Document:

Exhibit 10.1

 

COMMERCIAL PAPER DEALER AGREEMENT

4(a)(2) PROGRAM

 

among

 

MOLSON COORS BREWING COMPANY, 
 as Issuer

 

THE GUARANTORS LISTED ON THE SIGNATURE PAGES HERETO

 

and

 

[                                                                                                  ], 
 as Dealer

 

Concerning Notes to be issued pursuant to an Issuing and Paying Agent Agreement dated as of [                        ] between the Issuer and Bank of America, National Association, as Issuing and Paying Agent

 

Dated as of [                          ]

 

 

Commercial Paper Dealer Agreement

4(a)(2) Program

 

This agreement (the “Agreement”) sets forth the understandings among the Issuer, the Guarantors and the Dealer, each named on the cover page hereof, in connection with the issuance and sale by the Issuer of its short-term promissory notes (the “Notes”) through the Dealer.

 

The Guarantors have each agreed to unconditionally and irrevocably to guarantee payment in full of the principal of and interest (if any) on the Notes, pursuant to guarantees, dated the date hereof, each in the form of Exhibit D hereto (collectively, the “Guarantee”).

 

Certain terms used in this Agreement are defined in Section 6 hereof.

 

The Addendum to this Agreement, and any Annexes or Exhibits described in this Agreement or such Addendum, are hereby incorporated into this Agreement and made fully a part hereof.

 

1.                                      Offers, Sales and Resales of Notes.

 

1.1                               While (i) the Issuer has and shall have no obligation to sell the Notes to the Dealer or to permit the Dealer to arrange any sale of the Notes for the account of the Issuer, and (ii) the Dealer has and shall have no obligation to purchase the Notes from the Issuer or to arrange any sale of the Notes for the account of the Issuer, the parties hereto agree that in any case where the Dealer purchases Notes from the Issuer, or arranges for the sale of Notes by the Issuer, such Notes will be purchased or sold by the Dealer in reliance on the representations, warranties, covenants and agreements of the Issuer and the Guarantors contained herein or made pursuant hereto and on the terms and conditions and in the manner provided herein.

 

1.2                               So long as this Agreement shall remain in effect, and in addition to the limitations contained in Section 1.7 hereof, neither the Issuer nor any of the Guarantors shall, without the consent of the Dealer, offer, solicit or accept offers to purchase, or sell, any Notes except (a) in transactions with one or more dealers which may from time to time after the date hereof become dealers with respect to the Notes by executing with the Issuer and the Guarantors one or more agreements which contain provisions substantially identical to those contained in Section 1 of this Agreement, of which the Issuer and the Guarantors hereby undertake to provide the Dealer prompt notice or (b) in transactions with the other dealers listed on the Addendum hereto, which are executing agreements with the Issuer and the Guarantors which contain provisions substantially identical to Section 1 of this Agreement contemporaneously herewith.  In no event shall the Issuer or any of the Guarantors offer, solicit or accept offers to purchase, or sell, any Notes directly on its own behalf in transactions with persons other than broker-dealers as specifically permitted in this Section 1.2.

 

1.3                               The Notes shall be in a minimum denomination of $250,000 or integral multiples of $1,000 in excess thereof, will bear such interest rates, if interest bearing, or will be sold at such discount from their face amounts, as shall be agreed upon by the Dealer and the Issuer, shall have a maturity not exceeding 397 days from the date of issuance and may have such terms as are specified in Exhibit C hereto or the Private Placement Memorandum.  The Notes shall not contain any provision for extension, renewal or automatic “rollover.”

 

 

1.4                               The authentication and issuance of, and payment for, the Notes shall be effected in accordance with the Issuing and Paying Agent Agreement, and the Notes shall be either individual physical certificates or book-entry notes evidenced by one or more Master Notes, in the form or forms annexed to the Issuing and Paying Agent Agreement.

 

1.5                               If the Issuer and the Dealer shall agree on the terms of the purchase of any Note by the Dealer or the sale of any Note arranged by the Dealer (including, but not limited to, agreement with respect to the date of issue, purchase price, principal amount, maturity and interest rate or interest rate index and margin (in the case of interest-bearing Notes) or discount thereof (in the case of Notes issued on a discount basis), and appropriate compensation for the Dealer’s services hereunder) pursuant to this Agreement, the Issuer shall cause such Note to be issued and delivered in accordance with the terms of the Issuing and Paying Agent Agreement and payment for such Note shall be made by the purchaser thereof, either directly or through the Dealer, to the Issuing and Paying Agent, for the account of the Issuer.  Except as otherwise agreed, in the event that the Dealer is acting as an agent and a purchaser shall either fail to accept delivery of or make payment for a Note on the date fixed for settlement, the Dealer shall promptly notify the Issuer, and if the Dealer has theretofore paid the Issuer for the Note, the Issuer will promptly return such funds to the Dealer against its return of the Note to the Issuer, in the case of a certificated Note, and upon notice of such failure in the case of a book-entry Note.  If such failure occurred for any reason other than default by the Dealer, the Issuer and the Guarantors agree, jointly and severally, to reimburse the Dealer on an equitable basis for the Dealer’s loss of the use of such funds for the period such funds were credited to the Issuer’s account.

 

1.6                               The Dealer, the Issuer and the Guarantors hereby establish and agree to observe the following procedures in connection with offers, sales and subsequent resales or other transfers of the Notes:

 

(a)                                 Offers and sales of the Notes by or through the Dealer shall be made only to: (i) investors reasonably believed by the Dealer to be Qualified Institutional Buyers, Institutional Accredited Investors or Sophisticated Individual Accredited Investors and (ii) non-bank fiduciaries or agents that will be purchasing Notes for one or more accounts, each of which is reasonably believed by the Dealer to be an Institutional Accredited Investor or Sophisticated Individual Accredited Investor.

 

(b)                                 Resales and other transfers of the Notes by the holders thereof shall be made only in accordance with the restrictions in the legend described in clause (e) below.

 

(c)                                  No general solicitation or general advertising shall be used in connection with the offering of the Notes.  Without limiting the generality of the foregoing, without the prior written approval of the Dealer, neither the Issuer nor any of the Guarantors shall issue any press release, make any other statement to any member of the press making reference to the Notes, the offer or sale of the Notes or this Agreement or place or publish any “tombstone” or other advertisement relating to the Notes or the offer or sale thereof.  To the extent permitted by applicable securities laws, the Issuer and each of the Guarantors shall (i) omit the name of the Dealer from any publicly available filing by the Issuer or such Guarantor, as the case may be, that makes reference to the Notes, the offer or sale of the Notes or this Agreement, (ii) not include a copy of this Agreement in any 

 

 

such filing or as an exhibit thereto and (iii) redact the Dealer’s name and any contact or other information that could identify the Dealer from any agreement or other information included in such filing.

 

(d)                                 No sale of Notes to any one purchaser shall be for less than $250,000 principal or face amount, and no Note shall be issued in a smaller principal or face amount.  If the purchaser is a non-bank fiduciary acting on behalf of others, each person for whom such purchaser is acting must purchase at least $250,000 principal or face amount of Notes.

 

(e)                                  Offers and sales of the Notes by the Issuer through the Dealer acting as agent for the Issuer shall be made in accordance with Section 4(a)(2) of, and Rule 506 under, the Securities Act, and shall be subject to the restrictions described in the legend appearing in Exhibit A hereto.  A legend substantially to the effect of such Exhibit A shall appear as part of the Private Placement Memorandum used in connection with offers and sales of Notes hereunder, as well as on each individual certificate representing a Note and each Master Note representing book-entry Notes offered and sold pursuant to this Agreement.

 

(f)                                   The Dealer shall make available to each purchaser of Notes for which it has acted as the dealer a copy of the then-current Private Placement Memorandum unless such purchaser has previously had made available to it a copy of the Private Placement Memorandum as then in effect.  The Private Placement Memorandum shall expressly state that any person to whom Notes are offered shall have an opportunity to ask questions of, and receive information from, the Issuer and the Dealer and shall provide the names, addresses and telephone numbers of the persons from whom information regarding the Issuer and the Guarantors may be obtained.

 

(g)                                  The Issuer and the Guarantors, jointly and severally, agree for the benefit of the Dealer and each of the holders and prospective purchasers from time to time of the Notes that, if at any time the Issuer or any of the Guarantors shall not be subject to Section 13 or 15(d) of the Exchange Act, the Issuer and such Guarantor(s) will furnish, upon request and at their expense, to the Dealer and to holders and prospective purchasers of Notes information required by Rule 144A(d)(4)(i) in compliance with Rule 144A(d).

 

(h)                                 In the event that any Note offered or to be offered by the Dealer would be ineligible for resale under Rule 144A, the Issuer shall immediately notify the Dealer (by telephone, confirmed in writing) of such fact and shall promptly prepare and deliver to the Dealer an amendment or supplement to the Private Placement Memorandum describing the Notes that are ineligible, the reason for such ineligibility and any other relevant information relating thereto.

 

(i)                                     The Issuer and the Guarantors represent that neither the Issuer nor any of the Guarantors are currently issuing commercial paper in the United States market in reliance upon the exemption provided by Section 3(a)(3) of the Securities Act. The Issuer and the Guarantors agree that, if the Issuer or any of the Guarantors shall issue commercial paper after the date hereof in reliance upon such exemption (a) the proceeds from the sale of the Notes will be segregated from the proceeds of the sale of any such 

 

 

commercial paper by being placed in a separate account; (b) the Issuer and the Guarantors will institute appropriate corporate procedures to ensure that the offers and sales of notes issued by the Issuer or any of the Guarantors, as the case may be, pursuant to the Section 3(a)(3) exemption are not integrated with offerings and sales of Notes hereunder; and (c) the Issuer and each applicable Guarantor will comply with each of the requirements of Section 3(a)(3) of the Securities Act in selling commercial paper or other short-term debt securities other than the Notes in the United States.

 

1.7                               Each of the Issuer and the Guarantors hereby represents and warrants to the Dealer, in connection with offers, sales and resales of Notes, as follows:

 

(a)                                 The Issuer and the Guarantors hereby confirm to the Dealer that (except as permitted by Section 1.6(i)) within the preceding six months neither the Issuer nor any of the Guarantors nor any person other than the Dealer or the other dealers referred to in Section 1.2 hereof acting on behalf of the Issuer or any of the Guarantors has offered or sold any Notes, or any substantially similar security of the Issuer or any of the Guarantors (including, without limitation, medium-term notes issued by the Issuer or any of the Guarantors), to, or solicited offers to buy any such security from, any person other than the Dealer or the other dealers referred to in Section 1.2 hereof.  The Issuer and the Guarantors also agree that (except as permitted by Section 1.6(i)), as long as the Notes are being offered for sale by the Dealer and the other dealers referred to in Section 1.2 hereof as contemplated hereby and until at least six months after the offer of Notes hereunder has been terminated, neither the Issuer nor any of the Guarantors nor any person other than the Dealer or the other dealers referred to in Section 1.2 hereof (except as contemplated by Section 1.2 hereof) will offer the Notes or any substantially similar security of the Issuer for sale to, or solicit offers to buy any such security from, any person other than the Dealer or the other dealers referred to in Section 1.2 hereof, it being understood that such agreement is made with a view to bringing the offer and sale of the Notes within the exemption provided by Section 4(a)(2) of the Securities Act and Rule 506 thereunder and shall survive any termination of this Agreement.  Each of the Issuer and each of the Guarantors hereby represents and warrants that it has not taken or omitted to take, and will not take or omit to take, any action that would cause the offering and sale of Notes hereunder to be integrated with any other offering of securities, whether such offering is made by the Issuer or any of the Guarantors or some other party or parties.

 

(b)                                 The Issuer represents and agrees that the proceeds of the sale of the Notes are not currently contemplated to be used for the purpose of buying, carrying or trading securities within the meaning of Regulation T and the interpretations thereunder by the Board of Governors of the Federal Reserve System.  In the event that the Issuer determines to use such proceeds for the purpose of buying, carrying or trading securities, whether in connection with an acquisition of another company or otherwise, the Issuer shall give the Dealer at least five business days’ prior written notice to that effect.  The Issuer shall also give the Dealer prompt notice of the actual date that it commences to purchase securities with the proceeds of the Notes.  Thereafter, in the event that the Dealer purchases Notes as principal and does not resell such Notes on the day of such purchase, to the extent necessary to comply with Regulation T and the interpretations thereunder, the Dealer will sell such Notes either (i) only to offerees it reasonably believes to be Qualified Institutional Buyers or to Qualified Institutional Buyers it 

 

 

reasonably believes are acting for other Qualified Institutional Buyers, in each case in accordance with Rule 144A or (ii) in a manner which would not cause a violation of Regulation T and the interpretations thereunder.

 

2.                                      Representations and Warranties of the Issuer and the Guarantors.

 

Each of the Issuer and each Guarantor represents and warrants as to itself (and, in the case of a Guarantor, each other Guarantor which is a subsidiary of such first Guarantor) that:

 

2.1                               The Issuer is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all the requisite power and authority to execute, deliver and perform its obligations under the Notes, this Agreement and the Issuing and Paying Agent Agreement.

 

2.2                               Each of the Guarantors is a corporation or limited liability partnership duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation, as applicable, and has all the requisite power and authority to execute, deliver and perform its obligations under the Guarantee and this Agreement.

 

2.3                               This Agreement and the Issuing and Paying Agent Agreement have been duly authorized, executed and delivered by the Issuer and the Guarantors, as applicable, and constitute legal, valid and binding obligations of the Issuer and Guarantors, as applicable, enforceable against the Issuer and Guarantors, as applicable, in accordance with their terms subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

 

2.4                               The Notes have been duly authorized, and when issued as provided in the Issuing and Paying Agent Agreement, will be duly and validly issued and will constitute legal, valid and binding obligations of the Issuer enforceable against the Issuer in accordance with their terms subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

 

2.5                               The Guarantee has been duly authorized, executed and delivered by the Guarantors and constitute the legal, valid and binding obligation of the Guarantors enforceable against the Guarantors in accordance with its terms subject to applicable bankruptcy, insolvency, or similar laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

 

2.6                               The offer and sale of the Notes and the Guarantee in the manner contemplated hereby do not require registration of the Notes or the Guarantee under the Securities Act, pursuant to the exemption from registration contained in Section 4(a)(2) thereof, and no indenture in respect of the Notes or the Guarantee is required to be qualified under the Trust Indenture Act of 1939, as amended.

 

 

2.7                               The Notes and the Guarantee will rank at least pari passu with all other unsecured and unsubordinated indebtedness of the Issuer and the Guarantors, respectively.

 

2.8                               No consent or action of, or filing or registration with, any governmental or public regulatory body or authority, including the SEC, is required to authorize, or is otherwise required in connection with the execution, delivery or performance of, this Agreement, the Notes, the Guarantee or the Issuing and Paying Agent Agreement, except as may be required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Notes.

 

2.9                               Neither the execution and delivery of this Agreement, the Guarantee, and the Issuing and Paying Agent Agreement, nor the issuance of the Notes in accordance with the Issuing and Paying Agent Agreement, nor the fulfillment of or compliance with the terms and provisions hereof or thereof by the Issuer or the Guarantors, will (i) result in the creation or imposition of any mortgage, lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Issuer or any of the Guarantors, or (ii) violate or result in a breach or a default under any of the terms of the charter documents or by-laws of the Issuer or any of the Guarantors, any contract or instrument to which the Issuer or any of the Guarantors is a party or by which it or its property is bound, or any law or regulation, or any order, writ, injunction or decree of any court or government instrumentality, to which the Issuer or any of the Guarantors is subject or by which it or its property is bound, which breach or default would reasonably be expected to have a material adverse effect on the condition (financial or otherwise), operations or business prospects of the Issuer or any of the Guarantors or the ability of the Issuer or any of the Guarantors to perform its obligations under this Agreement, the Notes, the Guarantee or the Issuing and Paying Agent Agreement.

 

2.10                        Except as disclosed in the Company Information, there is no litigation or governmental proceeding pending, or to the knowledge of the Issuer or the Guarantors threatened, against or affecting the Issuer or any of the Guarantors or any of its subsidiaries which would reasonably be expected to result in a material adverse change in the condition (financial or otherwise), operations or business prospects of the Issuer or any of the Guarantors or the ability of the Issuer or any of the Guarantors to perform its obligations under this Agreement, the Notes, the Guarantee or the Issuing and Paying Agent Agreement.

 

2.11                        Neither the Issuer nor any of the Guarantors is an “investment company” or an entity “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

2.12                        Neither the Private Placement Memorandum nor the Company Information contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

2.13                        Each (a) issuance of Notes by the Issuer hereunder and (b) amendment or supplement of the Private Placement Memorandum shall be deemed a representation and warranty by each of the Issuer and the Guarantors to the Dealer, as of the date thereof, that, both before and after giving effect to such issuance and after giving effect to such amendment or supplement, (i) the representations and warranties given by the Issuer and the Guarantors set 

 

 

forth in this Section 2 remain true and correct on and as of such date as if made on and as of such date, (ii) in the case of an issuance of Notes, the Notes being issued on such date have been duly and validly issued and constitute legal, valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and are guaranteed pursuant to the Guarantee, (iii) in the case of an issuance of Notes, since the date of the most recent Private Placement Memorandum, there has been no material adverse change in the condition (financial or otherwise), operations or business prospects of the Issuer or the Guarantors which has not been disclosed to the Dealer in writing and (iv) neither the Issuer nor any of the Guarantors is in default of any of its obligations hereunder, under the Notes, under the Guarantee or under the Issuing and Paying Agent Agreement.

 

2.14                        To the extent that such Guarantor or any subsidiary Guarantor is organized outside of the United States, under the laws of the jurisdiction of its organization, neither such Guarantor or any such subsidiary Guarantor nor any of its revenues, assets or properties has any right of immunity from service of process or from the jurisdiction of competent courts of the jurisdiction of its organization or the United States or the State of New York in connection with any suit, action or proceeding, attachment prior to judgment, attachment in aid of execution of a judgment or execution of a judgment or from any other legal process with respect to its obligations under this Agreement, the Issuing and Paying Agent Agreement or the Guarantee.

 

2.16                        To the extent that such Guarantor or any subsidiary Guarantor is organized outside of the United States, the choice of New York law to govern this Agreement, the Issuing and Paying Agent Agreement, the Guarantee and the Notes is, under the laws of the jurisdiction of its organization, a valid, effective and irrevocable choice of law, and the submission by such Guarantor and any such subsidiary Guarantor in Section 7.3 of this Agreement to the jurisdiction of the courts of the United States District Court and the State of New York located in the Borough of Manhattan is valid and binding upon such Guarantor and any such subsidiary Guarantor under the laws of the jurisdiction of its organization.

 

2.17                        To the extent that such Guarantor or any subsidiary Guarantor is organized outside of the United States, any final judgment rendered by a competent court of the United States or the State of New York in an action to enforce the obligations of such Guarantor or any such subsidiary Guarantor under this Agreement, the Issuing and Paying Agent Agreement or the Guarantee is capable of being enforced in the courts of the jurisdiction of its organization.

 

2.18                        To the extent that such Guarantor or any subsidiary Guarantor is organized outside of the United States, as a condition to the admissibility in evidence of this Agreement, the Issuing and Paying Agent Agreement, the Guarantee or the Notes in the courts of the jurisdiction of its organization, it is not necessary that this Agreement, the Issuing and Paying Agent Agreement, the Guarantee or the Notes be filed or recorded with any court or other authority.  All documentary evidence to be submitted to a court in the jurisdiction of its organization must be in, or translated into, the language of the jurisdiction of its organization and certified by a duly qualified official translator in the jurisdiction of its organization.

 

2.19                        Each Guarantor will receive financial benefits by the issuance of the Notes by the Issuer and such Guarantor’s issuance of the Guarantee in respect of the Notes.

 

 

3.                                      Covenants and Agreements of the Issuer and each Guarantor.

 

Each of the Issuer and each Guarantor covenants and agrees as to itself (and, in the case of a Guarantor, each other Guarantor which is a subsidiary of such first Guarantor) that:

 

3.1                               The Issuer and each Guarantor will give the Dealer prompt notice (but in any event prior to any subsequent issuance of Notes hereunder) of any amendment to, modification of or waiver with respect to, the Notes, the Guarantee or the Issuing and Paying Agent Agreement, including a complete copy of any such amendment, modification or waiver.

 

3.2                               The Issuer and each Guarantor shall, whenever there shall occur any change in the condition (financial or otherwise), operations or business prospects of the Issuer or such Guarantor or any development or occurrence in relation to the Issuer or such Guarantor that would be material to holders of the Notes or potential holders of the Notes (including any downgrading or receipt of any notice of intended or potential downgrading or any review for potential change in the rating accorded any of the securities of the Issuer or such Guarantor by any nationally recognized statistical rating organization which has published a rating of the Notes), promptly, and in any event prior to any subsequent issuance of Notes hereunder, notify the Dealer (by telephone, confirmed in writing) of such change, development, or occurrence.

 

3.3                               The Issuer and each Guarantor shall from time to time furnish to the Dealer such information as the Dealer may reasonably request, including, without limitation, any press releases or material provided by the Issuer or such Guarantor to any national securities exchange or rating agency, regarding (i) the operations and financial condition of the Issuer or such Guarantor, (ii) the due authorization and execution of the Notes and the Guarantee, (iii) the Issuer’s ability to pay the Notes as they mature and (iv) such Guarantor’s ability to fulfill its obligations under the Guarantee.

 

3.4                               The Issuer and each Guarantor will take all such action as the Dealer may reasonably request to ensure that each offer and each sale of the Notes will comply with any applicable state Blue Sky laws; provided, however, that neither the Issuer nor such Guarantor shall be obligated to file any general consent to service of process or to qualify as a foreign corporation in any jurisdiction in which it is not so qualified or subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.

 

3.5                               Neither the Issuer nor any of the Guarantors will be in default of any of their respective obligations hereunder, under the Notes, under the Guarantee or under the Issuing and Paying Agent Agreement, at any time that any of the Notes are outstanding.

 

3.6                               The Issuer shall not issue Notes hereunder until the Dealer shall have received (a) opinions of counsel to the Issuer and each of the U.S. Guarantors, addressed to the Dealer, satisfactory in form and substance to the Dealer, (b) a copy of the executed Issuing and Paying Agent Agreement as then in effect, (c) a copy of the executed Guarantee, (d) a copy of resolutions adopted by the Boards of Directors of the Issuer and each of the Guarantors, satisfactory in form and substance to the Dealer and certified by the Secretary or similar officer of the Issuer or such Guarantor, as the case may be, authorizing execution and delivery by the Issuer and such Guarantor of this Agreement, the Issuing and Paying Agent Agreement, the 

 

 

Guarantee and the Notes and consummation by the Issuer and the such Guarantor of the transactions contemplated hereby and thereby, (e) prior to the issuance of any book-entry Notes represented by a Master Note, a copy of the executed Letter of Representations among the Issuer, the Guarantors, the Issuing and Paying Agent and DTC and of the executed Master Note, (f) prior to the issuance of any Notes in physical form, a copy of such form (unless attached to this Agreement or the Issuing and Paying Agent Agreement) and (g) such other certificates, opinions, letters and documents as the Dealer shall have reasonably requested.

 

3.7                               The Issuer and the Guarantors, jointly and severally, shall reimburse the Dealer for all of the Dealer’s out-of-pocket expenses related to this Agreement, including expenses incurred in connection with its preparation and negotiation, and the transactions contemplated hereby (including, but not limited to, the printing and distribution of the Private Placement Memorandum), and, if applicable, for up to $10,000, in the aggregate, of the reasonable fees and out-of-pocket expenses of the dealers’ respective counsels.

 

3.8                               Without limiting any obligation of the Issuer pursuant to this Agreement to provide the Dealer with credit and financial information, the Issuer and the Guarantors hereby acknowledge and agree that the Dealer may share the Company Information and any other information or matters relating to the Issuer, the Guarantors or the transactions contemplated hereby with affiliates of the Dealer, including, but not limited to, Bank of America, National Association and that such affiliates may likewise share information relating to the Issuer, the Guarantors or such transactions with the Dealer.

 

4.                                      Disclosure.

 

4.1                               The Private Placement Memorandum and its contents (other than the Dealer Information) shall be the sole responsibility of the Issuer and the Guarantors.  The Private Placement Memorandum shall contain a statement expressly offering an opportunity for each prospective purchaser to ask questions of, and receive answers from, the Issuer and the Guarantors concerning the offering of Notes and to obtain relevant additional information which the Issuer or the Guarantor, as the case may be, possesses or can acquire without unreasonable effort or expense.

 

4.2                               Each of the Issuer and each of the Guarantors agrees to promptly furnish the Dealer the Company Information as it becomes available.

 

4.3                               Each of the Issuer and each of the Guarantors further agrees that:

 

(a)                                 The Issuer and each of the Guarantors shall notify the Dealer promptly upon the occurrence of any event relating to or affecting the Issuer or such Guarantor that would cause the Company Information then in existence to include an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they are made, not misleading.

 

(b)                                 In the event that the Issuer or a Guarantor gives the Dealer notice pursuant to Section 4.3(a) and the Dealer notifies the Issuer or such Guarantor that it then has Notes it is holding in inventory, the Issuer and such Guarantor shall promptly supplement 

 

 

or amend the Private Placement Memorandum so that the Private Placement Memorandum, as amended or supplemented, shall not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, and the Issuer and such Guarantor shall make such supplement or amendment available to the Dealer.

 

(c)                                  In the event that (i) the Issuer or a Guarantor gives the Dealer notice pursuant to Section 4.3(a), (ii) the Dealer does not notify the Issuer or such Guarantor that it is then holding Notes in inventory and (iii) the Issuer and such Guarantor choose not to promptly amend or supplement the Private Placement Memorandum in the manner described in clause (b) above, then all solicitations and sales of Notes shall be suspended until such time as the Issuer and such Guarantor have so amended or supplemented the Private Placement Memorandum, and made such amendment or supplement available to the Dealer.

 

(d)                                 Without limiting the generality of Section 4.3(a), the Issuer and the Guarantors shall review, amend and supplement the Private Placement Memorandum on a periodic basis, but no less than at least once annually, to incorporate current financial information of the Issuer and the Guarantors to the extent necessary to ensure that the information provided in the Private Placement Memorandum is accurate and complete in all material respects.

 

5.                                      Indemnification and Contribution.

 

5.1                               The Issuer and the Guarantors, jointly and severally, will indemnify and hold harmless the Dealer, each individual, corporation, partnership, trust, association or other entity controlling the Dealer, any affiliate of the Dealer or any such controlling entity and their respective directors, officers, employees, partners, incorporators, shareholders, servants, trustees and agents (hereinafter the “Indemnitees”) against any and all liabilities, penalties, suits, causes of action, losses, damages, claims, costs and expenses (including, without limitation, reasonable fees and disbursements of counsel) or judgments of whatever kind or nature (each a “Claim”), imposed upon, incurred by or asserted against the Indemnitees arising out of or based upon (i) any allegation that the Private Placement Memorandum, the Company Information or any information provided by the Issuer or any of the Guarantors to the Dealer included (as of any relevant time) or includes an untrue statement of a material fact or omitted (as of any relevant time) or omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading or (ii) the breach by the Issuer or a Guarantor of any agreement, covenant or representation made in or pursuant to this Agreement.  This indemnification shall not apply to the extent that the Claim arises out of or is based upon Dealer Information.

 

5.2                               Provisions relating to claims made for indemnification under this Section 5 are set forth in Exhibit B to this Agreement.

 

5.3                               In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 5 is held to be unavailable or insufficient to hold harmless the Indemnitees, although applicable in accordance with the terms of this Section 5, the

 

 

 

Issuer and the Guarantors, jointly and severally, shall contribute to the aggregate costs incurred by the Dealer in connection with any Claim in the proportion of the respective economic interests of the Issuer and the Guarantors, on the one hand and the Dealer, on the other hand; provided, however, that such contribution by the Issuer and the Guarantors shall be in an aggregate amount such that the aggregate costs incurred by the Dealer do not exceed the aggregate of the commissions and fees earned by the Dealer hereunder with respect to the issue or issues of Notes to which such Claim relates.  The respective economic interests shall be calculated by reference to the aggregate proceeds to the Issuer of the Notes issued hereunder and the aggregate commissions and fees earned by the Dealer hereunder.

 

6.                                      Definitions.

 

6.1                               “Claim” shall have the meaning set forth in Section 5.1.

 

6.2                               “Company Information” at any given time shall mean the Private Placement Memorandum together with, to the extent applicable, (i) the Issuer’s and each Guarantor’s most recent report on Form 10-K filed with the SEC and each report on Form 10-Q or 8-K filed by the Issuer or such Guarantor with the SEC since the most recent Form 10-K, (ii) the Issuer’s and each Guarantor’s most recent annual audited financial statements and each interim financial statement or report prepared subsequent thereto, if not included in item (i) above, (iii) the Issuer’s and each Guarantor’s and their affiliates’ other publicly available recent reports, including, but not limited to, any publicly available filings or reports provided to their respective shareholders, (iv) any other information or disclosure prepared pursuant to Section 4.3 hereof and (v) any information prepared or approved by the Issuer or any of the Guarantors for dissemination to investors or potential investors in the Notes.

 

6.3                               “Dealer Information” shall mean material concerning the Dealer provided by the Dealer in writing expressly for inclusion in the Private Placement Memorandum.

 

6.4                               “DTC” shall mean The Depository Trust Company.

 

6.5                               “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended.

 

6.6                               “Indemnitee” shall have the meaning set forth in Section 5.1.

 

6.7                               “Institutional Accredited Investor” shall mean an institutional investor that is an accredited investor within the meaning of Rule 501 under the Securities Act and that has such knowledge and experience in financial and business matters that it is capable of evaluating and bearing the economic risk of an investment in the Notes, including, but not limited to, a bank, as defined in Section 3(a)(2) of the Securities Act, or a savings and loan association or other institution, as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity.

 

6.8                               “Issuing and Paying Agent Agreement” shall mean the Issuing and Paying Agent Agreement described on the cover page of this Agreement, as such agreement may be amended or supplemented from time to time.

 

 

6.9                               “Issuing and Paying Agent” shall mean the party designated as such on the cover page of this Agreement, as issuing and paying agent under the Issuing and Paying Agent Agreement, or any successor thereto in accordance with the Issuing and Paying Agent Agreement.

 

6.10                        “Master Note” shall mean a master note registered in the name of DTC or its nominee.

 

6.11                        “Non-bank fiduciary or agent” shall mean a fiduciary or agent other than (a) a bank, as defined in Section 3(a)(2) of the Securities Act, or (b) a savings and loan association, as defined in Section 3(a)(5)(A) of the Securities Act.

 

6.12                        “Private Placement Memorandum” shall mean offering materials prepared in accordance with Section 4 (including materials referred to therein or incorporated by reference therein, if any) provided to purchasers and prospective purchasers of the Notes, and shall include amendments and supplements thereto which may be prepared from time to time in accordance with this Agreement (other than any amendment or supplement that has been completely superseded by a later amendment or supplement).

 

6.13                        “Qualified Institutional Buyer” shall have the meaning assigned to that term in Rule 144A under the Securities Act.

 

6.14                        “Rule 144A” shall mean Rule 144A under the Securities Act.

 

6.15                        “SEC” shall mean the U.S. Securities and Exchange Commission.

 

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

 

6.17                        “Sophisticated Individual Accredited Investor” shall mean an individual who (a) is an accredited investor within the meaning of Regulation D under the Securities Act and (b) based on his or her pre-existing relationship with the Dealer, is reasonably believed by the Dealer to be a sophisticated investor (i) possessing such knowledge and experience (or represented by a fiduciary or agent possessing such knowledge and experience) in financial and business matters that he or she is capable of evaluating and bearing the economic risk of an investment in the Notes and (ii) having not less than $5 million in investments (as defined, for purposes of this section, in Rule 2a51-1 under the Investment Company Act of 1940, as amended).

 

7.                                      General.

 

7.1                               Unless otherwise expressly provided herein, all notices under this Agreement to parties hereto shall be in writing and shall be effective when received at the address of the respective party set forth in the Addendum to this Agreement.

 

7.2                               This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to its conflict of laws provisions.

 

7.3                               Each of the Issuer and each of the Guarantors agrees, as to itself, as follows:

 

 

(a)                                 Each of the Issuer and each of the Guarantors agrees that any suit, action or proceeding brought by the Issuer or a Guarantor against the Dealer in connection with or arising out of this Agreement or the Notes or the offer and sale of the Notes shall be brought solely in the United States federal courts located in the Borough of Manhattan or the courts of the State of New York located in the Borough of Manhattan.  EACH OF THE DEALER, THE ISSUER AND THE GUARANTORS WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(b)                                 Each of the Guarantors hereby irrevocably accepts and submits to the non-exclusive jurisdiction of each of the aforesaid courts in personam, generally and unconditionally, for itself and in respect of its properties, assets and revenues, with respect to any suit, action or proceeding in connection with or arising out of this Agreement, the Guarantee or the Notes or the offer and sale of the Notes.

 

(c)                                  Each of the Guarantors hereby irrevocably designates, appoints and empowers Molson Coors Brewing Company, with offices at 1225 17th Street, Suite 3200, Denver, Colorado 80202, Attention: Chief Legal Officer, fax number: (303) 279-6565, as its designee, appointee and agent to receive, accept and acknowledge for and on its behalf, and its properties, assets and revenues, service for any and all legal process, summons, notices and documents which may be served in any such action, suit or proceeding brought in the courts listed in Section 7.3(a) which may be made on such designee, appointee and agent in accordance with legal procedures prescribed for such courts, with respect to any suit, action or proceeding in connection with or arising out of this Agreement, the Guarantee or the Notes or the offer and sale of the Notes.  If for any reason such designee, appointee and agent hereunder shall cease to be available to act as such, each of the Guarantors agree to designate a new designee, appointee and agent in The City of New York on the terms and for the purposes of this Section 7.3 satisfactory to the Dealer.  Each of the Guarantors further hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents out of any of the aforesaid courts in any such action, suit or proceeding by serving a copy thereof upon the agent for service of process referred to in this Section 7.3 (whether or not the appointment of such agent shall for any reason prove to be ineffective or such agent shall accept or acknowledge such service) or by mailing copies thereof by registered or certified airmail, postage prepaid, to it at its address specified in or designated pursuant to this Agreement.  Each of the Guarantors agrees that the failure of any such designee, appointee and agent to give any notice of such service to it shall not impair or affect in any way the validity of such service or any judgment rendered in any action or proceeding based thereon.  Nothing herein shall in any way be deemed to limit the ability of the holders of any Notes or the Dealer to serve any such legal process, summons, notices and documents in any other manner permitted by applicable law or to obtain jurisdiction over the undersigned or bring actions, suits or proceedings against the undersigned in such other jurisdictions, and in manner, as may be permitted by applicable law.  Each of the Guarantors hereby irrevocably and unconditionally waives any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with this Agreement brought in the courts listed in Section 7.3(a) and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

 

 

(d)                                 To the extent that any of the Guarantors or any of their respective properties, assets or revenues may have or may hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding in connection with or arising out of this Agreement, the Guarantee, the Notes or the offer and sale of the Notes, from the giving of any relief in any thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution of judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceeding may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Agreement, the Issuing and Paying Agent Agreement or the Guarantee, each of the Guarantors hereby irrevocably and unconditionally waives, and agrees for the benefit of the Dealer and any holder from time to time of the Notes not to plead or claim, any such immunity, and consent to such relief and enforcement.

 

7.4                               This Agreement may be terminated, at any time, by the Issuer, upon one business day’s prior notice to such effect to the Dealer, or by the Dealer upon one business day’s prior notice to such effect to the Issuer.  Any such termination, however, shall not affect the obligations of the Issuer or any of the Guarantors under Sections 3.7, 5 and 7.3 hereof or the respective representations, warranties, agreements, covenants, rights or responsibilities of the parties made or arising prior to the termination of this Agreement.

 

7.5                               This Agreement is not assignable by any party hereto without the written consent of the other parties; provided, however, that the Dealer may assign its rights and obligations under this Agreement to any affiliate of the Dealer.

 

7.6                               This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

7.7                               This Agreement is for the exclusive benefit of the parties hereto, and their respective permitted successors and assigns hereunder, and shall not be deemed to give any legal or equitable right, remedy or claim to any other person whatsoever; provided, however, that Sections 7.3(b) through (d) and Section 7.8 are hereby specifically and exclusively acknowledged to also be for the benefit of the holders from time to time of the Notes, as third-party beneficiaries.

 

7.8                               Each of the Issuer and each of the Guarantors agrees that the Issuer and the Guarantors, jointly and severally, shall indemnify and hold harmless the Dealer and each holder from time to time of Notes against any loss incurred by the Dealer or such holder as a result of any judgment or order being given or made for any amount due hereunder, under any Note or under the Guarantee and such judgment or order being expressed and paid in a currency (the “Judgment Currency”) other than United States dollars and as a result of any variation as between (i) the rate of exchange at which the United States dollar amount is converted into the Judgment Currency for the purpose of such judgment or order, and (ii) the rate of exchange at which the Dealer or such holder is able to purchase United States dollars with the amount of Judgment Currency actually received by the Dealer or such holder.  The foregoing indemnity shall 

 

 

constitute separate and independent obligations of the Issuer and the Guarantors and shall continue in full force and effect notwithstanding any such judgment or order as aforesaid.  The term “rate of exchange” shall include any premiums and costs of exchange payable in connection with the purchase of, or conversion into, the relevant currency

 

7.9                               Each of the Issuer and each of the Guarantors acknowledges and agrees that (i) purchases and sales, or placements, of the Notes pursuant to this Agreement, including the determination of any prices for the Notes and Dealer compensation, are arm’s-length commercial transactions between the Issuer and such Guarantor, on the one hand, and the Dealer, on the other, (ii) in connection therewith and with the process leading to such transactions, the Dealer is acting solely as a principal and not the agent (except to the extent explicitly set forth herein) or fiduciary of the Issuer, any of the Guarantors or any of their respective affiliates, (iii) the Dealer has not assumed an advisory or fiduciary responsibility in favor of the Issuer, any of the Guarantors or any of their respective affiliates with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether the Dealer has advised or is currently advising the Issuer, any of the Guarantors or any of their respective affiliates on other matters) or any other obligation to the Issuer, any of the Guarantors or any of their respective affiliates except the obligations expressly set forth in this Agreement, (iv) each of the Issuer and each of the Guarantors is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement, (v) the Dealer and its affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Issuer and the Guarantors and that the Dealer has no obligation to disclose any of those interests by virtue of any advisory or fiduciary relationship, (vi) the Dealer has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated hereby, and (vii) each of the Issuer and each of the Guarantors has consulted its own legal and financial advisors to the extent it deemed appropriate.  Each of the Issuer and each of the Guarantors agrees that it will not claim that the Dealer has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Issuer or such Guarantor in connection with such transactions or the process leading thereto.  Any review by the Dealer of the Issuer, any of the Guarantors, the transactions contemplated hereby or other matters relating to such transactions shall be performed solely for the benefit of the Dealer and shall not be on behalf of the Issuer or any of the Guarantors.  This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Issuer, any of the Guarantors and the Dealer (or any of them) with respect to the subject matter hereof.  Each of the Issuer and each of the Guarantors hereby waives and releases, to the fullest extent permitted by law, any claims it may have against the Dealer with respect to any breach or alleged breach of fiduciary duty.

 

[Signatures Commence on the Following Page]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written.

 

 

	
MOLSON COORS BREWING COMPANY,
    	
 
    
	
as Issuer
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Gavin   Hattersley
    	
 
    
	
 
    	
Title:
    	
Chief   Financial Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON COORS HOLDCO, INC.,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Rumley
    	
 
    
	
 
    	
Title:
    	
Vice   President — Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON COORS INTERNATIONAL LP,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Rumley
    	
 
    
	
 
    	
Title:
    	
Vice   President, Global Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON COORS CAPITAL FINANCE   ULC,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Rumley
    	
 
    
	
 
    	
Title:
    	
Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON COORS INTERNATIONAL   GENERAL, ULC,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Rumley
    	
 
    
	
 
    	
Title:
    	
Treasurer
    	
 
    

 

[Signature Page to Dealer Agreement]

 

 

	
COORS INTERNATIONAL HOLDCO, ULC,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Rumley
    	
 
    
	
 
    	
Title:
    	
Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON COORS CALLCO ULC,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michal   Rumley
    	
 
    
	
 
    	
Title:
    	
Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON CANADA 2005,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Rumley
    	
 
    
	
 
    	
Title:
    	
Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
COORS BREWING COMPANY,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Rumley
    	
 
    
	
 
    	
Title:
    	
Vice   President, Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CBC HOLDCO LLC,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
E.   Lee Reichert
    	
 
    
	
 
    	
Title:
    	
Assistant   Secretary
    	
 
    

 

[Signature Page to Dealer Agreement]

 

 

	
CBC HOLDCO 2 LLC,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
E.   Lee Reichert
    	
 
    
	
 
    	
Title:
    	
Assistant   Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MC HOLDING COMPANY LLC,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Samuel   D. Walker
    	
 
    
	
 
    	
Title:
    	
Chief   Legal Officer and Secretary
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
NEWCO3, INC.,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Mark   Saks
    	
 
    
	
 
    	
Title:
    	
Treasurer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON COORS BREWING COMPANY   (UK) LIMITED,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Lee   Finney
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MOLSON COORS HOLDINGS LIMITED,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Simon   Cox
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    

 

[Signature Page to Dealer Agreement]

 

 

	
GOLDEN ACQUISITION,
    	
 
    
	
as Guarantor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
David   Heede
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    

 

[Signature Page to Dealer Agreement]

 

 

	
[                                                                                                  ],
    	
 
    
	
as Dealer
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

[Signature Page to Dealer Agreement]

 

 

 

Addendum

 

The following additional clauses shall apply to the Agreement and be deemed a part thereof.

 

1.                                      The other dealers referred to in clause (b) of Section 1.2 of the Agreement are:

 

 

 

2.                                      The following changes are hereby made to the Agreement:

 

(a)                                 Section 1.6(j) is hereby added to the Agreement, as follows:

 

(j) The Issuer hereby agrees that, not later than 15 days after the first sale of Notes as contemplated by this Agreement, it will file with the SEC a notice on Form D in accordance with Rule 503 under the Securities Act and that it will thereafter file such amendments to such notice as Rule 503 may require.

 

(b)                                 Section 2.4 of the Agreement is amended by adding the words “and Regulation D thereunder” after the words “Section 4(a)(2) thereof” on the third line of such Section.

 

(c)                                  Section 2.6 of the Agreement is amended by replacing the phrase “No consent or action of” on the first line of such Section with the phrase “Except as provided in Section 1.6(j) hereof, no consent or action of”.

 

(d)                                 A new Section 6.18 is hereby added to the Agreement, as follows:

 

6.18                        “Regulation D” shall mean Regulation D (Rules 501 et seq.) under the Securities Act.

 

3.                                      The following Section 3.8 is hereby added to the Agreement:

 

3.8                               Without limiting any obligation of the Issuer pursuant to this Agreement to provide the Dealer with credit and financial information, the Issuer hereby acknowledges and agrees that the Dealer may share the Company Information and any other information or matters relating to the Issuer or the transactions contemplated hereby with affiliates of the Dealer, including, but not limited to, JPMorgan Chase Bank, N.A. and Bank of America, National Association and that such affiliates may likewise share information relating to the Issuer or such transactions with the Dealer.

 

4.                                      The addresses of the respective parties for purposes of notices under Section 7.1 are as follows:

 

 

For the Issuer:

 

	
Address:
    	
Molson   Coors Brewing Company
    
	
 
    	
1225   17th Street, Suite 3200
    
	
 
    	
Denver,   Colorado 80202
    
	
Attention:
    	
Chief   Legal Officer
    
	
Fax   number:
    	
(303)   279-6565
    

 

For the Dealer:

 

Address:

 

Attention:

Telephone number:

Fax number:

 

 

Exhibit A

 

Form of Legend for Private Placement Memorandum and Notes

 

THE NOTES AND THE GUARANTEE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY BE MADE ONLY IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I) IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER, THE GUARANTORS, THE NOTES AND THE GUARANTEE, (II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF AND (III) IT IS EITHER (A) AN INSTITUTIONAL INVESTOR OR SOPHISTICATED INDIVIDUAL INVESTOR THAT IS (1) AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a) UNDER THE ACT THAT, IN THE CASE OF AN INDIVIDUAL, POSSESSES SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS THAT HE OR SHE IS CAPABLE OF EVALUATING AND BEARING THE ECONOMIC RISK OF AN INVESTMENT IN THE NOTES AND HAS NOT LESS THAN $5 MILLION IN INVESTMENTS (AN “INSTITUTIONAL ACCREDITED INVESTOR” OR “SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR”, RESPECTIVELY) AND (2) EITHER (i) PURCHASING NOTES FOR ITS OWN ACCOUNT, (ii) A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS AND LOAN ASSOCIATION OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT) ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR (iii) A FIDUCIARY OR AGENT (OTHER THAN SUCH A BANK, SAVINGS AND LOAN ASSOCIATION OR OTHER INSTITUTION) PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN INSTITUTIONAL ACCREDITED INVESTOR OR SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR; OR (B) A QUALIFIED INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF RULE 144A UNDER THE ACT THAT IS ACQUIRING NOTES FOR ITS OWN ACCOUNT OR FOR ONE OR MORE ACCOUNTS, EACH OF WHICH ACCOUNTS IS A QIB; AND THE PURCHASER ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY RELY UPON THE EXEMPTION FROM THE REGISTRATION PROVISIONS OF SECTION 5 OF THE ACT PROVIDED BY RULE 144A. BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR OTHER TRANSFER THEREOF WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR TO A PERSON DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (EACH, A “PLACEMENT AGENT”), NEITHER OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH A PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR, SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS OF $250,000.

 

 

Exhibit B

 

Further Provisions Relating to Indemnification

 

(a)                                 The Issuer and the Guarantors, jointly and severally, agree to reimburse each Indemnitee for all expenses (including reasonable fees and disbursements of external counsel) as they are incurred by it in connection with investigating or defending any loss, claim, damage, liability or action in respect of which indemnification may be sought under Section 5 of the Agreement (whether or not it is a party to any such proceedings).

 

(b)                                 Promptly after receipt by an Indemnitee of notice of the existence of a Claim, such Indemnitee will, if a claim in respect thereof is to be made against the Issuer or the Guarantors, notify the Issuer and the Guarantors in writing of the existence thereof; provided that (i) the omission to so notify the Issuer or any of the Guarantors will not relieve it from any liability which it may have hereunder unless and except to the extent it did not otherwise learn of such Claim and such failure results in the forfeiture by the Issuer or the Guarantors of substantial rights and defenses, and (ii) the omission to so notify the Issuer or any of the Guarantors will not relieve it from liability which it may have to an Indemnitee otherwise than on account of this indemnity agreement.  In case any such Claim is made against any Indemnitee and it notifies the Issuer or any of the Guarantors of the existence thereof, the Issuer and the Guarantors will be entitled to participate therein, and to the extent that it may elect by written notice delivered to the Indemnitee, to assume the defense thereof, with counsel reasonably satisfactory to such Indemnitee; provided that if the defendants in any such Claim include both the Indemnitee and either the Issuer or any of the Guarantors, or both, and the Indemnitee shall have concluded that there may be legal defenses available to it which are different from or additional to those available to the Issuer or any of the Guarantors, neither the Issuer nor the Guarantors shall have the right to direct the defense of such Claim on behalf of such Indemnitee, and the Indemnitee shall have the right to select separate counsel to assert such legal defenses on behalf of such Indemnitee.  Upon receipt of notice from the Issuer to such Indemnitee of the election of the Issuer and the Guarantors to assume the defense of such Claim and approval by the Indemnitee of counsel, the Issuer and the Guarantors will not be liable to such Indemnitee for expenses incurred thereafter by the Indemnitee in connection with the defense thereof (other than reasonable costs of investigation) unless (i) the Indemnitee shall have employed separate counsel in connection with the assertion of legal defenses in accordance with the proviso to the next preceding sentence (it being understood, however, that neither the Issuer nor the Guarantors shall be liable for the expenses of more than one separate counsel (in addition to any local counsel in the jurisdiction in which any Claim is brought), approved by the Dealer, representing the Indemnitee who is party to such Claim), (ii) the Issuer and the Guarantors shall not have employed counsel reasonably satisfactory to the Indemnitee to represent the Indemnitee within a reasonable time after notice of existence of the Claim or (iii) the Issuer or the Guarantors has authorized in writing the employment of counsel for the Indemnitee.  The indemnity, reimbursement and contribution obligations of the Issuer and the Guarantors hereunder shall be in addition to any other liability the Issuer or any of the Guarantors may otherwise have to an Indemnitee and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Issuer, the Guarantors and any Indemnitee.  Each of the Issuer and each of the Guarantors agrees that without the Dealer’s prior written consent, it will not settle, compromise or consent to the entry of any judgment in any Claim in respect of which indemnification may be sought under the indemnification provision of the Agreement (whether or not the Dealer or any other Indemnitee is an actual or potential party to such Claim), unless such settlement, compromise or consent (i) 

 

 

includes an unconditional release of each Indemnitee from all liability arising out of such Claim and (ii) does not include a statement as to or an admission of fault, culpability or failure to act, by or on behalf of any Indemnitee.

 

 

Exhibit C

 

Statement of Terms for Interest-Bearing Commercial Paper Notes of 
 Molson Coors Brewing Company

 

THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC PRICING SUPPLEMENT (THE “SUPPLEMENT”) (IF ANY) SENT TO EACH PURCHASER AT THE TIME OF THE TRANSACTION.

 

1. General. (a) The obligations of the Issuer to which these terms apply (each a “Note”) are represented by one or more master notes issued in the name of The Depository Trust Company (“DTC”) or its nominee (each, a “Master Note”) which include the terms and provisions for the Issuer’s Interest-Bearing Commercial Paper Notes that are set forth in this Statement of Terms, since this Statement of Terms constitutes an integral part of the Underlying Records as defined and referred to in each Master Note.

 

(b) “Business Day” means any day other than a Saturday or Sunday that is neither a legal holiday nor a day on which banking institutions are authorized or required by law, executive order or regulation to be closed in New York City and, with respect to LIBOR Notes (as defined below) is also a London Business Day. “London Business Day” means, a day, other than a Saturday or Sunday, on which dealings in deposits in U.S. dollars are transacted in the London interbank market.

 

2. Interest. (a) Each Note will bear interest at a fixed rate (a “Fixed Rate Note”) or at a floating rate (a “Floating Rate Note”).

 

(b) The Supplement sent to each holder of such Note will describe the following terms: (i) whether such Note is a Fixed Rate Note or a Floating Rate Note and whether such Note is an Original Issue Discount Note (as defined below); (ii) the date on which such Note will be issued (the “Issue Date”); (iii) the Stated Maturity Date (as defined below); (iv) if such Note is a Fixed Rate Note, the rate per annum at which such Note will bear interest, if any, and the Interest Payment Dates; (v) if such Note is a Floating Rate Note, the Base Rate, the Index Maturity, the Interest Reset Dates, the Interest Payment Dates and the Spread and/or Spread Multiplier, if any (all as defined below), and any other terms relating to the particular method of calculating the interest rate for such Note; and (vi) any other terms applicable specifically to such Note. “Original Issue Discount Note” means a Note which has a stated redemption price at the Stated Maturity Date that exceeds its Issue Price by more than a specified de minimis amount and which the Supplement indicates will be an “Original Issue Discount Note”.

 

(c) Each Fixed Rate Note will bear interest from its Issue Date at the rate per annum specified in the Supplement until the principal amount thereof is paid or made available for payment. Interest on each Fixed Rate Note will be payable on the dates specified in the Supplement (each an “Interest Payment Date” for a Fixed Rate Note) and on the Maturity Date (as defined below). Interest on Fixed Rate Notes will be computed on the basis of a 360-day year of twelve 30-day months.

 

 

If any Interest Payment Date or the Maturity Date of a Fixed Rate Note falls on a day that is not a Business Day, the required payment of principal, premium, if any, and/or interest will be payable on the next succeeding Business Day, and no additional interest will accrue in respect of the payment made on that next succeeding Business Day.

 

(d) The interest rate on each Floating Rate Note for each Interest Reset Period (as defined below) will be determined by reference to an interest rate basis (a “Base Rate”) plus or minus a number of basis points (one basis point equals one-hundredth of a percentage point) (the “Spread”), if any, and/or multiplied by a certain percentage (the “Spread Multiplier”), if any, until the principal thereof is paid or made available for payment. The Supplement will designate which of the following Base Rates is applicable to the related Floating Rate Note: (a) the CD Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial Paper Rate Note”), (c) the Federal Funds Rate (a “Federal Funds Rate Note”), (d) LIBOR (a “LIBOR Note”), (e) the Prime Rate (a “Prime Rate Note”), (f) the Treasury Rate (a “Treasury Rate Note”) or (g) such other Base Rate as may be specified in such Supplement.

 

The rate of interest on each Floating Rate Note will be reset daily, weekly, monthly, quarterly or semi-annually (the “Interest Reset Period”). The date or dates on which interest will be reset (each an “Interest Reset Date”) will be, unless otherwise specified in the Supplement, in the case of Floating Rate Notes which reset daily, each Business Day, in the case of Floating Rate Notes (other than Treasury Rate Notes) that reset weekly, the Wednesday of each week; in the case of Treasury Rate Notes that reset weekly, the Tuesday of each week; in the case of Floating Rate Notes that reset monthly, the third Wednesday of each month; in the case of Floating Rate Notes that reset quarterly, the third Wednesday of March, June, September and December; and in the case of Floating Rate Notes that reset semiannually, the third Wednesday of the two months specified in the Supplement. If any Interest Reset Date for any Floating Rate Note is not a Business Day, such Interest Reset Date will be postponed to the next day that is a Business Day, except that in the case of a LIBOR Note, if such Business Day is in the next succeeding calendar month, such Interest Reset Date shall be the immediately preceding Business Day. Interest on each Floating Rate Note will be payable monthly, quarterly or semiannually (the “Interest Payment Period”) and on the Maturity Date. Unless otherwise specified in the Supplement, and except as provided below, the date or dates on which interest will be payable (each an “Interest Payment Date” for a Floating Rate Note) will be, in the case of Floating Rate Notes with a monthly Interest Payment Period, on the third Wednesday of each month; in the case of Floating Rate Notes with a quarterly Interest Payment Period, on the third Wednesday of March, June, September and December; and in the case of Floating Rate Notes with a semiannual Interest Payment Period, on the third Wednesday of the two months specified in the Supplement. In addition, the Maturity Date will also be an Interest Payment Date.

 

If any Interest Payment Date for any Floating Rate Note (other than an Interest Payment Date occurring on the Maturity Date) would otherwise be a day that is not a Business Day, such Interest Payment Date shall be postponed to the next day that is a Business Day, except that in the case of a LIBOR Note, if such Business Day is in the next succeeding calendar month, such Interest Payment Date shall be the immediately preceding Business Day. If the Maturity Date of a Floating Rate Note falls on a day that is not a Business Day, the payment of principal and interest will be made on the next succeeding Business Day, and no interest on such payment shall accrue for the period from and after such maturity.

 

 

Interest payments on each Interest Payment Date for Floating Rate Notes will include accrued interest from and including the Issue Date or from and including the last date in respect of which interest has been paid, as the case may be, to, but excluding, such Interest Payment Date. On the Maturity Date, the interest payable on a Floating Rate Note will include interest accrued to, but excluding, the Maturity Date. Accrued interest will be calculated by multiplying the principal amount of a Floating Rate Note by an accrued interest factor. This accrued interest factor will be computed by adding the interest factors calculated for each day in the period for which accrued interest is being calculated. The interest factor (expressed as a decimal) for each such day will be computed by dividing the interest rate applicable to such day by 360, in the cases where the Base Rate is the CD Rate, Commercial Paper Rate, Federal Funds Rate, LIBOR or Prime Rate, or by the actual number of days in the year, in the case where the Base Rate is the Treasury Rate. The interest rate in effect on each day will be (i) if such day is an Interest Reset Date, the interest rate with respect to the Interest Determination Date (as defined below) pertaining to such Interest Reset Date, or (ii) if such day is not an Interest Reset Date, the interest rate with respect to the Interest Determination Date pertaining to the next preceding Interest Reset Date, subject in either case to any adjustment by a Spread and/or a Spread Multiplier.

 

The “Interest Determination Date” where the Base Rate is the CD Rate or the Commercial Paper Rate will be the second Business Day next preceding an Interest Reset Date. The Interest Determination Date where the Base Rate is the Federal Funds Rate or the Prime Rate will be the Business Day next preceding an Interest Reset Date. The Interest Determination Date where the Base Rate is LIBOR will be the second London Business Day next preceding an Interest Reset Date. The Interest Determination Date where the Base Rate is the Treasury Rate will be the day of the week in which such Interest Reset Date falls when Treasury Bills are normally auctioned. Treasury Bills are normally sold at auction on Monday of each week, unless that day is a legal holiday, in which case the auction is held on the following Tuesday or the preceding Friday. If an auction is so held on the preceding Friday, such Friday will be the Interest Determination Date pertaining to the Interest Reset Date occurring in the next succeeding week.

 

The “Index Maturity” is the period to maturity of the instrument or obligation from which the applicable Base Rate is calculated.

 

The “Calculation Date,” where applicable, shall be the earlier of (i) the tenth calendar day following the applicable Interest Determination Date or (ii) the Business Day preceding the applicable Interest Payment Date or Maturity Date.

 

All times referred to herein reflect New York City time, unless otherwise specified.

 

The Issuer shall specify in writing to the Issuing and Paying Agent which party will be the calculation agent (the “Calculation Agent”) with respect to the Floating Rate Notes. The Calculation Agent will provide the interest rate then in effect and, if determined, the interest rate which will become effective on the next Interest Reset Date with respect to such Floating Rate Note to the Issuing and Paying Agent as soon as the interest rate with respect to such Floating Rate Note has been determined and as soon as practicable after any change in such interest rate.

 

All percentages resulting from any calculation on Floating Rate Notes will be rounded to the nearest one hundred-thousandth of a percentage point, with five-one millionths of a percentage point rounded upwards. For example, 9.876545% (or .09876545) would be rounded to 9.87655% 

 

 

(or .0987655). All dollar amounts used in or resulting from any calculation on Floating Rate Notes will be rounded, in the case of U.S. dollars, to the nearest cent or, in the case of a foreign currency, to the nearest unit (with one-half cent or unit being rounded upwards).

 

CD Rate Notes

 

“CD Rate” means the rate on any Interest Determination Date for negotiable certificates of deposit having the Index Maturity as published by the Board of Governors of the Federal Reserve System (the “FRB”) in “Statistical Release H.15(519), Selected Interest Rates” or any successor publication of the FRB (“H.15(519)”) under the heading “CDs (Secondary Market)”.

 

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, the CD Rate will be the rate on such Interest Determination Date set forth in the daily update of H.15(519), available through the world wide website of the FRB at http://www.federalreserve.gov/releases/h15/Update, or any successor site or publication or other recognized electronic source used for the purpose of displaying the applicable rate (“H.15 Daily Update”) under the caption “CDs (Secondary Market)”.

 

If such rate is not published in either H.15(519) or H.15 Daily Update by 3:00 p.m. on the Calculation Date, the Calculation Agent will determine the CD Rate to be the arithmetic mean of the secondary market offered rates as of 10:00 a.m. on such Interest Determination Date of three leading nonbank dealers in negotiable U.S. dollar certificates of deposit in New York City selected by the Calculation Agent for negotiable U.S. dollar certificates of deposit of major United States money center banks of the highest credit standing in the market for negotiable certificates of deposit with a remaining maturity closest to the Index Maturity in the denomination of $5,000,000.

 

If the dealers selected by the Calculation Agent are not quoting as set forth above, the CD Rate will remain the CD Rate then in effect on such Interest Determination Date.

 

Commercial Paper Rate Notes

 

“Commercial Paper Rate” means the Money Market Yield (calculated as described below) of the rate on any Interest Determination Date for commercial paper having the Index Maturity, as published in H.15(519) under the heading “Commercial Paper-Nonfinancial”.

 

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, then the Commercial Paper Rate will be the Money Market Yield of the rate on such Interest Determination Date for commercial paper of the Index Maturity as published in H.15 Daily Update under the heading “Commercial Paper-Nonfinancial”.

 

If by 3:00 p.m. on such Calculation Date such rate is not published in either H.15(519) or H.15 Daily Update, then the Calculation Agent will determine the Commercial Paper Rate to be the Money Market Yield of the arithmetic mean of the offered rates as of 11:00 a.m. on such Interest Determination Date of three leading dealers of U.S. dollar commercial paper in New York City selected by the Calculation Agent for commercial paper of the Index Maturity placed for an industrial issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized statistical rating organization.

 

 

If the dealers selected by the Calculation Agent are not quoting as mentioned above, the Commercial Paper Rate with respect to such Interest Determination Date will remain the Commercial Paper Rate then in effect on such Interest Determination Date.

 

“Money Market Yield” will be a yield calculated in accordance with the following formula:

 

	
 
    	
D x 360
    	
 
    
	
Money   Market Yield =
    	
                    
    	
 x 100
    
	
 
    	
360 - (D x M)
    	
 
    

 

where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount basis and expressed as a decimal and “M” refers to the actual number of days in the interest period for which interest is being calculated.

 

Federal Funds Rate Notes

 

“Federal Funds Rate” means the rate on any Interest Determination Date for federal funds as published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Reuters Screen FEDFUNDS1 Page under the heading “EFFECT” (or any successor service) (or any other page as may replace the specified page on that service) (“Reuters Page FEDFUNDS1”).

 

If the above rate does not appear on Reuters Page FEDFUNDS1 or is not so published by 3:00 p.m. on the Calculation Date, the Federal Funds Rate will be the rate on such Interest Determination Date as published in H.15 Daily Update under the heading “Federal Funds/(Effective)”.

 

If such rate is not published as described above by 3:00 p.m. on the Calculation Date, the Calculation Agent will determine the Federal Funds Rate to be the arithmetic mean of the rates for the last transaction in overnight U.S. dollar federal funds arranged by each of three leading brokers of Federal Funds transactions in New York City selected by the Calculation Agent prior to 9:00 a.m. on such Interest Determination Date.

 

If the brokers selected by the Calculation Agent are not quoting as mentioned above, the Federal Funds Rate will remain the Federal Funds Rate then in effect on such Interest Determination Date.

 

LIBOR Notes

 

The London Interbank offered rate (“LIBOR”) means, with respect to any Interest Determination Date, the rate for deposits in U.S. dollars having the Index Maturity that appears on the Designated LIBOR Page as of 11:00 a.m., London time, on such Interest Determination Date.

 

If no rate appears, LIBOR will be determined on the basis of the rates at approximately 11:00 a.m., London time, on such Interest Determination Date at which deposits in U.S. dollars are offered to prime banks in the London interbank market by four major banks in such market selected by the Calculation Agent for a term equal to the Index Maturity and in principal amount equal to an amount that in the Calculation Agent’s judgment is representative for a single 

 

 

transaction in U.S. dollars in such market at such time (a “Representative Amount”). The Calculation Agent will request the principal London office of each of such banks to provide a quotation of its rate. If at least two such quotations are provided, LIBOR will be the arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR for such interest period will be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in New York City, on such Interest Determination Date by three major banks in New York City, selected by the Calculation Agent, for loans in U.S. dollars to leading European banks, for a term equal to the Index Maturity and in a Representative Amount; provided, however, that if fewer than three banks so selected by the Calculation Agent are providing such quotations, the then existing LIBOR rate will remain in effect for such Interest Payment Period.

 

“Designated LIBOR Page” means the display on the Reuters 3000 Xtra Service, or any successor service, on the “LIBOR01” page or “LIBOR02” page or any replacement page or pages on which London interbank offered rates of major banks for U.S. dollars are displayed.

 

Prime Rate Notes

 

“Prime Rate” means the rate on any Interest Determination Date as published in H.15(519) under the heading “Bank Prime Loan”.

 

If the above rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation Date, then the Prime Rate will be the rate on such Interest Determination Date as published in H.15 Daily Update opposite the caption “Bank Prime Loan”.

 

If the rate is not published prior to 3:00 p.m. on the Calculation Date in either H.15(519) or H.15 Daily Update, then the Calculation Agent will determine the Prime Rate to be the arithmetic mean of the rates of interest publicly announced by each bank that appears on the Reuters Screen US PRIME 1 Page (as defined below) as such bank’s prime rate or base lending rate as of 11:00 a.m., on that Interest Determination Date.

 

If fewer than four such rates referred to above are so published by 3:00 p.m. on the Calculation Date, the Calculation Agent will determine the Prime Rate to be the arithmetic mean of the prime rates or base lending rates quoted on the basis of the actual number of days in the year divided by 360 as of the close of business on such Interest Determination Date by three major banks in New York City selected by the Calculation Agent.

 

If the banks selected are not quoting as mentioned above, the Prime Rate will remain the Prime Rate in effect on such Interest Determination Date.

 

“Reuters Screen US PRIME 1 Page” means the display designated on the Reuters 3000 Xtra Service, or any successor service, on the US PRIME 1 page, or any replacement page or pages on which prime rates or base lending rates of major U.S. banks are displayed.

 

 

 

Treasury Rate Notes

 

“Treasury Rate” means:

 

(1)                                 the rate from the auction held on the Interest Determination Date (the “Auction”) of direct obligations of the United States (“Treasury Bills”) having the Index Maturity specified in the Supplement under the caption “INVESTMENT RATE” on the display on Reuters Screen USAUCTION10 or USAUCTION11 page (or any other page as may replace that page on that service or a successor service), or

 

(2)                                 if the rate referred to in clause (1) is not so published by 3:00 p.m. on the related Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for the applicable Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government Securities/Treasury Bills/Auction High”, or

 

(3)                                 if the rate referred to in clause (2) is not so published by 3:00 p.m. on the related Calculation Date, the Bond Equivalent Yield of the auction rate of the applicable Treasury Bills as announced by the United States Department of the Treasury, or

 

(4)                                 if the rate referred to in clause (3) is not so announced by the United States Department of the Treasury, or if the Auction is not held, the Bond Equivalent Yield of the rate on the particular Interest Determination Date of the applicable Treasury Bills as published in H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or

 

(5)                                 if the rate referred to in clause (4) not so published by 3:00 p.m. on the related Calculation Date, the rate on the particular Interest Determination Date of the applicable Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or

 

(6)                                 if the rate referred to in clause (5) is not so published by 3:00 p.m. on the related Calculation Date, the rate on the particular Interest Determination Date calculated by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market bid rates, as of approximately 3:30 p.m. on that Interest Determination Date, of three primary United States government securities dealers selected by the Calculation Agent, for the issue of Treasury Bills with a remaining maturity closest to the Index Maturity specified in the Supplement, or

 

(7)                                 if the dealers so selected by the Calculation Agent are not quoting as mentioned in clause (6), the Treasury Rate in effect on the particular Interest Determination Date.

 

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the following formula:

 

	
 
    	
D x N
    	
 
    
	
Bond   Equivalent Yield =
    	
                    
    	
 x 100
    
	
 
    	
360 - (D x M)
    	
 
    

 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount basis and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in the applicable Interest Reset Period.

 

 

3. Final Maturity. The Stated Maturity Date for any Note will be the date so specified in the Supplement, which shall be no later than 397 days from the date of issuance. On its Stated Maturity Date, or any date prior to the Stated Maturity Date on which the particular Note becomes due and payable by the declaration of acceleration, each such date being referred to as a Maturity Date, the principal amount of each Note, together with accrued and unpaid interest thereon, will be immediately due and payable.

 

4. Events of Default. The occurrence of any of the following shall constitute an “Event of Default” with respect to a Note: (i) default in any payment of principal of or interest on such Note (including on a redemption thereof); (ii) the Issuer or the Guarantors makes any compromise arrangement with its creditors generally including the entering into any form of moratorium with its creditors generally; (iii) a court having jurisdiction shall enter a decree or order for relief in respect of the Issuer or any Guarantor in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or there shall be appointed a receiver, administrator, liquidator, custodian, trustee or sequestrator (or similar officer) with respect to the whole or substantially the whole of the assets of the Issuer or any Guarantor and any such decree, order or appointment is not removed, discharged or withdrawn within 60 days thereafter; or (iv) the Issuer or any Guarantor shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment of or taking possession by a receiver, administrator, liquidator, assignee, custodian, trustee or sequestrator (or similar official), with respect to the whole or substantially the whole of the assets of the Issuer or the Guarantors or make any general assignment for the benefit of creditors. Upon the occurrence of an Event of Default, the principal of each obligation evidenced by such Note (together with interest accrued and unpaid thereon) shall become, without any notice or demand, immediately due and payable.

 

5. Obligation Absolute. No provision of the Issuing and Paying Agent Agreement under which the Notes are issued shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on each Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

6. Supplement. Any term contained in the Supplement shall supersede any conflicting term contained herein.

 

 

Exhibit D

 

Form of Guarantee

 

GUARANTEE

 

GUARANTEE, dated as of March     , 2013 of                           , a corporation organized under the laws of                        (the “Guarantor”).

 

The Guarantor, for value received, hereby agrees as follows for the benefit of the holders (the “Holders”) from time to time of the Notes hereinafter described:

 

1.                                   The Guarantor irrevocably guarantees payment in full, as and when the same becomes due and payable, of the principal of and interest, if any, on the notes (the “Notes”)  issued by Molson Coors Brewing Company, a Delaware corporation (the “Issuer”), from time to time pursuant to the Issuing and Paying Agent Agreement, dated as of March     , 2013, as the same may be amended, supplemented or modified from time to time, between the Issuer, Bank of America, National Association (the “Agent”), and the guarantors from time to time party thereto (the “IPA Agreement”).

 

2.                                   The Guarantor’s obligations under this Guarantee shall be unconditional, irrespective of the validity or enforceability of any provision of the IPA Agreement or the Notes.

 

3.                                   The Guarantor hereby unconditionally and irrevocably guarantees, jointly and severally, to each Holder, to the Agent and its successors and assigns: (a) the full and punctual payment of all of the principal of, and any premium and interest on, the Notes when due, whether at maturity, by acceleration, by redemption or otherwise, and all other monetary obligations of the Issuer under the IPA Agreement and the Notes; and (b) the full and punctual performance within applicable grace periods of all other obligations of the Issuer under the IPA Agreement with respect to the Notes (all the foregoing being hereinafter collectively called the “Guaranteed Obligations”).  The Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice or further assent from the Guarantor and that the Guarantor will remain bound under this Guarantee notwithstanding any extension or renewal of any Guaranteed Obligation.

 

4.                                   In the event of a default in payment of principal of or interest on any Notes, the holders of such Notes, may institute legal proceedings directly against the Guarantor to enforce this Guarantee without first proceeding against the Issuer.

 

5.                                   This Guarantee is a guaranty of the due and punctual payment (and not merely of collection) of the principal of and interest, if any, on the Notes by the Guarantor and shall remain in full force and effect until all amounts have been validly, finally and irrevocably

 

 

paid in full, and shall not be affected in any way by any circumstance or condition whatsoever, including without limitation (a) the absence of any action to obtain such amounts from the Issuer, (b) any variation, extension, waiver, compromise or release of any or all of the obligations of the Issuer under the IPA Agreement or the Notes or of any collateral security therefore or (c) any change in the existence or structure of, or the bankruptcy or insolvency of, the Issuer or by any other circumstance (other than by complete, irrevocable payment) that might otherwise constitute a legal or equitable discharge or defense of a guarantor or surety. The Guarantor waives all requirements as to diligence, presentment, demand for payment, protest and notice of any kind with respect to the IPA Agreement and the Notes.

 

6.                                   The obligations of each applicable Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of the Guarantor shall not be discharged or impaired or otherwise affected by the failure of any Holder or the Agent to assert any claim or demand or to enforce any remedy under the IPA Agreement, the Notes or any other agreement, by any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of the Guarantor or would otherwise operate as a discharge of the Guarantor as a matter of law or equity.

 

7.                                   The Guarantor further agrees that its Guaranteed Obligations herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of, or premium or interest on, any Guaranteed Obligation is rescinded or must otherwise be restored by any Holder or the Agent upon the bankruptcy or reorganization of the Issuer or otherwise.

 

8.                                   In furtherance of the foregoing and not in limitation of any other right which any Holder or the Agent has at law or in equity against the Guarantor by virtue hereof, upon the failure of the Issuer to pay the principal of, or premium or interest on, any Guaranteed Obligation when and as the same shall become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or comply with any other Guaranteed Obligation, the Guarantor hereby promises to and shall, upon receipt of written demand by the Agent, forthwith pay, or cause to be paid, in cash, to the Holders or the Agent an amount equal to the sum of: (1) the unpaid amount of such Guaranteed Obligations; (2) accrued and unpaid interest on such Guaranteed Obligations (but only to the extent not prohibited by law); and (3) all other monetary Guaranteed Obligations of the Issuer to the Holders and the Agent.

 

 

9.                                   The Guarantor agrees that, as between it, on the one hand, and the Holders and the Agent, on the other hand: (x) the maturity of the Guaranteed Obligations may be accelerated for the purposes of the Guarantor’s Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guaranteed Obligations; and (y) in the event of any declaration of acceleration of such Obligations, such Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantor.

 

10.                            Any term or provision of the IPA Agreement to the contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations by the Guarantor shall not exceed the maximum amount that can be hereby guaranteed without rendering the Guarantee, as it relates to the Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally.

 

11.                            Neither a failure nor a delay on the part of the Agent or the Holders in exercising any right, power or privilege shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege.  The rights, remedies and benefits of the Agent and the Holders herein expressly specified are cumulative and not exclusive of any other rights, remedies or benefits which they may have under the IPA Agreement or the Notes at law, in equity, by statute or otherwise.

 

12.                            Any waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice to or demand on the Guarantor in any case shall entitle the Guarantor to any other or further notice or demand in the same, similar or other circumstances.

 

13.                            Upon: (i) the sale or other disposition (including by way of consolidation, amalgamation or merger), in one transaction or a series of related transactions, of a majority of the total voting power of the capital stock or other interests of the Guarantor (other than to the Issuer or any of its subsidiaries); or (ii) the sale or other disposition of all or substantially all the assets of the Guarantor (other than to the Issuer or any of its subsidiaries); or (iii) if at any time when no default or event of default has occurred and is continuing with respect to the Notes so guaranteed, the Guarantor no longer guarantees (or which Guarantee is being simultaneously released or will be immediately released after the release of the Guarantor) the indebtedness for borrowed money of the Issuer under the Issuer’s then-existing primary credit facility, the Guarantor shall automatically be deemed released from all obligations under this Guarantee without any further action required on the part of the Agent or any Holder. At the request of the Guarantor, the Agent shall execute and deliver an appropriate instrument delivered to it by the Guarantor and reasonably acceptable to the Agent, evidencing such release.

 

 

14.                            The Guarantor that makes a payment under its Guarantee shall be entitled upon payment in full of all Guaranteed Obligations with respect to such series to a contribution from each other guarantor so providing a Guarantee with respect to the Notes in an amount equal to such other guarantor’s pro rata portion of such payment based on the respective net assets of all the guarantors so providing a guarantee with respect to such series of the Notes at the time of such payment determined in accordance with GAAP; provided that the operation of this Section 14 shall not limit in any manner the obligations of the Guarantor hereunder in respect of the Notes or the IPA Agreement.

 

15.                            This Guarantee shall be governed by and construed in accordance with the laws of the State of New York.

 

16.                            The Guarantor hereby irrevocably:

 

(a)      accepts and submits to the non-exclusive jurisdiction of the United States federal courts located in the Borough of Manhattan and the courts of the State of New York located in the Borough of Manhattan.

 

(b)      designates, appoints and empowers Molson Coors Brewing Company, with offices at 1225 17th Street, Suite 3200, Denver, Colorado 80202, Attention: Chief Legal Officer, fax number: (303) 279-6565, as its designee, appointee and agent to receive, accept and acknowledge for and on its behalf, and its properties, assets and revenues, service for any and all legal process, summons, notices and documents which may be served in any such action, suit or proceeding brought in the courts listed in Section 7(a) which may be made on such designee, appointee and agent in accordance with legal procedures prescribed for such courts, with respect to any suit, action or proceeding in connection with or arising out of this Guarantee. If for any reason such designee, appointee and agent hereunder shall cease to be available to act as such, the Guarantor agrees to designate a new designee, appointee and agent in the City of New York on the terms and for the purposes of this Section 7 satisfactory to the Dealer. The Guarantor further hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents out of any of the aforesaid courts in any such action, suit or proceeding by serving a copy thereof upon the agent for service of process referred to in this Section 7 (whether or not the appointment of such agent shall for any reason prove to be ineffective or such agent shall accept or acknowledge such service) or by mailing copies thereof by registered or certified airmail, postage prepaid, to it at its address specified in or designated pursuant to this Guarantee. The Guarantor agrees that the failure of any such designee, appointee and agent to give any notice of such service to it shall not impair or affect in any way the validity of such service or any judgment rendered in any action or proceeding based thereon. Nothing herein shall in any way be deemed to limit the ability of the holders of any Notes to serve any such legal process, summons, notices and documents in any other manner permitted by applicable law or to obtain jurisdiction over the undersigned or bring actions, suits or proceedings against the undersigned in such other jurisdictions, and in such other manner, as may be permitted by applicable law. The Guarantor hereby irrevocably and unconditionally waives any objection which it may now or hereafter have to the 

 

 

laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with the IPA Agreement brought in the courts listed in Section 7(a) and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

 

17.                            To the extent that the Guarantor or any of its properties, assets or revenues may have or may hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding in connection with or arising out of this Guarantee, from the giving of any relief in any thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution of judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceeding may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Guarantee, the Guarantor hereby irrevocably and unconditionally waives, and agrees for the benefit of the Dealer and any holder from time to time of the Notes not to plead or claim, any such immunity, and consents to such relief and enforcement.

 

18.                            The Guarantor agrees to indemnify each holder from time to time of Notes against any loss incurred by such holder as a result of any judgment or order being given or made for any amount due hereunder or thereunder and such judgment or order being expressed and paid in a currency (the “Judgment Currency”) other than United States dollars and as a result of any variation as between (i) the rate of exchange at which the United States dollar amount is converted into the Judgment Currency for the purpose of such judgment or order, and (ii) the rate of exchange at which such holder is able to purchase United States dollars with the amount of Judgment Currency actually received by the Dealer. The foregoing indemnity shall constitute a separate and independent obligation of the Guarantor and shall continue in full force and effect notwithstanding any such judgment or order as aforesaid. The term “rate of exchange” shall include any premiums and costs of exchange payable in connection with the purchase of, or conversion into, the relevant currency.

 

IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly executed as of the day and year first above written.

 

 

	
 
    	
[Name   of Guarantor]
    
	
 
    	
By:
    
	
 
    	
Title:Exhibit 10.50

 

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this “Agreement”), dated as of March 20, 2013, is made and entered into by and among (i) Rockwell Medical, Inc., a Michigan corporation (the “Company”), and (ii) each individual or entity whose subscription agreement (each, a “Subscription Agreement”) to purchase shares of Company common stock, no par value per share (the “Common Stock”), is accepted in writing by the Company (each of the individuals or entities described in clause (ii) individually, a “Purchaser” and, collectively, the “Purchasers”). The Company and the Purchasers are referred to from time to time in this Agreement individually as a “party” and, collectively, as the “parties.”

 

WHEREAS, the Purchasers desire to purchase, and the Company desires to issue and sell, shares of the Company’s Common Stock on the terms and conditions set forth in this Agreement;

 

NOW THEREFORE, in consideration of the representations, warranties and covenants herein contained, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Company and the Purchasers agree as follows:

 

1.                                      Sale of Shares. Subject to the terms and conditions of this Agreement, at the Closing (as defined in Section 2.1) each Purchaser agrees severally and not jointly to purchase, and the Company agrees to sell and issue to each Purchaser, the aggregate number of shares of Common Stock set forth in the Subscription Agreement signed by such Purchaser pursuant hereto and accepted by the Company (collectively, the “Shares”) at a price equal to $3.00 per share (the “Purchase Price”); provided, however, that in no event shall the aggregate number of Shares sold pursuant to this Agreement exceed 4,300,000 shares.

 

2.                                      The Closing.

 

2.1                               Closing.  The closing (the “Closing”) of the sale and purchase of the Shares under this Agreement will take place remotely via an electronic exchange of documents and signatures on the third NASDAQ trading day following the date hereof, or at such other time, date and place as are mutually agreeable to the Company and the Purchasers. The date of the Closing is hereinafter referred to as the “Closing Date.”

 

2.2                               Delivery of Shares; Payment of Purchase Price. (a) At the Closing, the Company shall deliver to each Purchaser irrevocable instructions addressed to the Company’s transfer agent instructing it to issue a certificate registered in the name of such Purchaser representing the number of Shares purchased by such Purchaser, and (b) each Purchaser shall deliver, on or before the Closing Date, the Purchase Price for such Shares to the Company by wire transfer of immediately available funds to the account number furnished to such Purchaser by the Company.

 

1

 

3.                                      Registration Statement and Prospectus. The offering and sale of the Shares (the “Offering”) are being made pursuant to the Registration Statement and the Prospectus (as such terms are defined below).  The Company has filed with the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities Act”), (i) a prospectus (the “Base Prospectus”) included in the registration statement (File No. 333-181003), which became effective as of June 13, 2012 (the “Initial  Registration Statement”), and (ii) will file with the SEC a final prospectus supplement (together with the Base Prospectus, the “Statutory Prospectus”) with respect to the registration statement reflecting the Offering, including all amendments thereto, the exhibits and any schedules thereto, the documents otherwise deemed to be a part thereof or included therein by the rules and regulations of the SEC (the “Rules and Regulations”) and any registration statement relating to the Offering and filed pursuant to Rule 462(b) under the Rules and Regulations (collectively, the “Registration Statement”), in conformity with the Securities Act, including Rule 424(b) thereunder.  The Statutory Prospectus and the reports incorporated by reference therein are collectively the “Time of Sale Disclosure Package.”

 

4.                                      Representations of the Company. Except as otherwise specifically described in the Time of Sale Disclosure Package and the exhibits thereto, which qualifies the following representations, warrants and covenants in their entirety, the Company hereby makes the following representations and warranties to each Purchaser:

 

4.1                               Incorporation.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Michigan, and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or the character of the property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not result in a material adverse effect on the assets, business, properties, financial condition or results of operations of the Company and its subsidiary taken as a whole (a “Material Adverse Effect”).

 

4.2                               Articles and Bylaws. The Company has filed with the Company SEC Documents (as defined below) correct and complete copies of the Company’s Restated Articles of Incorporation and Bylaws, each as in effect on the date hereof.

 

4.3                               Valid Issuance of Shares. When issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed in this Agreement, the Shares will be duly authorized, validly issued, fully paid, non-assessable and free of restrictions on transfer other than restrictions imposed or created under this Agreement, by applicable law or by the Purchasers and, based in part upon the representations of the Purchasers in this Agreement, will be issued in compliance in all material respects with applicable U.S. federal securities laws.  In addition, such Shares will be free and clear of all liens, claims, charges, security interests or agreements, pledges, assignments, covenants, restrictions or other encumbrances created or imposed by the Company (collectively, “Encumbrances”) and rights of refusal of any kind imposed by the Company (other than restrictions on transfer under applicable securities laws) and the holder of such Shares shall be entitled to all rights accorded to a holder of Common Stock.

 

2

 

4.4                               Authorization; Enforcement. The Company has all requisite corporate power and authority and has taken all necessary corporate action to execute and deliver this Agreement and the Subscription Agreements (collectively, the “Transaction Documents”) and to carry out and perform its obligations hereunder and thereunder, and no further consent or authorization of the Company, its board of directors or shareholders is required.  The execution, delivery and performance of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby constitutes the valid and binding obligation of the Company, enforceable in accordance with its terms, subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting creditors’ rights and remedies generally and (ii) the effect of equitable principles (regardless of whether enforceability is considered in a proceeding in equity or at law).

 

4.5                               No Conflicts; Governmental Approvals. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby do not and will not (i) violate any provision of the Company’s Restated Articles of Incorporation or Bylaws, each as amended to date, (ii) constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party or by which the Company’s properties or assets are bound, or (iii) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected, except for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect. The Company is not required under federal, state, foreign or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under the Transaction Documents or issue and sell the shares in accordance with the terms hereof or thereof (other than any filings, consents and approvals which may be required to be made by the Company under applicable state and federal securities laws, rules or regulations or rules or regulations of the NASDAQ Stock Market, prior to or subsequent to the Closing).

 

4.6                               Capitalization. The authorized capital stock of the Company consists of (a) 40,000,000 shares of Common Stock, of which 21,559,138 were issued and outstanding as of the date hereof, (b) 3,416,664 preferred shares (of which 1,416,664 are designated as 8.5% non-voting cumulative redeemable Series A Preferred Shares, $1.00 par value), none of which were issued or outstanding at the date hereof.  Except as set forth herein and in the Time of Sale Disclosure Package, there are no outstanding rights (including conversion rights or preemptive rights and rights of first refusal), options, warrants, instruments, or other agreements or instruments of any kind to which the Company is a party for the purchase or acquisition from the Company of any securities of the Company.

 

4.7                               Financial Statements and SEC Filings. Since January 1, 2012, the Company has filed all required reports, schedules, forms, financial statements and other documents (including exhibits and all other information incorporated therein) with the SEC (the “Company SEC Documents”). As of their respective dates, the Company SEC Documents complied as to form in

 

3

 

all material respects with the applicable requirements of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as the case may be, and the Rules and Regulations applicable to such Company SEC Documents. At the time they were filed with the SEC, the Company SEC Documents did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the Company SEC Documents, as amended, complied as to form in all material respects with applicable accounting requirements and the published Rules and Regulations with respect thereto in effect at such time. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (a) as may be otherwise indicated in such financial statements or the notes thereto, or (b) in the case of unaudited interim statements, as permitted by the SEC on Form 10-Q) and fairly presented in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

4.8                               Registration Statement.  At the time of the filing of the Initial Registration Statement with the SEC, the conditions for use of Form S-3, set forth in the General Instructions thereto, were satisfied. The Initial Registration Statement was declared effective by the SEC under the Securities Act on June 13, 2012.  The Company has complied, to the SEC’s satisfaction, with all requests of the SEC for additional or supplemental information.  No stop order suspending the effectiveness of the Initial Registration Statement or any post-effective amendment thereto has been issued, and, to the Company’s knowledge, no proceeding for that purpose has been initiated or threatened by the SEC.

 

4.9                               NASDAQ Listing. As of the date hereof, the Common Stock is listed on the NASDAQ Global Market and, since January 1, 2013, the Company has not received any notification that the NASDAQ Global Market is contemplating terminating such listing. The Company has filed the required Listing of Additional Shares form with NASDAQ.

 

4.10                        No Material Adverse Change. Since the filing of the Company’s most recent quarterly or annual report filed with the SEC, except as described in the Time of Sale Disclosure Package, there has not been any material adverse change in the assets, business, properties, financial condition or results of operations of the Company.

 

4.11                        Absence of Litigation. There is no action, suit or proceeding, or governmental inquiry or investigation, pending, or, to the Company’s knowledge, being threatened against the Company or any subsidiary of the Company, which if determined adversely, would be reasonably likely to have a Material Adverse Effect.

 

4.12                        Intellectual Property Rights. The Company and its subsidiary own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, copyrights, inventions, licenses, trade secrets and other intellectual property rights (“Intellectual Property Rights”) necessary to conduct their respective businesses, in all material respects, as now conducted. The Company has no knowledge of any infringement by the Company or its subsidiary of Intellectual Property Rights

 

4

 

of others, which would be reasonably likely to result in a Material Adverse Effect. There is no claim, action or proceeding pending, or to the knowledge of the Company, being threatened, against the Company or any Company subsidiary regarding its Intellectual Property Rights, which would be reasonably likely to result in a Material Adverse Effect. The Company is unaware of any facts or circumstances, which would be reasonably likely to give rise to any of the foregoing infringements or claims, actions or proceedings.

 

4.13                        Internal Accounting and Disclosure Controls. The Company maintains accurate books and records reflecting its assets and liabilities and maintains proper and adequate control over financial reporting to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific authorization, (b) transactions are recorded as necessary to permit preparation of the financial statements of the Company and to maintain accountability for the assets of the Company, (c) access to the assets of the Company is permitted only in accordance with management’s general or specific authorization, (d) the reporting of the assets of the Company is compared with the existing assets of the Company at reasonable intervals and (e) accounts, notes and other receivables and inventory were recorded accurately, and proper and adequate procedures are implemented to effect the collection thereof on a current and timely basis. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to Company’s management, including its principal executive officer and its principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

4.14                        Compliance. The Company has, in all material respects, complied with all laws, regulations and orders applicable to its business and has all necessary permits and licenses required thereby.

 

4.15                        Brokers and Finders. No individual or entity (collectively, a “Person”) will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Purchasers for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of Company.  The Company has entered into an agreement with Chardan Capital Markets, LLC and Newbridge Securities Corporation to pay a commission of 5.0% in connection with the sale of the Shares pursuant to this Agreement.

 

5.                                      Representations of the Purchasers. Each Purchaser represents and warrants, severally and not jointly, to the Company as follows:

 

5.1                               Existence.  Such Purchaser is either an individual or an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

5.2                               Authority; Enforceability. Such Purchaser has all requisite power and authority and has taken any necessary corporate action to execute and deliver the Transaction Documents

 

5

 

and to carry out and perform its obligations hereunder and thereunder, and no further consent or authorization of such Purchaser or, if applicable, its officers, directors, managers, members, shareholders and/or partners is required. The execution, delivery and performance of the Transaction Documents by such Purchaser and the consummation by such Purchaser of the transactions contemplated hereby and thereby constitutes the valid and binding obligation of such Purchaser, enforceable in accordance with its terms, subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting creditors’ rights and remedies generally and (ii) the effect of equitable principles (regardless of whether enforceability is considered in a proceeding in equity or at law).

 

5.3                               No Conflicts; Governmental Approvals. The execution, delivery and performance of the Transaction Documents by such Purchaser and the consummation by such Purchaser of the transactions contemplated hereby and thereby do not and will not (i) violate any provision of, if applicable, such Purchaser’s organizational documents, each as amended to date, (ii) constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which such Purchaser is a party or by which such Purchaser’s properties or assets are bound, or (iii) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to such Purchaser or by which any property or asset of such Purchaser is bound or affected, except for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect on the assets, business, properties, financial condition or results of operations of such Purchaser. Such Purchaser is not required under federal, state, foreign or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of such Purchaser’s obligations under the Transaction Documents.

 

5.4                               Ownership in the Company.  Neither such Purchaser nor any group (within the meaning of 13(d)(3) of the Securities Act) of investors of which it is a member, will beneficially own (as defined in Rule 13d-3 of the Exchange Act) or have the right to acquire (including by virtue of beneficially owning securities convertible or exercisable for Common Stock), in the aggregate, 20% or more of the Common Stock outstanding as set forth in Section 4.6.  Such Purchaser is the sole acquirer of the Shares and, if applicable, no officer, director or substantial shareholder of the Company has, to the knowledge of such Purchaser, a 5% or greater interest in such Purchaser or in the consideration to be paid for the Shares.

 

5.5                               Purchase Entirely for Own Account. Such Purchaser is acquiring the Shares for investment for such Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and such Purchaser has no present intention of selling, granting any participation in, or otherwise distributing any of the Shares. Such Purchaser has no current agreement, arrangement, undertaking, obligation or commitment providing for the disposition of the Shares and has not been organized, reorganized or recapitalized specifically for the purpose of acquiring the Shares.  However by making this representation the Purchaser is not agreeing to hold the investment for any length of time and may dispose of the investment at any time in any legal manner.

 

6

 

5.6                               Access to Information. Such Purchaser has (i) had full access to the Time of Sale Disclosure Package prior to or in connection with its receipt of this Agreement and is relying only on such information and documents in making its decision to purchase the Shares; and (ii) received all the information that he, she or it has requested and that such Purchaser considers necessary or appropriate for deciding whether to enter into this Agreement and to acquire the Shares. Such Purchaser has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares.

 

5.7                               Investment Experience. Such Purchaser acknowledges that he, she or it is able to fend for him, her or itself, can bear the economic risk of its investment and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the investment in the Shares.  Such Purchaser acknowledges that he, she or it has not received any legal or tax advice from the Company or any of its representatives with respect the transactions contemplated hereby.  Such Purchaser has consulted such legal, tax and investment advisors as it, in his, her or its sole discretion, has deemed necessary or appropriate in connection with his, her or its purchase of the Shares.

 

5.8                               Status of Purchaser.

 

(a)                                 Such Purchaser’s principal executive office and place of business is set forth in Schedule 1 attached to this Agreement.

 

(b)                                 Such Purchaser is an “accredited investor” as such term is defined in Rule 501(a) under the Securities Act.

 

(c)                                  Such Purchaser (i) is not acting, nor has any arrangement to act, as a partnership, limited partnership, syndicate, or other group with another Purchaser for purposes of acquiring, holding or disposing of the Shares or to control the direction of the Company; and (ii) has not filed a notice that it is acting as a group with another Purchaser (nor is required to file such a notice) on a Schedule 13D or Schedule 13G under the Securities Act nor any other notice required by the securities laws of the United States, any state or any other jurisdiction.

 

5.9                               Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Purchaser.

 

6.                                      Conditions to the Obligations of the Purchasers. The obligation of each Purchaser, severally, to purchase Shares at the Closing is subject to the fulfillment, or the waiver by such Purchaser, of each of the following conditions on or before the Closing:

 

6.1                               Accuracy of Representations and Warranties. Each representation and warranty contained in Section 4 shall be true and correct in all material respects on and as of the Closing Date with the same effect as though such representation and warranty had been made on and as of that date.

 

7

 

6.2                               Qualifications. All authorizations, approvals or permits, if any, of any governmental entity that are required as of the Closing Date in connection with the issuance and sale of the Shares to such Purchaser pursuant to this Agreement shall be duly obtained and effective as of the Closing Date.

 

6.3                               Opinion. The Purchasers shall have received the opinion of Dykema Gossett PLLC, dated as of the Closing, in the form attached hereto as Exhibit A.

 

6.4                               No Governmental Proceedings. No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted before any governmental entity and shall be pending.

 

7.                                      Conditions to the Obligations of the Company. The obligations of the Company to consummate the Closing and to issue and sell Shares to each Purchaser are subject to fulfillment of the following conditions on or before the Closing:

 

7.1                               Accuracy of Representations and Warranties. The representations and warranties of such Purchaser contained in Section 5 shall be true and correct on and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of that date.

 

7.2                               No Governmental Proceedings. No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted before any governmental entity and shall be pending.

 

7.3                               Receipt of Wire Transfer. The Company shall have received from such Purchaser the wire transfer contemplated in Section 2.2.

 

8.                                      [reserved]

 

9.                                      Miscellaneous.

 

9.1                               Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company and each Purchaser and their respective successors.

 

9.2                               Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

9.3                               Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each party shall be entitled to specific performance of the agreements and obligations of the other parties and to such other injunctive or other equitable relief as may be granted by a court of competent jurisdiction.

 

9.4                               Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Michigan (without reference to the conflicts of law provisions thereof).

 

8

 

9.5                               Notices. All notices, requests, consents and other communications under this Agreement shall be in writing and shall be deemed delivered (a) two business days after being sent by registered or certified mail, return receipt requested, postage prepaid or (b) one business day after being sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, in each case to the intended recipient as set forth below:

 

If to the Company:

 

Rockwell Medical, Inc.

30142 Wixom Road

Wixom, MI 48393

Attention:  Thomas Klema

Email:  tklema@rockwellmed.com

 

with a copy (which will not constitute notice) to:

 

Dykema Gossett PLLC

39577 Woodward Ave., Suite 300

Bloomfield Hills, MI  48304

Attention:  Mark A. Metz

mmetz@dykema.com

 

If to a Purchaser, to such Purchaser’s address as set forth on the Subscription Agreement for such Purchaser

 

or in each case at such other address or addresses as may have been furnished in writing to the other party.  A party may give any notice, request, consent or other communication under this Agreement using any other means (including, without limitation, personal delivery, messenger service, telecopy, first class mail or electronic mail), but no such notice, request, consent or other communication shall be deemed to have been duly given unless and until it is actually received by the other party. A party may change the address to which notices, requests, consents or other communications hereunder are to be delivered by giving the other party notice in the manner set forth in this Section 9.5.

 

9.6                               Legal Fees and Expenses. Each of the parties will bear its own legal fees and other expenses with respect to the transaction contemplated by this Agreement.

 

9.7                               Complete Agreement. This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to such subject matter, other than any confidentiality or nondisclosure agreement entered into between the Company and any Purchaser, which shall remain in effect for the stated term thereof.

 

9.8                               Amendments and Waivers. Except as otherwise expressly set forth in this Agreement, any term of this Agreement may be amended or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), but only with the written consent of the Company and Purchasers

 

9

 

who hold a majority of the outstanding Shares; provided, that with respect to any amendment, supplement, modification or waiver that adversely and disproportionately affects a single Purchaser, then the consent or waiver of such Purchaser shall also be required.

 

9.9                               Assignment.  No party may assign this Agreement or any rights or obligations hereunder.

 

9.10                        Counterparts; Facsimile Signatures. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which shall constitute one and the same document. The delivery of a signature page of this Agreement or a Subscription Agreement by one party to the other parties via facsimile transmission shall constitute the execution and delivery of this Agreement by the transmitting party.

 

9.11                        Section Headings. The section headings are for the convenience of the parties and in no way alter, modify, amend, limit or restrict the contractual obligations of the parties.

 

[Remainder of page intentionally left blank]

 

10

 

SIGNATURE PAGE

 

The undersigned has executed this Agreement as of the date first above written with the Purchasers whose Subscription Agreements have been executed thereby and accepted by the undersigned.

 

	
 
    	
ROCKWELL   MEDICAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert L. Chioini
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Robert   L. Chioini
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
President   and Chief Executive Officer
    

 

This Agreement will involve no obligation or commitment of any kind for the Company as to any Purchaser until a Subscription Agreement has been received by the Company from such Purchaser and such Subscription Agreement is accepted and countersigned by or on behalf of the Company.

 

11

 

EXHIBIT A

 

FORM OF OPINION

 

(See attached)

 

12

 

	

    	
Dykema   Gossett PLLC
   Suite 300
   39577 Woodward Avenue
   Bloomfield Hills, Michigan 48304

WWW.DYKEMA.COM

Tel:         (248) 203-0700
   Fax:     (248) 203-0703
    
	
 
    
	
EXHIBIT A
    
	
FORM OF   OPINION
    

 

March       , 2013

 

To the Purchasers listed on Schedule II hereto

 

Re:                             Rockwell Medical, Inc.                                                                                      

 

Ladies and Gentlemen:

 

We have acted as counsel to Rockwell Medical, Inc., a Michigan corporation (the “Company”), in connection with its sale of an aggregate of 4,300,000 shares (the “Shares”) of the Company’s common stock (the “Common Stock”) pursuant to that certain Stock Purchase Agreement, dated March 20, 2013, by and between the purchasers subscribing for Shares pursuant thereto and the Company (the “Purchase Agreement”).  We are furnishing this Opinion Letter to you pursuant to Section 6.3 of the Purchase Agreement.  All capitalized terms used in this opinion letter without definition have the respective meanings given to them in the Purchase Agreement.

 

In rendering the opinions set forth below, we have examined and have relied upon originals or copies (certified or otherwise identified to our satisfaction) of the following documents:

 

(a)                               the Purchase Agreement;

 

(b)                               the form of subscription agreement attached thereto (“Subscription Agreement”);

 

(c)                                the amended and restated articles of incorporation of the Company certified by the Michigan Department of Licensing and Regulatory Affairs;

 

(d)                               the bylaws of the Company;

 

(e)                                good standing certificates issued for the Company and its subsidiary, Rockwell Transportation, Inc. (the “Subsidiary”), by the Michigan Department of Licensing and Regulatory Affairs and by the jurisdictions listed on Schedule I attached hereto;

 

(f)                                 the resolutions adopted by the Board of Directors of the Company on March 19, 2013 authorizing the Purchase Agreement, the Subscription Agreement and the transactions contemplated thereby;

 

California | Illinois | Michigan | Minnesota | North Carolina | Texas | Washington, D.C.

 

 

(g)                                a certificate of the Chief Financial Officer of the Company, on behalf of the Company, dated as of the date hereof (the “Officer’s Certificate”); and

 

(h)                               the Company’s Registration Statement on Form S-3 (no. 333-181003), the final prospectus supplement filed by the Company in connection with the offering on March 20, 2013 and the reports incorporated by reference therein (the “Time of Sale Disclosure Package”).

 

We have also examined such corporate and company records, agreements, documents, and other instruments, and such certificates or comparable documents of public officials and officers of the Company, and have made such inquiries of such officers and representatives of the Company as we have deemed relevant and necessary as a basis for the opinions set forth below.  We have assumed, without investigation, that there has been no relevant change or development between the dates as of which such information was provided and the date of this opinion letter and that the information upon which we have relied is accurate and does not omit disclosures necessary to prevent such information from being misleading.

 

“Applicable Laws” means those laws, rules and regulations (other than securities or blue sky laws and statutes and ordinances, administrative decisions, or other rules and regulations of counties, towns, municipalities and special political subdivisions, or judicial decisions regarding any such laws) that, in our experience, are normally applicable to transactions of the type contemplated by the Purchase Agreement, without our having made any special investigation as to the applicability of any specific law, rule or regulation, and that are not the subject of a specific opinion herein referring expressly to a particular law or laws.  “Applicable Orders” means those orders or decrees of governmental authorities known by us to be applicable to the Company or its Subsidiary, identified in the Officer’s Certificate.

 

The qualification of any opinion or statement herein by the use of the words “to our knowledge” or “known to us,” means that, during the course of representation as described in this Opinion Letter, no information has come to the attention of the lawyers in this firm who have given substantive attention to the Purchase Agreement or the lawyer in our firm who has principal legal responsibility for our representation of the Company, which would give such lawyers current actual knowledge of the existence of facts contradicting the statements so qualified.  Except as expressly set forth herein, we have not undertaken any investigation to determine the existence or absence of such facts, and no inference as to our knowledge concerning such facts should be drawn from the fact of our representation of any party or otherwise.

 

For purposes of this opinion letter, we have assumed, without independent verification: (i) the genuineness of all signatures on all documents; (ii) the authenticity of all documents submitted to us as originals; (iii) the conformity to the originals of all documents submitted to us as copies and the authenticity of the originals of such copies; (iv) the correctness and accuracy of all facts set forth in all certificates, reports and agreements, (v) that all parties to the documents

 

2

 

reviewed by us (other than the Company) have full power and authority to execute, to deliver and to perform their obligations under such documents and under the documents required or permitted to be delivered and performed thereunder, and all such documents have been duly authorized by all necessary action, have been duly executed by such parties, have been duly delivered by such parties and are valid, binding and enforceable obligations of the parties thereto; (vi) the consummation of the transactions contemplated by the Purchase Agreement will not cause or result in a breach of any instrument, agreement or document to which the Company is a party or by which it is, or any of its assets are, bound (except any agreement or other instrument filed or incorporated by reference as an exhibit to the Company’s most recently filed Annual Report on Form 10-K or subsequently filed or incorporated prior to the date hereof as an exhibit to any other report or registration statement filed by the Company with the Commission (each, an “Applicable Contract”), with respect to which our opinion is rendered below); (vii) the conduct of the parties to the Purchase Agreement has complied with any requirement of good faith, fair dealing and conscionability; (vii) there has not been any mutual mistake of fact or misunderstanding, fraud, duress or undue influence; (ix) there are no agreements or understandings among the parties, written or oral, and there is no usage of trade or course or prior dealing among the parties that would, in either case, define, supplement or qualify the terms of the Purchase Agreement; and (x) the Company will obtain all permits and governmental approvals (if any) required in the future, and take all actions similarly required, relevant to the subsequent consummation of the transactions contemplated by the Purchase Agreement.  As to factual matters, we have assumed the truth and accuracy of, and have relied upon, the representations and warranties contained in the Purchase Agreement, excluding representations and warranties constituting legal conclusions covered by this Opinion Letter, and we have not undertaken any independent investigation or verification as to such matters.

 

On the basis of the foregoing, and subject to the qualifications and limitations listed in this Opinion Letter, we are of the opinion that:

 

1.                                      The Company is a corporation validly incorporated, validly existing and in good standing under the Applicable Laws of the State of Michigan.  The Subsidiary is a corporation validly incorporated, validly existing and in good standing under the Applicable Laws of the State of Michigan.

 

2.                                      The Company and the Subsidiary are each in good standing as a foreign corporation and each is duly qualified to do business in the jurisdictions listed opposite their respective names on Schedule I attached hereto.

 

3.                                      The Company has the requisite corporate power and authority under the Applicable Laws of the State of Michigan necessary to (a) own or lease, as the case may be and operate its properties, and to conduct its business as it is described in the Time of Sale Disclosure Package, and (b) to execute and deliver the Purchase Agreement, and to issue, sell and deliver the Shares as contemplated by the Purchase Agreement.

 

3

 

4.                                      The Shares have been duly authorized and, when issued, sold and delivered by the Company to, and paid for by, the Purchasers in accordance with the terms of the Purchase Agreement, will be validly issued, fully paid and nonassessable.

 

5.                                      There are no statutory preemptive rights nor any restrictions upon the voting or transfer with respect to the Shares pursuant to the Company’s restated articles of incorporation, bylaws, the Michigan Business Corporation Act or any Applicable Contract.

 

6.                                      The Purchase Agreement and Subscription Agreement have been duly authorized by all necessary corporate action on the part of the Company, have been duly executed and delivered by the Company and constitute valid and binding agreements of the Company, enforceable against the Company in accordance with the terms thereof.

 

7.                                      The execution and delivery of the Purchase Agreement and the Subscription Agreement by the Company and the issuance and sale by the Company of the Shares and the performance by the Company of obligations under such agreements do not and will not (a) violate any provisions of the restated articles of incorporation or bylaws of the Company, (b) result in any breach or default under (nor constitute any event that with notice, lapse of time or both would result in any breach or default under) any provision of any Applicable Contract, (c) violate any Applicable Laws of the United States or the State of Michigan (other than the rules of FINRA, as to which we express no opinion), or (d) violate any Applicable Order.

 

8.                                      No approval, authorization, consent or order or filing with any U.S. federal or Michigan state court or governmental or regulatory agency or body in the United States having jurisdiction over the Company is required to be obtained or made by the Company for the performance by the Company of its obligations as contemplated by the Purchase Agreement, except for such as have been duly obtained or made, and except for such as may be required under (x) the securities laws of foreign jurisdictions, or (y) the bylaws or rules and regulations of FINRA, as to which we express no opinion.

 

Our opinions are subject to the following assumptions and qualifications:

 

A.                                    our opinions with respect to the good standing of the Company and its Subsidiary are based solely upon certificates of the applicable state authorities.

 

B.                                    the effect of applicable bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights and remedies of creditors generally, including judicially developed doctrines in this area, such as substantive consolidation of entities and equitable subordination;

 

C.                                    the effect of general principles of equity, whether applied by a court of law or equity;

 

4

 

D.                                    the effect of generally applicable rules of law that:

 

(i)                                     limit or affect the enforcement of provisions of a contract that purport to waive, or to require waiver of, the obligations of good faith, fair dealing, diligence and reasonableness;

 

(ii)                                  provide that forum selection clauses in contracts are not necessarily binding on the court(s) in the forum selected;

 

(iii)                               limit the availability of a remedy under certain circumstances where another remedy has been elected;

 

(iv)                              limit the enforceability of provisions releasing, exculpating or exempting a party from, or requiring indemnification of a party for, liability for its own action or inaction, to the extent the action or inaction involves gross negligence, recklessness, willful misconduct, or unlawful conduct;

 

(v)                                 may, where less than all of a contract may be unenforceable, limit the enforceability of the balance of the contract to circumstances in which the unenforceable portion is not an essential part of the agreed exchange;

 

(vi)                              govern and afford judicial discretion regarding the determination of damages and entitlement to attorneys’ fees and other costs; and

 

(vii)                           may permit a party that has materially failed to render or offer performance required by the contract to cure that failure unless (x) permitting a cure would unreasonably hinder the aggrieved party from making substitute arrangements for performance, or (y) it was important in the circumstances to the aggrieved party that performance occur by the date stated in the contract;

 

E.                                     we express no opinion as to the effect on the opinions expressed herein of (i) the compliance or non-compliance of any party (other than the Company to the extent expressly set forth herein) to the Purchase Agreement or Subscription Agreement with any state, federal or other laws or regulations applicable to them or (ii) the legal or regulatory status or the nature of the business of any party (other than the Company to the extent expressly set forth herein);

 

F.                                      we express no opinion as to the enforceability of any rights to contribution or indemnification provided for in the Purchase Agreement that are violative of the public policy underlying any law, rule or regulation (including any federal or state securities law, rule or regulation);

 

5

 

G.                                    unless explicitly addressed in one or more of our opinions above, we express no opinion as to the application of any of the following laws, regulations or other governmental requirements or legal issues:

 

(i)                                     securities laws and regulations, and laws and regulations relating to commodity (and other) futures and indices and other similar instruments and laws and regulations relating to margin regulations;

 

(ii)                                  pension and employee benefit laws and regulations;

 

(iv)                              laws and regulations concerning filing and notice requirements other than requirements applicable to articles of incorporation-related documents;

 

(v)                                 compliance with fiduciary duty requirements;

 

(vii)                           tax laws and regulations;

 

(viii)                        patent, trademark and copyright, and other intellectual property laws and regulations;

 

(x)                                 health and safety laws and regulations;

 

(xi)                              labor laws and regulations;

 

(xii)                           laws, regulations and policies concerning (x) national and local emergency, (y) possible judicial deference to acts of sovereign states, and (z) criminal and civil forfeiture laws; and

 

(xiii)                        statutes of general application to the extent they provide for criminal prosecution (e.g., mail fraud and wire fraud statutes); and

 

H.                                   we express no opinion as to the enforceability of any provisions of the Purchase Agreement or Subscription Agreement regarding (a) venue selection, (b) indemnification for liabilities arising under securities laws, or (c) liquidated damages or any other provision that imposes (or is deemed or construed to impose) a penalty or punitive damages.

 

This Opinion Letter (a) has been furnished to you at your request, and we consider it to be a confidential communication, which may not be furnished, reproduced, distributed or disclosed to anyone without our prior written consent, (b) is rendered solely for your information and assistance in connection with the Purchase Agreement and may not be relied upon by any other person or for any other purpose without our prior written consent, provided that the parties to the placement agent agreement, dated March 20, 2013, among the Company and the placement agents acting as such in connection with the sale of the Shares, shall be entitled to rely

 

6

 

upon this Opinion Letter as if they were addressees hereof, (c) is rendered as of the date of this Opinion Letter, and we undertake no, and disclaim any, obligation to advise you of any changes or any new developments which might affect any matters or opinions set forth in this Opinion Letter, and (d) is limited to the matters stated in this Opinion Letter and no opinions may be inferred or implied beyond the matters expressly stated in this Opinion Letter.

 

7

 

SCHEDULE I

 

	
Company
    	
 
    	
Foreign Jurisdiction
    
	
 
    	
 
    	
 
    
	
Rockwell Medical, Inc.
    	
 
    	
Texas
    
	
 
    	
 
    	
South Carolina
    
	
 
    	
 
    	
Iowa
    
	
 
    	
 
    	
 
    
	
Rockwell Transportation, Inc.
    	
 
    	
Texas
    
	
 
    	
 
    	
South Carolina

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}]]