AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 29, 2000
REGISTRATION NO.
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
--------------------
INTERNATIONAL FLAVORS & FRAGRANCES INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
NEW YORK 13-1432060
------------------------------- -------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
521 WEST 57TH STREET, NEW YORK, N.Y. 10019
--------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 765-5500
STEPHEN A. BLOCK, SENIOR VICE-PRESIDENT, GENERAL COUNSEL & SECRETARY
INTERNATIONAL FLAVORS & FRAGRANCES INC.
521 WEST 57TH STREET, NEW YORK, N.Y. 10019--(212) 765-5500
-------------------------------------------------------------------------------
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
COPY TO:
GEORGE ROWE, JR.
FULTON, ROWE, HART & COON
ONE ROCKEFELLER PLAZA, NEW YORK, N.Y. 10020
--------------------
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: As provided in
Registrant's non-employee director stock option plan and its stock award and
incentive plan, and on October 1 of each year with respect to its annual grants
of stock to non-employee directors.
IF THE ONLY SECURITIES BEING REGISTERED ON THIS FORM ARE TO BE OFFERED
PURSUANT TO DIVIDEND OR INTEREST REINVESTMENT PLANS, PLEASE CHECK THE FOLLOWING
BOX.[ ]
IF ANY OF THE SECURITIES BEING REGISTERED ON THIS FORM ARE BEING OFFERED ON
A DELAYED OR CONTINUOUS BASIS PURSUANT TO RULE 415 UNDER THE SECURITIES ACT OF
1933, OTHER THAN SECURITIES OFFERED ONLY IN CONNECTION WITH DIVIDEND OR INTEREST
REINVESTMENT PLANS, CHECK THE FOLLOWING BOX. [X]
IF THIS FORM IS FILED TO REGISTER ADDITIONAL SECURITIES FOR AN OFFERING
PURSUANT TO RULE 462(B) UNDER THE SECURITIES ACT, PLEASE CHECK THE FOLLOWING BOX
AND LIST THE SECURITIES ACT REGISTRATION STATEMENT NUMBER OF THE EARLIER
EFFECTIVE REGISTRATION STATEMENT FOR THE SAME OFFERING.[ ]
IF THIS FORM IS A POST-EFFECTIVE AMENDMENT FILED PURSUANT TO RULE 462(C)
UNDER THE SECURITIES ACT, CHECK THE FOLLOWING BOX AND LIST THE SECURITIES ACT
REGISTRATION STATEMENT NUMBER OF THE EARLIER EFFECTIVE REGISTRATION STATEMENT
FOR THE SAME OFFERING.[ ]
IF DELIVERY OF THE PROSPECTUS IS EXPECTED TO BE MADE PURSUANT TO RULE 434,
PLEASE CHECK THE FOLLOWING BOX.[ ]
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
=============================================================================================================
PROPOSED PROPOSED
AMOUNT MAXIMUM MAXIMUM AMOUNT OF
TITLE OF EACH CLASS OF TO BE OFFERING AGGREGATE REGISTRATION
SECURITIES TO BE REGISTERED REGISTERED PRICE PER UNIT OFFERING PRICE FEE
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock, $.12 1/2 par value, issued
and/or to be issued for employee
stock options and other stock
awards ................................. 5,050,000 Shs. $34.00 $107,272,140* $28,320
=============================================================================================================
</TABLE>
* Calculated as follows: (i) 100,000 shares available for non-employee
director stock awards at an assumed aggregate price of $1,872,000 (based
upon the average of the high and low prices reported in the consolidated
reporting system as of September 26, 2000); (ii) 962,000 shares covered by
outstanding stock options at an aggregate option exercise price of
$30,744,780; and (iii) 3,988,000 shares available for stock option grants
and other stock awards at an assumed aggregate price of $74,655,360 (based
upon the average of the high and low prices reported in the consolidated
reporting system as of September 26, 2000).
--------------------
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A),
MAY DETERMINE.
================================================================================
<PAGE>
SUBJECT TO COMPLETION, DATED SEPTEMBER 29, 2000
PROSPECTUS
5,050,000 SHARES
COMMON STOCK
($.12 1/2 PAR VALUE)
INTERNATIONAL FLAVORS & FRAGRANCES INC.
521 WEST 57TH STREET
NEW YORK, NEW YORK 10019
212-765-5500
------------------------
This Prospectus relates to 5,050,000 shares of Common Stock, $.12 1/2 par
value, of International Flavors & Fragrances Inc. ("IFF"). These shares may be
offered as set forth under "Employee Stock" to non-employee directors, officers
and key employees of IFF and its subsidiaries. These shares may also be offered
as set forth under "Selling Shareholders."
These shares may be sold from time to time at public or private sale at
market prices then prevailing on the New York Stock Exchange. In the case of
sales through brokers, normal brokerage commissions will be paid. The exercise
prices provided for in the options outstanding granted to the date of this
Prospectus range from $25.31 to $34.00 per share. No awards other than stock
options have been granted to the date of this Prospectus.
Some of the persons who may acquire shares as contemplated by this
Prospectus may be deemed to be "underwriters," under the Securities Act of 1933,
as amended. If those persons pay any brokerage commissions upon any resale of
the shares, the commissions may be deemed to be underwriting discounts and
commissions, for the purposes of the Act.
The Common Stock of IFF is traded on the New York Stock Exchange under the
symbol "IFF". On September 26, 2000, the closing price of Common Stock was
$17.44 per share.
IFF shall pay all expenses in connection with the issuance or distribution
of the shares of Common Stock to which this Prospectus relates, except brokers'
fees and fees and expenses of counsel to the Selling Shareholders.
------------------------
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF
THESE SECURITIES OR PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
------------------------
THE DATE OF THIS PROSPECTUS IS SEPTEMBER __, 2000
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY
NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN
OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY
THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
<PAGE>
TABLE OF CONTENTS
PAGE
----
About This Prospectus .............................................. 3
Where You Can Find More Information ................................ 3
IFF's Business ..................................................... 5
Employee Stock ..................................................... 5
2000 Stock Option Plan for Non-Employee Directors ................ 5
2000 Stock Award and Incentive Plan .............................. 8
Director Annual Stock Grants ..................................... 17
Selling Shareholders ............................................... 17
Legal Matters ...................................................... 18
Experts ............................................................ 18
2
<PAGE>
ABOUT THIS PROSPECTUS
In this prospectus, International Flavors & Fragrances Inc. and its
subsidiaries may be referred to as "IFF", the "Company" or "we". This prospectus
is part of a registration statement that we filed with the SEC using a "shelf"
registration process. Under this shelf process, we may, over a period of time,
offer the right to purchase Common Stock described in this prospectus in one or
more offerings under the 2000 Stock Option Plan for Non-Employee Directors, the
2000 Stock Award and Incentive Plan and the annual grant of stock awards to
non-employee directors. The selling shareholders may sell the stock so acquired.
This prospectus provides you with a description of the offerings and proposed
sales. You should read this prospectus together with additional information
described under the heading WHERE YOU CAN FIND MORE INFORMATION.
This Prospectus Applies to the Following Shares of Common Stock
o 18,000 shares which may be issued upon the exercise of options which
have been granted under the IFF's 2000 Stock Option Plan for
Non-Employee Directors and 432,000 shares which are available for the
grant of options under 2000 Directors' Plan.
o 944,000 shares which may be issued upon the exercise of options which
have been granted under IFF's 2000 Stock Award and Incentive Plan and
3,556,000 shares which are available for the grant of options or the
grant of awards under the 2000 Award Plan, and
o 100,000 shares which may be issued upon the annual grant of 1,000
shares to each non-employee director of IFF.
This prospectus applies to these shares after issuance and upon their sale
or other transfer because it might be deemed that some of the persons who have
purchased or may purchase these shares upon exercise of options or otherwise
acquired these shares may have done so or may do so with a view to distribution
or may be "directly or indirectly controlling the issuer" within the meaning of
Section 2(11) of the 1933 Act and may effectuate sales or other transfers of
such shares under circumstances requiring that delivery of such shares be
preceded by a Prospectus.
WHERE YOU CAN FIND MORE INFORMATION
We have filed annual, quarterly and special reports, proxy statements and
other information with the SEC. Our SEC filings are available to the public over
the Internet at the SEC's web site at http://www.sec.gov. You may read and copy
any document we file at the SEC's public reference rooms in Washington, D.C.,
New York, New York, and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330
for further information on the public reference rooms.
IFF has filed with the SEC a registration statement under the Securities
Act of 1933 to register the securities offered by this prospectus. This
prospectus is only part of the registration statement. It does not contain all
of the information in the registration statement and its exhibits because the
SEC allows certain parts to be omitted. Statements in this prospectus about
documents filed as an exhibit to the registration statement or otherwise with
the SEC are only summary statements and may not contain all the information in
its filed document that may be important to you. For further information about
us, and the securities offered under this prospectus, you should read the
registration statement, including its exhibits and the documents incorporated
into it by reference. All of these documents can be examined at the SEC's
principal office, 450 Fifth Street, N.W., Washington, D.C. 20549, or copies can
be obtained from the SEC at that office upon payment of the required fees.
The SEC allows us to "incorporate by reference" the information we file
with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
an important part of this prospectus. Information that we file later with the
SEC will automatically update
3
<PAGE>
and supersede this information. We incorporate by reference the documents listed
below and any future filings made with the SEC under Sections 13(a), 13(c), 14
or 15(d) of the Securities Exchange Act of 1934 until we sell all of the
securities offered under this prospectus.
1. Annual Report on Form 10-K for the fiscal year ended December 31,
1999;
2. Reports on Form 8-K dated March 22, 2000 and September 27, 2000;
3. Quarterly Reports on Form 10-Q for the quarters ended March 31, 2000
and June 30, 2000; and
4. The proxy statement filed for the annual meeting of shareholders held
on May 18, 2000.
All of the above documents shall be deemed incorporated in this prospectus
by reference from the date they are filed with the SEC. You should rely only on
the information incorporated by reference or provided in this prospectus or any
prospectus supplement. We have not authorized anyone else to provide you with
different information. We are not making any offer of these securities in any
state where the offer is not permitted. You should not assume that the
information in this prospectus is accurate as of any date other than the date on
the front of this prospectus.
You may request a copy of these filings at no cost, by writing or
telephoning us at the following address:
Stephen A. Block, Senior Vice-President, General Counsel and Secretary,
International Flavors & Fragrances Inc.,
521 West 57th Street,
New York, New York 10019,
Telephone 212-765-5500.
4
<PAGE>
IFF'S BUSINESS
IFF, incorporated in New York in 1909, is a leading creator and
manufacturer of flavor and fragrance products used by other manufacturers to
impart or improve flavor or fragrance in a wide variety of consumer products.
IFF sells fragrance products principally to manufacturers of perfumes,
cosmetics, soaps and detergents. IFF sells flavor products principally to
manufacturers of prepared foods, beverages, dairy foods, pharmaceuticals and
confectionery products.
EMPLOYEE STOCK
2000 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS
BACKGROUND
IFF's Board of Directors approved the 2000 Stock Option Plan for
Non-Employee Directors (the "2000 Directors' Plan") on February 8, 2000. IFF
shareholders approved the 2000 Directors' Plan on May 18, 2000. The 2000
Directors' Plan authorizes the grant of stock options to non-employee directors
of IFF covering 450,000 shares of IFF's Common Stock.
PURPOSE OF PLAN
The purpose of the 2000 Directors' Plan is to attract and retain the
services of qualified independent directors of IFF who are not employees of IFF
and provide additional incentive for such directors to work for the best
interests of IFF and its shareholders.
OPTION GRANTS
Pursuant to the Plan, IFF automatically grants options for 3,000 shares of
Common Stock to each non-employee director in each year commencing 2000 and
ending in 2009. Any members elected to the Board by the shareholders on the date
of grant of an option also receive an option. Annual grants are made on the date
of the Annual Meeting of Shareholders of IFF in each year. The shares subject to
any options which expire or terminate without being exercised in full, or which
are voluntarily surrendered for cancellation, will be available for the grant of
new options under the Plan.
SUMMARY OF BASIC TERMS
The option price is the fair market value of the stock on the date of
grant. No option may be for longer than ten years. IFF may not grant options
after the 2009 Annual Meeting of Shareholders, although options may extend
beyond that date. A director may purchase up to one-third of the shares covered
by an option at any time after 24 months from the date of grant, up to
two-thirds at any time after 36 months; and all the shares at any time after 48
months from that date. Upon exercise of an option, the director may pay for the
option stock with Common Stock of IFF, provided the director has held the Common
Stock for at least six months or such longer period as determined by the Board
of Directors.
WHEN OPTIONS ARE EXERCISABLE
Each option is exercisable as follows:
o by an active director at any time until the 10th anniversary after the
date of grant;
o by a director at or after age 65 if he or she resigns, has not been
reelected, becomes totally disabled or retires -- until its expiration
date as to the balance of the shares the director was entitled to
purchase at the date of his or her resignation, non-election,
disability or retirement;
5
<PAGE>
o by a director prior to age 65 if he or she resigns, has not been
reelected, becomes totally disabled or retires -- within 3 months
thereafter as to the balance of the shares the director was entitled
to purchase at the date of his or her resignation, non-election,
disability or retirement; and
o in the event of a director's death either while a director or after
having ceased to be a director, by his or her legal representatives,
distributees or legatees -- within 12 months after his or her death or
such longer period as the Stock Option and Compensation Committee may
permit with respect to any shares the director was entitled to
purchase under the option at the date of his or her death. But in the
case of the director's death before the option fully becomes
exercisable, his or her legal representatives, legatees or designated
beneficiary may exercise his or her option for a pro-rata portion of
the total number of shares subject to the option.
In no event may the director exercise an option more than 120 months after
the date of grant.
The director may designate a beneficiary who may exercise the option in
lieu of the director under the circumstances stated above. The director may
designate as a beneficiary any family member or members, any trust for the
benefit of any family member or members, or other entity in which any family
member or members have a 50% interest.
Except as provided above or otherwise permitted by the Committee, a
director may not assign or transfer an option in any way. If a director attempts
to make any prohibited assignment or transfer, the unexercised portion of the
option becomes null and void.
STOCK SPLITS AND OTHER CORPORATE EVENTS
The 2000 Directors' Plan provides that each option agreement shall contain
an anti-dilution provision for adjustment of the number of shares and the price
per share to take account of any stock splits, stock dividends or similar
transactions.
ADMINISTRATION
The 2000 Directors' Plan is intended to be self-operative to the maximum
extent consistent with prudent business practice. Otherwise, the Board of
Directors or the Stock Option and Compensation Committee of the Board of
Directors shall administer the 2000 Directors' Plan by majority vote. The
Committee is comprised of Messrs. Peter A. Georgescu, Henry P. van Ameringen,
and William D. Van Dyke, III, and its address is c/o International Flavors &
Fragrances Inc., 521 West 57th Street, New York, New York 10019. The members of
the Committee are elected annually by a vote of the Board.
AMENDMENT AND TERMINATION
The 2000 Directors' Plan also provides that the Board may discontinue or
amend the 2000 Directors' Plan in any respect, without shareholder consent, with
the following exception. Shareholder approval must be obtained if it is a
requirement of any federal or state law or regulation or the rules of any stock
exchange on which the Common Stock may be listed. It must also be obtained if
Board action requires it. However, no such action may materially impair the
rights of an optionee under any option previously granted to him or her without
his or her consent.
ERISA
IFF is not aware of any provision of the Employee Retirement Income
Security Act of 1974 to which the 2000 Directors' Plan is subject.
6
<PAGE>
USE OF PROCEEDS
IFF intends to use for general corporate purposes the net proceeds which
may be received from the sale of shares pursuant to the exercise of stock
options under the 2000 Directors' Plan.
OUTSTANDING AWARDS AND STOCK OPTIONS
At September 21, 2000, six non-employee directors held options under the
2000 Directors' Plan to purchase an aggregate of 18,000 shares of Common Stock
at an option price of $32.19. All these options expire ten years after the date
of grant. Additional information with respect to outstanding options held by
non-employee directors of IFF is set forth in its Proxy Statement for the 2000
Annual Meeting of Shareholders which is incorporated by reference in this
Prospectus.
TAX CONSEQUENCES
Stock options granted to non-employee directors under the 2000 Directors'
Plan are not intended to qualify as incentive stock options under Section 422 of
the Internal Revenue Code of 1986. IFF has been advised by its counsel, Messrs.
Fulton, Rowe, Hart & Coon, of the following tax consequences under the
provisions of the Internal Revenue Code if shares of Common Stock of IFF are
issued to a director upon exercise of an option.
o He or she will not realize any income at the time of grant of the
option.
o He or she upon exercise of the option will realize as income, an
amount equal to the excess of the market price of the shares exercised
on the date of exercise over their option price. This amount will be
taxable at ordinary income rates in the year of exercise. The amount
of this excess will be deductible as compensation for federal income
tax purposes by IFF in the year of exercise.
o He or she may also add the amount of income described in the prior
clause to his or her tax basis in the shares for purpose of computing
any subsequent capital gain or loss.
o The income realized upon exercise of a non-qualified option will not
be subject to the alternative minimum tax.
o Any gain or loss upon a subsequent disposition of the option shares
will be treated under the provisions of the Code applicable to capital
gains and losses.
o IFF will be entitled to a tax deduction in an amount equal to the
total amount of ordinary income the director realizes.
The foregoing summary does not discuss the effect of state and local taxes.
7
<PAGE>
2000 STOCK AWARD AND INCENTIVE PLAN
BACKGROUND
The Board approved the 2000 Stock Award and Incentive Plan (the "2000 Award
Plan") on March 9, 2000. IFF shareholders approved the 2000 Award Plan on May
18, 2000. The 2000 Award Plan authorizes a broad range of awards (collectively
"Awards") including
o the grant of annual incentive awards settleable in cash or in shares
of Common Stock,
o stock options,
o stock appreciation rights ("SARs"),
o restricted and deferred stock,
o performance awards, and
o other types of awards based on Common Stock.
THE PURPOSE OF PLAN
The 2000 Award Plan is designed to attract and retain high quality and
highly motivated executives and other key employees. The Plan will provide them
with stock options and with other forms of stock-based awards and cash
compensation that is linked to their and IFF's performance.
The Board believes that performance-based incentive compensation is
essential
o to IFF's growth and success,
o to create value for IFF shareholders, and
o to assure that the interests of executives and other key employees are
aligned with those of IFF shareholders.
In particular, IFF intends to use stock options and stock-related awards as
an important element of compensation for executives and other employees. The
awards enable them to acquire or increase their proprietary interest in IFF.
This promotes a closer identity of interests between them and IFF's
shareholders. In addition, annual incentive awards and other performance-based
awards will provide incentives for achieving specific performance objectives.
SHARES AVAILABLE UNDER PLAN
The 2000 Award Plan authorizes the grant of up to 4,500,000 shares of
Common Stock for options and stock-related awards. No more than 30% of the total
shares covered by the 2000 Award Plan may be issued as awards other than options
and SARs. The following shares will be considered to be available for new awards
under the 2000 Award Plan
o shares subject to forfeited or expired awards or to awards settled in
cash or otherwise terminated without issuance of shares to the
participant, and
o shares withheld by or surrendered to IFF to satisfy withholding tax
obligations or in payment of the exercise price of an award.
8
<PAGE>
WHO MAY PARTICIPATE IN THE PLAN?
o executive officers and other employees of IFF and
o non-employee directors, consultants and others who provide substantial
services to IFF.
STOCK AWARD LIMITATIONS
IFF may not grant any participant stock awards in any year under the 2000
Award Plan for more than his or her annual limit for each type of award. The
annual limit equals 2,000,000 shares plus the amount of the participant's unused
annual limit relating to the same type of award as of the close of the previous
year. Options, SARs, restricted stock, deferred stock and other stock awards are
separate types of awards subject to a separate limitation.
CASH-DENOMINATED AWARD LIMITATIONS
The annual incentive award that may be earned by a participant in any given
year is limited to a maximum of 50% of the annual incentive pool discussed
below. The 2000 Award Plan also limits other types of performance awards that
may be earned by a participant to $6,000,000 plus the amount of unused cash
annual limit at the close of the previous year. The per person limit for annual
incentive awards, or other cash-denominated performance awards, and each type of
share-based award applies separately to its respective type of award.
ANTI-DILUTION ADJUSTMENTS
The 2000 Award Plan provides for adjustments to the number and kind of
shares subject to the share limitations and specified in the annual limits in
the event of a large, special or non-recurring dividend or distribution,
recapitalization, stock split, stock dividend, reorganization, business
combination and other similar corporate transaction or event effecting the
Common Stock.
OTHER ADJUSTMENTS
The Committee may adjust performance conditions and other terms of awards
in response to the above events or to changes in applicable law, regulations or
accounting principles. Adjustments to awards intended to qualify as "performance
based" generally must conform to requirements under Section 162(m) of the
Internal Revenue Code, which is discussed below.
ADMINISTRATION
The 2000 Award Plan is administered by the Stock Option and Compensation
Committee. See "Administration" under the 2000 Directors Plan on page 6 for the
names of the members of the Committee and their addresses. However, the Board
may appoint any other committee to administer the Plan and may itself act to
administer the Plan. The Board must perform the functions of the Committee for
the purposes of granting awards to non-employee directors.
The Committee is authorized to
o select participants, determine the type and number of Awards to be
granted and the number of shares to which Awards will relate or the
amount of performance awards,
o specify times at which Awards will be exercisable or settled,
including performance conditions that may be required as a condition
thereof,
9
<PAGE>
o set other terms and conditions of the Awards,
o prescribe forms of Award agreements,
o interpret and specify Plan rules and regulations, and
o make all other determinations which may be necessary or advisable for
the administration of the Plan.
STOCK OPTIONS AND SARS
The Committee may grant stock options, including both incentive stock
options ("ISOs") and non-qualified stock options. ISOs can result in potentially
favorable tax treatment to the participant. The Committee may also grant SARs.
SARs entitle the participant to receive in cash the excess of the fair market
value of a share of Common Stock on the date of exercise or other specified date
over the grant price of the SAR. The Committee determines the exercise price of
an option and the grant price of an SAR. Generally the exercise price may not be
less than the fair market value of the shares on the date of grant, except as
described below.
The Committee generally fixes
o the maximum term of each option or SAR,
o the times at which each option or SAR will be exercisable, and
o the provisions requiring forfeiture of unexercised options at or
following termination of employment or upon the occurrence of other
events.
No ISO, or SAR in tandem therewith, may have a term exceeding ten years.
Options are exercisable by payment of the exercise price in cash, shares or
other property or by surrender of other outstanding Awards having a fair market
value equal to the exercise price. The Committee determines the methods of
exercise and settlement and other terms of SARs. SARs granted under the 2000
Award Plan may include limited SARs exercisable for a stated period of time
following a change in control of IFF, as discussed below.
RESTRICTED AND DEFERRED STOCK
The Committee may make Awards of restricted stock and deferred stock.
Restricted Stock
The Committee generally establishes the restricted period. Prior to the end
of the restricted period, the participant may not sell or dispose of shares
received as restricted stock. The shares may be forfeited in the event of
termination of employment. The restricted stock must vest over a minimum period
of one year except in the case of the participant's death, disability or
retirement, a change in control of IFF, or other special circumstances. An Award
of restricted stock entitles the participant to all of the rights of a
shareholder of IFF other than possession and the right to transfer the shares.
These rights include the right to vote the shares and the right to receive any
dividends thereon, unless otherwise determined by the Committee.
Deferred Stock
Deferred stock gives participants the right to receive shares at the end of
a specified deferral period. This right is subject to forfeiture of the Award in
the event of termination of employment under specified circumstances prior to
the end of a specified restricted period. The restricted period need not be the
same as the deferral period. Prior to settlement, deferred stock Awards carry no
voting or dividend rights or other rights associated with stock ownership, but
dividend equivalents may be paid on such deferred stock.
10
<PAGE>
OTHER STOCK-BASED AWARDS, BONUS SHARES, AND AWARDS IN LIEU OF CASH
OBLIGATIONS
The Committee may grant Awards that are denominated or payable in, valued
in whole or in part by reference to, or otherwise based on or related to shares
of Common Stock. The Committee will determine the terms and conditions of the
Awards. These terms include
o the consideration to be paid to exercise Awards in the nature of
purchase rights,
o the periods during which Awards will be outstanding, and
o any forfeiture conditions and restrictions on Awards.
The Committee may also grant shares as a bonus, free of restrictions. It
may also grant shares or other Awards in lieu of IFF's obligations under other
plans or compensatory arrangements, subject to such terms as it may specify.
PERFORMANCE-BASED AWARDS
The Committee may grant performance-based Awards, which may be
cash-denominated Awards or share-based Awards. Generally performance-based
Awards require satisfaction of pre-established performance goals. These goals
consist of one or more business criteria and a targeted performance level
relating to the criteria as a condition of Awards
o being granted or
o becoming exercisable or settleable under the 2000 Award Plan,
or as a condition to
o accelerating the timing of these events.
Performance may be measured over a period of up to one year or a longer
period specified by the Committee. The Committee may grant performance-based
Awards, other than annual incentive awards discussed below, that qualify under
Section 162(m) of the Code. Awards which qualify under that Section are fully
tax deductible by the Company.
The Committee uses one or more of the following business criteria for IFF,
on a consolidated basis, and/or for specified subsidiaries or affiliates or
other business units of IFF, in establishing performance goals applicable to
those performance Awards to named executives. The business criteria will be
selected from among the following:
o net sales;
o earnings from operations, earnings before or after taxes, earnings
before or after interest, depreciation, amortization, or extraordinary
or special items;
o net income or net income per common share (basic or diluted);
o return on assets (gross or net), return on investment, return on
capital, or return on equity;
o cash flow, free cash flow, cash flow return on investment (discounted
or otherwise), net cash provided by operations, or cash flow in excess
of cost of capital;
o economic value created;
o operating margin or profit margin;
11
<PAGE>
o stock price or total shareholder return;
o dividend payout as a percentage of net income; and
o strategic business criteria, consisting of one or more objectives
based on meeting specified market penetration, geographic business
expansion goals, cost targets, customer satisfaction, employee
satisfaction, management of employment practices and employee
benefits, supervision of litigation and information technology, and
goals relating to acquisitions or divestitures of subsidiaries,
affiliates or joint ventures.
The Committee may specify that any such criteria will be measured before or
after extraordinary or non-recurring items, before or after service fees, or
before or after payments of Awards under the 2000 Award Plan. The Committee may
set the levels of performance required in connection with performance Awards
o as fixed amounts,
o as goals relative to performance in prior periods,
o as goals compared to the performance of one or more comparable
companies or an index covering multiple companies, or
o in any other way the Committee may determine.
ANNUAL INCENTIVE AWARDS
The Committee may grant annual incentive awards, settleable in cash or in
shares of Common Stock upon achievement of preestablished performance objectives
achieved during a specified period of up to one year. The performance objectives
may be one or more of the performance objectives available for other performance
awards under the 2000 Award Plan, as described in the preceding paragraph.
Either together with or as an alternative to the above performance
objectives, the Committee may determine that annual incentive Awards will be
earned only if and to the extent an annual incentive pool becomes funded, on a
hypothetical basis. In this event, the annual incentive pool for each fiscal
year will equal 10% of the amount by which the pretax consolidated earnings
exceed 20% of net capital for that year. This funding will in no event exceed
10% of the cash dividends paid by IFF during the year.
For this purpose, pretax consolidated earnings for a fiscal year means
o IFF's consolidated net earnings for the year before extraordinary
items and before the cumulative effect of accounting changes,
o plus the amount provided by IFF for all income taxes for the year,
o plus the amount of the annual incentive pool for the year.
Net capital for any year means the arithmetic average of the amounts of the
consolidated capital and surplus of IFF as at the beginning and the end of such
year (before extraordinary items and before the cumulative effect of accounting
changes).
The Committee generally must establish the terms of annual incentive Awards
not later than 90 days after the beginning of the fiscal year. These terms
include, if applicable,
o the applicable performance goals
o the corresponding amounts payable, subject to per person limits,
and/or the amounts allocable out of the annual incentive pool,
12
<PAGE>
o other terms of settlement, and
o all other terms of these Awards.
OTHER TERMS OF AWARDS
Awards may be settled in cash, shares of Common Stock, other Awards or
other property, in the discretion of the Committee. The Committee may require or
permit participants to defer the settlement of all or part of an Award in
accordance with terms and conditions that the Committee may establish. These
include payment or crediting of interest or dividend equivalents on any deferred
amounts. For Award purposes, the Committee may direct that cash, shares or other
property be placed in trusts. It may also make other arrangements to provide for
payment of IFF's obligations under the 2000 Award Plan.
The Committee may condition Awards on the payment of taxes. The Committee
may direct that a portion of the shares or other property to be distributed be
withheld. It may receive previously acquired shares or other property
surrendered by the participant in order to satisfy tax obligations.
Awards granted under the 2000 Award Plan generally may not be pledged or
otherwise encumbered. The Awards are not transferable except by will or by the
laws of descent and distribution, or to a designated beneficiary upon the
participant's death.
The Committee may permit transfers to beneficiaries during the
participant's lifetime, primarily for estate planning purposes.
Awards under the 2000 Award Plan are generally granted without a
requirement that the participant pay consideration in the form of cash or
property for the grant, as distinguished from the exercise, except to the extent
required by law. The Committee may, however, grant Awards in substitution for,
exchange for or as a buyout of
o other Awards under the 2000 Award Plan,
o awards under other Company plans, or
o other rights to payment from the Company,
and may exchange or buy out outstanding Awards for cash or other property.
The Committee also may grant Awards in addition to and in tandem with other
Awards, awards, or rights as well. In granting a new Award, the Committee may
determine that the in-the-money value of any surrendered Award may be applied to
reduce the exercise price of any option, grant price of any SAR, or purchase
price of any other Awards.
VESTING, FORFEITURES, AND ACCELERATION OF AWARDS & OPTIONS
The Committee may in its discretion determine
o the vesting schedule of options and other Awards,
o the circumstances that will result in forfeiture of Awards,
o the post-termination exercise periods of options and similar Awards,
and
o the events that will result in acceleration of the ability to exercise
and the lapse of restrictions, or the expiration of any deferral
period, of any Award.
13
<PAGE>
FORFEITURES
Each Award granted under the 2000 Award Plan is subject to forfeiture
conditions, unless the Committee determines otherwise. The participant, by
accepting an Award under the Plan, agrees to these conditions. The occurrence of
the following events at any time during the participant's employment or during
the one year following termination of his employment will trigger a forfeiture.
These forfeiture events are
o engaging in any business in direct competition with IFF
o inducing any customer or supplier of IFF to cease doing business with
IFF
o inducing any employee or service provider to terminate his employment
or service
o disclosing any confidential or proprietary information of IFF
o failing to cooperate with IFF by being available to testify on behalf
of IFF.
If any of the above events occur, the following forfeitures will result:
o the unexercised portion of any option, whether or not vested, and any
other Award not then settled will be immediately forfeited and
cancelled. An exception is provided for an Award that has not been
settled solely due to an elective deferral by the participant and is
not otherwise forfeitable.
o the participant will be obligated to repay to IFF in cash, five
business days after demand, the amount of gain realized by the
participant upon each exercise of an option or the settlement of an
Award. The gain recoverable is the gain realized on or after
o the date that is six months prior to the occurrence of the
forfeiture event, if the forfeiture event occurred while the
participant was employed by IFF, or
o the date that is six months prior to the date the participant's
employment by IFF was terminated, if the forfeiture event
occurred after the participant ceased to be so employed.
The 2000 Award Plan does not prohibit competition by the participant with
IFF. Rather, the non-occurrence of the above forfeiture events is a condition to
the participant's right to realize and retain the full value of his Award.
The Committee, in its discretion, may waive, in whole or in part, any
forfeiture under the 2000 Award Plan.
CHANGE IN CONTROL
The 2000 Award Plan provides that, in the event of a Change in Control of
IFF,
o outstanding Awards will immediately vest and be fully exercisable,
o any restrictions, deferral of settlement and forfeiture conditions of
such Awards will lapse, and
o goals relating to performance-based awards will be deemed met or
exceeded to the extent specified in the performance-award documents.
The Board may determine that an event which otherwise would constitute a
change in control will not result in accelerated vesting or other enhancements
of rights under the 2000 Award Plan. In that event, the Award remains
outstanding, with appropriate adjustments, after any merger or other transaction
is completed, and the value of the Award must remain unimpaired. In addition, a
participant will be entitled to enhanced rights under the Award if he or she
later is terminated other than for cause or terminates for good reason within
two years after the event.
14
<PAGE>
AMENDMENT & TERMINATION
The 2000 Award Plan also provides that IFF's Board of Directors may
discontinue or amend the Plan in any respect, without shareholder consent, with
the following exception. Shareholder approval must be obtained if it is required
by any federal or state law or regulation or the rules of any stock exchange on
which the Common Stock may be listed. It must also be obtained if Board action
requires it. However, no action by the Board of Directors may materially impair
the rights of an optionee under any option previously granted to him or her
without the consent of an affected optionee.
DUTCH EMPLOYEES
IFF has granted stock options to employees of its Dutch subsidiary with
some provisions which are different than those described above. The principal
differences are that these options are immediately exercisable in full and IFF
has the right with limited exceptions in case of death or retirement to purchase
all or a percentage of the shares acquired under the options at the option price
if the employee either leaves IFF's employ or seeks to sell the shares to others
within four years after grant.
ERISA
IFF is not aware of any provision of the Employee Retirement Income
Security Act of 1974 to which the 2000 Award Plan is subject.
USE OF PROCEEDS
IFF intends to use for general corporate purposes the net proceeds which
may be received from the sale of shares of Common Stock pursuant to the exercise
of stock options, or for any other consideration received by it in connection
with an Award.
OUTSTANDING AWARDS AND STOCK OPTIONS
At September 15, 2000, 347 optionees (including 4 officers) held options
under the 2000 Award Plan to purchase an aggregate of 944,000 shares of Common
Stock at option prices of between $25.31 and $34.00 per share. All such options
expire either five or ten years after the date of grant. No other options or
stock awards have been granted under the Plan as of the date hereof. Additional
information with respect to outstanding options held by officers of IFF is set
forth in its Proxy Statement for the 2000 Annual Meeting of Shareholders which
is incorporated by reference herein.
TAX CONSEQUENCES
IFF has been advised by counsel of the following federal income tax
consequences generally arising with respect to Awards that may be granted under
the 2000 Award Plan.
Options and SARs
The grant of an option including a stock-based Award in the nature of a
purchase right or an SAR, will create no federal income tax consequences for the
participant or IFF.
A participant will not have taxable income upon exercising an ISO although
the alternative minimum tax may apply.
Upon exercising an option which is not an ISO, the participant must
generally recognize ordinary income equal to the difference between the exercise
price and the fair market value of the freely transferable and nonforfeitable
15
<PAGE>
shares acquired on the date of exercise. Upon exercising an SAR, the participant
must generally recognize ordinary income equal to the cash received from IFF.
Upon a disposition of shares of Common Stock acquired upon exercise of an
ISO before the end of the applicable ISO holding periods, the participant must
generally recognize ordinary income equal to the lesser of
o the fair market value of the shares at the date of exercise of the ISO
minus the exercise price or
o the amount realized upon the disposition of the ISO shares minus the
exercise price.
Otherwise, a participant's disposition of shares acquired upon the exercise of
an option generally will result in short-term or long-term capital gain or loss
measured by the difference between the sale price and the participant's tax
"basis" in such shares.
o Generally, the tax "basis" is the exercise price plus any amount
previously recognized as ordinary income in connection with the
exercise of the option.
IFF generally will be entitled to a tax deduction equal to the amount
recognized as ordinary income by the participant in connection with options and
SARs. IFF generally is not entitled to a tax deduction relating to amounts that
represent a capital gain to a participant. Accordingly, IFF will not be entitled
to any tax deduction with respect to an ISO if the participant holds the shares
for the applicable ISO holding periods prior to their disposition.
Awards
Awards granted under the 2000 Award Plan resulting in a transfer to the
participant of cash or shares of Common Stock or other property that is either
not restricted as to transferability or not subject to a substantial risk of
forfeiture
o the participant must generally recognize ordinary income at the time
of transfer equal to the cash or the fair market value of shares or
other property actually received.
Awards involving shares or other property that is restricted as to
transferability and subject to a substantial risk of forfeiture
o the participant must generally recognize ordinary income at the time
of transfer equal to the fair market value of the shares or other
property received at the earliest time the shares or other property
become transferable or not subject to a substantial risk of
forfeiture.
Except as discussed below, IFF generally will be entitled to a deduction in
an amount equal to the ordinary income recognized by the participant.
A participant may elect to be taxed at the time of receipt of shares e.g.,
restricted stock, or other property rather than upon lapse of restrictions on
transferability or the substantial risk of forfeiture. But if the participant
subsequently forfeits such shares or property he or she would not be entitled to
any tax deduction, including as a capital loss, for the value of the shares or
property on which he or she previously paid tax.
Section 162(m) Deductibility
Compensation that qualifies as "performance-based" compensation is excluded
from the $1 million deductibility cap of Code Section 162(m), and therefore
remains fully deductible by IFF in its corporate income tax returns.
Under the 2000 Award Plan, Awards in the form of options granted with an
exercise price or grant price at least equal to 100% of fair market value of the
underlying shares at the date of grant will be considered "performance-based".
16
<PAGE>
Awards which are conditioned upon achievement of performance goals may be
"performance-based" compensation. A number of requirements must be met, however,
in order for particular compensation to so qualify. Accordingly, there can be no
assurance that such compensation under the 2000 Award Plan will be fully
deductible by IFF under all circumstances. In addition, other Awards under the
2000 Award Plan generally will not so qualify. In that event, compensation paid
to certain executives in connection with such Awards may be subject to the
limitations of Section 162(m), to the extent it and other compensation subject
to Section 162(m)'s deductibility cap exceed $1 million in a given year.
The foregoing provides only a general description of the application of
federal income tax laws to certain types of Awards under the 2000 Award Plan.
The tax consequences may vary with the types of awards made, the identity of the
recipients and the method of payment or settlement. Different tax rules may
apply to the variations in transactions that are permitted under the 2000 Award
Plan, including the payment of the exercise price of an option by surrender of
previously acquired shares. The summary does not address the effects of other
federal taxes (including possible "golden parachute" excise taxes) or taxes
imposed under state, local, or foreign tax laws. Participants may wish to
consult their personal tax advisors about the applicability of the tax laws to
their own situation.
DIRECTOR ANNUAL STOCK GRANTS
On March 9, 2000, the Board of Directors voted to increase the annual
retainer to non-employee directors through the issuance each year of 1,000
shares of Common Stock commencing on October 1, 2000, and each October 1
thereafter. The Directors' Deferred Compensation Plan has been amended to allow
directors to elect to defer receipt of the stock grants. The stock grants will
be deemed to be prospective, and will relate to services to be rendered for the
period October 1 to September 30.
Unless deferred, the stock grants are treated as ordinary income in an
amount equal to the fair market value on October 1 of the 1,000 shares of the
stock grant. The amendments to the Directors' Deferred Compensation Plan will
allow directors to elect to defer receipt of the stock grants until the earlier
of (a) a specific year chosen by the director or (b) the later of the year in
which the director (i) ceases to serve or (ii) reaches age 75. Deferred stock
grants will be paid either in a lump sum or from two to 10 annual installments,
at the director's election.
Deferred compensation, whether in cash or stock, may not be funded, and
elections to defer compensation must be made before the compensation is earned.
IFF will carry on its books, for the benefit of each director who elects to
defer the stock grants, a share equivalents account equal to the number of
shares of stock deferred. IFF will also credit to this account dividend
equivalents equal to cash dividends declared. In making his or her deferral
election, the director may elect either to have dividend equivalents credited to
his or her plan account in cash or as additional share equivalents, including
fractional share equivalents.
SELLING SHAREHOLDERS
The 374,000 shares of IFF's Common Stock in column (B) are covered by this
Prospectus and are, or may be, offered by IFF's directors or officers who, at
the time of such offering, will have acquired these shares upon the exercise of
options granted under the 2000 Non-Employee Directors' Plan, the 2000 Award Plan
or resulting from an annual grant of 1,000 shares of Common Stock made to each
non-employee director on October 1, 2000. The shares of Common Stock shown in
column (A) below include 128,999 shares of Common Stock which the named
directors and officers of IFF have (or will have as of 60 days after that date)
the right to acquire under stock options granted by IFF.
17
<PAGE>
<TABLE>
<CAPTION>
COMMON STOCK WHICH
MAY BE SOLD
-------------------------------
(A) (B)
SHARES UNDER
OPTIONS GRANTED
SINCE AUGUST 3,
1998 WHICH
COMMON STOCK MAY BE OFFERED
POSITION WITH IFF OWNED AS OF FOR THE SELLING
WITHIN THE PAST DECEMBER 31, SHAREHOLDER'S
NAME THREE YEARS 1999(1) ACCOUNT
---- ----------- ------- -------
<S> <C> <C> <C>
Richard A. Goldstein ......... Chairman of the Board and Chief Executive 0 200,000
Officer since June 1, 2000
D. Wayne Howard .............. Executive Vice-President since 0 65,000
September 12, 2000
Thomas E. Kinlin ............. Vice-President since September 1999; 33,283 3,000
employed by IFF in other positions prior
thereto
Jose A. Rodriguez ............ Vice-President since May 1998; employed by 31,666 10,000
IFF in other positions prior thereto
Margaret Hayes Adame ......... Director 12,000 4,000(2)
Richard M. Furlaud ........... Director; Chairman of the Board and Chief 63,250 76,000(2)
Executive Officer December 14, 1999
to June 1, 2000
Peter A. Georgescu ........... Director 1,000 4,000(2)
George Rowe, Jr. ............. Director 7,025,239 4,000(2)
Henry P. van Ameringen ....... Director 7,944,376 4,000(2)
William D. Van Dyke, III ..... Director 7,295,493 4,000(2)
</TABLE>
------------------
(1) See page 4 of IFF's Proxy Statement for 2000 Annual Meeting of
Shareholders which is incorporated by reference herein for a further description
of the shares of IFF's Common Stock beneficially owned by Messrs. Rowe, van
Ameringen and Van Dyke. Their percentage of beneficial ownership stated in the
proxy statement will remain unchanged after the sale of the shares in column (B)
above.
(2) Includes 1,000 stock award granted September 12, 2000 effective October
1, 2000.
LEGAL MATTERS
Legal matters in connection with this offering are being passed upon by Fulton,
Rowe, Hart & Coon, One Rockefeller Plaza, New York, N.Y. 10020, counsel for IFF.
Mr. Rowe, a partner of that firm, is a director of IFF. See page 17 of the 2000
Proxy Statement for the shares of the IFF's Common Stock owned by Mr. Rowe.
Robert M. Coon, another partner in that firm, owns 6,914 shares and his wife
owns 1,500 shares of IFF's Common Stock.
EXPERTS
The consolidated financial statements incorporated in this Prospectus by
reference to IFF's Annual Report on Form 10-K for the year ended December 31,
1999 have been so incorporated in reliance on the report of
PricewaterhouseCoopers LLP, independent accountants, given on the authority of
said firm as experts in auditing and accounting.
18
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
Registration fee ....................................... $28,320
*Printing ............................................... 30,000
*Legal Services ......................................... 30,000
*Accounting ............................................. 5,000
*Miscellaneous .......................................... 3,000
-------
Total ........................................... $96,320
=======
----------------
* Estimated.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
On July 24, 1986, New York substantially revised the provisions of the New
York Business Corporation Law ("BCL") to permit New York corporations to extend
broader protection to their directors and officers by way of indemnity and
advancement of expenses than that previously afforded by New York law. On
October 31, 1986, the Board of Directors of the Registrant amended the
Registrant's By-laws to extend such indemnification and advancement of expenses
to its directors and officers. Article II, Section 14 of the Registrant's
By-laws, as amended, provides among other things that a corporation may
indemnify a person against judgments, fines, amounts paid in settlement and
reasonable expenses arising out of litigation, to which such person shall have
been made a party by reason of the fact he is or was a director or officer of
the corporation, unless a judgment or other final adjudication adverse to such
person establishes that his acts were committed in bad faith or were the result
of active and deliberate dishonesty and were material to the action so
adjudicated, or that he personally gained in fact a personal profit or other
advantage to which he was not entitled. The By-laws also permit the Registrant
to advance litigation expenses of such director or officer upon receipt of an
undertaking to repay such advances if the director or officer is ultimately
determined not to be entitled to indemnification.
In July 1987, New York added Section 402(b) to the BCL which permits New
York corporations, with shareholder approval, to amend their certificates of
incorporation in order to eliminate or limit the personal liability of directors
to a corporation and its shareholders for damages arising from breaches of the
directors' duty. On May 13, 1988, the Registrant amended its Certificate of
Incorporation by adding a new Article XI which had been approved by the
shareholders on May 12, 1988. Article XI provides that no director of the
Registrant shall be personally liable to the Registrant or its shareholders for
damages for any breach of duty as a director. Article XI does not permit
elimination or limitation of the liability of any director if a judgment or
other final adjudication adverse to him establishes that (i) his acts or
omissions were in bad faith or involved intentional misconduct or a knowing
violation of law or that he personally derived a financial profit or other
advantage to which he was not legally entitled, or (ii) that his action involved
(a) an improper declaration of any dividend or other distribution, (b) an
improper redemption by the Registrant of its own shares, (c) the distribution of
assets to shareholders after dissolution, without paying or adequately providing
for, with certain exceptions, known liabilities of the Registrant or (d) the
making of an improper loan to a director. Article XI also does not authorize any
limitation on the ability of the Registrant or its shareholders to obtain
injunctive relief, specific performance or other equitable remedies, and would
not apply to acts or omissions which occurred prior to the filing of the
amendment to the Registrant's Certificate of Incorporation containing the
limitation on directors' liability.
On December 9, 1975, the Registrant's Board of Directors adopted a
resolution pursuant to which the Registrant is obligated to indemnify, to the
extent permitted by law, any director, officer or employee of the Registrant
against any liability arising out of claims under the Employee Retirement Income
Security Act of 1974.
R-1
<PAGE>
ITEM 16. EXHIBITS.
Number
------
1 --Not applicable
2 --Not applicable
4(a) --Shareholder Protection Rights Agreement dated as of March
21, 2000 between Registrant and The Bank of New York, as
Rights Agent, incorporated by reference to Exhibit 4 to
Registrant's Report on Form 8-K dated March 22, 2000 (File
No. 1-4858).
4(b) --Specimen certificate of Registrant's Common Stock bearing
legend notifying of Shareholder Protection Rights
Agreement.
5 --Opinion of Fulton, Rowe, Hart & Coon.
8 --Not applicable
12 --Not applicable
15 --Not applicable
23(a) --Consent of PricewaterhouseCoopers LLP.
23(b) --Consent of Fulton, Rowe, Hart & Coon (included in
Exhibit 5).
24 --Powers of Attorney authorizing George Rowe, Jr. and
Stephen A. Block to sign the Registration Statement and
amendments thereto on behalf of certain directors and
officers of the Registrant.
25 --Not applicable
26 --Not applicable
27 --Not applicable
99(a) --2000 Stock Option Plan for Non-Employee Directors,
incorporated by reference to Exhibit A to the Proxy
Statement of Registrant dated March 29, 2000.
99(b) --2000 Stock Award and Incentive Plan, incorporated by
reference to Exhibit B to the Proxy Statement of Registrant
dated March 29, 2000.
99(c) --Board resolution adopted September 12, 2000 authorizing
the annual grant of a stock award of 1,000 shares to each
of the non-employee directors of Registrant.
99(d) --Directors' Deferred Compensation Plan as amended.
ITEM 17. UNDERTAKINGS.
The undersigned Registrant hereby undertakes: (1) to file, during any
period in which offers or sales are being made, a post-effective amendment to
this Registration Statement (i) to include any prospectus required by section
10(a)(3) of the Securities Act of 1933; (ii) to reflect in the prospectus any
facts or events arising after the effective date of the Registration Statement
(or the most recent post-effective amendment thereof) which, individually or in
the aggregate, represent a fundamental change in the information set forth in
the Registration Statement; and (iii) to include any material information with
respect to the plan of distribution not previously disclosed in the Registration
Statement or any material change to such information in the Registration
Statement, provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if
the Registration Statement is on Form S-3 or Form S-8, and the information
required to be included in a post-effective amendment by those paragraphs is
contained in periodic reports filed by the Registrant pursuant to section 13 or
section 15(d) of the Securities Exchange Act of 1934 that are incorporated by
reference in the Registration Statement; (2) that, for the purpose of
determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new Registration Statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof; and
(3) to remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination of the
offering.
The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to section 13(a) or section 15(d) of the
R-2
<PAGE>
Securities Exchange Act of 1934 that is incorporated by reference in the
Registration Statement shall be deemed to be a new Registration Statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
The undersigned Registrant hereby undertakes to deliver or cause to be
delivered with the prospectus to each employee to whom the prospectus is sent or
given a copy of the Registrant's annual report to shareholders for its last
fiscal year, unless such employee otherwise has received a copy of such report,
in which case the Registrant shall state in the prospectus that it will promptly
furnish, without charge, a copy of such report on written request of the
employee. If the last fiscal year of the Registrant has ended within 120 days
prior to the use of the prospectus, the annual report of the Registrant for the
preceding fiscal year may be so delivered, but within such 120 day period the
annual report for the last fiscal year will be furnished to each such employee.
The undersigned Registrant hereby undertakes to transmit or cause to be
transmitted to all employees participating in the plan who do not otherwise
receive such material as shareholders of the Registrant, at the time and in the
manner such material is sent to its shareholders, copies of all reports, proxy
statements and other communications distributed to its shareholders generally.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been informed that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
R-3
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT,
INTERNATIONAL FLAVORS & FRAGRANCES INC., CERTIFIES THAT IT HAS REASONABLE
GROUNDS TO BELIEVE THAT IT MEETS ALL OF THE REQUIREMENTS FOR FILING ON FORM S-3
AND HAS DULY CAUSED THIS REGISTRATION STATEMENT TO BE SIGNED ON ITS BEHALF BY
THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED, IN THE CITY OF NEW YORK, AND STATE
OF NEW YORK, ON THE ___ DAY OF SEPTEMBER, 2000.
INTERNATIONAL FLAVORS & FRAGRANCES INC.
By /s/
-------------------------------------
DOUGLAS J. WETMORE, SENIOR VICE-PRESIDENT
AND CHIEF FINANCIAL OFFICER
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATE INDICATED:
PRINCIPAL EXECUTIVE OFFICER:
RICHARD A. GOLDSTEIN
Chairman of the Board
and Chief Executive Officer
PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER:
DOUGLAS J. WETMORE
Senior Vice-President and Chief
Financial Officer and Director By /s/
------------------------------
STEPHEN A. BLOCK
ATTORNEY-IN-FACT
DIRECTORS:
MARGARET HAYES ADAME
ROBERT G. CORBETT
RICHARD M. FURLAUD
PETER A. GEORGESCU
RICHARD A. GOLDSTEIN September, __ 2000
CARLOS A. LOBBOSCO
GEORGE ROWE, JR.
HENRY P. VAN AMERINGEN
WILLIAM D. VAN DYKE, III
DOUGLAS J. WETMORE
ORIGINAL POWERS OF ATTORNEY AUTHORIZING GEORGE ROWE, JR. AND STEPHEN A. BLOCK,
AND EACH OF THEM, TO SIGN THIS REGISTRATION STATEMENT AND ANY AMENDMENTS HERETO
ON BEHALF OF CERTAIN DIRECTORS AND OFFICERS OF THE REGISTRANT HAVE BEEN FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION.
R-4
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this Registration
Statement on Form S-3 of our report dated January 27, 2000 relating to the
financial statements and financial statement schedule, which appear in
International Flavors & Fragrances Inc.'s Annual Report on Form 10-K for the
year ended December 31, 1999. We also consent to the reference to us under the
heading "Experts" in such Registration Statement.
PRICEWATERHOUSECOOPERS LLP
New York, New York
September __, 2000
R-5
