HUNTINGTON BANCSHARES INCORPORATED 7.000% Subordinated Notes due 2020 Underwriting Agreement
Exhibit 1.2
EXECUTION VERSION
HUNTINGTON BANCSHARES INCORPORATED
7.000% Subordinated Notes due 2020
December 15, 2010
Xxxxxxx, Xxxxx & Co.
000 Xxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000
As Representative of the several Underwriters
named in Schedule I hereto.
named in Schedule I hereto.
Ladies and Gentlemen:
Huntington Bancshares Incorporated, a Maryland corporation (the “Company”), proposes, subject
to the terms and conditions stated herein, to issue and sell to you, as the representative of the
several underwriters (the “Underwriters”), $300,000,000 aggregate principal amount of its 7.000%
Subordinated Notes due 2020 (the “Securities”) of the Company, to be issued pursuant to the
Subordinated Debt Indenture, dated as of December 29, 2005, between the Company and The Bank of New
York Mellon Trust Company, N.A., as successor to The Bank of New York Mellon (as successor to
JPMorgan Chase Bank, N.A.) (the “Trustee”), as amended and supplemented by a supplemental indenture
to be entered into between the Company and the Trustee (together, the “Indenture”). References
throughout this Agreement to “you” or “your” shall refer to Xxxxxxx, Xxxxx & Co. as representative
of the several Underwriters named in Schedule I hereto.
Capitalized terms used herein and not otherwise defined but that are defined in the Pricing
Prospectus (as defined in Section 1(A)), have the meanings specified in the Pricing Prospectus.
1. Representations and Warranties. The Company represents and warrants to, and agrees
with, the Underwriters as follows:
(A) An “automatic shelf registration statement” as defined under Rule 405 under the Securities
Act of 1933, as amended (the “Act”), on Form S-3 (File Nos. 333-156700, 000-000000-00,
000-000000-00, 000-000000-00 and 333-156700-04) in respect of the Securities has been filed with
the Securities and Exchange Commission (the “Commission”) not earlier than three years prior to the
date hereof; pursuant to the Act, such registration statement, and any post-effective amendment
thereto, became effective on filing; and no stop order suspending the effectiveness of such
registration statement or any part thereof has been issued and no proceeding for that purpose has
been initiated or threatened by the Commission, and 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 Act has been received by the Company (the
base prospectus filed as part of such registration statement, in the form in which it has most
recently been filed with the Commission on or prior to the date of this Agreement, is hereinafter
called the “Basic Prospectus”; any preliminary prospectus (including any preliminary prospectus
supplement) relating to the Securities filed with the Commission pursuant to Rule 424(b) under the
Act is hereinafter called a “Preliminary Prospectus”; the various parts of such registration
statement, including all exhibits thereto but excluding the Trustee’s Statement of Eligibility on
Form T-1 (the “Form T-1”), and including any prospectus supplement relating to the Securities that
is filed with the Commission and deemed by virtue of Rule 430B to be part of such registration
statement, each as amended at the time such part of the registration statement became effective,
are hereinafter collectively called the “Registration Statement”; the Basic Prospectus, as amended
and supplemented immediately prior to the Applicable Time (as defined in Section 1(C)), is
hereinafter called the “Pricing Prospectus”; the form of the final prospectus relating to the
Securities filed with the Commission pursuant to Rule 424(b) under the Act in accordance with
Section 5(A)(a) is hereinafter called the “Prospectus”; any reference herein to the Basic
Prospectus, the Pricing Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to
refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form
S-3 under the Act, as of the date of such prospectus; any reference to any amendment or supplement
to the Basic Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to refer to
and include any post-effective amendment to the Registration Statement, any prospectus supplement
relating to the Securities filed with the Commission pursuant to Rule 424(b) under the Act and any
documents filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
incorporated therein, in each case after the date of the Basic Prospectus, such Preliminary
Prospectus or the Prospectus, as the case may be; any reference to any amendment to the
Registration Statement shall be deemed to refer to and include any annual report of the Company
filed pursuant to Section 13(a) or 15(d) of the Exchange Act after the effective date of the
Registration Statement that is incorporated by reference in the Registration Statement; and any
“issuer free writing prospectus” as defined in Rule 433 under the Act relating to the Securities is
hereinafter called an “Issuer Free Writing Prospectus”);
(B) No order preventing or suspending the use of any Preliminary Prospectus or any Issuer Free
Writing Prospectus has been issued by the Commission, and each Preliminary Prospectus, at the time
of filing thereof, conformed in all material respects to the requirements of the Act and the Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”), and the rules and regulations of the
Commission thereunder, and did not contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided, however, that this
representation and warranty shall not apply to any statements or omissions made in reliance upon
and in conformity with information furnished in writing to the Company by an Underwriter through
you expressly for use therein;
(C) For the purposes of this Agreement, the “Applicable Time” is 2:30 P.M. (Eastern time) on
the date of this Agreement; the Pricing Prospectus as supplemented by the final term sheet prepared
and filed pursuant to Section 5(A)(a), taken together (collectively, the “Pricing Disclosure
Package”) as of the Applicable Time, did not include any untrue statement of a
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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; and each
Issuer Free Writing Prospectus listed on Schedule III does not conflict with the information
contained in the Registration Statement, the Pricing Prospectus or the Prospectus and each such
Issuer Free Writing Prospectus, as supplemented by and taken together with the Pricing Disclosure
Package as of the Applicable Time, did not include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that this
representation and warranty shall not apply to statements or omissions made in an Issuer Free
Writing Prospectus in reliance upon and in conformity with information furnished in writing to the
Company by an Underwriter through you expressly for use therein;
(D) The documents incorporated by reference in the Pricing Prospectus and the Prospectus, when
they became effective or were filed with the Commission, as the case may be, conformed in all
material respects to the requirements of the Act or the Exchange Act, as applicable, and the rules
and regulations of the Commission thereunder, and none of such documents contained an 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; any further documents so filed and
incorporated by reference in the Prospectus or any further amendment or supplement thereto, when
such documents become effective or are filed with the Commission, as the case may be, will conform
in all material respects to the requirements of the Act or the Exchange Act, as applicable, and the
rules and regulations of the Commission thereunder and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading; provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance upon and in conformity with
information furnished in writing to the Company by an Underwriter through you expressly for use
therein; and no such documents were filed with the Commission since the Commission’s close of
business on the business day immediately prior to the date of this Agreement and prior to the
execution of this Agreement, except as set forth on Schedule III(b);
(E) The Registration Statement conforms, and the Prospectus and any further amendments or
supplements to the Registration Statement and the Prospectus will conform, in all material respects
to the requirements of the Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder and do not and will not, as of the applicable effective date as to each part
of the Registration Statement and as of the applicable filing date as to the Prospectus and any
amendment or supplement thereto, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading; provided, however, that this representation and warranty shall not apply to any
statements or omissions made in reliance upon and in conformity with information furnished in
writing to the Company by an Underwriter through you expressly for use therein or those parts of
the Registration Statement which shall constitute a Form T-1 of the Trustee;
(F) (i) Neither the Company nor any of its Significant Subsidiaries (as defined below) has
sustained since the date of the latest audited financial statements included or incorporated by
reference in the Pricing Prospectus any material loss or interference with its business from fire,
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explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than as set forth or
contemplated in the Pricing Prospectus; and (ii) since the respective dates as of which information
is given in the Registration Statement and the Pricing Prospectus, there has not been any material
adverse change in the capital stock (other than the issuance and sale of the common stock of the
Company pursuant to the Underwriting Agreement, dated December 13, 2010, between the Company and,
on behalf of themselves and the several Underwriters named therein, Xxxxxxx, Sachs & Co.) or
long-term debt of the Company or any of its Significant Subsidiaries or any material adverse
change, or any development involving a prospective material adverse change, in or affecting the
general affairs, management, financial position, stockholders’ equity or results of operations of
the Company and its subsidiaries, considered as a whole, otherwise, in any such case described in
clause (i) or (ii), than as set forth or contemplated in the Pricing Prospectus;
(G) The Company has been duly incorporated and is validly existing as a corporation in good
standing under the laws of the State of Maryland, with power and authority (corporate and other) to
own its properties and conduct its business as described in the Pricing Prospectus, and has been
duly qualified as a foreign corporation for the transaction of business and is in good standing
under the laws of each other jurisdiction in which it owns or leases properties or conducts any
business so as to require such qualification, except where the failure to so qualify or be in good
standing would not, individually or in the aggregate, have a material adverse effect on the current
or future financial position, stockholders’ equity or results of operations of the Company and its
subsidiaries, considered as a whole (a “Material Adverse Effect”). Each significant subsidiary (as
defined in Rule 405 under the Act) of the Company as set forth on Schedule V (each, a “Significant
Subsidiary”) has been duly constituted and is validly existing as a corporation, limited liability
company, national banking association or business trust, as applicable, in good standing under the
laws of its jurisdiction of incorporation or formation;
(H) The Company is duly registered as a bank holding company and qualified as a financial
holding company under the Bank Holding Company Act of 1956, as amended (the “BHC Act”);
(I) The Company and each of its subsidiaries are in compliance with all laws administered by
the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Office of
the Comptroller of the Currency (the “OCC”), the Federal Deposit Insurance Corporation (the “FDIC”)
and any other federal or state bank regulatory authorities (together with the Federal Reserve
Board, the OCC and the FDIC, the “Bank Regulatory Authorities”) with jurisdiction over the Company
or any of its subsidiaries, except for failures to be so in compliance that would not individually
or in the aggregate have a Material Adverse Effect;
(J) The Company has an authorized capitalization as set forth in the Pricing Prospectus; and
all of the issued shares of capital stock of the Company have been duly and validly authorized and
are fully paid and non-assessable;
(K) All of the issued shares of capital stock of each Significant Subsidiary that is a
corporation or association have been duly and validly authorized and issued, are fully paid and
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non-assessable and (except for directors’ qualifying shares or as listed in Schedule V) are
owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or
claims;
(L) The Securities have been duly authorized, and, when issued, delivered and paid for at the
Time of Delivery as contemplated by the Pricing Prospectus, will have been duly executed,
authenticated, issued and delivered and will constitute valid and legally binding obligations of
the Company entitled to the benefits provided by the Indenture; the Indenture has been duly
authorized and will constitute a valid and legally binding instrument, enforceable in accordance
with its terms, subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and other laws of general applicability relating to or affecting
creditors’ rights and to general equity principles; and the Securities and the Indenture will
conform to the descriptions thereof in the Pricing Disclosure Package and the Prospectus;
(M) At the Time of Delivery, the Indenture will be duly qualified under the Trust Indenture
Act;
(N) This Agreement has been duly authorized, executed and delivered by the Company;
(O) The issue and sale of the Securities and the compliance by the Company with all of the
provisions of the Securities, the Indenture and this Agreement and the consummation of the
transactions herein and therein contemplated by the Company will not (i) whether with or without
the giving of notice or lapse of time or both, conflict with or constitute a breach or violation
of, or default or Repayment Event under, or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company or any Significant Subsidiary
pursuant to the terms of any material contract, indenture, mortgage, deed of trust, loan or credit
agreement, note, lease or any other agreement or instrument to which the Company or any Significant
Subsidiary is a party or by which it or any of them is bound, or to which any of the property or
assets of the Company or any Significant Subsidiary is subject, or (ii) result in any violation of
the provisions of (A) the Articles of Restatement of Charter, as amended, or the Bylaws of the
Company or other organizational documents of any Significant Subsidiary, or (B) any applicable law,
statute, rule, regulation, judgment, order, writ or decree of any government, government
instrumentality or court having jurisdiction over the Company or any Significant Subsidiary or any
of their properties, assets or operations, except (in the case of (i) or (ii)(B)) for conflicts,
breaches, violations or defaults which would not have a Material Adverse Effect; and no filing
with, or authorization, approval, consent, license, order, registration, qualification or decree
of, any court or governmental authority or agency, domestic or foreign (other than under the Act,
which have been obtained, or as may be required under the securities or Blue Sky laws of the
various states or securities regulations of foreign jurisdictions) is necessary or required in
connection with the issuance and sale of the Securities by the Company or the consummation by the
Company of the transactions contemplated by this Agreement or the Indenture, except such as have
been obtained under the Act and such consents, approvals, authorizations, registrations or
qualifications as may be required under state securities or Blue Sky laws or securities regulations
of foreign jurisdictions in connection with the purchase and distribution of the Securities by the
Underwriters; as used herein, a “Repayment Event” means any event or condition that gives the
holder of any note, debenture or other evidence of indebtedness (or any
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person acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a portion of such indebtedness by the Company or any Significant Subsidiary;
(P) Neither the Company nor any of its Significant Subsidiaries is (A) in violation of its
Articles of Restatement of Charter, as amended, or comparable organizational documents, (B) in
violation of its Bylaws or (C) in default in the performance or observance of any material
obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of trust,
loan agreement, lease or other agreement or instrument to which it is a party or by which it or any
of its properties may be bound, except where such defaults under (B) or (C) would not individually
or in the aggregate have a Material Adverse Effect;
(Q) The statements set forth in the Pricing Prospectus and the Prospectus under the caption
“Description of the Notes,” insofar as they purport to constitute descriptions of contracts,
agreements or other legal documents or describe Federal statutes, rules and regulations, and under
the caption “Underwriting,” insofar as they purport to describe the provisions of the documents
referred to therein, fairly summarize in all material respects the matters set forth therein; the
statements set forth in the Pricing Prospectus and the Prospectus under the caption “Certain United
States Federal Income Tax Consequences” and “Certain Benefit Plan and ERISA Considerations,”
insofar as they purport to constitute a summary of matters of U.S. federal income tax law or the
U.S. Employee Retirement Income Security Act of 1974, as amended, and regulations or legal
conclusions with respect thereto, and subject to the exceptions, qualifications, assumptions and
limitations described therein, are accurate in all material respects;
(R) Other than as set forth in the Pricing Prospectus, there are no legal or governmental
proceedings pending to which the Company or any of its Significant Subsidiaries is a party or of
which any property of the Company or any of its Significant Subsidiaries is the subject that,
individually or in the aggregate, would be reasonably expected to have a Material Adverse Effect;
and, to the Company’s knowledge, no such proceedings are threatened;
(S) The Company is not and, after giving effect to the offering and sale of the Securities and
the application of the proceeds thereof, will not be required to be registered as an “investment
company”, as such term is defined in the Investment Company Act of 1940, as amended (the
“Investment Company Act”);
(T) (A)(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 Act (whether
such amendment was by post-effective amendment, incorporated report filed pursuant to Section 13 or
15(d) of the Exchange Act or form of prospectus), and (iii) at the time the Company or any person
acting on its behalf (within the meaning, for this clause only, of Rule 163(c) under the Act) made
any offer relating to the Securities in reliance on the exemption of Rule 163 under the Act, the
Company was a “well-known seasoned issuer” as defined in Rule 405 under the Act; and (B) 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) under the Act) of the
Securities, the Company was not an “ineligible issuer” as defined in Rule 405 under the Act;
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(U) Deloitte & Touche LLP, who has audited certain financial statements of the Company and its
subsidiaries and the effectiveness of the Company’s internal control over financial reporting, is
an independent registered public accounting firm as required by the Act and the rules and
regulations of the Commission thereunder;
(V) The Company maintains a system of internal control over financial reporting (as such term
is defined in Rule 13a-15(f) under the Exchange Act) that complies with the requirements of the
Exchange Act and has been designed by the Company’s principal executive officer and principal
financial officer, or under their supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles; the Company’s internal
control over financial reporting was effective as of December 31, 2009 and the Company is not aware
of any material weaknesses in its internal control over financial reporting;
(W) Since the date of the latest audited financial statements included or incorporated by
reference in the Pricing Prospectus, there has been no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially
affect, the Company’s internal control over financial reporting;
(X) The Company maintains disclosure controls and procedures (as such term is defined in Rule
13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange Act; such
disclosure controls and procedures have been designed to ensure that material information relating
to the Company and its subsidiaries is made known to the Company’s principal executive officer and
principal financial officer by others within those entities; and such disclosure controls and
procedures were effective as of December 31, 2009;
(Y) Since December 31, 2009, there has been no change in the Company’s disclosure controls and
procedures that has materially affected, or is reasonably likely to materially affect, the
Company’s disclosure controls and procedures;
(Z) The operations of the Company and its subsidiaries have been conducted at all times in
compliance with applicable financial record keeping 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 applicable governmental agency
(collectively, the “Money Laundering Laws”), except where the failure to so comply would not,
individually or in the aggregate, have a Material Adverse Effect, 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 that would, individually or in the aggregate, have a Material
Adverse Effect;
(AA) None of the Company, any of its subsidiaries or, to the knowledge of the Company, any
director, officer, agent, employee of the Company (in their capacities as such) or affiliate of the
Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company
will not use the proceeds of the offering of the Securities
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hereunder, 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 U.S. sanctions administered by OFAC;
(BB) 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 is aware
of or has taken any action, directly or indirectly, that would result in a violation by such
persons of the Foreign Corrupt Practices Act, as amended (the “FCPA”) in any material respect,
including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to give, or authorization of the
giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any
foreign political party or official thereof or any candidate for foreign political office, in
contravention of the FCPA, and the Company, its subsidiaries and, to the knowledge of the Company,
its affiliates have conducted their businesses in compliance with the FCPA in all material respects
and have instituted and maintain policies and procedures designed to ensure, and which are
reasonably expected to continue to ensure, continued compliance therewith.
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 issue and sell to the
Underwriters, and the Underwriters agree, severally but not jointly, to purchase from the Company,
at the purchase price set forth in Schedule II, the aggregate principal amount of Securities set
forth in Schedule II.
3. Delivery and Payment. (a) The Securities to be purchased by the Underwriters
hereunder will be represented by one or more definitive global securities in book-entry form that
will be deposited by or on behalf of the Company with The Depository Trust Company (“DTC”) or its
designated custodian. The time and date of such delivery and payment shall be, with respect to the
Securities, approximately 10:00 A.M. (Eastern time), on December 17, 2010, or at such time and date
as you and the Company may agree upon in writing. Such time and date for delivery of the Securities
is herein called the “Time of Delivery.” The Company will deliver the Securities to Xxxxxxx, Xxxxx
& Co., for the account of each Underwriter, against payment by or on behalf of such Underwriter of
the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified
by the Company to Xxxxxxx, Sachs & Co. at least forty-eight hours in advance, by causing DTC to
credit the Securities to the account of Xxxxxxx, Xxxxx & Co. at DTC. The Company will cause the
certificates representing the Securities to be made available to Xxxxxxx, Sachs & Co. for checking
at least twenty-four hours prior to the Time of Delivery at the office of DTC or its designated
custodian (the “Designated Office”).
(b) The documents to be delivered at the Time of Delivery by or on behalf of the parties
hereto pursuant to Section 7, including the cross-receipt for the Securities and any additional
documents requested by the Underwriters pursuant to Section 7(k) hereof, will be delivered at the
offices of Xxxxxxxx & Xxxxxxxx LLP, 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (the “Closing
Location”), and the Securities will be delivered at the Designated Office, all at the Time of
Delivery. A meeting will be held at the Closing Location at 5:00 P.M., Eastern
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time, on the New York Business Day next preceding the Time of Delivery, at which meeting the
final drafts of the documents to be delivered pursuant to the preceding sentence will be available
for review by the parties hereto. For the purposes of this Section 3, “New York Business Day”
shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in New York City are generally authorized or obligated by law or executive order to
close.
4. Offering by Underwriters. It is understood that the Underwriters propose to offer
the Securities for sale as set forth in the Pricing Disclosure Package and the Prospectus and upon
the terms and conditions set forth therein.
5. Agreements. (A) General. The Company agrees with the Underwriters as
follows:
(a) To prepare the Prospectus in a form approved by you and to file such Prospectus
pursuant to Rule 424(b) under the Act not later than the Commission’s close of business on
the second business day following the date of this Agreement; to make no further amendment
or any supplement to the Registration Statement, the Basic Prospectus or the Prospectus
prior to the Time of Delivery that shall be disapproved by you promptly after reasonable
notice thereof; to advise you, promptly after it receives notice thereof, of the time when
any amendment to the Registration Statement has been filed or becomes effective or any
amendment or supplement to the Prospectus has been filed and to furnish you with copies
thereof; to prepare a final term sheet, containing solely a description of the Securities,
in a form set forth in Schedule IV and to file such term sheet pursuant to Rule 433(d) under
the Act within the time required by such Rule; to file promptly all other material required
to be filed by the Company with the Commission pursuant to Rule 433(d) under the Act; to
file promptly all reports and any definitive proxy or information statements required to be
filed by the Company (to the extent not exempt under Rule 12h-5 under the Exchange Act) with
the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent
to the date of the Prospectus and for so long as the delivery of a prospectus (or in lieu
thereof, the notice referred to in Rule 173(a) under the Act) is required in connection with
the offering or sale of the Securities; to advise you, promptly after the Company receives
notice thereof, of the time when any amendment to the Registration Statement has been filed
or becomes effective or any supplement to the Prospectus or any amended Prospectus has been
filed with the Commission, of the issuance by the Commission of any stop order or of any
order preventing or suspending the use of any Preliminary Prospectus or other prospectus in
respect of the Securities, of any notice of objection of the Commission to the use of the
Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2)
under the Act, of the suspension of the qualification of the Securities for offering or sale
in any jurisdiction, of the initiation or threatening of any proceeding for any such
purpose, or of any request by the Commission for the amending or supplementing of the
Registration Statement or the Prospectus or for additional information; and, in the event of
the issuance of any stop order or of any order preventing or suspending the use of any
Preliminary Prospectus or other prospectus in respect of the Securities or suspending any
such qualification, to promptly use its best efforts to obtain the withdrawal of such order;
and in the event of any such issuance of a notice of
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objection, promptly to take such steps
including, without
limitation, amending the Registration Statement or filing a new registration statement,
at the Company’s own expense, as may be necessary to permit offers and sales of the
Securities by the Underwriters (references herein to the Registration Statement shall
include any such amendment or new registration statement);
(b) If required by Rule 430B(h) under the Act, to prepare a form of prospectus in a
form approved by you and to file such form of prospectus pursuant to Rule 424(b) under the
Act not later than may be required by Rule 424(b) under the Act; and to make no further
amendment or supplement to such form of prospectus that shall be disapproved by you promptly
after reasonable notice thereof;
(c) Promptly from time to time to take such action as you may reasonably request to
qualify the Securities for offering and sale under the securities laws of such jurisdictions
as you may request and to comply with such laws so as to permit the continuance of sales and
dealings therein in such jurisdictions for as long as may be necessary to complete the
distribution of the Securities, provided that in connection therewith the Company shall not
be required to qualify as a foreign corporation or to file a general consent to service of
process in any jurisdiction or to become subject to taxation in any jurisdiction in which it
is not otherwise subject;
(d) The Company will use its reasonable best efforts to furnish to the Underwriters
prior to 10:00 A.M., Eastern time, on the New York business day next succeeding the date of
this Agreement and from time to time, with written and electronic copies of the Prospectus
in New York City in such quantities as you may reasonably request, and, if the delivery of a
prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is
required at any time prior to the expiration of nine months after the time of issue of the
Prospectus in connection with the offering or sale of the Securities and if at such time any
event shall have occurred as a result of which the Prospectus as then amended or
supplemented would include an 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 when such Prospectus (or in lieu thereof, the
notice referred to in Rule 173(a) under the Act) is delivered, not misleading, or, if for
any other reason it shall be necessary during such same period to amend or supplement the
Prospectus or to file under the Exchange Act any document incorporated by reference in the
Prospectus in order to comply with the Act, the Exchange Act or the Trust Indenture Act, to
notify you and upon your request to file such document and to prepare and furnish without
charge to you and to any dealer in securities as many written and electronic copies as you
may from time to time reasonably request of an amended Prospectus or a supplement to the
Prospectus that will correct such statement or omission or effect such compliance; and in
case you are required to deliver a prospectus (or in lieu thereof, the notice referred to in
Rule 173(a) under the Act) in connection with sales of any of the Securities at any time
nine months or more after the time of issue of the Prospectus, upon your request but at your
expense, to prepare and deliver to you as many written and electronic copies as you may
request of an amended or supplemented Prospectus complying with Section 10(a)(3) of the Act;
-10-
(e) To make generally available to its security holders as soon as practicable, but in
any event not later than sixteen months after the effective date of the Registration
Statement (as defined in Rule 158(c) under the Act), an earnings statement (which need not
be audited) of the Company and its subsidiaries, complying with Section 11(a) of the Act and
the rules and regulations of the Commission thereunder (including, at the option of the
Company, Rule 158 under the Act).
(f) During the period beginning from the date hereof and ending at the Time of
Delivery, not to offer, sell, contract to sell or otherwise dispose of, except as provided
hereunder, any securities of the Company that are substantially similar to the Securities,
without your prior written consent;
(g) To pay the required Commission filing fees relating to the Securities within the
time required by Rule 456(b)(1) under the Act without regard to the proviso therein and
otherwise in accordance with Rules 456(b) and 457(r) under the Act;
(h) To use the net proceeds received from the sale of the Securities, in the manner
specified in the Pricing Prospectus under the caption “Use of Proceeds.”
(B) Free Writing Prospectuses.
(a) (i) The Company represents and agrees that, other than the final term sheet
prepared and filed pursuant to Section 5(A)(a), without your prior consent, it has not made
and will not make any offer relating to the Securities that would constitute a “free writing
prospectus” as defined in Rule 405 under the Act;
(ii) Each Underwriter represents and agrees that, without the prior written consent of
the Company, other than the final term sheet prepared and filed pursuant to Section 5(A)(a)
and one or more term sheets relating to the Securities containing customary information and
conveyed to purchasers of Securities which is not required to be filed with the Commission
and is not required to be retained by the Company under Rule 433, it has not made and will
not make any offer relating to the Securities that would constitute a free writing
prospectus; and
(iii) Any such free writing prospectus the use of which has been consented to by the
Company and you (including the final term sheet prepared and filed pursuant to Section
5(A)(a)) is listed on Schedule III(a) or Schedule III(b);
(b) The Company has complied and will comply with the requirements of Rule 433 under
the Act applicable to any Issuer Free Writing Prospectus, including timely filing with the
Commission or retention where required and legending; and
(c) The Company agrees that if at any time following issuance of an Issuer Free Writing
Prospectus any event occurred or occurs as a result of which such Issuer Free Writing
Prospectus would conflict with the information in the Registration Statement, the Pricing
Prospectus or the Prospectus or would include an 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 then prevailing, not misleading, the
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Company will give prompt notice thereof to you and, if requested by you, will prepare
and furnish without charge to each Underwriter an Issuer Free Writing Prospectus or other
document which will correct such conflict, statement or omission; provided, however, that
this Section 5(B)(c) shall not apply to any statements or omissions in an Issuer Free
Writing Prospectus made in reliance upon and in conformity with information furnished in
writing to the Company by an Underwriter through you expressly for use therein.
6. Expenses. The Company covenants and agrees with the Underwriters that the Company
will pay or cause to be paid the following: (i) the fees, disbursements and expenses of the
Company’s counsel and accountants in connection with the registration of the Securities under the
Act and all other expenses in connection with the preparation, printing, reproduction and filing of
the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, any Issuer Free
Writing Prospectus and the Prospectus and amendments and supplements thereto and the mailing and
delivering of copies thereof to the Underwriters and dealers; (ii) the cost of printing or
producing this Agreement, the Indenture, the Blue Sky memorandum, closing documents (including any
compilations thereof) and any other documents in connection with the offering, purchase, sale and
delivery of the Securities; (iii) all expenses in connection with the qualification of the
Securities for offering and sale under state securities laws as provided in Section 5(A)(c),
including the reasonable fees and disbursements of counsel for the Underwriters in connection with
such qualification and in connection with the Blue Sky survey; (iv) any fees charged by securities
rating services for rating the securities; (v) the cost of preparing the Securities; (vi) the fees
and expenses of any trustee and any agent of such trustee and the fees and disbursements of counsel
for such trustee; (vii) filing fees incident to, and the fees and disbursements of counsel for the
Underwriters in connection with, any required review by The Financial Industry Regulatory
Authority, Inc. (“FINRA”) of the terms of the sale of the Securities (provided, however, that the
aggregate fees and disbursements of counsel in connection with clause (iii) above and this clause
(vii) shall not exceed $20,000 without the prior written consent of the Company, which consent will
not be unreasonably withheld); (viii) all fees and expenses in connection with the listing of the
Securities; (ix) the costs and charges of any trustee, transfer agent or registrar or paying agent;
(x) all of the Company’s costs and expenses relating to investor roadshow and similar
presentations; and (xi) all other costs and expenses incident to the performance of its obligations
hereunder which are not otherwise specifically provided for in this Section. It is understood,
however, that, except as provided in this Section and Sections 8 and 9, the Underwriters will pay
all of their own costs and expenses, including the fees of their counsel, transfer taxes on resale
of any of the Securities by it, and any advertising expenses connected with any offers they may
make.
7. Conditions to the Obligations of the Underwriters. The obligations of the
Underwriters, as to Securities to be purchased at the Time of Delivery, shall be subject to the
accuracy of the representations and warranties on the part of the Company contained herein as of
the date hereof and at and as of the Time of Delivery, 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:
(a) The Prospectus shall have been filed with the Commission pursuant to Rule 424(b)
under the Act within the applicable time period prescribed for such filing by
-12-
the rules and regulations under the Act and in accordance with Section 5(A)(a); the
final term sheet contemplated by Section 5(A)(a), and any other material required to be
filed by the Company pursuant to Rule 433(d) under the Act, shall have been filed with the
Commission within the applicable time periods prescribed for such filings by Rule 433; no
stop order suspending the effectiveness of the Registration Statement or any part thereof
shall have been issued and no proceeding for that purpose shall have been initiated or
threatened by the Commission and no notice of objection of the Commission to the use of the
Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2)
under the Act shall have been received; no stop order suspending or preventing the use of
the Prospectus or any Issuer Free Writing Prospectus shall have been issued and no
proceeding for that purpose shall have been initiated or threatened by the Commission; and
all requests for additional information on the part of the Commission shall have been
complied with to your reasonable satisfaction;
(b) Xxxxxxxx & Xxxxxxxx LLP, counsel for the Underwriters, shall have furnished to you
such written opinion or opinions, dated the Time of Delivery, in form and substance
satisfactory to you, with respect to such matters as the Underwriters may reasonably
require, and such counsel shall have received such papers and information as they may
reasonably request to enable them to pass upon such matters;
(c) The Company’s Senior Corporate Counsel or such other internal counsel as shall be
reasonably acceptable to the Underwriters (the “Internal Counsel”), shall have furnished to
you such counsel’s written opinion, to the effect set forth in Annex II(A), dated the Time
of Delivery, in form and substance satisfactory to you;
(d) Xxxxxxx LLP, Maryland counsel for the Company, shall have furnished to you their
written opinion, to the effect set forth in Annex II(B), dated the Time of Delivery, in form
and substance satisfactory to you;
(e) Wachtell, Lipton, Xxxxx & Xxxx, outside counsel for the Company, shall have
furnished to you their written opinion, to the effect set forth in Annex II(C), dated the
Time of Delivery, in form and substance satisfactory to you;
(f) On the date of the Pricing Prospectus at a time prior to the execution of this
Agreement, at 9:30 A.M., Eastern time, on the effective date of any post-effective amendment
to the Registration Statement filed subsequent to the date of this Agreement and also at the
Time of Delivery, Deloitte & Touche LLP shall have furnished to you a letter or letters,
dated the respective dates of delivery thereof, in form and substance satisfactory to you,
to the effect set forth in Annex I hereto, (the executed copy of the letter delivered prior
to the execution of this Agreement is attached as Annex I(A) and a form of letter to be
delivered on the effective date of any post-effective amendment to the Registration
Statement, and as of the Time of Delivery is attached as Annex I(B));
(g) (i) Neither the Company nor any of its subsidiaries shall have sustained since the
date of the latest audited financial statements included or incorporated by reference in the
Pricing Prospectus any loss or interference with its business from fire, explosion, flood or
other calamity, whether or not covered by insurance, or from any
-13-
labor dispute or court or governmental action, order or decree, otherwise than as set
forth or contemplated in the Pricing Prospectus, and (ii) since the respective dates as of
which information is given in the Pricing Prospectus there shall not have been any change in
the capital stock or long-term debt of the Company or any of its subsidiaries or any change,
or any development involving a prospective change, in or affecting the general affairs,
management, financial position, stockholders’ equity or results of operations of the Company
and its subsidiaries, otherwise than as set forth or contemplated in the Pricing Prospectus,
the effect of which, in any such case described in clause (i) or (ii), is in your judgment
so material and adverse as to make it impracticable or inadvisable to proceed with the
public offering or the delivery of the Securities on the terms and in the manner
contemplated in the Prospectus;
(h) The Company shall have complied with the provisions of the first sentence of
Section 5(A)(d) with respect to the furnishing of prospectuses on the business day next
succeeding the date of this Agreement;
(i) On or after the Applicable Time (i) no downgrading shall have occurred in the
rating accorded the Company’s debt securities or preferred stock by any “nationally
recognized statistical rating organization”, as that term is defined in Section 3(a)(62) of
the Exchange Act, and (ii) no such organization shall have publicly announced that it has
under surveillance or review, with possible negative implications, its rating of any of the
Company’s debt securities or preferred stock;
(j) On or after the Applicable Time there shall not have occurred any of the following:
(i) a suspension or material limitation in trading in securities generally on the New York
Stock Exchange or on NASDAQ; (ii) a suspension or material limitation in trading in the
Company’s securities on NASDAQ; (iii) a general moratorium on commercial banking activities
declared by either Federal or New York or Ohio State authorities or a material disruption in
commercial banking or securities settlement or clearance services in the United States; (iv)
the outbreak or escalation of hostilities involving the United States or the declaration by
the United States of a national emergency or war or (v) the occurrence of any other calamity
or crisis or any change in financial, political or economic conditions in the United States
or elsewhere, if the effect of any such event specified in clause (iv) or (v) in your
judgment makes it impracticable or inadvisable to proceed with the public offering or the
delivery of the Securities being delivered at the Time of Delivery on the terms and in the
manner contemplated in the Prospectus;
(k) The Company shall have furnished or caused to be furnished to you at the Time of
Delivery certificates of officers of the Company satisfactory to you as to the accuracy of
the representations and warranties of the Company herein at and as of such time, as to the
performance by the Company of all of its obligations hereunder to be performed at or prior
to such time, as to the matters set forth in subsections (a) and (g) of this Section and as
to such other matters as you may reasonably request.
-14-
8. Indemnification and Contribution.
(a) The Company will indemnify and hold harmless the Underwriters against any losses,
claims, damages or liabilities, joint or several, to which the Underwriters may become
subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of a material fact contained in the Registration Statement, the
Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or
any amendment or supplement thereto, any Issuer Free Writing Prospectus or any “issuer
information” filed or required to be filed pursuant to Rule 433(d) under the Act, 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 will reimburse the Underwriters for any legal or other expenses reasonably incurred by
the Underwriters in connection with investigating or defending any such action or claim as
such expenses are incurred; provided, however, that the Company shall not be liable in any
such case to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement or omission or alleged omission
made in the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the
Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer
Free Writing Prospectus, in reliance upon and in conformity with written information
furnished to the Company by an Underwriter through you expressly for use therein.
(b) The Underwriters will indemnify and hold harmless the Company against any losses,
claims, damages or liabilities to which the Company may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement
thereto, or any Issuer Free Writing Prospectus, 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, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in the Registration Statement, the Basic Prospectus, any
Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any such amendment or
supplement thereto, or any Issuer Free Writing Prospectus, in reliance upon and in
conformity with written information furnished to the Company by an Underwriter through you
for use therein; and will reimburse the Company, as appropriate, for any legal or other
expenses reasonably incurred by the Company in connection with investigating or defending
any such action or claim as such expenses are incurred.
(c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of
notice of the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under such subsection, notify
the indemnifying party in writing of the commencement thereof; but the omission so to notify
the indemnifying party shall not relieve it from any liability that
-15-
it may have to any indemnified party other than under such subsection. In case any
such action shall be brought against any indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and, after notice from the
indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party shall not be liable to such indemnified party under such
subsection for any legal expenses of other counsel or any other expenses, in each case
subsequently incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investigation. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise of, or consent
to the entry of any judgment with respect to, any pending or threatened action or claim in
respect of which indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim) unless such
settlement, compromise or judgment (i) includes an unconditional release of the indemnified
party from all liability arising out of such action or claim and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act, by or on behalf
of any indemnified party.
(d) If the indemnification provided for in this Section 8 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above in
respect of any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or liabilities
(or actions in respect thereof) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Underwriters on the other from the
offering of the Securities. If, however, the allocation provided by the immediately
preceding sentence is not permitted by applicable law or if the indemnified party failed to
give the notice required under subsection (c) above, then each indemnifying party shall
contribute to such amount paid or payable by such indemnified party 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 the Underwriters on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Underwriters on the other shall be
deemed to be in the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company bear to the total underwriting discounts and
commissions received by the Underwriters, in each case as set forth in the table on the
cover page of the Prospectus. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company on the one hand or the Underwriters on the other and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission. The Company on the one hand and the Underwriters on the other agree that it would
not be just and equitable if
-16-
contribution pursuant to this subsection (d) were determined by pro rata allocation or
by any other method of allocation that does not take account of the equitable considerations
referred to above in this subsection (d). The amount paid or payable by an indemnified
party as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
subsection (d), the Underwriters shall not be required to contribute any amount in excess of
the amount by which the total price at which the Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any damages that
the Underwriters have otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation.
(e) The obligations of the Company under this Section 8 shall be in addition to any
liability that the Company may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls the Underwriters within the meaning of the
Act; and the obligations of the Underwriters under this Section 8 shall be in addition to
any liability which the Underwriters may otherwise have and shall extend, upon the same
terms and conditions, to each officer and director of the Company and to each person, if
any, who controls the Company within the meaning of the Act.
9. Underwriter Default.
(A) If any Underwriter shall default in its obligation to purchase the Securities which it has
agreed to purchase hereunder, without relieving any defaulting Underwriter from liability for its
default, you may in your discretion arrange for you or another party or other parties to purchase
such Securities on the terms contained herein. If within thirty-six hours after such default by any
Underwriter you do not arrange for the purchase of such Securities, then the Company shall be
entitled to a further period of thirty-six hours within which to procure another party or other
parties satisfactory to you to purchase such Securities on such terms. In the event that, within
the respective prescribed periods, you notify the Company that you have so arranged for the
purchase of such Securities, or the Company notifies you that it has so arranged for the purchase
of such Securities, you or the Company shall have the right to postpone the Time of Delivery for a
period of not more than seven days, in order to effect whatever changes may thereby be made
necessary in the Registration Statement or the Prospectus, or in any other documents or
arrangements, and the Company agrees to file promptly any amendments or supplements to the
Registration Statement or the Prospectus which in your opinion may thereby be made necessary. The
term “Underwriter” as used in this Agreement shall include any person substituted under this
Section with like effect as if such person had originally been a party to this Agreement with
respect to such Securities.
(B) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a) above,
the aggregate liquidation amount of such Securities which remains unpurchased does not exceed one
eleventh of the aggregate liquidation amount of all the Securities, then the Company
-17-
shall have the right to require each non-defaulting Underwriter to purchase the liquidation
amount of Securities which such Underwriter agreed to purchase hereunder and, in addition, to
require each non-defaulting Underwriter to purchase its pro rata share (based on the liquidation
amount of the Securities which such Underwriter agreed to purchase hereunder) of the Securities of
such defaulting Underwriter or Underwriters for which such arrangements have not been made; but
nothing herein shall relieve a defaulting Underwriter from liability for its default.
(C) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a) above,
the aggregate liquidation amount of Securities which remains unpurchased exceeds one eleventh of
the aggregate liquidation amount of all the Securities, or if the Company shall not exercise the
right described in subsection (b) above to require non-defaulting Underwriters to purchase the
Securities of a defaulting Underwriter or Underwriters, then this Agreement shall thereupon
terminate, without liability on the part of any non-defaulting Underwriter to the Company and
without any liability on the part of the Company to any Underwriter, except for the expenses to be
borne by the Company and the Underwriters as provided in Section 6 hereof and the indemnity and
contribution agreements in Section 8 hereof; but nothing herein shall relieve a defaulting
Underwriter from liability for its default.
10. Expenses on Termination. If for any reason the Securities are not delivered by or
on behalf of the Company as provided herein for any reason other than the termination of this
Agreement pursuant to Section 9(C) or the default by one or more of the Underwriters in its or
their respective obligations, the Company will reimburse the Underwriters for all reasonable
out-of-pocket expenses, including reasonable fees and disbursements of counsel, reasonably incurred
by the Underwriters in making preparations for the purchase, sale and delivery of the Securities
but the Company shall then be under no further liability to the Underwriters except as provided in
Section 6 and Section 8.
11. Time is of the Essence. Time shall be of the essence of this Agreement. As used
herein, the term “business day” shall mean any day when the Commission’s office in Washington, D.C.
is open for business.
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 the Underwriters, the Company or
any of the controlling persons referred to in Section 8(e), and will survive delivery of and
payment for the Securities. The provisions of Sections 6 and 8 shall survive the termination or
cancellation of this Agreement.
13. Arm’s-Length Terms. The Company acknowledges and agrees that (i) 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, on the other, (ii) in connection therewith and
with the process leading to such transaction the Underwriters are acting solely as a principal and
not the agent or fiduciary of the Company, (iii) the Underwriters have not assumed an advisory or
fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby
or the process leading thereto (irrespective of whether the
-18-
Underwriters have advised or is currently advising the Company on other matters) or any other
obligation to the Company except the obligations expressly set forth in this Agreement and (iv) the
Company has consulted its own legal and financial advisors to the extent it deemed appropriate. The
Company agrees that it will not claim that the Underwriters have rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to the Company, in connection with such
transaction or the process leading thereto.
14. No Other Agreements. This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Company and the Underwriters with respect to
the subject matter hereof.
15. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors, heirs, executors, and administrators, and the
officers and directors and controlling persons referred to in Section 8, and no other person will
have any right or obligation hereunder.
16. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.
17. Waiver of Jury Trial. The Company and the Underwriters hereby irrevocably waive,
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.
18. Counterparts; Notices. This Agreement may be signed in any number of
counterparts, each of which shall be deemed an original, which taken together shall constitute one
and the same instrument.
All notices hereunder shall be in writing or by telegram if promptly confirmed in writing, and
if to the Underwriters shall be sufficient in all respects if delivered or sent by mail, telex or
facsimile transmission to the address of Xxxxxxx, Xxxxx & Co., as set forth in Schedule II; and if
to the Company shall be sufficient in all respects if delivered or sent by mail, telex or facsimile
transmission to its address set forth in the Registration Statement, Attention: General Counsel and
Secretary.
In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record
information that identifies its clients, including the Company.
19. Disclosure of Tax Treatment. Notwithstanding anything herein to the contrary, the
Company is authorized to disclose to any persons the U.S. federal and state income tax treatment
and tax structure of the potential transaction and all materials of any kind (including tax
opinions and other tax analyses) provided to the Company relating to that treatment and structure,
without the Underwriters, imposing any limitation of any kind. However, any information relating
to the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall
not apply) to the extent necessary to enable any person to comply with securities laws. For this
purpose, “tax structure” is limited to any facts that may be relevant to that treatment.
[THE NEXT PAGE IS THE SIGNATURE PAGE]
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If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us four counterparts hereof, whereupon this letter and your acceptance shall represent a
binding agreement between the Company and the Underwriters.
| Very truly yours, HUNTINGTON BANCSHARES INCORPORATED |
||||
| By: | /s/ Xxxxxx X. Xxxxxx | |||
| Name: | Xxxxxx X. Xxxxxx | |||
| Title: | Senior Executive Vice President, CFO & Treasurer |
|||
| Accepted as of the date hereof: |
||||
| /s/ Xxxxxxx, Sachs & Co. | ||||
| (Xxxxxxx, Xxxxx & Co.) | ||||
| On behalf of each of the Underwriters | ||||
SCHEDULE I
| Underwriters | Amount of Securities |
|||
Xxxxxxx, Sachs & Co. |
$ | 144,000,000 | ||
Xxxxxx Xxxxxxx & Co. Incorporated |
60,000,000 | |||
Sandler X’Xxxxx & Partners, L.P. |
60,000,000 | |||
Barclays Capital Inc. |
36,000,000 | |||
Total |
$ | 300,000,000 | ||
SCHEDULE II
Title of Securities:
7.000% Subordinated Notes due 2020 of Huntington Bancshares
Incorporated (the “Notes”)
Incorporated (the “Notes”)
Aggregate Principal Amount of Securities:
$300,000,000
Initial Public Offering Price:
100% of the aggregate principal amount of the Notes
Proceeds, before Expenses, to the Issuer:
99.125% of the aggregate principal amount of the Notes
Specified Funds for Payment of Purchase Price:
Immediately available funds by wire
Time of Delivery:
December 17, 2010; 10:00 A.M. (Eastern time)
Closing Location:
Xxxxxxxx & Xxxxxxxx LLP
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Address for Notices, etc.:
Xxxxxxx, Sachs & Co.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Registration Department
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Registration Department
II-2
SCHEDULE III
(a) Issuer Free Writing Prospectuses not included in the Pricing Disclosure Package:
None
(b) Issuer Free Writing Prospectuses included in the Pricing Disclosure Package:
Final Term Sheet, dated December 15, 2010
(c) Additional Documents Incorporated by Reference:
None
II-3
SCHEDULE IV
HUNTINGTON BANCSHARES INCORPORATED
FINAL TERM SHEET
7.000% SUBORDINATED NOTES DUE 2020
Issuer:
|
Huntington Banchares Incorporated | |
Security Type:
|
Subordinated Notes | |
Legal Format:
|
SEC Registered (Registration Statement No. 333-156700) | |
Aggregate Principal Amount Offered:
|
$300,000,000 | |
Ratings
|
Baa3/BBB-/BBB (Stable/Stable/Stable) (Xxxxx’x/S&P/Fitch) | |
Minimum Denominations:
|
$2,000 | |
Minimum Increments:
|
$1,000 | |
Pricing Date:
|
December 15, 2010 | |
Settlement Date:
|
December 17, 2010 (T+2 days) | |
Maturity Date:
|
December 15, 2020 | |
Interest Payment Dates:
|
June 15 and December 15, commencing on June 15, 2011 | |
Redemption Provision:
|
The notes may not be redeemed prior to maturity | |
Reference Benchmark:
|
2.625% due November 15, 2020 | |
Benchmark Yield:
|
3.551% | |
Spread to Benchmark:
|
T+344.9 bps | |
Reoffer Yield:
|
7.000% | |
Coupon:
|
7.000% | |
Price to Investors (%):
|
100.0% | |
CUSIP:
|
000000XX0 | |
ISIN:
|
US446150AG96 | |
Book-Running Manager:
|
Xxxxxxx, Sachs & Co. | |
Joint Lead Managers:
|
Xxxxxx Xxxxxxx & Co. Incorporated Sandler X’Xxxxx & Partners, L.P. |
|
Co-Manager:
|
Barclays Capital Inc. |
| *Note: | A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
This communication is intended for the sole use of the person to whom it is provided by us.
The issuer has filed a registration statement (including a prospectus and preliminary prospectus
supplement) with the Securities and Exchange Commission for the offering to which this
communication relates. Before you invest, you should read the prospectus in that registration
statement and other documents the issuer has filed with the Securities and Exchange Commission for
more complete information about the issuer and this offering. You may get these documents for free
by visiting XXXXX on the Web site of the Securities and Exchange Commission at xxx.xxx.xxx.
Copies of the prospectus, preliminary prospectus supplement and any subsequently filed prospectus
supplements relating to the offering may be obtained from Xxxxxxx, Xxxxx & Co., 000 Xxxx Xxxxxx,
Xxx Xxxx, XX 00000, Attention: Prospectus Department (1-866-471-2526).
Terms are used in this term sheet with the meanings assigned to them in
the preliminary prospectus
supplement subject to completion, dated December 15, 2010, included in the registration statement
referred to above.
II-2
SCHEDULE V
SIGNIFICANT SUBSIDIARY
| (1) | HNB I LLC | |
| (2) | Huntington LT. | |
| (3) | Huntington West, Inc. | |
| (4) | Huntington Preferred Capital Holdings, Inc. | |
| (5) | Huntington Preferred Capital Inc. |
| • | Class A Preferred Stock: 105 shares (out of 1,000 total shares) are owned by present and former employees of the Company or its subsidiaries | ||
| • | Class C Preferred Stock: 100% owned by public shareholders |
| (6) | Huntington Municipal Securities, Inc. | |
| (7) | Huntington Capital Financing Holdings I, Inc. | |
| (8) | Huntington Capital Financing Holdings II, Inc. | |
| (9) | Huntington Preferred Capital II, Inc. |
| • | Class A Preferred Stock: 206 shares (out of 2,000 total shares) are owned by present and former employees of the Company or its subsidiaries | ||
| • | Common Stock: 154 shares (out of 139,724 total shares) are owned by Franklin Asset, LLC | ||
| • | Class C Preferred Stock: 100% owned by Franklin Asset, LLC |
| (10) | The Huntington National Bank |
