Document:

Exhibit 4.1.6

 

21 October 2004

 

Mr Peter Hodgson

17/530 Collins St

Melbourne

 

Dear Peter

 

On behalf of Australia and New Zealand Banking Group
Limited (“ANZ”), I am pleased to formally advise you of your appointment to the
position of  Chief Risk Officer.

 

This letter sets out the terms of your employment, and
constitutes your employment agreement with ANZ (“employment agreement”).  This employment agreement replaces all
existing agreements, arrangements, or understandings between you and ANZ.  (References to ANZ include any corporation
related to ANZ under the Corporations Act 2001.)

 

1                                         Position,
Reporting Arrangements and Location

 

Your position is Chief Risk Officer
reporting to John McFarlane, Chief Executive Officer and located at 32/100
Queen St, Melbourne.

 

Your position is at
Senior Executive Group level.  ANZ may,
at its discretion, change your position, reporting arrangements, duties and
location on giving you reasonable notice, following consultation with you, and
taking into account career considerations and personal circumstances.

 

2                                         Operative
Date

 

This employment agreement, and your
obligations under it, will commence on 1 December 2004.  It does not affect your continuity of service
for the purposes of leave entitlements and other employment benefits.

 

3                                         Remuneration

 

The details of your remuneration are set
out in the Schedule.  The Schedule forms
part of this employment agreement.

 

4                                         Leave

 

4.1                               Annual Leave

 

You will receive 4 weeks’ contracted hours
paid annual leave for each completed year of paid service with ANZ.  You are required to take your full annual
leave entitlement of 4 weeks over the course of each ANZ financial year (1
October to 30 September), 2 weeks of which must be taken consecutively.  (ANZ policy requires that you are absent for
at least 10 consecutive business days per annum.)

 

At the end of each ANZ financial year, ANZ
will deem you to have taken your full 4 weeks’ annual leave.  Accordingly, there will be no positive
accrual of this leave and your annual leave balance at 1 October each year will
never be more than your balance at 1 October of the previous year, or zero
whichever is greater.

 

1

 

4.2                               Sick Leave

 

You may take sick leave in accordance with
standard arrangements applicable to all ANZ employees.  Any untaken part of this entitlement is
cumulative from year to year.  In the
event of prolonged illness, ANZ may decide at its discretion to provide you
with sick leave in excess of your sick leave entitlements.  You are not entitled to any payment for
unused sick leave when your employment with ANZ ends.

 

4.3                               Parental Leave

 

You may take parental leave in accordance
with standard arrangements applicable to all ANZ employees.

 

4.4                               Long Service Leave

 

You are eligible for 13 weeks’ long service
leave after completing 15 years of continuous service, and a further 8.66 weeks’
leave for each subsequent 10 completed years of continuous service.  You may access long service leave on a
pro-rata basis after 10 completed years of continuous service.

 

5                                         Ownership
of Intellectual Property and Trade Secrets

 

All inventions, discoveries, computer
software processes and improvements made by you during your employment with ANZ
remain the property of ANZ.

 

By signing this employment agreement, you:

 

•                  assign to ANZ all proprietary rights including all ownership rights
and copyright and the exclusive right to develop, make, use, sell, license or
otherwise benefit from any inventions, discoveries, processes and improvements,
made by you within the scope of your employment with ANZ; and

 

•                  agree to execute any further document that is necessary or desirable
to give full effect to your obligations under this clause 5.

 

6                                         Values
and Ethical Standards

 

ANZ has
developed guiding values and expects you to actively ensure they are an
integral part of the way that you, and those who report to you, carry out
duties within ANZ.

 

ANZ expects you to further ANZ’s objectives
and reputation and faithfully and diligently to perform your duties, exercise
your powers, and manage with integrity and respect all matters concerning ANZ
employees and customers.

 

ANZ also has
certain ethical standards that you are required to maintain.  In particular, you must not in any way,
either directly or indirectly, be or become engaged, concerned or interested in
any business whether as principal, partner, director, agent, promoter or
beneficiary except that of ANZ.  This
requirement may be waived at ANZ’s discretion by a written consent signed by
the Chief Executive Officer.

 

2

 

7                                         Conduct

 

You must at
all times act honestly and in a manner that is consistent with the status of
your position with ANZ.  You indemnify
ANZ against any loss or damage it suffers as a result of any dishonest act by
you, or any wilful misconduct in carrying out your duties.

 

 

8                                         Policies and Procedures, Performance Management Plans

 

8.1                               Policies and Procedures

 

ANZ has
policies and procedures that apply to your employment.  These policies and procedures may be amended
by ANZ from time to time.  They are not
incorporated into or otherwise included in your contract of employment with
ANZ, including this employment agreement.

 

8.2                               Performance Management Plans

 

Performance
management plans will be developed in consultation with you and may be reviewed
and varied during the performance period.

 

9                                         Confidential
Information

 

You must not
disclose or use in any manner (except in the proper course of your employment,
by compulsion of law, or on the written direction of an authorised officer of
ANZ or its auditors) any information about ANZ, its customers or its affairs
which you acquire during your employment with ANZ, unless the information is
already legitimately in the public domain. 
You must also take all reasonable and necessary precautions to maintain
the confidentiality and secrecy of any of this information, and prevent its
unauthorised disclosure by any other person or entity. This obligation
continues after your employment with ANZ ends.

 

You must also
return to ANZ on request or immediately your employment with ANZ ends:

 

•                  all books, papers, documents and other property which belong or
relate to ANZ, its customers or its affairs, and any copies of such documents;
and

 

•                  any vehicle, computer hardware or software, key, security pass or
other property that belongs to ANZ.

 

10                                  Restraint

 

You must not
at any time, either during your employment with ANZ or for 6 months after your
employment with ANZ ends (or for such lesser time as a court may deem
reasonable), either on your own account or for or jointly with any other person
solicit, interfere with or attempt to entice away from ANZ any person who, at
any time within the period of 12 months before the date your employment with
ANZ ends, was a customer or employee of, or in the habit of dealing with, ANZ
and whom you had direct or indirect contact with, or dealings with or knowledge
of, for the purpose of your employment.

 

You
acknowledge that consideration for the restraint is included in your Total
Employment Cost (TEC).

 

3

 

11                                  Disciplinary
Action

 

If you fail to
comply with the provisions of your employment agreement or any other ANZ
performance requirements, ANZ may take disciplinary action which may include
suspension with or without pay and, in certain circumstances, termination of
your employment with ANZ (see clause 12).

 

12                                  Termination
of Employment

 

12.1                        Termination Entitlements

 

Your
termination entitlements will depend upon the circumstances of the termination
and are set out in this clause 12 and in the Schedule. These will be the only
entitlements paid to you upon the termination of your employment with ANZ.

 

12.2                        Resignation

 

You may
terminate your employment for any reason by giving ANZ 3 months’ written notice.  You and ANZ may agree on a lesser period of
notice, or ANZ may in its absolute discretion waive the notice period or any
part of it.  If ANZ waives the notice
period or any part of it, entitlements on termination will include payment in
respect of the waived period (calculated on the basis of your Total Employment
Cost (TEC), as described in the Schedule).

 

If, however,
ANZ elects not to waive the notice period, ANZ may, during the notice period or
any part of it, direct you not to perform all or part of the duties of your
position, to cease communication with customers, suppliers, employees and
contractors of ANZ and/or not to attend your principal place of work.

 

12.3                        Termination by
ANZ

 

(a)                                 Termination on Notice

 

ANZ may
terminate your employment for any reason (other than (b) or (c) below) by
giving you 12 months’ written notice. 
ANZ may elect to pay you in lieu of giving you all or part of the notice
period based on your Total Employment Cost (TEC), as described in the
Schedule.  Alternatively, ANZ may, during
the notice period or any part of it, direct you not to perform all or part of
the duties of your position, to cease communication with customers, suppliers,
employees and contractors of ANZ and/or not to attend your principal place of
work.

 

(b)                                 Serious Misconduct

 

ANZ may
terminate your employment at any time, without notice, because of your serious
misconduct, serious neglect of duty, or serious breach of any of the terms of
this employment agreement.  In such
circumstances, you will only be entitled to payment of TEC up to the date of
termination.

 

(c)                                  Retrenchment

 

If ANZ
terminates your employment because no suitable position exists for you, you
will be entitled to a severance payment equal to 12 months’ TEC or an amount
calculated as follows, whichever is the greater:

 

1)              7 weeks’ notional salary
for your first year of service;

2)              Plus 4 weeks’ notional
salary for each year for your second to tenth consecutive years of continuous
service;

3)              Plus 3 weeks’ notional
salary for each year for your eleventh to sixteenth consecutive years of
continuous service;

 

4

 

4)              Plus 2 weeks’ notional
salary for each subsequent consecutive year of continuous service to a maximum
of 25 years including the first;

5)              Plus a pro-rata payment
for each completed month of service in your final part year of service, up to
and including your 25th year of service.

 

If a severance
payment is made to you under this clause 12.3(c), you will not be entitled to
notice or payment in lieu of notice under clause 12.3(a) above.

 

Your severance
payments set out under this clause 12.3(c) will however, be taken to include an
amount equal to the minimum notice payments required under the Banking Services
– ANZ group – Award 1998.

 

13                                  Variations
to Conditions of Employment

 

Variations to
your employment agreement may be necessary for the fair, efficient and
effective administration of ANZ’s business. Accordingly, this employment
agreement may be varied by agreement from time to time. Your consent to such
variation must not be unreasonably withheld. If your consent is unreasonably
withheld, ANZ may give you one month’s written notice that such variation will
take effect.

 

14                                  Relevant
law

 

This
employment agreement takes effect under, is governed by and is to be
interpreted according to, the law of Victoria.

 

ANZ provides a challenging and
ever-changing job environment and I trust that it will be possible for you to
develop and enhance your capabilities within ANZ.  I look forward to your contribution to the
opportunities and challenges facing ANZ.

 

A copy of this employment agreement is
enclosed for your records.  Please sign
and return the original to me to confirm your acceptance of its terms.

 

 

Yours sincerely

AUSTRALIA AND NEW ZEALAND BANKING
GROUP LIMITED

 

 

Shane Freeman

Group General Manager

People Capital and Breakout

 

5

 

SCHEDULE

REMUNERATION ENTITLEMENTS, INCLUDING PAYMENTS

ON TERMINATION

 

	
  Name:

  	
  Peter Hodgson

  	
   

  	
   

  
	
  Title:

  	
  Chief Risk Officer

  	
   

  	
   

  
	
  Location:

  	
  32/100 Queen St, Melbourne

  	
   

  	
   

  
	
  Reporting To:

  	
  John McFarlane

  	
   

  	
   

  
	
  Schedule Issued:

  	
  Tbc

  	
  Effective Date:

  	
  1 December 2004

  

 

This Schedule forms part of your employment
agreement.

 

Your
remuneration will be a combination of salary, superannuation and benefits as
agreed between you and ANZ from time to time using ANZ’s total employment cost
(TEC) methodology. Essentially,
TEC is the fixed component of remuneration. 
It comprises notional salary (65% of TEC) and mandatory superannuation
contributions, with the balance being a flexible component.

 

Mandatory superannuation
contributions are paid in accordance with ANZ’s obligations under legislation
as varied from time to time.  If
legislative requirements for the payment of mandatory superannuation contributions
change, the flexible component of your TEC will be varied accordingly (so that
your TEC package remains the same).

 

The
flexible component of TEC can be directed to benefits that are available at ANZ’s
discretion in accordance with ANZ’s policy as amended from time to time.  It can be taken as a cash benefit (also
referred to as Cashtec) or non-cash benefits (such as motor vehicles, petrol,
parking and, if applicable, concessional lending) or a combination of both cash
benefit/Cashtec and non-cash benefits. 
Any fringe benefits tax that is payable on non-cash benefits will form
part of the flexible component of TEC.

 

Your notional salary, superannuation
and cash benefit/Cashtec (if applicable) will be paid fortnightly and non-cash
benefits will be provided as applicable. 
ANZ will review your TEC annually.

 

Bonus payments are at the discretion of the
Board.

 

1                                         Total Target Reward

 

Your Total Target Reward (TTR) is a combination of Fixed Reward – TEC
(60% of TTR) plus Variable Reward – Executive Remuneration Scheme (40% of
TTR).  Your annualised TTR is $1,000,000.

 

1.1                               Fixed Reward - TEC

 

Your TEC
package on commencement of work in your new position is $600,000 per annum.

 

You must take
65% of TEC as notional salary.  The
balance, less mandatory superannuation contributions, is a flexible component
and can be taken as cash benefit/Cashtec or non-cash benefits or a combination
of both.

 

1.2                               Variable Reward - Executive Remuneration Scheme

 

Bonus payments under
the Executive Remuneration Scheme are subject to business unit and individual
performance and are at the discretion of the Board.

 

Bonuses may be paid as cash or shares or a
combination of both.  The Board may, at
its discretion, change the ratio of cash to shares.  You must at all times comply with the
provisions of ANZ’s Share Trading Policy.

 

i

 

2                                         Superannuation

 

Your notional
salary is used to calculate your superannuation contributions (if any) and the
level of mandatory superannuation contributions.  It is also used to calculate the insured
component of your death and total and permanent disablement benefits.  For full details of the ANZ Australian Staff
Superannuation Scheme, refer to the member’s booklet.

 

3                                         Entitlements upon Termination of Employment

 

Upon
termination of employment, you will be entitled to payment for accrued and
unused long service leave and annual leave in accordance with the standard
arrangements applicable to all ANZ employees. 
Payments will be on the basis of your notional salary plus cash
benefit/Cashtec.

 

In addition
to any notice or payment under clause 12 of your employment agreement, you will
have the following entitlements on the termination of your employment:

 

•                                          On  resignation (see clause 12.2),

you will not
be entitled to:

•                  any
unvested deferred shares issued to you under the ANZ incentive arrangements;

•                  exercise
any options.

 

•                                          On termination on notice (see clause 12.3(a)),

you will be
entitled to:

•                  a Performance Bonus pro-rata to the date of termination;

•                  any deferred shares issued to you
as part of a short-term incentive program under this employment agreement or a
former employment agreement between you and ANZ;

•                  any deferred shares issued to you,
under this employment agreement or a former employment agreement between you
and ANZ, as part of a long-term incentive program which have already vested,
and any that vest during the notice period;

•                  exercise any options granted to you
under this employment agreement or a former employment agreement between you
and ANZ, that have already vested, and any that vest during the notice period
in accordance with the ANZ Share Option Plan Rules (that is with the Board’s
approval or otherwise in accordance with the Rules).

 

•                                          On termination for serious misconduct (see clause 12.3(b)),

you will not be entitled to:

•                  any vested or unvested deferred shares issued to you under the ANZ
incentive arrangements which are held in trust;

•                  exercise any options.

 

•                                          On retrenchment (see clause
12.3(c)),

you will be entitled to:

•                  any deferred shares issued to you under the ANZ incentive
arrangements;

•                  exercise any options in accordance with the ANZ Share Option Plan
Rules (that is, with the Board’s approval or otherwise in accordance with the
Rules).

 

•                                          On total and permanent  disablement or death,

you or, in the event of death, your estate,
will be entitled to:

•                  a Performance Bonus pro-rated to the date of termination;

•                  any deferred shares issued to you under the ANZ incentive
arrangements;

 

ii

 

•                  exercise any options in accordance with the ANZ Share Option Plan
Rules (that is, with the Board’s approval or otherwise in accordance with the
Rules).

 

4                                         Definitions

 

For the purposes of this employment
agreement:

 

•                                          total and permanent disablement means:

 

(a)                                  in
circumstances where you are a member of the ANZ Australian Staff Superannuation
Scheme (the “Scheme”) or an ANZ-sponsored staff superannuation fund, total and
permanent disablement as determined by the trustee of the Scheme or fund;

 

(b)                                 in
circumstances where you are not a member of the ANZ Australian Staff
Superannuation Scheme or an ANZ-sponsored staff superannuation fund, such state
of physical or mental incapacity as renders you unlikely ever to be able to
work again in a job for which you are reasonably qualified by education,
training or experience.  Every question
of total and permanent disablement will be decided by ANZ after receipt of
reports by two qualified medical practitioners approved by ANZ.

 

•                                          salary means
notional salary, which is 65% of TEC.

 

ACCEPTANCE

 

I, Peter Hodgson, have read and understood and agree
to the terms of employment set out in this employment agreement (including the
Schedule).

 

 

	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /S/ P. Hodgson

  	
   

  	
   

  
	
  Dated: 28/10/04

  	
   

  	
   

  
							

 

iiiEXHIBIT
10.1

 

PEPSIAMERICAS,
INC.

 

DEBT
SECURITIES

 

UNDERWRITING
AGREEMENT

 

January 5, 2005

 

Banc of America
Securities LLC

Citigroup Global Markets
Inc.

J.P. Morgan Securities
Inc. 

Wachovia Capital Markets,
LLC 

BNP Paribas Securities
Corp. 

Wells Fargo Securities,
LLC

Loop Capital Markets, LLC

 

c/o Banc of America
Securities LLC

214 North Tryon Street

Hearst Tower

Charlotte, North Carolina
28255

 

Ladies and Gentlemen:

 

1.             Introductory.  PepsiAmericas, Inc., a Delaware corporation (“Company”),
proposes to issue and sell from time to time certain of its debt securities
registered under the registration statement referred to in Section 2(a) (“Registered
Securities”).  The Registered Securities
will be issued under an indenture, dated as of August 15, 2003 (as amended or
supplemented with respect to such Registered Securities, the “Indenture”),
between the Company and Wells Fargo Bank, National Association, as Trustee, in
one or more series, which series may vary as to interest rates, maturities,
redemption provisions, selling prices and other terms, with all such terms for
any particular series of the Registered Securities being determined at the time
of sale.  Particular series of the
Registered Securities will be sold pursuant to a Terms Agreement referred to in
Section 3 for resale in accordance with terms of offering determined at the
time of sale.

 

The Registered Securities involved in the applicable
offering are hereinafter referred to as the “Securities.”  The firm or firms which agree to purchase the
Securities in the applicable Terms Agreement are hereinafter referred to as the
“Underwriters” of such Securities, and the representative(s) of the
Underwriters, if any, specified in such Terms Agreement are hereinafter
referred to as the “Representatives”; provided, however, that if such Terms
Agreement does not specify any representative of the Underwriters, the term “Representatives,”
as used in this Agreement (other than in Sections 2(b), 5(b) and 6 and the
second sentence of Section 3), shall mean the Underwriters.

 

2.             Representations
and Warranties of the Company.  The
Company represents and warrants to, and agrees with, each Underwriter on the
date hereof, the date of the applicable

 

 

Terms Agreement
and the Closing Date referred to in Section 3 (each, a “Representation Date”)
that:

 

(a)           A
registration statement on Form S-3 (No. 333-108164), including a prospectus
contained in the registration statement relating to the Registered Securities,
has been filed with the Securities and Exchange Commission (“Commission”) and
such registration statement has become effective.  Such registration statement, including the
prospectus constituting part of such registration statement and all information
incorporated therein by reference, in the form and at the time such
registration statement or any post-effective amendment thereto prior to the
execution of the applicable Terms Agreement became effective, is hereinafter
referred to as the “Registration Statement,” and the final prospectus and
prospectus supplement reflecting the terms of the Securities and the terms of
offering thereof, including all information incorporated therein by reference,
in the form and at the time such prospectus and prospectus supplement were
first furnished to the Underwriters for use in connection with the offering of
such Securities, are hereinafter collectively referred to as the “Prospectus.” 

 

All references in this Agreement to financial
statements and schedules and other information which is “in” or “disclosed”, “contained”,
“included” or “stated” (or other references of like import) in the Registration
Statement, Prospectus or preliminary prospectus shall be deemed to include all
such financial statements and schedules and other information which is
incorporated by reference in the Registration Statement at the time it or any
post-effective amendment prior to the execution of the applicable Terms
Agreement became effective or in the Prospectus or preliminary prospectus at
the time of the execution of the applicable Terms Agreement, as the case may
be; and all references in this Agreement to amendments or supplements to the
Registration Statement, Prospectus or preliminary prospectus shall be deemed to
include the filing of any document under the Securities Exchange Act of 1934,
as amended (“Exchange Act”), which is incorporated by reference in the
Registration Statement, the Prospectus or the preliminary prospectus after the
execution of the applicable Terms Agreement.

 

(b)           On each
effective date of the Registration Statement or any post-effective amendment
thereto and each Representation Date, such Registration Statement and each
post-effective amendment thereto conformed, conforms and will conform in all
respects to the requirements of the Securities Act of 1933, as amended (“Act”),
the Exchange Act, the Trust Indenture Act of 1939, as amended (“Trust Indenture
Act”), and the rules and regulations of the Commission (“Rules and Regulations”)
and did not, does not and will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading.  On the date of each Terms Agreement and the
Closing Date related thereto, the Prospectus and each amendment or supplement
thereto conforms and will conform in all respects to the requirements of the
Act, the Trust Indenture Act and the Rules and Regulations and does not and
will not include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.  No representation, warranty or agreement is
made by the Company as to any written information furnished to the Company by
any Underwriter through the Representatives, if any, specifically for use in
the Registration Statement or any post-effective amendment thereto and the
Prospectus or any amendment or supplement thereto.

 

2

 

(c)           The
consolidated historical financial statements, together with the related notes
thereto, set forth or incorporated by reference in the Registration Statement
or the Prospectus comply as to form in all material respects with the
requirements of Regulation S-X under the Act applicable to registration
statements on Form S-3 under the Act. 
Such historical financial statements fairly present in all material
respects the financial position of the Company and its consolidated
subsidiaries at the respective dates indicated and the results of operations
and cash flows of the Company and its consolidated subsidiaries for the
respective periods indicated, in each case in accordance with generally
accepted accounting principles (“GAAP”) consistently applied throughout such
periods.  The other historical financial
information and data included in the Prospectus is, in all material respects,
accurately presented and true and correct. 
Neither consolidated pro forma financial information of the Company nor
historical financial statements of any entity other than the Company are
required under the Act or the Rules and Regulations to be included in the
Registration Statement or the Prospectus.

 

3.             Purchase
and Offering of Securities.  The
obligation of the Underwriters to purchase the Securities will be evidenced by
an exchange of a Terms Agreement substantially in the form of Annex I attached
hereto (“Terms Agreement”) at the time the Company determines to sell the
Securities.  The Terms Agreement will
incorporate by reference the provisions of this Agreement, except as otherwise
provided therein, and will specify the firm or firms which will be
Underwriters, the names of any Representatives, the principal amount to be
purchased by each Underwriter, the initial public offering price, if any, and
the purchase price to be paid by the Underwriters applicable to the Securities
and the terms of the Securities not already specified in the Indenture,
including, but not limited to, interest rate, maturity, any redemption
provisions and any sinking fund requirements and whether any of the Securities
may be sold to institutional investors pursuant to Delayed Delivery Contracts
(as defined below).  The Terms Agreement
will also specify the time and date of delivery and payment (such time and date
being hereinafter and in the Terms Agreement referred to as the “Closing Date”),
the place of delivery and payment and any details of the terms of offering that
should be reflected in the Prospectus relating to the offering of the
Securities.  The obligations of the
Underwriters to purchase the Securities will be several and not joint.  It is understood that the Underwriters
propose to offer the Securities for sale as set forth in the Prospectus.  The Securities delivered to the Underwriters
on the Closing Date will be in fully registered definitive or book-entry form,
as specified in the applicable Terms Agreement, and be in such denominations
and registered in such names as the Underwriters may request.

 

If the Terms Agreement provides for sales of
Securities pursuant to delayed delivery contracts, the Company authorizes the
Underwriters to solicit offers to purchase Securities pursuant to delayed
delivery contracts substantially in the form of Annex II attached hereto (“Delayed
Delivery Contracts”) with such changes therein as the Company may authorize or
approve.  Delayed Delivery Contracts are
to be made only with institutional investors, including commercial and savings
banks, insurance companies, pension funds, investment companies and educational
and charitable institutions.  On the
Closing Date the Company will pay, as compensation, to the Representatives for
the accounts of the Underwriters, the fee set forth in such Terms Agreement in
respect of the principal amount of Securities to be sold pursuant to Delayed
Delivery Contracts (“Contract Securities”). 
The Underwriters will not have any responsibility in respect of the
validity or the performance of Delayed Delivery Contracts.  If the Company executes and delivers Delayed
Delivery Contracts, the Contract Securities will be

 

3

 

deducted from the Securities to be purchased by the
several Underwriters and the aggregate principal amount of Securities to be
purchased by each Underwriter will be reduced pro rata in proportion to the
principal amount of Securities set forth opposite each Underwriter’s name in
such Terms Agreement, except to the extent that the Representatives determine
that such reduction shall be otherwise than pro rata and so advise the
Company.  The Company will advise the
Representatives not later than the business day prior to the Closing Date of
the principal amount of Contract Securities.

 

4.             Certain
Agreements of the Company.  The
Company agrees with the several Underwriters that it will furnish to Sidley
Austin Brown & Wood LLP, counsel for the Underwriters, one conformed copy
of the Registration Statement, including all exhibits, in the form it became
effective and of all post-effective amendments thereto and that, in connection
with each offering of Securities:

 

(a)           The
Company will file the Prospectus with the Commission pursuant to and in
accordance with Rule 424(b) not later than the second business day following
the execution and delivery of the Terms Agreement.

 

(b)           The
Company will advise the Representatives promptly of any proposal to amend or
supplement the Registration Statement or the Prospectus and will afford the
Representatives a reasonable opportunity to comment on any such proposed
amendment or supplement; and the Company will also advise the Representatives
promptly of the filing of any such amendment or supplement and of the
institution by the Commission of any stop order proceedings in respect of the
Registration Statement or of any part thereof and will use its best efforts to
prevent the issuance of any such stop order and to obtain as soon as possible
its lifting, if issued.

 

(c)           If, at any
time when a prospectus relating to the Securities is required to be delivered
under the Act, any event occurs as a result of which the Registration Statement
or the Prospectus as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, or if it is necessary at any time to amend the
Registration Statement or the Prospectus to comply with the Act or the Rules
and Regulations, the Company promptly will prepare and file with the Commission
an amendment or supplement which will correct such statement or omission or an
amendment which will effect such compliance. 
Neither the Representatives’ consent to, nor the Underwriters’ delivery
of, any such amendment or supplement shall constitute a waiver of any of the
conditions set forth in Section 5.

 

(d)           The
Company will timely file such reports pursuant to the Exchange Act as are
necessary in order to make generally available to its securityholders as soon
as practicable an earnings statement for the purposes of, and to provide the
benefits contemplated by, the last paragraph of Section 11(a) of the Act.

 

(e)           The
Company will furnish to the Representatives copies of the Registration
Statement, including all exhibits, any related preliminary prospectus, any
related

 

4

 

preliminary
prospectus supplement, the Prospectus and all amendments and supplements to
such documents, in each case as soon as available and in such quantities as are
reasonably requested.

 

(f)            The
Company will arrange for the qualification of the Securities for sale and the
determination of their eligibility for investment under the laws of such
jurisdictions as the Representatives shall reasonably designate and will
continue such qualifications in effect so long as required for the distribution
of the Securities; provided, however, that the Company shall not be obligated
to file any general consent to service of process or to qualify as a foreign
corporation in any jurisdiction in which it is not so qualified.

 

(g)           During the
period of five years after the date of any Terms Agreement, the Company will
furnish to the Representatives and, upon request, to each of the other
Underwriters, if any, as soon as practicable after the end of each fiscal year,
a copy of its annual report to stockholders for such year; and the Company will
furnish to the Representatives (i) as soon as available, a copy of each report
on Form 10-K or 10-Q or definitive proxy statement of the Company filed with
the Commission under the Exchange Act, or mailed to stockholders, and (ii) from
time to time, such other information concerning the Company as the
Representatives may reasonably request.

 

(h)           The
Company will pay all expenses incident to the performance of its obligations
under this Agreement and each Terms Agreement and will reimburse the
Underwriters for any expenses (including fees and disbursements of counsel)
incurred by them in connection with qualification of the Registered Securities
for sale under the laws of such jurisdictions as the Representatives may
reasonably designate and the printing of memoranda relating thereto, for any
fees charged by investment rating agencies for the rating of the Securities and
for expenses incurred in distributing the Prospectus, any preliminary
prospectuses and any preliminary prospectus supplements to Underwriters.

 

(i)            For a
period beginning at the time of execution of the Terms Agreement and ending one
business day after the Closing Date, the Company will not, without the prior
consent of the Representatives, offer, sell, contract to sell or otherwise
dispose of any publicly sold (including pursuant to Rule 144A of the Act)
United States dollar-denominated debt securities issued or guaranteed by the
Company and having a maturity of more than one year from the date of issue.

 

5.             Conditions
of the Obligations of the Underwriters. 
The obligations of the several Underwriters to purchase and pay for the
Securities that are the subject of the applicable Terms Agreement will be
subject to the accuracy of the representations and warranties on the part of
the Company herein on the date hereof and at the time of execution of such
Terms Agreement and on the Closing Date, to the accuracy of the statements of
Company officers made pursuant to the provisions hereof, to the performance by
the Company of its obligations hereunder and to the following additional
conditions precedent:

 

(a)           The
Prospectus shall have been filed with the Commission in accordance with the
Rules and Regulations and Section 4(a) of this Agreement.  The Registration Statement shall have become
effective under the Act and no stop order suspending the effectiveness of the
Registration Statement or of any part thereof shall have been issued and no
proceedings for that

 

5

 

purpose shall have
been instituted or, to the knowledge of the Company or any Underwriter, shall
be contemplated by the Commission.

 

(b)           Subsequent
to the execution of the Terms Agreement, there shall not have occurred (i) any
change, or any development involving a prospective change, in or affecting
particularly the properties, assets, operations, business or condition
(financial or otherwise) of the Company or its subsidiaries which, in the
judgment of the Representatives, is so material and adverse as to make it
impractical or inadvisable to proceed with the offering or the delivery of the
Securities or the Registered Securities as contemplated by the Registration
Statement and the Prospectus; (ii) any downgrading in (or withdrawal of) the
rating of any debt securities of the Company by Standard & Poor’s
Corporation or Moody’s Investors Service, Inc., or any public announcement that
either such organization has under surveillance or review its rating of any
debt securities of the Company (other than an announcement with positive
implications of a possible upgrading, and no implication of a possible
downgrading, of such rating); (iii) any suspension or limitation of trading in
securities generally on the New York Stock Exchange, or any setting of minimum
prices or trading on such exchange, or any suspension of trading of any
securities of the Company on any exchange or in the over-the-counter market;
(iv) any banking moratorium declared by Federal or New York authorities or a
material disruption in commercial banking or securities settlement or clearance
services; or (v) a material adverse change in the financial markets in the
United States or in the international financial markets, or any outbreak or
escalation of major hostilities in which the United States is involved, any
declaration of war by Congress or any other substantial national or
international calamity or emergency if, in the judgment of the Representatives,
the effect of any such outbreak, escalation, declaration, calamity or emergency
makes it impractical or inadvisable to proceed with completion of the sale of
and payment for the Securities.

 

(c)           The
Underwriters shall have received an opinion, dated the Closing Date, of Briggs
and Morgan, Professional Association, counsel for the Company, to the effect
that:

 

(i)            The
Company has been duly incorporated and is an existing corporation in good
standing under the laws of the State of Delaware, with corporate power and
authority to own, lease and operate its properties and conduct its business as
described in the Prospectus; the Company is duly qualified to do business as a
foreign corporation in good standing in all jurisdictions in which it owns or
leases substantial properties or in which the conduct of its business requires
such qualification, except where the failure to so qualify would not,
individually or in the aggregate, have a material adverse effect on the
properties, assets, operations, business or condition (financial or otherwise)
of the Company and its subsidiaries, taken as a whole; each “significant
subsidiary” (as defined in Regulation S-X of the Commission) of the Company has
been duly incorporated and is an existing corporation in good standing under
the laws of the jurisdiction of its incorporation, with corporate power and authority
to own, lease and operate its properties and conduct its business as described
in the Prospectus; each such significant subsidiary of the Company is in good
standing and is duly qualified to do business as a foreign corporation in all
jurisdictions in which it owns or leases substantial properties or in which the
conduct of its business requires such qualification, except where the failure
to be in good standing or so qualify would not, individually or in the
aggregate, have a material adverse effect on the properties, assets,
operations, business or

 

6

 

condition (financial or
otherwise) of the Company and its subsidiaries, taken as a whole; all of the
issued and outstanding capital stock of each such significant subsidiary has
been duly authorized and validly issued and is fully paid and non-assessable,
and all of such capital stock is owned by the Company, directly or through
subsidiaries, free and clear of any mortgage, pledge, lien, encumbrance, claim
or equity;

 

(ii)           The
Securities have been duly authorized by the Company and the terms thereof have
been established in accordance with the Indenture; and when duly executed and
authenticated in accordance with the provisions of the Indenture and delivered
to the Underwriters in accordance with this Agreement and the Terms Agreement
against payment of the agreed upon consideration therefor, the Securities will
constitute valid and legally binding obligations of the Company, entitled to
the benefits of the Indenture and enforceable against the Company in accordance
with their terms, subject to (a) bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating
to or affecting the enforcement of creditors’ rights, (b) to general principles
of equity (regardless of whether enforceability is considered in a proceeding
in equity or at law), (c) any requirement that a claim with respect to any
Security denominated in other than U.S. dollars (or a judgment denominated in
other than U.S. dollars in respect of such claim) be converted into U.S.
dollars at a rate of exchange prevailing on a date determined in accordance
with applicable law and (d) governmental authority to limit, delay or prohibit
the making of payments outside of the United States or in a foreign currency or
currency unit;

 

(iii)          The
Securities and the Indenture conform in all material respects to the
description thereof contained in the Prospectus;

 

(iv)          The
Indenture has been duly authorized, executed and delivered by the Company, has
been duly qualified under the Trust Indenture Act and constitutes a valid and
legally binding obligation of the Company, enforceable against the Company in
accordance with its terms, subject to (a) bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting the enforcement of creditors’ rights, (b) to general
principles of equity (regardless of whether enforceability is considered in a
proceeding in equity or at law), (c) any requirement that a claim with respect
to any Security denominated in other than U.S. dollars (or a judgment
denominated in other than U.S. dollars in respect of such claim) be converted
into U.S. dollars at a rate of exchange prevailing on a date determined in
accordance with applicable law and (d) governmental authority to limit, delay
or prohibit the making of payments outside of the United States or in a foreign
currency or currency unit;

 

(v)           Each
document filed pursuant to the Exchange Act and incorporated by reference in
the Prospectus (other than the financial statements and the notes thereto and
the supporting schedules and other financial or statistical data derived
therefrom contained or incorporated by reference therein, as to which no
opinion need be given) complied when filed, or as subsequently amended, as to
form in all material respects with the Exchange Act and the Rules and
Regulations thereunder;

 

7

 

(vi)          No consent,
approval, authorization or order of, or filing with, any governmental agency or
body or any court is required by the Company for the consummation of the
transactions contemplated by this Agreement and the Terms Agreement in
connection with the issuance or sale of the Securities by the Company, except
such as have been obtained and made under the Act and the Trust Indenture Act
and such as may be required under state securities laws or Blue Sky laws of
various jurisdictions;

 

(vii)         The
Registration Statement has become effective under the Act, the Prospectus was
duly filed with the Commission pursuant to the subparagraph of Rule 424(b)
specified in such opinion on the date specified therein, and, to the knowledge
of such counsel, no stop order suspending the effectiveness of the Registration
Statement or of any part thereof has been issued and no proceedings for that
purpose have been instituted or are pending or threatened under the Act; the
Registration Statement, as of its effective date, the date of the Terms
Agreement and the applicable Closing Date, and the Prospectus, as of the date
of the Terms Agreement and the applicable Closing Date, and any amendment or
supplement thereto, as of its date, complied and comply as to form in all material
respects with the requirements of the Act, the Exchange Act, the Trust
Indenture Act and the Rules and Regulations; the information in the Prospectus
under the captions “Description of the Notes” and “Description of the Debt
Securities” is accurate in all material respects; it being understood that such
counsel need express no opinion or belief as to the financial statements and
the notes thereto, and the supporting schedules and other financial or
statistical data derived therefrom contained or incorporated by reference in
the Registration Statement or the Prospectus;

 

(viii)        This
Agreement and the Terms Agreement have each been duly authorized, executed and
delivered by the Company;

 

(ix)           The
execution, delivery and performance of the Indenture, this Agreement and the
Terms Agreement, and the issuance and sale of the Securities and compliance
with the terms and provisions thereof did not and will not result in a breach
or violation of any of the terms and provisions of, or constitute a default
under, any law, statute, rule, regulation, judgment or order of any
governmental agency or body or any court having jurisdiction over the Company
or any subsidiary of the Company or any of their properties or any contract,
indenture, mortgage, loan agreement, note, deed of trust, lease or other
instrument to which the Company or any such subsidiary is a party or by which
the Company or any such subsidiary is bound or to which any of the properties
of the Company or any such subsidiary is subject; and such action will not
result in any violation of the provisions of the charter or by-laws of the
Company or any such subsidiary; the Company has the power and authority to
authorize, issue and sell the Securities as contemplated by this Agreement and
the Terms Agreement;

 

(x)            The
Company is not, and upon the issuance and sale of the Securities and the
application of the net proceeds therefrom as described in the Prospectus will
not be, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended;

 

8

 

(xi)           To the
best of such counsel’s knowledge and information, there is not pending or
threatened any action, suit, proceeding, inquiry or investigation to which the
Company or any of its subsidiaries thereof is a party or to which the assets,
properties or operations of the Company or any of its subsidiaries thereof is
subject, before or by any court or governmental agency or body, domestic or
foreign, which might reasonably be expected to result in a material adverse
change in the properties, assets, operations, business or condition (financial
or otherwise) of the Company and its subsidiaries taken as a whole or which
might reasonably be expected to materially and adversely affect the assets,
properties or operations thereof or the consummation of the transactions
contemplated under the Terms Agreement or the performance by the Company of its
obligations thereunder or under the Indenture or the Securities;

 

(xii)          To
the best of such counsel’s knowledge and information, (A) there are no
contracts, indentures, mortgages, loan agreements, notes, deeds of trust,
leases or other 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 (B) no default exists in the due performance or
observance of any obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, deed of trust, lease or
other instrument which breach would, individually or in the aggregate, have a
material adverse effect on the properties, assets, operations, business or
condition (financial or otherwise) of the Company and its subsidiaries, taken
as a whole; and

 

(xiii)         Nothing
has come to such counsel’s attention that causes such counsel to believe that
the Registration Statement or any post-effective amendment thereto, as of its
effective date, the date of the Terms Agreement or the applicable Closing Date,
contained or contains, as the case may be, any untrue statement of a material
fact or omitted or omits to state, as the case may be, any material fact
required to be stated therein or necessary to make the statements therein not
misleading or that the Prospectus or any amendment or supplement thereto, as of
its date, the date of the Terms Agreement or the applicable Closing Date,
included or includes, as the case may be, any untrue statement of a material
fact or omitted or omits to state, as the case may be, any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and the descriptions
in the Registration Statement and Prospectus of statutes, legal and
governmental proceedings and contracts and other documents constitute an
accurate summary of such statutes, proceedings, contracts and other documents
in all material respects; it being understood that such counsel need express no
opinion or belief as to the financial statements and the notes thereto, and the
supporting schedules and other financial or statistical data derived therefrom
contained or incorporated by reference in the Registration Statement or the
Prospectus.

 

(d)           The Underwriters
shall have received from Sidley Austin Brown & Wood LLP, counsel for the
Underwriters, such opinion or opinions, dated the Closing Date, with respect to
the Securities, the Registration Statement, the Prospectus and other related
matters as they may require, and the Company shall have furnished to such
counsel such documents as they request for the purpose of enabling them to pass
upon such matters.

 

9

 

(e)           The
Underwriters shall have received a certificate, dated the Closing Date, of the
Chairman and Chief Executive Officer or any Vice President and the principal
financial or accounting officer of the Company in which such officers, to the
best of their knowledge after reasonable investigation, shall state that the
representations and warranties of the Company in this Agreement are true and
correct, that the Company has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied hereunder at or prior to
the Closing Date, that no stop order suspending the effectiveness of the
Registration Statement or of any part thereof has been issued and no
proceedings for that purpose have been instituted or are contemplated by the
Commission and that, subsequent to the date of the most recent financial
statements of the Company in or incorporated by reference in the Prospectus,
there has been no material adverse change in the properties, assets,
operations, business or condition (financial or otherwise) of the Company and
its subsidiaries taken as a whole except as set forth in or contemplated by the
Prospectus.

 

(f)            The
Underwriters shall have received a letter or letters, dated the Closing Date,
of KPMG LLP, confirming that they are independent public accountants within the
meaning of the Act and the applicable published Rules and Regulations
thereunder and stating in effect that:

 

(i)            in their
opinion, the financial statements and schedules audited by them and included or
incorporated by reference in the Registration Statement or the Prospectus
comply in form in all material respects with the applicable accounting
requirements of the Act and the Exchange Act and the related published Rules
and Regulations;

 

(ii)           they have
performed the procedures specified by the American Institute of Certified
Public Accountants for a review of interim financial information as described
in Statement of Auditing Standards No. 100, Interim Financial Information, on
any unaudited financial statements included or incorporated by reference in the
Registration Statement or the Prospectus;

 

(iii)          on
the basis of the review, if any, referred to in clause (ii) above, a reading of
the latest available interim financial statements of the Company, inquiries of
officials of the Company who have responsibility for financial and accounting
matters and other specified procedures, nothing came to their attention that
caused them to believe that:

 

(A)          the
unaudited consolidated financial statements, if any, included or incorporated
by reference in the Registration Statement or the Prospectus do not comply as
to form in all material respects with the applicable accounting requirements of
the Act and the Exchange Act and the related published Rules and Regulations or
any material modification should be made to such unaudited financial statements
for them to be in conformity with generally accepted accounting principles;

 

(B)           the
unaudited summary financial information, if any, included or incorporated by
reference in the Registration Statement or the

 

10

 

Prospectus does
not agree with the amounts set forth in the unaudited consolidated financial
statements from which it was derived or was not determined on a basis
substantially consistent with that of the audited financial statements included
or incorporated by reference in the Registration Statement or the Prospectus;

 

(C)           at the
date of the latest available balance sheet read by such accountants, there was
any change in the capital stock or any increase in long-term debt, including
current maturities, or decrease in total shareholders’ equity of the Company
and consolidated subsidiaries, in each case as compared with amounts shown on
the latest balance sheet included or incorporated by reference in the
Registration Statement or the Prospectus; and at a subsequent specified date
not more than three business days prior to the Closing Date, there was any
change greater than three percent in the capital stock or any increase greater
than five percent in long-term debt, including current maturities, or decrease
greater than 3% in total shareholders’ equity of the Company and consolidated
subsidiaries as compared with amounts shown on the latest balance sheet
included or incorporated by reference in the Prospectus; and

 

(D)          for the
period from the date of the latest income statement included or incorporated by
reference in the Prospectus to the closing date of the latest available income
statements read by such accountants, there were any decreases, as compared with
the corresponding period of the preceding year, in consolidated net sales,
operating income or net income of the Company and consolidated subsidiaries;
and for the period from the closing date of the latest available income
statement included or incorporated by reference in the Registration Statement
or the Prospectus to a subsequent specified date not more than three business
days prior to the Closing Date, there were any decreases, as compared with the
corresponding period in the preceding year, in consolidated net sales,
operating income or net income of the Company and consolidated subsidiaries; 

 

except in all cases set forth in clauses (C) and (D)
above for changes, increases or decreases which the Registration Statement and
the Prospectus disclose have occurred or may occur;

 

(iv)          in addition
to the procedures specified in clause (ii) above, they have carried out certain
other limited procedures of a nature customarily the subject of independent
auditors’ comfort letters with respect to (A) specified dollar amounts (or
percentages derived from such dollar amounts) and (B) other financial
information of a nature customarily the subject of independent auditors’
comfort letters, which is contained or incorporated by reference in the
Registration Statement or the Prospectus, including, without limitation, the
ratios of earnings to fixed charges, and have found such dollar amounts,
percentages and other financial information to be in agreement with the
relevant accounting and financial records specified in such letter, except as
otherwise specified in such letter.

 

11

 

The Company will furnish the Representatives with such
additional copies of such opinions, certificates, letters and documents as they
reasonably request.

 

6.             Indemnification
and Contribution.

 

(a)           The
Company will indemnify and hold harmless each Underwriter against any losses,
claims, damages or liabilities, joint or several, to which such Underwriter may
become subject, under the Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material
fact contained in the Registration Statement, the Prospectus, or any amendment
or supplement thereto, or any related preliminary prospectus or preliminary
prospectus supplement, or arise out of or are 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, and will reimburse
each Underwriter for any legal or other expense reasonably incurred by such
Underwriter in connection with investigating or defending any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however,
that the Company will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement in or omission or alleged omission from any
of such documents in reliance upon and in conformity with written information
furnished to the Company by any Underwriter through the Representatives, if
any, specifically for use therein.

 

(b)           Each
Underwriter will indemnify and hold harmless the Company against any losses,
claims, damages or liabilities to which the Company may become subject, under
the Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in the Registration
Statement, the Prospectus, or any amendment or supplement thereto, or any
related preliminary prospectus or preliminary prospectus supplement, or arise
out of or are based upon the omission or the 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 reliance upon and in conformity with written
information furnished to the Company by such Underwriter through the
Representatives, if any, specifically for use therein, and will reimburse the Company
for any legal or other expenses reasonably incurred by the Company in
connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred.

 

(c)           Promptly
after receipt by an indemnified party under this Section 6 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under subsection (a) or
(b) above, notify the indemnifying party 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 otherwise than under
subsection (a) or (b) above.  In the case
of parties indemnified pursuant to subsection (a) above, counsel to the
indemnified parties shall be selected by the Representatives and, in the case
of parties indemnified pursuant to subsection (b) above, counsel to the
indemnified parties shall be selected by the Company.  An indemnifying party will be entitled to
participate in the defense of any such action; provided, however, that counsel
to the indemnifying party shall not,

 

12

 

except with the
consent of the indemnified party, also be counsel to the indemnifying
party).  In no event shall the
indemnifying party be liable to such indemnified party under this Section 6 for
the fees and expenses of more than one counsel (in addition to local counsel)
separate from its own counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances.

 

(d)           If the
indemnification provided for in this Section 6 is unavailable or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above, then
each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities
referred to in subsection (a) or (b) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Underwriters on the other from the offering of the Securities or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault
of the Company on the one hand and the Underwriters on the other in connection with
the statements or omissions which resulted in such losses, claims, damages or
liabilities as well as any other relevant equitable considerations.  The relative benefits received by the Company
on the one hand and the Underwriters on the other shall be deemed to be in the
same proportion as the total net proceeds from the offering (before deducting
expenses) received by the Company bear to the total underwriting discounts and
commissions received by the Underwriters. 
The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to
information supplied by the Company or the Underwriters and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission.  The
Company and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this subsection (d) were determined by pro rata
allocation (even if the Underwriters were treated as one entity) or by any
other method of allocation that does not take into account the equitable
considerations referred to in this subsection (d).  The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
subsection (d).  Notwithstanding the
provisions of this subsection (d), no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which
the Securities underwritten by it and distributed to the public were offered to
the public exceeds the amount of any damages which such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. 
No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation.  The Underwriters’ obligations in this
subsection (d) to contribute are several in proportion to their respective
underwriting obligations and not joint.

 

(e)           The
obligations of the Company under this Section 6 shall be in addition to any
liability which the Company may otherwise have and shall extend, upon the same
terms and conditions, to each person, if any, who controls any Underwriter
within the meaning of the Act; and the obligations of the Underwriters under
this Section shall be in addition to any

 

13

 

liability which
the respective Underwriters may otherwise have and shall extend, upon the same
terms and conditions, to each director of the Company, to each officer of the
Company who has signed the Registration Statement and to each person, if any,
who controls the Company within the meaning of the Act.

 

7.             Default
of Underwriters.  If any Underwriter
defaults or Underwriters default in their obligations to purchase Securities
under the Terms Agreement and the aggregate principal amount of the Securities
that such defaulting Underwriter or Underwriters agreed but failed to purchase
does not exceed 10% of the total principal amount of the Securities, the
Representatives may make arrangements satisfactory to the Company for the
purchase of such Securities by other persons, including any of the
Underwriters, but if no such arrangements are made by the Closing Date, the
non-defaulting Underwriters shall be obligated severally, in proportion to
their respective commitments under the Terms Agreement, to purchase the
Securities that such defaulting Underwriters agreed but failed to
purchase.  If any Underwriter defaults or
Underwriters default and the aggregate principal amount of the Securities with
respect to which such default or defaults occur exceeds 10% of the total
principal amount of the Securities and arrangements satisfactory to the
Representatives and the Company for the purchase of such Securities by other
persons are not made within 36 hours after such default, such Terms Agreement
will terminate without liability on the part of any nondefaulting Underwriter
or the Company, except as provided in Section 8.  As used in this Agreement, the term “Underwriter”
includes any person substituted for an Underwriter under this Section.  Nothing herein will relieve a defaulting
Underwriter from liability for its default. 
The respective commitments of the several Underwriters for the purposes
of this Section shall be determined without regard to reduction in the
respective Underwriters’ obligations to purchase the principal amounts of the
Securities set forth opposite their names in the Terms Agreement as a result of
Delayed Delivery Contracts entered into by the Company.

 

The foregoing obligations and agreements set forth in
this Section will not apply if the Terms Agreement specifies that such
obligations and agreements will not apply.

 

8.             Survival
of Certain Representations and Obligations. 
The respective indemnities, agreements, representations, warranties and
other statements of the Company or its officers and of the several Underwriters
set forth in or made pursuant to this Agreement or in the Terms Agreement will
remain in full force and effect, regardless of any investigation, or statement
as to the results thereof, made by or on behalf of any Underwriter, the Company
or any of their respective representatives, officers or directors or any
controlling person and will survive delivery of and payment for the
Securities.  If the Terms Agreement is
terminated pursuant to Section 7 or if for any reason the purchase of the
Securities by the Underwriters under the Terms Agreement is not consummated,
the Company shall remain responsible for the expenses to be paid or reimbursed
by it pursuant to Section 4 and the respective obligations of the Company and
the Underwriters pursuant to Section 6 shall remain in effect.  If the purchase of the Securities by the
Underwriters is not consummated for any reason other than solely because of the
termination of this Agreement pursuant to Section 7 or the occurrence of any
event specified in clause (iii) (other than with respect to the Company’s
securities), (iv) or (v) of Section 5(b), the Company will reimburse the
Underwriters for all out-of-pocket expenses (including fees and disbursements
of counsel) reasonably incurred by them in connection with the offering of the
Securities.

 

14

 

9.             Notices.  All communications hereunder will be in
writing and, if sent to the Underwriters, will be mailed, delivered or
telegraphed and confirmed to them at their addresses furnished to the Company
in writing for the purpose of communications hereunder or, if sent to the
Company, will be mailed, delivered or telegraphed and confirmed to it at
PepsiAmericas, Inc., 4000 Dain Rauscher Plaza, 60 South Sixth Street,
Minneapolis, Minnesota 55402, Attention: Secretary.

 

10.           Successors.  This Agreement will inure to the benefit of
and be binding upon the Company and such Underwriters as are identified in
Terms Agreements and their respective successors and the officers and directors
and controlling persons referred to in Section 6, and no other person will have
any right or obligation hereunder.

 

11.           Applicable
Law.  This Agreement and the Terms
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

15

 

* * * *

 

If the foregoing correctly sets forth our agreement, please indicate
your acceptance hereof in the space provided for that purpose below.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  PEPSIAMERICAS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  G. Michael Durkin, Jr.

  	
   

  
	
   

  	
   

  	
  Name: G. Michael
  Durkin, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice
  President and

  
	
   

  	
   

  	
   

  	
  Chief Financial
  Officer

  
					

 

CONFIRMED AND ACCEPTED,
as of

the date first above written:

 

BANC OF AMERICA
SECURITIES LLC

CITIGROUP GLOBAL MARKETS
INC.

J.P. MORGAN SECURITIES
INC. 

WACHOVIA CAPITAL MARKETS,
LLC 

BNP PARIBAS SECURITIES
CORP. 

WELLS FARGO SECURITIES,
LLC

LOOP
CAPITAL MARKETS, LLC

 

	
  By:

  	
  BANC OF AMERICA
  SECURITIES LLC

  
	
   

  
	
   

  	
  By:

  	
  /s/ Peter J.
  Carbone

  	
   

  
	
   

  	
  Name: Peter J.
  Carbone

  
	
   

  	
  Title: Vice
  President

  

 

16

 

ANNEX I

 

PEPSIAMERICAS,
INC.

(“COMPANY”)

 

DEBT
SECURITIES

 

TERMS
AGREEMENT

 

                ,
200   

 

PepsiAmericas, Inc.

4000 Dain Rauscher Plaza

60 South Sixth Street

Minneapolis, Minnesota
55402

Attention:

 

Dear Sirs:

 

On behalf of the several Underwriters named in
Schedule A hereto (“Underwriters”) and for their respective accounts, we offer
to purchase, on and subject to the terms and conditions of the Underwriting
Agreement dated, 200   between PepsiAmericas, Inc. and the
Underwriters (“Underwriting Agreement”), the following securities (“Securities”)
on the following terms:

 

Title:  [       %]
[FLOATING RATE]—Notes,—Debentures—Due [YEAR]

 

Principal Amount: 
$               .

 

Interest:  [ %
PER ANNUM, FROM, 200   , PAYABLE [FREQUENCY] ON [DATES],
COMMENCING 200  , TO HOLDERS OF RECORD ON THE PRECEDING                
OR                 ,
AS THE CASE MAY BE.] [ZERO COUPON.]

 

Maturity:                             ,         .

 

Optional Redemption: [NONE][SPECIFY TERMS]

 

Sinking Fund: [YES][NO]

 

Delayed Delivery Contracts:  [NONE] [SPECIFY TERMS]

 

Purchase Price: 
       % of principal amount[, plus
accrued interest[, IF ANY,] from                  ,
200   ].

 

[Initial Public Offering Price:             %
of principal amount, plus accrued interest [, IF ANY,] from           ,
200   ].

 

Form:                                           

 

I-1

 

Closing:  A.M.
on                                       ,
200   , at              
in Federal (same day) funds.

 

Representative[s]: 
[NAME[S] AND ADDRESS[ES]]

 

The respective principal amounts of the Securities to
be purchased by each of the Underwriters are set forth opposite their names in
Schedule A hereto.

 

It is understood that we may, with your consent, amend
this offer to add additional Underwriters and reduce the aggregate principal
amount to be purchased by the Underwriters listed in Schedule A hereto by the
aggregate principal amount to be purchased by such additional Underwriters.

 

The provisions of the Underwriting Agreement are
incorporated herein by reference.

 

The Securities will be made available for checking and
packaging at the office of                     
at least 24 hours prior to the Closing Date.

 

Please signify your acceptance of the foregoing by
return wire not later than 3:00 P.M. today.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME AND SIGNATURE
  BLOCK FOR

  UNDERWRITER(S)]

  

 

I-2

 

SCHEDULE
A

 

	
  Underwriter

  	
   

  	
  Principal

  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [UNDERWRITER(S)]

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
   

  	
   

  

 

I-3

 

ANNEX II

 

                   ,
200   

 

DELAYED
DELIVERY CONTRACT

 

PepsiAmericas, Inc.

c/o

 

 

Gentlemen:

 

The undersigned hereby agrees to purchase from
PepsiAmericas, Inc., a Delaware corporation (“Company”), and the Company agrees
to sell to the undersigned, as of the date hereof, for delivery on                 ,
200    (“Delivery Date”).

 

$                

 

principal amount of the Company’s                   
securities (“Securities”), offered by the Company’s Prospectus dated                  ,
200  , and a Prospectus Supplement dated                ,
200   relating thereto, receipt of copies of which is hereby
acknowledged, at       % of the principal amount
thereof plus accrued interest, if any, and on the further terms and conditions
set forth in this Delayed Delivery Contract (“Contract”).

 

Payment for the Securities that the undersigned has
agreed to purchase for delivery on the Delivery Date shall be made to the
Company or its order by certified or official bank check in Federal (same day)
funds at the office of                        
at 10:00 A.M. on the Delivery Date upon delivery to the undersigned of the
Securities to be purchased by the undersigned for delivery on such Delivery
Date in definitive fully registered form and in such denominations and
registered in such names as the undersigned may designate by written or
telegraphic communication addressed to the Company not less than five full
business days prior to the Delivery Date.

 

It is expressly agreed that the provisions for delayed
delivery and payment are for the sole convenience of the undersigned; that the
purchase hereunder of Securities is to be regarded in all respects as a
purchase as of the date of this Contract; that the obligation of the Company to
make delivery of and accept payment for, and the obligation of the undersigned
to take delivery of and make payment for, Securities on the Delivery Date shall
be subject only to the conditions that (1) investment in the Securities shall
not at the Delivery Date be prohibited under the laws of any jurisdiction in
the United States to which the undersigned is subject and (2) the Company shall
have sold to the Underwriters the total principal amount of the Securities less
the principal amount thereof covered by this and other similar Contracts.  The undersigned represents that its
investment in the Securities is not, as of the date hereof, prohibited under
the laws of any jurisdiction to which the undersigned is subject and which
governs such investment.

 

II-1

 

Promptly after completion of the sale to the Underwriters the Company
will mail or deliver to the undersigned at its address set forth below notice
to such effect, accompanied by a copy of the opinion of counsel for the Company
delivered to the Underwriters in connection therewith.

 

This Contract will inure to the benefit of and be
binding upon the parties hereto and their respective successors, but will not
be assignable by either party hereto without the written consent of the other.

 

It is understood that the acceptance of any such
Contract is in the Company’s sole discretion and, without limiting the
foregoing, need not be on a first-come, first-served basis.  If this Contract is acceptable to the
Company, it is requested that the Company sign the form of acceptance below and
mail or deliver one of the counterparts hereof to the undersigned at its
address set forth below.  This will
become a binding contract between the Company and the undersigned when such
counterpart is so mailed or delivered.

 

	
   

  	
  Yours very truly,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF PURCHASER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [TITLE OF SIGNATORY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [ADDRESS OF PURCHASER]

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted, as of the
  above date.

  	
   

  
	
   

  	
   

  
	
  PEPSIAMERICAS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
					

 

II-2

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