ALION SCIENCE AND TECHNOLOGY CORPORATION 310,000 Units consisting of $310,000,000 Principal Amount of 12% Senior Secured Notes due 2014 and Warrants to Purchase 602,614 Shares of Common Stock PURCHASE AGREEMENT
Exhibit 10.93
EXECUTION VERSION
ALION SCIENCE AND TECHNOLOGY CORPORATION
310,000 Units
consisting of
$310,000,000 Principal Amount of
12% Senior Secured Notes due 2014
and Warrants to Purchase
602,614 Shares of Common Stock
$310,000,000 Principal Amount of
12% Senior Secured Notes due 2014
and Warrants to Purchase
602,614 Shares of Common Stock
March 11, 2010
Credit Suisse Securities (USA) LLC (“Credit Suisse”),
Xxxxxx Xxxxxxx Xxxxxx,
Xxx Xxxx, X.X. 10010-3629
Xxxxxx Xxxxxxx Xxxxxx,
Xxx Xxxx, X.X. 10010-3629
Dear Sirs:
1. Introductory. Alion Science and Technology Corporation, a Delaware corporation (the
“Company”), proposes, subject to the terms and conditions stated herein, to issue and sell to
Credit Suisse Securities (USA) LLC (the initial “Purchaser”) 310,000 units (the “Units”), each Unit
consisting of $1,000 principal amount of the Company’s 12% Senior Secured Notes due 2014 (the
“Notes”) and one warrant (each, a “Warrant” and collectively, the “Warrants”) to purchase
approximately 1.9439 shares of common stock, par value $0.01 per share, of the Company (the “Common
Stock”). The Notes will be issued under an indenture dated as of March 22, 2010 (the “Indenture”),
among the Company, the Guarantors (as defined below) and Wilmington Trust Company, as Trustee. The
Warrants will be issued under a warrant agreement, dated as of March 22, 2010 (the “Warrant
Agreement”), between the Company and Wilmington Trust Company, as warrant agent (the “Warrant
Agent”). The Units, the Notes and the Warrants are collectively referred to herein as the “Offered
Securities.” The United States Securities Act of 1933, as amended, is herein referred to as the
“Securities Act.”
The Notes will be guaranteed, on a senior secured basis, jointly and severally by those
subsidiaries of the Company listed in the attached Schedule B hereto (the “Guarantors”) and will be
secured by certain collateral as described in the Preliminary Offering Circular (as defined below)
and the Offering Circular (as defined below) (the “Collateral”), and as will be more fully
described in the security agreements and/or other documents or instruments evidencing or creating
or purporting to create a security interest (collectively, the “Security Documents”) to be dated as
of the Closing Date (as defined below), among the Company, the Guarantors, Wilmington Trust
Company, as trustee and collateral agent (the “Collateral Agent”). In addition, the Company, the
lenders and Credit Suisse AG, as administrative agent for the lenders under the Credit Agreement
dated as of March 22, 2010 (the “Revolving Credit Facility”), will enter into an intercreditor
agreement as the same may be amended, supplemented or otherwise modified from time to time (the
“Intercreditor Agreement”) to be dated as of the Closing Date. The Intercreditor
Agreement and the Security Documents are hereinafter referred to collectively as the
“Ancillary Documents.”
The holders of the Notes will be entitled to the benefits of a Registration Rights Agreement
dated as of the Closing Date, among the Company, the Guarantors and the Purchaser (the
“Registration Rights Agreement”), pursuant to which the Company agrees to file a registration
statement with the Securities and Exchange Commission (the “Commission”) registering an exchange
offer for, or, in certain circumstances, the resale of, the Notes under the Securities Act.
The Company and the Guarantors, jointly and severally, hereby agree with the Purchaser as
follows:
2. Representations and Warranties of the Company and the Guarantors. The Company and the
Guarantors jointly and severally represent and warrant to, and agree with, the Purchaser that:
(a) A preliminary offering circular (the “Preliminary Offering Circular”) relating to the Offered Securities to be offered by the Purchaser and a final
offering circular (the “Final Offering Circular”) disclosing the offering price
and other final terms of the Offered Securities and dated the date of this Agreement (even
if finalized and issued subsequent to the date of this Agreement) have been or will be
prepared by the Company. “General Disclosure Package” means the Preliminary Offering
Circular, together with any Issuer Free Writing Communication (as hereinafter defined)
existing at the Applicable Time (as hereinafter defined) and the information which is
intended for general distribution to prospective investors, as evidenced by its being
specified in Schedule A to this Agreement (including the term sheet listing the final
terms of the Offered Securities and their offering included in Schedule D to this
Agreement, which is referred to as the “Terms Communication”). “Applicable Time” means
4:00 P.M. (New York time) on the date of this Agreement. As of the date of this
Agreement, the Final Offering Circular does not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. At the
Applicable Time neither (i) the General Disclosure Package, nor (ii) any individual
Supplemental Marketing Material (as hereinafter defined), when considered together with
the General Disclosure Package, included any untrue statement of a material fact or
omitted to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The preceding
two sentences do not apply to statements in or omissions from the Preliminary Offering
Circular or Final Offering Circular, the General Disclosure Package or any Supplemental
Marketing Material based upon written information furnished to the Company by the
Purchaser specifically for use therein, it being understood and agreed that the only such
information is that described as such in Section 8(b) hereof. Except as disclosed in the
General Disclosure Package, on the date of this Agreement, the Company’s Annual Report on
Form 10-K most recently filed with the Securities and Exchange Commission (the
“Commission”) and all subsequent reports (collectively, the “Exchange Act Reports”) which
have been filed by the Company with the Commission or sent to stockholders pursuant to the
Securities Exchange Act of 1934 (the “Exchange Act”) do not include any untrue statement
of a material fact or omit to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
Such documents, when they were filed with the Commission, conformed in all material
respects to the requirements of the Exchange Act and the rules and regulations of the
Commission thereunder.
“Free Writing Communication” means a written communication (as such term is defined in Rule
405 under the Securities Act) that constitutes an offer to sell or a solicitation of an
offer to buy the Offered Securities and is made by means other than the Preliminary
Offering Circular or the Final
Offering Circular. “Issuer Free Writing Communication” means a Free Writing Communication
prepared by or on behalf of the Company, used or referred to by the Company or containing a
description of the final terms of the Offered Securities or of their offering, in the
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form
retained in the Company’s records. “Supplemental Marketing Material” means any Issuer Free
Writing Communication other than any Issuer Free Writing Communication specified in
Schedule E to this Agreement.
(b) The Company has been duly incorporated and is an existing corporation in good
standing under the laws of the State of Delaware, with power and authority (corporate and
other) to own its properties and conduct its business as described in the General
Disclosure Package; and the Company is duly qualified to do business as a foreign
corporation in good standing in all other material jurisdictions in which its ownership or
lease of property or the conduct of its business requires such qualification.
(c) The entities listed on Schedule F to this Agreement are the only direct or
indirect subsidiaries and joint ventures of the Company. Schedule F sets forth the
jurisdiction of organization of each such subsidiary or joint venture. Each subsidiary of
the Company has been duly incorporated and is an existing corporation in good standing
under the laws of the jurisdiction of its incorporation, with power and authority
(corporate and other) to own its properties and conduct its business as described in the
General Disclosure Package; and each subsidiary of the Company is duly qualified to do
business as a foreign corporation in good standing in all other material jurisdictions in
which its ownership or lease of property or the conduct of its business requires such
qualification; all of the issued and outstanding capital stock of each subsidiary of the
Company has been duly authorized and validly issued and is fully paid and nonassessable;
and the capital stock of each subsidiary owned by the Company, directly or through
subsidiaries, is owned free from liens, encumbrances and defects, except such as are
described in the General Disclosure Package (including those securing the Revolving Credit
Facility and the liens to be created by the Security Documents) or liens and encumbrances
granted in connection with the Guaranty and Collateral Agreement entered into by the
Company in connection with the Company’s Term B Senior Credit Facility (as hereinafter
defined). For purposes of this Agreement, “Term B Senior Credit Facility” means that
certain credit agreement dated as of August 2, 2004, as amended, among the Company,
certain subsidiaries of the company guaranteeing the Company’s obligations thereunder, the
lenders party thereto and Credit Suisse (formerly known as Credit Suisse First Boston), as
administrative agent and as collateral agent for such lenders. For purposes of this
Agreement, “Guaranty and Collateral Agreement” means the Guarantee and Collateral
Agreement dated as of August 2, 2004, as amended, among the Company, certain of its
subsidiaries guaranteeing the Company’s obligations under the Term B Senior Credit
Facility and Credit Suisse (formerly known as Credit Suisse First Boston), as collateral
agent.
(d) The Indenture and the Warrant Agreement have been duly authorized by the Company
and each of the Guarantors; the Offered Securities have been duly authorized by the
Company; and when the Offered Securities are delivered and paid for pursuant to this
Agreement on the Closing Date (as defined below), the Indenture and the Warrant Agreement
will have been duly executed and delivered, such Offered Securities will have been duly
executed, authenticated (when authenticated by the Trustee), issued and delivered, will be
consistent with the information in the General Disclosure Package and will conform to the
description thereof contained in the Final Offering Circular and the Indenture will
constitute a valid and legally binding obligation of the Company and the Guarantors and
the Warrant Agreement will constitute a valid and legally binding obligation of the
Company and such Offered Securities will constitute valid and legally binding obligations
of the Company, in each case enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar
laws of general applicability relating to or affecting creditors’ rights and to
general equity principles.
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(e) The Warrants delivered on the Closing Date are convertible into shares of Common
Stock in accordance with the terms of the Warrant Agreement; the shares of Common Stock
initially issuable upon exercise of the Warrants shall have been duly authorized, and on
or prior to the Closing Date shall have been reserved for issuance upon such exercise and,
when issued upon such exercise, will be validly issued, fully paid and nonassessable; the
outstanding shares of Common Stock have been duly authorized and validly issued, are fully
paid and nonassessable and conform in all material respects to the description thereof
contained in the General Disclosure Package; and the stockholders of the Company have no
preemptive rights with respect to the Warrants or the shares of Common Stock, except as
disclosed in the General Disclosure Package.
(f) Except as disclosed in the General Disclosure Package, there are no contracts,
agreements or understandings between the Company and any person that would give rise to a
valid claim against the Company or any Purchaser for a brokerage commission, finder’s fee
or other like payment.
(g) No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required for the consummation of the
transactions contemplated by this Agreement, the Warrant Agreement, the Registration
Rights Agreement or the Ancillary Documents (or the perfection of security interests in
the Collateral) in connection with the issuance and sale of the Offered Securities by the
Company except for the Exchange Offer Registration Statement, the Shelf Registration
Statement, if required, the order of the Commission declaring effective the Exchange Offer
Registration Statement or, if required, the Shelf Registration Statement (each as defined
in the Registration Rights Agreement), any necessary state securities filings, financing
statements, any filings required with the United States Patent and Trademark Office or
Copyright Office and any filings to record mortgages or fixtures, and reports, filings,
authorizations or approvals to, from or of the United States government as may be required
(i) pursuant to the United States Assignment of Claims Act and the regulations promulgated
pursuant thereto and (ii) to examine whether any foreign ownership control or influence
(“FOCI”) exists, within the meaning of such term as used in the National Industrial
Security Program Operating Manual, made or requested after the consummation of the
transactions contemplated by this Agreement.
(h) The execution, delivery and performance of the Indenture, the Warrant Agreement,
this Agreement, the Registration Rights Agreement, the Ancillary Documents and the
issuance and sale of the Offered Securities and compliance with the terms and provisions
thereof will not result in a breach or violation of any of the terms and provisions of, or
constitute a default under, any statute, any rule, regulation or order of any governmental
agency or body or any court, domestic or foreign, having jurisdiction over the Company or
any subsidiary of the Company or any of their properties, or any agreement or instrument
to which the Company or any such subsidiary is a party or by which the Company or any such
subsidiary is bound or to which any of the properties of the Company or any such
subsidiary is subject, or the charter or by-laws of the Company or any such subsidiary,
and the Company has full power and authority to authorize, issue and sell the Offered
Securities as contemplated by this Agreement, except that the performance of this
Agreement will not result in a breach or violation of any provision of the by-laws of the
Company that contains restrictions on the ownership of the Company’s equity securities
only on or after the Closing Date.
(i) This Agreement has been duly authorized, executed and delivered by the Company
and the Guarantors. The Registration Rights Agreement and the Ancillary Documents will
have been as of the Closing Date duly authorized, executed and delivered by the Company
and the
Guarantors and will constitute valid and legally binding agreements of the Company
and the
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Guarantors, enforceable against the Company and the Guarantors in accordance with
the agreements’ respective terms. The Warrant Agreement will have been as of the closing
Date duly authorized, executed and delivered by the Company and will constitute a valid
and legally binding agreement of the Company enforceable against the Company in accordance
with its terms. The Ancillary Documents will conform as of the Closing Date to the
descriptions thereof contained in the General Disclosure Package and in the Final Offering
Circular.
(j) Except as disclosed in the General Disclosure Package, the Company and its
subsidiaries have good and marketable title to all real properties and all other
properties and assets owned by them, in each case free from liens, encumbrances and
defects that would materially affect the value thereof or materially interfere with the
use made or to be made thereof by them; and except as disclosed in the General Disclosure
Package, the Company and its subsidiaries hold any leased real or personal property under
valid and enforceable leases with no exceptions that would materially interfere with the
use made or to be made thereof by them in accordance with the terms of such leases.
(k) The Company and its subsidiaries possess adequate certificates, authorities or
permits issued by appropriate governmental agencies or bodies necessary to conduct the
business now operated by them and have not received any notice of proceedings relating to
the revocation or modification of any such certificate, authority or permit that, if
determined adversely to the Company or any of its subsidiaries, would individually or in
the aggregate have a material adverse effect on the condition (financial or other),
business, properties or results of operations of the Company and its subsidiaries taken as
a whole (“Material Adverse Effect”).
(l) No labor dispute with the employees of the Company or any subsidiary exists or,
to the knowledge of the Company, is imminent that might have a Material Adverse Effect.
(m) The Company and its subsidiaries own, possess or can acquire on reasonable
terms, adequate trademarks, trade names and other rights to inventions, know-how, patents,
copyrights, confidential information and other intellectual property (collectively,
“intellectual property rights”) necessary to conduct the business now operated by them, or
presently employed by them, and have not received any notice of infringement of or
conflict with asserted rights of others with respect to any intellectual property rights
that, if determined adversely to the Company or any of its subsidiaries, would
individually or in the aggregate have a Material Adverse Effect.
(n) Except as disclosed in the General Disclosure Package, neither the Company nor
any of its subsidiaries is in violation of any statute, any rule, regulation, decision or
order of any governmental agency or body or any court, domestic or foreign, relating to
the use, disposal or release of hazardous or toxic substances or relating to the
protection or restoration of the environment or human exposure to hazardous or toxic
substances (collectively, “environmental laws”), owns or operates any real property
contaminated with any substance that is subject to any environmental laws, is liable for
any off-site disposal or contamination pursuant to any environmental laws, or is subject
to any claim relating to any environmental laws, which violation, contamination, liability
or claim would individually or in the aggregate have a Material Adverse Effect; and the
Company is not aware of any pending investigation which might lead to such a claim.
(o) Except as disclosed in the General Disclosure Package, there are no pending
actions, suits or proceedings against or affecting the Company, any of its subsidiaries or
any of their respective properties that, if determined adversely to the Company or any of
its subsidiaries, would individually or in the aggregate have a Material Adverse Effect,
or would materially and
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adversely affect the ability of the Company to perform its obligations under the
Indenture, the Warrant Agreement, this Agreement, the Registration Rights Agreement, or
which are otherwise material in the context of the sale of the Offered Securities; and no
such actions, suits or proceedings are threatened or, to the Company’s knowledge,
contemplated.
(p) The financial statements included in the General Disclosure Package present
fairly in all material respects the financial position of the Company and its consolidated
subsidiaries as of the dates shown and their results of operations and cash flows for the
periods shown, and, except as otherwise disclosed in the General Disclosure Package, such
financial statements have been prepared in conformity with the generally accepted
accounting principles in the United States applied on a consistent basis; and the
assumptions used in preparing the pro forma financial statements included in the General
Disclosure Package provide a reasonable basis for presenting the significant
effects directly attributable to the transactions or events described therein, the related
pro forma adjustments give appropriate effect to those assumptions, and the pro forma
columns therein reflect the proper application of those adjustments to the corresponding
historical financial statement amounts.
(q) Except as disclosed in the General Disclosure Package, since the date of the
latest audited financial statements included in the General Disclosure Package there has been no material adverse change, nor any development or event involving a
prospective material adverse change, in the condition (financial or other), business,
properties or results of operations of the Company and its subsidiaries taken as a whole,
and, except as disclosed in or contemplated by the General Disclosure Package, there has
been no dividend or distribution of any kind declared, paid or made by the Company on any
class of its capital stock.
(r) The Company is not subject to the reporting requirements of either Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 and files reports with the Commission
on the Electronic Data Gathering, Analysis, and Retrieval (XXXXX) system.
(s) Neither the Company nor any of the Guarantors is an open-end investment company,
unit investment trust or face-amount certificate company that is or is required to be
registered under Section 8 of the United States Investment Company Act of 1940 (the
“Investment Company Act”); and the Company is not and, after giving effect to the offering
and sale of the Offered Securities and the application of the proceeds thereof as
described in the General Disclosure Package, will not be an “investment company” as
defined in the Investment Company Act.
(t) No securities of the same class (within the meaning of Rule 144A(d)(3) under the
Securities Act) as the Offered Securities are listed on any national securities exchange
registered under Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer
quotation system.
(u) The offer and sale of the Offered Securities in the manner contemplated by this
Agreement will be exempt from the registration requirements of the Securities Act by
reason of Section 4(2) thereof and Regulation S thereunder, and it is not necessary to
qualify an indenture in respect of the Notes under the United States Trust Indenture Act
of 1939, as amended (the “Trust Indenture Act”).
(v) Neither the Company, nor any of its affiliates, nor any person acting on its or
their behalf (i) has, within the six-month period prior to the date hereof, offered or
sold in the United States or to any U.S. person (as such terms are defined in Regulation S
under the Securities Act) the Offered Securities or any security of the same class or
series as the Offered Securities or
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(ii) has offered or will offer or sell the Offered
Securities (A) in the United States by means of any form of general solicitation or
general advertising within the meaning of Rule 502(c) under the
Securities Act or (B) with respect to any such securities sold in reliance on Rule
903 of Regulation S (“Regulation S”) under the Securities Act, by means of any directed
selling efforts within the meaning of Rule 902(c) of Regulation S. The Company, its
affiliates and any person acting on its or their behalf have complied and will comply with
the offering restrictions requirement of Regulation S. The Company has not entered and
will not enter into any contractual arrangement with respect to the distribution of the
Offered Securities except for this Agreement, the Indenture, the Warrant Agreement, the
Registration Rights Agreement and the Ancillary Documents.
(w) The sale of the Offered Securities pursuant to Regulation S is not part of a
plan or scheme to evade the registration provisions of the Securities Act.
(x) The Alion Science and Technology Corporation Employee Ownership, Savings and
Investment Trust (the “ESOT”) has been duly organized and is a validly existing trust.
Except as disclosed in the General Disclosure Package, each of the ESOP Plan Documents (as
defined herein) is in full force and effect and no term or condition thereof has been
amended, modified or waived from the terms and conditions contained in the ESOP Plan
Documents delivered to the Purchaser, except to the extent such amendment, modification or
waiver could not reasonably be anticipated to have a material adverse effect upon the
Purchaser or otherwise have a Material Adverse Effect. The ESOT has performed and
complied in all material respects with all the terms, provisions, agreements and
conditions set forth therein and required to be performed or complied with by the ESOT,
and no unmatured default, default or breach of any covenant by any such party exists
thereunder.
(y) The Company has provided the Purchaser with a complete and true copy of each of
the documents pursuant to which the Alion Science and Technology Corporation Employee
Ownership, Savings and Investment Plan (the “ESOP”) and the ESOT are maintained by the
Company, or which concern the Company’s obligations with respect to the ESOP and ESOT,
which are listed in the attached Schedule C hereto, and are referred to herein as the
“ESOP Plan Documents.” Since delivery of the ESOP Plan Documents and on or prior to the
Closing Date, the Company has not amended or in any other way modified or replaced such
ESOP Plan Documents in any material manner without the prior written consent of the
Purchaser, except for any amendment, modification or replacement required by the Internal
Revenue Service or by applicable law (and the Company shall use its best efforts to
deliver a copy of any such amendment, modification or replacement to the Purchaser prior
to the execution thereof).
(z) None of the assets of the Company constitute, for any purpose of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the
Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), assets of the
ESOP or any other “plan” as defined in Section 3(3) of ERISA or Section 4975 of the
Internal Revenue Code.
(aa) No non-exempt prohibited transaction described in Section 406 of ERISA or
Section 4975 of the Internal Revenue Code has occurred with respect to the ESOP, and none
of the Offered Securities, the Indenture, the Warrant Agreement or this Agreement
hereunder constitutes or shall constitute or give rise to any such non-exempt prohibited
transaction.
(bb) The ESOP is qualified under Section 401(a) of the Internal Revenue Code, and
the ESOP includes two components, one of which is an employee stock ownership plan as
defined in Section 4975(e)(7) of the Internal Revenue Code, and the other is a profit
sharing plan that
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includes a cash or deferred compensation arrangement under Section
401(k) of the Internal Revenue Code.
(cc) To the Company’s knowledge, neither the Offered Securities, nor the Indenture,
nor the Warrant Agreement is (for any purpose of Section 406 of ERISA or Section 4975 of
the Internal Revenue Code) a direct or indirect loan or other transaction between the
Purchaser, any such persons to whom the Purchaser may resell the Offered Securities
(“Repurchasers”) and the ESOT which, if it is assumed that the Purchaser or Repurchasers
are “parties in interest” and “disqualified persons” (as defined in Section 3(14) of ERISA
and Section 4975 of the Internal Revenue Code), is a non-exempt prohibited transaction
described in Section 406 of ERISA or Section 4975 of the Internal Revenue Code.
(dd) Neither the Company nor any of its subsidiaries is or on the Closing Date shall
be subject to the tax imposed by Section 4978 of the Internal Revenue Code with respect to
any “disposition” by the ESOT of any equity interests of the Company.
(ee) There is no investigation or review by any Governmental Authority, or action,
suit, proceeding or arbitration, pending or concluded, concerning any matter with respect
to the ESOP or the ESOT relevant as to whether any representation set forth herein is
inaccurate or breached (other than in respect of (i) periodic requests to the IRS to issue
a favorable determination letter to the effect that the ESOP is and continues to be a
qualified plan and an employee stock ownership plan, (ii) Annual Reports (IRS Form 5500
Series) for the ESOP, (iii) routine claims for ESOP benefits and (iv) routine audits of
contributions to the ESOP), and neither the ESOP fiduciary nor, to the best of the
Company’s knowledge, the ESOT trustee has made any assertion with respect to the ESOP or
the ESOT contrary to or inconsistent with the accuracy of any such representation which
assertion could reasonably be expected to have a Material Adverse Effect.
(ff) Neither the ESOP fiduciary nor the ESOT trustee has made any assertion with
respect to the ESOP or the ESOT contrary to or inconsistent with the accuracy of any
representation or warranty set forth herein that could reasonably be expected to result in
a Material Adverse Event.
(gg) For all of the Company’s taxable periods up to but not including the Closing
Date, the Company has been and will be a valid S corporation under Section 1361 of the
Internal Revenue Code and under the laws of those U.S. states where the Company files or
has filed state income tax returns and which also recognize S corporation status for state
income tax purposes (except for limited periods in certain states during which the Company
filed state income tax returns as a C corporation).
(hh) The Company’s election to be treated as an S corporation for U.S. federal
income tax purposes will terminate on the Closing Date.
(ii) First Priority Lien. The Security Documents will, as of the Closing Date,
represent the only Security Documents necessary to grant to the Collateral Agent for the
benefit of the Secured Parties (as defined in the Security Documents) a valid first
priority lien on the Collateral, subject to Permitted Collateral Liens and Permitted Liens
(each as defined in the Indenture). On and as of the Closing Date:
(i) Upon delivery to the Collateral Agent of any certificates or instruments
representing or evidencing the Pledged Collateral (as defined in the Security
Documents) in accordance with the Security Documents not already delivered to the
collateral agent under the Revolving Credit Facility, and, in the case of
Collateral not constituting
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certificated securities or instruments, upon the filing
of Uniform Commercial Code financing statements in the appropriate filing offices
and the payment by the Collateral Agent of any filing fees associated therewith,
the Collateral Agent will obtain a valid and perfected first priority lien, subject
to Permitted Collateral Liens and Permitted Liens,
upon and security interest in all right, title and interest in such Collateral
for the payment and performance of the Secured Obligations (as defined in the
Security Documents) to the extent that a security interest in such Collateral may
be perfected by such filings; and
(ii) Upon the timely filing by the Collateral Agent of (A) financing
statements, (B) any filings required with the United States Patent and Trademark
Office, (C) any filings required with the United States Copyright Office, and (D)
any filings required to record mortgages or fixtures and the payment by the
Collateral Agent of any filing fees associated therewith, the security interests
granted pursuant to the Security Documents will constitute valid, perfected
security interests, subject to Permitted Collateral Liens and Permitted Liens on
such Collateral described therein in favor of the Collateral Agent for the ratable
benefit of the Secured Parties to the extent that a security interest in such
Collateral may be perfected by such filings.
3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the Purchaser, and the Purchaser agrees to purchase from the Company, at a
purchase price of $945.75 per Unit plus accrued interest from March 22, 2010, to the Closing Date
(as hereinafter defined), 310,000 number of Units.
The Company will deliver against payment of the purchase price the Offered Securities in the
form of one or more permanent global securities in definitive form (the “Global Securities”)
deposited with the Trustee as custodian for The Depository Trust Company (“DTC”) and registered in
the name of Cede & Co., as nominee for DTC. Interests in any permanent Global Securities will be
held only in book-entry form through DTC, except in the limited circumstances described in the
Final Offering Circular. Payment for the Offered Securities shall be made by the Purchaser in
Federal (same day) funds by official check or checks or wire transfer to an account at a bank
acceptable to the Purchaser drawn to the order of the Company at the office of Xxxxx & XxXxxxxx LLP
at 10:00 A.M. (New York time), on March 22, 2010, or at such other time not later than seven full
business days thereafter that the Purchaser and the Company determine, such time being herein
referred to as the “Closing Date”, against delivery to the Trustee as custodian for DTC of the
Global Securities representing all of the Securities. The Global Securities will be made available
for checking at the above office at least 24 hours prior to the Closing Date.
4. Representations by Purchaser; Resale by Purchaser. (a) The Purchaser represents and
warrants to the Company that it is an “accredited investor” within the meaning of Regulation D
under the Securities Act.
(b) The Purchaser acknowledges that the Offered Securities have not been registered
under the Securities Act and may not be offered or sold within the United States or to, or
for the account or benefit of, U.S. persons except in accordance with Regulation S or
pursuant to an exemption from the registration requirements of the Securities Act. The
Purchaser represents and agrees that it has offered and sold the Offered Securities, and
will offer and sell the Offered Securities (i) as part of its distribution at any time and
(ii) otherwise until 40 days after the later of the commencement of the offering and the
Closing Date, only in accordance with Rule 903 or Rule 144A under the Securities Act
(“Rule 144A”). Accordingly, neither the Purchaser, nor its affiliates, nor any persons
acting on its or their behalf, have engaged or will engage in any directed selling efforts
with respect to the Offered Securities, and the Purchaser, its affiliates and all persons
acting on its or their behalf have complied and will comply with the offering
9
restrictions
requirement of Regulation S. The Purchaser agrees that, at or prior to confirmation of
sale of the Offered Securities, other than a sale pursuant to Rule 144A, the Purchaser
will have sent to each distributor, dealer or person receiving a selling concession, fee
or other remuneration that purchases the Offered Securities from it during the restricted
period a confirmation or notice to substantially the following effect:
“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold within the United States or to, or for the account or
benefit of, U.S. persons (i) as part of their distribution at any time or
(ii) otherwise until 40 days after the later of the date of the
commencement of the offering and the closing date, except in either case
in accordance with Regulation S (or Rule 144A if available) under the
Securities Act. Terms used above have the meanings given to them by
Regulation S.”
Terms used in this subsection (b) have the meanings given to them by Regulation S.
(c) The Purchaser agrees that it and each of its affiliates have not entered and
will not enter into any contractual arrangement with respect to the distribution of the
Offered Securities except with the prior written consent of the Company.
(d) The Purchaser agrees that it and each of its affiliates will not offer or sell
the Offered Securities in the United States by means of any form of general solicitation
or general advertising within the meaning of Rule 502(c) under the Securities Act,
including, but not limited to (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over
television or radio, or (ii) any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising. The Purchaser agrees, with respect to
resales made in reliance on Rule 144A of any of the Offered Securities, to deliver either
with the confirmation of such resale or otherwise prior to settlement of such resale a
notice to the effect that the resale of such Offered Securities has been made in reliance
upon the exemption from the registration requirements of the Securities Act provided by
Rule 144A.
(e) The Purchaser represents and agrees that (i) it has not offered or sold and
prior to the expiry of a period of six months from the closing date, will not offer or
sell any Offered Securities to persons in the United Kingdom except to persons whose
ordinary activities involve them in acquiring, holding, managing or disposing of
investments (as principal or agent) for the purposes of their businesses or otherwise in
circumstances which have not resulted and will not result in an offer to the public in the
United Kingdom within the meaning of the Public Offers of Securities Regulations 1995;
(ii) it has only communicated or caused to be communicated and will only communicate or
cause to be communicated any invitation or inducement to engage in investment activity
(within the meaning of section 21 of the Financial Services and Markets Act 2000 (the
“FSMA”)) received by it in connection with the issue or sale of any Offered Securities in
circumstances in which section 21(1) of the FSMA does not apply to the Company or the
Guarantors; and (iii) it has complied and will comply with all applicable provisions of
the FSMA with respect to anything done by it in relation to the Offered Securities in,
from or otherwise involving the United Kingdom
5. Certain Agreements of the Company. The Company agrees with the Purchaser that:
(a) The Company will advise the Purchaser promptly of any proposal to amend or
supplement the Preliminary Offering Circular or Final Offering Circular and will not
effect such
10
amendment or supplementation without the Purchaser’s consent, such consent not
to be unreasonably withheld or delayed. If, at any time prior to the completion of the
resale of the Offered Securities by the Purchaser, there occurs an event or development as
a result of which any document included in the Preliminary Offering Circular or Final
Offering Circular, the General Disclosure Package or any Supplemental Marketing Material
included or would include an untrue statement of a material fact or omitted or would omit
to state any material fact necessary in order to make the statements therein, in the light
of the circumstances prevailing at
such time, not misleading, or if it is necessary at any such time to amend or
supplement the Preliminary Offering Circular or Final Offering Circular, the General
Disclosure Package or any Supplemental Marketing Material to comply with any applicable
law, the Company promptly will notify the Purchaser of such event and promptly will
prepare, at its own expense, an amendment or supplement which will correct such statement
or omission or effect such compliance. Neither the Purchaser’s consent to, nor its
delivery to offerees or investors of, any such amendment or supplement shall constitute a
waiver of any of the conditions set forth in Section 6. The first sentence of this
subsection does not apply to statements in or omissions from any document in the
Preliminary Offering Circular or Final Offering Circular, the General Disclosure Package
or any Supplemental Marketing Material made in reliance upon and in conformity with
written information furnished to the Company by the Purchaser specifically for use
therein, it being understood and agreed that the only such information is that described
as such in Section 8(b) hereof.
(b) The Company will furnish to the Purchaser copies of the Preliminary Offering
Circular, each other document comprising a part of the General Disclosure Package, the
Final Offering Circular, all amendments and supplements to such documents and each item of
Supplemental Marketing Material, in each case as soon as available and in such quantities
as the Purchaser reasonably requests, and the Company will furnish to the Purchaser on the
date hereof three copies of each of the foregoing documents signed by a duly authorized
officer of the Company, one of which in the case of the Preliminary Offering Circular and
Final Offering Circular will include the independent accountants’ reports manually signed
(or signed by facsimile to be followed up with a manual signature if requested after the
Closing Date by Purchaser) by such independent accountants. At any time when the Company
is not subject to Section 13 or 15(d) of the Exchange Act, the Company will promptly
furnish or cause to be furnished to the Purchaser and, upon request of holders and
prospective purchasers of the Offered Securities, to such holders and purchasers, copies
of the information required to be delivered to holders and prospective purchasers of the
Offered Securities pursuant to Rule 144A(d)(4) under the Securities Act (or any successor
provision thereto) in order to permit compliance with Rule 144A in connection with resales
by such holders of the Offered Securities. The Company will pay the expenses of printing
and distributing to the Purchaser all such documents.
(c) The Company will arrange for the qualification of the Offered Securities for
sale and the determination of their eligibility for investment under the laws of such
jurisdictions in the United States and Canada as the Purchaser designates and will
continue such qualifications in effect so long as required for the resale of the Offered
Securities by the Purchaser, provided that the Company will not be required to qualify as
a foreign corporation or to file a general consent to service of process in any such
state.
(d) During the period of two years after the Closing Date, the Company will, upon
request, furnish to the Purchaser and any holder of Offered Securities a copy of the
restrictions on transfer applicable to the Offered Securities.
11
(e) During the period of two years after the Closing Date, the Company will not, and
will not permit any of its affiliates (as defined in Rule 144 under the Securities Act)
to, resell any of the Offered Securities that have been reacquired by any of them.
(f) During the period of two years after the Closing Date, the Company will not be
or become, an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of the
Investment Company Act.
(g) The Company will pay all expenses incidental to the performance of its
obligations under this Agreement, the Warrant Agreement, the Indenture, the Registration
Rights Agreement
and the Ancillary Documents, including (i) the fees and expenses of the Trustee, the
Warrant Agent and their professional advisers; (ii) all expenses in connection with the
execution, issue, authentication, packaging and initial delivery of the Offered Securities
and, as applicable, the Exchange Securities (as defined in the Registration Rights
Agreement), the preparation and printing of this Agreement, the Registration Rights
Agreement, the Ancillary Documents, the Offered Securities, the Indenture, the Warrant
Agreement, the Preliminary Offering Circular, any other documents comprising any part of
the General Disclosure Package, the Final Offering Circular, all amendments and
supplements thereto, each item of Supplemental Marketing Material and any other document
relating to the issuance, offer, sale and delivery of the Offered Securities and as
applicable, the Exchange Securities; (iii) the cost of any advertising approved by the
Company in connection with the issue of the Offered Securities; (iv) any expenses
(including reasonable fees and disbursements of counsel) incurred in connection with
qualification of the Offered Securities or the Exchange Securities for sale under the laws
of such jurisdictions in the United States and Canada as the Purchaser designates and the
printing of memoranda relating thereto; (v) for any fees charged by investment rating
agencies for the rating of the Offered Securities or the Exchange Securities; (vi) for
expenses incurred in distributing the Preliminary Offering Circular, any other documents
comprising any part of the General Disclosure Package, the Final Offering Circular
(including any amendments and supplements thereto) and any Supplemental Marketing Material
to the Purchaser; and (vii) any reasonable fees and expenses in connection with the
creation and perfection of liens on the Collateral pursuant to the Security Documents
(including reasonable fees and disbursements of counsel to the Initial Purchaser related
thereto), including in connection with the filing of financing statements, fixture filings
and filings with the United States Patent and Trademark Office and Copyright Office. The
Company will also pay or reimburse the Purchaser (to the extent incurred by them) for all
travel expenses of the Purchaser and the Company’s officers and employees and any other
expenses of the Purchaser and the Company in connection with attending or hosting meetings
with prospective purchasers of the Offered Securities from the Purchaser.
(h) In connection with the offering, until the Purchaser shall have notified the
Company of the completion of the resale of the Offered Securities, neither the Company nor
any of its affiliates has or will, either alone or with one or more other persons, bid or
purchase for any account in which it or any of its affiliates has a beneficial interest
any Offered Securities or attempt to induce any person to purchase any Offered Securities;
and neither it nor any of its affiliates will make bids or purchases for the purpose of
creating actual, or apparent, active trading in, or of raising the price of, the Offered
Securities.
(i) For a period of 180 days after the date of the initial offering of the Offered
Securities by the Purchaser, the Company will not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, or file with the Commission a registration
statement under the Securities Act (other than as contemplated by the Registration Rights
Agreement) relating to, any United States dollar-denominated debt securities issued or
guaranteed by the Company and having a maturity of more than one year from the date of
issue. The Company will not at any
12
time offer, sell, contract to sell, pledge or otherwise
dispose of, directly or indirectly, any securities under circumstances where such offer,
sale, pledge, contract or disposition would cause the exemption afforded by Section 4(2)
of the Securities Act or the safe harbor of Regulation S thereunder to cease to be
applicable to the offer and sale of the Offered Securities.
6. Free Writing Communications. (a) The Company represents and agrees that, unless it
obtains the prior consent of the Purchaser and the Purchaser’s Counsel (as defined below), and the
Purchaser represents and agrees that, unless it obtains the prior consent of the Company and the
Company’s Counsel (as defined below), it has not made and will not make any offer relating to the
Offered Securities that would constitute an Issuer Free Writing Communication.
(b) The Company consents to the use by the Purchaser of a Free Writing Communication
that (i) contains only (A) information describing the preliminary terms of the Offered
Securities or their offering or (B) information that describes the final terms of the
Offered Securities or their offering and that is included in the Terms Communication or is
included in or is subsequently included in the Final Offering Circular or (ii) does not
contain any material information about the Company or its securities that was provided by
or on behalf of the Company, it being understood and agreed that any such Free Writing
Communication referred to in clause (i) or (ii) shall not be an Issuer Free Writing
Communication for purposes of this Agreement.
7. Conditions of the Obligation of the Purchaser. The obligation of the Purchaser to purchase
and pay for the Offered Securities will be subject to the accuracy of the representations and
warranties on the part of the Company and the Guarantors herein, to the accuracy of the statements
of officers of the Company and the Guarantors made pursuant to the provisions hereof, to the
performance by the Company and the Guarantors of their obligations hereunder and to the following
additional conditions precedent:
(a) The Purchaser shall have received a letter, dated the date of this Agreement, of
Deloitte & Touche LLP, in form and substance reasonably satisfactory to the Purchaser
concerning the financial information with respect to the Company set forth in the General
Disclosure Package and the Preliminary Offering Circular.
(b) Subsequent to the execution and delivery of this Agreement, there shall not have
occurred (i) any change, or any development or event involving a prospective change, in
the condition (financial or other), business, properties or results of operations of the
Company and its subsidiaries taken as one enterprise which, in the judgment of the
Purchaser, is material and adverse and makes it impractical or inadvisable to proceed with
completion of the offering or the sale of and payment for the Offered Securities; (ii) any
downgrading in the rating of any debt securities of the Company by any “nationally
recognized statistical rating organization” (as defined for purposes of Rule 436(g) under
the Securities Act), or any public announcement that any such organization has under
surveillance or review its rating of any debt securities of the Company (other than an
announcement with positive implications of a possible upgrading, and no implication of a
possible downgrading, of such rating) or any announcement that the Company has been placed
on negative outlook; (iii) any change in U.S. or international financial, political or
economic conditions or currency exchange rates or exchange controls as would, in the
reasonable judgment of the Purchaser, be likely to prejudice materially the success of the
proposed issue, sale or distribution of the Offered Securities, whether in the primary
market or in respect of dealings in the secondary market, (iv) any material suspension or
material limitation of trading in securities generally on the New York Stock Exchange, or
any setting of minimum prices for trading on such exchange; (v) any banking moratorium
declared by U.S. Federal or New York authorities; (vi) any major disruption of settlements
of securities or clearance services
13
in the United States or (vii) any attack on, outbreak
or escalation of hostilities or act of terrorism involving the United States, any
declaration of war by Congress or any other national or international calamity or
emergency if, in the judgment of the Purchaser, the effect of any such attack, outbreak,
escalation, act, declaration, calamity or emergency makes it impractical or inadvisable to
proceed with completion of the offering or sale of and payment for the Offered Securities.
(c) The Purchaser shall have received opinions, dated the Closing Date, of Xxxxx &
XxXxxxxx, counsel for the Company and the Guarantors, Xxxxxx X. Xxxxxxxx, Esq., Associate
General Counsel of the Company (the “Company’s Counsel”) and Xxxxx Xxxxxxx & Xxxx LLP,
special Colorado counsel for Alion — MA&D Corporation, in each case in form and substance
reasonably satisfactory to the Purchaser.
(d) The Purchaser shall have received from Cravath, Swaine & Xxxxx LLP, counsel for
the Purchaser (the “Purchaser’s Counsel”), (i) such opinion or opinions, dated the Closing
Date and with reference to same in the Final Offering Circular, with respect to the
incorporation of the Company, the validity of the Offered Securities, the exemption from
registration for the offer and sale of the Offered Securities by the Company to the
Purchaser and the initial resale by the Purchaser as contemplated hereby and other related
matters as the Purchaser may require, and (ii) such Rule 10b-5 statement with respect to
the Final Offering Circular and the General Disclosure Package, and the Company shall have
furnished to such counsel such documents as they request for the purpose of enabling them
to pass upon such matters.
(e) The Purchaser shall have received a certificate, dated the Closing Date, of the
President or any Vice President and a principal financial or accounting officer of the
Company in which such officers shall state that, to the best of their knowledge after
reasonable investigation, the representations and warranties of the Company and the
Guarantors in this Agreement are true and correct, that the Company has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date, and that, subsequent to the respective dates of the most
recent financial statements in the General Disclosure Package, there has been
no material adverse change, nor any development or event involving a prospective material
adverse change, in the condition (financial or other), business, properties or results of
operations of the Company and its subsidiaries taken as a whole except as set forth in the
General Disclosure Package or as described in such certificate.
(f) Each of the Company and the Guarantors shall have delivered to the Purchaser,
among other documents and certificates as the Purchaser shall reasonably request,
Secretary’s Certificates, dated the Closing Date, with respect to the Company and each of
the Guarantors: (i) certificates of incorporation; (ii) by-laws, (iii) resolutions of the
Board of Directors of each entity, (iv) certificates of good standing from the
jurisdiction of incorporation of each such entity and (v) certificates of good standing
and/or qualifications to do business as a foreign corporation in such jurisdictions as the
Purchaser shall reasonably request.
(g) The Company and each of the Guarantors shall have executed the Registration
Rights Agreement and the Indenture, and the Company shall have executed the Warrant
Agreement, and the Company shall have provided the Purchasers with a copy of each. The
Security Documents shall have been duly executed and delivered by a duly authorized
officer of each of the Company, the Guarantors, the Trustee and the Collateral Agent.
(h) The Purchaser shall have a received letter, dated the Closing Date, from
Deloitte & Touche LLP which meets the requirements of subsection (a) of this Section
concerning the financial information with respect to the Company set forth in the General
Disclosure Package
14
and the Final Offering Circular, to the extent applicable, except that
the specified date referred to in such subsection will be a date not more than three days
prior to the Closing Date for the purposes of this subsection.
(i) The Term B Senior Credit Facility shall have been terminated and all amounts
outstanding thereunder shall have been repaid in full;
(j) The IIT Redemption (as defined in the Final Offering Memorandum) shall have been
consummated substantially on the terms described in the Final Offering Memorandum;
(k) The Credit Agreement relating to the Revolving Credit Facility shall have been
executed by all parties thereto;
(l) The Board of Directors of the Company shall have approved the Amended and
Restated By-laws, in the form of Schedule G attached hereto; and
(m) The Company shall have delivered all information necessary in order to prepare
all financing statements, United States Patent and Trademark Office and Copyright Office
filings, fixture filings and all other documents or instruments necessary in order to
perfect a security interest in the Collateral.
The Company will furnish the Purchaser with such conformed copies of such opinions,
certificates, letters and documents as the Purchaser reasonably requests. The Purchaser may in its
sole discretion waive compliance with any conditions to the obligations of the Purchaser hereunder,
whether in respect of the Closing Date or otherwise.
8. Indemnification and Contribution. (a) The Company and the Guarantors will, jointly and
severally, indemnify and hold harmless the Purchaser, its officers, partners, members, directors
and its affiliates and each person, if any, who controls such Purchaser within the meaning of
Section 15 of the Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which the Purchaser may become subject, under the Securities Act or the Exchange Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of any material
fact contained in the Preliminary Offering Circular or the Final Offering Circular, in each case as
amended or supplemented, or any Issuer Free Writing Communication or the Exchange Act Reports, or
arise out of or are based upon the omission or alleged omission to state therein a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading and will reimburse the Purchaser for any legal or other expenses
reasonably incurred by the Purchaser in connection with investigating or defending any such loss,
claim, damage, liability or action as such expenses are incurred; provided, however, that the
Company will not be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue statement in or
omission or alleged omission from any of such documents in reliance upon and in conformity with
written information furnished to the Company by the Purchaser specifically for use therein, it
being understood and agreed that the only such information consists of the information described as
such in subsection (b) below.
(b) The Purchaser will indemnify and hold harmless the Company and the Guarantors,
their respective directors and officers and each person, if any, who controls the Company
and the Guarantors within the meaning of Section 15 of the Securities Act, against any
losses, claims, damages or liabilities to which the Company may become subject, under the
Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Preliminary
Offering Circular or the Final Offering Circular,
15
in each case as amended or supplemented,
or any Issuer Free Writing Communication or arise out of or are based upon the omission or
the alleged omission to state therein a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to the Company by the Purchaser
specifically for use therein, and will reimburse any legal or other expenses reasonably
incurred by the Company in connection with investigating or defending any such loss,
claim, damage, liability or action as such expenses are incurred, it being understood and
agreed that the only such information furnished by the Purchaser consists of the following
information in the Preliminary Offering Circular and Final Offering Circular: under the
caption “Plan of Distribution”, the first sentence of the third paragraph and the third
sentence of the ninth paragraph; provided, however, that the Purchaser shall not be liable
for any losses, claims, damages or liabilities arising out of or based upon the Company’s
failure to perform its obligations under Section 5(a) of this Agreement.
(c) Promptly after receipt by an indemnified party under this Section of notice of
the commencement of any action, such indemnified party will, if a claim in respect thereof
is to be made against the indemnifying party under subsection (a) or (b) above, notify the
indemnifying party of the commencement thereof; but the failure to notify the indemnifying
party shall not relieve it from any liability that it may have under subsection (a) or (b)
above except to the extent that it has been materially prejudiced (through the forfeiture
of substantive rights or defenses) by such failure; and provided further that the failure
to notify the indemnifying party shall not relieve it from any liability that it may have
to an indemnified party otherwise than under subsection (a) or (b) above. In case any
such action is brought against any indemnified party and it notifies the indemnifying
party of the commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other indemnifying party
similarly notified, to assume the defense thereof, with counsel satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified party, be
counsel to the indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party
will not be liable to such indemnified party under this Section for any legal or other
expenses subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation. No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement of any pending
or threatened action in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party unless such
settlement includes (i) an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action 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 indemnified party.
(d) If the indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of the losses, claims, damages or liabilities referred to in subsection
(a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company on the one hand and the Purchaser on the other from the offering
of the Offered Securities or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the
Company on the one hand and the Purchaser on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities as well as any
other relevant equitable considerations. The relative benefits received by the Company on
16
the one hand and the Purchaser on the other shall be deemed to be in the same proportion
as the total net proceeds from the offering (before deducting expenses) received by the
Company bear to the total discounts and commissions received by the Purchaser from the
Company under this Agreement. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to information supplied
by the Company or the Purchaser and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The
amount paid by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this subsection (d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the subject of
this subsection (d). Notwithstanding the provisions of this subsection (d), the Purchaser
shall not be required to contribute any amount in excess of the amount by which the total
price at which the Offered Securities purchased by it were resold exceeds the amount of
any damages which the Purchaser has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.
(e) The obligations of the Company and the Guarantors under this Section shall be in
addition to any liability which the Company and the Guarantors may otherwise have and
shall extend, upon the same terms and conditions, to each person, if any, who controls the
Purchaser within the meaning of the Securities Act or the Exchange Act; and the
obligations of the Purchaser under this Section shall be in addition to any liability
which the Purchaser may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act.
9. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or its officers, the
Guarantors or their officers and of the Purchaser set forth in or made pursuant to this Agreement
will remain in full force and effect, regardless of any investigation, or statement as to the
results thereof, made by or on behalf of the Purchaser, the Company or any of their respective
representatives, officers or directors or any controlling person, and will survive delivery of and
payment for the Offered Securities. Subject to the immediately following sentence, if for any
reason the purchase of the Offered Securities by the Purchaser is not consummated, the Company and
the Guarantors shall remain jointly and severally responsible for the expenses to be paid or
reimbursed by it pursuant to Section 5 and the respective obligations of the Company, the
Guarantors and the Purchaser pursuant to Section 8 shall remain in effect. If the purchase of the
Offered Securities by the Purchaser is not consummated for any reason other than solely because of
the occurrence of any event specified in clause (iii), (iv), (v), (vi), (vii) or (viii) of Section
7(b), the Company will reimburse the Purchaser for all out-of-pocket expenses (including reasonable
fees and disbursements of counsel) reasonably incurred by it in connection with the offering of the
Offered Securities.
10. Notices. All communications hereunder will be in writing and, if sent to the Purchaser
will be mailed, delivered or telegraphed and confirmed to the Purchaser at Xxxxxx Xxxxxxx Xxxxxx,
Xxx Xxxx, X.X. 10010-3629, Attention: LCD-IBD, or, if sent to the Company or the Guarantors, will
be mailed, delivered or telegraphed and confirmed to them at 0000 Xxxxxx Xxxxxxxxx, XxXxxx,
Xxxxxxxx 00000, Attention: Associate General Counsel.
11. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the controlling persons referred to in Section 8, and no
other person will have any right or obligation hereunder, except that holders of Offered Securities
shall be entitled to enforce the agreements for their benefit contained in the second and third
sentences of Section 5(b) hereof against the Company as if such holders were parties thereto.
17
12. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the
same Agreement.
13. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) the Purchaser has been retained solely to act as initial purchaser in connection
with the initial purchase, offering and resale of the Offered Securities and that no
fiduciary, advisory or agency relationship between the Company and the Purchaser has been
created in respect of any of the transactions contemplated by this Agreement or the
Preliminary or Final Offering Circular, irrespective of whether the Purchaser has advised
or is advising the Company on other matters;
(b) the purchase price of the Offered Securities set forth in this Agreement was
established by the Company following discussions and arms-length negotiations with the
Purchaser and the Company is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated by this
Agreement;
(c) the Company has been advised that the Purchaser and its affiliates are engaged
in a broad range of transactions which may involve interests that differ from those of the
Company and that the Purchaser has no obligation to disclose such interests and
transactions to Company by virtue of any fiduciary, advisory or agency relationship; and
(d) the Company waives, to the fullest extent permitted by law, any claims it may
have against the Purchaser for breach of fiduciary duty or alleged breach of fiduciary
duty and agrees that the Purchaser shall have no liability (whether direct or indirect) to
the Company in respect of such a fiduciary duty claim or to any person asserting a
fiduciary duty claim on behalf of or in right of the Company, including stockholders,
employees or creditors of the Company.
14. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York without regard to principles of conflicts of laws.
15. Jurisdiction. The Company and each of the Guarantors hereby submit to the non-exclusive
jurisdiction of the Federal and state courts in the Borough of Manhattan in The City of New York in
any suit or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.
18
If the foregoing is in accordance with the Purchaser’s understanding of our agreement, kindly
sign and return to us one of the counterparts hereof, whereupon it will become a binding agreement
between the Company, the Guarantors and the Purchaser in accordance with its terms.
Very truly yours, ALION SCIENCE AND TECHNOLOGY CORPORATION |
||||
By: | /s/ Xxxxxxx X. Xxxxx | |||
Title: Chief Financial Officer | ||||
HUMAN FACTORS APPLICATIONS, INC., |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
ALION-METI CORPORATION, |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
ALION-CATI CORPORATION, |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
ALION-JJMA CORPORATION, |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
ALION-BMH CORPORATION, |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
WASHINGTON CONSULTING, INC., |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
ALION-MA&D CORPORATION, |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
ALION-IPS CORPORATION, |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
19
WASHINGTON CONSULTING GOVERNMENT SERVICES, INC., |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
ALION CANADA (US) CORPORATION, |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx | |||
Title: Secretary | ||||
20
The foregoing Purchase Agreement
is hereby confirmed and accepted
as of the date first above written.
is hereby confirmed and accepted
as of the date first above written.
Credit Suisse Securities (USA) LLC |
||||
By: | /s/ Xxxxx Xxxxxxxx | |||
Title: Managing Director | ||||
SCHEDULE A
General Disclosure Package
General Disclosure Package
1. | Terms Communication. |
22
SCHEDULE B
Subsidiary Guarantors
Subsidiary Guarantors
Human Factors Applications, Inc.
|
Pennsylvania | |
Alion — METI Corporation
|
Xxxxxxxx | |
Xxxxx — CATI Corporation
|
California | |
Alion — JJMA Corporation
|
New York | |
Alion — BMH Corporation
|
Xxxxxxxx | |
Xxxxxxxxxx Consulting, Inc.
|
Xxxxxxxx | |
Xxxxx — MA&D Corporation
|
Colorado | |
Alion — IPS Corporation
|
Xxxxxxxx | |
Xxxxxxxxxx Consulting Government Services, Inc.
|
Xxxxxxxx | |
Xxxxx Canada (US) Corporation
|
Delaware |
23
SCHEDULE C
ESOP Plan Documents
ESOP Plan Documents
1. | IRS Determination Letter issued by the U.S. Internal Revenue Service, dated September 11, 2003, and related correspondence | ||
2. | IRS Determination Letter issued by the U.S. Internal Revenue Service, dated August 09, 2005, and related correspondence | ||
3. | Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan, as amended and restated as of December 19, 2001 | ||
4. | First Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
5. | Second Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
6. | Third Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
7. | Fourth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
8. | Fifth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
9. | Sixth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
10. | Seventh Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
11. | Eighth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
12. | Ninth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
13. | Tenth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
14. | Eleventh Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
15. | Twelfth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
16. | Thirteenth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
17. | Fourteenth Amendment to the Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
18. | Amended and Restated Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan, dated October 1, 2006 |
24
19. | First Amendment to Amended and Restated Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan | ||
20. | Second Amendment to Amended and Restated Alion Science and Technology Corporation Employee Ownership, Savings and Investment Plan |
25
SCHEDULE D
Terms Communication
Terms Communication
Issuer:
|
Alion Science and Technology Corporation (the “Company”) | |||
Book-Runner:
|
Credit Suisse Securities (USA) LLC | |||
Units |
||||
Security Description:
|
310,000 Units, each consisting of $1,000 principal amount of 12% Senior Secured Notes due 2014 and one Warrant to purchase 1.9439 shares of common stock. | |||
Gross Proceeds:
|
$302,250,000, $10 million of which may be used to acquire existing senior unsecured notes. | |||
Issue Price:
|
$975 per Unit | |||
Trade Date
|
March 11, 2010 | |||
Settlement Date:
|
March 22, 2010 (T+7) | |||
Separation Date:
|
The Secured Notes and Warrants comprising the Units will not be able to trade separately until the earlier of: (a) the date that is three months after the warrants issue date and (b) the date of the closing of an exchange offer for the Notes or the effective date of a shelf registration statement with respect to the Notes. | |||
CUSIP:
|
144A: 016275 AH2 RegS: U01426 AB8 |
|||
ISIN:
|
144A: US016275AH21 RegS: USU01426AB87 |
|||
Allocation:
|
$907.95 of the issue price to each Secured Note and $67.05 of the issue price to each Warrant; provided that no court is bound by such allocation and any recovery on the Secured Notes in a bankruptcy proceeding could be limited based on the ultimate allocation of the issue price to the Secured Notes. | |||
Notes |
||||
Security Description:
|
Senior Secured Notes | |||
Principal Amount:
|
$310,000,000 |
26
Maturity:
|
November 1, 2014 | |||
Coupon:
|
12.000% payable 10.000% in cash and 2.000% by increasing the principal amount of the Secured Notes | |||
Ratings:
|
B1 / B | |||
Interest Payment Dates:
|
May 1 and November 1 | |||
Commencing:
|
May 1, 2010 | |||
Equity Clawback:
|
Prior to April 1, 2013 may redeem up to 35% at 112.000% | |||
Optional Redemption:
|
Callable during the following periods at the following prices: |
Date | Price | |||
April 1, 2013 to September 30, 2013 |
105.0 | % | ||
October 1, 2013 to March 31, 2014 |
103.0 | % | ||
April 1, 2014 to Maturity |
100.0 | % |
Not more than once in any twelve-month period prior to April 1, 2013, may redeem up to $31 million in principal amount of the Secured Notes at a redemption price of 103% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date. | ||||
CUSIP:
|
144A: 016275 AK5 RegS: U01426 AC6 |
|||
ISIN:
|
144A: US016275AK59 RegS: USU01426AC60 |
|||
Minimum Allocations:
|
$1,000 | |||
Increments:
|
$1,000 | |||
Restricted Payments
|
Clause (b)(2) of the covenant described under “Limitation on Restricted Payments” is revised from that appearing in the preliminary offering circular to be restated in its entirety as follows: | |||
(2) any purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of Indebtedness of the Company or a Subsidiary Guarantor made by exchange for, or out of the proceeds of the substantially concurrent Incurrence of, Indebtedness of such Person which is permitted to be Incurred pursuant to the covenant described under “— Limitation on Indebtedness”; |
27
provided,
however, that such purchase, repurchase, redemption,
defeasance or other acquisition or retirement for
value shall be excluded in the calculation of the
amount of Restricted Payments; Clause (3) of the definition of “Restricted Payment” is revised from that appearing in the preliminary offering circular to be restated in its entirety as follows: (3) the purchase, repurchase, redemption, defeasance or other acquisition or retirement for value, prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment of any Indebtedness, including the Existing Notes and any Subordinated Obligations, but excluding any Secured Indebtedness, of the Company or any Subsidiary Guarantor (other than from the Company or a Restricted Subsidiary); or The following new clause (13) will be added to paragraph (b) of the covenant described under “Limitation on Restricted Payments” in the preliminary offering circular, and the numbering of subsequent clauses and cross-references to subsequent clauses will be updated accordingly: (13) any purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of Existing Notes up to an aggregate amount of $10 million; provided, however, that such purchase, repurchase, redemption, defeasance or other acquisition or retirement for value shall be excluded in the calculation of the amount of Restricted Payments; and |
||||
Warrants |
||||
Security Description:
|
310,000 Warrants to purchase an aggregate of 602,614 shares of common stock, par value $0.01 per share, representing 10% of our common stock on a fully diluted basis as of the issue date. | |||
Exercise Price:
|
$0.01 per share of common stock | |||
Exercise Date:
|
Exercisable on or after first anniversary of issue date. | |||
Expiration Date:
|
March 15, 2017 | |||
CUSIP:
|
144A: 016275 158 RegS: U01426 102 |
|||
ISIN:
|
144A: US0162751582 RegS: USU014261023 |
28
SCHEDULE E
Issuer Free Writing Communications
Issuer Free Writing Communications
1. | The Supplement dated March 11, 2010 to the Preliminary Offering Circular. |
29
SCHEDULE F
Subsidiary List
Subsidiary List
Name | Jurisdiction | |||
1.
|
Human Factors Applications, Inc. | Pennsylvania | ||
2.
|
Alion — METI Corporation | Virginia | ||
3.
|
Alion — CATI Corporation | California | ||
4.
|
Alion — JJMA Corporation | New York | ||
5.
|
Alion — BMH Corporation | Virginia | ||
6.
|
Washington Consulting, Inc. | Virginia | ||
7.
|
Alion — MA&D Corporation | Colorado | ||
8.
|
Alion Technical Services Corporation | Virginia | ||
9.
|
Alion Technical Services Corporation | Delaware | ||
10.
|
Alion Canada (US) Corporation | Delaware | ||
11.
|
Alion — IPS Corporation | Virginia | ||
12.
|
Inovative Technologies Solutions Corporation | New Mexico | ||
13.
|
Alion Science and Technology (Canada) Corporation | Nova Scotia | ||
14.
|
Washington Consulting Government Services, Inc. | Virginia |
30
SCHEDULE G
Amended and Restated Bylaws of
Alion Science and Technology Corporation
Amended and Restated Bylaws of
Alion Science and Technology Corporation
31