400,000 NORMAL APEX NATIONAL CITY PREFERRED CAPITAL TRUST I NATIONAL CITY CORPORATION Underwriting Agreement
Exhibit
1.2
400,000 NORMAL APEX
NATIONAL CITY PREFERRED CAPITAL TRUST I
12.000% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities
(liquidation amount $1,000 per security)
fully and unconditionally guaranteed by
(liquidation amount $1,000 per security)
fully and unconditionally guaranteed by
NATIONAL CITY CORPORATION
Underwriting Agreement
January 23, 2008
Xxxxxxx, Xxxxx & Co.
00 Xxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000.
00 Xxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000.
Ladies and Gentlemen:
National City Preferred Capital Trust I, a statutory trust created under the laws of the State
of Delaware (the “Trust”), and National City Corporation, a Delaware corporation (the “Guarantor”),
as depositor of the Trust and as Guarantor under the Guarantee referred to herein, propose, subject
to the terms and conditions stated herein, to sell to you, as the underwriter (the “Underwriter”),
the 12.000% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities,
liquidation amount $1,000 per security, of the Trust that are specified in Schedule I (the “Normal
APEX”). The Normal APEX consist of (i) 400,000 Normal APEX (the “Firm Normal APEX”) and (ii) and
at the election of the Underwriter, up to an additional 60,000 Normal APEX, as provided in Section
2 (the “Optional Normal APEX”). The proceeds of the sale of the Normal APEX and of the common
securities of the Trust (the “Trust Common Securities”) to be sold by the Trust to the Guarantor
are to be invested in $400,100,000 principal amount (or up to $460,100,000 principal amount if the
Underwriter exercises in full its option to purchase Optional Normal APEX) of the Guarantor’s
Remarketable Junior Subordinated Notes due 2043 (the “Junior Subordinated Notes”), to be issued
pursuant to the Junior Subordinated Indenture, dated as of November 3, 2006, between the Guarantor
and The Bank of New York Trust Company, N.A. (the “Indenture Trustee,” and such Junior Subordinated
Indenture, the “Base Indenture”), as amended and supplemented by a supplemental indenture between
the Guarantor and the Indenture Trustee (the “Supplemental Indenture” and, together with the Base
Indenture, the “Indenture”), to be entered into on or before the First Time of Delivery. The Trust
will contemporaneously enter into (i) a Stock Purchase Contract Agreement (the “Stock Purchase
Contract Agreement”) with the Guarantor, pursuant to which the Trust will agree to purchase 4,001
Stock Purchase Contracts (or up to 4,601 Stock Purchase Contracts if the Underwriter exercises in
full its option to purchase Optional Normal APEX) (each a “Stock
Purchase Contract”), each having a stated amount of $100,000 and obligating the Trust to
purchase from the Guarantor, and the Guarantor to sell to the Trust, subject to the terms thereof,
one share of the Guarantor’s Non-Cumulative Perpetual Preferred Stock, Series E, $100,000
liquidation preference per share (the “Preferred Stock”), on the Stock Purchase Date provided for
(and as defined in) the Stock Purchase Contract Agreement, and (ii) a Collateral Agreement (the
“Collateral Agreement”) with Wilmington Trust Company, as collateral agent (the “Collateral
Agent”), under which the Trust will initially pledge the Junior Subordinated Notes to secure its
obligation to purchase Preferred Stock under the Stock Purchase Contracts.
Capitalized terms used herein and not otherwise defined but that are defined in the Pricing
Prospectus (as defined in Section 1(A)(a)), have the meanings specified in the Pricing Prospectus.
1. Representations and Warranties. (A) Each of the Guarantor and the Trust jointly
and severally represents and warrants to, and agrees with, the Underwriter as follows (except that
the representation, warranty and agreement in paragraph (d) of this Section 1(A) is given only by
the Guarantor and not by the Trust):
(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. 333-148769 and
333-148769-03) in respect of the Normal APEX and related securities (including the Capital
APEX, the Stripped APEX, the Junior Subordinated Notes, the Guarantee, the Stock Purchase
Contracts and the Preferred Stock (collectively, the “Related 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; no stop order suspending the
effectiveness of such registration statement or any part thereof has been issued, no
proceeding for that purpose has been initiated or, to the Guarantor’s knowledge, 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 Guarantor or the Trust (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 Normal APEX 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 any Trustee’s Statement
of Eligibility on Form T-1 (each a “Form T-1”), and including any prospectus supplement
relating to the Normal APEX 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(A)(c)), is hereinafter called the
“Pricing Prospectus”; the form of the final prospectus relating to the Normal APEX 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
APEX Underwriting Agreement
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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 Normal APEX 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 Guarantor 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 Normal APEX 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 Guarantor by the
Underwriter expressly for use therein.
(c) For the purposes of this Agreement, the “Applicable Time” is 4:20 P.M. (New York
City 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 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 I(a)
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 Guarantor by the
Underwriter expressly for use therein.
APEX Underwriting Agreement
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(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 Guarantor by the Underwriter 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 I(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 Guarantor by the
Underwriter expressly for use therein.
(f) The Trust has been duly created and is validly existing as a statutory trust in
good standing under the laws of the State of Delaware and at each Time of Delivery will have
the power and authority (trust and other) to own its property and conduct its business as
described in the Registration Statement, the Pricing Disclosure Package and the Prospectus
and to execute and deliver and perform its obligations under the Transaction Agreements, as
defined in the Trust Agreement (for purposes of this Agreement, the “Trust Transaction
Agreements”).
(g) The Trust has conducted and will conduct no business other than the transactions
contemplated by this Agreement and the Amended and Restated Trust Agreement in substantially
the form previously provided to you and to be entered into at or before the First Time of
Delivery among the Guarantor, as Sponsor, The Bank of New York Trust Company, N.A., as
Property Trustee, BNYM (Delaware), as Delaware Trustee, and the individuals named therein,
as Administrative Trustees (collectively, the “Trustees,” and such Amended and Restated
Trust Agreement, the “Trust Agreement”)
APEX Underwriting Agreement
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and described in the Pricing Prospectus and the Prospectus; the Trust is not, and at
each Time of Delivery will not be, a party to or bound by any agreement or instrument other
than this Agreement, the Trust Agreement and the other Trust Transaction Agreements; and the
Trust has no liabilities or obligations other than those arising out of the transactions
contemplated by the Trust Transaction Agreements and described in the Pricing Prospectus and
the Prospectus.
(h) At each Time of Delivery, the Normal APEX will have been duly authorized and, when
issued, delivered and paid for pursuant to this Agreement, will have been duly and validly
issued and will be fully paid and non-assessable beneficial interests in the Trust entitled
to the benefits of the Trust Agreement, and the Normal APEX will conform to the description
thereof in the Pricing Disclosure Package and the Prospectus.
(i) At each Time of Delivery, the Capital APEX and the Stripped APEX will have been
duly authorized and, if issued and delivered in accordance with the Trust Agreement, will
have been duly and validly issued and will be fully paid and non-assessable beneficial
interests in the Trust entitled to the benefits of the Trust Agreement, and the Capital APEX
and the Stripped APEX when issued will conform to the descriptions thereof in the Pricing
Disclosure Package and the Prospectus.
(j) At the First Time of Delivery, the Trust Common Securities will have been duly
authorized and will have been duly and validly issued and will be fully paid (subject to the
qualifications described in the proviso to Section 6(d)(vi)) beneficial interests in the
Trust entitled to the benefits of the Trust Agreement and will conform to the description
thereof contained in the Pricing Disclosure Package and the Prospectus; the issuance of the
Trust Common Securities is not subject to preemptive or other similar rights; at each Time
of Delivery, all of the issued and outstanding Trust Common Securities will be directly
owned by the Guarantor, free and clear of all liens, encumbrances, equities or claims; and
the Trust Common Securities and the APEX are the only beneficial interests in the Trust
authorized to be issued by the Trust.
(k) The holders of the Normal APEX, and if and when issued the Capital APEX and
Stripped APEX, will be entitled to the same limitation on personal liability that is
extended to stockholders of private corporations for profit organized under the General
Corporation Law of the State of Delaware.
(l) At the each Time of Delivery, each Trust Transaction Agreement will have been duly
authorized, executed and delivered by the Trust and will constitute a valid and legally
binding instrument of the Trust, enforceable in accordance with its terms, subject, as to
enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and to general equity principles;
and the Trust Transaction Agreements will conform to the descriptions thereof contained in
the Pricing Disclosure Package and the Prospectus.
(m) This Agreement has been duly authorized, executed and delivered by the Trust.
APEX Underwriting Agreement
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(n) The provisions of the Collateral Agreement are effective to create in favor of the
Collateral Agent for the benefit of the Guarantor a valid security interest under the
Uniform Commercial Code as in effect in the State of New York on the date hereof (the “UCC”)
in all “security entitlements” (as defined in Section 8-102(a)(17) of the UCC and the
Federal Book-Entry Regulations) now or hereafter carried in or to the Junior Subordinated
Notes (other than the Junior Subordinated Notes excluded from the definition of “Collateral”
in the Collateral Agreement) or treasury securities included in the collateral account
established pursuant to the Collateral Agreement (the “Pledged Securities Entitlements”);
and the provisions of the Collateral Agreement are effective under the UCC and the Federal
Book-Entry Regulations to perfect the security interest of the Collateral Agent for the
benefit of the Guarantor in the Pledged Security Entitlements. “Federal Book-Entry
Regulations” means (a) the federal regulations contained in Subpart B (“Treasury/Reserve
Automated Debt Entry System (TRADES)” governing Book-Entry Securities consisting of U.S.
Treasury bonds, notes and bills) and Subpart D (“Additional Provisions”) of 31 C.F.R. Part
357, 31 C.F.R. Section 357.10 through Section 357.14 and Section 357.41 through Section
357.44 (including related defined terms in 31 C.F.R. Section 357.2); and (b) to the extent
substantially identical to the federal regulations referred to in clause (a) above (as in
effect from time to time), the federal regulations governing other Book-Entry Securities.
(o) At each Time of Delivery, the Trust will have all power and authority necessary to
execute and deliver the APEX, the Trust Common Securities and the Trust Transaction
Agreements and to perform its obligations thereunder; the issuance by the Trust of the
Normal APEX at each Time of Delivery and the Trust Common Securities at the First Time of
Delivery, the Exchanges (as defined in the Trust Agreement) and the related issuances of
Capital APEX and Stripped APEX in accordance with the Trust Agreement, the purchase by the
Trust of the Junior Subordinated Notes at each Time of Delivery, the purchase by the Trust
of shares of Preferred Stock pursuant to the Stock Purchase Contract Agreement, and, the
execution and delivery by the Trust of the Trust Transaction Agreements and the performance
by it of its obligations thereunder will not, whether with or without the giving of notice
or lapse of 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 Trust or the Guarantor or any subsidiary of
the Guarantor pursuant to any material contract, indenture, mortgage, deed of trust, loan or
credit agreement, note, lease or any other agreement or instrument to which the Trust or the
Guarantor or any such subsidiary is a party or by which it or any of the them may be bound,
or to which any of the property or assets of the Trust or Guarantor or any such subsidiary
is subject (except for the creation of a continuing first priority security interest in and
to the Collateral, as defined and contemplated under the Collateral Agreement to be entered
into among the Guarantor, the Collateral Agent (in that and in other capacities) and the
Issuer Trust on or before the First Time of Delivery), nor will such action result in any
violation of the provisions of the Amended and Restated Certificate of Incorporation, as
amended, or First Restatement of By-laws of the Guarantor or the Trust Agreement or other
organizational documents of the Trust or any subsidiary, or any applicable law, statute,
rule, regulation, judgment, order, writ or decree of any government, government
instrumentality or court, domestic or foreign, having jurisdiction over the Guarantor, the
APEX Underwriting Agreement
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Trust or any subsidiary of the Guarantor or any of their properties, assets or
operations; 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 Securities Act, which have been obtained, or as
may be required under the securities or Blue Sky laws of the various states) is necessary or
required in connection with the execution, delivery and performance by the issue and sale of
the Normal APEX and the Trust Common Securities by the Trust, the Exchanges and the related
issuances of Capital APEX and Stripped APEX in accordance with the terms of the Trust
Agreement, the purchase by the Trust of the Junior Subordinated Notes, the purchase by the
Trust of shares of Preferred Stock pursuant to the Stock Purchase Contract Agreement or the
execution, delivery or performance by the Trust of any of the Trust Transaction Agreements
or the consummation by the Trust of the transactions contemplated thereby, 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 in connection
with the purchase and distribution of the Normal APEX by the Underwriter. 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 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 Guarantor, the Trust or any subsidiary of the Guarantor.
(p) The Trust is not and, after giving effect to the offering and sale of the Normal
APEX will not be, an “investment company” or an entity “controlled” by an “investment
company,” as such terms are defined in the Investment Company Act of 1940, as amended (the
“Investment Company Act”).
(B) The Guarantor represents and warrants to, and agrees with, the Underwriter that:
(a) Neither the Guarantor nor any of its “significant subsidiaries” (as such term is
used in Rule 1-02(w) of Regulation S-X under the Securities Act; and together with National
City Bank, each a “Significant Subsidiary” and collectively, the “Significant Subsidiaries”)
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, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or decree, other
than as set forth or contemplated in the Pricing Prospectus; and, since the respective dates
as of which information is given in the Registration Statement and the Pricing Prospectus,
there has not been any change in the capital stock of the Guarantor or any of its
Significant Subsidiaries (other than (i) the repurchases of common stock of the Guarantor in
an aggregate amount that is less than 1% of the number of outstanding shares of common stock
on the date hereof and (ii) issuances or other transfers of capital stock in the ordinary
course of business pursuant to the Guarantor’s employee benefit plans), any increase in the
long-term debt of the Guarantor and its subsidiaries, or any material adverse change, or any
development that is reasonably likely to involve a prospective material adverse change, in
the condition, financial or otherwise, or in the earnings, business affairs or business
prospects of the
APEX Underwriting Agreement
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Trust or the Guarantor and the consolidated subsidiaries of the Guarantor considered as
one enterprise, whether or not arising in the ordinary course of business, other than as set
forth or contemplated in the Pricing Prospectus.
(b) The Guarantor has been duly incorporated and is validly existing as a corporation
in good standing under the laws of the State of Delaware, is duly registered as a bank
holding company under the Bank Holding Company Act of 1956, as amended, with corporate power
and authority to own, lease and operate its properties and to conduct its business as
described in the Pricing Prospectus, and has been duly qualified as a foreign corporation to
transact business and is in good standing in each other jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure to so qualify or to be in good standing would
not, individually or in the aggregate, have a Material Adverse Effect.
(c) Each Significant Subsidiary has been duly organized and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its incorporation, and
has corporate power and authority to own, lease and operate its properties and to conduct
its business as described in the Pricing Prospectus and is duly qualified as a foreign
corporation to transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure so to qualify or to be in good standing would
not have a Material Adverse Effect; except as otherwise disclosed in the Registration
Statement, all of the issued and outstanding capital stock of each such Significant
Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable
(subject to the provisions of Section 55 of Title 12 of the United States Code in the case
of Significant Subsidiaries that are national banking associations or similar provisions
applicable to other depository institution subsidiaries or the Guarantor under the laws of
the respective jurisdictions in which they are organized) and, except for any director’s
qualifying shares, is owned by the Guarantor, directly or through subsidiaries, free and
clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity; none
of the outstanding shares of capital stock of any Significant Subsidiary was issued in
violation of the preemptive or similar rights of any securityholder of such Significant
Subsidiary; and 100% of its capital stock, other than any director’s qualifying shares, is
owned by the Guarantor, directly or through subsidiaries, free and clear of any mortgage,
pledge, lien, encumbrance, claim or equity.
(d) The authorized, issued and outstanding capital stock of the Guarantor is as set
forth in the Pricing Prospectus (except for subsequent issuances, if any pursuant to
reservations, agreements or employee benefit, employee stock purchase or dividend
reinvestment plans referred to in the Pricing Prospectus or pursuant to the exercise of
convertible securities or options referred to in the Pricing Prospectus, as described in the
Pricing Prospectus), and all of the issued and outstanding shares of capital stock of the
Guarantor have been duly authorized and validly issued and are fully paid and
non-assessable; all of the issued and outstanding shares of capital stock of each
Significant Subsidiary of the Guarantor have been duly authorized and validly issued, are
fully paid and non-assessable and (except for directors’ qualifying shares) are owned
directly or
APEX Underwriting Agreement
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indirectly by the Guarantor, free and clear of all liens, encumbrances, equities or
claims; and none of the outstanding shares of capital stock of the Guarantor was issued in
violation of the preemptive or other similar rights of any securityholder of the Guarantor.
(e) Each of the Administrative Trustees is an employee of the Guarantor or one of its
affiliates and, at each Time of Delivery, the Trust Agreement will have been duly executed
and delivered by each Administrative Trustee and will constitute a valid and legally binding
instrument of each Administrative Trustee, enforceable in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of
general applicability relating to or affecting creditors’ rights and to general equity
principles.
(f) The Junior Subordinated Notes have been duly authorized, and, when issued,
delivered and paid for at each 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 Guarantor entitled to the benefits provided by the
Indenture; the Indenture has been duly authorized and, at each Time of Delivery, the
Indenture will be duly qualified under the Trust Indenture Act and will constitute a valid
and legally binding instrument, enforceable in accordance with its terms, subject, as to
enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and to general equity principles;
and the Junior Subordinated Notes and the Indenture will conform to the descriptions thereof
in the Pricing Disclosure Package and the Prospectus.
(g) The shares of Preferred Stock to be issued by the Guarantor to the Trust under the
Stock Purchase Contracts on the Stock Purchase Date have been duly and validly authorized
and, when issued and delivered against payment therefor as provided in the Stock Purchase
Contract Agreement and as provided in the Guarantor’s Amended and Restated Certificate of
Incorporation, as amended, will be duly and validly issued and fully paid and non-assessable
and will conform to the descriptions thereof contained in the Pricing Disclosure Package and
the Prospectus.
(h) Each of the Trust Agreement, the Guarantee Agreement, the Stock Purchase Contract
Agreement and the Collateral Agreement (collectively, the “Other Guarantor Transaction
Agreements” and, together with this Agreement, the Indenture and the Junior Subordinated
Notes, the “Guarantor Transaction Agreements”) has been duly authorized by the Guarantor
and, when executed and delivered at the First Time of Delivery, will constitute a valid and
legally binding instrument of the Guarantor, enforceable in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of
general applicability relating to or affecting creditors’ rights and to general equity
principles; and officers of the Guarantor have been authorized to prepare and execute a
Remarketing Agreement on behalf of the Guarantor and the Trust.
(i) This Agreement has been duly authorized, executed and delivered by the Guarantor.
APEX Underwriting Agreement
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(j) The Guarantor has all power and authority (corporate and other) necessary to
execute and deliver (1) the Remarketing Agreement and, (2) on the Stock Purchase Date,
certificates representing the Preferred Stock to be then issued, and to perform its
obligations under the Guarantor Transaction Agreements, the Remarketing Agreement and the
Preferred Stock; the execution, delivery and performance of the Guarantor Transaction
Agreements, the Remarketing Agreement and the terms of the Preferred Stock as established in
the Guarantor’s Amended and Restated Certificate of Incorporation, as amended, once issued,
by the Guarantor and compliance with the provisions thereof and the consummation of the
transactions herein and therein contemplated by the Guarantor will not, whether with or
without the giving of notice or lapse of 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 Trust or the Guarantor or
any subsidiary of the Guarantor pursuant to any material contract, indenture, mortgage, deed
of trust, loan or credit agreement, note, lease or any other agreement or instrument to
which the Trust or the Guarantor or any subsidiary of the Guarantor is a party or by which
it or any of the them may be bound, or to which any of the property or assets of the Trust
or Guarantor or any such subsidiary is subject (except for the creation of a continuing
first priority security interest in and to the Collateral, as defined and contemplated under
the Collateral Agreement to be entered into among the Guarantor, the Collateral Agent (in
that and in other capacities) and the Issuer Trust on or before the First Time of Delivery),
nor will such action result in any violation of the provisions of the Amended and Restated
Certificate of Incorporation, as amended, or First Restatement of By-laws of the Guarantor
or the Trust Agreement or other organizational documents of the Trust or any subsidiary, or
any applicable law, statute, rule, regulation, judgment, order, writ or decree of any
government, government instrumentality or court, domestic or foreign, having jurisdiction
over the Guarantor, the Trust or any subsidiary of the Guarantor or any of their properties,
assets or operations; 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 Securities Act, which have been obtained,
or as may be required under the securities or Blue Sky laws of the various states) is
necessary or required in connection with the execution, delivery and performance by the
Guarantor of the Guarantor Transaction Agreements or the Remarketing Agreement or issuance
of the Preferred Stock in accordance with the Stock Purchase Contract Agreement, 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
in connection with the purchase and distribution of the Normal APEX by the Underwriter.
(k) Neither the Guarantor nor any of its Significant Subsidiaries is in violation of
its charter, by-laws or other organizational documents, as applicable, or in default in the
performance or observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement,
note, lease or other agreement or instrument to which it is a party or by which it or any of
its properties or assets may be bound or to which any of the property or assets of the
Guarantor or any subsidiary of the Guarantor is subject.
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(l) The statements set forth in the Pricing Prospectus and the Prospectus under the
captions “Description of the APEX,” “Description of the Stock Purchase Contracts,” “Certain
Other Provisions of the Stock Purchase Contract Agreement and the Collateral Agreement,”
“Description of the Junior Subordinated Notes,” “Description of the Guarantee,”
“Relationship among the APEX, Junior Subordinated Notes, Stock Purchase Contracts and
Guarantee” and “Description of the Preferred Stock,” insofar as they are 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, constitute an accurate summary of the
matters set forth therein; the statements set forth in the Pricing Prospectus and the
Prospectus under the caption “Certain U.S. Federal Income Tax Consequences” 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, constitute an accurate summary of the
matters set forth therein.
(m) There is no action, suit, proceeding, inquiry or investigation before or brought by
any court or governmental agency or body, domestic or foreign, now pending, or, to the
knowledge of the Guarantor, the Trust or any subsidiary of the Guarantor, threatened,
against or affecting the Guarantor, the Trust or any subsidiary of the Guarantor, that is
required to be disclosed in the Registration Statement (other than as disclosed therein), or
that would, individually or in the aggregate, have a material adverse effect on the current
or future consolidated financial position, stockholders’ equity or results of operations of
the Trust or the Guarantor and its subsidiaries (a “Material Adverse Effect”), or that would
materially and adversely affect the properties or assets thereof, the performance by the
Trust and the Guarantor of their obligations under the Trust Transaction Agreements and
Guarantor Transaction Agreements, respectively (the Trust Transaction Agreements and the
Guarantor Transaction Agreements are referred to collectively as the “Transaction
Agreements”), and the consummation of the transactions contemplated thereby; the aggregate
of all pending legal or governmental proceedings to which the Guarantor, the Trust or any
subsidiary of the Guarantor is a party or of which any of their respective property or
assets is the subject that are not described in the Registration Statement, including
ordinary routine litigation incidental to the business, would have a Material Adverse
Effect.
(n) The Guarantor is not and, after giving effect to the offering and sale of the
Normal APEX and the application of the proceeds thereof, will not be an “investment
company,” as such term is defined in the Investment Company Act.
(o) (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
Guarantor 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 Normal APEX in reliance on the
exemption of Rule 163 under the Act, the Guarantor was a “well-known seasoned issuer” as
defined in Rule 405 under the Act (“Rule 405”); and
APEX Underwriting Agreement
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(B) at the earliest time after the filing of the Registration Statement that the Guarantor
or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2)
under the Act) of the Normal APEX, the Guarantor was not an “ineligible issuer” as defined
in Rule 405 under the Act.
(p) The Guarantor, the Trust and the subsidiaries of the Guarantor possess such
permits, licenses, approvals, consents and other authorizations (collectively, “Governmental
Licenses”) issued by the appropriate federal, state, local or foreign regulatory agencies or
bodies necessary to conduct the business now operated by them, except where the failure so
to possess would not, individually or in the aggregate, have a Material Adverse Effect; the
Guarantor, the Trust and the subsidiaries of the Guarantor are in compliance with the terms
and conditions of all such Governmental Licenses, except where the failure so to comply
would not, individually or in the aggregate, have a Material Adverse Effect; all of the
Governmental Licenses are valid and in full force and effect, except when the invalidity of
such Governmental Licenses or the failure of such Governmental Licenses to be in full force
and effect would not, individually or in the aggregate, have a Material Adverse Effect; and
neither the Trust, the Guarantor nor any of the subsidiaries of the Guarantor has received
any notice of proceedings relating to the revocation or modification of any such
Governmental Licenses which, individually or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would have a Material Adverse Effect.
(q) Ernst & Young LLP, the accounting firm that certified the audited financial
statements and supporting schedules included in the Registration Statement is an independent
registered public accountant firm as required by the Act and the rules and regulations of
the Commission thereunder.
(r) The Guarantor 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 Guarantor’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 Guarantor’s internal control over financial reporting is effective and the
Guarantor is not aware of any material weaknesses in its internal control over financial
reporting. Except as disclosed in the Pricing Prospectus, 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 Guarantor’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the
Guarantor’s internal control over financial reporting, except such changes as, individually
or in the aggregate, would not reasonably be expect to have a Material Adverse Effect.
(s) The Guarantor 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 Guarantor and its subsidiaries is made
APEX Underwriting Agreement
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known to the Guarantor’s principal executive officer and principal financial officer by
others within those entities; and such disclosure controls and procedures are effective.
(t) The operations of the Guarantor 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 Guarantor or any of
its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge
of the Guarantor, threatened that would, individually or in the aggregate, have a Material
Adverse Effect.
(u) None of the Trust, the Guarantor, any of its subsidiaries or, to the knowledge of
the Guarantor, any director, officer, agent, employee of the Guarantor (in their capacities
as such) or affiliate of the Guarantor 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 Guarantor will not directly or indirectly use
the proceeds of the offering of the Normal APEX and Related Securities 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.
2. Purchase and Sale. Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, (a) the Guarantor and the Trust agree that the
Trust will sell to the Underwriter, and the Underwriter agrees, to purchase from the Trust, at the
purchase price set forth in Schedule I, the number of Firm Normal APEX set forth in Schedule I and
(b) in the event and to the extent that the Underwriter shall exercise the election to purchase
Optional Normal APEX as provided below, the Company agrees to issue and sell to the Underwriter,
and the Underwriter agrees to purchase from the Company, at the same purchase price set forth in
clause (a) of this Section 2, the number of Optional Normal APEX as to which such election shall
have been exercised.
The Guarantor and the Trust hereby grant to the Underwriter the right to purchase at its
election up to 60,000 Optional Normal APEX, at the same purchase price set forth in clause (a) of
the first paragraph of this Section 2. Any such election to purchase Optional Normal APEX may be
exercised only by written notice from you to the Company setting forth the number of Optional
Normal APEX to be purchased and the date on which such Optional Normal APEX are to be delivered, as
determined by you but in no event (i) earlier than the First Time of Delivery (as defined in
Section 4), (ii) later than 13 calendar days after the First Time of Delivery or (iii) unless you
and the Guarantor otherwise agree in writing, earlier than two or later than ten business days
after the date of such notice.
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As compensation to the Underwriter for its commitment hereunder, and in view of the fact that
the proceeds from the sale of the Normal APEX will be used by the Trust to purchase the Junior
Subordinated Notes, the Guarantor on each Time of Delivery will pay by wire transfer of immediately
available funds to the Underwriter the amount per Normal APEX set forth in Schedule I in respect of
the Normal APEX to be delivered by the Trust hereunder on such Time of Delivery.
3. Delivery and Payment. Delivery of and payment for the Normal APEX shall be made at
the office, on the date and at the time specified (i) with respect to the Firm Normal APEX, in
Schedule I or at such other date and time as the Underwriter, the Trust and the Guarantor may agree
in writing (such time and date of delivery of and payment for the Firm Normal APEX being herein
called the “First Time of Delivery”) and (ii) with respect to the Optional Normal APEX, if any, by
the Underwriter in its written notice of election to purchase such Optional Normal APEX, or at such
other date and time as the Underwriter, the Trust and the Guarantor may agree in writing (such time
and date and time of delivery of and payment for the Optional Normal APEX being herein called the
“Second Time of Delivery”; each such time and date for delivery is herein called a “Time of
Delivery”). The Normal APEX to be purchased by the Underwriter hereunder will be represented by
one or more global certificates representing Normal APEX that will be deposited by or on behalf of
the Trust with The Depository Trust Company (“DTC”) or its designated custodian. Delivery of the
Normal APEX shall be made by causing DTC to credit the Normal APEX to the account of the
Underwriter at DTC against payment by it of the purchase price thereof to or upon the order of the
Trust in the manner and type of funds specified in Schedule I.
The Trust and the Guarantor agree to have the certificates representing the Normal APEX
available for checking in New York, New York at the Closing Location specified in Schedule I, on
the business day prior to each Time of Delivery.
4. Offering by Underwriter. It is understood that the Underwriter propose to offer
the Firm Normal APEX for sale as set forth in the Pricing Disclosure Package and the Prospectus.
5. Agreements. (A) General. The Trust and the Guarantor jointly and
severally agree with the Underwriter as follows (except that the agreements in paragraphs (e), (i)
and (j) of this Section 5(A) are made only by the Guarantor and not by the Trust):
(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 any 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 Normal APEX
and Related Securities, in a form set forth in Schedule II and to file such term sheet
pursuant to Rule 433(d) under the Act within the time required
APEX Underwriting Agreement
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by such Rule; to file promptly all other material required to be filed by the Trust or
the Guarantor 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
Guarantor and (to the extent not exempt under Rule 12h-5 under the Exchange Act) the Trust
with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act 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 and sale of the
Normal APEX; to advise you, promptly after either the Trust or the Guarantor 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 Normal APEX, 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 Normal APEX or any of the
Related 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 Normal APEX or suspending any such qualification, to promptly use their best
efforts to obtain the withdrawal of such order; and in the event of any such issuance of a
notice of objection, promptly to take such steps including, without limitation, amending the
Registration Statement or filing a new registration statement, at the Guarantor’s own
expense, as may be necessary to permit offers and sales of the Normal APEX by the
Underwriter (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 the Underwriter may reasonably
request to qualify the Normal APEX and the Related Securities for offering and sale under
the securities laws of such jurisdictions as the Underwriter 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 Normal
APEX and the Related Securities; provided that in connection therewith the Guarantor shall
not be required to qualify as a foreign corporation where it is not now so qualified or to
file a general consent to service of process in any jurisdiction where it is not now so
subject.
(d) Prior to noon, New York City time, on the New York business day next succeeding the
date of this Agreement and from time to time, to furnish you with written and electronic
copies of the Prospectus in New York City in such quantities as you may
APEX Underwriting Agreement
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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 Normal APEX or Related 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 Normal APEX or Related 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.
(e) To make generally available to its securityholders and to the Underwriter 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 Guarantor and its subsidiaries, complying with Section
11(a) of the Act and the rules and regulations thereunder (including, at the option of the
Guarantor, Rule 158).
(f) During the period beginning from the date hereof, and continuing to and including
the date 30 days after the date hereof or such earlier time as you may notify the Guarantor,
not to offer, sell, contract to sell, pledge, grant any option to purchase, make any short
sale or otherwise dispose of, except as provided hereunder, any Normal APEX, any other
beneficial interests in the assets of the Trust (other than the Trust Common Securities),
any similar security issued by another trust or other limited purpose vehicle, or any
preferred stock of the Guarantor, as the case may be, that are substantially similar to the
Normal APEX or any of the Related Securities or any securities that are convertible into or
exchangeable for or that represent the right to receive preferred securities or any such
substantially similar securities of either the Trust, a similar trust or the Guarantor,
without your prior written consent.
(g) To pay the required Commission filing fees relating to the Normal APEX and Related
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.
APEX Underwriting Agreement
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(h) To use their best efforts to list, subject to notice of issuance, the Normal APEX
on the New York Stock Exchange.
(i) To issue the Guarantee concurrently with each issue and sale of the Normal APEX as
contemplated herein.
(j) To pay all expenses incident to the performance of each of its and the Trust’s
obligations under this Agreement, and will pay or cause to be paid the following: (i) the
fees, disbursements and expenses of its counsel and accountants in connection with the
registration of the Normal APEX and Related 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 Underwriter and dealers; (ii) the cost of printing or
producing this Agreement, closing documents (including any compilations thereof) and any
other documents in connection with the offering, purchase, sale and delivery of the Normal
APEX and Related Securities; (iii) all expenses in connection with the qualification of the
Normal APEX and Related Securities for offering and sale under state securities laws,
including the and disbursements of counsel for the Underwriter in connection with such
qualification and in connection with the Blue Sky survey; (iv) the fees charged by
securities rating services for rating the Normal APEX; (v) filing fees incident to, and the
fees and disbursements of counsel for the Underwriter in connection with, any required
review by The Financial Industry Regulatory Authority, Inc. (“FINRA”) of the terms of the
sale of the Normal APEX and Related Securities (provided, however, that the aggregate fees
and disbursements of counsel in connection with this subsection (v) and subsection (iii)
above shall not exceed $30,000 without the prior written consent of the Guarantor, which
consent will not be unreasonably withheld); (vi) all fees and expenses in connection with
the listing of the Normal APEX; (vii) the cost of preparing the Normal APEX and Related
Securities; (viii) the costs and charges of any trustee, transfer agent or registrar or
paying agent; and (vix) all other costs and expenses incident to the performance of its
obligations hereunder that are not otherwise specifically provided for in this paragraph.
It is understood, however, that, except as provided in this paragraph, and Sections 7 and 9,
the Underwriter will pay all of their own costs and expenses, including the fees of their
counsel, transfer taxes on resale of any of the Normal APEX by them, the cost of preparing
and distributing any term sheet prepared by any Underwriter, and any advertising expenses
connected with any offers they may make.
(B) Free Writing Prospectuses.
(a) (i) Each of the Guarantor and the Trust represents and agrees that, other than the
final term sheet prepared and filed pursuant to Section 5(A)(a), without the prior consent
of the Underwriter, it has not made and will not make any offer relating to the Normal APEX
or the Related Securities that would constitute a “free writing prospectus” as defined in
Rule 405 under the Act;
APEX Underwriting Agreement
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(ii) The Underwriter represents and agrees that, without the prior consent of the
Guarantor and the Underwriter, other than one or more term sheets relating to the Normal
APEX and the Related Securities containing customary information and conveyed to purchasers
of Normal APEX, it has not made and will not make any offer relating to the Normal APEX that
would constitute a free writing prospectus; and
(iii) Any such free writing prospectus the use of which requires consent under clauses
(i) and (ii) above and has been consented to by the Guarantor and the Underwriter (including
the final term sheet prepared and filed pursuant to Section 5(A)(a)) is listed on Schedule
I(a).
(b) Each of the Guarantor and the Trust 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.
(c) The Guarantor 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 Guarantor will give prompt
notice thereof to the Underwriter and, if requested by the Underwriter, will prepare and
furnish without charge to the Underwriter an Issuer Free Writing Prospectus or other
document that will correct such conflict, statement or omission; provided, however, that
this representation and warranty 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 Guarantor by the Underwriter expressly for use therein.
6. Conditions to the Obligations of the Underwriter. The obligations of the
Underwriter, as to Normal APEX to be purchased at each Time of Delivery, shall be subject to the
accuracy of the representations and warranties on the part of each of the Guarantor and the Trust
contained herein as of the date hereof and at and as of such Time of Delivery, to the accuracy of
the statements of the Guarantor and the Trust made in any certificates pursuant to the provisions
hereof, to the performance by each of the Guarantor and the Trust 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 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
Guarantor or the Trust 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
APEX Underwriting Agreement
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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) Xxxxx Day, counsel for the Guarantor, shall have furnished to the Underwriter an
opinion, dated such Time of Delivery, with respect to such matters as the Underwriter may
reasonably require.
(c) The Guarantor shall have furnished to the Underwriter an opinion, dated such Time
of Delivery, of National City Corporation Law Department, counsel for the Guarantor, with
respect to such matters as the Underwriter may reasonably require.
(d) Xxxxxxxx, Xxxxxx & Finger, P.A., special Delaware counsel to the Guarantor and the
Trust, shall have furnished to the Underwriter an opinion, dated such Time of Delivery, to
the effect set forth in Annex I.
(e) The Underwriter shall have received from Xxxxxxxx & Xxxxxxxx LLP, counsel for the
Underwriter, such opinion or opinions, dated such Time of Delivery, with respect to such
matters as the Underwriter may reasonably require. Xxxxxxxx & Xxxxxxxx LLP may rely as to
those matters that relate to the Indenture Trustee, the Guarantee Trustee, the Property
Trustee or the Collateral Agent, upon the certificate or certificates of such entities.
(f) On the date of the Prospectus at a time prior to the execution of this Agreement,
at 9:30 A.M., New York City 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 such
Time of Delivery, (1) Ernst & Young LLP shall have furnished to you a letter or letters,
dated the respective dates of delivery thereof, in form and substance satisfactory to you,
containing statements and information of the type ordinarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements, certain
financial information contained in the Registration Statement and the Prospectus and such
other information specified therein and (2) the Company shall have furnished or caused to be
furnished to you a certificate or certificates of the Chief Financial Officer of the
Company, dated the respective dates of delivery thereof, in form and substance satisfactory
to you, containing statements and information with respect to the financial statements,
certain financial information contained in the Registration Statement and the Prospectus and
such other information specified therein, based on an examination of the Company’s financial
records and schedules undertaken by the Chief Financial Officer or members of his staff who
are responsible for the Company’s financial and accounting matters.
(g) Neither the Guarantor nor any of its Significant 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,
APEX Underwriting Agreement
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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, other 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 Guarantor or any of its subsidiaries or any change,
or any development that is reasonably likely to involve a prospective material adverse
change, in or affecting the general affairs, management, financial position, stockholders’
equity or results of operations of the Guarantor and its subsidiaries, other 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 the judgment of the Underwriter so material and
adverse as to make it impracticable or inadvisable to proceed with the public offering or
the delivery of the Normal APEX on the terms and in the manner contemplated in the
Prospectus.
(h) The Guarantor 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, the Normal APEX shall have been accorded a rating
of not less than “BBB+” by Standard & Poor’s Ratings Service and not less than “Baa1” by
Xxxxx’x Investors Service, Inc.
(j) On or after the Applicable Time (i) no downgrading shall have occurred in the
rating accorded the Guarantor’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
Guarantor’s debt securities or preferred stock.
(k) 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; (ii) a suspension or material limitation in trading in the Guarantor’s
securities on the New York Stock Exchange; (iii) a general moratorium on commercial banking
activities declared by either Federal or New York 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 the
judgment of Xxxxxxx, Sachs & Co. makes it impracticable or inadvisable to proceed with the
public offering or the delivery of the Normal APEX being delivered at such Time of Delivery
on the terms and in the manner contemplated in the Prospectus.
(l) The Normal APEX being delivered at each Time of Delivery shall have been duly
listed, subject to notice of issuance, on the New York Stock Exchange, or application
thereto for such listing shall have been made.
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(m) The Guarantor and the Trust shall have furnished or caused to be furnished to you
at such Time of Delivery certificates of officers of the Guarantor and trustees of the Trust
satisfactory to you as to the accuracy of the representations and warranties of the
Guarantor and the Trust herein at and as of such time, as to the performance by the
Guarantor and the Trust of all of their respective 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.
7. Indemnification and Contribution.
(a) The Guarantor and the Trust will, jointly and severally, indemnify and hold
harmless the Underwriter against any losses, claims, damages or liabilities, joint or
several, to which the Underwriter 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 Underwriter for any legal or
other expenses reasonably incurred by the Underwriter in connection with investigating or
defending any such action or claim as such expenses are incurred; provided, however, that
neither the Guarantor nor the Trust shall 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 Guarantor or the Trust by
the Underwriter expressly for use therein.
(b) The Underwriter will indemnify and hold harmless each of the Guarantor and the
Trust against any losses, claims, damages or liabilities to which the Guarantor or the Trust
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
Guarantor or the Trust by the Underwriter expressly for use
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therein; and will reimburse the Guarantor or the Trust for any legal or other expenses
reasonably incurred by the Guarantor or the Trust, as appropriate, 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 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 7 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 Guarantor and the Trust on the one hand and the Underwriter on the
other from the offering of the Normal APEX. 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 Guarantor or the Trust on the one hand and the Underwriter 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 Guarantor or the Trust on
the one hand and the Underwriter on the other shall be deemed to be in the same
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proportion as the total net proceeds from the offering (before deducting expenses)
received by the Guarantor or the Trust bear to the total underwriting discounts and
commissions received by the Underwriter, 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 Guarantor
or the Trust on the one hand or the Underwriter on the other and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Guarantor and the Trust on the one hand and the Underwriter on
the other agree that it would not be just and equitable if contribution pursuant to this
subsection (d) were determined by pro rata allocation (even if the Underwriter were treated
as one entity for such purpose) 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 Underwriter shall not be required
to contribute any amount in excess of the amount by which the total price at which the
Normal APEX underwritten by it and distributed to the public were offered to the public
exceeds the amount of any damages that the Underwriter has 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. The Underwriter’s obligations in this subsection (d) to contribute are
several in proportion to their respective underwriting obligations and not joint.
(e) The obligations of the Guarantor under this Section 7 shall be in addition to any
liability that the Guarantor or the Trust may otherwise have and shall extend, upon the same
terms and conditions, to each person, if any, who controls any Underwriter within the
meaning of the Act; and the obligations of the Underwriter under this Section 7 shall be in
addition to any liability which the respective Underwriter may otherwise have and shall
extend, upon the same terms and conditions, to each officer and director of the Guarantor
and the Trust and to each person, if any, who controls the Guarantor within the meaning of
the Act.
8. [Intentionally Omitted].
9. Expenses on Termination. If for any reason the Normal APEX are not delivered by or
on behalf of the Guarantor as provided herein, the Guarantor will reimburse the Underwriter for all
reasonable out-of-pocket expenses, including reasonable fees and disbursements of counsel,
reasonably incurred by the Underwriter in making preparations for the purchase, sale and delivery
of the Normal APEX but the Guarantor shall then be under no further liability to the Underwriter
except as provided in Section 5(A)(j) and Section 7.
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10. 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.
11. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Guarantor or its officers, of
the Trust and of the Underwriter 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, the
Guarantor or the Trust or any of the controlling persons referred to in Section 7(e), and will
survive delivery of and payment for the Normal APEX. The provisions of Sections 5(A)(j) and 7
shall survive the termination or cancellation of this Agreement.
12. Arm’s-Length Terms. The Trust and the Guarantor acknowledge and agree that (i)
the purchase and sale of the Normal APEX pursuant to this Agreement is an arm’s-length commercial
transaction between the Trust and the Guarantor, on the one hand, and the Underwriter, on the
other, (ii) in connection therewith and with the process leading to such transaction the
Underwriter is acting solely as a principal and not the agent, fiduciary or advisor of the Trust or
the Guarantor (and each of the Trust and the Guarantor agrees that it will not claim that the
Underwriter owes a fiduciary or similar duty to the Guarantor or the Trust in connection
therewith), and (iii) the Trust and the Guarantor have consulted their own legal and financial
advisors to the extent they deemed appropriate.
13. No Other Agreements. This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Guarantor and the Underwriter with respect to
the subject matter hereof.
14. 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 7, and no other person will
have any right or obligation hereunder.
15. Applicable Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York.
16. Waiver of Jury Trial. The Guarantor and the Underwriter 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.
17. 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 Underwriter 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 I; and if
to the Guarantor or the Trust shall be sufficient in all respects if delivered or sent by
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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 Underwriter is required to obtain, verify and record
information that identifies its clients, including the Guarantor and the Trust.
18. Disclosure of Tax Treatment. Notwithstanding anything herein to the contrary, the
Guarantor and the Trust are 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 Guarantor and the Trust relating to
that treatment and structure, without the Underwriter 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 among the Trust, the Guarantor and the Underwriter.
Very truly yours, NATIONAL CITY PREFERRED CAPITAL TRUST I |
||||
By: | NATIONAL CITY CORPORATION, as Sponsor | |||
By: | /s/ Xxxxxx X. Xxxxxxxxxx | |||
Name: | Xxxxxx X. Xxxxxxxxxx | |||
Title: | Senior Vice President and Treasurer | |||
NATIONAL CITY CORPORATION |
||||
By: | /s/ Xxxxxx X. Xxxxxxxxxx | |||
Name: | Xxxxxx X. Xxxxxxxxxx | |||
Title: | Senior Vice President and Treasurer | |||
Accepted as of the date hereof:
/s/ Xxxxxxx, Sachs & Co. | ||||
(Xxxxxxx, Xxxxx & Co.) |
APEX Underwriting Agreement