Document:

exv10w2

Exhibit 10.2

	 	 	 

	

	 	> News Release

Newell Rubbermaid Announces

Capital Structure Optimization Plan

Series
of Transactions Will Simplify Capital Structure and Reduce Interest Expense

ATLANTA, August 2, 2010 — Newell Rubbermaid (NYSE: NWL) today announced a series of
transactions designed to simplify its capital structure and reduce interest expense. The capital
structure optimization plan includes the following components:

	 	–	 	Issuance of $550 million of new senior notes due 2020;
	 
	 	–	 	Repurchase of $500 million of shares through an Accelerated Stock Buyback
program (“ASB”) with Goldman, Sachs & Co.; and
	 
	 	–	 	Cash tender offer for any and all of the company’s outstanding 10.60% notes
due 2019.

The ASB and cash tender offer will be funded by a combination of existing cash on hand, short-term
borrowings and proceeds from the sale of the new senior notes.

In addition, Newell Rubbermaid intends, subject to market conditions, to launch later this quarter
an offer to exchange common stock and cash for any and all of its 5.50% convertible senior notes
due 2014. To the extent these notes are exchanged, the company intends to settle, for cash, the
hedge transactions which were entered into concurrent with the issuance of the convertible notes.

Assuming 32.3 million shares are purchased in the ASB, all the notes due 2019 are tendered in the
tender offer and all the convertible notes are tendered in the exchange offer, the net result of
the transactions making up the capital structure optimization plan will be the refinancing of
approximately $600 million in long term debt at lower interest rates, a net increase of
approximately 8 million shares of outstanding common stock, and the elimination of potential future
share count dilution resulting from the convertible notes and hedge transactions.

If completed as planned, the series of transactions is not expected to have a material impact on
either the company’s leverage ratio or the company’s recently announced improved guidance for 2010
normalized earnings. However, it is expected to result in a cumulative pre-tax charge to GAAP
earnings in 2010 of up to $200 million. The capital structure optimization plan is expected to be
accretive to future periods’ GAAP and normalized earnings per share.

“The series of transactions we announced today will simplify our capital structure, lower our
interest costs and reduce potential future dilution from the convertible notes. The convertible
note financing played an important role helping us refinance our debt in the middle of last year’s
credit crisis, but we believe it is an appropriate time to revisit it and our overall capital
structure. This has been one of our top priorities for 2010,” said Mark Ketchum, President and
Chief Executive Officer of Newell Rubbermaid. “If you are as confident about Newell Rubbermaid’s
future prospects and the potential for long term appreciation in the value of NWL stock as we are,
then this initiative is clearly a positive. We expect the transactions to be accretive to EPS in
future

3 Glenlake Parkway | Atlanta. GA 30328 | Phone +1 (770) 418-7000 | www.newellrubbermaid.com | NYSE: NWL

 

 

	 	 	 

	

	 	> News Release

periods and to eliminate confusion and uncertainty regarding potential future dilution from
the convertible notes, allowing investors to focus on our business and on our long term strategy
for creating shareholder value through Brands That Matter.”

This press release is for informational purposes only and is not an offer to buy or sell or the
solicitation of an offer to sell or buy any securities nor shall there be any sale of such
securities in any state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such state. The offering of the new
senior notes is being made only by means of a prospectus and related prospectus supplement included
as part of an effective shelf registration statement previously filed with the Securities and
Exchange Commission. Copies of the prospectus and related prospectus supplement may be obtained
from Newell Rubbermaid at 3 Glenlake Parkway, Atlanta, GA 30328. The cash tender offer for the
outstanding notes due 2019 is being made only by means of an offer to purchase and related letter
of transmittal. The proposed exchange offer, if commenced, will be made only by means of an offer
to purchase and a related letter of transmittal, and the securities offered therein will not be
registered under the Securities Act and may not be offered or sold in the United States absent
registration or an exemption from applicable registration requirements. Newell Rubbermaid does not
make any recommendations as to whether holders should tender their securities in the cash tender
offer or the proposed exchange offer.

All statements in this press release that are not statements of historical fact are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based on the current beliefs and expectations of Newell Rubbermaid’s management and
are subject to significant risks and uncertainties. Actual results could differ materially from
those expressed in or implied by the forward-looking statements contained in this release because
of a variety of factors, including conditions to, or changes in the timing of, proposed
transactions in the company’s capital structure optimization plan, whether the proposed exchange
offer is commenced, levels of noteholder participation in the cash tender offer and the proposed
exchange offer, changes in the securities markets’ conditions, particularly the markets for debt
securities and the market for Newell Rubbermaid’s common stock and other factors identified in
documents filed by Newell Rubbermaid with the Securities and Exchange Commission.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial
products with 2009 sales of approximately $5.6 billion and a strong portfolio of brands, including
Rubbermaid®, Sharpie®, Graco®, Calphalon®,
Irwin®, Lenox®, Levolor®, Paper Mate®,
Dymo®, Waterman®, Parker®, Goody®, Technical
ConceptsTM and Aprica®.

This press release and additional information about Newell Rubbermaid are available on the
company’s Web site, www.newellrubbermaid.com.

	 	 	 

	Contacts:
	 	 
	Nancy O’Donnell

	 	David Doolittle
	Vice President, Investor Relations

	 	Vice President, Corporate Communications
	+1 (770) 418-7723

	 	+1 (770) 418-7519

3 Glenlake Parkway | Atlanta. GA 30328 | Phone +1 (770) 418-7000 | www.newellrubbermaid.com | NYSE: NWLexv10w1

Exhibit 10.1

PROMISSORY NOTE

	 	 	 

	$525,000

	 	July 29, 2010

FOR VALUE RECEIVED, the undersigned, Emisphere Technologies, Inc., a Delaware corporation
(“Maker”), unconditionally promises to pay to the order of MHR Institutional Partners IIA
LP and MHR Institutional Partners II LP (together, the “Creditor”), the principal
sum of five hundred twenty-five thousand dollars ($525,000), with the entire principal balance due
and payable on October 27, 2010 (the “Maturity Date”). The Maturity Date is subject to adjustment
as set forth below. The obligations under this Note are secured by a security interest in
substantially all the assets of the Maker pursuant to a Pledge and Security Agreement, dated as of
September 26, 2005, as amended to date (the “Security Agreement”), other than the Bridge Loan
Excluded Collateral, as such term is defined in the Security Agreement.

     Except as otherwise provided herein, the unpaid principal balance of this promissory note (the
“Note”) outstanding from time to time shall bear interest at a rate of fifteen percent (15%) per
annum. Interest and fees shall be calculated on the basis of a 360-day year times the actual
number of days elapsed.

     The unpaid principal amount of this Note and any interest thereon may be prepaid by Maker at
any time in whole or from time to time in part. The unpaid principal amount of this Note and
interest accrued thereon shall be paid in its entirety and the Maturity Date correspondingly
accelerated to the date that is two (2) Business Days (as hereinafter defined) following the
receipt, from and after the date hereof by Maker in cash of an aggregate of at least $1,000,000 of
proceeds from (i) any debt or equity financing by the Maker, (ii) licensing or royalty or similar
fees in connection with any new or existing business arrangement between the Maker and any third
parties, or (iii) any other payments received by the Maker from third parties for whatever other
reason. As used herein, “Business Day” means any day that is not a Saturday, a Sunday or a day on
which banks are required or permitted to be closed in the State of New York. After the Maturity
Date (whether by acceleration after default or otherwise), interest shall be payable on the unpaid
principal balance from time to time outstanding at a rate equal to eighteen percent (18%) per
annum, calculated on the basis of a 360-day year times the actual number of days elapsed, until
paid in full. Creditor may, at its option, apply the amount of any payment of principal or
interest on account of this Note as consideration for the purchase of any securities that may, from
time to time, be issued by the Maker to the Creditor for value.

     All payments shall first be applied to any interest then due, with the balance remaining
applied to principal. Notwithstanding any provision contained herein or contained in any other
instrument or agreement now or hereafter executed in connection with this Note, the maximum amount
of interest and other charges in the nature thereof contracted for, or payable hereunder or
thereunder, shall not exceed the maximum amount which may be lawfully contracted for, charged and
received in this transaction, all as determined by the final judgment of a court of competent
jurisdiction, including all appeals therefrom, and in the event the interest rate is determined to
be unlawful, such interest rate shall be computed at the highest rate permitted by applicable law.
To the extent any interest received by Creditor exceeds the maximum amount

 

 

permitted, such payment shall be credited to principal, and any excess remaining after full
payment of principal shall be refunded to Maker. The Maker agrees to pay on demand all costs and
expenses incurred by the holder hereof, including, without limitation, all reasonable attorneys’
fees and all court costs, for the collection and enforcement of this Note and the indebtedness
evidenced hereby. If the Maturity Date is a day other than a Business Day, the maturity thereof
shall be extended to the next succeeding Business Day.

     All payments of principal, interest, fees and other amounts due hereunder shall be made by the
Maker in U.S. Dollars by wire transfer to the account designated by the Creditor or by any other
method approved in advance in writing by the Creditor.

     Notwithstanding anything to the contrary contained herein, this Note shall become immediately
due and payable upon the occurrence of (and the Maturity Date shall be correspondingly accelerated
to the date of such occurrence) any of the following:

     (i) (A) A court enters a decree or order for relief with respect to the Maker in an
involuntary case under the U.S. Bankruptcy Code, which decree or order is not stayed or other
similar relief is not granted under any applicable federal or state law; or (B) the continuance of
any of the following events for 45 days unless dismissed, bonded or discharged: (x) an involuntary
case is commenced against the Maker, under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect; or (y) a decree or order of a court for the appointment of a
receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over
the Maker, or over all or a substantial part of its property, is entered; or (z) a receiver,
trustee or other custodian is appointed without the consent of the Maker, for all or a substantial
part of the property of the Maker;

     (ii) (A) The Maker commences a voluntary case under the U.S. Bankruptcy Code, or consents to
the entry of an order for relief in an involuntary case or to the conversion of an involuntary case
to a voluntary case under any such law or consents to the appointment of or taking possession by a
receiver, trustee or other custodian for all or a substantial part of its property; or (B) the
Maker makes any assignment for the benefit of creditors; or (C) the Board of Directors of the Maker
adopts any resolution or otherwise authorizes action to approve any of the actions referred to in
this paragraph; or

     (iii) (A) Individuals who, as of the date of this Note, constitute the Board of Directors
(the “Board”) of the Maker (the “Incumbent Directors”) cease for any reason to constitute at least
a majority of the Board, provided that any person becoming a director subsequent to the date of
this Note whose election or nomination for election was approved by a vote of a majority of the
Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no
individual initially elected or nominated as a director of the Maker as a result of an actual or
threatened election contest with respect to directors or as a result of any other actual or
threatened solicitation of proxies or consents by or on behalf of any person other than the Board
shall be deemed to be an Incumbent Director; (B) any “person” (as such term is defined in Section
3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) other than the
Creditor and its affiliates becomes a “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Maker representing 50% or more of the
combined voting power of the Maker’s then outstanding securities eligible to vote generally

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in the election of directors; and (C) the Maker sells or otherwise disposes of all or a
substantial part of its assets in one transaction or in a series of related transactions or ceases
to conduct all or a substantial part of its business as now conducted, or merges or consolidates
with any other person or entity without the prior written consent of the Creditor.

     The obligations of the Maker to make the payments provided for in this Note are absolute and
unconditional and not subject to any defense, set-off, counterclaim, rescission, recoupment or
adjustment whatsoever. The Maker hereby: (a) waives presentment, demand, protest,
suretyship defenses and defenses in the nature thereof; (b) waives any defenses based upon and
specifically assents to any and all extensions and postponements of the time for payment, changes
in terms and conditions and all other indulgences and forbearances which may be granted by the
holder to any party now or hereafter liable hereunder; and (c) agrees to be bound by all of the
terms contained in this Note.

     ALL RIGHTS AND OBLIGATIONS HEREUNDER SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
U.S.A. This Note is executed as, and shall have the effect of, a sealed instrument.

     In the event any one or more of the provisions of this Note shall for any reason be held to be
invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any
one or more of the provisions of this Note operates to invalidate this Note, then and in either of
those events, such provision or provisions only shall be deemed null and void and shall not affect
any other provision of this Note, and the remaining provisions of this Note shall remain operative
and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby.

     This Note may not be amended, supplemented, modified or terminated orally, but only by an
agreement in writing signed by the Maker and the Creditor. This Note shall inure to the benefit of
and be binding upon the successors and permitted assigns of the parties hereto. The Maker may not
assign any of its rights or obligations under this Note without the prior written consent of the
Creditor. The Creditor may assign all or a portion of its rights or obligations under this Note
without the prior written consent of the Maker.

     For purposes of any action or proceeding involving this Note, Maker hereby expressly consents
to the exclusive jurisdiction of all federal and state courts located in the State of New York and
consents that any order, process, notice of motion or other application to or by any of said courts
or a judge thereof may be served within or without such court’s jurisdiction by registered mail or
by personal service, provided a reasonable time for appearance is allowed (but not less than the
time otherwise afforded by any law or rule), and waives any right to contest the appropriateness of
any action brought in any such court based upon lack of personal jurisdiction, improper venue or
forum non conveniens. THE MAKER HEREBY WAIVES TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH
RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS NOTE OR ANY INSTRUMENT OR DOCUMENT DELIVERED
PURSUANT TO THIS NOTE, OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT
THEREOF, OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING, BETWEEN THE MAKER AND THE CREDITOR.

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     No delay or omission on the part of the holder in exercising any right hereunder (or any right
under any instrument or agreement executed in connection herewith or which is given or may be given
to secure the indebtedness evidenced hereby) shall operate as a waiver of such right, or of any
other right, of such holder, nor shall any delay, omission or waiver on any one occasion be deemed
to be a bar to, or waiver of, the same or of any other right on any future occasion.

     All notices and other communications given to any party hereto pursuant to this Note shall be
in writing and shall be delivered by hand, fax or email (and in the case of fax or email, receipt
confirmed immediately via telephone), or mailed first class postage prepaid, registered or
certified mail, addressed as follows:

(a) If to the Maker, to:

Emisphere Technologies, Inc.

240 Cedar Knolls Road

Suite 200

Cedar Knolls, NJ 07927

Attention: Chief Executive Officer

Phone: (973) 532-8000

Fax: (973) 532-8115

Email: mnovinski@emisphere.com

with a copy to:

Brown Rudnick LLP

One Financial Center

Boston, MA 02111

Attn: Timothy C. Maguire, Esq.

Phone: (617) 856-8377

Fax: (617) 289-0413

Email: tmaguire@brownrudnick.com

(b) If to the Creditor, to:

MHR Institutional Partners IIA LP

40 West 57th Street, 24th Floor

New York, NY 10019

Fax number: (212) 262-9356

Attention: Hal Goldstein

Phone: (212) 262-0005

Fax: (212) 262-9356

Email: hgoldstein@mhrfund.com

with a copy to:

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Dechert LLP

Avenue of the Americas

New York, NY 10036

Attn: Charles Weissman, Esq.

Derek Winokur, Esq

Phone: (212) 698-3500

Fax: (212) 698-3599

Email: Charles.Weissman@Dechert.com

Derek.Winokur@Dechert.com

     Each such notice or other communication shall for all purposes be treated as being effective
or having been given when delivered, if delivered personally, by e-mail or facsimile with
confirmation of receipt or if by overnight courier or, if sent by mail, upon actual receipt.

[Signature Page Follows]

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     WITNESS the hand and seal of the undersigned on the day and year first above written.

	 	 	 	 	 
	 	MAKER: EMISPHERE TECHNOLOGIES, INC.

 	 
	 	By:  	/s/ Michael R. Garone	 
	 	 	Name:  	Michael R. Garone	 
	 	 	Title:  	Chief Financial Officer	 
	 

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