MGIC INVESTMENT CORPORATION Underwriting Agreement
Execution Copy
$200,000,000
MGIC INVESTMENT CORPORATION
5.625% Senior Notes due 2011
September 13, 2006
To the Representatives named
in Schedule I hereto of the
Underwriters named in
Schedule II hereto
in Schedule I hereto of the
Underwriters named in
Schedule II hereto
Dear Sirs:
MGIC INVESTMENT CORPORATION, a Wisconsin corporation (the “Company”), proposes to issue and
sell to the underwriters named in Schedule II hereto (the “Underwriters”), for whom you are acting
as representatives (the “Representatives”), the principal amount of its debt securities identified
in Schedule I hereto (the “Securities”), to be issued under an Indenture, dated as of October 15,
2000 (the “Indenture”), between the Company and Bank One Trust Company, National Association, as
trustee thereunder (the “Trustee”). If the firm or firms listed in Schedule II hereto include only
the firm or firms listed in Schedule I hereto, then the terms “Underwriters” and “Representatives”,
as used herein, shall each be deemed to refer to such firm or firms.
The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-3 (No. 333-126631) under the Securities Act of 1933, as amended,
and the rules and regulations of the Commission thereunder (collectively, the “Securities Act”),
relating to certain debt securities (the “Shelf Securities”) and the offering thereof from time to
time in accordance with Rule 415 of Regulation C under the Securities Act by the Company. Such
registration statement and each post-effective amendment thereto, if applicable, has been declared
effective by the Commission. Promptly after execution and delivery of this Agreement, the Company
will prepare and file a prospectus in accordance with the provisions of Rule 430B (“Rule 430B”)
under the Securities Act and paragraph (b) of Rule 424 (“Rule 424(b)”) under the Securities Act.
Any information included in such prospectus that was omitted from such registration statement at
the time it became effective but that is deemed to be part of and included in such registration
statement pursuant to Rule 430B is referred to as “Rule 430B Information.” Each prospectus used in
connection with the offering of the Securities that omitted Rule 430B Information is herein called
a “preliminary prospectus.” Such registration statement, at any given time, including the
amendments thereto to such time and the
exhibits and any schedules thereto at such time, and the documents otherwise deemed to be a part
thereof or included therein pursuant to the rules of the Commission under the Securities Act, is
herein called the “Registration Statement.” The final prospectus in the form first furnished to
the Underwriters for use in connection with the offering of the Securities is herein called the
“Prospectus.”
Any reference in this Agreement to the Registration Statement, 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 Securities Act, which were filed under the
Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder (collectively, the “Exchange Act”), on or before the date of this Agreement or the date
of the preliminary prospectus or the Prospectus, as the case may be; and any reference to “amend”,
“amendment” or “supplement” with respect to the Registration Statement, the preliminary prospectus
or the Prospectus shall be deemed to refer to and include any documents filed under the Exchange
Act after the date of this Agreement or the date of the preliminary prospectus or the Prospectus,
as the case may be, which are deemed to be incorporated by reference therein.
The Company hereby agrees with the Underwriters as follows:
1. The Company agrees to issue and sell the Securities to the several Underwriters as
hereinafter provided, and each Underwriter, on the basis of the representations, warranties and
agreements of the Company herein contained, but subject to the conditions hereinafter stated,
agrees to purchase, severally and not jointly, from the Company the respective principal amount of
Securities set forth opposite such Underwriter’s name in Schedule II hereto at the purchase price
set forth in Schedule I hereto plus accrued interest, if any, from the date specified in Schedule I
hereto to the date of payment and delivery.
2. The Company understands that the several Underwriters intend (i) to make a public offering
of their respective portions of the Securities in conformity with the Securities Act, any
applicable blue sky laws and all other rules and regulations applicable to them in connection
therewith and (ii) initially to offer the Securities upon the terms set forth in the Prospectus.
3. Payment for the Securities shall be made to the Company or to its order by wire transfer of
same-day funds to an account designated by the Company or, if specifically requested by the
Company, by certified or official bank check or checks payable to the Company in federal or other
same-day funds on the date and at the time and place set forth in Schedule I hereto (or at such
other time and place on the same or such other date, not later than the tenth Business Day (as
hereinafter defined) thereafter, as you and the Company may agree in writing). Such payment will
be made upon delivery to, or to you for the respective accounts of, such Underwriters of the
Securities through the facilities of The Depository Trust Company or, if specifically requested by
the Representatives, in certificated form registered in such names and in such denominations as you
shall request not less than one full Business Day prior to the date of delivery, or with any
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transfer taxes payable in connection with transfer to the Underwriters duly paid by the
Company. As used herein, the term “Business Day” means any day other than a day on which banks are
authorized or required to be closed in the City of New York or Milwaukee, Wisconsin. The time and
date of such payment and delivery with respect to the Securities are collectively hereinafter
referred to as the “Closing Date.” The certificates for the Securities will be made available for
inspection and packaging by you by 1:00 P.M. on the Business Day prior to the Closing Date at such
place in the City of New York as you and the Company shall agree.
4. The Company represents and warrants to each Underwriter as of the date hereof, the
Applicable Time (as defined below) and as of the Closing Date (each, a “Representation Date”) that:
(a) The Company meets the requirements for use of Form S-3 under the Securities Act. The
Registration Statement has been declared effective by the Commission under the Securities Act; no
stop order suspending the effectiveness of the Registration Statement has been issued and no
proceeding for that purpose has been instituted or, to the knowledge of the Company, threatened by
the Commission; at the respective times the Registration Statement and each amendment thereto
became effective, at each deemed effective date with respect to the Underwriters pursuant to Rule
430B(f)(2) under the Securities Act and at the Closing Date, the Registration Statement and any
amendment thereto complied, or will comply, as the case may be, in all material respects with the
Securities Act and the Trust Indenture Act of 1939, as amended, and the rules and regulations of
the Commission thereunder (collectively, the “Trust Indenture Act”); at the respective times the
Registration Statement and each amendment thereto became effective, at each deemed effective date
with respect to the Underwriters pursuant to Rule 430B(f)(2) under the Securities Act and at the
Closing Date, the Registration Statement and any amendment thereto did not 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; each preliminary prospectus (including
the prospectus or prospectuses filed as part of the Registration Statement or any amendment
thereto) and the Prospectus complied or will comply with the Securities Act and the rules and
regulations of the Commission thereunder; neither the Prospectus nor any amendments or supplements
thereto, at the time the Prospectus or any such amendment or supplement was issued and at the
Closing Date, did not and will not include an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
As of the Applicable Time, neither (x) the Issuer Free Writing Prospectus(es) (as defined
below) issued at or prior to the Applicable Time (as defined below), the Statutory Prospectus (as
defined below) and the Final Term Sheet (as defined below), all considered together (collectively,
the “Disclosure Package”), nor (y) any individual Issuer Free Writing Prospectus, when considered
together with the Disclosure Package, included any untrue statement of a material fact or omitted
to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. As of the
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time of the filing of the Final Term Sheet, the Disclosure Package will not include any untrue statement of a
material fact or omitted to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
As used in this subsection (a) and elsewhere in this Agreement:
“Applicable Time” means 1:00 p.m. (Eastern time) on September 13, 2006 or such other time as
agreed by the Company and the Representatives.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in
Rule 433 of the Regulations (“Rule 433”), relating to the Securities, including the Final Term
Sheet, that (i) is required to be filed with the Commission by the Company, (ii) is a “road show
that is a written communication” within the meaning of Rule 433(d)(8)(i), whether or not required
to be filed with the Commission or (iii) is exempt from filing pursuant to Rule 433(d)(5)(i)
because it contains a description of the Securities or of the offering that does not reflect the
final terms, in each case in the form filed or required to be filed with the Commission or, if not
required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g).
“Statutory Prospectus” as of any time means the prospectus relating to the Securities that is
included in the Registration Statement immediately prior to that time, including any document
incorporated by reference therein and any preliminary or other prospectus deemed to be a part
thereof.
Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through
the completion of the public offer and sale of the Securities or until any earlier date that the
issuer notified or notifies the Representatives as described in Section 4(b), did not, does not and
will not include any information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement or the Prospectus, including any document incorporated by
reference therein and any preliminary or other prospectus deemed to be a part thereof that has not
been superseded or modified.
The representations and warranties in this subsection (a) shall not apply to (i) that part of
the Registration Statement which constitutes the Statement of Eligibility (Form T-1) under the
Trust Indenture Act of the Trustee, and (ii) statements or omissions in the Registration Statement
or the Prospectus made in reliance upon and in conformity with information relating to any
Underwriter furnished to the Company in writing by such Underwriter through the Representatives
expressly for inclusion therein.
(b) The documents incorporated by reference in the Prospectus, when they were filed with the
Commission, complied in all material respects with the requirements of the Exchange Act, and none
of such documents, when they were so filed, included an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading; and any further documents so filed
and incorporated by reference in the Prospectus, when such documents are filed with the Commission,
will comply in all material respects with the
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requirements of the Exchange Act, as applicable, and will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
(c) This Agreement has been duly authorized, executed and delivered by the Company and
constitutes a valid and binding agreement of the Company, except as rights to indemnity and
contribution hereunder may be limited by applicable law.
(d) The Indenture has been duly qualified under the Trust Indenture Act and has been duly
authorized, executed and delivered by the Company and constitutes a valid and binding agreement of
the Company, enforceable in accordance with its terms (except as the enforceability thereof may be
limited by bankruptcy, insolvency and other laws affecting the enforceability of creditors’ rights
generally and general principles of equity and an implied covenant of good faith and fair dealing),
the Securities have been duly authorized by the Company and, when executed and authenticated in
accordance with the terms of the Indenture and delivered to and paid for by the Underwriters in
accordance with the terms of this Agreement, will have been duly executed and delivered by the
Company and will constitute valid and binding obligations of the Company, enforceable in accordance
with their terms and the terms of the Indenture (except as the enforceability thereof may be
limited by bankruptcy, insolvency and other laws affecting the enforceability of creditors’ rights
generally and general principles of equity and an implied covenant of good faith and fair dealing),
and holders of the Securities will be entitled to the benefits provided by the Indenture; and the
Securities and the Indenture conform in all material respects to the descriptions thereof in the
Disclosure Package and the Prospectus.
(e) The Company has been duly incorporated and is validly existing as a corporation under the
laws of the State of Wisconsin, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Disclosure Package and the Prospectus, and
has been duly qualified as a foreign corporation for the transaction of business and is in good
standing (or the local equivalent) 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 to be in good standing would not result in a material adverse effect on
the business, financial position or results of operations of the Company and its subsidiaries taken
as a whole, whether or not arising in the ordinary course of business (a “Material Adverse
Effect”).
(f) Each of the Company’s subsidiaries that constitutes a “significant subsidiary” (as such
term is defined in Rule 1-02 of Regulation S-X) as of the last day of the Company’s most recent
fiscal quarter (each a “Subsidiary” and collectively, the “Subsidiaries”) has been duly organized
and is validly existing as a corporation or limited liability company in good standing under the
laws of the jurisdiction of its incorporation or organization, with power and authority (corporate
and other) to own its properties and conduct its business as described in the Disclosure Package
and the Prospectus, and has been duly qualified as a foreign
corporation
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or limited liability company for the transaction of business and is in good standing (or the local equivalent) 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 to be in good standing would not result in a Material Adverse Effect.
(g) The authorized, issued and outstanding shares of capital stock of the Company is as set
forth in the column entitled “Actual” under the “Capitalization” section of the Disclosure Package
and the Prospectus, and such shares of capital stock have been duly authorized and validly issued
by the Company and are fully paid and non-assessable, and none of such shares of capital stock was
issued in violation of pre-emptive or other similar rights of any security holder of the Company;
all of the outstanding shares of capital stock or limited liability company interests of each
Subsidiary have been duly authorized and validly issued and are fully paid and non-assessable, and,
except as otherwise set forth in the Disclosure Package and the Prospectus, all outstanding shares
of capital stock of the Subsidiaries are owned by the Company either directly or through wholly
owned subsidiaries free and clear of any perfected security interest or any other security
interests, claims, liens or encumbrances.
(h) The financial statements and schedules of the Company and its consolidated subsidiaries
included or incorporated by reference in the Disclosure Package, the Prospectus and the
Registration Statement present fairly in all material respects the consolidated financial
condition, results of operations and cash flows of the Company and its consolidated subsidiaries as
of the dates and for the periods indicated, comply as to form with the applicable accounting
requirements of the Securities Act or the Exchange Act, as applicable, and have been prepared in
conformance with United States generally accepted accounting principles applied on a consistent
basis throughout the periods involved (except as otherwise noted therein).
(i) PricewaterhouseCoopers LLP, who have certified the financial statements included or
incorporated by reference in the Disclosure Package, the Prospectus and the Registration Statement,
are independent public accountants as required by the Securities Act.
(j) Since the respective dates as of which information is given in the Registration Statement,
Disclosure Package and the Prospectus, except as otherwise stated therein, (A) there has been no
material adverse change, or any development involving a prospective material adverse change, in or
affecting the business, financial position or results of operations of the Company and its
subsidiaries taken as a whole, whether or not arising in the ordinary course of business (a
“Material Adverse Change”) and (B) there have been no transactions entered into by the Company or
any of its subsidiaries, other than those arising in the ordinary course of business, which are
material with respect to the Company and its subsidiaries considered as one enterprise.
(k) The execution, delivery and performance of this Agreement, the Indenture and any other
agreement or instrument entered into or issued or to be entered into or issued by the Company in
connection with the transactions contemplated hereby or thereby or in
the
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Registration Statement, the Disclosure Package and the Prospectus and the consummation of the transactions contemplated
herein and in the Registration Statement, the Disclosure Package and the Prospectus and compliance by the Company with its obligations hereunder and thereunder do
not and will not conflict with or result in a breach of, or constitute a default under, or result
in the creation or imposition of any lien, charge or encumbrance upon any assets, properties or
operations of the Company or any of its subsidiaries pursuant to, any contract, indenture,
mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which it or any of them may be bound
or to which any of the assets, properties or operations of the Company or any of its subsidiaries
is subject (collectively, the “Agreements and Instruments”) the result of which would have a
Material Adverse Effect, nor will such action result in any violation of the provisions of the
charter or bylaws of the Company or any of its Subsidiaries or any applicable law or statute or any
order, rule, regulation or judgment of any court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their assets, properties or
operations, except for any such violations that would not, individually or in the aggregate, result
in a Material Adverse Effect.
(l) There is no action, suit, proceeding, inquiry or investigation before or brought by any
court or governmental agency or body now pending, or to the knowledge of the Company threatened,
against or affecting the Company or any of its subsidiaries which is required to be disclosed in
the Registration Statement, the Disclosure Package and the Prospectus (other than as stated
therein, including documents incorporated by reference), or which might reasonably be expected to
result in a Material Adverse Effect (other than as stated therein, including the documents
incorporated by reference), or have a material adverse effect on the consummation of the
transactions contemplated under the Disclosure Package and the Prospectus, this Agreement or the
Indenture or the performance by the Company of its obligations hereunder and thereunder; and the
aggregate of all pending legal or governmental proceedings to which the Company or any of its
subsidiaries is a party or of which any of their respective assets, properties or operations is the
subject which is not described in the Registration Statement, the Disclosure Package and the
Prospectus, including ordinary routine litigation incidental to the business, is not reasonably
expected to result in a Material Adverse Effect.
(m) No consent, approval, authorization, order, registration or qualification of or with any
court or governmental agency or body is required for the due authorization, execution and delivery
by the Company of this Agreement or for the performance by the Company of the transactions
contemplated under the Disclosure Package and the Prospectus, this Agreement or the Indenture,
except such as have already been made, obtained or rendered, as applicable, and such as may be
required under state securities laws.
(n) Each insurance company subsidiary of the Company (collectively, the “Insurance
Subsidiaries”) is duly licensed as an insurance company in its jurisdiction of organization and is
duly licensed or authorized as an insurer in each jurisdiction outside its jurisdiction of
organization where it is required to be so licensed or authorized to conduct its
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business as described in the Registration Statement, the Disclosure Package and the Prospectuses, except where the failure to be so licensed or authorized, individually or in the aggregate,
would not result in a Material Adverse Effect.
(o) The Company is not and, after giving effect to the offering and sale of the Securities and
the application of the proceeds thereof as described in the Disclosure Package and the Prospectus,
will not be an “investment company” as defined in the Investment Company Act of 1940, as amended
(the “Investment Company Act”).
Any certificate signed by any officer of the Company and delivered to the Representatives or
counsel for the Underwriters in connection with the offering of the Securities shall be deemed a
representation and warranty by the Company, as to matters covered thereby, to each Underwriter.
5. The Company covenants and agrees with each Underwriter as follows:
(a) To file the Prospectus in a form approved by you (such approval not to be unreasonably
withheld or delayed) pursuant to Rule 424 of Regulation C under the Securities Act not later than
the Commission’s close of business on the second Business Day following the date of determination
of the offering price of the Securities. To prepare a final term sheet (the “Final Term Sheet”),
in the form of Exhibit B hereto, reflecting the final terms of the Securities, in form and
substance satisfactory to the Representatives, and shall file such Final Term Sheet as an “issuer
free writing prospectus” pursuant to Rule 433 prior to the close of business two business days
after the date hereof; provided that the Company shall furnish the Representatives with copies of
any such Final Term Sheet a reasonable amount of time prior to such proposed filing and will not
use or file any such document to which the Representatives or counsel to the Underwriters shall
object.
(b) To deliver to each Representative and counsel for the Underwriters, at the expense of the
Company, a conformed copy of the Registration Statement (as originally filed) and each amendment
thereto, in each case including exhibits and documents incorporated by reference therein and,
during the period mentioned in subsection (e) below, to each of the Underwriters as many copies of
the Prospectus (including all amendments and supplements thereto) and documents incorporated by
reference therein as you may reasonably request.
(c) For so long as the delivery of a prospectus is required in connection with the offering or
sale of the Securities (including in circumstances where such requirement may be satisfied pursuant
to Rule 172), to furnish to you a copy of any proposed amendment or supplement to the Registration
Statement or the Prospectus, for your review, and not to file any such proposed amendment or
supplement to which you reasonably and timely object in writing; provided, however, that the
provisions of this subsection (c) shall not apply to any of the Company’s periodic filings under
the Exchange Act described in subsection (d), copies of which filings in substantially final form
the Company has delivered to you in advance of their transmission to the Commission for filing.
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(d) To file promptly all reports and any definitive proxy or information statements required
to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act for so long as the delivery of a prospectus is required in connection with the
offering or sale of the Securities, and during such same period, to advise you promptly, and to
confirm such advice in writing, (i) when the Prospectus, and any supplement thereto, shall have
been filed (if required) with the Commission pursuant to Rule 424 of Regulation C under the
Securities Act or when any Rule 462(b) Registration Statement shall have been filed with the
Commission, (ii) when any amendment to the Registration Statement shall have become effective,
(iii) of any request by the Commission for any amendment to the Registration Statement or any
amendment or supplement to the Prospectus or for any additional information, insofar as such
amendment or supplement relates to or covers the Company generally or the Securities specifically,
(iv) of the issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or the initiation or threatening of any proceeding for that purpose, and (v)
of the receipt by the Company of any notification with respect to any suspension of the
qualification of the Securities for offer and sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and to use its best efforts to prevent the issuance
of any such stop order or notification and, if issued, to obtain as soon as possible the withdrawal
thereof.
(e) If, at any time when a prospectus is required to be delivered under the Securities Act
(including in circumstances where such requirement may be satisfied pursuant to Rule 172), any
event shall occur or condition shall exist as a result of which it is necessary to amend or
supplement the Prospectus in order to make the statements therein, in the light of the
circumstances when the Prospectus is delivered to a purchaser, not misleading, or if it is
necessary to amend or supplement the Prospectus to comply with law, promptly to prepare and
furnish, subject to subsection (c) above, at the expense of the Company (unless such event shall
occur more than nine months after the date of the Prospectus, in which case the cost of preparing
and furnishing such amendments or supplements shall be borne by the Underwriter or Underwriters
requesting the same), to the Underwriters and to the dealers (whose names and addresses you will
furnish to the Company) to which Securities may have been sold by you on behalf of the Underwriters
and to any other dealers upon request, such amendments or supplements to the Prospectus as may be
necessary so that the statements in the Prospectus as so amended or supplemented will not, in the
light of the circumstances when the Prospectus is delivered to a purchaser, be misleading or so
that the Prospectus will comply with law. If at any time following issuance of an Issuer Free
Writing Prospectus there occurred or occurs an event or development as a result of which such
Issuer Free Writing Prospectus conflicted or would conflict with the information contained in the
Registration Statement or the Statutory Prospectus or any preliminary prospectus or included or
would include an untrue statement of a material fact or omitted or would omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances
prevailing at that subsequent time, not misleading, the Company will promptly notify the
Representatives and will promptly amend or supplement, at its own expense, such Issuer Free Writing
Prospectus to eliminate or correct such conflict, untrue statement or omission. The foregoing
sentence does not apply to statements in or omissions form
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any Issuer Free Writing Prospectus based upon and in conformity with written information
furnished to the Company by any Underwriter through the Representatives specifically for use
therein.
(f) To make generally available to its security holders as soon as practicable an earnings
statement covering a period of at least twelve months beginning with the first fiscal quarter of
the Company occurring after the effective date of the Registration Statement, which shall satisfy
the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated
thereunder.
(g) From and including the date hereof to and including the Business Day following the Closing
Date, not to offer, sell, contract to sell or otherwise dispose of any debt securities of, or
guaranteed by, the Company which are substantially similar to the Securities without your prior
written consent.
(h) To arrange, if necessary, for the qualification of the Securities for sale under the laws
of such jurisdictions as the Representatives may designate, will maintain such qualifications in
effect so long as required for the distribution of the Securities and will pay any fee of the
National Association of Securities Dealers, Inc., in connection with its review of the offering;
provided that in no event shall the Company be obligated to qualify to do business in any
jurisdiction in which it is not now so qualified or to take any action that would subject it to
service of process in suits, other than those arising out of the offering or sale of the
Securities, in any jurisdiction in which it is not now so subject.
(i) To pay, except as otherwise provided in paragraph (e) above, all costs and expenses
incident to the performance of its obligations hereunder, including, without limiting the
generality of the foregoing, all costs and expenses (i) incident to the preparation, issuance,
execution, authentication and delivery of the Securities, including any expenses of the Trustee,
(ii) incident to the preparation and filing under the Securities Act of the Registration Statement,
the Prospectus and any preliminary prospectus (including in each case all exhibits, amendments and
supplements thereto), (iii) incident to the printing and delivery to you and the other Underwriters
of reasonable quantities of the Registration Statement, the Prospectus and any preliminary
prospectus (including in each case all exhibits, amendments and supplements thereto), (iv) incurred
in connection with the registration or qualification and determination of eligibility for
investment of the Securities under the laws of such jurisdictions as the Underwriters may designate
(including the fees and disbursements of counsel for the Underwriters in an amount not to exceed
$5,000), (v) in connection with any listing of the Securities on any stock exchange or quotation
system, (vi) related to any required filing with the National Association of Securities Dealers,
Inc., (vii) in connection with the duplication and delivery of this Agreement, the Indenture, the
Preliminary and Final Blue Sky Memoranda and any Legal Investment Survey and (viii) payable to
rating agencies in connection with the rating of the Securities; provided, however, that, except as
provided in this Section 5(i) and in Sections 7 and 10 hereof, the Underwriters shall pay their own
costs and expenses, including the fees and
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expenses of their counsel, any transfer taxes on the
Securities which they may sell and the expenses of advertising any offering of the Securities made
by the Underwriters.
(j) To not take, directly or indirectly, any action designed to or which has constituted or
which might reasonably be expected to cause or result in, under the Exchange Act or otherwise,
stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of the Securities.
(k) The Company represents and agrees that, unless it obtains the prior consent of the
Representatives, and each Underwriter represents and agrees that, unless it obtains the prior
consent of the Company and the Representatives, it has not made and will not make any offer
relating to the Securities that would constitute an “issuer free writing prospectus,” as defined in
Rule 433, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405,
required to be filed with the Commission (which consent is deemed to have been given with respect
to (A) the Final Term Sheet prepared and filed pursuant to Section 5(a) hereof and (B) and other
Issuer Free Writing Prospectus identified in Exhibit A hereto). Any such free writing prospectus
consented or deemed consented to by the Company and the Representatives is hereinafter referred to
as a “Permitted Free Writing Prospectus.” The Company represents that it has treated or agrees
that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,”
as defined in Rule 433, and has complied and will comply with the requirements of Rule 433
applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission
where required, legending and record keeping.
6. The several obligations of the Underwriters hereunder shall be subject to the following
conditions:
(a) The representations and warranties of the Company contained herein are true and correct on
and as of the Closing Date as if made on and as of the Closing Date, and the Company shall have
complied with all agreements and all conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date.
(b) The Prospectus shall have been filed with the Commission pursuant to Rule 424 of
Regulation C under the Securities Act within the applicable time period prescribed for such filing
by the rules and regulations under the Securities Act (without reliance on Rule 424(b)(8)); no stop
order suspending the effectiveness of the Registration Statement shall be in effect and no
proceedings for such purpose shall be pending before or threatened by the Commission; and all
reasonable requests for additional information on the part of the Commission shall have been
complied with to your reasonable satisfaction.
(c) From and including the date of this Agreement to and including the Closing Date, there
shall not have occurred any downgrading, nor shall any notice have been given of (i) any intended
or potential downgrading or (ii) any probable change that does not indicate an improvement in the
rating accorded any securities of, or guaranteed by, the Company by Xxxxx’x Investors Service, Inc.
or Standard & Poor’s Ratings Services.
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(d) Since the respective dates as of which information is given in the Disclosure Package and
the Prospectus there shall not have been any Material Adverse Change, otherwise than as set forth
or contemplated in the Disclosure Package and the Prospectus, the effect of which in the judgment
of the Representatives makes 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 Disclosure
Package and the Prospectus.
(e) The Representatives shall have received on and as of the Closing Date a certificate of the
Chief Financial Officer or the Treasurer of the Company, acting in their corporate capacities, to
the effect set forth in subsections (a) through (c) of this Section 6 and to the further effect
that there has not occurred any Material Adverse Change, other than as set forth or contemplated in
the Disclosure Package and the Prospectus.
(f) Xxxxx & Lardner LLP, counsel for the Company, shall have furnished to you their written
opinion (other than as to subparagraphs (vii) and (viii) insofar as such subparagraphs relate to
insurance law matters) and the General Counsel or Associate General Counsel of the Company, shall
have furnished to you his written opinion (as to subparagraphs (vii) and (viii) insofar as such
subparagraphs relate to insurance law matters), each dated the Closing Date, in form and substance
reasonably satisfactory to you, to the effect that:
(i) The Company is validly existing as a corporation under the laws of the State of Wisconsin,
with corporate power and authority to own its properties and conduct its business as described in
the Disclosure Package and the Prospectus, and has been duly qualified as a foreign corporation for
the transaction of business and is in good standing (or the local equivalent) 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 to be in good standing would
not result in a Material Adverse Effect.
(ii) Each Subsidiary of the Company is validly existing as a corporation or limited liability
company under the laws of the jurisdiction of incorporation or organization, with corporate power
and authority to own its properties and conduct its business as described in the Disclosure Package
and the Prospectus, and has been duly qualified as a foreign corporation or limited liability
company for the transaction of business and is in good standing (or the local equivalent) 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 to be in good standing
would not result in a Material Adverse Effect.
(iii) All the outstanding shares of capital stock of each Subsidiary have been duly authorized
and validly issued and are fully paid and non-assessable, and, except as otherwise set forth in the
Disclosure Package and the Prospectus, all outstanding shares of capital stock of the Subsidiaries
are owned by the Company either directly or through wholly owned subsidiaries free and clear of any
perfected security interest and, to the knowledge of such counsel, after due inquiry, any other
security interest, claim, lien or encumbrance.
-12-
(iv) This Agreement has been duly authorized, executed and delivered by the Company.
(v) The Securities have been duly authorized by the Company and, assuming that the Securities
have been duly authenticated by the Trustee in the manner described in its certificate delivered to
you today and payment of the consideration for the Securities as specified in the Underwriting
Agreement has been made, the Securities have been duly executed, issued and delivered by the
Company and will constitute valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms and the terms of the Indenture, except (A) as the
enforcement thereof may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting creditors’ rights
generally, (B) as enforcement thereof is subject to general equity principles (whether considered
in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing; and
holders of the Securities will be entitled to the benefits provided by the Indenture.
(vi) The Indenture has been duly authorized, executed and delivered by the Company and,
assuming the due authorization, execution and delivery thereof by the Trustee, constitutes a valid
and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except (A) as the enforcement thereof may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors’ rights generally, (B) as enforcement thereof is subject to general equity
principles (whether considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing; and the Indenture has been duly qualified under the Trust Indenture Act.
(vii) The issue and sale of the Securities and the performance by the Company of its
obligations under the Securities, the Indenture and this Agreement and the consummation of the
transactions herein and therein contemplated will not conflict with or result in a breach of any of
the terms or provisions of, or constitute a default under, any Agreements and Instruments known to
such counsel to which the Company or any of its subsidiaries is a party or by which the Company or
any such subsidiary is bound or to which any of the assets, properties or operations of the Company
or any such subsidiary is subject, other than in each case such breaches or defaults which,
individually or in the aggregate, would not result in a Material Adverse Effect, nor will such
action result in any violation of the provisions of the charter or bylaws of the Company or any of
its Subsidiaries or any applicable law or statute or any order, rule, regulation or judgment known
to such counsel of any court or governmental agency or body having jurisdiction over the Company or
any such subsidiary or any of their assets, properties or operations.
(viii) No consent, approval, authorization, order, registration or qualification of or filing
with any court or governmental agency or body is required for the issue and sale of the Securities
or the consummation of the other transactions contemplated by the
-13-
Disclosure Package and the
Prospectus, this Agreement or the Indenture, except such as have been already made, obtained or
rendered, as applicable, and such as may be required under state securities laws.
(ix) The statements in (A) the Disclosure Package and the Prospectus under “Description of
Debt Securities” and “Description of Notes” and (B) the Registration Statement in Item 15, insofar
as such statements constitute a summary of the legal matters, documents or proceedings referred to
therein, fairly present in all material respects the matters, documents or proceedings summarized
therein; and the Securities and the Indenture conform as to legal matters in all material respects
to the descriptions thereof in the Disclosure Package and the Prospectus.
(x) To the knowledge of such counsel, there is no pending or threatened action, suit or
proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company or any of its subsidiaries or its or their property, of a character required
to be disclosed in the Registration Statement, the Disclosure Package or the Prospectus which is
not adequately disclosed in the Disclosure Package and the Prospectus, and, to the knowledge of
such counsel, there is no franchise, contract or other document of a character
required to be described in the Registration Statement, the Disclosure Package and the
Prospectus, or to be filed as an exhibit thereto, which is not described or filed as required.
(xi) The Company is not and, after giving effect to the offering and sale of the Securities
and the application of the proceeds thereof as described in the Disclosure Package and the
Prospectus, will not be an “investment company” as defined in the Investment Company Act.
(xii) The Registration Statement has become effective under the Securities Act; any required
filing of the Prospectus or any preliminary prospectus pursuant to Rule 424(b) has been made in the
manner and within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)); any
required filing of each Issuer Free Writing Prospectus pursuant to Rule 433 has been made in the
manner and within the time period required by Rule 433(d); to the knowledge of such counsel, no
stop order suspending the effectiveness of the Registration Statement has been issued, and no
proceedings for that purpose have been instituted or threatened.
(xiii) Each document incorporated by reference in the Registration Statement and the
Prospectus (except for the financial statements and schedules and other financial data included
therein, as to which such counsel need express no opinion) complied as to form when filed with the
Commission in all material respects with requirements of the Exchange Act and the Registration
Statement, including without limitation the Rule 430B Information, and the Prospectus and each
amendment or supplement thereto as of their respective effective or issue dates (including without
limitation each deemed effective date with respect to the Underwriters pursuant to Rule 430B(f)(2)
under the Securities Act) (except for the financial
-14-
statements and schedules and other financial
data included therein, as to which such counsel need express no opinion) complied as to form in all
material respects with the requirements of the Securities Act and the Trust Indenture Act.
Nothing has come to such counsel’s attention that would lead such counsel to believe that
(except for the financial statements and schedules and other financial data included therein, as to
which such counsel need express no belief) (A) the Registration Statement or any amendment thereof
including any Rule 430B Information, when such Registration Statement or amendment became effective
and at each deemed effective date with respect to the Underwriters pursuant to Rule 430B(f)(2)
under the Securities Act, 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, (B) the Prospectus or any amendment or supplement thereto, at the time the Prospectus
was issued, at the time any such amended or supplemented prospectus was issued and on the Closing
Date, included or includes an untrue statement of a material fact or omitted to state a material
fact necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading or (C) the Disclosure Package, as of the Applicable Time, contained any
untrue statement of a material fact or omitted to state any material fact
necessary in order to make the statements therein, in the light of circumstances under which
they were made, not misleading.
In rendering such opinions, such counsel may: (A) rely as to matters of fact, to the extent
such counsel deems proper, on certificates of responsible officers of the Company given in their
corporate capacity (it is understood that such counsel shall be entitled to rely on certificates of
such officers and those of Subsidiaries with respect to the foreign qualification matters referred
to in subparagraph (ii) above) and certificates or other written statements of officials of
jurisdictions having custody of documents respecting the corporate existence or good standing of
the Company and (B) limit such opinions to the laws of the States of Delaware and Wisconsin and the
Federal laws of the United States of America and assume that the laws of the State of New York are
identical in all relevant aspects to the substantive laws of the State of Wisconsin. With respect
to the matters to be covered in the preceding paragraph, counsel may state his belief is based upon
his participation in the preparation of the Registration Statement, the Disclosure Package, the
Prospectus and any amendment or supplement thereto but is without independent check or verification
except as specified.
(g) On the date hereof and on the Closing Date, PricewaterhouseCoopers LLP shall have
furnished to you a letter, dated such date, in form and substance reasonably satisfactory to you,
containing statements and information of the type customarily included in accountants’ “comfort
letters” to underwriters with respect to the financial statements and certain financial information
contained or incorporated by reference in the Registration Statement, the Disclosure Package and
the Prospectus.
(h) You shall have received on and as of the Closing Date an opinion of Mayer, Brown, Xxxx &
Maw, counsel to the Underwriters, with respect to the validity of the
-15-
Indenture and the Securities,
the effectiveness of the Registration Statement, the disclosure in the Registration Statement, the
Disclosure Package and the Prospectus and such other matters as the Representatives may reasonably
request, and such counsel shall have received such papers and information as they may reasonably
request to enable them to pass upon such matters.
(i) On or prior to the Closing Date, the Company shall have furnished to the Representatives
such further certificates and documents as the Representatives shall reasonably request.
7. (a) The Company agrees to indemnify and hold harmless each Underwriter, its affiliates, as
such term is defined in Rule 501(b) under the Securities Act (each, an “Affiliate”), its selling
agents and each person, if any, who controls any Underwriter within the meaning of either Section
15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses,
claims, damages and liabilities (including, without limitation, the reasonable legal fees and other
expenses incurred in connection with any suit, action or proceeding or any claim asserted in
respect thereof), as incurred, to which such Underwriter or controlling person may be subject,
insofar as such losses, claims, damages or liabilities arise out of or are based upon:
(i) any untrue statement or alleged untrue statement of a material fact contained or included
in the Registration Statement or any amendment thereof, including the Rule 430B Information, the
Statutory Prospectus, the Disclosure Package, the Prospectus as amended or supplemented or any
amendment or supplement thereto, any preliminary prospectus or any Issuer Free Writing Prospectus;
or
(ii) the omission or alleged omission to state therein a material fact required to be stated
therein or, in the case of the Registration Statement or any amendment thereof, including the Rule
430B Information, the Statutory Prospectus, the Disclosure Package, the Prospectus as amended or
supplemented or any amendment or supplement thereto, or any Issuer Free Writing Prospectus
necessary to make the statements therein not misleading or, in the case of any preliminary
prospectus, necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading;
provided, however, that the Company shall not be liable insofar as such losses, claims,
damages or liabilities arise out of or are based upon an untrue statement or omission or alleged
untrue statement or omission made in any preliminary prospectus or in the Registration Statement or
any amendment thereof, the Prospectus, the Prospectus as amended or supplemented or any such
amendment or supplement thereto in reliance upon and in conformity with information furnished to
the Company in writing by such Underwriter through the Representatives expressly for inclusion
therein.
(b) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Company, its directors, its officers who sign the Registration Statement and each person, if any,
who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act from and against any and all losses, claims, damages and
-16-
liabilities (including,
without limitation, the reasonable legal fees and other expenses reasonably incurred in connection
with any suit, action or proceeding or any claim asserted in respect thereof), as incurred, to
which the Company may become subject, insofar as such losses, claims, damages or liabilities arise
out of or are based upon:
(i) any untrue statement or alleged untrue statement of a material fact contained or included
in the Registration Statement or any amendment thereof, the Prospectus, the Prospectus as amended
or supplemented or any amendment or supplement thereto, or any preliminary prospectus; or
(ii) the omission or alleged omission to state therein a material fact required to be stated
therein or, in the case of the Registration Statement or any amendment thereof, the Prospectus or
the Prospectus as amended or supplemented or any amendment or supplement thereto, necessary to make
the statements therein not misleading or, in the case of any preliminary prospectus, necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading;
in each case to the extent, but only to the extent, that such untrue statement or omission or
alleged untrue statement or alleged omission was made in any preliminary prospectus or in the
Registration Statement or any amendment thereof, the Prospectus or the Prospectus as amended or
supplemented or any amendment or supplement thereto in reliance upon and in conformance with
information furnished to the Company in writing by or on behalf of such Underwriter expressly for
use therein.
(c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any person in respect of which indemnity may
be sought (the “Indemnified Person”) pursuant to either of subsections (a) or (b) above, such
Indemnified Person shall promptly notify the person against whom such indemnity may be sought (the
“Indemnifying Person”) in writing (in such detail as may be available to such Indemnified Person).
In no case shall an Indemnifying Person be liable under this Section 7 with respect to any claim
made against an Indemnified Person unless such Indemnifying Person shall be notified in writing of
the nature of the claim within a reasonable time after the Indemnified Party is aware of such claim
thereof, but failure so to notify such Indemnifying Person shall not relieve it from any liability
that it may have otherwise than on account of this Section 7. Upon such notice, the Indemnifying
Person shall be entitled to participate in, and, to the extent that it shall wish, jointly with any
other Indemnifying Person similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Person, and after notice from the Indemnifying Person
to such Indemnified Person of its election so to assume the defense thereof, the Indemnifying
Person shall not be liable to such Indemnified Person for any legal or other expenses subsequently
incurred by such Indemnified Person in connection with the defense thereof other than reasonable
costs of investigation or as provided in subsection (d) below. Each Indemnified Person shall
assist the Indemnifying Person in any defense undertaken pursuant to this Section 7 by providing
such
-17-
assistance and cooperation (including, without limitation, witness and documentary or other
information) as may be reasonably requested by the Indemnifying Person in connection with such
defense, provided that all reasonable costs and expenses of such assistance and cooperation shall
be borne by the Indemnifying Person.
(d) Notwithstanding anything herein contained, any Indemnified Person shall have the right to
retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary, (ii) the Indemnifying Person has failed within a reasonable time
to retain counsel reasonably satisfactory to the Indemnified Person or (iii) the named parties in
the applicable suit, action, proceeding, claim or demand (including any impleaded parties) include
both the Indemnifying Person and the Indemnified Person and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing interests between them or
defenses available to them. It is understood that the Indemnifying Person shall not, in connection
with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local
counsel) for all Indemnified Persons, and that all such fees and expenses, to the extent they
are reasonable, shall be reimbursed as they are incurred. Any such separate firm for the
Underwriters and such control persons of the Underwriters shall be designated in writing by the
first of the named Representatives on Schedule I hereto and any such separate firm for the Company,
its directors, its officers who sign the Registration Statement and such control persons of the
Company or authorized representatives shall be designated in writing by the Company. In either
case, the separate firm so selected shall be reasonably satisfactory to the Indemnifying Person.
The Indemnifying Person shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Indemnifying Person agrees to indemnify any Indemnified Person from and against any
loss or liability by reason of such settlement or judgment. No Indemnifying Person shall, without
the prior written consent of the Indemnified Person, effect any settlement of any pending or
threatened claim, action, suit or proceeding in respect of which any Indemnified Person is or could
have been a party and indemnity could have been sought hereunder by such Indemnified Person, unless
the Indemnifying Person has first given the Indemnified Person reasonable prior written notice of
such proposed settlement and consulted in good faith with the Indemnified Person as to the
inclusion therein of an unconditional release of the Indemnified Person from all liability arising
out of such claim, action, suit or proceeding; and in the event that an Indemnified Person is an
actual party to such claim, action, suit or proceeding, the Indemnifying Party shall not, without
the prior written consent of the Indemnified Person, settle or compromise or consent to the entry
of any judgment therein unless the same includes an unconditional release of such Indemnified
Person from all liability arising out of or otherwise relating to the subject matter of such claim,
action, suit or proceeding.
(e) If the indemnification provided for in subsections (a) or (b) above is legally unavailable
to an Indemnified Person in respect of any losses, claims, damages or liabilities referred to
therein, then each Indemnifying Person under such subsection, in lieu of
-18-
indemnifying such
Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities (i) 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 hand from the offering of the Securities or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company on the one hand and the Underwriters on the other hand in connection
with the statements or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations.
(f) The relative benefits received by the Company on the one hand and the Underwriters on the
other hand shall be deemed to be in the same respective proportions as the net proceeds from the
offering of the Securities (before deducting expenses) received by the Company and the total
underwriting discounts and the commissions received by the Underwriters bear to the aggregate
public offering price of the Securities. The relative fault of the Company on
the one hand and the Underwriters on the other hand shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company or by the
Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. With respect to any Underwriter, such relative
fault shall also be determined by reference to the extent (if any) to which such losses, claims,
damages or liabilities (or actions in respect thereof) with respect to any preliminary prospectus
result from the fact that such Underwriter sold Securities to a person to whom there was not sent
or given, at or prior to the written confirmation of such sale, a copy of the Prospectus (excluding
documents incorporated by reference) or of the Prospectus as then amended or supplemented
(excluding documents incorporated by reference) if the Company has previously furnished copies
thereof to such Underwriter.
(g) The Company and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation that
does not take account the equitable considerations referred to in subsection (f) above. The amount
paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities
referred to in subsection (f) above shall be deemed to include, subject to the limitations set
forth above, any reasonable legal or other expenses incurred by such Indemnified Person in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 7, in no event shall an Underwriter 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 such
Underwriter has otherwise been required to pay by reason of such untrue statement or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.
-19-
The Underwriters’ obligations
to contribute pursuant to this Section 7 are several in proportion to the respective principal
amounts of the Securities set forth opposite their names in Schedule II hereto, and not joint.
(h) The indemnity and contribution agreements contained in this Section 7 are in addition to
any liability that the Indemnifying Persons may otherwise have to the Indemnified Persons referred
to above.
(i) The indemnity and contribution agreements contained in this Section 7 and the
representations and warranties of the Company set forth in this Agreement shall remain operative
and in full force and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of any Underwriter or any person controlling any Underwriter or
by or on behalf of the Company, its officers or directors or any other person controlling the
Company and (iii) acceptance of and payment for any of the Securities.
8. Notwithstanding anything herein contained, this Agreement may be terminated in the absolute
discretion of the Representatives, by notice given to the Company, if, from and including the date
of this Agreement to and including the Closing Date, (i) trading generally shall have been
suspended or materially limited on or by, as the case may be, the New York Stock Exchange or the
National Association of Securities Dealers, Inc., (ii) trading of any securities of, or guaranteed
by, the Company shall have been suspended on any stock exchange or in any over-the-counter market,
(iii) a general moratorium on commercial banking activities in New York shall have been declared by
either Federal or New York State authorities or a material disruption shall have occurred in
securities settlement, payment or clearance services in the United States, or (iv) there shall have
occurred any outbreak or escalation of hostilities or any change in financial markets or any
calamity or crisis that, in the judgment of the Representatives, is material and adverse and which,
in the good faith judgment of the Representatives, makes it impracticable to market the Securities
on the terms and in the manner contemplated in the Disclosure Package and the Prospectus.
9. If, on the Closing Date, any one or more of the Underwriters shall fail or refuse to
purchase Securities that it or they have agreed to purchase under this Agreement, and the aggregate
principal amount of Securities which such defaulting Underwriter or Underwriters agreed but failed
or refused to purchase is not more than one-tenth of the aggregate principal amount of the
Securities, the other Underwriters shall be obligated severally in the proportions that the
principal amount of Securities set forth opposite their respective names in Schedule II hereto
bears to the aggregate principal amount of Securities set forth opposite the names of all such
non-defaulting Underwriters, or in such other proportions as the Representatives may specify, to
purchase the Securities that such defaulting Underwriter or Underwriters agreed but failed or
refused to purchase on such date; provided that in no event shall the principal amount of
Securities that any Underwriter has agreed to purchase pursuant to Section I be increased pursuant
to this Section 9 by an amount in excess of one-ninth of such principal amount of Securities
without the written consent of such Underwriter.
-20-
If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase
Securities and the aggregate principal amount of Securities with respect to which such default
occurs is more than one-tenth of the aggregate principal amount of Securities to be purchased, and
arrangements satisfactory to you and the Company for the purchase of such Securities are not made
within 36 hours after such default, this Agreement shall terminate without liability on the part of
any non-defaulting Underwriter or Underwriters or the Company. In any such case, either you or the
Company shall have the right to postpone the Closing Date, but in no event for longer than seven
days, in order that the required changes, if any, in the Registration Statement, the Disclosure
Package and in the Prospectus or in any other documents or arrangements may be effected.
Any action taken under this paragraph shall not relieve any defaulting Underwriter from
liability in respect of any default of such Underwriter under this Agreement.
10. If this Agreement shall be terminated by the Underwriters, or any of them, because of any
failure or refusal on the part of the Company to comply in all material respects with the terms or
to fulfill in all material respects any of the conditions of this Agreement, the Company agrees to
reimburse the Underwriters or such Underwriters as have so terminated this Agreement with respect
to themselves, severally, for all documented out-of-pocket expenses (including the fees and
expenses of their counsel) reasonably incurred by such Underwriters in connection with this
Agreement or the offering of Securities.
11. This Agreement shall inure to the benefit of and be binding upon the Company, the
Underwriters, any controlling persons referred to herein and their respective successors and
assigns. Nothing expressed or mentioned in this Agreement is intended or shall be construed to
give any other person, firm or corporation any legal or equitable right, remedy or claim under or
in respect of this Agreement or any provision herein contained. No purchaser of Securities from
any Underwriter shall be deemed to be a successor by reason merely of such purchase.
12. Any action by the Underwriters hereunder may be taken by you jointly or by the first of
the named Representatives set forth in Schedule I hereto alone on behalf of the Underwriters, and
any such action taken by you jointly or by the first of the named Representatives set forth in
Schedule I hereto alone shall be binding upon the Underwriters. All notices and other
communications hereunder shall be in writing and shall be deemed to have been duly given if mailed
or transmitted by any standard form of telecommunication. Notices to the Underwriters shall be
given at the address set forth in Schedule I hereto. Notices to the Company shall be given to it
at MGIC Plaza, 000 Xxxx Xxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000 Attention: Treasurer, with a
copy to the same address, Attention: General Counsel.
13. The Company hereby acknowledges that the Underwriters are acting as principal and not as
the agent or fiduciary of the Company and (b) its their engagement of the Underwriters in
connection with the Offering is as independent contractors and not in any other capacity.
Furthermore, the Company agrees that it is solely responsible for independently making its own
judgments in connection with the Offering (irrespective of whether any of the Underwriters has
advised or is currently advising the Company on other matters).
-21-
14. This Agreement may be signed in counterparts, each of which shall be an original and all
of which together shall constitute one and the same instrument. This Agreement shall be governed
by and construed in accordance with the laws of the State of New York, without giving effect to the
conflicts of laws provisions thereof.
| Very truly yours, | ||||
| MGIC INVESTMENT CORPORATION | ||||
| By: | /s/ Xxxxx X. Xxxxxxxxx | |||
| Name: | Xxxxx X. Xxxxxxxxx | |||
| Title: | Senior Vice President — Chief Investment Officer and Treasurer | |||
| Accepted: | ||||||
| BNP PARIBAS SECURITIES CORP. | ||||||
By: |
/s/ Xxx Xxxxxx, MD |
|||||
| Name: | Xxx Xxxxxx, MD | |||||
| Title: | Head of Debt Capital Markets | |||||
| XXXXXX BROTHERS INC. | ||||||
By: |
/s/ Xxxxxx Xxxxxxxx |
|||||
| Name: | Xxxxxx Xxxxxxxx | |||||
| Title: | Senior Vice President | |||||
| Acting severally on their own behalf and on behalf of the several Underwriters named herein. | ||||||
-22-
SCHEDULE I
The Securities
Representatives: |
BNP Paribas Securities Corp. | |
| Xxxxxx Brothers Inc. | ||
Title of Securities: |
5.625% Senior Notes due 0000 | |
Xxxxxxxxx principal amount: |
$200,000,000 | |
Maturity: |
September 15, 2011 | |
Interest Rate: |
5.625% per annum | |
Interest Payment Dates: |
March 15 and September 15, commencing March 15, 2007 | |
Optional Redemption/ |
||
Repayment Provisions: |
Market make-whole at T+0.15%, as described in the Prospectus | |
Sinking Fund Provisions: |
None | |
Price to Public: |
99.979% | |
Price to Underwriters: |
99.379% | |
Form: |
Book-entry only form through the facilities of The Depository Trust Company | |
Other Provisions: |
Not applicable |
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Closing Date and Location: |
September 18, 2006 |
|
| 9:00 a.m., Central Time |
||
| Xxxxx & Lardner LLP |
||
| 000 Xxxx Xxxxxxxxx Xxxxxx |
||
| Xxxxxxxxx, Xxxxxxxxx 00000 | ||
Address for Notices to |
||
Underwriters: |
BNP Paribas Securities Corp. |
|
| 000 Xxxxxxx Xxxxxx |
||
| Xxx Xxxx, Xxx Xxxx 00000 |
||
| Attn: Debt Capital Markets |
||
| Facsimile: (000) 000-0000 | ||
| -and- | ||
| Xxxxxx Brothers Inc. |
||
| 000 Xxxxxxx Xxxxxx |
||
| Xxx Xxxx, Xxx Xxxx 00000 | ||
| Attn: Debt Capital Markets – Financial Institutions Group | ||
| Facsimile: (000) 000-0000 | ||
| (with a copy to the General Counsel at the same address) | ||
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SCHEDULE II
| Principal Amount | ||||
| Name of Underwriter | of Notes | |||
BNP Paribas
Securities Corp. |
$ | 100,000,000 | ||
Xxxxxx
Brothers Inc. |
32,000,000 | |||
Banc of America Securities LLC |
20,000,000 | |||
Deutsche
Bank Securities Inc. |
20,000,000 | |||
LaSalle
Financial Services, Inc. |
20,000,000 | |||
Xxxxx
Xxxxxxx & Co. |
8,000,000 | |||
Total |
$ | 200,000,000 | ||
-25-
Exhibit A
Issuer Free Writing Prospectus
None
-26-
Exhibit B
Form of Final Term Sheet
Filed Pursuant to Rule 433
Registration No. 333-126631
Dated September 13, 2006
Registration No. 333-126631
Dated September 13, 2006
$200,000,000
5.625% Senior Notes due 2011
Final Term Sheet
Issuer: |
MGIC Investment Company | |
Ratings: |
A1/A | |
Format: |
SEC Registered | |
Ranking: |
Senior Unsecured | |
Size: |
$200,000,000 | |
Trade Date: |
September 13, 2006 | |
Settlement Date: |
September 18, 2006 | |
Final Maturity: |
September 15, 2011 | |
Interest Payment Dates: |
Semi-annually on March 15 and September 15 | |
First Pay Date: |
March 15, 2007 | |
Pricing Benchmark: |
4.625% UST due August 31, 2011 | |
UST Spot (PX/Yield): |
99-24 1/4 / 4.68% | |
Spread to Benchmark: |
+95 basis points | |
Yield to Maturity: |
5.63% | |
Coupon: |
5.625% | |
Price: |
99.979 | |
Underwriters’ Commission: |
0.600% | |
Proceeds to Issuer: |
$198,758,000 | |
Day Count: |
30/360 | |
Optional Redemption: |
Treasury Rate plus 0.15% | |
Minimum Denominations: |
$1,000 | |
Bookrunners: |
BNP Paribas Securities Corp. | |
| Xxxxxx Brothers Inc. | ||
Co-managers: |
Banc of America Securities LLC | |
| Deutsche Bank Securities Inc. | ||
| LaSalle Financial Services, Inc. | ||
| Xxxxx Xxxxxxx & Co. | ||
CUSIP: |
552845 AG 4 | |
Exchange Listing: |
None |
This communication is intended for the sole use of the person to whom it is provided by us.
The issuer has filed registration statements (including prospectuses) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectuses
in those registration statements and other documents the issuer has filed with the SEC for more
complete information about the issuer and this offering. You may get these documents for free by
visiting XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the issuer, any
underwriter or any dealer participating in the offering will arrange to send you the
prospectus if you request it by calling toll-free: BNP Paribas 0-000-000-0000 and Xxxxxx Brothers
at 0-000-000-0000.
-27-
