Document:

exv4w2

 

EXHIBIT 4.2

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) is made and entered into this 22nd day of
February, 2007, among Archer-Daniels-Midland Company, a Delaware corporation (the “Company”), and
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Merrill Lynch, Pierce, Fenner &
Smith Incorporated, acting as representatives (the “Representatives”) of the several initial
purchasers named in Schedule A to the Purchase Agreement (as defined below) (collectively,
the “Initial Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement, dated February 15, 2007, among the
Company and the Initial Purchasers (the “Purchase Agreement”), which provides for the sale by the
Company to the Initial Purchasers of $1,150,000,000 aggregate principal amount of the Company’s
0.875% Convertible Senior Notes due 2014 (the “Notes” and, together with the Option Securities (as
defined below) and the shares of Common Stock (as defined below) into which the Notes and the
Option Securities are convertible, the “Securities”).

     In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide the registration rights set forth in this Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended.

     “1934 Act” shall mean the Securities Exchange Act of l934, as amended.

     “1939 Act” shall mean the Trust Indenture Act of 1939, as amended.

     “Closing Time” shall have the meaning given to it in the Purchase Agreement.

     “Common Stock” shall mean any shares of common stock, no par value, of the Company and any
other shares of capital stock as may constitute “Common Stock” for purposes of the Indenture.

     “Company” shall have the meaning set forth in the preamble of this Agreement and shall also
include the Company’s successors.

     “Depositary” shall mean The Depository Trust Company, or any other depositary appointed by the
Company; provided, however, that such other depositary must have an address in the Borough of
Manhattan, in the City of New York.

 

 

     “Effectiveness Period” shall have the meaning set forth in Section 2.1(b) of this Agreement.

     “Final Memorandum” shall mean the offering memorandum of the Company with respect to the
Securities, dated February 15, 2007.

     “Free Writing Prospectus” shall have the meaning set forth in Rule 405 of the 1933 Act.

     “Holder” shall mean any Initial Purchaser, for so long as it owns any Registrable Securities,
and each of its successors, assigns and direct and indirect transferees who become registered
owners of Registrable Securities under the Indenture.

     “Indenture” shall mean, collectively, the Indenture relating to the Notes, dated as of the
date hereof, between the Company and The Bank of New York, as Trustee, as the same may be amended,
supplemented, waived or otherwise modified from time to time in accordance with the terms thereof.

     “Initial Purchasers” shall have the meaning set forth in the preamble of this Agreement.

     “Issuer Free Writing Prospectus” shall have the meaning set forth in Rule 433 of the 1933 Act.

     “Liquidated Damages” shall have the meaning set forth in Section 2.4 of this Agreement.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
outstanding Registrable Securities (assuming conversion of all Securities into Common Stock);
provided, that whenever the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or any Affiliate (as
defined in the Indenture) of the Company shall be disregarded in determining whether such consent
or approval was given by the Holders of such required percentage amount.

     “Option Securities” shall mean the Securities described in Section 2(b) of the Purchase
Agreement.

     “Person” shall mean an individual, partnership (general or limited), corporation, limited
liability company, trust, unincorporated organization or other entity, or a government or agency or
political subdivision thereof.

     “Prospectus” shall mean the prospectus relating to the Securities included in a Shelf
Registration Statement, including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including any such prospectus supplement with respect to
the terms of the offering of any portion of the Registrable Securities
covered by a Shelf Registration Statement, and by all other amendments and supplements to a

2

 

prospectus, including post-effective amendments, and in each case including all materials
incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble to this Agreement.

     “Questionnaire” shall have the meaning set forth in Section 2.1(c) of this Agreement.

     “Registrable Securities” shall mean all or any of the Securities; provided, however, that any
such Securities shall cease to be Registrable Securities when (i) a Shelf Registration Statement
with respect to such Securities shall have become effective under the 1933 Act and such Securities
shall have been sold or transferred pursuant to such Shelf Registration Statement, (ii) such
Securities have been or may be sold or transferred to the public pursuant to Rule l44 (or any
similar provision then in force, including Rule 144(k) but not Rule 144A) under the 1933 Act or
(iii) such Securities shall have ceased to be outstanding.

     “Registration Default” shall have the meaning set forth in Section 2.4 of this Agreement.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all SEC, New York
Stock Exchange or National Association of Securities Dealers, Inc. (the “NASD”) registration and
filing fees, including, if applicable, the fees and expenses of any “qualified independent
underwriter” (and its counsel) that is required to be retained by any Holder of Registrable
Securities in accordance with the rules and regulations of the NASD, (ii) all fees and expenses
incurred in connection with compliance with state securities or blue sky laws and compliance with
the rules of the NASD (including reasonable fees and disbursements of counsel for any Underwriters
or Holders in connection with blue sky qualification of any of the Registrable Securities and any
filings with the NASD), (iii) all expenses of the Company in preparing or assisting in preparing,
word processing, printing and distributing any Shelf Registration Statement, any Prospectus, any
amendments or supplements thereto, any securities sales agreements and other documents relating to
the performance of and compliance with this Agreement, (iv) all fees and expenses incurred in
connection with the listing, if any, of any of the Registrable Securities on any securities
exchange or exchanges, (v) all rating agency fees, if any, (vi) the fees and disbursements of
counsel for the Company and of the independent public accountants of the Company, including the
expenses of any special audits or “comfort” letters required by or incident to such performance and
compliance, (vii) the reasonable fees and expenses of the Trustee, and any escrow agent or
custodian and (viii) any fees and expenses of any special experts retained by the Company in
connection with any Shelf Registration Statement, but excluding any underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of Registrable
Securities by a Holder.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency or government
body performing the functions currently performed by the United States Securities and Exchange
Commission.

3

 

     “Securities” shall have the meaning set forth in the preamble of this Agreement.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to Section 2.1 of this Agreement which covers all of the Registrable Securities on an
appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the
SEC, and all amendments and supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all exhibits thereto and all
materials incorporated by reference therein; provided, however, that a registration statement shall
not be deemed a Shelf Registration Statement until such time as it includes a Prospectus relating
to the Securities.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2.1 of this
Agreement.

     “Suspension Period” shall have the meaning set forth in Section 2.5 of this Agreement.

     “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

     “Underwriter” shall have the meaning set forth in Section 4(a) of this Agreement.

     2. Registration under the 1933 Act.

     2.1 Shelf Registration.

     (a) The Company shall, at its cost, file with the SEC, and use its reasonable efforts to cause
to become effective, a Shelf Registration Statement relating to the offer and sale of the
Registrable Securities by the Holders that have provided the information pursuant to Section 2.1(c)
no later than 220 days after the Closing Time.

     (b) The Company shall, at its cost, use its reasonable efforts, subject to Section 2.5, to
keep the Shelf Registration Statement continuously effective in order to permit the Prospectus
forming part thereof to be usable by Holders for a period of two years from the first Closing Time,
or until the Securities cease to be Registrable Securities (the “Effectiveness Period”).

     (c) Notwithstanding any other provision hereof, no Holder of Registrable Securities may
include any of its Registrable Securities in the Shelf Registration Statement pursuant to this
Agreement unless the Holder furnishes to the Company a fully completed notice and questionnaire in
the form attached as Annex A to the Final Memorandum (the “Questionnaire”) and such other
information in writing as the Company may reasonably request in writing for use in connection with
the Shelf Registration Statement or Prospectus included therein and in any application to be filed
with or under state securities laws. At least 30 days prior to the filing of the Shelf Registration
Statement, the Company will provide notice to the Holders of its intention to file the Shelf
Registration Statement; provided, however, that if the Company elects to register the Registrable
Securities pursuant to a Shelf Registration Statement that has already been declared effective, the
Company will provide notice to the Holders of its intention to file the
initial Prospectus at least 30 days prior to such filing. In order to be named as a selling

4

 

securityholder in the Shelf Registration Statement or Prospectus at the time of effectiveness of
the Shelf Registration Statement or such Prospectus, as applicable, each Holder must no later than
20 days following notice by the Company of such filing, furnish the completed Questionnaire and
such other information that the Company may reasonably request in writing, if any, to the Company
in writing and the Company will include the information from the completed Questionnaire and such
other information, if any, in the Shelf Registration Statement and the Prospectus, as necessary and
in a manner, so that upon effectiveness of the Shelf Registration Statement the Holder will be
permitted to deliver the Prospectus to purchasers of the Holder’s Registrable Securities. From and
after the date that the Shelf Registration Statement becomes effective, upon receipt of a completed
Questionnaire and such other information that the Company may reasonably request in writing, if
any, the Company will use its reasonable efforts to file any amendments or supplements to the Shelf
Registration Statement necessary for such Holder to be named as a selling securityholder in the
Prospectus contained therein to permit such Holder to deliver the Prospectus to purchasers of the
Holder’s Securities (subject to the Company’s right to suspend the Shelf Registration Statement as
described in Section 2.5 below); provided, however, that the Company shall not be required to file
any such amendment or supplement to the Shelf Registration Statement until such time as the Company
has received completed Questionnaires with respect to at least $100 million aggregate principal
amount of Registrable Securities and in no event more than once in any calendar quarter. Holders
that do not deliver a completed written Questionnaire and such other information, as provided for
in this Section 2.1(c), will not be named as selling securityholders in the Prospectus. Each Holder
named as a selling securityholder in the Prospectus agrees to promptly furnish to the Company all
information required to be disclosed in order to make information previously furnished to the
Company by the Holder not materially misleading and any other information regarding such Holder and
the distribution of such Holder’s Registrable Securities as the Company may from time to time
reasonably request in writing.

     (d) Each Holder agrees that if such Holder wishes to sell Registrable Securities pursuant to a
Shelf Registration Statement and related Prospectus it will do so only in accordance with Section
2.1(c) and Section 2.5. Each Holder agrees not to sell any Registrable Securities pursuant to the
Shelf Registration Statement without delivering, or causing to be delivered, a Prospectus to the
purchaser thereof and, following termination of the Effectiveness Period, to notify the Company,
within ten days of a written request by the Company, of the amount of Registrable Securities sold
pursuant to the Shelf Registration Statement and, in the absence of a response, the Company may
assume that all of such Holder’s Registrable Securities have been so sold.

     (e) The Company represents and agrees that, unless it obtains the prior consent of a majority
of the Registrable Securities that are registered under the Shelf Registration Statement at such
time or the consent of the managing Underwriter in connection with any underwritten offering of
Registrable Securities, and each Holder represents and agrees that, unless it obtains the prior
consent of the Company and any such Underwriter, it will not make any offer relating to the
Securities that would constitute an Issuer Free Writing Prospectus, or that would otherwise
constitute a Free Writing Prospectus, required to be filed with the SEC. The Company represents
that any Issuer Free Writing Prospectus will not include any information that conflicts with the
information contained in the Shelf Registration Statement or the Prospectus; and that any
Issuer

5

 

Free Writing Prospectus, when taken together with the information in the Shelf Registration
Statement and the Prospectus, 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 light of the
circumstances under which they were made, not misleading.

     The Company agrees to supplement or amend the Shelf Registration Statement if required by the
rules, regulations or instructions applicable to the registration form used by the Company, or to
the extent the Company does not reasonably object, as reasonably requested by the Initial
Purchasers with respect to information relating to such Initial Purchaser or by a Holder with
respect to information relating to such Holder, and to furnish to the Holders of Registrable
Securities copies of any such supplement or amendment promptly after its being used or filed with
the SEC.

     2.2 Expenses. The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2.1. Each Holder shall pay all underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s
Registrable Securities pursuant to the Shelf Registration Statement.

     2.3 Effectiveness. After a Shelf Registration Statement is effective, if the offering
of Registrable Securities pursuant to a Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other governmental agency or
court, such Shelf Registration Statement will be deemed not to have been effective during the
period of such interference, until the offering of Registrable Securities pursuant to such Shelf
Registration Statement may legally resume.

     2.4 Interest. In the event that (a) a Shelf Registration Statement has not been filed
with the SEC and become effective on or before the 220th calendar day following the
first Closing Time, (b) after effectiveness, subject to Section 2.5, the Shelf Registration
Statement fails to be effective or usable by the Holders without being succeeded within ten
business days by a post-effective amendment or a report filed with the SEC pursuant to the 1934 Act
that cures the failure to be effective or usable, or (c) the Shelf Registration Statement is
unusable by the Holders for any reason, and the number of days for which the Shelf Registration
Statement shall not be usable exceeds the Suspension Period (as defined in Section 2.5) (each such
event being a “Registration Default”), additional interest, as liquidated damages (“Liquidated
Damages”), will accrue at a rate per annum of 0.125% of the principal amount of the Registrable
Securities then remaining for the first 90-day period from and including the day following the
Registration Default, and thereafter at a rate per annum of 0.25% of the principal amount of the
Registrable Securities; provided that in no event shall Liquidated Damages accrue at a rate per
annum exceeding 0.25% of the principal amount of the Registrable Securities; and provided further
that no Liquidated Damages shall accrue after the second anniversary of the first Closing Time; and
further provided that Liquidated Damages shall not accrue under clause (b) or (c) above with
respect to any Holder that (x) does not submit a properly completed Questionnaire and (y) is not
named as a selling securityholder in the Shelf Registration Statement. Upon the cure of all
Registration Defaults then continuing, the accrual of Liquidated Damages will automatically cease
and the interest rate borne by the Registrable Securities will revert to the original interest
rate at such time. Liquidated Damages shall be computed based on the actual number of days

6

 

elapsed in each 90-day period in which the Shelf Registration Statement is not effective or is
unusable. Holders who have converted Registrable Securities into Common Stock will not be entitled
to receive any Liquidated Damages with respect to such Common Stock or the issue price of the
Registrable Securities converted.

     The parties agree that the sole monetary damages payable for a violation of the terms of this
Agreement with respect to which Liquidated Damages are expressly provided shall be such Liquidated
Damages. Nothing shall preclude a Holder of Registrable Securities from pursuing or obtaining
specific performance or equitable relief with regard to this Agreement. Each obligation to pay
Liquidated Damages shall be deemed to accrue from and including the day following the Registration
Default to but excluding the day on which the Registration Default is cured.

     A Registration Default under clause (a) above shall be cured on the date that the Shelf
Registration Statement is filed and has become effective. A Registration Default under clause (b)
above shall be cured on the date an amended Shelf Registration Statement becomes effective or the
Company otherwise declares the Shelf Registration Statement and the Prospectus useable. The
Company will have no liabilities for monetary damages other than the Liquidated Damages with
respect to any Registration Default.

     The parties agree that the Liquidated Damages provided for in this Section 2.4 constitute a
reasonable estimate of the damages that may be incurred by Holders of Registrable Securities and do
not constitute a penalty.

     2.5 Suspension. The Company may suspend the use of any Prospectus, without incurring
or accruing any obligation to pay Liquidated Damages pursuant to Section 2.4, for a period not to
exceed 90 consecutive calendar days or an aggregate of 180 calendar days in any twelve-month period
(each, a “Suspension Period”) if the Company shall have determined in good faith that because of
valid business reasons (not including avoidance of the Company’s obligations hereunder), including
without limitation proposed or pending corporate developments and similar events or because of
filings with the SEC, it is in the best interests of the Company to suspend such use, and prior to
suspending such use the Company provides the Holders with notice of such suspension, which notice
need not specify the nature of the event giving rise to such suspension. Each Holder shall keep
confidential any communications received by it from the Company regarding the suspension of the use
of the Prospectus, except as required by applicable law.

     3. Registration Procedures.

     In connection with the obligations of the Company with respect to the Shelf Registration, the
Company shall:

     (a) before filing any Shelf Registration Statement or Prospectus or any amendments or
supplements thereto with the SEC, furnish to the Representatives on behalf of the Initial
Purchasers copies of all such documents proposed to be filed and use reasonable efforts to reflect
in each such document when so filed with the SEC such comments as the Representatives
reasonably shall propose within three (3) Business Days of the delivery of such copies to the

7

 

Representatives;

     (b) prepare and file with the SEC such amendments and post-effective amendments to the Shelf
Registration Statement as may be necessary under applicable law to keep the Shelf Registration
Statement effective for the Effectiveness Period, subject to Section 2.5; and cause each Prospectus
to be supplemented by any required prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and use reasonable
efforts to comply during the Effectiveness Period with the provisions of the 1933 Act, the 1934 Act
and the rules and regulations thereunder required to enable the disposition of all Registrable
Securities covered by the Shelf Registration Statement in accordance with the intended method or
methods of distribution by the selling Holders thereof;

     (c) (i) notify each Holder of Registrable Securities of the filing of a Shelf Registration
Statement with respect to the Registrable Securities; (ii) during the Effectiveness Period, furnish
to each Holder of Registrable Securities that has provided the information required by Section
2.1(c) and to each Underwriter of an underwritten offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any
amendment or supplement thereto and such other documents as such Holder or Underwriter may
reasonably request in writing, including financial statements and schedules and, if the Holder so
requests, all exhibits in connection with the sale or other disposition of the Registrable
Securities; and (iii) subject to Section 2.5 and to any notice by the Company in accordance with
Section 3(e) of the existence of any fact of the kind described in Sections 3(e)(ii), (iii), (iv),
(v) and (vi), hereby consent to the use of the Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities that has provided the information required by
Section 2.1(c) in connection with the offering and sale of the Registrable Securities covered by
such Prospectus or any amendment or supplement thereto in the manner set forth therein;

     (d) use reasonable efforts to register or qualify or cooperate with the Holders in connection
with the registration or qualification (or exemption from such registration or qualification) of
the Registrable Securities under all applicable state securities or “blue sky” laws of such
jurisdictions as any Holder of Registrable Securities covered by a Shelf Registration Statement and
each Underwriter of an underwritten offering of Registrable Securities shall reasonably request in
writing, and do any and all other acts and things which may be reasonably necessary or advisable to
enable each such Holder and Underwriter to consummate the disposition in each such jurisdiction of
such Registrable Securities owned by such Holder; provided, however, that the Company shall not be
required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(d), or (ii) take any
action which would subject it to general service of process or taxation in any such jurisdiction
where it is not then so subject;

     (e) notify as promptly as reasonably practicable each Holder of Registrable Securities under a
Shelf Registration that has provided the information required by Section 2.1(c) and, if requested
by such Holder, confirm such advice in writing promptly (i) when a Shelf Registration Statement has
become effective and when any post-effective amendments thereto become effective, (ii) of any
request, following the effectiveness of the Shelf Registration Statement

8

 

under the 1933 Act, by the SEC or any state securities authority for post-effective
amendments and supplements to a Shelf Registration Statement and Prospectus or for additional
information after the Shelf Registration Statement has become effective, (iii) of the issuance by
the SEC or any state securities authority of any stop order suspending the effectiveness of a Shelf
Registration Statement or the initiation of any proceedings for that purpose, (iv) of the
occurrence (but not the nature of or details concerning) of any event or the discovery of any facts
during the period a Shelf Registration Statement is effective which makes any statement made in
such Shelf Registration Statement or the related Prospectus untrue in any material respect or which
requires the making of any changes in such Shelf Registration Statement or Prospectus in order to
make the statements therein not misleading (provided, however, that no notice by the Company shall
be required pursuant to this clause (iv) in the event that the Company either promptly files a
Prospectus supplement to update the Prospectus or a Form 8-K or other appropriate 1933 Act report
that is incorporated by reference into the Shelf Registration Statement, which, in either case,
contains the requisite information that results in such Shelf Registration Statement no longer
containing any untrue statement of material fact or omitting to state a material fact necessary to
make the statements therein not misleading), (v) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose and (vi) of any
determination by the Company that a post-effective amendment to such Shelf Registration Statement
would be required by applicable law;

     (f) as promptly as reasonably practicable furnish to the Representatives as representatives of
the Initial Purchasers and one special counsel to the Initial Purchasers on behalf of the Holders
(i) copies of any comment letters received from the SEC with respect to a Shelf Registration
Statement or any documents incorporated therein and (ii) any other request by the SEC or any state
securities authority for amendments or supplements to a Shelf Registration Statement and Prospectus
or for additional information with respect to the Shelf Registration Statement and Prospectus;

     (g) use reasonable efforts to obtain the withdrawal of any order suspending the effectiveness
of a Shelf Registration Statement at the earliest practicable moment or, if any such order or
suspension is made effective during any Suspension Period, at the earliest practicable moment after
the Suspension Period;

     (h) upon the occurrence of any event or the discovery of any facts, each as contemplated by
Sections 3(e)(ii), (iii), (iv), (v) and (vi), as promptly as practicable after the occurrence of
such an event, use reasonable efforts to prepare a supplement or post-effective amendment to the
Shelf Registration Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered to the purchasers of
the Registrable Securities, such Prospectus will not contain at the time of such delivery any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading or
will remain so qualified. At such time as such public disclosure is otherwise made or the Company
determines that such disclosure is not necessary, in each case to correct any misstatement of a
material fact or to include any omitted material fact, the Company agrees promptly to notify
each Holder that has provided the information required by Section

9

 

2.1(c) of such determination and to furnish each Holder such number of copies of the Prospectus as
amended or supplemented, as such Holder may reasonably request;

     (i) (i) use reasonable efforts to cause the Indenture to be qualified under the 1939 Act in
connection with the registration of the Registrable Securities, (ii) cooperate with the Trustee and
the Holders to effect such changes to the Indenture as may be required for the Indenture to be so
qualified in accordance with the terms of the 1939 Act and (iii) execute, and use reasonable
efforts to cause the Trustee to execute, all documents as may be required to effect such changes
and all other forms and documents required to be filed with the SEC to enable the Indenture to be
so qualified in a timely manner;

     (j) enter into such customary agreements and take all other customary and appropriate actions
in order to expedite or facilitate the disposition of such Registrable Securities, including, but
not limited to:

     (i) obtain opinions of counsel to the Company and updates thereof addressed to each
selling Holder and the Underwriters, if any, covering the matters set forth in the opinion
of counsel to the Company delivered at each Closing Time;

     (ii) obtain “comfort” letters and updates thereof from the Company’s independent
certified public accountants (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the Company for
which financial statements are, or are required to be, included in the Shelf Registration
Statement) addressed to the Underwriters, if any, and the board of directors of the Company,
such letters substantially in the form and covering the matters covered in the comfort
letter delivered on each Closing Time;

     (iii) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 with respect to the Underwriters and all
other parties to be indemnified pursuant to said Section or, at the request of any
Underwriters, in the form customarily provided to such Underwriters in similar types of
transactions; and

     (iv) deliver such documents and certificates as may be reasonably requested and as are
customarily delivered in similar offerings to the Holders of a majority in principal amount
of the Registrable Securities being sold and the managing Underwriters, if any.

     The above shall be done only in connection with any underwritten offering of Registrable
Securities using such Shelf Registration Statement pursuant to an underwriting or similar agreement
as and to the extent required thereunder, and as reasonably requested by any of the parties
thereto; provided, however, that in no event will an underwritten offering of Registrable
Securities be made without the prior written agreement of the Company;

     (k) if reasonably requested in connection with a disposition of Registrable Securities,

10

 

make reasonably available for inspection during normal business hours by representatives
of the Holders of the Registrable Securities, any Underwriters participating in any disposition
pursuant to a Shelf Registration Statement and any counsel or accountant retained by any of the
foregoing, all relevant financial and other records, pertinent corporate documents and properties
of the Company reasonably requested by any such Persons, and cause the appropriate officers,
directors and designated employees to make reasonably available for inspection during normal
business hours all relevant information reasonably requested by any such representative,
Underwriter, special counsel or accountant in connection with a Shelf Registration Statement, and
make such representatives of the Company available for discussion of such documents as shall be
reasonably requested by the Initial Purchasers, in each case as is customary for “due diligence”
investigations; provided that such Persons shall first agree in writing with the Company that any
information that is reasonably designated by the Company as confidential at the time of delivery
shall be kept confidential by such Persons and shall be used solely for the purposes of exercising
rights under this Agreement and such Person shall not engage in trading any securities of the
Company until such material non-public information becomes properly publicly available, unless (i)
disclosure of such information is required by court or administrative order or is necessary to
respond to inquires of regulatory authorities, (ii) disclosure of such information is required by
law (including any disclosure requirements pursuant to federal securities laws in connection with
the filing of any Shelf Registration Statement or the use of any Prospectus referred to in this
Agreement upon a customary opinion of counsel for such Persons delivered and reasonably
satisfactory to the Company), (iii) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard by any such Person, or (iv) such
information becomes available to any such Person from a source other than the Company and such
source is not bound by a confidentiality agreement; provided further, that, the foregoing
inspection and information gathering shall, to the greatest extent possible, be coordinated on
behalf of all the Holders and the other parties entitled thereto by special counsel to the Holders;

     The above shall be done only in connection with any underwritten offering of Registrable
Securities using such Shelf Registration Statement pursuant to an underwriting or similar agreement
as and to the extent required thereunder, and as reasonably requested by any of the parties
thereto; provided, however, that in no event will an underwritten offering of Registrable
Securities be made without the prior written agreement of the Company;

     (l) at a reasonable time prior to filing the Shelf Registration Statement, any Prospectus
forming a part thereof, any amendment to the Shelf Registration Statement or amendment or
supplement to such Prospectus (other than amendments and supplements that do nothing more than name
Holders and provide information with respect thereto), furnish to the Representatives as
representatives of the Initial Purchasers and one special counsel to the Initial Purchasers copies
of all such documents proposed to be filed and use its reasonable efforts to reflect in each such
document when so filed with the SEC such comments as the Initial Purchasers and such special
counsel to the Initial Purchasers reasonably shall propose within three (3) Business Days of the
delivery of such copies to the Initial Purchasers and counsel to the Initial Purchasers. In
addition, if any Holder that has provided the information required by Section 2.1(c) shall so
request in writing, a reasonable time prior to filing any such documents, the Company shall furnish
to such Holder copies of all such documents proposed to be filed and
use its reasonable efforts to reflect in each such document when so filed with the SEC such

11

 

comments as such Holder reasonably shall propose within three (3) Business Days of the delivery of
such copies to such Holder;

     (m) use its commercially reasonable efforts to cause all Registrable Securities to be listed
on any securities exchange or inter-dealer quotation system on which similar debt securities issued
by the Company are then listed if requested by the Majority Holders, or if requested by the
Underwriter or Underwriters of an underwritten offering of Registrable Securities, if any;

     (n) make generally available to its security holders, as soon as reasonably practicable,
earning statements covering at least 12 months (which need not be audited) satisfying the
provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder; and

     (o) make a reasonable effort to provide such information as is required for any filings
required to be made with the NASD.

     (p) Without limiting the provisions of Section 2.1(c), the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing. Each Holder agrees promptly to furnish to the Company in writing all information required
to be disclosed in order to make the information previously furnished to the Company by such Holder
not misleading, any other information regarding such Holder and the distribution of such
Registrable Securities as may be required to be disclosed in the Shelf Registration Statement under
applicable law or pursuant to SEC comments and any information otherwise reasonably required by the
Company to comply with applicable law or regulations.

     (q) Each Holder agrees that, upon receipt of any notice from the Company of a Suspension
Notice or the happening of any event or the discovery of any facts, each of the kind described in
Section 3(e)(ii), (iii), (iv), (v) and (vi), such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the Prospectus included in the Shelf Registration Statement
until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(h) or notice from the Company that the Shelf Registration Statement is again effective
and no amendment or supplement is needed, and, if so directed by the Company, such Holder will
deliver to the Company (at its expense) all copies in such Holder’s possession, other than
permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable
Securities current at the time of receipt of such notice.

     (r) If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the Underwriter or Underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees
to sell such Holder’s Registrable Securities on the basis provided
in any underwriting arrangements approved by the Persons entitled hereunder to approve such

12

 

arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such underwriting
arrangements.

     4. Indemnification; Contribution.

     (a) The Company agrees to indemnify and hold harmless each Initial Purchaser, each Holder who
has provided information to the Company in accordance with Section 2.1(c), each Person who
participates as an underwriter (any such Person, an “Underwriter”) and each Person, if any, who
controls any such Holder or Underwriter within the meaning of Section 15 of the 1933 Act or Section
20 of the 1934 Act as follows:

     (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in any Shelf Registration Statement (or any amendment or supplement thereto)
pursuant to which Registrable Securities were registered under the 1933 Act, including all
documents incorporated therein by reference, 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 arising out of any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (or any amendment or supplement thereto) or any
Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;

     (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, provided that (subject to Section 4(d) below) any such
settlement is effected with the written consent of the Company; and

     (iii) against any and all reasonable out-of-pocket expense whatsoever, as incurred
(including the reasonable fees and disbursements of counsel), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under subparagraph
(i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Company by or on behalf of any Holder or Underwriter expressly for use in a
Shelf Registration Statement (or any amendment thereto), any Prospectus (or any amendment or

13

 

supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto);
and provided further, that the Company shall not be liable pursuant to this indemnity agreement to
the extent that it shall have been established that any such loss, liability, claim, damage or
expense to the extent that the sale or transfer by such Holder or Underwriter shall have occurred
subsequent to the date on which such Holder or Underwriter shall have received notice from the
Company to the effect that the use of such Shelf Registration Statement (or any amendment thereto)
or any Prospectus (or any amendment or supplement thereto) shall have been suspended as provided in
Section 2.5 of this Agreement.

     (b) Each Holder who has provided information to the Company in accordance with Section 2.1(c),
severally, but not jointly, agrees to indemnify and hold harmless the Company, each Initial
Purchaser, each Underwriter and the other selling Holders who have provided information to the
Company in accordance with Section 2.1(c), and each of their respective directors and officers, and
each Person, if any, who controls the Company, any Initial Purchaser, any Underwriter or any other
selling Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act,
against any and all loss, liability, claim, damage and expense described in the indemnity contained
in Section 4(a), as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto)
or any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in
conformity with written information with respect to such Holder furnished to the Company by or on
behalf of such Holder expressly for use in the Shelf Registration Statement (or any amendment
thereto) or such Prospectus (or any amendment or supplement thereto);

     (c) The Initial Purchasers and the Underwriters, if any, agree to indemnify and hold harmless
the Company, the Holders of Registrable Securities and each Person, if any, who controls the
Company or any Holder of Registrable Securities within the meaning of either Section 15 of the 1933
Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section, as incurred, but only with
respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the
Shelf Registration Statement (or any amendment thereto), or any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by or on behalf of the Initial Purchasers or the Underwriters,
if any, as applicable, expressly for use in the Shelf Registration Statement (or any amendment
thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement thereto).

     (d) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action or proceeding commenced against it in respect of which indemnity
may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. An indemnifying party may participate at its own
expense in the defense of such action; provided, however, that counsel to the indemnifying party
shall not (except with the consent of the indemnified party) also be
counsel to the indemnified party. In no event shall the indemnifying party or parties be
liable for

14

 

the fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any judgment with respect to
any litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 4 (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation, investigation, proceeding
or claim and (ii) does not include a statement as to or an admission of fault, culpability or a
failure to act by or on behalf of any indemnified party.

     (e) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) 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, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 45 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement, provided that an indemnifying
party shall not be liable for any such settlement effected without its consent if such indemnifying
party (1) reimburses such indemnified party in accordance with such request to the extent it
considers such request to be reasonable and (2) provides notice to the indemnified party describing
any unpaid balance it believes is unreasonable and the reasons therefor, in each case prior to the
date of such settlement.

     (f) If the indemnification provided for in this Section 4 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and the Holders and the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

     The relative fault of the Company on the one hand and the Holders and the Initial Purchasers
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 relates to information supplied by the Company, or by the Holders or the Initial Purchasers
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

     The Company, the Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable considerations

15

 

referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages
and expenses incurred by an indemnified party and referred to above in this Section 4 shall be
deemed to include any reasonable out-of-pocket legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged
omission.

     Notwithstanding the provisions of this Section 4, no Initial Purchaser or Holder shall be
required to indemnify or contribute any amount in excess of the amount by which the total price at
which the Securities sold by such Initial Purchaser or Holder exceeds the amount of any damages
which such Initial Purchaser or Holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section 4, each Person, if any, who controls any Initial Purchaser or
Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have
the same rights to contribution as such Initial Purchaser or Holder, and each director of the
Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

     5. Miscellaneous.

     5.1 No Inconsistent Agreements. The Company has not entered into and the Company will
not after the date of this Agreement enter into any agreement with respect to its securities which
is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement
or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do
not for the term of this Agreement conflict with the rights granted to the holders of the Company’s
other issued and outstanding securities under any such agreements.

     5.2 Amendments and Waivers. The provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given unless the Company has obtained the written
consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities (assuming conversion of all Securities into Common Stock) affected by such
amendment, modification, supplement, waiver or departure. Notwithstanding the foregoing, this
Agreement may be amended by a written agreement between the Company and the Representatives, on
behalf of the Initial Purchasers, without the consent of the Holders of the Registrable Securities,
in order to cure any ambiguity or to correct or supplement any provision contained herein, provided
that no such amendment shall adversely affect the interest of the Holders of Registrable
Securities. Each Holder of Registrable Securities
outstanding at the time of any amendment, modification, waiver or consent pursuant to this

16

 

Section 5.2, shall be bound by such amendment, modification, waiver or consent, whether or not any
notice or writing indicating such amendment, modification, waiver or consent is delivered to such
Holder.

     5.3 Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail, facsimile, or any courier
guaranteeing overnight delivery, and:

     (a) if to a Holder, at the most current address given by such Holder to the Company in a
Questionnaire, which address initially shall be the address of the Initial Purchasers set forth in
the Purchase Agreement and indicated below (and thereafter at such other address of which notice is
given in accordance with the provisions of this Section 5.3):

     Merrill Lynch & Co.

     Merrill Lynch, Pierce, Fenner & Smith Incorporated

     4 World Financial Center

     New York, New York 10080

     Facsimile:

     Attention:

     with a copy to:

     Mayer, Brown, Rowe & Maw LLP

     71 South Wacker Drive

     Chicago, Illinois 60606

     Facsimile: (312) 701-7711

     Attention: Edward S. Best

     (b) if to the Company, which address initially shall be the address of the Company set forth
in the Purchase Agreement and indicated below (and thereafter at such other address of which notice
is given in accordance with the provisions of this Section 5.3):

     Archer-Daniels-Midland Company

     4666 Faries Parkway

     Decatur, Illinois 62526

     Facsimile: (217) 424-2572

     Attention: Treasurer

     with a copy to:

     Faegre & Benson LLP

     2200 Wells Fargo Center

     90 South Seventh Street

     Minneapolis, Minnesota 55402-3901

     Facsimile: (612) 766-1600

     Attention: W. Morgan Burns

17

 

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and on the next
business day if timely delivered to an overnight courier. Notices, demands, or other communications
to any Holder shall be deemed to have been duly given, if such notice has been duly given to such
Holder at its address set forth in the security registrar’s record books.

     5.4 Successor and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors, assigns and transferees of each of the parties, including, without limitation
and without the need for an express assignment, subsequent Holders; provided that, nothing herein
shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities
in violation of the terms of the Purchase Agreement or the Indenture. If any transferee of any
Holder shall acquire Registrable Securities, in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all of the terms of this Agreement,
and by taking and holding such Registrable Securities such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement,
including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase
Agreement, and such Person shall be entitled to receive the benefits hereof.

     5.6 Third Party Beneficiaries. Each Initial Purchaser (even if such Initial Purchaser
is not a Holder of Registrable Securities) shall be a third party beneficiary to the agreements
made hereunder between the Company, on the one hand, and the Holders, on the other hand, and shall
have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder. Each Holder of
Registrable Securities shall be a third party beneficiary to the agreements made hereunder between
the Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the
right to enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights hereunder.

     5.7 Specific Enforcement. Without limiting the remedies available to the Initial
Purchasers and the Holders, the Company acknowledges that any failure by the Company to comply with
its obligations under Section 2.1 may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it may not be possible
to measure damages for such injuries precisely and that, in the event of any such failure, any
Initial Purchaser or any Holder may seek such relief as may be required to specifically enforce the
Company’s obligations under Sections 2.1.

     5.8 Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

     5.9 Headings. The headings in this Agreement are for convenience of reference only

18

 

and
shall not limit or otherwise affect the meaning hereof.

     5.10 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

     5.11 Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     5.12 Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are no
restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with respect to the
Registrable Securities. This Agreement supersedes all prior agreements and understandings between
the parties with respect to such subject matter.

[Signatures appear on next page]

19

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	ARCHER-DANIELS-MIDLAND COMPANY

 	 
	 	By:  	/s/ Vikram Luthar
 	 
	 	 	Name:  	Vikram Luthar 	 
	 	 	Title:  	Vice President-Treasurer 	 
	 

	 	 	 	 	 
	CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES

MERRILL LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH

INCORPORATED

As Representative of the several Initial Purchasers

BY: MERRILL LYNCH, PIERCE, FENNER & SMITH

        INCORPORATED

 	 	 
	By:  	/s/
Philip Turbin	 	 
	 	Name:  	Philip Turbin	 	 
	 	Title:  	Managing Director	 	 
	 

20exv10w1

 

EXHIBIT 10.1

ARCHER-DANIELS-MIDLAND COMPANY

(a Delaware corporation)

$1,150,000,000

0.875% Convertible Senior Notes due 2014

PURCHASE AGREEMENT

February 15, 2007

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

Merrill Lynch & Co.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

    as Representatives of the several Initial Purchasers

c/o     Merrill Lynch, Pierce, Fenner & Smith Incorporated

           4 World Financial Center

           New York, New York 10080

Ladies and Gentlemen:

     Archer-Daniels-Midland Company, a Delaware corporation (the “Company”), confirms its agreement
with Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated (the “Representatives”) and each of the other Initial
Purchasers named in Schedule A hereto (collectively, the “Initial Purchasers,” which term shall
also include any initial purchaser substituted as hereinafter provided in Section 11 hereof), for
whom the Representatives are acting as representatives (in such capacity, the “Representatives”),
with respect to the issue and sale by the Company and the purchase by the Initial Purchasers,
acting severally and not jointly, of the respective principal amounts set forth in said Schedule A
of $1,150,000,000 aggregate principal amount of the Company’s 0.875% Convertible Senior Notes due
2014 (the “Securities”). The Securities are to be issued pursuant to an indenture dated as of
February 22, 2007 (the “Indenture”) between the Company and The Bank of New York, as trustee (the
“Trustee”).

     The Securities are convertible into shares of common stock, no par value, of the Company (the
“Common Stock”) in accordance with the terms of the Securities and the Indenture, at the initial
conversion price specified in Schedule B hereto.

     The Company understands that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and agrees that the Initial Purchasers
may resell, subject to the conditions set forth herein, all or a portion of the Securities to
purchasers (“Subsequent Purchasers”) at any time after this Agreement has been executed and
delivered. The Securities are to be offered and sold to qualified institutional buyers through the
Initial Purchasers without being registered under the Securities Act of 1933, as amended (the “1933
Act”), in reliance upon the exemptions provided by Rule 144A under the 1933 Act. Pursuant to the
terms of the Securities and the Indenture, investors that acquire Securities may

 

 

only resell or otherwise transfer such Securities if such Securities are hereafter registered
under the 1933 Act or if an exemption from the registration requirements of the 1933 Act is
available (including the exemption afforded by Rule 144A (“Rule 144A”) of the rules and regulations
promulgated under the 1933 Act by the Securities and Exchange Commission (the “Commission”)).

     The Securities will have the benefit of a registration rights agreement (the “Registration
Rights Agreement”), to be dated as of the Closing Time (as defined below), between the Company and
the Initial Purchasers, pursuant to which the Company will agree to register the resale of the
Securities under the 1933 Act subject to the terms and conditions therein specified.

     The Company has prepared and delivered to each Initial Purchaser copies of a preliminary
offering memorandum dated February 14, 2007 (the “Preliminary Offering Memorandum”) and has
prepared and will deliver to each Initial Purchaser, on the date hereof or the next succeeding day,
copies of a final offering memorandum dated February 15, 2007 (the “Final Offering Memorandum”),
each for use by such Initial Purchaser in connection with its solicitation of purchases of, or
offering of, the Securities. “Offering Memorandum” means, with respect to any date or time
referred to in this Agreement, the most recent offering memorandum (whether the Preliminary
Offering Memorandum or the Final Offering Memorandum, or any amendment or supplement to either such
document), including exhibits thereto and any documents incorporated therein by reference, which
has been prepared and delivered by the Company to the Initial Purchasers in connection with their
solicitation of purchases of, or offering of, the Securities.

     All references in this Agreement to financial statements and schedules and other information
which is “contained,” “included” or “stated” in the Offering Memorandum (or other references of
like import) shall be deemed to mean and include all such financial statements and schedules and
other information which are incorporated by reference in the Offering Memorandum; and all
references in this Agreement to amendments or supplements to the Offering Memorandum shall be
deemed to mean and include the filing of any document under the Securities Exchange Act of 1934
(the “1934 Act”) which is incorporated by reference in the Offering Memorandum.

     SECTION 1. Representations and Warranties by the Company.

     (a) Representations and Warranties. The Company represents and warrants to each Initial
Purchaser as of the date hereof and as of the Closing Time referred to in Section 2(b) hereof, and
agrees with each Initial Purchaser, as follows:

     (i) Disclosure Package and Final Offering Memorandum. As of the Applicable
Time (as defined below), neither (x) the Offering Memorandum as of the Applicable Time as
supplemented by the final pricing term sheet, in the form attached hereto as Schedule C (the
“Pricing Supplement”), that has been prepared and delivered by the Company to the Initial
Purchasers in connection with their solicitation of offers to purchase Securities, all
considered together (collectively, the “Disclosure Package”), nor (y) any individual
Supplemental Offering Materials (as defined below), when considered together with the
Disclosure Package, included any untrue statement of a material fact or

 

 

omitted to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. “Applicable
Time” means 5:00 pm. (Eastern time) on February 15, 2007 or such other time as agreed by the
Company and the Representatives.

     “Supplemental Offering Materials” means any “written communication” (within the meaning
of the 1933 Act Regulations (as defined below)) prepared by or on behalf of the Company, or
used or referred to by the Company, that constitutes an offer to sell or a solicitation of
an offer to buy the Securities other than the Offering Memorandum or amendments or
supplements thereto (including the Pricing Supplement), including, without limitation, any
road show relating to the Securities that constitutes such a written communication.

     As of its issue date and as of the Closing Time, the Final Offering Memorandum 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.

     The representation and warranties in this subsection shall not apply to statements in
or omissions from the Disclosure Package or the Final Offering Memorandum made in reliance
upon and in conformity with written information furnished to the Company by any Initial
Purchaser through the Representatives expressly for use therein.

     (ii) Incorporated Documents. The Offering Memorandum as delivered from time to
time shall incorporate by reference the most recent Annual Report of the Company on Form
10-K filed with the Commission and each Quarterly Report of the Company on Form 10-Q and
each Current Report of the Company on Form 8-K filed with (and not merely furnished to) the
Commission since the end of the fiscal year to which such Annual Report relates. The
documents incorporated by reference in the Offering Memorandum, when they were filed with
the Commission, complied in all material respects with the requirements of the 1934 Act and
the rules and regulations of the Commission thereunder (the “1934 Act Regulations”), and
none of such documents, when they were so filed, included 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; and any
further documents so filed and incorporated by reference in the Offering Memorandum, when
such documents are filed with the Commission, will comply in all material respects with the
requirements of the 1934 Act, as applicable, 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.

     (iii) Good Standing of the Company. The Company has been duly incorporated and
is validly existing as a corporation under the laws of the State of Delaware, with power and
authority (corporate and other) to own its properties and conduct its business as described
in the Disclosure Package and the Final Offering Memorandum, and has been duly qualified as
a foreign corporation for the transaction of business and is in good standing (or the local
equivalent) under the laws of each other

 

 

jurisdiction in which it owns or leases properties or conducts any business so as to
require such qualification, except where the failure to so qualify or to be in good standing
would not have a material adverse effect on the condition (financial or other), earnings,
business or properties of the Company and its subsidiaries taken as a whole (a “Material
Adverse Effect”).

     (iv) Good Standing of Subsidiaries. Each of the Company’s subsidiaries that
constitutes a “significant subsidiary” (as such term is defined in Rule 1-02 of Regulation
S-X) (each a “Subsidiary” and collectively, the “Subsidiaries”) has been duly organized and
is validly existing as a corporation or limited liability company in good standing under the
laws of the jurisdiction of its incorporation or organization, with power and authority
(corporate and other) to own its properties and conduct its business as described in the
Disclosure Package or the Final Memorandum, and has been duly qualified as a foreign
corporation or limited liability company for the transaction of business and is in good
standing (or the local equivalent) under the laws of each other jurisdiction in which it
owns or leases properties or conducts any business so as to require such qualification,
except where the failure to so qualify or to be in good standing would not result in a
Material Adverse Effect. All the outstanding shares of capital stock of each Subsidiary
have been duly authorized and validly issued and are fully paid and non-assessable, and,
except as otherwise set forth in the Disclosure Package and the Final Memorandum, all
outstanding shares of capital stock of the Subsidiaries are owned by the Company either
directly or through wholly owned subsidiaries free and clear of any security interest,
claim, lien or encumbrance, other than any such security interests, claims, liens or
encumbrances which would not, individually or in the aggregate, have a Material Adverse
Effect.

     (v) Authorization of Agreement. This Agreement has been duly authorized,
executed and delivered by the Company.

     (vi) Authorization of the Indenture. The 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
enforceability thereof may be limited by bankruptcy, insolvency and other laws affecting the
enforceability of creditors’ rights generally and general principles of equity and an
implied covenant of good faith and fair dealing).

     (vii) Authorization of the Securities. The Securities have been duly
authorized by the Company and, when executed and authenticated in accordance with the terms
of the Indenture and delivered to and paid for by the Initial Purchasers in accordance with
the terms of this Agreement, will have been duly executed and delivered by the Company, and
will constitute valid and binding obligations of the Company entitled to the benefits of the
Indenture and enforceable in accordance with their terms and the terms of the Indenture
(except as the enforceability thereof may be limited by bankruptcy, insolvency and other
laws affecting the enforceability of creditors’ rights generally and general principles of
equity and an implied covenant of good faith and fair dealing); and the Securities and the
Indenture conform in all material respects to the descriptions thereof in the Disclosure
Package and the Final Offering Memorandum.

 

 

     (viii) Authorization of the Registration Rights Agreement. The Registration
Rights Agreement has been duly authorized by the Company and, when executed and delivered by
the Company, will constitute the legal, valid, binding and enforceable instrument of the
Company (subject, as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting creditors’ rights generally
from time to time in effect and to general principles of equity).

     (ix) Authorization and Description of Common Stock. The unaudited consolidated
capitalization of the Company as of December 31, 2006 is as set forth in the Disclosure
Package and the Final Offering Memorandum in the column entitled “Actual” under the caption
“Capitalization.” The shares of issued and outstanding capital stock of the Company have
been duly authorized and validly issued and are fully paid and non-assessable; none of the
outstanding shares of capital stock of the Company was issued in violation of the preemptive
or other similar rights of any securityholder of the Company. The Common Stock conforms as
to legal matters to all statements relating thereto contained or incorporated by reference
in the Disclosure Package and the Final Offering Memorandum and such description conforms as
to legal matters to the rights set forth in the instruments defining the same. Upon
issuance and delivery of the Securities in accordance with this Agreement and the Indenture,
the Securities will be convertible at the option of the holder thereof for shares of Common
Stock in accordance with the terms of the Securities and the Indenture; the shares of Common
Stock issuable upon conversion of the Securities have been duly authorized and reserved for
issuance upon such conversion by all necessary corporate action and such shares, when issued
upon such conversion, will be validly issued and will be fully paid and non-assessable; and
the issuance of such shares upon such conversion will not be subject to the preemptive or
other similar rights of any securityholder of the Company.

     (x) Absence of Defaults and Conflicts. The execution, delivery and performance
of this Agreement, the Registration Rights Agreement, the Indenture and any other agreement
or instrument entered into or issued or to be entered into or issued by the Company in
connection with the transactions contemplated hereby or thereby or in the Disclosure Package
and the Final Offering Memorandum and the consummation of the transactions contemplated
herein and in the Disclosure Package and the Final Offeing Memorandum and compliance by the
Company with its obligations hereunder and thereunder do not and will not conflict with or
result in a breach of, or constitute a default under, or result in the creation or
imposition of any lien, charge or encumbrance upon any assets, properties or operations of
the Company or any of its subsidiaries pursuant to, any contract, indenture, mortgage, deed
of trust, loan or credit agreement, note, lease or other agreement or instrument to which
the Company or any of its subsidiaries is a party or by which it or any of them may be bound
or to which any of the assets, properties or operations of the Company or any of its
subsidiaries is subject (collectively, the “Agreements and Instruments”) the result of which
would have a Material Adverse Effect, nor will such action result in any violation of (i)
the provisions of the charter or bylaws of the Company or any of its Subsidiaries or (ii)
any applicable law or statute or any order, rule, regulation or judgment of any court or
governmental agency or body having jurisdiction over the Company or any of its subsidiaries
or any of their assets,

 

 

properties or operations, except, with respect to (ii) above, for any such violations
that would not, individually or in the aggregate, result in a Material Adverse Effect.

     (xi) Absence of Further Requirements. No consent, approval, authorization,
order, registration or qualification of or with any court or governmental agency or body is
required for the due authorization, execution and delivery by the Company of this Agreement
or for the performance by the Company of the transactions contemplated under the Disclosure
Package and the Final Offering Memorandum, this Agreement, the Registration Rights Agreement
or the Indenture, except such as have already been made, obtained or rendered, as
applicable, such as may be required under state securities laws and, in the case of the
Registration Rights Agreement, such as will be obtained under the 1933 Act and the 1939 Act
(as defined below).

     (xii) Financial Statements. The financial statements and schedules of the
Company and its consolidated subsidiaries included or incorporated by reference in the
Disclosure Package and the Final Offering Memorandum present fairly in all material respects
the consolidated financial condition, results of operations and cash flows of the Company
and its consolidated subsidiaries as of the dates and for the periods indicated, comply as
to form with the applicable accounting requirements of the 1933 Act or the 1934 Act, as
applicable, and have been prepared in conformance with United States generally accepted
accounting principles applied on a consistent basis throughout the periods involved (except
as otherwise noted therein).

     (xiii) Independent Accountants. Ernst & Young LLP, who have certified the
financial statements included or incorporated by reference in the Disclosure Package and the
Final Offering Memorandum, are independent public accountants as required by the 1933 Act
and the rules and regulations thereunder (the “1933 Act Regulations”).

     (xiv) Absence of Proceedings. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Company, threatened, against or affecting
the Company or any of its subsidiaries which would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, or which would reasonably be
expected to materially and adversely affect the consummation of the transactions
contemplated by this Agreement or the Registration Rights Agreement or the performance by
the Company of its obligations hereunder or thereunder.

     (xv) No Material Adverse Change in Business. Since the date of the most recent
financial statements included or incorporated by reference in the Disclosure Package and the
Final Offering Memorandum (exclusive of any supplement thereto), (A) there has been no
material adverse change, or any development involving a prospective material adverse change,
in the condition (financial or other), earnings, business or properties of the Company and
its subsidiaries taken as a whole, whether or not arising from transactions in the ordinary
course of business (a “Material Adverse Change”), except as set forth or contemplated in the
Disclosure Package and the Final Offering Memorandum (exclusive of any supplement thereto)
and (B) there have been no transactions entered into by the Company or any of its
subsidiaries, other than those

 

 

arising in the ordinary course of business, which are material with respect to the
Company and its subsidiaries taken as a whole.

     (xvi) Investment Company Act. The Company is not and, after giving effect to
the offering and sale of the Securities and the application of the proceeds thereof as
described in the Disclosure Package and the Final Offering Memorandum, will not be an
“investment company” as defined under the Investment Company Act of 1940, as amended (the
“1940 Act”).

     (xvii) Accounting Controls and Disclosure Controls. The Company has
established and maintains disclosure controls and procedures (as such term is defined in
Rule 13a-15 under the 1934 Act) that (i) are designed to ensure that material information
relating to the Company, including its consolidated subsidiaries, is made known to the
Company’s chief executive officer and its chief financial officer by others within those
entities, (ii) have been evaluated for effectiveness as of a date within 90 days prior to
the filing of the Company’s most recent Annual Report on Form 10-K filed with the Commission
and (iii) are effective to perform the functions for which they were established.
Additionally, the Company maintains a system of internal accounting controls sufficient to
provide reasonable assurance that (A) transactions are executed in accordance with
management’s general or specific authorizations, (B) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (C) access to assets is
permitted only in accordance with management’s general or specific authorization, and (D)
the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Except as
disclosed in the Disclosure Package and the Final Offering Memorandum or in any document
incorporated by reference therein, since December 31, 2006 there has been (i) no material
weakness in the Company’s internal control over financial reporting (whether or not
remediated) and (ii) no change in the Company’s internal control over financial reporting
that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.

     (xix) Similar Offerings. Neither the Company nor any of its affiliates, as
such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), has, directly
or indirectly, solicited any offer to buy, sold or offered to sell or otherwise negotiated
in respect of, or will solicit any offer to buy, sell or offer to sell or otherwise
negotiate in respect of, in the United States or to any United States citizen or resident,
any security which is or would be integrated with the sale of the Securities in a manner
that would require the offered Securities to be registered under the 1933 Act.

     (xx) Rule 144A Eligibility. The Securities are eligible for resale pursuant to
Rule 144A and will not be, at Closing Time, of the same class as securities listed on a
national securities exchange registered under Section 6 of the 1934 Act, or quoted in a U.S.
automated interdealer quotation system.

     (xxi) No General Solicitation. None of the Company, its Affiliates or any
person acting on its or any of their behalf (other than the Initial Purchasers, as to whom

 

 

the Company makes no representation) has engaged or will engage, in connection with the
offering of the offered Securities, in any form of general solicitation or general
advertising within the meaning of Rule 502(c) under the 1933 Act.

     (xxii) No Registration Required. Subject to compliance by the Initial
Purchasers with the representations and warranties of the Initial Purchasers and the
procedures set forth in Section 6 hereof, it is not necessary in connection with the offer,
sale and delivery of the offered Securities to the Initial Purchasers and to each Subsequent
Purchaser in the manner contemplated by this Agreement and the Offering Memorandum to
register the Securities under the 1933 Act or to qualify the Indenture under the Trust
Indenture Act of 1939, as amended (the “1939 Act”).

     (b) Officer’s Certificates. Any certificate signed by any officer of the Company or any of
its subsidiaries delivered to the Representatives or to counsel for the Initial Purchasers shall be
deemed a representation and warranty by the Company to each Initial Purchaser as to the matters
covered thereby.

     SECTION 2. Sale and Delivery to Initial Purchasers; Closing.

     (a) On the basis of the representations and warranties herein contained and subject to the
terms and conditions herein set forth, the Company agrees to sell to each Initial Purchaser,
severally and not jointly, and each Initial Purchaser, severally and not jointly, agrees to
purchase from the Company, at the price set forth in Schedule B, the aggregate principal amount of
Securities set forth in Schedule A opposite the name of such Initial Purchaser, plus any additional
principal amount of Securities which such Initial Purchaser may become obligated to purchase
pursuant to the provisions of Section 11 hereof.

     (b) Payment of the purchase price for, and delivery of certificates for, the Securities shall
be made at the Chicago, Illinois offices of Mayer, Brown, Rowe & Maw LLP, or at such other place as
shall be agreed upon by the Representatives and the Company, at 9:00 A.M. (Central time) on the
fourth business day after the date hereof (unless postponed in accordance with the provisions of
Section 11), or such other time not later than ten business days after such date as shall be agreed
upon by the Representatives and the Company (such time and date of payment and delivery being
herein called “Closing Time”).

     Payment shall be made to the Company by wire transfer of immediately available funds to a bank
account designated by the Company, against delivery to the Representatives for the respective
accounts of the Initial Purchasers of certificates for the Securities to be purchased by them. It
is understood that each Initial Purchaser has authorized the Representatives, for its account, to
accept delivery of, receipt for, and make payment of the purchase price for, the Securities which
it has agreed to purchase. The Representatives, individually and not as representatives of the
Initial Purchasers, may (but shall not be obligated to) make payment of the purchase price for the
Securities to be purchased by any Initial Purchaser whose funds have not been received by Closing
Time, but such payment shall not relieve such Initial Purchaser from its obligations hereunder.

 

 

     (d) Denominations; Registration. Certificates for the Securities shall be in such
denominations ($100,000 or integral multiples of $1,000 in excess thereof) and registered in such
names as the Representatives may request in writing at least one full business day before Closing
Time. The certificates representing the Securities shall be made available for examination and
packaging by the Initial Purchasers in The City of New York not later than 10:00 A.M. on the last
business day prior to Closing Time.

     SECTION 3. Covenants of the Company. The Company covenants with each Initial
Purchaser as follows:

     (a) Offering Memorandum. The Company, as promptly as possible, will furnish to each Initial
Purchaser, without charge, such number of copies of the Offering Memorandum and any amendments and
supplements thereto and documents incorporated by reference therein as such Initial Purchaser may
reasonably request.

     (b) Notice and Effect of Material Events. The Company will promptly notify each Initial
Purchaser, and confirm such notice in writing, of (x) any filing made by the Company of information
relating to the offering of the Securities with any securities exchange or any other regulatory
body in the United States or any other jurisdiction, and (y) prior to the completion of the
placement of the offered Securities by the Initial Purchasers (notice of such completion to be
provided to the Company by the Initial Purchasers in writing), any material changes in or affecting
the condition (financial or other), earnings, business or properties of the Company and its
subsidiaries taken as a whole which (i) make any statement in the Disclosure Package, any Offering
Memorandum or any Supplemental Offering Material false or misleading or (ii) are not disclosed in
the Disclosure Package or the Offering Memorandum. In such event or if during such time any event
shall occur as a result of which it is necessary, in the reasonable opinion of any of the Company,
its counsel, the Initial Purchasers or counsel for the Initial Purchasers, to amend or supplement
the Offering Memorandum in order that the Offering Memorandum not include any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein
not misleading in the light of the circumstances then existing, the Company will forthwith amend or
supplement the Offering Memorandum by preparing and furnishing to each Initial Purchaser an
amendment or amendments of, or a supplement or supplements to, the Offering Memorandum (in form and
substance satisfactory in the reasonable opinion of counsel for the Initial Purchasers) so that, as
so amended or supplemented, the Offering Memorandum 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 existing at the time it is delivered to a Subsequent Purchaser,
not misleading.

     (c) Amendment and Supplements to the Offering Memorandum; Preparation of Pricing Supplement;
Supplemental Offering Materials. The Company will advise each Initial Purchaser promptly of any
proposal to amend or supplement the Offering Memorandum and will not effect such amendment or
supplement without the consent of the Initial Purchasers. Neither the consent of the Initial
Purchasers, nor the Initial Purchaser’s delivery of any such amendment or supplement, shall
constitute a waiver of any of the conditions set forth in Section 5 hereof. The Company will
prepare the Pricing Supplement, in form and substance satisfactory to the Representatives, and
shall furnish as soon as practicable to each Initial Purchaser, without charge, as many copies of
the Pricing Supplement as such Initial Purchaser may reasonably

 

 

request. The Company represents and agrees that, unless it obtains the prior consent of the
Representatives, it has not made and will not make any offer relating to the Securities by means of
any Supplemental Offering Materials.

     (d) Qualification of Securities for Offer and Sale. The Company will use its best efforts, in
cooperation with the Initial Purchasers, to qualify the offered Securities for offering and sale
under the applicable securities laws of such states and other jurisdictions as the Initial
Purchasers may designate and to maintain such qualifications in effect as long as required for the
sale 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 or as a dealer in
securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in
respect of doing business in any jurisdiction in which it is not otherwise so subject.

     (e) Rating of Securities. The Company shall take all reasonable action necessary to enable
Standard & Poor’s Ratings Services, a division of McGraw Hill, Inc. (“S&P”), and Moody’s Investors
Service Inc. (“Moody’s”) to provide their respective credit ratings of the Securities.

     (f) DTC. The Company will cooperate with the Initial Purchasers and use its best efforts to
permit the offered Securities to be eligible for clearance and settlement through the facilities of
The Depository Trust Company.

     (g) Use of Proceeds. The Company will use the net proceeds received by it from the sale of
the Securities in the manner specified in the Offering Memorandum under “Use of Proceeds.”

     (h) Listing. The Company will use its best efforts to effect the listing of the Common Stock
issuable upon conversion of the Securities on the New York Stock Exchange.

     (i) Restriction on Sale of Debt Securities. During a period of 60 days from the date of the
Final Offering Memorandum, the Company will not, without the prior written consent of the
Representatives, directly or indirectly, offer, sell, contract to sell, pledge, or otherwise
dispose of, (or enter into any transaction which is designed to, or might reasonably be expected
to, result in the disposition (whether by actual disposition or effective economic disposition due
to cash settlement or otherwise) by the Company or any entity affiliate of the Company or any
person in privity with the Company or any entity affiliate of the Company) directly or indirectly,
including the filing (or participation in the filing) of a registration statement with the
Commission in respect of, or establish or increase a put equivalent position or liquidate or
decrease a call equivalent position within the meaning of Section 16 of the 1934 Act, any debt
securities issued or guaranteed by the Company that have terms, including with respect to
conversion, that are substantially similar to the Securities (other than the Securities and any
debt securities that mature within one year of their date of issue) or publicly announce an
intention to effect any such transaction.

     (j) Restriction on Sale of Common Stock. During a period of 60 days from the date of the
Final Offering Memorandum, the Company will not, without the prior written consent of the
Representatives, (i) directly or indirectly, offer, pledge, sell, contract to sell, sell any option
or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant to

 

 

purchase or otherwise transfer, lend or dispose of any share of Common Stock or any securities
convertible into or exchangeable or exercisable for or repayable with Common Stock or file any
registration statement under the 1933 Act with respect to any of the foregoing or (ii) enter into
any swap or any other agreement or any transaction that transfers, in whole or in part, directly or
indirectly, the economic consequence of ownership of the Common Stock, whether any such swap or
transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or
such other securities, in cash or otherwise. The foregoing sentence shall not apply to (A) the
Securities to be sold hereunder, (B) Common Stock issuable upon conversion of the Securities, (C)
any shares of Common Stock to be issued in connection with a business acquisition, (D) any shares
of Common Stock issued by the Company upon the exercise of an option or warrant or the conversion
of a security outstanding on the date hereof and referred to in the Disclosure Package and the
Final Memorandum, (E) any shares of Common Stock issuable in connection with the transactions
described in the Disclosure Package and the Final Memorandum under the caption “Plan of
Distribution — Other Relationships” and (F) any shares of Common Stock issued or options to
purchase Common Stock granted pursuant to existing employee benefit plans of the Company.

     (k) Reporting Requirements. Until the offering of the Securities is complete, the Company
will file all documents required to be filed with the Commission pursuant to the 1934 Act within
the time periods required by the 1934 Act and the 1934 Act Regulations.

     SECTION 4. Payment of Expenses.

     (a) Expenses. The Company will pay all expenses incident to the performance of its
obligations under this Agreement, including (i) the preparation, printing, delivery to the Initial
Purchasers and any filing of the Disclosure Package or any Offering Memorandum (including financial
statements and any schedules or exhibits and any document incorporated therein by reference) and of
each amendment or supplement thereto or of any Supplemental Offering Material, (ii) the
preparation, printing and delivery to the Initial Purchasers of this Agreement, any Agreement among
Initial Purchasers, the Indenture and such other documents as may be required in connection with
the offering, purchase, sale, issuance or delivery of the Securities, (iii) the preparation,
issuance and delivery of the certificates for the Securities to the Initial Purchasers, including
any transfer taxes, any stamp or other duties payable upon the sale, issuance and delivery of the
Securities to the Initial Purchasers and any charges of DTC in connection therewith, (iv) the fees
and disbursements of the Company’s counsel, accountants and other advisors, (v) the qualification
of the Securities under securities laws in accordance with the provisions of Section 3(d) hereof,
including filing fees and the reasonable fees and disbursements of counsel for the Initial
Purchasers in connection therewith and in connection] with the preparation of the Blue Sky Survey,
any supplement thereto, (vi) the fees and expenses of the Trustee, including the fees and
disbursements of counsel for the Trustee in connection with the Indenture and the Securities and
(vii) any fees payable in connection with the rating of the Securities.

     (b) Termination of Agreement. If this Agreement is terminated by the Representatives in
accordance with the provisions of Section 5(j) or Section 10(a)(i) hereof, the Company shall
reimburse the Initial Purchasers for all of their reasonably incurred out-of-pocket expenses,
including the reasonable fees and disbursements of counsel for the Initial Purchasers.

 

 

     SECTION 5. Conditions of Initial Purchasers’ Obligations. The obligations of the
several Initial Purchasers hereunder are subject to the accuracy of the representations and
warranties of the Company contained in Section 1 hereof or in certificates of any officer of the
Company or any of its subsidiaries delivered pursuant to the provisions hereof, to the performance
by the Company of its covenants and other obligations hereunder, and to the following further
conditions:

     (a) Opinion of Counsel for Company. At Closing Time, the Representatives shall have received
the favorable opinion, dated as of Closing Time, of each of Faegre & Benson LLP, counsel for the
Company, Dewey Ballantince LLP, special tax counsel to the Company, and David J. Smith, Esq.,
General Counsel of the Company, or Stuart E. Funderburg, Esq., Corporate Counsel of the Company,
each in form and substance satisfactory to counsel for the Initial Purchasers, together with signed
or reproduced copies of such letter for each of the other Initial Purchasers to the effect set
forth in Exhibit A-1, Exhibit A-2 and Exhibit A-3, respectively, hereto.

     (b) Opinion of Counsel for Initial Purchasers. At Closing Time, the Representatives shall
have received the favorable opinion, dated as of Closing Time, of Mayer, Brown, Rowe & Maw LLP,
counsel for the Initial Purchasers, together with signed or reproduced copies of such letter for
each of the other Initial Purchasers with respect to the matters set forth in (i) — (v) and (x)
and the last paragraph of Exhibit A-1 hereto. In giving such opinion such counsel may rely, as to
all matters governed by the laws of jurisdictions other than the law of the State of New York and
the federal law of the United States and the General Corporation Law of the State of Delaware, upon
the opinions of counsel satisfactory to the Representatives. Such counsel may also state that,
insofar as such opinion involves factual matters, they have relied, to the extent they deem proper,
upon certificates of officers of the Company and its subsidiaries and certificates of public
officials.

     (c) Officers’ Certificate. At Closing Time, there shall not have been, since the date hereof
or since the date as of which information is given in the Final Offering Memorandum (exclusive of
any amendments or supplements thereto subsequent to the date of this Agreement), any Material
Adverse Change, and the Representatives shall have received a certificate of the Chairman of the
Board, the President or any Vice President and the principal financial or accounting officer of the
Company, dated as of the Closing Time, to the effect that the signers of such certificate have
carefully examined the Disclosure Package and the Final Offering Memorandum, any supplements to the
Final Offering Memorandum and this Agreement and that to their knowledge:

     (i) the representations and warranties of the Company in this Agreement are true and
correct in all material respects on and as of the Closing Time with the same effect as if
made on the Closing Time and the Company has complied with all the agreements and satisfied
all the conditions on its part to be performed or satisfied at or prior to the Closing Time;
and

     (ii) since the date of the most recent financial statements included or incorporated by
reference in the Disclosure Package and the Final Offering Memorandum (exclusive of any
supplement thereto), there has been no Material Adverse Change, except

 

 

as set forth or contemplated in the Disclosure Package and the Final Offering Memorandum
(exclusive of any supplement thereto).

     (d) Accountants’ Comfort Letter. At the time of the execution of this Agreement, the
Representatives shall have received from Ernst & Young LLP a letter dated such date, in form and
substance satisfactory to the Representatives, together with signed or reproduced copies of such
letter for each of the other Initial Purchasers containing statements and information of the type
ordinarily included in accountants’ “comfort letters” to Initial Purchasers with respect to the
financial statements and certain financial information contained in the Offering Memorandum.

     (e) Bring-down Comfort Letter. At Closing Time, the Representatives shall have received from
Ernst & Young LLP a letter, dated as of Closing Time, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (d) of this Section, except that the
specified date referred to shall be a date not more than three business days prior to Closing Time.

     (f) Maintenance of Rating. At Closing Time, the Securities shall be rated at least A2 by
Moody’s and A by S&P, and the Company shall have delivered to the Representatives a letter dated
Closing Time, from each such rating agency, or other evidence satisfactory to the Representatives,
confirming that the Securities have such ratings; and subsequent to the Applicable Time, there
shall not have been any decrease in the rating of any of the Company’s debt securities by any
“nationally recognized statistical rating organization” (as defined for purposes of Rule 436(g)
under the 1933 Act) and no such organization shall have publicly announced that it has under
surveillance or review, with possible negative implications, its rating of any of the Company’s
debt securities.

     (g) Approval of Listing. At Closing Time, the Common Stock issuable on conversion thereof
shall have been approved for listing on the New York Stock Exchange, subject only to official
notice of issuance.

     (h) Lock-up Agreements. At the date of this Agreement, the Representatives shall have
received an agreement substantially in the form of Exhibit B hereto signed by the persons listed on
Schedule D hereto.

     (j) Additional Documents. At Closing Time, counsel for the Initial Purchasers shall have been
furnished with such documents and opinions as they may reasonably request for the purpose of
enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in
order to evidence the accuracy of any of the representations or warranties, or the fulfillment of
any of the conditions, herein contained; and all proceedings taken by the Company in connection
with the issuance and sale of the Securities as herein contemplated shall be satisfactory in form
and substance to the Representatives and counsel for the Initial Purchasers.

     (k) Termination of Agreement. If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement, the obligations of the several
Initial Purchasers to purchase the relevant Securities, may be terminated by the Representatives
by notice to the Company at any time at or prior to Closing Time, and such termination shall be

 

 

without liability of any party to any other party except as provided in Section 4 and except
that Sections 1, 7, 8 and 9 shall survive any such termination and remain in full force and effect.

     SECTION 6. Subsequent Offers and Resales of the Securities.

     (a) Offer and Sale Procedures. Each of the Initial Purchasers and the Company hereby
establish and agree to observe the following procedures in connection with the offer and sale of
the Securities:

     (i) Offers and Sales. Offers and sales of the Securities shall be made to such
persons and in such manner as is contemplated by the Offering Memorandum.

     (ii) No General Solicitation. No general solicitation or general advertising
(within the meaning of Rule 502(c) under the 1933 Act) will be used in the United States in
connection with the offering or sale of the Securities.

     (iii) Purchases by Non-Bank Fiduciaries. In the case of a non-bank Subsequent
Purchaser of a Security acting as a fiduciary for one or more third parties, each third
party shall, in the judgment of the applicable Initial Purchaser, be an Institutional
Accredited Investor or a “qualified institutional buyer” within the meaning of Rule 144A
under the 1933 Act (a “Qualified Institutional Buyer”) or a non-U.S. person outside the
United States.

     (iv) Subsequent Purchaser Notification. Each Initial Purchaser will take
reasonable steps to inform, and cause each of its Affiliates to take reasonable steps to
inform, persons acquiring Securities from such Initial Purchaser or affiliate, as the case
may be, that the Securities (A) have not been and will not be registered under the 1933 Act,
(B) are being sold to them without registration under the 1933 Act in reliance on Rule 144A
and (C) may not be reoffered, resold or otherwise transferred except (1) to the Company, (2)
outside the United States in accordance with Regulation S, or (3) inside the United States
in accordance with (x) Rule 144A to a person whom the seller reasonably believes is a
Qualified Institutional Buyer that is purchasing such Securities for its own account or for
the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale
or transfer is being made in reliance on Rule 144A or (y) pursuant to another available
exemption from registration under the 1933 Act.

     (v) Minimum Principal Amount. No sale of the Securities to any one Subsequent
Purchaser will be for less than U.S. $100,000 principal amount and no Security will be
issued in a smaller principal amount. If the Subsequent Purchaser is a non-bank fiduciary
acting on behalf of others, each person for whom it is acting must purchase at least U.S.
$100,000 principal amount of the Securities.

     (b) Covenants of the Company. The Company covenants with each Initial Purchaser as follows:

     (i) Integration. The Company agrees that it will not and will cause its
Affiliates not to, directly or indirectly, solicit any offer to buy, sell or make any offer
or sale of, or otherwise negotiate in respect of, securities of the Company of any class if,
as

 

 

a result of the doctrine of “integration” referred to in Rule 502 under the 1933 Act,
such offer or sale would render invalid (for the purpose of (i) the sale of the offered
Securities by the Company to the Initial Purchasers, (ii) the resale of the offered
Securities by the Initial Purchasers to Subsequent Purchasers or (iii) the resale of the
offered Securities by such Subsequent Purchasers to others) the exemption from the
registration requirements of the 1933 Act provided by Section 4(2) thereof or by Rule 144A
thereunder or otherwise.

     (ii) Rule 144A Information. The Company agrees that, in order to render the
offered Securities eligible for resale pursuant to Rule 144A under the 1933 Act, while any
of the offered Securities remain outstanding, it will make available, upon request, to any
holder of offered Securities or prospective purchasers of Securities the information
specified in Rule 144A(d)(4) under the 1933 Act, unless the Company furnishes information to
the Commission pursuant to Section 13 or 15(d) of the 1934 Act.

     (iii) Restriction on Repurchases. Until the expiration of two years after the
original issuance of the offered Securities, the Company will not, and will cause its
Affiliates not to, resell any offered Securities which are “restricted securities” (as such
term is defined in Rule 144(a)(3) under the 1933 Act), whether as beneficial owner or
otherwise (except as agent acting as a securities broker on behalf of and for the account of
customers in the ordinary course of business in unsolicited broker’s transactions).

     (c) Qualified Institutional Buyer. Each Initial Purchaser severally and not jointly
represents and warrants to, and agrees with, the Company that it is a Qualified Institutional Buyer
and an “accredited investor” within the meaning of Rule 501(a) under the 1933 Act (an “Accredited
Investor”).

     SECTION 7. Indemnification.

     (a) Indemnification of Initial Purchasers. The Company agrees to indemnify and hold harmless
each Initial Purchaser, its Affiliates, its selling agents and each person, if any, who controls
any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act as follows:

     (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in any preliminary offering memorandum, the Disclosure Package, the Final Offering
Memorandum (or any amendment or supplement thereto) or any Supplemental Offering Materials,
or the omission or alleged omission therefrom of a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading;

     (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to

 

 

Section 7(d) below) any such settlement is effected with the written consent of the Company; and

     (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by the Representatives), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under (i) or (ii)
above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by any Initial Purchaser through the Representatives expressly
for use in any preliminary offering memorandum, the Disclosure Package, the Final Offering
Memorandum (or any amendment or supplement thereto) or in any Supplemental Offering Materials.

     (b) Indemnification of Company. Each Initial Purchaser severally agrees to indemnify and hold
harmless the Company and each person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability,
claim, damage and expense described in the indemnity contained in subsection (a) of this Section,
as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements
or omissions, made in any preliminary offering memorandum, the Disclosure Package, the Final
Offering Memorandum or any Supplemental Offering Materials in reliance upon and in conformity with
written information furnished to the Company by such Initial Purchaser through the Representatives
expressly for use therein. The Company acknowledges that the following statements set forth under
the heading “Plan of Distribution” in the Disclosure Package and the Final Offering Memorandum
constitute the only information furnished in writing by or on behalf of the several Initial
Purchasers for inclusion in any preliminary offering memorandum, the Disclosure Package, the Final
Offering Memorandum or any Supplemental Offering Materials: (i) the list of Initial Purchasers and
their respective participation in the sale of the Securities, (ii) the second and third sentence of
the second paragraph; (iii) the third sentence under the subsection entitled “—New Issue of Notes”
related to market making and (iv) the two paragraphs under the subcaption “—Price Stabilization
and Short Positions.”

     (c) Actions against Parties; Notification. Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. In the case of parties
indemnified pursuant to Section 7(a) above, counsel to the indemnified parties shall be selected by
the Representatives, and, in the case of parties indemnified pursuant to Section 7(b) above,
counsel to the indemnified parties shall be selected by the Company. An indemnifying party may
participate at its own expense in the defense of any such action;

 

 

provided, however, that counsel to the indemnifying party shall not (except
with the consent of the indemnified party) also be counsel to the indemnified party. In no event
shall the indemnifying parties be liable for fees and expenses of more than one counsel (in
addition to any local counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances. No indemnifying party shall, without
the prior written consent of the indemnified parties, settle or compromise or consent to the entry
of any judgment with respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section or Section 8 hereof (whether or
not the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of any indemnified party.

     (d) Settlement without Consent if Failure to Reimburse. If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated by Section 7(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the aforesaid request,
(ii) such indemnifying party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.

     SECTION 8. Contribution. If the indemnification provided for in Section 7 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate
to reflect the relative benefits received by the Company on the one hand and the Initial Purchasers
on the other hand from the offering of the Securities pursuant to this Agreement or (ii) if the
allocation provided by clause (i) 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 of the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

     The relative benefits received by the Company on the one hand and the Initial Purchasers on
the other hand in connection with the offering of the Securities pursuant to this Agreement shall
be deemed to be in the same respective proportions as the total net proceeds from the offering of
the Securities pursuant to this Agreement (before deducting expenses) received by the Company and
the total underwriting discount received by the Initial Purchasers, bear to the aggregate initial
offering price of the Securities.

 

 

     The relative fault of the Company on the one hand and the Initial Purchasers 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 relates to
information supplied by the Company or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.

     The Company and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section were determined by pro rata allocation (even if the Initial
Purchasers were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to above in this Section. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified
party and referred to above in this Section shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

     Notwithstanding the provisions of this Section, no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities
purchased and sold by it hereunder exceeds the amount of any damages which such Initial Purchaser
has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.

     No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section, each person, if any, who controls an Initial Purchaser within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Initial
Purchaser’s Affiliates and selling agents shall have the same rights to contribution as such
Initial Purchaser, and each person, if any, who controls the Company within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the
Company. The Initial Purchasers’ respective obligations to contribute pursuant to this Section are
several in proportion to the principal amount of Securities set forth opposite their respective
names in Schedule A hereto and not joint.

     SECTION 9. Representations, Warranties and Agreements to Survive. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Company or any of its subsidiaries submitted pursuant hereto shall remain operative
and in full force and effect, regardless of (i) any investigation made by or on behalf of any
Initial Purchaser or its Affiliates or selling agents, any person controlling any Initial
Purchaser, its officers or directors or any person controlling the Company and (ii) delivery of and
payment for the Securities.

 

 

     SECTION 10. Termination of Agreement.

     (a) Termination; General. The Representatives may terminate this Agreement, by notice to the
Company, at any time at or prior to Closing Time (i) if there has been, since the time of execution
of this Agreement or since the date as of which information is given in the Preliminary Offering
Memorandum, the Disclosure Package or the Final Offering Memorandum (exclusive of any amendments or
supplements thereto subsequent to the date of this Agreement), any Material Adverse Change, or (ii)
if there has occurred any material adverse change in the financial markets in the United States or
the international financial markets, any outbreak of hostilities or escalation thereof or other
calamity or crisis or any change or development involving a prospective change in national or
international political, financial or economic conditions, in each case the effect of which is such
as to make it, in the judgment of the Representatives, impracticable or inadvisable to market the
Securities or to enforce contracts for the sale of the Securities, or (iii) if trading in any
securities of the Company has been suspended or materially limited by the Commission or the New
York Stock Exchange, or if trading generally on the American Stock Exchange or the New York Stock
Exchange or in the NASDAQ System has been suspended or materially limited, or minimum or maximum
prices for trading have been fixed, or maximum ranges for prices have been required, by any of said
exchanges or by such system or by order of the Commission, the National Association of Securities
Dealers, Inc. or any other governmental authority, or (iv) a material disruption has occurred in
commercial banking or securities settlement or clearance services in the United States or (v) if a
banking moratorium has been declared by either Federal or New York authorities.

     (b) Liabilities. If this Agreement is terminated pursuant to this Section, such termination
shall be without liability of any party to any other party except as provided in Section 4 hereof,
and provided further that Sections 1, 7, 8 and 9 shall survive such termination and remain in full
force and effect.

     SECTION 11. Default by One or More of the Initial Purchasers. If one or more of the
Initial Purchasers shall fail at Closing Time to purchase the Securities which it or they are
obligated to purchase under this Agreement (the “Defaulted Securities”), the Representatives shall
have the right, within 24 hours thereafter, to make arrangements for one or more of the
non-defaulting Initial Purchasers, or any other initial purchasers, to purchase all, but not less
than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms
herein set forth; if, however, the Representatives shall not have completed such arrangements
within such 24-hour period, then:

     (a) if the number of Defaulted Securities does not exceed 10% of the aggregate
principal amount of the Securities to be purchased hereunder, each of the
non-defaulting Initial Purchasers shall be obligated, severally and not jointly, to
purchase the full amount thereof in the proportions that their respective
underwriting obligations hereunder bear to the underwriting obligations of all
non-defaulting Initial Purchasers, or

     (b) if the number of Defaulted Securities exceeds 10% of the aggregate
principal amount of the Securities to be purchased hereunder, this

 

 

Agreement shall terminate without liability on the part of any non-defaulting
Initial Purchaser.

     No action taken pursuant to this Section shall relieve any defaulting Initial Purchaser from
liability in respect of its default.

     In the event of any such default which does not result in a termination of this Agreement,
either the Representatives or the Company shall have the right to postpone Closing Time for a
period not exceeding seven days in order to effect any required changes in the Offering Memorandum
or in any other documents or arrangements. As used herein, the term “Initial Purchaser” includes
any person substituted for an Initial Purchaser under this Section.

     SECTION 12. Tax Disclosure. Notwithstanding any other provision of this Agreement,
immediately upon commencement of discussions with respect to the transactions contemplated hereby,
the Company (and each employee, representative or other agent of the Company) may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
transactions contemplated by this Agreement and all materials of any kind (including opinions or
other tax analyses) that are provided to the Company relating to such tax treatment and tax
structure. For purposes of the foregoing, the term “tax treatment” is the purported or claimed
federal income tax treatment of the transactions contemplated hereby, and the term “tax structure”
includes any fact that may be relevant to understanding the purported or claimed federal income tax
treatment of the transactions contemplated hereby.

     SECTION 13. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Initial Purchasers shall be directed to the Representatives
at 4 World Financial Center, New York, New York 10080, attention of Joseph T. McIntosh, notices to
the Company shall be directed to it at 4666 Faries Parkway, Decatur, Illinois 62526, Facsimile:
(217) 424-2572, attention of Treasurer.

     SECTION 14. No Advisory or Fiduciary Relationship. The Company acknowledges and
agrees that (a) the purchase and sale of the Securities pursuant to this Agreement, including the
determination of the offering price of the Securities and any related discounts and commissions, is
an arm’s-length commercial transaction between the Company, on the one hand, and the several
Initial Purchasers, on the other hand, (b) in connection with the offering contemplated hereby and
the process leading to such transaction each Initial Purchaser is and has been acting solely as a
principal and is not the agent or fiduciary of the Company, or its stockholders, creditors,
employees or any other party, (c) no Initial Purchaser has assumed or will assume an advisory or
fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby
or the process leading thereto (irrespective of whether such Initial Purchaser has advised or is
currently advising the Company on other matters) and no Initial Purchaser has any obligation to the
Company with respect to the offering contemplated hereby except the obligations expressly set forth
in this Agreement, (d) the Initial Purchasers and their respective affiliates may be engaged in a
broad range of transactions that involve interests that differ from those of each of the Company,
and (e) the Initial Purchasers have not provided any legal, accounting, regulatory or tax advice
with respect to the offering contemplated hereby and

 

 

the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent
it deemed appropriate.

     SECTION 15. Integration. This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Company and the Initial Purchasers, or any of
them, with respect to the subject matter hereof.

     SECTION 16. Parties. This Agreement shall inure to the benefit of and be binding upon
the Initial Purchasers and the Company and their respective successors. Nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any person, firm or
corporation, other than the Initial Purchasers and the Company and their respective successors and
the controlling persons and officers and directors referred to in Sections 7 and 8 and their heirs
and legal representatives, any legal or equitable right, remedy or claim under or in respect of
this Agreement or any provision herein contained. This Agreement and all conditions and provisions
hereof are intended to be for the sole and exclusive benefit of the Initial Purchasers and the
Company and their respective successors, and said controlling persons and officers and directors
and their heirs and legal representatives, and for the benefit of no other person, firm or
corporation. No purchaser of Securities from any Initial Purchaser shall be deemed to be a
successor by reason merely of such purchase.

     SECTION 17. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     SECTION 18. TIME. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

     SECTION 19. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.

     SECTION 20. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.

 

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement between the Initial Purchasers and the Company in accordance with
its terms.

	 	 	 	 	 
	 	Very truly yours,

ARCHER-DANIELS-MIDLAND COMPANY

 	 
	 	By  	/s/ Vikram Luthar
 	 
	 	 	Name:  	Vikram Luthar 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 

	 	 	 	 	 	 	 
	CONFIRMED AND ACCEPTED,	 	 	 	 
	     as of the date first above written:	 	 	 	 
	 
	 	 	 	 	 	 
	CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES INC.

MERRILL LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH

     INCORPORATED	 	 	 	 
	 
	 	 	 	 	 	 
	BY:

	 	MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Joe McIntosh
	 	 
	 	 
	 

	 	 	 	 	 	 
	 

	 	Authorized Signatory	 	 	 	 
	 
	 	 	 	 	 	 
	For itself and as Representatives of the other
Initial Purchasers named in Schedule A hereto.	 	 	 	 

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Principal	 
	 	 	Amount of	 
	Name of Initial Purchaser	 	Securities	 
	 
	Citigroup Global Markets Inc.
	 	$	287,500,000	 
	J.P. Morgan Securities Inc.
	 	 	287,500,000	 
	Merrill Lynch Pierce, Fenner & Smith Incorporated
	 	 	287,500,000	 
	Banc of America Securities LLC
	 	 	47,917,000	 
	Barclays Capital Inc.
	 	 	47,917,000	 
	BNP Paribas Securities Corp.
	 	 	47,917,000	 
	Deutsche Bank Securities Inc.
	 	 	47,917,000	 
	Goldman, Sachs & Co.
	 	 	47,916,000	 
	HSBC Securities (USA) Inc.
	 	 	47,916,000	 
	 
	 	 	 
	Total
	 	$	1,150,000,000	 
	 
	 	 	 

Sch A-1

 

SCHEDULE B

ARCHER-DANIELS-MIDLAND COMPANY

$1,150,000,000 0.875% Convertible Senior Notes due 2014

     1. The initial public offering price of the Securities shall be 100.00% of the principal
amount thereof, plus accrued interest, if any, from the date of issuance.

     2. The purchase price to be paid by the Initial Purchasers for the Securities shall be 98.65%
of the principal amount thereof.

     3. The interest rate on the Securities shall be 0.875% per annum.

     4. The Securities shall be convertible on the terms set forth in the Indenture at an initial
conversion rate of 22.8343 shares per $1,000 principal amount of Securities (equivalent to a
conversion price of approximately $43.79 per share).

     5. If a change in control occurs and a holder elects to convert in connection with such event,
the conversion rate will be increased by a number of shares. The number of additional shares will
be determined by reference to the following table and is based on the date on which such change in
control becomes effective and the price paid per share of common stock on the effective date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock Price on	 	 	Make-Whole Premium Upon Fundamental Change (Increase in Applicable Conversion Rate)	 
	Effective Date	 	 	2/22/2007	 	 	2/15/2008	 	 	2/15/2009	 	 	2/15/2010	 	 	2/15/2011	 	 	2/15/2012	 	 	2/15/2013	 	 	2/15/2014	 
	$35.75
	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 
	$37.50
	 	 	 	4.5937	 	 	 	4.7056	 	 	 	4.7896	 	 	 	4.8296	 	 	 	4.7941	 	 	 	4.6410	 	 	 	4.2890	 	 	 	3.8324	 
	$40.00
	 	 	 	3.9353	 	 	 	4.0041	 	 	 	4.0409	 	 	 	4.0285	 	 	 	3.9335	 	 	 	3.7086	 	 	 	3.2436	 	 	 	2.1657	 
	$45.00
	 	 	 	2.9373	 	 	 	2.9458	 	 	 	2.9188	 	 	 	2.8394	 	 	 	2.6743	 	 	 	2.3744	 	 	 	1.8167	 	 	 	0.0000	 
	$50.00
	 	 	 	2.2349	 	 	 	2.2079	 	 	 	2.1453	 	 	 	2.0327	 	 	 	1.8402	 	 	 	1.5267	 	 	 	0.9936	 	 	 	0.0000	 
	$55.00
	 	 	 	1.7291	 	 	 	1.6817	 	 	 	1.6012	 	 	 	1.4755	 	 	 	1.2806	 	 	 	0.9862	 	 	 	0.5332	 	 	 	0.0000	 
	$60.00
	 	 	 	1.3575	 	 	 	1.2992	 	 	 	1.2114	 	 	 	1.0846	 	 	 	0.9003	 	 	 	0.6401	 	 	 	0.2816	 	 	 	0.0000	 
	$65.00
	 	 	 	1.0795	 	 	 	1.0165	 	 	 	0.9278	 	 	 	0.8065	 	 	 	0.6392	 	 	 	0.4180	 	 	 	0.1465	 	 	 	0.0000	 
	$70.00
	 	 	 	0.8683	 	 	 	0.8045	 	 	 	0.7186	 	 	 	0.6061	 	 	 	0.4579	 	 	 	0.2741	 	 	 	0.0741	 	 	 	0.0000	 
	$75.00
	 	 	 	0.7061	 	 	 	0.6432	 	 	 	0.5623	 	 	 	0.4602	 	 	 	0.3307	 	 	 	0.1804	 	 	 	0.0369	 	 	 	0.0000	 
	$100.00
	 	 	 	0.2838	 	 	 	0.2387	 	 	 	0.1867	 	 	 	0.1303	 	 	 	0.0701	 	 	 	0.0252	 	 	 	0.0027	 	 	 	0.0000	 
	$150.00
	 	 	 	0.0736	 	 	 	0.0544	 	 	 	0.0368	 	 	 	0.0214	 	 	 	0.0096	 	 	 	0.0029	 	 	 	0.0009	 	 	 	0.0000	 

     If the price paid per share on the effective date exceeds $150.00 per share, subject to
adjustment, no adjustment to the applicable conversion rate will be made.

     If the price paid per share on the effective date is less than $35.75 per share, subject to
adjustment, no adjustment to the applicable conversion rate will be made.

Sch B-1

 

SCHEDULE C

Archer-Daniels-Midland Company

(ADM/NYSE)

Offering Size: $1,150,000,000

144A
Convertible Senior Notes Due 2014 Terms:

Offering Price: $1,000.00 per note (100%)

Maturity: February 15, 2014

Interest Rate: 0.875% payable semi-annually in arrears in cash

Last Sale (2/15/07): $35.75

Conversion Price: Approximately $43.79

Conversion Premium: 22.50%

Conversion Rate: 22.8343

Conversion Rate Cap: 27.9720

Conversion Trigger Price: $61.31

Interest Payment Dates: February 15 and August 15, beginning August 15, 2007

Make Whole Premium upon a Change in Control: If a change in control occurs and a holder elects to

convert in connection with such event, the conversion rate will be increased by a number of shares.

The number of additional shares will be determined by reference to the following table and is

based on the date on which such change in control becomes effective and the price paid per share of

common stock on the effective date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock Price on	 	 	Make-Whole Premium Upon Fundamental Change (Increase in Applicable Conversion Rate)	 
	Effective Date	 	 	2/22/2007	 	 	2/15/2008	 	 	2/15/2009	 	 	2/15/2010	 	 	2/15/2011	 	 	2/15/2012	 	 	2/15/2013	 	 	2/15/2014	 
	$35.75
	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 	 	 	5.1377	 
	$37.50
	 	 	 	4.5937	 	 	 	4.7056	 	 	 	4.7896	 	 	 	4.8296	 	 	 	4.7941	 	 	 	4.6410	 	 	 	4.2890	 	 	 	3.8324	 
	$40.00
	 	 	 	3.9353	 	 	 	4.0041	 	 	 	4.0409	 	 	 	4.0285	 	 	 	3.9335	 	 	 	3.7086	 	 	 	3.2436	 	 	 	2.1657	 
	$45.00
	 	 	 	2.9373	 	 	 	2.9458	 	 	 	2.9188	 	 	 	2.8394	 	 	 	2.6743	 	 	 	2.3744	 	 	 	1.8167	 	 	 	0.0000	 
	$50.00
	 	 	 	2.2349	 	 	 	2.2079	 	 	 	2.1453	 	 	 	2.0327	 	 	 	1.8402	 	 	 	1.5267	 	 	 	0.9936	 	 	 	0.0000	 
	$55.00
	 	 	 	1.7291	 	 	 	1.6817	 	 	 	1.6012	 	 	 	1.4755	 	 	 	1.2806	 	 	 	0.9862	 	 	 	0.5332	 	 	 	0.0000	 
	$60.00
	 	 	 	1.3575	 	 	 	1.2992	 	 	 	1.2114	 	 	 	1.0846	 	 	 	0.9003	 	 	 	0.6401	 	 	 	0.2816	 	 	 	0.0000	 
	$65.00
	 	 	 	1.0795	 	 	 	1.0165	 	 	 	0.9278	 	 	 	0.8065	 	 	 	0.6392	 	 	 	0.4180	 	 	 	0.1465	 	 	 	0.0000	 
	$70.00
	 	 	 	0.8683	 	 	 	0.8045	 	 	 	0.7186	 	 	 	0.6061	 	 	 	0.4579	 	 	 	0.2741	 	 	 	0.0741	 	 	 	0.0000	 
	$75.00
	 	 	 	0.7061	 	 	 	0.6432	 	 	 	0.5623	 	 	 	0.4602	 	 	 	0.3307	 	 	 	0.1804	 	 	 	0.0369	 	 	 	0.0000	 
	$100.00
	 	 	 	0.2838	 	 	 	0.2387	 	 	 	0.1867	 	 	 	0.1303	 	 	 	0.0701	 	 	 	0.0252	 	 	 	0.0027	 	 	 	0.0000	 
	$150.00
	 	 	 	0.0736	 	 	 	0.0544	 	 	 	0.0368	 	 	 	0.0214	 	 	 	0.0096	 	 	 	0.0029	 	 	 	0.0009	 	 	 	0.0000	 

If the price paid per share on the effective date exceeds $150.00 per share, subject to adjustment,

no adjustment to the applicable conversion rate will be made.

If the price paid per share on the effective date is less than $35.75 per share, subject to

adjustment, no adjustment to the applicable conversion rate will be made.

Sch C-1

 

Net Proceeds Before Expenses: $1.134 billion

Net Proceeds Applied for the Convertible Note Hedge and Warrant Transactions: $129 million

Shares Underlying Convertible Note Hedge and Warrant: 26,259,445

Exercise Price of Sold Warrant: $62.56

Trade Date: 2/15/07

Settlement Date (T+4): 2/22/07

144A CUSIP: 039483AV4

Joint-Bookrunners: Citigroup, JP Morgan, Merrill Lynch

Co-Managers: Banc of America/Barclays/BNP/Deutsche Bank/Goldman Sachs/ HSBC

Sch C-2

 

SCHEDULE D

	•	 	Chief Executive Officer
	 
	•	 	Chief Financial Officer
	 
	•	 	Any director of the Company beneficially owning more than 3,500,000 shares of the
Company’s Common Stock

Sch D-1

 

Exhibit A-1

FORM OF OPINION OF FAEGRE & BENSON LLP

TO BE DELIVERED PURSUANT TO

SECTION 5(a)

     (i) the Company has been duly organized and is validly existing and in good standing under the
laws of the State of Delaware; the Company has full corporate power and authority to conduct its
business as described in the Disclosure Package and the Final Offering Memorandum;

     (ii) this Agreement has been duly authorized, executed and delivered by the Company;

     (iii) the Indenture has been duly authorized, executed and delivered by the Company and
constitutes a valid and legally binding instrument, enforceable in accordance with its terms
(subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and to general equity principles);

     (iv) the Securities have been duly executed, issued and delivered by the Company and
constitute valid and legally binding obligations of the Company entitled to the benefits provided
by the Indenture and are enforceable in accordance with their terms (subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general applicability relating to or
affecting creditors’ rights and to general equity principles); and the Securities and the
Indenture conform in all material respects to the descriptions thereof in the Disclosure Package
and the Final Offering Memorandum;

     (v) the Registration Rights Agreement has been duly authorized, executed and delivered by the
Company and constitutes the legal, valid, binding and enforceable instrument of the Company
(subject, as to the enforcement of remedies, to applicable bankruptcy, reorganization, insolvency,
moratorium or other laws affecting creditors’ rights generally from time to time in effect and to
general principles of equity);

     (vi) the Common Stock conforms as to legal matters to all statements relating thereto
contained or incorporated by reference in the Disclosure Package and the Final Offering Memorandum
and such description conforms as to legal matters to the rights set forth in the instruments
defining the same; the shares of issued and outstanding capital stock of the Company have been duly
authorized and validly issued and are fully paid and non-assessable; upon issuance and delivery of
the Securities in accordance with this Agreement and the Indenture, the Securities will be
convertible at the option of the holder thereof for shares of Common Stock in accordance with the
terms of the Securities and the Indenture; the shares of Common Stock issuable upon conversion of
the Securities have been duly authorized and reserved for issuance upon such conversion by all
necessary corporate action and such shares, when issued upon such conversion, will be validly
issued and will be fully paid and non-assessable;

Ex A-1-1

 

     (vii) neither the issue and sale of the Securities, the execution and delivery of the
Indenture, nor the consummation of any other of the transactions contemplated in this Agreement,
the Indenture or the Registration Rights Agreement nor the fulfillment of the terms thereof will
conflict with, result in a breach of, or constitute a default under the charter or by-laws of the
Company or the terms of any Agreement or Instrument known to such counsel, or any statute or any
order, rule or regulation known to such counsel to be applicable to the Company or any of its
subsidiaries of any court, regulatory body, administrative agency, governmental body or arbitrator
having jurisdiction over the Company or any of its subsidiaries;

     (viii) no consent, approval, authorization, order, registration or qualification of or with
any court or governmental agency or body is required for the due authorization, execution and
delivery by the Company of this Agreement or for the performance by the Company of the transactions
contemplated under the Disclosure Package and the Final Offering Memorandum, this Agreement, the
Registration Rights Agreement or the Indenture, except such as have already been made, obtained or
rendered, as applicable, such as may be required under state securities laws and, in the case of
the Registration Rights Agreement, such as will be obtained under the 1933 Act and the 1939 Act;

     (ix) the Company is not and, after giving effect to the offering and sale of the Securities
and the application of the proceeds thereof as described in the Disclosure Package and the Final
Offering Memorandum, will not be an “investment company” as defined under the 1940 Act;

     (x) subject to compliance by the Initial Purchasers with the representations and warranties of
the Initial Purchasers and the procedures set forth in Section 6 hereof, it is not necessary in
connection with the offer, sale and delivery of the offered Securities to the Initial Purchasers
and to each Subsequent Purchaser in the manner contemplated by this Agreement and the Offering
Memorandum to register the Securities under the 1933 Act or to qualify the Indenture under the 1939
Act; and

     (x) the documents incorporated by reference in the Offering Memorandum (other than the
financial statements and supporting schedules and other financial and statistical data therein, as
to which no opinion need be rendered), when they were filed with the Commission complied as to form
in all material respects with the requirements of the 1934 Act and the rules and regulations of the
Commission thereunder.

     In addition, such counsel shall state that nothing has come to its attention which causes such
counsel to believe that (1) as of the Applicable Time, the Disclosure Package (other than the
financial statements, financial data and supporting schedules included or incorporated by reference
therein, as to each of which such counsel need express no belief) included any untrue statement of
a material fact or omitted to state any material fact necessary in order to make the statements
therein, in the light of circumstances under which they were made, not misleading or (2) that the
Final Offering Memorandum or any amendment or supplement thereto (other than the financial
statements, financial data and supporting schedules included or incorporated by reference therein,
as to each of which such counsel need express no belief), at the time the Offering Memorandum was
issued, at the time any such amended or supplemented Offering

A-1-2

 

Memorandum was issued or at Closing Time, included or includes an untrue statement of a
material fact or omitted or omits 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.

A-1-3

 

Exhibit A-2

FORM OF OPINION OF DEWEY BALLANTINE LLP

TO BE DELIVERED PURSUANT TO

SECTION 5(a)

     The information in the Disclosure Package and in the Final Offering Memorandum under “Material
United States Income Tax Considerations,” to the extent that it constitutes matters of law,
summaries of legal matters or legal conclusions, has been reviewed by us and is correct in all
material respects and the opinion of such firm set forth under “Material United States Income Tax
Considerations” is confirmed.

Ex A-2-1

 

Exhibit A-3

FORM OF OPINION OF INTERNAL COUNSEL

TO BE DELIVERED PURSUANT TO

SECTION 5(a)

     (i) the Company has been duly organized and is validly existing and in good standing under the
laws of the State of Delaware; the Company has full corporate power and authority to conduct its
business as described in the Disclosure Package and the Final Offering Memorandum;

     (ii) the Company has been duly qualified as a foreign corporation for the transaction of
business and is in good standing (or the local equivalent) under the laws of each other
jurisdiction in which it owns or leases properties or conducts any business so as to require such
qualification, except where the failure to so qualify or be in good standing would not have a
Material Adverse Effect; and

     (iii) to the knowledge of such counsel, there is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or foreign,
now pending, or, to the knowledge of the Company, threatened, against or affecting the Company or
any of its subsidiaries which is reasonably likely to result in a Material Adverse Effect.

     In addition, such counsel shall state that nothing has come to his attention that would lead
him to believe that (1) as of the Applicable Time, the Disclosure Package (other than the financial
statements, financial data and supporting schedules included or incorporated by reference therein,
as to each of which such counsel need express no belief) included any untrue statement of a
material fact or omitted to state any material fact necessary in order to make the statements
therein, in the light of circumstances under which they were made, not misleading or (2) that the
Final Offering Memorandum or any amendment or supplement thereto (other than the financial
statements, financial data and supporting schedules included or incorporated by reference therein,
as to each of which such counsel need express no belief), at the time the Offering Memorandum was
issued, at the time any such amended or supplemented Offering Memorandum was issued or at Closing
Time, included or includes an untrue statement of a material fact or omitted or omits 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.

Ex A-3-1

 

[Form of lock-up pursuant to Section 5(h)]

Exhibit B

•, 2007

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

Merrill Lynch & Co.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

     as Representatives of the several Initial Purchasers

c/o     Merrill Lynch, Pierce, Fenner & Smith Incorporated

          4 World Financial Center

          New York, New York 10080

Re: Proposed Offering by Archer-Daniels-Midland Company

Dear Sirs:

     The undersigned, a stockholder and an officer and/or director of Archer-Daniels-Midland
Company, a Delaware corporation (the “Company”), understands that Citigroup Global Markests Inc.,
J.P. Morgan Securities Inc. and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, as representatives of the several initial purchasers (the “Representatives”) propose
to enter into a Purchase Agreement (the “Purchase Agreement”) with the Company providing for the
offering of $• aggregate principal amount of the Company’s Convertible Senior Notes due • (the
“Securities”). In recognition of the benefit that such an offering will confer upon the
undersigned as a stockholder and an officer and/or director of the Company, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
undersigned agrees with each underwriter to be named in the Purchase Agreement that, during a
period of 60 days from the date of the Purchase Agreement, the undersigned will not, without the
prior written consent of the Representatives, directly or indirectly, (i) offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant for the sale of, or otherwise dispose of or lend or transfer any
shares of the Company’s Common Stock, no par value (the “Common Stock”), or any securities
convertible into or exercisable or exchangeable for or repayable with Common Stock, whether now
owned or hereafter acquired by the undersigned or with respect to which the undersigned has or
hereafter acquires the power of disposition, or file, or cause to be filed, any registration
statement under the Securities Act of 1933, as amended, with respect to any of the foregoing
(collectively, the “Lock-Up Securities”) or (ii) enter into any swap or any other agreement or any
transaction that transfers, in whole or in part, directly or indirectly, the economic consequence
of ownership of the Lock-Up Securities or any securities convertible into or exchangeable for
Common Stock, whether any such swap or

Ex. B-1

 

transaction is to be settled by delivery of Common Stock or other securities, in cash or
otherwise.

     Notwithstanding the foregoing, the undersigned may transfer the Lock-Up Securities without the
prior written consent of the Representatives, (i) pursuant to the terms of planned sale
arrangements implemented pursuant to Rule 10b5-1(c) under the Securities Exchange Act of 1934, as
amended, (ii) as a bona fide gift or gifts, provided that the donee or donees thereof agree to be
bound in writing by the restriction set forth herein, or (iii) to any trust for the direct or
indirect benefit of the undersigned or the immediate family of the undersigned, provided that the
trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and
provided further that any such transfer shall not involve a disposition for value and (iv) in an
amount which, together with all other shares of Common Stock sold by officers or directors of the
Company executing letters similar to this letter pursuant to an exception similar to this clause
(iv), does not exceed 3,500,000 shares of Common Stock. For purposes of this lock-up agreement,
“immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than
first cousin. The undersigned also agrees and consents to the entry of stop transfer instructions
with the Company’s transfer agent and registrar against the transfer of the Lock-Up Securities
except in compliance with the foregoing restrictions.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Signature:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Ex. B-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]