) the Underwriter and its affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Company and that the Underwriter
has no obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary
relationship; and (v) the Underwriter has not provided any legal, accounting, regulatory or tax
advice with respect to the offering contemplated hereby and the Company has consulted its own
legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.
This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company and the Underwriter with respect to the subject matter hereof. The Company
hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may
have against the Underwriter with respect to any breach or alleged breach of agency or fiduciary
duty.
Section 18. General Provisions. This Agreement may be executed in two or more
counterparts, each one of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. This Agreement may not be amended or modified
unless in writing by all of the parties hereto, and no condition herein (express or implied) may be
waived unless waived in writing by each party whom the condition is meant to benefit. The Table of
Contents and the Section headings herein are for the convenience of the parties only and shall not
affect the construction or interpretation of this Agreement.
Each of the parties hereto acknowledges that it is a sophisticated business person who was
adequately represented by counsel during negotiations regarding the provisions hereof, including,
without limitation, the indemnification provisions of Section 8 and the contribution provisions of
Section 9, and is fully informed regarding said provisions. Each of the parties hereto further
acknowledges that the provisions of Sections 8 and 9 hereto fairly allocate the risks in light of
the ability of the parties to investigate the Company, its affairs and its business in order to
assure that adequate disclosure has been made in the Registration Statement and the
Prospectus (and any amendments and supplements thereto), as required by the Securities Act and
the Exchange Act.
27
If the foregoing is in accordance with your understanding of our agreement, kindly sign
and return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.
| Very truly yours, | ||||||
| PROLOGIS | ||||||
| By: | /s/ ▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇. | |||||
| Name: ▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇. | ||||||
| Title: Senior Vice President & Treasurer | ||||||
The foregoing Underwriting Agreement is hereby confirmed and accepted by the
Underwriter as of the date first above written.
| CITIGROUP GLOBAL MARKETS INC. | ||||
By: |
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇ | |||
| Name: ▇▇▇▇▇ ▇▇▇▇▇▇ | ||||
| Title: Vice President | ||||
SCHEDULE A
LIST OF SIGNIFICANT SUBSIDIARIES
Palmtree Acquisition Corporation
PLD International Incorporated
ProLogis Japan Incorporated
TCL Holdings S.A.
PLD International Incorporated
ProLogis Japan Incorporated
TCL Holdings S.A.
Sched. A-1
ANNEX I
ProLogis—Issuer Free Writing Prospectuses
None.
Annex A-1
EXHIBIT A
Opinion of counsel for the Company to be delivered pursuant to Section 5(f) of the
Underwriting Agreement.
References to the Prospectus in this Exhibit A include any supplements thereto at the Closing
Date.
(i) The Company has been duly organized and is validly existing as a real estate investment
trust in good standing under the laws of the State of Maryland and has the trust power and
authority to own, lease and operate its properties and to conduct its business as described in the
Prospectus and to enter into and perform its obligations under each of this Agreement, the Notes,
the Indenture and the Borrower Pledge Agreement. The Company is duly qualified to transact
business and is in good standing in each jurisdiction in which such qualification is required,
whether by reason of the ownership or leasing of property or the conduct of business, except for
such jurisdictions where the failure to so qualify or to be in good standing would not,
individually or in the aggregate, result in a Material Adverse Change.
(ii) Each of the U.S. Grantors has been duly organized and is validly existing and in good
standing under the laws of its jurisdiction of organization and has the power and authority to own,
lease and operate its properties and to conduct its business as described in the Prospectus and to
enter into and perform its obligations under its respective Pledge Agreement. Each U.S. Grantor is
duly qualified to transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the conduct
of business, except for such jurisdictions where the failure to so qualify or to be in good
standing would not, individually or in the aggregate, result in a Material Adverse Change.
(iii) This Agreement has been duly authorized, executed and delivered by the Company.
(iv) The Base Indenture has been duly qualified under the Trust Indenture Act and has been
duly authorized, executed and delivered by the Company and constitutes a valid and binding
agreement of the Company, enforceable against the Company in accordance with its terms, except as
the enforcement thereof may be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or other similar laws relating to or affecting the rights and remedies
of creditors or by general equitable principles.
(v) Each of the First Supplemental Indenture, the Second Supplemental Indenture and the Third
Supplemental Indenture has been duly authorized, executed and delivered by the Company and
constitutes a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles.
(vi) The Notes have been duly authorized for issuance and sale pursuant to this Agreement and
the Indenture and, when executed by the Company and authenticated by the Trustee in the manner
provided for in the Indenture and delivered against payment of the purchase price therefor in
accordance with the terms of this Agreement, will constitute valid and binding obligations of the
Company, enforceable in accordance with their terms, except as the
A-1
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles, and will be entitled to the benefits of the Indenture.
(vii) Each of the Pledge Agreements has been duly authorized, executed and delivered by the
respective Grantor and constitutes a valid and binding agreement of such Grantor, enforceable
against it in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable principles.
(viii) The Security Agency Agreement has been duly authorized, executed and delivered by the
Company and constitutes a valid and binding agreement of the Company, enforceable against it in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles. In rendering
such opinion, such counsel need only opine as to the enforceability against the Company of Section
9(c) thereof.
(ix) Each Pledge Agreement is effective to create a security interest under Article 9 of the
Uniform Commercial Code as currently in effect in the State of New York (the “UCC”) to the extent a
security interest can be created thereunder in the collateral covered thereby (any such collateral,
“Article 9 Collateral”).
(x) Pursuant to Section 9-301 of the UCC, the local law of the jurisdiction where instruments
are actually located governs perfection of a possessory security interest in such instruments.
Assuming the Collateral Agent takes and retains possession (as such term is used in Section
9-313(a) of the UCC) in the State of New York of the instruments pledged to the Collateral Agent
pursuant to each Pledge Agreement (the “Pledged Notes”), and further assuming the Pledged Notes are
each duly indorsed to the Collateral Agent or in blank by an effective indorsement, the Collateral
Agent’s security interest in the rights of the Company and the applicable U.S. Grantors and Foreign
Grantors (each a “Pledgor”) in the Pledged Notes will be perfected under the UCC.
(xi) Under the UCC (including the choice of laws provisions thereof), the local law of the
jurisdiction where a debtor is “located” governs (with certain exceptions not relevant to this
opinion) perfection of a nonpossessory security interest in any Article 9 Collateral in which a
security interest may be perfected by filing a financing statement under the Uniform Commercial
Code as in effect in the U.S. State of filing (any such collateral, “Filing Collateral”). Under
the UCC (including the choice of laws provisions thereof), (1) the U.S. State that is the
jurisdiction of formation of the Company or a U.S. Grantor (a “Formation State”) is the “location”
for the Company or such U.S. Grantor and, therefore, the local laws of such Formation State govern
perfection by the filing of financing statements of a security interest in the Company’s or such
U.S. Grantor’s rights in its Filing Collateral and (2) assuming that each Foreign Grantor’s only
place of business or its chief executive office is located in the country in which such Foreign
Grantor was organized or formed and the law of such country does not require information concerning
the existence of a nonpossessory security interest to be made generally available in a
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filing, recording or registration system as a condition or result of the security interest’s
obtaining priority over the rights of a lien creditor with respect to such Foreign Grantor’s
Article 9 Collateral (as to which we express no opinion), then the District of Columbia is the
“location” of such Foreign Grantor and, therefore, the local laws of the District of Columbia
govern perfection by the filing of financing statements of a security interest in such Foreign
Grantor’s rights in its Filing Collateral. Accordingly, the security interest of the Collateral
Agent in the Filing Collateral of such Foreign Grantor is perfected under the Uniform Commercial
Code as currently in effect in the District of Columbia.
(xii) The Registration Statement became effective upon filing with the Commission pursuant to
Rule 462(e) under the Securities Act. To the best knowledge of such counsel, no stop order
suspending the effectiveness of the Registration Statement has been issued under the Securities Act
and no proceedings for such purpose have been instituted or are pending or are contemplated or
threatened by the Commission. Any required filing of the Prospectus and any supplement thereto
pursuant to Rule 424(b) under the Securities Act has been made in the manner and within the time
period required by such Rule 424(b).
(xiii) The Registration Statement, including any document incorporated by reference therein,
and each amendment or supplement to the Registration Statement and the Prospectus, including any
document incorporated by reference therein (other than the financial statements and supporting
schedules included or incorporated by reference therein or in exhibits to or excluded from the
Registration Statement and other than the Form T-1, as to which no opinion need be rendered), when
they became effective or were filed with the Commission, as the case may be, complied as to form in
all material respects with the applicable requirements of the Securities Act, the Exchange Act and
the Trust Indenture Act.
(xiv) The Notes, the Indenture and the Security Documents conform in all material respects to
the descriptions thereof contained in the Prospectus.
(xv) The statements (A) in the Base Prospectus under the captions “Risk Factors—Federal
Income Tax Risks,” “Description of Debt Securities” and “Federal Income Tax Considerations” (B) in
the Prospectus Supplement under the caption “Description of the Notes” and (C) incorporated by
reference in the Prospectus from Item 3 of Part I of the Company’s Annual Report on Form 10-K, and
(D) in the Item 15 of the Registration Statement, in each case insofar as such statements
constitute a summary of the legal matters, documents or proceedings referred to therein has been
reviewed by such counsel and fairly present and summarize, in all material respects, the matters
referred to therein.
(xvi) No consent, approval, authorization or other order of, or registration or filing with,
any court or other governmental authority or agency, is required for the Company’s execution,
delivery and performance of this Agreement and the Indenture and consummation of the transactions
contemplated hereby and thereby and by the Prospectus (including the issuance and delivery of the
Notes) and the execution, delivery and performance by the Grantors of the Pledge Agreements, except
such as have been obtained or made by the Company and are in full force and effect under the
Securities Act, Trust Indenture Act, applicable state securities or blue sky laws and from NASD and
consents the failure of which to obtain would not result in a Material
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Adverse Change or have a material adverse effect on the transactions contemplated by this
Agreement or the Indenture or on the validity and enforceability of the Notes and the Indenture.
(xvii) The execution and delivery of each of the Agreement and the Indenture by the Company
and the execution and delivery of the Pledge Agreements by the Grantors, and the execution,
issuance and delivery of the Notes by the Company and the performance by the Company and the
Grantors, as applicable, of their respective obligations thereunder (other than performance by the
Company of its obligations under the indemnification section of the Agreement, as to which no
opinion need be rendered) (A) will not result in any violation of the provisions of the declaration
of trust (or charter or by-laws or other similar constitutive documents) of the Company or the
Grantors or any Significant Subsidiary incorporated or organized in a jurisdiction located in the
United States and so designated on Schedule B to the Agreement (each, a “U.S. Significant
Subsidiary”); (B) will not constitute a breach of, or Default under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the Company or the
Grantors or any of the U.S. Significant Subsidiaries pursuant to (x) the Global Senior Credit
Agreement, dated as of October 6, 2005, by and among the Company, certain other borrowers, Bank of
America, N.A., ABN Amro Bank N.V. and Sumitomo Mitsui Banking Corporation (other than with respect
to compliance by the Company or any subsidiary with any financial covenants as to which no opinion
need be rendered), or (z) to the best knowledge of such counsel, any other material Existing
Instrument; or (C) to the best knowledge of such counsel, will not result in any violation of any
law, administrative regulation or administrative or court decree applicable to the Company or the
Grantors or any U.S. Significant Subsidiary, other than in the case of clauses (B) and (C), such
Defaults and violations as would not, individually or in the aggregate, result in a Material
Adverse Change.
(xviii) The Company is not, and after receipt of payment for the Notes will not be, an
“investment company” within the meaning of Investment Company Act.
(xix) The Company has qualified to be taxed as a real estate investment trust pursuant to the
Internal Revenue Code for its taxable years ended December 31, 1993, 1994, 1995, 1996, 1997, 1998,
1999, 2000, 2001, 2002, 2003, 2004 and 2005, and the Company’s present organization, ownership, the
Company’s present and proposed method of operation, assets and income are such that the Company is
in a position under present law to so qualify for the fiscal year ended December 31, 2006 and in
the future.
(xx) The investments of the Company described in the Prospectus are permitted investments
under the declaration of trust of the Company.
In addition, such counsel shall state that they have examined various documents and records
and participated in conferences with officers and other representatives of the Company,
representatives of the independent public or certified public accountants for the Company and with
representatives of the Underwriters at which the contents of the Registration Statement and the
Prospectus, and any supplements or amendments thereto, and related matters were discussed and,
although such counsel is not passing upon and does not assume any responsibility for the accuracy,
completeness or fairness of the statements contained in the Registration Statement or the
Prospectus, including the documents incorporated by reference therein (other than as specified
above), and any supplements or amendments thereto, on the basis of the foregoing, no
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facts have come to their attention that lead them to believe that (i) the Registration
Statement or any amendments thereto, at the most recent deemed effective date pursuant to Rule
430B(f)(2) under the Securities Act prior to the Initial Sale Time, contained an untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary
to make the statements therein not misleading; or (ii) the Prospectus, at the Initial Sale Time, as
of its date or at the Closing Date, contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading (except for the Form T-1 and the financial
statements, supporting schedules and other financial or statistical data included or incorporated
by reference therein or derived or omitted therefrom as to which such counsel need express no
belief).
In rendering such opinion, such counsel may rely (A) as to matters involving the application of
laws of any jurisdiction other than the General Corporation Law of the State of Delaware, the laws
regarding real estate investment trusts of the State of Maryland or the federal law of the United
States, to the extent they deem proper and specified in such opinion, upon the opinion (which shall
be dated the Closing Date, shall be satisfactory in form and substance to the Underwriter, shall
expressly state that the Underwriter may rely on such opinion as if it were addressed to them and
shall be furnished to the Underwriter) of other counsel of good standing whom they believe to be
reliable and who are satisfactory to counsel for the Underwriter; provided, however, that such
counsel shall further state that they believe that they and the Underwriter are justified in
relying upon such opinion of other counsel, (B) upon the opinion of general counsel of the Company
referred to in Section 5(g) of the Agreement, and (C) as to matters of fact, to the extent they
deem proper, on certificates of responsible officers of the Company and public officials and on the
representations of the Company as provided in the Agreement. In rendering the opinions contained
in paragraphs (xvii) and (xxi), such opinion may be based upon (a) the Internal Revenue Code and
the rules and regulations promulgated thereunder and the interpretations of the Internal Revenue
Code and such regulations by the courts and the Internal Revenue Service, all as they are in effect
and exist at the time of the opinion, (b) Maryland law existing and applicable to the Company, (c)
facts and other matters set forth in the Prospectus, (d) the provisions of the Amended Restated
Declaration of Trust of the Company, the agreements relating to properties owned by the Company and
(e) certain statements and representations as to factual matters made by the Company to such
counsel provided that such statements and representations are also set forth in a certificate to
the Underwriters. In rendering the opinions contained in paragraphs (ix) through (xi) such counsel
may make such assumptions as are customarily made in connection with such opinions.
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EXHIBIT B
Opinion of the General Counsel of the Company to be delivered pursuant to Section 5(g) of the
Underwriting Agreement.
References to the Prospectus in this Exhibit B include any supplements thereto at the Closing
Date.
(i) Each of the U.S. Significant Subsidiaries of the Company has been duly incorporated or
organized, as the case may be, and is validly existing as a corporation, trust or partnership in
good standing under the laws of the jurisdiction of its incorporation or organization, as the case
may be, and has the power (corporate or other) and authority to own, lease and operate its
properties and to conduct its business as described in the Prospectus. Each U.S. Significant
Subsidiary is duly qualified as a foreign corporation, trust or partnership to transact business
and (except as to any general partnership) is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the conduct
of business, except for such jurisdictions where the failure to so qualify or to be in good
standing would not, individually or in the aggregate, result in a Material Adverse Change.
(ii) All of the issued and outstanding capital stock and other equity interests of each U.S.
Significant Subsidiary have been duly authorized and validly issued, is fully paid and (except for
general partnership interests) nonassessable; all shares of outstanding capital stock and other
equity interests of each U.S. Significant Subsidiary held by the Company, directly or through
subsidiaries, are owned free and clear of any security interest, mortgage, pledge, lien,
encumbrance or claim, except for such security interests, mortgages, pledges, liens, encumbrances
and claims as would not, individually or in the aggregate, result in a Material Adverse Change .
(iii) To the best knowledge of such counsel, there are no legal or governmental actions,
suits or proceedings pending or threatened which are required to be disclosed in the Registration
Statement or the Prospectus, other than those disclosed therein.
(iv) To the best knowledge of such counsel, there are no Existing Instruments required to be
described or referred to in the Registration Statement or to be filed as exhibits thereto other
than those described or referred to therein or filed or incorporated by reference as exhibits
thereto; and the descriptions thereof and references thereto are correct in all material respects.
(v) To the best knowledge of such counsel, neither the Company nor any subsidiary is in (A)
violation of its declaration of trust (or charter or by-laws or other similar constitutive
documents) or (B) violation of any law, administrative regulation or administrative or court decree
applicable to the Company or any U.S. Significant Subsidiary or (C) is in Default in the
performance or observance of any obligation, agreement, covenant or condition contained in any
material Existing Instrument, except in the case of (B) and (C) above, for such violations or
Defaults as would not, individually or in the aggregate, result in a Material Adverse
Change.
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EXHIBIT C
[The final opinion in draft form will be attached as Exhibit C at the time this Agreement is
executed.]
Opinion of the Counsel for the Collateral Agent and the Administrative Agent to be delivered
pursuant to Section 5(e) of the Purchase Agreement.
(i) Based solely upon the Officer’s Certificate, the Security Agency Agreement has been duly
authorized, executed, and delivered by Collateral Agent.
(ii) The Security Agency Agreement is enforceable against Collateral Agent in accordance with
its terms.
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