$250,000,000
$250,000,000 6.125%
Notes due 0000
Xxxxxxxxxxxx Xxxxxxxxx
Xxx Xxxx, Xxx Xxxx
August
11, 2009
To the Representatives named in
Schedule I hereto of the several
Underwriters named in
Schedule II hereto
Ladies and Gentlemen:
Snap-on
Incorporated, a corporation organized under the laws of Delaware (the
“Company”), proposes to sell to the several underwriters named in Schedule II
hereto (the “Underwriters”), for whom you (the “Representatives”) are
acting as representatives, the principal amount of its securities identified in Schedule I
hereto (the “Securities”), to be issued under an indenture (the
“Indenture”) dated as of January 8, 2007, between the Company and U.S. Bank
National Association, a national banking corporation, as trustee (the
“Trustee”). To the extent there are no additional Underwriters listed on
Schedule II other than you, the term Representatives as used herein shall mean you, as
Underwriters, and the terms Representatives and Underwriters shall mean either the
singular or plural as the context requires. Any reference herein to the Registration
Statement, the Base Prospectus, any Preliminary Prospectus or the Final Prospectus shall
be deemed to refer to and include the documents incorporated by reference therein pursuant
to Item 12 of Form S-3 which were filed under the Exchange Act on or before the Effective
Date of the Registration Statement or the issue date of the Base Prospectus, any
Preliminary Prospectus or the Final Prospectus, as the case may be; and any reference
herein to the terms “amend”, “amendment” or “supplement”
with respect to the Registration Statement, the Base Prospectus, any Preliminary
Prospectus or the Final Prospectus shall be deemed to refer to and include the filing of
any document under the Exchange Act after the Effective Date of the Registration Statement
or the issue date of the Base Prospectus, any Preliminary Prospectus or the Final
Prospectus, as the case may be, deemed to be incorporated therein by reference. Certain
terms used herein are defined in Section 21 hereof.
1. Representations
and Warranties. The Company represents and warrants to, and agrees with,
each Underwriter as set forth below in this Section 1:
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(a) The
Company meets the requirements for use of Form S-3 under the Securities Act
and has prepared and filed with the Commission an “automatic shelf
registration statement” (as defined in Rule 405) on Form S-3 (File
No. 333-139863) and post-effective amendment no. 1 thereto, including a
related Base Prospectus, for registration under the Securities Act of the
offering and sale of the Securities. Such Registration Statement,
including post-effective amendment no. 1 thereto and any other amendments
thereto filed prior to the Execution Time, became effective upon filing.
The Company may have filed with the Commission, as part of an amendment to
the Registration Statement or pursuant to Rule 424(b), one or more
preliminary prospectus supplements relating to the Securities, each of
which has previously been furnished to you. The Company will file with the
Commission a final prospectus supplement relating to the Securities in
accordance with Rule 424(b). As filed, such final prospectus supplement
shall contain all information required by the Securities Act and the rules
thereunder and, except to the extent the Representatives shall agree in
writing to a modification, shall be in all substantive respects in the
form furnished to you prior to the Execution Time or, to the extent not
completed at the Execution Time, shall contain only such specific
additional information and other changes (beyond that contained in the
Base Prospectus and any Preliminary Prospectus) as the Company has advised
you, prior to the Execution Time, will be included or made therein. The
Registration Statement, at the Execution Time, meets the requirements set
forth in Rule 415(a)(1)(x).
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(b) On
each Effective Date, the Registration Statement did, and when the Final
Prospectus is first filed in accordance with Rule 424(b) and on the
Closing Date, the Final Prospectus (and any supplement thereto) will,
comply in all material respects with the applicable requirements of the
Securities Act, the Exchange Act and the Trust Indenture Act and the
respective rules thereunder; on each Effective Date and at the Execution
Time, the Registration Statement did not and will not contain any untrue
statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein
not misleading; on the Effective Date and on the Closing Date the
Indenture did or will comply in all material respects with the applicable
requirements of the Trust Indenture Act and the rules thereunder; and on
the date of any filing pursuant to Rule 424(b) and on the Closing Date, the
Final Prospectus (together with any supplement thereto) will not include
any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided,
however, that the Company makes no representations or warranties as to (i)
that part of the Registration Statement which shall constitute the
Statement of Eligibility and Qualification (Form T-1) under the Trust
Indenture Act of the Trustee or (ii) the information contained in or
omitted from the Registration Statement or the Final Prospectus (or any
supplement thereto) in reliance upon and in conformity with information
furnished in writing to the Company by or on behalf of any Underwriter
through the Representatives specifically for inclusion in the Registration
Statement or the Final Prospectus (or any supplement thereto) (it being
understood and agreed that the only such information furnished by or on
behalf of any Underwriter consists of the information described as such in
Section 9(b) hereof).
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(c) As
of the Execution Time, the Disclosure Package, as amended or supplemented as
of the Execution Time, does not contain 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. The preceding sentence does not apply to
information contained in or omitted from the Disclosure Package in
reliance upon and in conformity with information furnished in writing to
the Company by any Underwriter through the Representatives specifically
for use therein (it being understood and agreed that the only such
information furnished by or on behalf of any Underwriter consists of the
information described as such in Section 9(b) hereof).
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(d) Since
the date of the most recent financial statements of the Company included
or incorporated by reference in the Registration Statement, the Disclosure
Package and the Final Prospectus, (i) there has not been any material
change in the capital stock of the Company, any change in the long-term
debt of the Company or any of its subsidiaries or any development that, in
either case, would reasonably be expected to have a Material Adverse
Effect; (ii) neither the Company nor any of its subsidiaries has entered
into any transaction or agreement that is material to the Company and its
subsidiaries taken as a whole or incurred any liability or obligation,
direct or contingent, that is material to the Company and its subsidiaries
taken as a whole; and (iii) neither the Company nor any of its
subsidiaries has sustained any loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor disturbance or dispute or any action, order
or decree of any court or arbitrator or governmental or regulatory
authority that is material to the Company and its subsidiaries, taken as a
whole, except in each case as otherwise disclosed in the Registration
Statement, the Disclosure Package and the Final Prospectus.
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(e) (i)
At the time of filing the Registration Statement, (ii) at the time of the
most recent amendment thereto for the purposes of complying with Section
10(a)(3) of the Securities Act (whether such amendment was by
post-effective amendment, incorporated report filed pursuant to Sections
13 or 15(d) of the Exchange Act or form of prospectus), (iii) at the time
the Company or any person acting on its behalf (within the meaning, for
this clause only, of Rule 163(c)) made any offer relating to the
Securities in reliance on the exemption in Rule 163, and (iv) at the
Execution Time, the Company was, is or will be, as the case may be, a
Well-Known Seasoned Issuer.
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(f) (i)
At the earliest time after the filing of the Registration Statement that the
Company or another offering participant made a bona fide offer (within the
meaning of Rule 164(h)(2)) of the Securities and (ii) as of the Execution
Time (with such date being used as the determination date for purposes of
this clause (ii)), the Company was not and is not an Ineligible Issuer (as
defined in Rule 405), without taking account of any determination by the
Commission pursuant to Rule 405 that it is not necessary that the Company
be considered an Ineligible Issuer.
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(g) Each
Issuer Free Writing Prospectus and the final term sheet prepared and filed
pursuant to Section 5(b) hereto does not include any information that
conflicts with the information contained in the Registration Statement,
including any document incorporated therein by reference and any
prospectus supplement deemed to be a part thereof that has not been
superseded or modified. The foregoing sentence does not apply to
information contained in or omitted from any Issuer Free Writing
Prospectus in reliance upon and in conformity with information furnished
in writing to the Company by any Underwriter through the Representatives
specifically for use therein (it being understood and agreed that the only
such information furnished by or on behalf of any Underwriter consists of
the information described as such in Section 9(b) hereof).
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(h) Each
of the Company and the Significant Subsidiaries is validly existing as a
corporation, in good standing under the laws of the jurisdiction in which
it is chartered or organized, with full corporate power and authority to
own or lease, as the case may be, and to operate its properties and
conduct its business as described in the Disclosure Package and the Final
Prospectus, and is duly qualified to do business as a foreign corporation
and is in good standing under the laws of each jurisdiction which requires
such qualification, except where failure to be so qualified would not have
a Material Adverse Effect.
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(i) All
the outstanding shares of capital stock of each Significant Subsidiary have
been duly and validly authorized and issued and are fully paid and
nonassessable, and, except for directors’ qualifying shares and as
otherwise set forth in the Disclosure Package and the Final Prospectus,
all outstanding shares of capital stock of each Significant Subsidiary are
owned by the Company either directly or through wholly-owned subsidiaries
free and clear of any perfected security interest or any other security
interests, claims, liens or encumbrances.
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(j) There
is no franchise, contract or other document of a character required to be
described in the Registration Statement or the Final Prospectus, or to be
filed as an exhibit to the Registration Statement, which is not described
or filed as required (and the Preliminary Prospectus contains in all
material respects the same description of the foregoing matters contained
in the Final Prospectus); and the statements in the Preliminary Prospectus
and the Final Prospectus under the heading “Certain U.S. Federal
Income Tax Considerations,” insofar as such statements summarize
legal matters, agreements, documents or proceedings discussed therein, are
accurate and fair summaries of such legal matters, agreements, documents
or proceedings.
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(k) This
Agreement has been duly authorized, executed and delivered by the Company.
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(l) The
Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the
Disclosure Package and the Final Prospectus, will not be an “investment
company” (as defined in the Investment Company Act of 1940, as
amended).
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(m) No
consent, approval, authorization, filing with or order of any court or
governmental agency or body is required in connection with the
transactions contemplated herein, except such as have been obtained under
the Securities Act and the Trust Indenture Act and such as may be required
under the blue sky laws of any jurisdiction in connection with the
purchase and distribution of the Securities by the Underwriters in the
manner contemplated herein and in the Disclosure Package and the Final
Prospectus.
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(n) Neither
the issue and sale of the Securities nor the consummation of any other of
the transactions herein contemplated, nor the fulfillment of the terms
hereof, will conflict with, result in a breach or violation of, or
imposition of any lien, charge or encumbrance upon any property or assets
of the Company or any of its Significant Subsidiaries pursuant to, (i) the
charter or by-laws of the Company or any of its Significant Subsidiaries,
(ii) the indentures governing the Company’s outstanding 6.25% notes
due 2011, floating rate notes due 2010, 5.50% notes due 2017, 5.850% notes
due 2014 and 6.700% notes due 2019, the Company’s amended and
restated five year credit agreement dated as of August 10, 2007 or any
other material indenture, lease, mortgage, loan agreement or other debt
instrument to which the Company or any of its Significant Subsidiaries is
a party or bound or to which its or their respective property is subject,
(iii) any other agreement or instrument to which the Company or any of its
Significant Subsidiaries is a party or bound or to which its or their
respective property is subject, except where such conflict, breach or
violation would not have a Material Adverse Effect, or (iv) any statute, law,
rule, regulation, judgment, order or decree applicable to the Company or
any of its Significant Subsidiaries of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority
having jurisdiction over the Company or any of its Significant
Subsidiaries or any of its or their respective properties.
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(o) No
holders of securities of the Company have rights to the registration of such
securities under the Registration Statement.
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(p) The
historical financial statements and the related notes thereto of the Company
and its consolidated subsidiaries included or incorporated by reference in
the Registration Statement, the Disclosure Package and the Final
Prospectus comply as to form in all material respects with the applicable
requirements of the Securities Act and the Exchange Act, as applicable,
and present fairly in all material respects the financial position of the
Company and its subsidiaries as of the dates indicated and the results of
operations, stockholders’ equity and cash flows of the Company and
its subsidiaries for the periods specified; such financial statements have
been prepared in conformity with GAAP applied on a consistent basis
throughout the periods covered thereby, except as may be otherwise stated
therein and except to the extent that certain information normally
disclosed in financial statements and related notes may be omitted or
condensed in the quarterly financial statements of the Company and its
consolidated subsidiaries if done so pursuant to the rules and regulations
of the Commission; the supporting schedules included or incorporated by
reference in the Registration Statement, Disclosure Package and the Final
Prospectus present fairly in all material respects the information
required to be stated therein; and the other historical financial
information of the Company and its subsidiaries included or incorporated
by reference in the Registration Statement, the Disclosure Package and the
Final Prospectus has been derived from the accounting records of the
Company and its subsidiaries and presents fairly in all material respects
the information shown therein.
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(q) No
action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property is pending or, to the knowledge of
the Company, threatened that (i) could reasonably be expected to have a
material adverse effect on the performance of this Agreement or the
consummation of any of the transactions contemplated hereby or (ii) could
reasonably be expected to have a Material Adverse Effect, whether or not
arising from transactions in the ordinary course of business, except as
set forth in or contemplated in the Disclosure Package and the Final
Prospectus (exclusive of any supplement thereto).
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(r) Neither
the Company nor any Significant Subsidiary is in violation or default of
(i) any provision of its charter or bylaws, (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant or
instrument to which it is a party or bound or to which its property is
subject, or (iii) any statute, law, rule, regulation, judgment, order or
decree of any court, regulatory body, administrative agency, governmental
body, arbitrator or other authority having jurisdiction over the Company
or such Significant Subsidiary or any of its properties, as applicable,
except, with respect to clauses (ii) and (iii) only, for such violations
or defaults as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.
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(s) Deloitte
& Touche LLP, which has certified certain financial statements of the
Company and its consolidated subsidiaries and delivered its report with
respect to the audited consolidated financial statements included or
incorporated in the Disclosure Package and the Final Prospectus and on the
Company’s internal control over financial reporting, is an
independent registered public accounting firm with respect to the Company
and its subsidiaries within the meaning of the Securities Act and the
applicable published rules and regulations thereunder.
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(t) The
Company and its subsidiaries have paid all material federal, state, local
and foreign taxes, other than taxes that are being disputed in good faith
by the Company or any of its subsidiaries, to the extent any of the
foregoing is due and payable, and have filed all material tax returns
required to be filed to the extent any of the foregoing is due; and,
except as otherwise disclosed in the Registration Statement, the
Disclosure Package and the Final Prospectus, there is no tax deficiency
that has been, or could reasonably be expected to be, asserted against the
Company or any of its subsidiaries or any of their respective properties
or assets that could reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.
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(u) No
labor problem or dispute with the employees of the Company or any of its
subsidiaries exists or, to the knowledge of the Company, is threatened,
and the Company is not aware of any existing or threatened labor
disturbance by the employees of any of its or its subsidiaries’ principal
suppliers, contractors or customers, that could in any such case have a
Material Adverse Effect, whether or not arising from transactions in the
ordinary course of business, except as set forth in or contemplated in the
Disclosure Package and the Final Prospectus (exclusive of any supplement
thereto).
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(v) The
Company and each of its Significant Subsidiaries are insured under insurance
policies in such amounts and with such deductibles and covering such risks
as the Company believes are adequate for its business. The Company has not
received notice that any material policy of insurance insuring the Company
or any of its Significant Subsidiaries or their respective businesses,
assets, employees, officers and directors are not in full force and
effect; the Company and its subsidiaries are in compliance with the terms
of such policies and instruments in all material respects; and there are
no material claims by the Company or any of its Significant Subsidiaries
under any such policy or instrument as to which any insurance company is
denying liability or defending under a reservation of rights clause,
except where any such claims would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.
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(w) No
Significant Subsidiary is currently prohibited, directly or indirectly, from
paying any dividends to the Company, from making any other distribution on
such Significant Subsidiary’s capital stock, from repaying to the
Company any loans or advances to such Significant Subsidiary from the
Company or from transferring any of such Significant Subsidiary’s
property or assets to the Company or to any other subsidiary of the
Company, except as described in or contemplated by the Disclosure Package
and the Final Prospectus (exclusive of any supplement thereto).
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(x) The
Company and its subsidiaries possess all licenses, certificates, permits and
other authorizations issued by all applicable authorities necessary to
conduct their respective businesses, except where any failure to have such
license, certificate, permit or authorization would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect, and neither the Company nor any such subsidiary has received any
notice of proceedings relating to the revocation or modification of any
such certificate, authorization or permit which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding,
would reasonably be expected to have a Material Adverse Effect, whether or
not arising from transactions in the ordinary course of business, except
as set forth in or contemplated in the Disclosure Package and the Final
Prospectus (exclusive of any supplement thereto).
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(y) The
Company in respect of itself and its subsidiaries maintains a system of
“internal control over financial reporting” (as defined in Rule
13a-15(f) of the Exchange Act) that complies with the requirements of the
Exchange Act. To the knowledge of the Company, since January 3,
2009 and except as disclosed in the Disclosure Package and the Final
Prospectus, no material weaknesses or significant deficiencies in the
Company’s internal control over financial reporting have been
identified.
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(z) The
Company in respect of itself and its subsidiaries maintains “disclosure
controls and procedures” (as defined in Rule 13a-15(e) of the
Exchange Act) that are designed to ensure that information required to be
disclosed by the Company in reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the
time periods specified in the Commission’s rules and forms, including
controls and procedures designed to ensure that such information is
accumulated and communicated to the Company’s management as
appropriate to allow timely decisions regarding required disclosure. The
Company has carried out evaluations of the effectiveness of its disclosure
controls and procedures as required by Rule 13a-15 of the Exchange Act.
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(aa) Except
as would not otherwise reasonably be expected to have a Material Adverse
Effect and except as otherwise disclosed in the Disclosure Package and the
Final Prospectus, the Company and its subsidiaries (i) are in compliance
with any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”), (ii) have received all
permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses, (iii) are in
compliance with all terms and conditions of any such permit, license or
approval, (iv) are not subject to any claims or liabilities arising out of
the release of or exposure to wastes, pollutants or contaminants and are
not aware of any facts or circumstances which would form a reasonable
basis for any such claim and (v) have not received notice of any actual or
potential liability under any Environmental Law.
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(bb) There
is and has been no failure on the part of the Company and, to the
knowledge of the Company, any of the Company’s directors or officers,
in their capacities as such, to comply in all material respects with any
provision of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations
promulgated in connection therewith, including Section 402 relating to
loans and Sections 302 and 906 relating to certifications.
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(cc) Neither
the Company nor any of its subsidiaries has taken any action, directly or
indirectly, that would result in a violation by such entity of the Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder (the “FCPA”), and to the knowledge of the Company, no
director, officer, agent, employee or affiliate of the Company or any of
its subsidiaries has taken any action on behalf of the Company or its
subsidiaries, directly or indirectly, that would result in a violation by
such persons of the FCPA; and the Company and its subsidiaries have
conducted their businesses in compliance in all material respects with the
FCPA and have instituted and maintain policies and procedures designed to
ensure, and which are reasonably expected to continue to ensure, continued
compliance therewith.
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(dd) The
operations of the Company and its subsidiaries are and have been conducted
at all times in compliance in all material respects with applicable
financial recordkeeping and reporting requirements of the Currency and
Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all applicable jurisdictions, the rules and
regulations thereunder and any related or similar rules, regulations or
guidelines issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”), and no action, suit
or proceeding by or before any court or governmental agency, authority or
body or any arbitrator involving the Company or any of its subsidiaries
with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company, threatened.
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(ee) Neither
the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the
Company or any of its subsidiaries in respect of matters relating to the
Company or any of its subsidiaries is currently subject to any sanctions
administered by the Office of Foreign Assets Control of the United States
Treasury Department (“OFAC”); and the Company will not directly
or indirectly use the proceeds of the offering of the Securities, or lend,
contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other person or entity, for the purpose of
financing the activities of any person currently subject to any United
States sanctions administered by OFAC.
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(ff) Except
as set forth in the Disclosure Package and the Final Prospectus, to the
Company’s knowledge, the Company or its subsidiaries own or possess
the right to use all patents, trademarks, service marks, trade names,
copyrights, patentable inventions, trade secrets and know-how used by the
Company or its subsidiaries in the conduct of the Company’s or its
subsidiaries’ businesses as now conducted or as proposed in the
Disclosure Package and the Final Prospectus to be conducted and material
to the Company and its subsidiaries taken as a whole (collectively, the
“Intellectual Property”). Except as set forth in the Disclosure
Package and the Final Prospectus, there are no material legal or
governmental actions, suits, proceedings or claims pending or, to the
Company’s knowledge, threatened against the Company or any of its
subsidiaries (i) challenging the Company’s or any of its subsidiaries’ rights
in or to any Intellectual Property, (ii) challenging the validity or scope
of any Intellectual Property owned by the Company or any of its
subsidiaries or (iii) alleging that the operation of the Company’s or
any of its subsidiaries’ businesses as now conducted infringes or
otherwise violates any patent, trademark, copyright, trade secret or other
proprietary rights of a third party.
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(gg) Except
as disclosed in the Registration Statement, the Disclosure Package and the
Final Prospectus, the Company (i) does not have any material lending or
other relationship with any bank or lending affiliate of the
Representatives and (ii) does not intend to use any of the proceeds from
the sale of the Securities hereunder to repay any outstanding debt owed to
any affiliate of any Representative.
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Any
certificate signed by any officer of the Company and delivered to the Representatives or
counsel for the Underwriters in connection with the offering of the Securities shall be
deemed a representation and warranty by the Company, as to matters covered thereby, to
each Underwriter.
2. Purchase
and Sale. Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Company agrees to sell to
each Underwriter, and each Underwriter agrees, severally and not jointly, to
purchase from the Company, at the purchase price set forth in Schedule I hereto
the principal amount of the Securities set forth opposite such Underwriter’s
name in Schedule II hereto.
3. Delivery
and Payment. Delivery of and payment for the Securities shall be made on
the date and at the time specified in Schedule I hereto or at such time on such
later date not more than three Business Days after the foregoing date as the
Representatives shall reasonably designate, which date and time may be
postponed by agreement between the Representatives and the Company or as
provided in Section 10 hereof (such date and time of delivery and payment for
the Securities being herein called the “Closing Date”). Delivery of
the Securities shall be made to the Representatives for the respective accounts
of the several Underwriters against payment by the several Underwriters through
the Representatives of the purchase price thereof to or upon the order of the
Company by wire transfer payable in same-day funds to an account specified by
the Company. Delivery of the Securities shall be made through the facilities of
The Depository Trust Company (“DTC”) unless the Representatives shall
otherwise instruct.
4. Offering
by Underwriters. It is understood that the several Underwriters propose to
offer the Securities for sale to the public as set forth in the Final
Prospectus.
5. Agreements
of the Company. The Company agrees with the several Underwriters that:
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(a) Prior
to the termination of the offering of the Securities, the Company will not
file any amendment to the Registration Statement or supplement (including
the Final Prospectus or any Preliminary Prospectus) to the Base Prospectus
unless the Company has furnished you a copy for your review prior to
filing and will not file any such proposed amendment or supplement to
which you reasonably object. The Company will cause the Final Prospectus,
properly completed, and any supplement thereto to be filed in a form
approved by the Representatives with the Commission pursuant to the
applicable paragraph of Rule 424(b) within the time period prescribed and
will provide evidence reasonably satisfactory to the Representatives of
such timely filing. The Company will promptly advise the Representatives
(i) when the Final Prospectus, and any supplement thereto, shall have been
filed (if required) with the Commission pursuant to Rule 424(b), (ii)
when, prior to termination of the offering of the Securities, any
amendment to the Registration Statement shall have been filed or become
effective, (iii) of any request by the Commission or its staff for any
amendment of the Registration Statement, or any Rule 462(b) Registration
Statement, or for any supplement to the Final Prospectus or for any
additional information, (iv) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement or of any
notice objecting to its use or the institution or threatening of any
proceeding for that purpose and (v) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the institution or threatening
of any proceeding for such purpose. The Company will use its reasonable
best efforts to prevent the issuance of any such stop order or the
occurrence of any such suspension or objection to the use of the
Registration Statement and, upon such issuance, occurrence or notice of
objection, to obtain as soon as possible the withdrawal of such stop order
or relief from such occurrence or objection, including, if necessary, by
filing an amendment to the Registration Statement or a new registration
statement and using its reasonable best efforts to have such amendment or
new registration statement declared effective as soon as practicable. The
Company agrees to pay the fees required by the Commission relating to the
Securities within the time required by Rule 456(b)(1) without regard to
the proviso therein and otherwise in accordance with Rules 456(b) and
457(r).
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(b) The
Company will prepare a final term sheet, containing solely a description of
final terms of the Securities and the offering thereof, in the form
approved by the Representatives and attached as Schedule IV hereto and
will file such term sheet pursuant to Rule 433(d) within the time required
by such Rule.
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(c) If,
at any time prior to the filing of the Final Prospectus pursuant to Rule
424(b), any event occurs as a result of which the Disclosure Package would
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 or the circumstances then
prevailing not misleading, the Company will (i) notify promptly the
Representatives so that any use of the Disclosure Package may cease until
it is amended or supplemented, (ii) amend or supplement the Disclosure
Package to correct such statement or omission and (iii) supply any
amendment or supplement to you in such quantities as you may reasonably
request.
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(d) If,
at any time when a prospectus relating to the Securities is required to be
delivered under the Securities Act (including in circumstances where such
requirement may be satisfied pursuant to Rule 172), any event occurs as a
result of which the Final Prospectus as then supplemented would 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 at such time not misleading, or if it shall be
necessary to amend the Registration Statement, file a new registration
statement or supplement the Final Prospectus to comply with the Securities
Act or the Exchange Act or the respective rules thereunder, including in
connection with use or delivery of the Final Prospectus, the Company
promptly will (i) notify the Representatives of any such event, (ii)
prepare and file with the Commission, subject to the second sentence of
Section 5(a), an amendment or supplement or new registration statement
which will correct such statement or omission or effect such compliance,
(iii) use its reasonable best efforts to have any amendment to the
Registration Statement or new registration statement declared effective as
soon as practicable in order to avoid any disruption in use of the Final
Prospectus and (iv) supply any supplemented Final Prospectus to you in
such quantities as you may reasonably request.
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(e) Upon
the request by the Underwriters, as soon as practicable, the Company will
make generally available to its security holders and to the
Representatives an earnings statement or statements of the Company and its
subsidiaries which will satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158; provided, however, that this covenant will be
deemed satisfied as long as the Company is required to file reports
pursuant to Section 13 or 15(d) of the Exchange Act and has filed its
report or reports on Form 10-K, Form 10-Q or Form 8-K, or has supplied to
the Commission copies of the annual report sent to security holders
pursuant to Rule 14a-3(c) of the Exchange Act, containing such earning
statement or statements.
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(f) The
Company will furnish to the Representatives and counsel for the
Underwriters, without charge, signed copies of the Registration Statement
(including exhibits thereto) and to each other Underwriter a copy of the
Registration Statement (without exhibits thereto) and, so long as delivery
of a prospectus by an Underwriter or dealer may be required by the
Securities Act (including in circumstances where such requirement may be
satisfied pursuant to Rule 172), as many copies of each Preliminary
Prospectus, the Final Prospectus and each Issuer Free Writing Prospectus
and any supplement thereto as the Representatives may reasonably request.
The Company will pay the expenses of printing or other production of all
documents relating to the offering of the Securities.
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(g) The
Company shall cooperate with the Representatives and counsel for the
Underwriters to qualify or register the Securities for sale under (or
obtain exemptions from the application of) the state securities or blue
sky laws of those jurisdictions designated by the Representatives, shall
comply with such laws and shall maintain such qualifications,
registrations and exemptions in effect so long as required for the
distribution of the Securities. The Company shall not be required to
qualify to transact business, or to take any action that would subject it
to general service of process, in any such jurisdiction where it is not
presently qualified or where it would be subject to taxation as a foreign
business.
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(h) The
Company agrees that, unless it has or shall have obtained the prior written
consent of the Representatives, and each Underwriter, severally and not
jointly, agrees with the Company that, unless it has or shall have
obtained, as the case may be, the prior written consent of the Company, it
has not made and will not make any offer relating to the Securities that
would constitute an Issuer Free Writing Prospectus or that would otherwise
constitute a “free writing prospectus” (as defined in Rule 405)
required to be filed by the Company with the Commission or retained by the
Company under Rule 433, other than a free writing prospectus containing
the information contained in the final term sheet prepared and filed
pursuant to Section 5(b) hereto; provided, however, that the prior written
consent of the parties hereto shall be deemed to have been given in
respect of the Free Writing Prospectuses included in Schedule III hereto.
Any such free writing prospectus consented to by the Representatives or
the Company is hereinafter referred to as a “Permitted Free Writing
Prospectus.” The Company agrees that (x) it has treated and will
treat, as the case may be, each Permitted Free Writing Prospectus as an
Issuer Free Writing Prospectus and (y) it has complied and will comply, as
the case may be, with the requirements of Rules 164 and 433 applicable to
any Permitted Free Writing Prospectus, including in respect of timely
filing with the Commission, legending and record keeping.
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(i) The
Company will not, without the prior written consent of the Representatives,
offer, sell, contract to sell, pledge, or otherwise dispose of (or enter
into any transaction which is designed to, or might reasonably be expected
to, result in the disposition (whether by actual disposition or effective
economic disposition due to cash settlement or otherwise) by the Company
or any affiliate of the Company or any person in privity with the Company
or any affiliate of the Company), directly or indirectly, including the
filing (or participation in the filing) of a registration statement with
the Commission in respect of, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the
meaning of Section 16 of the Exchange Act, any debt securities issued or
guaranteed by the Company (other than the Securities) or publicly announce
an intention to effect any such transaction, until the Business Day set
forth on Schedule I hereto.
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(j) The
Company will not take, directly or indirectly, any action designed to or
that would constitute or that might reasonably be expected to cause or
result in, under the Exchange Act or otherwise, stabilization or
manipulation of the price of any security of the Company to facilitate the
sale or resale of the Securities.
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(k) The
Company will pay all costs, fees and expenses incurred in connection with
the performance of its obligations hereunder and in connection with the
transactions contemplated hereby, including without limitation (i) all
expenses incident to the issuance and delivery of the Securities
(including all printing and engraving costs), (ii) all necessary issue,
transfer and other stamp taxes in connection with the issuance and sale of
the Securities to the Underwriters, (iii) all fees and expenses of the
Company’s counsel, independent public or certified public accountants
and other advisors to the Company, (iv) all costs and expenses incurred in
connection with the preparation, printing, filing and distribution of the
Registration Statement (including financial statements, exhibits,
schedules, consents and certificates of experts), each Issuer Free Writing
Prospectus, any Preliminary Prospectus and the Final Prospectus, and all
amendments and supplements thereto, and this Agreement, the Indenture and
the Securities, (v) all filing fees, reasonable attorneys’ fees and
expenses incurred by the Company or the Underwriters in connection with
qualifying or registering (or obtaining exemptions from the qualification
or registration of) all or any part of the Securities for offer and sale
under the state securities or blue sky laws, and, if requested by the
Representatives, preparing a “Blue Sky Survey” or memorandum,
and any supplements thereto, and advising the Underwriters of such
qualifications, registrations and exemptions, (vi) the filing fees
incurred and the reasonable fees and disbursements of counsel to the
Underwriters in connection with any filing with, and the review and
clearance of the terms of the sale of the Securities by, the Financial
Industry Regulatory Association, Inc. (FINRA), (vii) the fees and expenses
of the Trustee, including the reasonable fees and disbursements of counsel
for the Trustee in connection with the Indenture and the Securities,
(viii) any fees payable in connection with the rating of the Securities
with the ratings agencies, (ix) all fees and expenses (including
reasonable fees and expenses of counsel) of the Company in connection with
approval of the Securities by DTC for “book-entry” transfer, and
(x) all other fees, costs and expenses incurred by the Company in
connection with the performance of its obligations hereunder for which
provision is not otherwise made in this Section 5(k). Except as provided
in this Section 5(k) and in Section 8 and Section 9 hereof, the
Underwriters shall pay their own expenses, including the fees and
disbursements of their counsel.
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9
6. Agreements
of the Underwriters. Each Underwriter agrees with the Company that:
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(a) It
has not and will not use, authorize use of, or refer to or participate in the
planning for use of, any Free Writing Prospectus (which term includes use
of any written information furnished to the Commission by the Company and
not incorporated by reference into the Registration Statement or any press
release issued by the Company) other than a Free Writing Prospectus that
(A) is not required to be filed by the Company with the Commission or
(B)(i) is not an “issuer free writing prospectus” (as defined in
Rule 433) and (ii) contains only (1) information describing the
preliminary terms of the Securities or their offering, (2) information
permitted under Rule 134 or (3) information that describes the final terms
of the Securities or their offering and that is included in the final term
sheet of the Company contemplated in Section 5(b); provided, however, that
the Underwriters may use a term sheet substantially in the form of
Schedule IV hereto without the consent of the Company.
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(b) It
will not offer, sell or deliver any of the Securities, directly or
indirectly, or distribute the Final Prospectus or any other offering
material relating to the Securities, in or from any jurisdiction except
under circumstances that will, to the knowledge and belief of such
Underwriter, result in compliance with the applicable laws and regulations
thereof and that will not impose any obligations on the Company except as
set forth in this Agreement.
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(c) It
is not subject to any pending proceeding under Section 8A of the Securities
Act with respect to the offering of the Securities (and will promptly
notify the Company if any such proceeding against it is initiated during
the Prospectus Delivery Period). “Prospectus Delivery Period” means
such period of time after the first date of the public offering of the
Securities as in the opinion of counsel for the Underwriters a prospectus
relating to the Securities is required by law to be delivered (or required
to be delivered but for Rule 172) in connection with sales of the
Securities by any Underwriter or dealer.
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(d) It
will, pursuant to reasonable procedures developed in good faith, retain
copies of each Free Writing Prospectus used or referred to by it, in
accordance with Rule 433.
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7. Conditions
to the Obligations of the Underwriters. The obligations of the Underwriters
to purchase the Securities shall be subject to the accuracy of the
representations and warranties on the part of the Company contained herein as
of the Execution Time and the Closing Date, to the accuracy of the statements
of the Company made in any certificates pursuant to the provisions hereof, to
the performance by the Company of its obligations hereunder and to the
following additional conditions:
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(a) The
Final Prospectus, and any supplement thereto, have been filed in the manner
and within the time period required by Rule 424(b); the final term sheet
contemplated by Section 5(b) hereto, and any other material required to be
filed by the Company pursuant to Rule 433(d), shall have been filed with
the Commission within the applicable time periods prescribed for such
filings by Rule 433; and no stop order suspending the effectiveness of the
Registration Statement or any notice objecting to its use shall have been
issued and no proceedings for that purpose shall have been instituted or
threatened.
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(b) The
Company shall have requested and caused Xxxxx & Xxxxxxx LLP, counsel for
the Company, to have furnished to the Representatives their opinion, dated
the Closing Date and addressed to the Representatives, to the effect that:
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(i) the
Registration Statement is an “automatic shelf registration statement” (as
defined under Rule 405) that has been filed with the Commission not
earlier than three years prior to the date of the Underwriting Agreement;
the Indenture has been qualified under the Trust Indenture Act; each
Preliminary Prospectus and the Final Prospectus was filed with the
Commission pursuant to the subparagraph of Rule 424(b) under the
Securities Act specified in such opinion on the date specified therein;
and no order suspending the effectiveness of the Registration Statement
has been issued, no notice of objection of the Commission to the use of
such Registration Statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act has been received by
the Company, and no proceeding for that purpose or pursuant to Section 8A
of the Securities Act against the Company or in connection with the
offering of the Securities is pending or, to the knowledge of such
counsel, threatened by the Commission; and the Registration Statement and
the Final Prospectus (other than the financial statements and other
financial information contained therein, as to which such counsel need
express no opinion) comply as to form in all material respects with the
applicable requirements of the Securities Act, the Exchange Act and the
Trust Indenture Act and the respective rules thereunder.
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(ii) each
of the Company and the Significant Subsidiaries is validly existing as a
corporation in good standing under the laws of the jurisdiction in which
it is chartered or organized, with full corporate power and authority to
own or lease, as the case may be, and to operate its properties and
conduct its business as described in the Disclosure Package and the Final
Prospectus, and is duly qualified to do business as a foreign corporation
and is in good standing under the laws of each jurisdiction which requires
such qualification, except where such failure to be so qualified would not
result in a Material Adverse Effect;
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(iii) the
Securities and the Indenture conform in all material respects to the
descriptions thereof contained in the Disclosure Package and the Final
Prospectus;
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(iv) the
Indenture has been duly authorized, executed and delivered, and constitutes
a legal, valid and binding instrument enforceable against the Company in
accordance with its terms (subject, as to enforcement of remedies, to
applicable bankruptcy, reorganization, insolvency, moratorium or other
laws affecting creditors’ rights generally from time to time in
effect and to general principles of equity, including, without limitation,
concepts of materiality, reasonableness, good faith and fair dealing,
regardless of whether considered in a proceeding in equity or at law);
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(v) the
Securities have been duly authorized and, when executed and authenticated in
accordance with the provisions of the Indenture and delivered to and paid
for by the Underwriters pursuant to this Agreement, will constitute legal,
valid and binding obligations of the Company entitled to the benefits of
the Indenture;
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(vi) to
such counsel’s knowledge, there is no pending or threatened action, suit
or proceeding by or before any court or governmental agency, authority or
body or any arbitrator involving the Company or any of its subsidiaries or
its or their property, of a character required to be disclosed pursuant to
Item 103 of Regulation S-K in the Company’s periodic reports filed
under the Exchange Act which is not adequately disclosed in any
Preliminary Prospectus and the Final Prospectus, and there is no
franchise, contract or other document of a character required to be
described in the Registration Statement or the Final Prospectus, or to be
filed as an exhibit to the Registration Statement, which is not described
or filed as required, and to the extent that they constitute matters of
law, summaries of legal matters or legal conclusions, the statements set
forth in the Preliminary Prospectus and the Final Prospectus under the
caption “Certain U.S. Federal Income Tax Considerations” are
accurate in all material respects and fairly present the information
provided;
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(vii) this
Agreement has been duly authorized, executed and delivered by the Company;
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(viii) the
Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the
Disclosure Package and the Final Prospectus, will not be an “investment
company” as defined in the Investment Company Act of 1940, as
amended;
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(ix) no
consent, approval, authorization, order, registration or qualification of or
with any court or arbitrator or governmental or regulatory authority is
required to be obtained by the Company in connection with the transactions
contemplated herein, except for the registration of the Securities under
the Securities Act, the qualification of the Indenture under the Trust
Indenture Act and such consents, approvals, authorizations, orders and
registrations or qualifications as may be required under the blue sky laws
of any United States state jurisdiction or the securities laws of any
foreign jurisdiction in connection with the purchase and distribution of
the Securities by the Underwriters;
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(x) neither
the execution and delivery of the Indenture, the issue and sale of the
Securities, nor the consummation of any other of the transactions herein
contemplated nor the fulfillment of the terms hereof will conflict with,
result in a breach or violation of, or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any Significant
Subsidiary pursuant to, (i) the charter or by-laws of the Company or any
Significant Subsidiary, (ii) the terms of any indenture, contract, lease,
mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument known to such
counsel to which the Company or any Significant Subsidiary is a party or
bound or to which its or their property is subject (except for any such
breach, violation or default that could not adversely affect in a material
respect the ability of the Company to perform its obligations under this
Agreement, or would otherwise be material in the context of the sale of
the Securities) or (iii) any statute, law, rule, regulation, judgment,
order or decree applicable to the Company or any Significant Subsidiary of
any court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over the Company or any
Significant Subsidiary or any of their respective properties; and
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(xi) to
such counsel’s knowledge, no holders of securities of the Company have
rights to the registration of such securities under the Registration
Statement.
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Such
counsel shall also state that they have participated in conferences with representatives
of the Company and with representatives of its independent accountants and counsel at
which conferences the contents of the Registration Statement, the Disclosure Package and
the Final Prospectus and any amendment and supplement thereto and related matters were
discussed and, although such counsel assumes no responsibility for the accuracy,
completeness or fairness of the Registration Statement, the Disclosure Package, the Final
Prospectus and any amendment or supplement thereto (except as expressly provided above),
no facts have come to such counsel’s attention that cause such counsel to believe
that (i) at the Effective Date immediately preceding the Execution Time, the Registration
Statement contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) the Disclosure Package, at the Execution Time, contained any untrue
statement of a material fact or omitted to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading and (iii) the Final Prospectus or any amendment or supplement thereto, as of
its date and the Closing Date, contains any untrue statement of a material fact or omits
to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading (other than, in each case, the
financial statements, related schedules and other financial data included or incorporated
by reference therein, as to which such counsel need express no belief). |
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In
rendering such opinion, such counsel may rely (A) as to matters involving the application
of laws of any jurisdiction other than the State of Delaware, the State of New York or
the federal laws of the United States, to the extent they deem proper and specified in
such opinion, upon the opinion of other counsel of good standing whom they believe to be
reliable and who are reasonably satisfactory to counsel for the Underwriters and (B) as
to matters of fact, to the extent they deem proper, on certificates of responsible
officers of the Company and public officials. References to the Final Prospectus in this
Section 7(b) shall also include any supplements thereto at the Closing Date. |
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(c) The
Representatives shall have received from Xxxxxxx Xxxxxxx & Xxxxxxxx LLP,
counsel for the Underwriters, such opinion or opinions, dated the Closing
Date and addressed to the Representatives, with respect to the issuance
and sale of the Securities, the Indenture, the Registration Statement, the
Disclosure Package, the Final Prospectus (together with any supplement
thereto) and other related matters as the Representatives may reasonably
require, 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.
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(d) The
Company shall have furnished to the Representatives a certificate of the
Company, signed by the Chairman of the Board or the President and the
principal financial or accounting officer of the Company, solely in their
respective capacities as such, dated the Closing Date, to the effect that
the signers of such certificate have carefully examined the Registration
Statement, the Disclosure Package, the Final Prospectus and any
supplements or amendments thereto and this Agreement and that:
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(i) the
representations and warranties of the Company in this Agreement are true and
correct on and as of the Closing Date with the same effect as if made on
the Closing Date and the Company has complied with all the agreements and
satisfied all the conditions on its part to be performed or satisfied at
or prior to the Closing Date;
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(ii) no
stop order suspending the effectiveness of the Registration Statement or any
notice objecting to its use has been issued and no proceedings for that
purpose have been instituted or, to the Company’s knowledge,
threatened; and
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(iii) since
the date of the most recent financial statements included or incorporated
by reference in the Final Prospectus and the Disclosure Package (exclusive
of any supplements thereto after the Execution Time), there has been no
Material Adverse Effect, except as set forth in or contemplated in the
Final Prospectus and the Disclosure Package (exclusive of any supplements
thereto after the Execution Time).
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(e) The
Company shall have requested and Deloitte & Touche LLP shall have
furnished to the Representatives, at the Execution Time and at the Closing
Date, “comfort” letters, dated as of the Execution Time and as
of the Closing Date, respectively, in form and substance reasonably
satisfactory to the Representatives, confirming that they are an
independent registered public accounting firm within the meaning of the
Securities Act and the Exchange Act and the respective applicable rules
and regulations adopted by the Commission thereunder and that they have
audited the consolidated financial information of the Company for the year
ended January 3, 2009, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), and stating in effect
that:
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(i) in
their opinion the audited financial statements included or incorporated by
reference in the Registration Statement, the Preliminary Prospectus and
the Final Prospectus and reported on by them comply as to form with the
applicable accounting requirements of the Securities Act and the Exchange
Act and the related rules and regulations adopted by the Commission;
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(ii) on
the basis of their audit of the financial information for the year ended
January 3, 2009, the Preliminary Prospectus and the Final Prospectus;
carrying out certain specified procedures (but not an examination in
accordance with generally accepted auditing standards) which would not
necessarily reveal matters of significance with respect to the comments
set forth in such letter; a reading of the minutes of the meetings of the
stockholders, directors and audit committee of the Company; and inquiries
of certain officials of the Company who have responsibility for financial
and accounting matters of the Company and its subsidiaries as to
transactions and events subsequent to January 3, 2009, nothing came to
their attention which caused them to believe that:
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(1) any
audited financial statements of the Company included or incorporated by
reference in the Registration Statement, the Preliminary Prospectus and the
Final Prospectus do not comply as to form with applicable accounting
requirements of the Securities Act and with the related rules and regulations
adopted by the Commission with respect to financial statements included or
incorporated by reference in the annual report on Form 10-K under the Exchange
Act; and said audited financial statements are not in conformity with GAAP;
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(2) (i)
any material modifications should be made to the unaudited financial
statements, included in the Registration Statement, the Preliminary Prospectus
and the Final Prospectus, for them to be in conformity with GAAP, and (ii) the
unaudited financial statements do not comply as to form in all material
respects with the applicable accounting requirements of the Securities Act and
the related rules and regulations adopted by the Commission.
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(3) with
respect to the period subsequent to July 4, 2009, there were any changes at the
“cut-off date” specified therein (which date shall be reasonably
satisfactory to the Representatives) in the long-term debt of the Company, in
the common stock of the Company or decreases in the stockholders’ equity
of the Company or decrease in consolidated net current assets of the Company as
compared with the amounts shown on the July 4, 2009 unaudited consolidated
balance sheet included or incorporated by reference in the Registration
Statement, the Preliminary Prospectus and the Final Prospectus, or for the
period from July 4, 2009 to the “cut-off date” specified therein
(which date shall be reasonably satisfactory to the Representatives), there
were any decreases, as compared with the corresponding period in the preceding
year; in consolidated net revenues or in total or per share amounts of net
income of the Company, except in all instances for changes or decreases set
forth in such letter, in which case the letter shall be accompanied by an
explanation by the Company as to the significance thereof unless said
explanation is not deemed necessary by the Representatives; and
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(iii) they
have performed certain other specified procedures as a result of which they
determined that certain information of an accounting, financial or
statistical nature (which is limited to accounting, financial or
statistical information derived from the general accounting records of the
Company and its subsidiaries) set forth in the Registration Statement, the
Preliminary Prospectus and the Final Prospectus, agrees with the
accounting records of the Company and its subsidiaries, excluding any
questions of legal interpretation.
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References to the Final Prospectus in
this Section 7(e) include any supplement thereto at the date of the letter.
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(f) Subsequent
to the Execution Time or, if earlier, the dates as of which information is
given in the Registration Statement (exclusive of any amendment thereof
after the Execution Time), the Final Prospectus (exclusive of any
supplement thereto after the Execution Time other than those to which the
Underwriters have not objected or have consented, as applicable, pursuant
to Section 5 hereof) or any Issuer Free Writing Prospectus (exclusive of
any supplement thereto after the Execution Time), there shall not have
been (i) any change or decrease specified in the “comfort” letter
or letters referred to in Section 7(e) or (ii) any change, or any
development involving a prospective change, in or affecting the business,
financial condition or properties of the Company and its subsidiaries on a
consolidated basis the effect of which in any case referred to in Section
7(e)(i) or 7(e)(ii) is, in the reasonable judgment of the Representatives,
so material and adverse as to make it impracticable or inadvisable to
proceed with the offering or delivery of the Securities as contemplated by
the Registration Statement (exclusive of any amendment thereof after the
Execution Time), the Final Prospectus (exclusive of any supplement thereto
after the Execution Time) and any Issuer Free Writing Prospectus
(exclusive of any supplement thereto after the Execution Time).
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(g) Subsequent
to the Execution Time, there shall not have been any decrease in the
rating of any of the Company’s debt securities by any “nationally
recognized statistical rating organization” (as defined for purposes
of Rule 436(g)) or any notice given of any intended or potential decrease
in any such rating or of a possible change in any such rating that does
not indicate the direction of the possible change.
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(h) Prior
to the Closing Date, the Company shall have furnished to the
Representatives such further information, certificates and documents as
the Representatives may reasonably request.
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If
any of the conditions specified in this Section 7 shall not have been fulfilled when and
as provided in this Agreement, or if any of the opinions and certificates mentioned above
or elsewhere in this Agreement shall not be reasonably satisfactory in form and substance
to the Representatives and counsel for the Underwriters, this Agreement and all
obligations of the Underwriters hereunder may be canceled at, or at any time prior to, the
Closing Date by the Representatives. Notice of such cancellation shall be given to the
Company in writing or by telephone or facsimile confirmed in writing.
The
documents required to be delivered by this Section 7 shall be delivered at the office of
Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, counsel for the Underwriters, at 000 Xxxxxxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx, xx the Closing Date.
8. Reimbursement
of Underwriters’ Expenses. If the sale of the Securities provided for
herein is not consummated because any condition to the obligations of the
Underwriters set forth in Section 7 hereof is not satisfied, because of any
termination pursuant to Section 11 hereof or because of any refusal, inability
or failure on the part of the Company to perform any agreement herein or comply
with any provision hereof other than by reason of a default by any of the
Underwriters, the Company will reimburse the Underwriters severally through the
Representatives on demand for all expenses (including reasonable fees and
disbursements of counsel) that shall have been incurred by them in connection
with the proposed purchase and sale of the Securities.
9. Indemnification
and Contribution. (a) The Company agrees to indemnify and hold harmless
each Underwriter, the directors, officers, employees and agents of each
Underwriter and each person who controls any Underwriter within the meaning of
either the Securities Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them
may become subject under the Securities Act, the Exchange Act or other federal
or state statutory law or regulation, at common law 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 a material fact contained in the registration statement for the registration
of the Securities as originally filed or in any amendment thereof, or in the
Base Prospectus, any Preliminary Prospectus or any other preliminary prospectus
supplement relating to the Securities, the Final Prospectus, any Issuer Free
Writing Prospectus or the information contained in the final term sheet
required to be prepared and filed pursuant to Section 5(b) hereto and the
Disclosure Package, or in any amendment thereof or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and agrees to reimburse each such indemnified party, as
incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action; 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 any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
any Underwriter through the Representatives specifically for inclusion therein
(it being understood and agreed that the only such information furnished by or
on behalf of any Underwriter consists of the information described as such in
Section 9(b) hereof). This indemnity agreement will be in addition to any
liability which the Company may otherwise have.
(b) Each
Underwriter severally and not jointly agrees to indemnify and hold harmless the
Company, each of its directors, each of its officers who signs the Registration
Statement, and each person who controls the Company within the meaning of
either the Securities Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Company to each Underwriter, but only with
reference to written information relating to such Underwriter furnished to the
Company by or on behalf of such Underwriter through the Representatives
specifically for inclusion in the documents referred to in the foregoing
indemnity. This indemnity agreement will be in addition to any liability which
any Underwriter may otherwise have. The Company acknowledges that the names of
the Underwriters on the front and back covers of the Preliminary Prospectus and
the Final Prospectus and the statements set forth in the paragraph under the
heading “Underwriting – Offering Price, Concessions and
Reallowances” and in the paragraph under the heading “Underwriting
– Stabilization” relating to stabilization activities in any
Preliminary Prospectus or the Final Prospectus constitute the only information
furnished in writing by or on behalf of the several Underwriters for inclusion
in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing
Prospectus, and the Representatives confirm that such statements are correct.
15
(c) Promptly
after receipt by an indemnified party under this Section 9 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 this Section 9,
notify the indemnifying party in writing of the commencement thereof; but the
failure so to notify the indemnifying party (i) will not relieve it from
liability under Section 9(a) or 9(b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by
the indemnifying party of substantial rights and defenses and (ii) will not, in
any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in Section
9(a) or 9(b) above. The indemnifying party shall be entitled to appoint counsel
of the indemnifying party’s choice at the indemnifying party’s
expense to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the reasonable fees and expenses of any separate
counsel retained by the indemnified party or parties except as set forth
below); provided, however, that such counsel shall be satisfactory to the
indemnified party. Notwithstanding the indemnifying party’s election to
appoint counsel to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel (including
local counsel) and the indemnifying party shall bear the reasonable fees, costs
and expenses of such separate counsel (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel (other than local counsel) for all indemnified parties) if (i)
the indemnified party shall have reasonably determined that use of counsel
chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest, (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or
other indemnified parties which are different from or additional to those
available to the indemnifying party, (iii) the indemnifying party shall not
have employed counsel reasonably satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action or (iv) the indemnifying party shall authorize the
indemnified party to employ separate counsel at the expense of the indemnifying
party. An indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding.
(d) In
the event that the indemnity provided in Section 9(a) or 9(b) is unavailable to
or insufficient to hold harmless an indemnified party for any reason, the
Company and the Underwriters severally agree to contribute to the aggregate
losses, claims, damages and liabilities (including legal or other expenses
reasonably incurred in connection with investigating or defending same)
(collectively “Losses”) to which the Company and one or more of the
Underwriters may be subject in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and by the
Underwriters on the other from the offering of the Securities; provided,
however, that in no case shall any Underwriter (except as may be provided
in any agreement among underwriters relating to the offering of the Securities)
be responsible for any amount in excess of the underwriting discount or
commission applicable to the Securities purchased by such Underwriter
hereunder. If the allocation provided by the immediately preceding sentence is
unavailable for any reason, the Company and the Underwriters severally shall
contribute in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the Company on the one hand
and of the Underwriters on the other in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable
considerations. Benefits received by the Company shall be deemed to be equal to
the total net proceeds from the offering (before deducting expenses) received
by it, and benefits received by the Underwriters shall be deemed to be equal to
the total underwriting discounts and commissions, in each case as set forth on
the cover page of the Final Prospectus. Relative fault shall be determined by
reference to, among other things, whether any untrue or any alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact relates to information provided by the Company on the one hand or
the Underwriters on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
alleged untrue statement or omission. The Company and the Underwriters agree
that it would not be just and equitable if contribution were determined by pro
rata allocation or any other method of allocation which does not take account
of the equitable considerations referred to above. Notwithstanding the
provisions of this Section 9(d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 9, each person who
controls an Underwriter within the meaning of either the Securities Act or the
Exchange Act and each director, officer, employee and agent of an Underwriter
shall have the same rights to contribution as such Underwriter, and each person
who controls the Company within the meaning of either the Securities Act or the
Exchange Act, each officer of the Company who shall have signed the
Registration Statement and each director of the Company shall have the same
rights to contribution as the Company, subject in each case to the applicable
terms and conditions of this Section 9(d).
16
10. Default
by an Underwriter. If any one or more Underwriters shall fail to purchase
and pay for any of the Securities agreed to be purchased by such Underwriter or
Underwriters hereunder and such failure to purchase shall constitute a default
in the performance of its or their obligations under this Agreement, the
remaining Underwriters shall be obligated severally to take up and pay for (in
the respective proportions which the principal amount of Securities set forth
opposite their names in Schedule II hereto bears to the aggregate principal
amount of Securities set forth opposite the names of all the remaining
Underwriters) the Securities which the defaulting Underwriter or Underwriters
agreed but failed to purchase; provided, however, that in the
event that the aggregate principal amount of Securities which the defaulting
Underwriter or Underwriters agreed but failed to purchase shall exceed 10% of
the aggregate principal amount of Securities set forth in Schedule II hereto,
the remaining Underwriters shall have the right to purchase all, but shall not
be under any obligation to purchase any, of the Securities, and if such
nondefaulting Underwriters do not purchase all the Securities, this Agreement
will terminate without liability to any nondefaulting Underwriter or the
Company. In the event of a default by any Underwriter as set forth in this
Section 10, the Closing Date shall be postponed for such period, not exceeding
five Business Days, as the Representatives shall determine in order that the
required changes in the Registration Statement and the Final Prospectus or in
any other documents or arrangements may be effected. Nothing contained in this
Agreement shall relieve any defaulting Underwriter of its liability, if any, to
the Company and any nondefaulting Underwriter for damages occasioned by its
default hereunder.
11. Termination.
This Agreement shall be subject to termination in the absolute discretion of
the Representatives, by notice given to the Company prior to delivery of and
payment for the Securities, if prior to such time (i) trading in the Company’s
Common Stock shall have been suspended by the Commission or trading in
securities generally on the New York Stock Exchange shall have been suspended
or limited or minimum prices shall have been established on such Exchange, (ii)
a banking moratorium shall have been declared either by federal or New York
state authorities, (iii) a material disruption in commercial banking activities
or securities settlement or clearance systems shall have occurred or (iv) there
shall have occurred any outbreak or escalation of hostilities, declaration by
the United States of a national emergency or war or other calamity or crisis,
the effect of which on financial markets is such as to make it, in the sole
judgment of the Representatives, impracticable or inadvisable to proceed with
the offering or delivery of the Securities as contemplated by any Preliminary
Prospectus and the Final Prospectus (exclusive of any supplement thereto after
the Execution Time).
12. Representations
and Indemnities to Survive. The respective agreements, representations,
warranties, indemnities and other statements of the Company or its officers and
of the Underwriters set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation made by or on behalf
of any Underwriter or the Company or any of the officers, directors, employees,
agents or controlling persons referred to in Section 9 hereof, and will survive
delivery of and payment for the Securities. The provisions of Sections 8 and 9
hereof shall survive the termination or cancellation of this Agreement.
13. Notices.
All communications hereunder will be in writing and effective only on receipt,
and, if sent to the Representatives, will be mailed, delivered or telefaxed to
the Citigroup Global Markets Inc., General Counsel (fax no.: (000) 000-0000),
and confirmed to the General Counsel, Citigroup Global Markets Inc., at 000
Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: General Counsel; X.X.
Xxxxxx Securities, High Grade Syndicate Desk (fax no.: (000) 000-0000), and
confirmed to X.X. Xxxxxx Securities Inc. at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: High Grade Syndicate Desk — 8th floor; Mizuho Securities
USA Inc., Debt Capital Markets Desk (fax no.: (000) 000-0000), and confirmed to
Mizuho Securities USA Inc. at 1251 Avenue of the Americas — 00xx xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: Debt Capital Markets Desk; UBS Securities
LLC, Fixed Income Syndicate Desk (fax no.: (000) 000-0000), and confirmed to
UBS Securities LLC at 000 Xxxxxxxxxx Xxxxxxxxx, Xxxxxxxx, Xxxxxxxxxxx 00000,
Attention: Fixed Income Syndicate Desk; and Barclays Capital Inc., Syndicate
Registration (fax no.: (000) 000-0000), and confirmed to Barclays Capital Inc.
at 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Syndicate
Registration; or, if sent to the Company, will be mailed, delivered or
telefaxed to (000) 000-0000 and confirmed to it at 0000 00xx Xxxxxx, Xxxxxxx,
Xxxxxxxxx 00000, Attention: Legal Department.
17
14. Successors.
This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers, directors, employees,
agents and controlling persons referred to in Section 9 hereof, and no other
person will have any right or obligation hereunder.
15. No
Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and
sale of the Securities pursuant to this Agreement is an arm’s-length
commercial transaction between the Company, on the one hand, and the
Underwriters and any affiliate through which it may be acting, on the other,
(b) the Underwriters are acting as principal and not as an agent or fiduciary
of the Company and (c) the Company’s engagement of the Underwriters in
connection with the offering and the process leading up to the offering is as
independent contractors and not in any other capacity. Furthermore, the Company
agrees that it is solely responsible for making its own judgments in connection
with the offering (irrespective of whether any of the Underwriters has advised
or is currently advising the Company on related or other matters). The Company
agrees that it will not claim that the Underwriters have rendered advisory
services of any nature or respect, or owe an agency, fiduciary or similar duty
to the Company, in connection with such transaction or the process leading
thereto.
16. Integration.
This Agreement supersedes all prior agreements and understandings (whether
written or oral) between the Company and the Underwriters, or any of them, with
respect to the subject matter hereof.
17. Applicable
Law. This Agreement will be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be
performed within the State of New York.
18. Waiver
of Jury Trial. The Company hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.
19. Counterparts.
This Agreement may be signed in one or more counterparts, each of which shall
constitute an original and all of which together shall constitute one and the
same agreement.
20. Headings.
The section headings used herein are for convenience only and shall not affect
the construction hereof.
21. Definitions.
The terms that follow, when used in this Agreement, shall have the meanings
indicated.
|
“Base
Prospectus” shall mean the base prospectus referred to in Section 1(a) contained in
the Registration Statement at the Execution Time.
|
|
“Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to
close in New York City.
|
|
“Closing
Date” shall have the meaning specified in Section 3.
|
|
“Commission” shall
mean the Securities and Exchange Commission.
|
|
“Disclosure
Package” shall mean (i) the Base Prospectus, (ii) the Preliminary Prospectus used
most recently prior to the Execution Time, (iii) the Issuer Free Writing Prospectuses, if
any, identified in Schedule III hereto, (iv) the final term sheet prepared and filed
pursuant to Section 5(b) hereto, if any, and (v) any other Free Writing Prospectus that
the parties hereto shall hereafter expressly agree in writing to treat as part of the
Disclosure Package.
|
18
|
“Effective
Date” shall mean each date and time that the Registration Statement, post-effective
amendment no. 1 thereto and any other post-effective amendment or amendments thereto
became or becomes effective.
|
|
“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.
|
|
“Execution
Time” shall mean the date and time that this Agreement is executed and delivered by
the parties hereto.
|
|
“Final
Prospectus” shall mean the prospectus supplement relating to the Securities that was
first filed pursuant to Rule 424(b) after the Execution Time, together with the Base
Prospectus.
|
|
“Free
Writing Prospectus” shall mean a free writing prospectus (as defined in Rule 405).
|
|
“GAAP” shall
mean generally accepted accounting principles in the United States of America.
|
|
“Issuer
Free Writing Prospectus” shall mean an issuer free writing prospectus (as defined in
Rule 433).
|
|
“Material
Adverse Effect” shall mean a material adverse change or any development that would
reasonably be expected to result in a material adverse change, in or affecting the
business, financial condition, results of operations, properties or management of the
Company and its subsidiaries, taken as a whole.
|
|
“Preliminary
Prospectus” shall mean any preliminary prospectus supplement to the Base Prospectus
referred to in Section 1(a) which is used prior to the filing of the Final Prospectus,
together with the Base Prospectus.
|
|
“Registration
Statement” shall mean the registration statement and post-effective amendment no. 1
thereto referred to in Section 1(a), including exhibits and financial statements and any
prospectus supplement relating to the Securities that is filed with the Commission
pursuant to Rule 424(b) and deemed part of such registration statement pursuant to Rule
430B, as amended on each Effective Date and, in the event any post-effective amendment
thereto becomes effective prior to the Closing Date, shall also mean such registration
statement as so amended.
|
|
“Rule
134", “Rule 158", “Rule 163", “Rule 164", “Rule
172", “Rule 401", “Rule 405", “Rule 415", “Rule
424", “Rule 430B”, “Rule 433", “Rule 436", “Rule
456", “Rule 457” and “Rule 462” refer to such Rules under the
Securities Act.
|
|
“Securities
Act” shall mean the Securities Act of 1933, as amended and the rules and regulations
of the Commission promulgated thereunder.
|
|
“Significant
Subsidiary” shall mean a subsidiary, including its subsidiaries, of the Company
which meets any of the following conditions:
|
|
(i) |
the
Company’s and its other subsidiaries’ investments in and advances
to the subsidiary exceed 10% of the total assets of the Company and its
subsidiaries consolidated as of the end of the Company’s most
recently completed fiscal year; or |
|
(ii) |
the
Company’s and its other subsidiaries’ proportionate share of the
total assets (after intercompany eliminations) of the subsidiary exceeds
10% of the total assets of the Company and its subsidiaries consolidated
as of the end of the Company’s most recently completed fiscal year;
or |
19
|
(iii) |
the
Company’s and its other subsidiaries’ equity in the income from
continuing operations before income taxes, extraordinary items and
cumulative effect of a change in accounting principle of the subsidiary
exceeds 10% of such income of the Company and its subsidiaries
consolidated for the Company’s most recently completed fiscal year. |
|
“Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules
and regulations of the Commission promulgated thereunder.
|
|
“Well-Known
Seasoned Issuer” shall mean a well-known seasoned issuer (as defined in Rule 405).
|
[Remainder of page
left intentionally blank.]
20
If
the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance
shall represent a binding agreement among the Company and the several Underwriters.
|
Very truly yours, |
|
SNAP-ON INCORPORATED |
|
By: /s/ Xxxxxx X. Xxxxx |
|
Name: Xxxxxx X. Xxxxx |
|
Title: Senior Vice President-Finance |
|
and Chief Financial Officer |
The foregoing Agreement is
hereby
confirmed and accepted
as of the date specified in
Schedule I hereto.
Citigroup Global Markets
Inc.
By: |
/s/ Xxxxx X. Xxxxxxxxx
Name: Xxxxx X. Xxxxxxxxx Title: Managing Director |
X.X. Xxxxxx Securities
Inc.
By: |
/s/ Xxxxxx Xxxxxxxxx
Name: Xxxxxx Xxxxxxxxx Title: Vice President |
Mizuho Securities USA Inc.
By: |
/s/ Xxxxxxx Xxxxxx
Name: Xxxxxxx Xxxxxx Title: Managing Director |
UBS Securities LLC
By: |
/s/ Xxxx Xxxxxxx
Name: Xxxx Xxxxxxx Title: Managing Director |
By: |
/s/ Xxxxxxxxxxx Xxxxxxxx
Name: Xxxxxxxxxxx Xxxxxxxx Title: Associate Director |
Barclays Capital Inc.
By: |
/s/ Xxxxxx Xxxxxxx
Name: Xxxxxx Xxxxxxx Title: Director |
For themselves and the other
several Underwriters
named in Schedule II to
the
foregoing Agreement
SCHEDULE I
Underwriting Agreement
dated August 11, 2009
Indenture dated as of January 8,
2007, between Snap-on Incorporated and U.S. Bank National Association, a national banking
corporation, as trustee
Registration Statement
No. 333-139863
Representatives: Citigroup Global
Markets Inc., X.X. Xxxxxx Securities Inc., Mizuho Securities USA Inc., UBS Securities LLC
and Barclays Capital Inc.
Title, Purchase Price and Brief
Description of Securities:
Title: |
6.125%
Notes due 2021 |
Principal amount: |
$250,000,000 |
Purchase price (including accrued interest, if any): |
99.295%
of principal amount. |
Optional Redemption: |
Make-whole
call at any time at Treasury plus 37.5 basis points |
Change of control put: |
101%
of principal amount plus accrued interest |
Closing Date, Time and Location: |
August
14, 2009 at 9:30 a.m. (New York City time) at the offices of
Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, 000 Xxxxxxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 |
Type of Offering: |
Non-delayed |
Date referred to in Section 5(i) |
August 14, 2009 |
after which the Company may offer or |
sell debt securities issued or |
guaranteed by the Company without |
the consent of the Representatives: |
SCHEDULE II
|
Principal Amount of
6.125% Notes due 2021 to be
Purchased
|
Underwriters |
|
|
| |
|
Citigroup Global Markets Inc. | | |
$ | 62,500,000 |
|
X.X. Xxxxxx Securities Inc. | | |
| 62,500,000 |
|
Mizuho Securities USA Inc. | | |
| 37,050,000 |
|
UBS Securities LLC | | |
| 37,050,000 |
|
Barclays Capital Inc. | | |
| 18,700,000 |
|
BBVA Securities Inc. | | |
| 4,025,000 |
|
Credit Suisse Securities (USA) LLC | | |
| 4,025,000 |
|
Fifth Third Securities, Inc. | | |
| 4,025,000 |
|
RBC Capital Markets Corporation | | |
| 4,025,000 |
|
Xxxxxx X. Xxxxx & Co. Incorporated | | |
| 4,025,000 |
|
SG Americas Securities, LLC | | |
| 4,025,000 |
|
The Xxxxxxxx Capital Group, L.P. | | |
| 4,025,000 |
|
U.S. Bancorp Investments, Inc. | | |
| 4,025,000 |
|
|
|
| |
Total | | |
$ | 250,000,000 |
|
|
|
| |
SCHEDULE III
SCHEDULE OF FREE
WRITING PROSPECTUSES INCLUDED IN THE DISCLOSURE PACKAGE
None (other than the final term sheet
referred to in Section 5(b) of this Agreement).
SCHEDULE IV
PRICING TERM SHEET
6.125% Notes due 2021
Issuer: |
Snap-on Incorporated |
|
Title: |
6.125% Notes due 2021 |
|
Principal Amount: |
$250,000,000 |
|
Coupon: |
6.125% |
|
Maturity Date: |
September 1, 2021 |
|
Treasury Benchmark: |
3.125% due May 15, 2019 |
|
Benchmark Treasury Yield: |
3.678% |
|
Spread to Treasury: |
Plus 245 basis points |
|
Yield to Maturity: |
6.128% |
|
Price to Public: |
99.970% of the principal amount |
|
Interest Payment Dates: |
Semi-annually on March 1 and September 1, commencing on |
|
March 1, 2010 |
|
Record Dates: |
February 15 and August 15 |
|
Optional Redemption: |
Make-whole call at any time at Treasury plus 37.5 basis |
|
points |
|
Change of Control Put: |
101% of principal amount plus accrued interest |
|
Settlement Date: |
T+3; August 14, 2009 |
|
Expected Ratings: |
Xxxxx’x: Baa1 (stable outlook) |
|
S&P: A- (negative outlook) |
|
CUSIP: |
833034 AH4 |
|
Active Book-Running Managers: |
Citigroup Global Markets Inc. |
|
X.X. Xxxxxx Securities Inc. |
|
Passive Book-Running Managers: |
Mizuho Securities USA Inc. |
|
UBS Securities LLC |
|
Barclays Capital Inc. |
|
Co-Managers: |
BBVA Securities Inc. |
|
Credit Suisse Securities (USA) LLC |
|
Fifth Third Securities, Inc. |
|
RBC Capital Markets Corporation |
|
Xxxxxx X. Xxxxx & Co. Incorporated |
|
SG Americas Securities, LLC |
|
The Xxxxxxxx Capital Group, L.P. |
|
U.S. Bancorp Investments, Inc. |
The security ratings above are not a
recommendation to buy, sell or hold the securities offered hereby. The ratings may be
subject to revision or withdrawal at any time by the assigning rating organization. Each
of the security ratings above should be evaluated independently of any other security
rating.
The issuer has filed a
registration statement (including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should read the prospectus in that
registration statement and the other documents that the issuer has filed with the SEC for
more complete information about the issuer and this offering. You may get these documents
for free by visiting XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the
issuer, any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at
1-877-858-5407, X.X. Xxxxxx Securities Inc. collect at 0-000-000-0000, Mizuho Securities
USA Inc. toll-free at 0-000-000-0000 (ext. 3143), UBS Securities LLC toll-free at
000-000-0000 (ext. 561-3884) or Barclays Capital Inc. toll-free at 000-000-0000.