CHART INDUSTRIES, INC. 12,500,000 Shares Common Stock, par value $0.01 per Share Underwriting Agreement
Exhibit 1.1
CHART INDUSTRIES, INC.
12,500,000 Shares
Common Stock, par value $0.01 per Share
Common Stock, par value $0.01 per Share
Underwriting Agreement
, 2006
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
Natexis Bleichroeder Inc.
Xxxxxxx & Company International
Xxxxxx Xxxx Incorporated
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxxxxx Brothers Inc.
UBS Securities LLC
Natexis Bleichroeder Inc.
Xxxxxxx & Company International
Xxxxxx Xxxx Incorporated
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Chart Industries, Inc., a corporation organized under the laws of Delaware (the “Company”),
proposes to issue and sell to the several Underwriters named in Schedule I hereto (the
“Underwriters”), 12,500,000 shares of the common stock, par value $0.01 per share, of the Company
(the “Firm Shares”).
The Company also proposes to issue and sell to the several Underwriters not more than an
additional 1,875,000 shares of common stock, par value $0.01 per share, of the Company (the
“Additional Shares”) if and to the extent that Xxxxxx Xxxxxxx & Co. Incorporated (“Xxxxxx
Xxxxxxx”), Xxxxxx Brothers Inc. (“Xxxxxx”) and UBS Securities LLC (“UBS,” together with Xxxxxx
Xxxxxxx and Xxxxxx, the “Managers”), as Managers of the offering, shall have determined to
exercise, on behalf of the Underwriters, the right to purchase such shares of common stock granted
to the Underwriters in Section 2 hereof. The Firm Shares and the Additional Shares are hereinafter
collectively referred to as the “Shares.” The shares of common stock, par value $0.01 per share,
of the Company to be outstanding after giving effect to the sales contemplated hereby are
hereinafter referred to as the “Common Stock.”
The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement, including a prospectus, relating to the Shares. The registration statement
as amended at the time it becomes effective, including the information (if any) deemed to be part
of the registration statement at the time of effectiveness pursuant to Rule 430A under the
Securities Act of 1933, as amended (the “Securities Act”), is hereinafter
referred to as the
“Registration Statement”; the prospectus in the form first used to confirm sales of Shares (or in
the form first made available to the Underwriters by the Company to meet
requests of purchasers pursuant to Rule 173 under the Securities Act) is hereinafter referred
to as the “Prospectus.” If the Company has filed an abbreviated registration statement to register
additional shares of Common Stock pursuant to Rule 462(b) under the Securities Act (the “Rule 462
Registration Statement”), then any reference herein to the term “Registration Statement” shall be
deemed to include such Rule 462 Registration Statement.
For purposes of this Agreement, “free writing prospectus” has the meaning set forth in Rule
405 under the Securities Act; “Time of Sale Prospectus” means the preliminary prospectus included
in the Registration Statement at the time it became effective, together with the free writing
prospectuses, if any, or any other pricing information identified or included in Schedule II
hereto; and “broadly available road show” means a “bona fide electronic road show,” if any, as
defined in Rule 433(h)(5) under the Securities Act that has been made available without restriction
to any person.
Xxxxxx Xxxxxxx has agreed to reserve a portion of the Shares to be purchased by it under this
Agreement for sale to the Company’s directors, officers, employees and business associates and
other parties related to the Company (collectively, “Participants”), as set forth in the Time of
Sale Prospectus and the Prospectus under the heading “Underwriting” (the “Directed Share Program”).
The Shares to be sold by Xxxxxx Xxxxxxx and its affiliates pursuant to the Directed Share Program
are referred to hereinafter as the “Directed Shares”. Any Directed Shares not orally or
electronically confirmed for purchase by any Participant by the end of the day on which this
Agreement is executed will be offered to the public by the Underwriters as set forth in the Time of
Sale Prospectus and the Prospectus.
1. Representations and Warranties. The Company represents and warrants to each
Underwriter as set forth below in this Section 1:
(a) The Registration Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect, and no proceedings for such purpose are
pending before or threatened by the Commission.
(b) (i) The Registration Statement, when it became effective, did not contain and, as amended
or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) the Registration Statement and the Prospectus comply and, as amended or
supplemented, if applicable, will comply in all material respects with the Securities Act and the
applicable rules and regulations of the Commission thereunder, (iii) the Time of Sale Prospectus
does not, and at the time of each sale of the Shares in connection with the offering when the
Prospectus is not yet available to prospective purchasers and at the Closing Date (as defined in
Section 4), the Time of Sale Prospectus, as then amended or supplemented by the Company, if
applicable, will not, contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, (iv) each broadly available road show, if any, when
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considered together with the Time of Sale Prospectus, does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading and (v) the Prospectus does not,
as of its date, contain and, as then amended or supplemented, if applicable, will not contain
any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that the Company makes no representation or warranty as to the
information contained in or omitted from the Registration Statement, the Time of Sale Prospectus or
the Prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with
information furnished in writing to the Company by or on behalf of the Underwriters through the
Managers specifically for inclusion therein.
(c) The Company is not an “ineligible issuer” in connection with the offering pursuant to
Rules 164, 405 and 433 under the Securities Act. Any free writing prospectus that the Company is
required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with
the Commission in accordance with the requirements of the Securities Act and the applicable rules
and regulations of the Commission thereunder. Each free writing prospectus that the Company has
filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was
prepared by or on behalf of or used or referred to by the Company complies or will comply in all
material respects with the requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder. Except for the free writing prospectuses or other
pricing information, if any, identified or included in Schedule II hereto, and broadly available
road shows, if any, furnished to you before first use, the Company has not prepared, used or
referred to, and will not, without your prior consent, prepare, use or refer to, any free writing
prospectus or any notice, circular, advertisement, letter or other communication published or
transmitted pursuant to Rule 134 of the Securities Act.
(d) The Company is not, and after giving effect to the offering and sale of the Shares and the
application of the proceeds thereof as described in the Prospectus will not be, an “investment
company” as defined in the Investment Company Act, without taking account of any exemption arising
out of the number of holders of the Company’s securities.
(e) The Company has not paid or agreed to pay to any person any compensation for soliciting
another to purchase any securities of the Company (except as contemplated in this Agreement).
(f) Neither the Company nor any of its subsidiaries has taken or will take, directly or
indirectly, any action designed to or that has constituted or that would reasonably be expected to
cause or result, under the Exchange Act or otherwise, in unlawful stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Shares.
(g) The Company and each of its “significant subsidiaries” (as defined in Regulation S-X under
the Securities Act) has been duly incorporated or formed and is validly existing as an entity in
good standing under the laws of the jurisdiction in which it is chartered or organized with full
corporate or other organizational power and authority to own or lease, as the
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case may be, and to
operate its properties and conduct its business as described in the Time of Sale Prospectus and the
Prospectus, and is duly qualified to do business as a foreign corporation or other entity and is in
good standing under the laws of each jurisdiction where the ownership or leasing of its properties
or the conduct of its business requires such qualification except where the
failure to be so incorporated or formed or existing or qualified, have such power or authority
or be in good standing would not reasonably be expected to have a material adverse effect on the
condition (financial or other), business, properties or results of operations of the Company and
its subsidiaries, taken as a whole (a “Material Adverse Effect”). The Company’s “significant
subsidiaries” are listed on Schedule III hereto.
(h) All the outstanding shares of capital stock, membership interests and limited partnership
interests, as applicable, of each significant subsidiary of the Company have been duly authorized
and validly issued and are fully paid and nonassessable, and, except as otherwise set forth in the
Time of Sale Prospectus and the Prospectus, all outstanding shares of capital stock, membership
interests and limited partnership interests, as applicable, of each significant subsidiary of the
Company are owned by the Company either directly or through wholly owned subsidiaries free and
clear of any security interest, claim, lien or encumbrance (other than liens, encumbrances and
restrictions imposed in favor of the lenders under the Company’s existing senior secured credit
facility described in the Time of Sale Prospectus and the Prospectus or permitted thereunder).
(i) (a) This Agreement has been duly authorized, executed and delivered by the Company; (b)
the shares of Common Stock outstanding prior to the issuance of the Shares to be sold by the
Company have been duly authorized and are validly issued, fully paid and non-assessable; and (c)
the Shares to be sold by the Company have been duly authorized and, when issued and delivered in
accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable,
and the issuance of such Shares will not be subject to any preemptive or similar rights.
(j) The authorized capital stock of the Company conforms as to legal matters to the
description thereof contained in the Time of Sale Prospectus and the Prospectus.
(k) No consent, approval, authorization, filing with or order of any court or governmental
agency or body is required in connection with the execution, delivery and performance of this
Agreement (including without limitation the issuance of the Shares), except such (i) as may be
required under the blue sky laws of any jurisdiction in which the Shares are offered and sold or
(ii) as shall have been obtained or made prior to the Closing Date.
(l) None of the execution and delivery of this Agreement, the issuance and sale of the Shares
or the consummation of any of the transactions herein contemplated will conflict with or result in
a breach or violation or imposition of any lien, charge or encumbrance upon any property or assets
of the Company or any of its subsidiaries pursuant to (i) the charter or bylaws or other
organizational document of the Company or any of its
significant subsidiaries; (ii) the terms of
any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument to which the Company or any of its
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significant subsidiaries is a party or bound or to which its or their property is subject; or (iii)
any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority having jurisdiction over
the Company or any of its significant subsidiaries or any of its or their properties other than in
the case of clauses (ii) and (iii), such conflicts, breaches, violations, liens, charges or
encumbrances
that would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(m) The consolidated historical financial statements of the Company (including those of the
predecessor company and the reorganized company) included in the Time of Sale Prospectus, the
Prospectus and the Registration Statement present fairly the financial condition, results of
operations and cash flows of the Company as of the dates and for the periods indicated, comply as
to form with the applicable accounting requirements of the Securities Act and have been prepared in
conformity with generally accepted accounting principles in the United States applied on a
consistent basis throughout the periods involved (except as otherwise noted therein); the selected
financial data set forth under the captions “Summary Historical and Pro Forma Financial
Information” and “Selected Historical Consolidated Financial Data” in the Time of Sale Prospectus,
the Prospectus and the Registration Statement fairly present, on the basis stated in the Time of
Sale Prospectus, the Prospectus and the Registration Statement, the information included therein;
the unaudited pro forma financial statements included in the Time of Sale Prospectus, the
Prospectus and the Registration Statement include assumptions that provide a reasonable basis for
presenting the significant effects directly attributable to (i) the Acquisition (as defined in the
Time of Sale Prospectus and the Prospectus) and the transactions related to the Acquisition, as
described in the Time of Sale Prospectus and the Prospectus, (ii) the offering of the Company’s 9
1/8% senior subordinated notes due 2015 and the borrowings under the Company’s senior secured
credit facility and (iii) the offering of the Shares; the related pro forma adjustments give
appropriate effect to those assumptions; and the pro forma financial information reflects the
proper application of those adjustments to the historical financial statement amounts in the
unaudited pro forma financial statements included in the Time of Sale Prospectus, the Prospectus
and the Registration Statement. The unaudited pro forma financial statements included under the
captions “Summary Historical and Pro Forma Financial Information” and “Unaudited Pro Forma
Financial Information” in the Time of Sale Prospectus, the Prospectus and the Registration
Statement comply as to form in all material respects with the applicable accounting requirements of
Regulation S-X under the Securities Act.
(n) No action, suit or proceeding by or before any court or governmental agency, authority or
body or any arbitrator involving the Company or any of its subsidiaries or its or their property is
pending or, to the best knowledge of the Company, threatened that (i) would reasonably be expected
to have a Material Adverse Effect on the performance of this Agreement or the consummation of any
of the transactions contemplated hereby or (ii) would reasonably be expected to have a Material
Adverse Effect, except as set forth in or contemplated in the Time of Sale Prospectus and the
Prospectus (exclusive of any amendment or supplement thereto).
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(o) Each of the Company and its subsidiaries owns or leases all such properties as are
necessary to the conduct of its operations as presently conducted except as would not reasonably be
expected to have a Material Adverse Effect.
(p) Neither the Company nor any of its subsidiaries is in violation or default of (i) any
provision of its charter or bylaws or any equivalent organizational document; (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument to which it is a party or bound or to
which its property is subject; or (iii) any statute, law, rule, regulation, judgment, order or
decree applicable to the Company or any of its subsidiaries of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority having jurisdiction over
the Company or such subsidiary or any of its properties, as applicable, other than in the cases of
clauses (ii) and (iii), such violations and defaults that would not reasonably be expected to have
a Material Adverse Effect.
(q) Ernst & Young LLP, who have audited certain financial statements of the Company and
delivered their reports with respect to the audited consolidated financial statements included in
the Time of Sale Prospectus and the Prospectus, is an independent registered public accounting firm
with respect to the Company within the meaning of the Securities Act.
(r) The Company has filed all non-U.S., U.S. federal, state and local tax returns that are
required to be filed or has requested extensions thereof (except in any case in which the failure
so to file would not reasonably be expected to have a Material Adverse Effect and except as set
forth in or contemplated in the Time of Sale Prospectus and the Prospectus (exclusive of any
amendment or supplement thereto)) and has paid all taxes required to be paid by it and any other
assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and
payable, except for any such assessment, fine or penalty that is currently being contested in good
faith or as would not reasonably be expected to have a Material Adverse Effect and except as set
forth in or contemplated in the Time of Sale Prospectus and the Prospectus (exclusive of any
amendment or supplement thereto).
(s) No labor problem or dispute with the employees of the Company or any of its subsidiaries
exists or, to the Company’s knowledge, is threatened or imminent, and the Company is not aware of
any existing or imminent labor disturbance by its employees or any of its or its subsidiaries’
employees, except as would not reasonably be expected to have a Material Adverse Effect and except
as set forth in or contemplated in the Time of Sale Prospectus and the Prospectus (exclusive of any
amendment or supplement thereto).
(t) The Company and each of its subsidiaries are insured against such losses and risks and in
such amounts as are prudent and customary in the businesses in which they are engaged or as
required by law, except as would not reasonably be expected to have a Material Adverse Effect.
(u) No subsidiary of the Company is currently prohibited, directly or indirectly, from paying
any dividends to the Company or any other subsidiary, from making any other
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distribution on such
subsidiary’s capital stock, from repaying to the Company or any other subsidiary any loans or
advances to such subsidiary from the Company or any other subsidiary or from transferring any of
such subsidiary’s property or assets to the Company or any other subsidiary of the Company, except
as described in or contemplated in the Time of Sale Prospectus and the Prospectus (exclusive of any
amendment or supplement thereto) and except for any prohibitions imposed under the Company’s
existing senior secured credit facility and the indenture governing the Company’s outstanding 9
1/8% senior subordinated notes due 2015.
(v) The Company and its subsidiaries possess all licenses, certificates, permits and other
authorizations issued by the appropriate U.S. federal, state or non-U.S. regulatory authorities
necessary to conduct their respective businesses, except where the failure to possess such
licenses, certificates, permits and other authorizations would not reasonably be expected to have a
Material Adverse Effect, and neither the Company nor any of its subsidiaries has received any
notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would have a Material Adverse Effect, except as set forth in or
contemplated in the Time of Sale Prospectus and the Prospectus (exclusive of any amendment or
supplement thereto).
(w) Except as described in the Time of Sale Prospectus and the Prospectus (exclusive of any
amendment or supplement thereto), the Company and each of its subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.
(x) Except as set forth in or contemplated in the Time of Sale Prospectus and the Prospectus
(exclusive of any amendment or supplement thereto), the Company and its subsidiaries are (i) in
compliance with any and all applicable non-U.S., U.S. federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (“Environmental Laws”); (ii) have received and are
in compliance with all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; (iii) have not received notice of any
actual or potential liability under any Environmental Law; and (iv) have not been named as a
“potentially responsible party” under the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, except where such non-compliance with Environmental Laws,
failure to receive required permits, licenses or other approvals, liability or naming as a
“potentially responsible party” would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.
(y) Each U.S. pension plan and welfare plan established or maintained by the Company and/or
one or more of its subsidiaries is in compliance with the currently applicable
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provisions of ERISA and the Code, except where noncompliance would not reasonably be expected to have a Material
Adverse Effect; and neither the Company nor any of its subsidiaries has incurred or could
reasonably be expected to incur any withdrawal liability under Section 4201 of ERISA, any liability
under Section 4062, 4063 or 4064 of ERISA or any other liability under Title IV of ERISA that would
reasonably be expected to have a Material Adverse Effect.
(z) No forward-looking statement (within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act) or presentation of market-related or statistical data contained in
the Time of Sale Prospectus, the Prospectus or Registration Statement
has been made or reaffirmed without a reasonable basis or has been disclosed in other than
good faith.
(aa) No holders of the Company’s Common Stock have rights to include such Common Stock in the
Registration Statement.
(bb) Except as described in the Time of Sale Prospectus and the Prospectus (exclusive of any
amendments or supplements thereto subsequent to the date of this Agreement), the Company has not
sold, issued or distributed any shares of Common Stock during the six-month period preceding the
date hereof, including any sales pursuant to Rule 144A under, or Regulation D or S of, the
Securities Act, other than shares issued pursuant to employee benefit plans, qualified stock option
plans or other employee compensation plans or pursuant to outstanding options, rights or warrants.
(cc) There is and has been no failure on the part of the Company and any of the Company’s
directors or officers, in their capacities as such, to comply with any provision of the Sarbanes
Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes
Oxley Act”), including Section 402 related to loans and Sections 302 and 906 related to
certifications, solely to the extent that the Sarbanes Oxley Act has been applicable to the
Company.
(dd) Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any
director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is
currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds
of the offering, 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.
(ee) The Registration Statement, the Prospectus, the Time of Sale Prospectus and any
preliminary prospectus comply, and any amendments or supplements thereto will comply, with any
applicable laws or regulations of foreign jurisdictions in which the Prospectus, the Time of Sale
Prospectus or any preliminary prospectus, as amended or supplemented, if applicable, are
distributed in connection with the Directed Share Program.
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(ff) No consent, approval, authorization or order of, or qualification with, any governmental
body or agency, other than those obtained, is required in connection with the offering of the
Directed Shares in any jurisdiction where the Directed Shares are being offered.
(gg) The Company has not offered, or caused Xxxxxx Xxxxxxx to offer, Shares to any person
pursuant to the Directed Share Program with the specific intent to unlawfully influence (i) a
customer or supplier of the Company to alter the customer’s or supplier’s level or type of business
with the Company, or (ii) a trade journalist or publication to write or publish favorable
information about the Company or its products.
Any certificate signed by any officer of the Company and delivered to the Underwriters or
counsel for the Underwriters in connection with the offering of the Shares shall be deemed a
representation and warranty by the Company, as to matters covered thereby, to each Underwriter.
2. Agreements to Sell and Purchase. The Company hereby agrees to sell to the several
Underwriters, and each Underwriter, upon the basis of the representations and warranties herein
contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to
purchase from the Company at $ a share (the “Purchase Price”) the respective numbers of
Firm Shares set forth in Schedule I hereto opposite its name.
On the basis of the representations and warranties contained in this Agreement, and subject to
its terms and conditions, the Company agrees to sell to the Underwriters the Additional Shares, and
the Underwriters shall have the right to purchase, severally and not jointly, up to 1,875,000
Additional Shares at the Purchase Price. You may exercise this right on behalf of the Underwriters
in whole or from time to time in part by giving written notice of each election to exercise the
option not later than 30 days after the date of this Agreement. Any exercise notice shall specify
the number of Additional Shares to be purchased by the Underwriters and the date on which such
shares are to be purchased. Each purchase date must be at least one business day after the written
notice is given and may not be earlier than the closing date for the Firm Shares nor later than ten
business days after the date of such notice. Additional Shares may be purchased as provided in
Section 4 hereof solely for the purpose of covering over-allotments made in connection with the
offering of the Firm Shares. On each day, if any, that Additional Shares are to be purchased (an
“Option Closing Date”), each Underwriter agrees, severally and not jointly, to purchase the number
of Additional Shares (subject to such adjustments to eliminate fractional shares as you may
determine) that bears the same proportion to the total number of Additional Shares to be purchased
on such Option Closing Date as the number of Firm Shares set forth in Schedule I hereto opposite
the name of such Underwriter bears to the total number of Firm Shares.
The Company hereby agrees that, without the prior written consent of the Managers on behalf of
the Underwriters, it will not, during the period ending 180 days after the date of the Prospectus,
(i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise
transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock or (ii) enter into any swap or
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other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Common Stock, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise
or (iii) file any registration statement with the Commission (other than a registration statement
on Form S-8) relating to the offering of any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock.
The restrictions contained in the preceding paragraph shall not apply to (A) the Shares to be
sold hereunder, (B) the issuance by the Company of shares of Common Stock upon the exercise of an
option or warrant or the conversion of a security outstanding on the date hereof of which the
Underwriters have been advised in writing, (C) grants, issuances or exercises under
any existing employee benefits plans or (D) the issuance of Common Stock in connection with
the acquisition of, or joint venture with, another company; provided that in the case of
any transfer, distribution or issuance pursuant to clause (D), (i) each distributee or recipient
shall sign and deliver a lock-up letter substantially in the form of Exhibit A hereto and (ii) each
distributee or the recipient shall not be required to, and shall not voluntarily, file a report
under the Exchange Act, reporting a reduction in beneficial ownership of shares of Common Stock
during the restricted period referred to in the preceding paragraph.
The Company also agrees and consents to the entry of stop transfer instructions with the
Company’s transfer agent and registrar against the transfer of shares of Common Stock except in
compliance with the foregoing restrictions.
3. Terms of Public Offering. The Company is advised by you that the Underwriters
propose to make a public offering of their respective portions of the Shares as soon after the
Registration Statement and this Agreement have become effective as in your judgment is advisable.
The Company is further advised by you that the Shares are to be offered to the public initially at
$ a share (the “Public Offering Price”) and to certain dealers selected by you at a price
that represents a concession not in excess of $ a share under the Public Offering Price.
4. Payment and Delivery. Payment for the Firm Shares shall be made to the Company in
Federal or other funds immediately available in New York City against delivery of such Firm Shares
for the respective accounts of the several Underwriters at 10:00 a.m., New York City time, on
, 2006, or at such other time or such other date, not later than , 2006, as
shall be designated in writing by you. The time and date of such payment are hereinafter referred
to as the “Closing Date.”
Payment for any Additional Shares shall be made to the Company in Federal or other funds
immediately available in New York City against delivery of such Additional Shares for the
respective accounts of the several Underwriters at 10:00 a.m., New York City time, on the date
specified in the corresponding notice described in Section 2 or at such other time on the same or
on such other date, in any event not later than , 2006, as shall be designated in
writing by you. The time and date of such payment are hereinafter referred to as the “Option
Closing Date.”
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The Firm Shares and Additional Shares shall be registered in such names and in such
denominations as you shall request in writing not later than two full business days prior to the
Closing Date or the applicable Option Closing Date, as the case may be. The Firm Shares and
Additional Shares shall be delivered to you on the Closing Date or an Option Closing Date, as the
case may be, for the respective accounts of the several Underwriters, with any transfer taxes
payable in connection with the transfer of the Shares to the Underwriters duly paid, against
payment of the Purchase Price therefor.
5. Agreements. The Company agrees with each Underwriter that:
(a) The Company will furnish to each Underwriter and to counsel for the Underwriters, without
charge, signed copies of the Registration Statement (including exhibits thereto) and will furnish
to the Underwriters during the period referred to in paragraph (c) below, as many copies of the
Time of Sale Prospectus, the Prospectus and any amendments and supplements thereto as they may
reasonably request no later than 5:00 p.m., New York City time, on the day immediately following
the date hereof.
(b) The Company will not make any amendment or supplement to the Time of Sale Prospectus or
the Prospectus without the prior written consent of the Managers (not to be unreasonably withheld
or delayed).
(c) The Company will furnish each Underwriter a copy of each proposed free writing prospectus
to be prepared by or on behalf of, used by, or referred to by the Company and shall not use or
refer to any proposed free writing prospectus to which the Underwriters reasonably object.
(d) The Company will not take any action that would result in an Underwriter or the Company
being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free
writing prospectus or Company information prepared by or on behalf of the Underwriter that the
Underwriter otherwise would not have been required to file thereunder.
(e) If the Time of Sale Prospectus is being used to solicit offers to buy the Shares at a time
when the Prospectus is not yet available to prospective purchasers and any event shall occur or
condition exist as a result of which, in the opinion of counsel for the Underwriters or counsel for
the Company, it is necessary to amend or supplement the Time of Sale Prospectus in order to make
the statements therein, in the light of the circumstances, not misleading, or if any event shall
occur or condition exist as a result of which, in the opinion of counsel for the Underwriters or
counsel for the Company, the Time of Sale Prospectus conflicts with the information contained in
the Registration Statement then on file, or if, in the opinion of counsel for the Underwriters or
counsel for the Company, it is necessary to amend or supplement the Time of Sale Prospectus to
comply with applicable law, the Company will promptly prepare, file with the Commission and
furnish, at its own expense, to the Underwriters and to any dealer upon request, either amendments
or supplements to the Time of Sale Prospectus so that the statements in the Time of
Sale Prospectus as so amended or supplemented will not, in the light of the circumstances when delivered to a
prospective purchaser, be misleading or so that the Time of
- 11 -
Sale Prospectus, as amended or
supplemented, will no longer conflict with the Registration Statement, or so that the Time of Sale
Prospectus, as amended or supplemented, will comply with applicable law.
(f) If at any time when a prospectus (or in lieu thereof the notice referred to in Rule 173(a)
under the Securities Act) relating to the Shares is required to be delivered under the Securities
Act, any event occurs as a result of which, in the opinion of counsel for the Underwriters and
counsel for the Company, it is necessary to amend or supplement the Prospectus, as then amended or
supplemented, (i) in order that the Prospectus would not include any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading,
or (ii) to comply with applicable law, the Company will promptly (A) notify the Underwriters
of any such event; (B) subject to the requirements of paragraph (b) of this Section 5, prepare an
amendment or supplement that will correct such statement or omission or effect such compliance; and
(C) supply any supplemented or amended Prospectus to the several Underwriters and counsel for the
Underwriters without charge in such quantities as they may reasonably request.
(g) The Company will arrange, if necessary, for the qualification of the Shares for sale by
the Underwriters under the laws of such jurisdictions as the Underwriters may designate and will
maintain such qualifications in effect so long as required for the sale of the Shares;
provided that in no event shall the Company be obligated to qualify to do business in any
jurisdiction where 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 Shares, in
any jurisdiction where it is not now so subject or to subject itself to taxation in excess of a
nominal amount in respect of doing business in any jurisdiction. The Company will promptly advise
the Underwriters of the receipt by the Company of any notification with respect to the suspension
of the qualification of the Shares for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose.
(h) The Company will not take, directly or indirectly, any action designed to or which has
constituted or which might reasonably be expected to cause or result, under the Exchange Act or
otherwise, in unlawful stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Shares.
(i) The Company agrees to pay the costs and expenses relating to the following matters: (i)
the preparation, printing (or reproduction), delivery (including postage, air freight charges and
charges for counting and packaging) and filing of copies of any preliminary prospectus, the Time of
Sale Prospectus, the Prospectus, any free writing prospectus prepared by or on behalf of, used by
or referred to by the Company and the Registration Statement, and all amendments or supplements to
any of the foregoing, as may, in each case, be reasonably requested for use in connection with the
offering and sale of the Shares; (ii) any stamp or transfer taxes in connection with the original
issuance, sale and delivery of the Shares; (iii) the printing (or reproduction) and delivery of
this Agreement and any blue sky memorandum delivered to investors in connection with the offering
of the Shares; (iv) any registration or qualification of the Shares for offer and sale under the
securities or blue sky laws of the several states and any other
- 12 -
jurisdictions specified pursuant to
Section 5(g) (including filing fees and the reasonable fees relating to such registration and
qualification and expenses of one counsel for the Underwriters in each jurisdiction in which such
registration and qualification is required); (v) all filing fees and the reasonable fees and
disbursements of one counsel to the Underwriters incurred in connection with the review and
qualification of the offering of the Shares by the National Association of Securities Dealers,
Inc.; (vi) all fees and expenses in connection with the preparation and filing of the registration
statement on Form 8-A relating to the Common Stock and all costs and expenses incident to listing
the Shares on the Nasdaq National Market, (vii) the cost of printing certificates representing the Shares; (viii) the
costs and charges of any transfer agent, registrar or depositary; (ix) the transportation and other
expenses (collectively, the “Road Show Expenses”) incurred by or on behalf of the representatives
of the Company in connection with presentations to prospective purchasers of the Shares; (x) the
fees and expenses of the Company’s accountants and the fees and
expenses of counsel (including local and special counsel) for the Company; (xi) all fees and
disbursements of counsel incurred by the Underwriters in connection with the Directed Share Program
and stamp duties, similar taxes or duties or other taxes, if any, incurred by the Underwriters in
connection with the Directed Share Program; and (xii) all other costs and expenses incident to the
performance by the Company of their obligations hereunder; provided, however, that the
Underwriters will pay one-half of the Road Show Expenses including one-half of the cost of any
chartered aircraft used in connection with presentations to prospective purchasers of the Shares.
(j) The Company will use its best efforts to cause the Registration Statement, if not
effective at the Execution Time, and any amendment thereof, to become effective. Prior to the
termination of the offering of the Shares, the Company will not file any amendment of the
Registration Statement or supplement to the Time of Sale Prospectus or Prospectus or any Rule
462(b) Registration Statement unless the Company has furnished you a copy for your review prior to
filing and will not file any such proposed amendment or supplement to which you reasonably object.
Subject to the foregoing sentence, if the Registration Statement has become or becomes effective
pursuant to Rule 430A, or filing of the Prospectus is otherwise required under Rule 424(b), the
Company will cause the Prospectus, properly completed, and any supplement thereto to be filed in a
form approved by the Managers with the Commission pursuant to the applicable paragraph of Rule
424(b) within the time period prescribed and will provide evidence satisfactory to the Managers of
such timely filing. The Company will promptly advise the Managers (1) when the Registration
Statement, if not effective at the Execution Time, shall have become effective, (2) when the
Prospectus, and any supplement thereto, shall have been filed (if required) with the Commission
pursuant to Rule 424(b) or when any Rule 462(b) Registration Statement shall have been filed with
the Commission, (3) when, prior to termination of the offering of the Shares, any amendment to the
Registration Statement shall have been filed or become effective, (4) of any request by the
Commission or its staff for any amendment of the Registration Statement, or any Rule 462(b)
Registration Statement, or for any supplement to the Prospectus or for any additional information,
(5) of the issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or the institution or threatening of any proceeding for that purpose and (6)
of the receipt by the Company of any notification with respect to the suspension of the
qualification of the Shares for sale in any jurisdiction or the
- 13 -
institution or threatening of any
proceeding for such purpose. The Company will use its best efforts to prevent the issuance of any
such stop order or the suspension of any such qualification and, if issued, to obtain as soon as
possible the withdrawal thereof.
(k) The Company will comply with all applicable securities and other applicable laws, rules
and regulations, including, without limitation, the Sarbanes Oxley Act, and use its best efforts to
cause the Company’s directors and officers, in their capacities as such, to comply with such laws,
rules and regulations, including, without limitation, the provisions of the Sarbanes Oxley Act.
(l) As soon as practicable, the Company will make generally available to its security holders
and to the Managers an earnings statement or statements of the Company and its subsidiaries which
will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 under the
Securities Act.
(m) The Company will use the net proceeds received by it from the sale of the Shares in the
manner specified in the Prospectus under “Use of Proceeds.”
(n) The Company will comply with all applicable securities and other laws, rules and
regulations in each jurisdiction in which the Directed Shares are offered in connection with the
Directed Share Program.
6. Covenants of the Underwriters. Each Underwriter severally covenants with the
Company not to take any action that would result in the Company being required to file with the
Commission under Rule 433(d) of the Securities Act a free writing prospectus or Company information
prepared by or on behalf of such Underwriter that otherwise would not be required to be filed by
the Company thereunder, but for the action of the Underwriter.
7. Conditions to the Obligations of the Underwriters. The obligations of the Company
to sell the Shares to the Underwriters and the several obligations of the Underwriters to purchase
and pay for the Shares shall be subject to the accuracy in all material respects of the
representations and warranties of the Company contained herein that are not qualified by
materiality and to the accuracy of the representations and warranties of the Company contained
herein that are qualified by materiality at the date hereof, the Closing Date, and any Option
Closing Date, if applicable, to the accuracy of the statements of the Company made in any
certificates pursuant to the provisions hereof, to the performance by the Company of their
respective obligations hereunder and to the following additional conditions:
(a) The Company shall have requested and caused (i) Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, counsel
for the Company, to furnish to the Underwriters their opinion and negative assurance statement,
each dated the Closing Date and, if applicable, any Option Closing Date, and addressed to the
Underwriters and substantially in the form of Exhibits B and C hereto; and (ii) Xxxxxxx X. Xxxxxx,
Vice President, General Counsel and Secretary of the Company, to furnish to the Underwriters his
opinion dated the Closing Date and, if applicable, any Option Closing Date, addressed to the
Underwriters and substantially in the form of Exhibit D hereto.
- 14 -
(b) The Underwriters shall have received from Shearman & Sterling LLP, counsel for the
Underwriters, such opinion or opinions, dated the Closing Date and, if applicable, any Option
Closing Date, and addressed to the Underwriters, with respect to the issuance and sale of the
Shares, the Time of Sale Prospectus, the Prospectus and Registration Statement and other related
matters as the Underwriters may reasonably require, and the Company shall have furnished to such
counsel such documents as they request for the purpose of enabling them to pass upon such matters.
(c) The Company shall have furnished to the Underwriters a certificate of the Company, signed
by (x) the Chief Executive Officer or the President and (y) the principal financial or accounting
officer of the Company, dated the Closing Date and, if applicable, any Option Closing Date, to the
effect that the signers of such certificate have carefully examined the Time of Sale Prospectus,
the Prospectus and Registration Statement, any amendment or supplement to the Time of Sale
Prospectus, the Prospectus and Registration Statement and this Agreement and that:
(i) the representations and warranties of the Company in this Agreement that
are not qualified by materiality are true and correct in all material respects, and
the representations and warranties of the Company in this Agreement that are
qualified by materiality are true and correct, in each case, on and as of the
Closing Date or any Option Closing Date, as the case may be, with the same effect as
if made on the Closing Date, or such Option Closing Date, as the case may be, and
the Company has complied with all the agreements and satisfied all the conditions on
its part to be performed or satisfied hereunder at or prior to the Closing Date, or
any Option Closing Date, as the case may be; and
(ii) since the date of the most recent financial statements included in the
Time of Sale Prospectus and the Registration Statement (exclusive of any amendment
or supplement thereto), there has been no material adverse change in the condition,
financial or otherwise, or in the earnings, business, properties or results of
operations of the Company and its subsidiaries, taken as a whole, from that set
forth in the Time of Sale Prospectus and the Prospectus (exclusive of any amendments
or supplements thereto subsequent to the date of this Agreement).
(d) At the date hereof and at the Closing Date, the Company shall have requested and caused
Ernst & Young LLP to furnish to the Underwriters a “comfort” letter, dated as of the date hereof,
and a bring-down “comfort” letter (i) on and dated as of the Closing Date and (ii) if applicable,
on and dated as of any Option Closing Date, each in form and substance satisfactory to the
Managers, confirming that it is an independent registered public accounting firm within the meaning
of the Exchange Act and the applicable published rules and regulations thereunder and confirming
certain matters with respect to the audited and unaudited financial statements and other financial
and accounting information contained in the Time of Sale Prospectus, the Prospectus and
Registration Statement; provided that the letter delivered on the Closing Date shall use a
“cut-off” date no more than three days prior to the date of such letter.
- 15 -
All references in this Section 7(d) to the Time of Sale Prospectus, the Prospectus and
Registration Statement include any amendment or supplement thereto at the date of the applicable
letter.
(e) The “lock-up” agreements, each substantially in the form of Exhibit A hereto, between you
and each executive officer and director of the Company and certain affiliates of First Reserve
Corporation, listed on Schedule IV hereto, relating to sales and certain other dispositions of
shares of Common Stock or certain other securities, delivered to you on or before the date hereof,
shall be in full force and effect on the Closing Date.
(f) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date
or, if applicable, any Option Closing Date:
(i) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a possible
change that does not indicate the direction of the possible change, in the rating
accorded any of the Company’s securities by any “nationally recognized
statistical rating organization,” as such term is defined for purposes of Rule
436(g)(2) under the Securities Act; and
(ii) there shall not have occurred any change, or any development involving a
prospective change, in the condition, financial or otherwise, or in the earnings,
business, properties or results of operations of the Company and its subsidiaries,
taken as a whole, from that set forth in the Time of Sale Prospectus (exclusive of
any amendments or supplements thereto subsequent to the date of this Agreement)
that, in your judgment, is material and adverse and that makes it, in your judgment,
impracticable to market the Shares on the terms and in the manner contemplated in
the Time of Sale Prospectus.
(g) Prior to the Closing Date, or, if applicable, any Option Closing Date, the Company shall
have furnished to the Underwriters such further information, certificates and documents as the
Underwriters may reasonably request.
(h) The
Shares shall have been listed, subject to notice of issuance, on the
Nasdaq National Market, and satisfactory evidence of such actions shall have been provided to the Managers.
(i) On the Closing Date, and, if applicable, any Option Closing Date, the Registration
Statement shall be effective; 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.
If any of the conditions specified in this Section 7 shall not have been fulfilled when and as
provided in this Agreement, or if any of the opinions, letters, evidence and certificates mentioned
above in this Section 7 shall not be reasonably satisfactory in form and
- 16 -
substance to the Managers
and counsel for the Underwriters, this Agreement and all obligations of the Underwriters hereunder
may be cancelled at, or at any time prior to, the Closing Date or, if applicable, any Option
Closing Date (solely with respect to the obligations of the Underwriters to purchase Additional
Shares on such date) by the Underwriters. Notice of such cancellation shall be given to the
Company in writing or by telephone or facsimile confirmed in writing.
The documents required to be delivered by this Section 7 will be delivered at the office of
counsel for the Underwriters, at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, on the Closing
Date.
8. Reimbursement of Expenses. If the sale of the Shares provided for herein is not
consummated because any condition to the obligations of the Underwriters set forth in Section 7
hereof is not satisfied, because of any termination pursuant to Section 12 hereof or because of any
refusal, inability or failure on the part of any Company to perform any agreement herein or comply
with any provision hereof other than by reason of a default by any of the Underwriters, including
any default pursuant to Section 11 hereof, the Company will reimburse the Underwriters severally
through the Managers on demand for all reasonable expenses (including reasonable fees and disbursements of counsel) that shall have been incurred by them
in connection with the proposed purchase and sale of the Shares.
9. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Underwriter, the directors, officers and Affiliates of each Underwriter and each
person who controls any Underwriter within the meaning of either the Securities Act or the Exchange
Act against any and all losses, claims, damages or liabilities, joint or several, to which they or
any of them may become subject under the Securities Act, the Exchange Act or other U.S. federal or
state statutory law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement,
any preliminary prospectus, the Time of Sale Prospectus, any issuer free writing prospectus as
defined in Rule 433(h) under the Securities Act, any Company information that the Company has
filed, or is required to file, pursuant to Rule 433(d) of the Securities Act (provided that the
Company’s indemnification obligation shall not extend to any free writing prospectus or Company
information required to be filed by the Company due to an Underwriter’s breach of Section 6) or the
Prospectus, or in any amendment or supplement thereto or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading, and (subject to the limitations set forth in the proviso to this sentence)
agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses
reasonably incurred by it in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the Company will not be liable
in any such case to the extent that any such loss, claim, damage or liability arises out of or is
based upon any such untrue statement or alleged untrue statement or omission or alleged omission
made in the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, any
issuer free writing prospectus as defined in Rule 433(h) under the Securities Act, any Company
information that the Company has filed, or is required to file, pursuant to Rule 433(d) of the
Securities Act, or
- 17 -
the Prospectus, or in any amendment or supplement thereto, in reliance upon and
in conformity with written information furnished to the Company by or on behalf of any Underwriter
through the Managers specifically for inclusion therein. This indemnity agreement will be in
addition to any liability that the Company may otherwise have. The Company shall not be liable
under this Section 9 to any indemnified party regarding any settlement or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought hereunder (whether or
not the indemnified parties are actual or potential parties to such claim or action) unless such
settlement, compromise or consent is consented to by the Company, which consent shall not be
unreasonably withheld.
(b) Each Underwriter severally, and not jointly, agrees to indemnify and hold harmless the
Company, its directors, officers and Affiliates, and each person who controls the Company within
the meaning of either the Securities Act or the Exchange Act, to the same extent as the foregoing
indemnity from the Company to each Underwriter, but only with reference to written information
relating to such Underwriter furnished to the Company by or on behalf of such Underwriter through
the Managers specifically for inclusion in the Registration Statement, any preliminary prospectus,
the Time of Sale Prospectus, any issuer free writing prospectus or the
Prospectus (or in any amendment or supplement thereto). This indemnity agreement will be in
addition to any liability that any Underwriter may otherwise have. The Company acknowledges that,
under the heading “Underwriting,” the table after the first paragraph, the thirteenth paragraph,
the fourteenth paragraph and the fifteenth paragraph in any preliminary prospectus, the Time of
Sale Prospectus and the Prospectus constitute the only information furnished in writing by or on
behalf of the Underwriters for inclusion in the Registration Statement, any preliminary prospectus,
the Time of Sale Prospectus, any issuer free writing prospectus or the Prospectus or in any
amendment or supplement thereto.
(c) Promptly after receipt by an indemnified party under this Section 9 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 9, notify the indemnifying party in writing
of the commencement thereof; but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the indemnifying party
of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel (including
local counsel) of the indemnifying party’s choice at the indemnifying party’s expense to represent
the indemnified party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and expenses of any separate
counsel, other than local counsel if not appointed by the indemnifying party, retained by the
indemnified party or parties except as set forth below); provided, however, that
such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the
indemnifying party’s election to appoint counsel (including local counsel) to represent the
indemnified party in an action, the indemnified party shall have the right to employ separate
counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs
- 18 -
and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of interest (based on
the advise of counsel to the indemnified person); (ii) such action includes both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably concluded (based
on the advise of counsel to the indemnified person) that there may be legal defenses available to
it and/or other indemnified parties that are different from or additional to those available to the
indemnifying party; (iii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action; or (iv) the indemnifying party shall authorize the
indemnified party to employ separate counsel at the expense of the indemnifying party. It is
understood and agreed that the indemnifying party shall not, in connection with any proceeding or
related proceeding in the same jurisdiction, be liable for the reasonable fees and expenses of more
than one separate firm (in addition to any local counsel) for all indemnified parties. Any such
separate firm for any Underwriter, its directors, officers and Affiliates and any control person
shall be designated in writing by the Managers and any such separate firm for any of the Company,
its directors, officers and Affiliates and any control person shall be designated in writing by the
Company. An indemnifying party will not, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the indemnified parties are
actual or potential parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability arising out of such
claim, action, suit or proceeding and does not include any statement as to, or any admission of,
fault, culpability or failure to act by or on behalf of any indemnified party.
(d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 9 is
unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company
and the Underwriters severally agree to contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in connection with investigating
or defending any loss, claim, damage, liability or action) (collectively, “Losses”) to which the
Company and one or more of the Underwriters may be subject in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand and by the Underwriters on
the other from the offering of the Shares; provided, however, that in no case shall
any Underwriter be responsible for any amount in excess of the purchase discount or commission
applicable to the Shares purchased by such Underwriter hereunder. If the allocation provided by
the immediately preceding sentence is unavailable for any reason, the Company and the Underwriters
severally shall contribute in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company on the one hand and the Underwriters on the
other in connection with the statements or omissions that resulted in such Losses, as well as any
other relevant equitable considerations. Benefits received by the Company shall be deemed to be
equal to the total net proceeds from the offering (before deducting expenses) received by them, and
benefits received by the Underwriters shall be deemed to be equal to the total purchase discounts
and commissions. Relative fault shall be determined by reference to, among other things, whether
any untrue or alleged untrue statement of a material fact or the omission or alleged
- 19 -
omission to
state a material fact relates to information provided by the Company on the one hand or the
Underwriters on the other, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission and any other
equitable considerations appropriate in the circumstance. The Company and the Underwriters agree
that it would not be just and equitable if the amount of such contribution were determined by pro
rata allocation or any other method of allocation that does not take account of the equitable
considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 9 are
several in proportion to their respective obligations and not joint. For purposes of this Section
9, each person who controls an Underwriter within the meaning of either the Securities Act or the
Exchange Act and each director, officer, employee, Affiliate and agent of an Underwriter shall have
the same rights to contribution as such Underwriter, and each person who controls the Company
within the meaning of either the Securities Act or the Exchange Act and each officer and director
of the Company shall have the same rights to contribution as the Company, subject in each case to
the applicable terms and conditions of this paragraph (d).
10. Directed Share Program Indemnification. (a) The Company agrees to indemnify and
hold harmless Xxxxxx Xxxxxxx, each person, if any, who controls Xxxxxx Xxxxxxx
within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange
Act and each affiliate of Xxxxxx Xxxxxxx within the meaning of Rule 405 of the Securities Act
(“Xxxxxx Xxxxxxx Entities”) from and against any and all losses, claims, damages and liabilities
(including, without limitation, any legal or other expenses reasonably incurred in connection with
defending or investigating any such action or claim) (i) caused by any untrue statement or alleged
untrue statement of a material fact contained in any material prepared by or with the consent of
the Company for distribution to Participants in connection with the Directed Share Program or
caused by any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading; (ii) caused by the failure of
any Participant to pay for and accept delivery of Directed Shares that the Participant agreed to
purchase; or (iii) related to, arising out of, or in connection with the Directed Share Program,
other than losses, claims, damages or liabilities (or expenses relating thereto) that are finally
judicially determined to have resulted from the bad faith or gross negligence of Xxxxxx Xxxxxxx
Entities.
(b) In case any proceeding (including any governmental investigation) shall be instituted
involving any Xxxxxx Xxxxxxx Entity in respect of which indemnity may be sought pursuant to Section
10(a), the Xxxxxx Xxxxxxx Entity seeking indemnity, shall promptly notify the Company in writing
and the Company, upon request of the Xxxxxx Xxxxxxx Entity, shall retain counsel reasonably
satisfactory to the Xxxxxx Xxxxxxx Entity to represent the Xxxxxx Xxxxxxx Entity and any others the
Company may designate in such proceeding and shall pay the fees and disbursements of such counsel
related to such proceeding. In any such proceeding, any Xxxxxx Xxxxxxx Entity shall have the right
to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of
such Xxxxxx Xxxxxxx Entity unless (i) the Company shall have agreed to the retention of such
counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include
both the Company and the Xxxxxx Xxxxxxx Entity and
- 20 -
representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests between them. The
Company shall not, in respect of the legal expenses of the Xxxxxx Xxxxxxx Entities in connection
with any proceeding or related proceedings 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 Xxxxxx Xxxxxxx
Entities. Any such separate firm for the Xxxxxx Xxxxxxx Entities shall be designated in writing by
Xxxxxx Xxxxxxx. The Company 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 Company agrees to indemnify the Xxxxxx Xxxxxxx Entities from and against any
loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time a Xxxxxx Xxxxxxx Entity shall have requested the Company to reimburse it
for fees and expenses of counsel as contemplated by the second and third sentences of this
paragraph, the Company agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days after receipt
by the Company of the aforesaid request and (ii) the Company shall not have reimbursed the Xxxxxx
Xxxxxxx Entity in accordance with such request prior to the date of such settlement. The Company
shall not, without the prior written consent of Xxxxxx Xxxxxxx, effect any settlement of any
pending or threatened proceeding in respect of which any Xxxxxx Xxxxxxx Entity is or could have
been a party and indemnity could have been sought hereunder by such Xxxxxx Xxxxxxx Entity, unless
such settlement includes an
unconditional release of the Xxxxxx Xxxxxxx Entities from all liability on claims that are the
subject matter of such proceeding.
(c) To the extent the indemnification provided for in Section 10(a) is unavailable to a Xxxxxx
Xxxxxxx Entity or insufficient in respect of any losses, claims, damages or liabilities referred to
therein, then the Company in lieu of indemnifying the Xxxxxx Xxxxxxx Entity thereunder, shall
contribute to the amount paid or payable by the Xxxxxx Xxxxxxx Entity 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 Xxxxxx Xxxxxxx Entities on the other hand
from the offering of the Directed Shares or (ii) if the allocation provided by clause 10(c)(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 10(c)(i) above but also the relative fault of the
Company on the one hand and of the Xxxxxx Xxxxxxx Entities on the other hand in connection with any
statements or omissions that resulted in such losses, claims, damages or liabilities, as well as
any other relevant equitable considerations. The relative benefits received by the Company on the
one hand and the Xxxxxx Xxxxxxx Entities on the other hand in connection with the offering of the
Directed Shares shall be deemed to be in the same respective proportions as the net proceeds from
the offering of the Directed Shares (before deducting expenses) and the total underwriting
discounts and commissions received by the Xxxxxx Xxxxxxx Entities for the Directed Shares, bear to
the aggregate Public Offering Price of the Directed Shares. If the loss, claim, damage or
liability is caused by an untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact, the relative fault of the Company on the one hand and
the Xxxxxx Xxxxxxx Entities on the other hand shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement or the omission or alleged omission relates
to information supplied by the Company or by the Xxxxxx Xxxxxxx Entities and
- 21 -
the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission.
(d) The Company and the Xxxxxx Xxxxxxx Entities agree that it would not be just or equitable
if contribution pursuant to this Section 10 were determined by pro rata allocation (even if the
Xxxxxx Xxxxxxx Entities 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 in Section 10(c).
The amount paid or payable by the Xxxxxx Xxxxxxx Entities as a result of the losses, claims,
damages and liabilities referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by the Xxxxxx Xxxxxxx Entities in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 10, no Xxxxxx Xxxxxxx Entity shall
be required to contribute any amount in excess of the amount by which the total price at which the
Directed Shares distributed to the public were offered to the public exceeds the amount of any
damages that such Xxxxxx Xxxxxxx Entity has otherwise been required to pay. The remedies provided
for in this Section 10 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.
(e) The indemnity and contribution provisions contained in this Section 10 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 Xxxxxx Xxxxxxx Entity or the Company, its
officers or directors or any person controlling the Company and (iii) acceptance of and
payment for any of the Directed Shares.
11. Default by an Underwriter. If any one or more Underwriters shall fail to purchase
and pay for any of the Shares agreed to be purchased by such Underwriter or Underwriters hereunder
and such failure to purchase shall constitute a default in the performance of its or their
obligations under this Agreement, the remaining Underwriters shall be obligated severally to take
up and pay for (in the respective proportions which the principal amount of Shares set forth
opposite their names in Schedule I hereto bears to the aggregate principal amount of Shares set
forth opposite the names of all the remaining Underwriters) the Shares which the defaulting
Underwriter or Underwriters agreed but failed to purchase; provided, however, that
in the event that the aggregate principal amount of Shares which the defaulting Underwriter or
Underwriters agreed but failed to purchase shall exceed 10% of the aggregate principal amount of
Shares set forth in Schedule I hereto, the Company shall be entitled to a further period of 36
hours within which to procure another party or parties reasonably satisfactory to the nondefaulting
Underwriter or Underwriters to purchase no less than the amount of such unpurchased Shares that
exceeds 10% of the principal amount thereof upon such terms herein set forth. If, however, the
Company shall not have completed such arrangements within 72 hours after such default and the
principal amount of such unpurchased Shares exceeds 10% of the principal amount of such Shares to
be purchased on such date, then this Agreement will terminate without liability to any
nondefaulting Underwriter or the Company. In the event of a default by any Underwriter as set
forth in this Section 11, the Closing Date shall be postponed for such period, not exceeding five
Business Days, as the Underwriters, the Company and its counsel shall determine in order that the
required changes in the Time of Sale Prospectus, the Prospectus or in any other documents or
- 22 -
arrangements may be effected. Nothing contained in this Agreement shall relieve any defaulting
Underwriter of its liability, if any, to the Company or any nondefaulting Underwriter for damages
occasioned by its default hereunder.
12. Termination. This Agreement shall be subject to termination in the absolute
discretion and in the sole judgment of the Managers, by notice given to the Company prior to
delivery of and payment for the Shares, if at any time prior to such time (i) trading generally
shall have been suspended or materially limited on, or by, as the case may be, any of the New York
Stock Exchange or the Nasdaq National Market, (ii) trading of any securities of the Company shall
have been suspended on any exchange or in any over-the-counter market, (iii) a material disruption
in securities settlement, payment or clearance services in the United States shall have occurred,
(iv) any moratorium on commercial banking activities shall have been declared by Federal or New
York State authorities or (v) there shall have occurred any outbreak or escalation of hostilities,
or any change in financial markets or any calamity or crisis that, in your sole judgment, is
material and adverse and which, singly or together with any other event specified in this clause
(v), makes it, in your sole judgment, impracticable or inadvisable to proceed with the offer, sale
or delivery of the Shares on the terms and in the manner contemplated in the Time of Sale
Prospectus or the Prospectus (exclusive of any amendment or supplement thereto).
13. Entire Agreement. (a) This Agreement, together with any contemporaneous written
agreements and any prior written agreements (to the extent not superseded by this Agreement) that
relate to the offering of the Shares, represents the entire
agreement among the Company and the Underwriters with respect to the preparation of any
preliminary prospectus, the Time of Sale Prospectus, the Prospectus, the conduct of the offering,
and the purchase and sale of the Shares.
(b) The Company acknowledges that in connection with the offering of the Shares: (i) the
Underwriters have acted at arm’s length from, are not agents of, and owe no fiduciary duties to,
the Company or any other person, (ii) the Underwriters owe the Company only those duties and
obligations set forth in this Agreement and prior or contemporaneous written agreements (to the
extent not superseded by this Agreement), if any, and (iii) the Underwriters may have interests
that differ from those of the Company. The Company agrees that it will not claim that the
Underwriters, or any of them, has rendered advisory services of any nature or respect, or owed or
owes a fiduciary or similar duty to the Company, in connection with such transaction or the process
leading thereto.
14. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company or its officers and of
the Underwriters set forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of the Underwriters or the Company or
any of the indemnified persons referred to in Sections 9 and 10 hereof, and will survive delivery
of and payment for the Shares. The provisions of Sections 8, 9 and 10 hereof shall survive the
termination or cancellation of this Agreement.
- 23 -
15. Notices. All communications hereunder will be in writing and effective only on
receipt, and, if sent to the Underwriters, will be mailed, delivered or telefaxed to the Xxxxxx
Xxxxxxx Equity Capital Markets Syndicate Desk (fax no.: (000) 000-0000) and confirmed to Xxxxxx
Xxxxxxx at 0000 Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, attention of General Counsel; or, if sent to
the Company, will be mailed, delivered or telefaxed to (000) 000-0000 and confirmed to it at One
Infinity Xxxxxxxxx Xxxxxx Xxxxx, Xxxxx 000, Xxxxxxxx Xxxxxxx, Xxxx, 00000, attention of General
Counsel.
16. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and the indemnified persons referred to in Sections
9 and 10 hereof and their respective successors, and no other person will have any right or
obligation hereunder. No purchaser of Shares from any Underwriters shall be deemed to be a
successor merely by reason of such purchase.
17. Applicable Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed within the
State of New York. The parties hereto each hereby waive any right to trial by jury in any action,
proceeding or counterclaim arising out of or relating to this Agreement.
18. Counterparts. This Agreement may be signed in one or more counterparts (which may
be delivered in original form or telecopier), each of which when so executed shall constitute an
original and all of which together shall constitute one and the same agreement.
19. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.
20. Definitions. The terms that follow, when used in this Agreement, shall have the
meanings indicated.
“Affiliate” shall have the meaning specified in Rule 501(b) of Regulation D.
“Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in The
City of New York.
“Code” shall mean the Internal Revenue Code of 1986, as amended.
“Commission” shall mean the Securities and Exchange Commission.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.
“Execution Time” shall mean the date and time that this Agreement is executed and delivered by
the parties hereto.
- 24 -
“Investment Company Act” shall mean the Investment Company Act of 1940, as amended, and the
rules and regulations of the Commission promulgated thereunder.
“NASD” shall mean the National Association of Securities Dealers, Inc.
“Regulation D” shall mean Regulation D under the Act.
“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.
- 25 -
If the foregoing is in accordance with your understanding of our agreement, please sign
and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a binding agreement among the Company and the several Underwriters.
| Very truly yours, | ||||||
| CHART INDUSTRIES, INC. | ||||||
| By: | ||||||
| Title: | ||||||
- 26 -
The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.
confirmed and accepted as of the
date first above written.
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
Natexis Bleichroeder Inc.
Xxxxxxx & Company International
Xxxxxx Xxxx Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
Natexis Bleichroeder Inc.
Xxxxxxx & Company International
Xxxxxx Xxxx Incorporated
By:
|
Xxxxxx Xxxxxxx & Co. Incorporated | |||
By: |
||||
| Title: | ||||
By:
|
Xxxxxx Brothers Inc. | |||
By: |
||||
| Title: | ||||
By:
|
UBS Securities LLC | |||
By: |
||||
| Title: | ||||
By: |
||||
| Title: | ||||
For themselves and the other several
Underwriters named in Schedule I
to the foregoing Agreement.
- 27 -
SCHEDULE I
| Number of Firm Shares | ||||
| Underwriter | To Be Purchased | |||
Xxxxxx Xxxxxxx & Co. Incorporated |
||||
Xxxxxx Brothers Inc. |
||||
UBS Securities LLC |
||||
Natexis Bleichroeder Inc. |
||||
Xxxxxxx & Company International |
||||
Xxxxxx Xxxx Incorporated |
||||
Total: |
12,500,000 | |||
SCHEDULE II
Pricing Information
SCHEDULE III
List of Significant Subsidiaries
Chart Inc.
Chart Energy & Chemicals, Inc.
Chart Biomedical Limited
Chart Ferox, a.s.
Chart Energy & Chemicals, Inc.
Chart Biomedical Limited
Chart Ferox, a.s.
SCHEDULE IV
List of Persons Subject to Lock-Up Agreements
First Reserve Fund X, L.P.
Xxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxxx
Xxxxx X. Xxxxxx, Xx
Xxxx X. Xxxxxx
Xxxxxx X. Xxxxx
Xxxxxx X. Xxxx
Xxxxxxx X. Xxxxxx
Xxx X. Xxxxx
Xxxxxxx X. Xxxxx
Xxxxxxx X. Day
Xxxxxx X. Xxxxxxx
Xxxxxx X. Xxxxxx, Xx. 2006 GRAT
Xxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxxx
Xxxxx X. Xxxxxx, Xx
Xxxx X. Xxxxxx
Xxxxxx X. Xxxxx
Xxxxxx X. Xxxx
Xxxxxxx X. Xxxxxx
Xxx X. Xxxxx
Xxxxxxx X. Xxxxx
Xxxxxxx X. Day
Xxxxxx X. Xxxxxxx
Xxxxxx X. Xxxxxx, Xx. 2006 GRAT
EXHIBIT A
[Form of Lock-up Letter]
___________, 2006
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
Natexis Bleichroeder Inc.
Xxxxxxx & Company International
Xxxxxx Xxxx Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
Natexis Bleichroeder Inc.
Xxxxxxx & Company International
Xxxxxx Xxxx Incorporated
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, XX 00000
0000 Xxxxxxxx
Xxx Xxxx, XX 00000
Dear Sirs and Mesdames:
The undersigned understands that Xxxxxx Xxxxxxx & Co. Incorporated (“Xxxxxx Xxxxxxx”), Xxxxxx
Brothers Inc. (“Xxxxxx”) and UBS Securities LLC (“UBS,” together with Xxxxxx Xxxxxxx and Xxxxxx,
the “Managers”) propose to enter into an Underwriting Agreement (the “Underwriting Agreement”) with
Chart Industries, Inc., a Delaware corporation (the “Company”), providing for the public offering
(the “Public Offering”) by the several underwriters named in Schedule I to the Underwriting
Agreement (the “Underwriters”), of ___shares (the “Shares”) of the Common Stock, par value
$0.01 of the Company (the “Common Stock”).
To induce the Underwriters that may participate in the Public Offering to continue their
efforts in connection with the Public Offering, the undersigned hereby agrees that, without the
prior written consent of the Managers on behalf of the Underwriters, it will not, during the period
commencing on the date hereof and ending 180 days after the date of the final prospectus relating
to the Public Offering (the “Prospectus”), (1) offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares
of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock
or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any
of the economic consequences of ownership of Common Stock, whether any such transaction described
in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities,
in cash or otherwise. The foregoing sentence shall not apply to transactions relating to (A)
shares of Common Stock or other securities acquired in open market transactions after the
completion of the offering of the Shares; provided that no filing by any party under the
Exchange Act shall be required or shall be voluntarily made in connection with subsequent sales of
Common Stock or other securities acquired in such open market transactions, (B) transfers of shares
of Common Stock or any security convertible, exchangeable for or
A-1
exercisable into Common Stock as a bona fide gift or gifts as a result of the operation of law
or testate or intestate succession, (C) transfers by the undersigned to a trust, partnership,
limited liability company or other entity, all of the beneficial interests of which are held,
directly or indirectly, by the undersigned or his or her spouse or children, or (D) distributions
of shares of Common Stock or any security convertible, exchangeable for or exercisable into Common
Stock to limited partners or stockholders of the undersigned; provided that in the case of
any transfer or distribution pursuant to clause (B), (C) or (D), (i) each donee or distributee
shall sign and deliver a lock-up letter substantially in the form of this letter and (ii) the
undersigned and recipient shall not be required to, and shall not voluntarily, file a report under
the Exchange Act, reporting a reduction in beneficial ownership of shares of Common Stock during
the restricted period referred to in the foregoing sentence. In addition, the undersigned agrees
that, without the prior written consent of the Managers on behalf of the Underwriters, it will not,
during the period commencing on the date hereof and ending 180 days after the date of the
Prospectus, make any demand for or exercise any right with respect to, the registration of any
shares of Common Stock or any security convertible into or exercisable or exchangeable for Common
Stock, unless the Managers have waived the lock-up restrictions
imposed on the Company in connection with the Public Offering. The undersigned also agrees and consents to the entry of stop transfer instructions with
the Company’s transfer agent and registrar against the transfer of the undersigned’s shares of
Common Stock except in compliance with the foregoing restrictions.
It is understood that, if the Company notifies the undersigned in writing that it does not
intend to proceed with the Public Offering, if the Underwriting Agreement does not become effective
on or before September 30, 2006, or if the Underwriting Agreement (other than the provisions
thereof that survive termination) shall terminate or be terminated prior to payment for and
delivery of the Shares, the undersigned will be released from the obligations under this agreement.
The undersigned understands that the Company and the Underwriters are relying upon this
agreement in proceeding toward consummation of the Public Offering. The undersigned further
understands that this agreement is irrevocable and shall be binding upon the undersigned’s heirs,
legal representatives, successors and assigns.
Whether or not the Public Offering actually occurs depends on a number of factors, including
market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement,
the terms of which are subject to negotiation between the Company and the Underwriters.
| Very truly yours, | ||||
A-2
EXHIBIT B
[_______], 2006
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
and the other several
Underwriters named in Schedule I
to the Underwriting Agreement
referred to below
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxxxxx Brothers Inc.
UBS Securities LLC
and the other several
Underwriters named in Schedule I
to the Underwriting Agreement
referred to below
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
We have acted as counsel to Chart Industries, Inc., a Delaware corporation (the “Company”), in
connection with the purchase by you of an aggregate of 12,500,000 shares (the “Shares”) of Common
Stock, par value $0.01 per share (the “Common Stock”), of the Company from the Company pursuant to
the Underwriting Agreement, dated [___], 2006, between you and the Company (the “Underwriting
Agreement”).
We have examined the Registration Statement on Form S-1 (File No. 333-133254) (the “Registration
Statement”) filed by the Company under the Securities Act of 1933, as amended (the “Securities
Act”), as it became effective under the Securities Act; the Company’s prospectus, dated
[___], 2006 (the “Prospectus”), filed by the Company pursuant to Rule 424(b) of the rules and
regulations of the Securities and Exchange Commission under the Securities Act; the Company’s
preliminary prospectus, dated [___], 2006 (the “Preliminary Prospectus”),
B-1
| Xxxxxx Xxxxxxx & Co. Incorporated | ||||
| Xxxxxx Brothers Inc. | ||||
| UBS Securities LLC, Et. Al. | -2- | [___], 2006 |
included in the Registration Statement immediately prior to the time the Registration
Statement became effective under the Securities Act; and the Underwriting Agreement. We also have
examined a specimen certificate representing the Common Stock of the Company. In addition, we have
examined, and have relied as to matters of fact upon, the documents delivered to you at the closing
and upon originals, or duplicates or certified or conformed copies, of such corporate and other
records, agreements, documents and other instruments and such certificates or comparable documents
of public officials and of officers and representatives of the Company, and have made such other
investigations, as we have deemed relevant and necessary in connection with the opinions
hereinafter set forth.
In such examination, we have assumed the genuineness of all signatures, the legal capacity of
natural persons, the authenticity of all documents submitted to us as originals, the conformity to
original documents of all documents submitted to us as duplicates or certified or conformed copies
and the authenticity of the originals of such latter documents.
Based upon the foregoing, and subject to the qualifications, assumptions and limitations
stated herein, we are of the opinion that:
1 The Company has been duly incorporated and is validly existing and in good standing
as a corporation under the law of the State of Delaware and has full corporate power and
authority to conduct its business as described in the Registration Statement, the
Preliminary Prospectus and the Prospectus.
2 The Shares have been duly authorized by the Company and, upon payment and delivery in
accordance with the Underwriting Agreement, the Shares will be, validly issued, fully paid
and nonassessable.
3. The statements made in the Preliminary Prospectus and the Prospectus under
the caption “Description of Capital Stock”, insofar as they purport to constitute
summaries of the terms of the Common Stock (including the Shares), constitute
accurate summaries of the terms of such Common Stock in all
B-2
Xxxxxx Xxxxxxx & Co. Incorporated |
||||
Xxxxxx Brothers Inc. |
||||
UBS Securities LLC, Et. Al.
|
-3- | [ ], 2006 |
material respects.
4. The statements made in the Preliminary Prospectus and the
Prospectus under the caption “Certain United States Federal Income and Estate Tax
Consequences to Non-U.S. Holders,” insofar as they purport to constitute summaries
of matters of United States federal tax law and regulations or legal conclusions
with respect thereto, constitute accurate summaries of the matters described
therein in all material respects.
5. The Underwriting Agreement has been duly authorized, executed and delivered
by the Company.
6. The issue and sale of the Shares by the Company and the execution, delivery
and performance by the Company of the Underwriting Agreement will not breach or
result in a default under any indenture, mortgage, deed of trust, loan agreement or
other agreement or instrument filed as an exhibit to the Registration Statement,
nor will such action violate the Amended and Restated Certificate of Incorporation
or Amended and Restated By-laws of the Company or any federal or New York statute
or the Delaware General Corporation Law or any rule or regulation that has been
issued pursuant to any federal or New York statute or the Delaware General
Corporation Law or any order known to us issued pursuant to any federal or New York
statute or the Delaware General Corporation Law by any court or governmental agency
or body having jurisdiction over the Company or any of its subsidiaries or any of
their properties.
7. No consent, approval, authorization, order, registration or qualification
of or with any federal or New York governmental agency or body or any Delaware
governmental agency or body acting pursuant to the Delaware General Corporation Law
or, to our knowledge, any federal or New York court or any Delaware court acting
pursuant to the Delaware General Corporation Law is required for the issue and sale
of the Shares by the Company and the compliance by the Company with all of the
provisions of the Underwriting Agreement, except for the registration under the
Securities Act and the Securities Exchange Act of 1934, as amended, of the Shares,
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 Shares by the Underwriters.
8. The Registration Statement has become effective under the Securities Act
and the Prospectus was filed on [___], 2006 pursuant to Rule 424(b) of the rules
and regulations of the Commission under the Securities Act and, to our knowledge,
no stop order suspending the effectiveness of the Registration Statement has been
issued or proceeding for that purpose has been instituted or threatened by the
Commission.
B-3
Xxxxxx Xxxxxxx & Co. Incorporated |
||||
Xxxxxx Brothers Inc. |
||||
UBS Securities LLC, Et. Al.
|
-4- | [ ], 2006 |
9. There are no preemptive rights under federal or New York law or under the
Delaware General Corporation Law to subscribe for or purchase shares of the Common
Stock. Except as disclosed in the Preliminary Prospectus and the Prospectus, there
are no preemptive or other rights to subscribe for or purchase, nor any restriction
upon the voting or transfer of, any shares of the Common Stock pursuant to the
Company’s Amended and Restated Certificate of Incorporation or Amended and Restated
By-laws or any agreement or other instrument filed as an exhibit to the
Registration Statement.
10. The Company is not, after giving effect to the offering and sale of Shares
and the application of proceeds thereof as described in the Prospectus will not be,
an “investment company” within the meaning of and subject to regulation under the
Investment Company Act of 1940, as amended.
We do not express any opinion herein concerning any law other than the law of the State of New
York, the federal law of the United States and the Delaware General Corporation Law.
This opinion letter is rendered to you in connection with the above-described transaction.
This opinion letter may not be relied upon by you for any other purpose, or relied upon by, or
furnished to, any other person, firm or corporation without our prior written consent, except that
National City Bank, as the transfer agent for the Company, may rely
upon paragraphs 2, 7 and 8
above, subject to the qualifications and limitation relating thereto.
| Very truly yours, XXXXXXX XXXXXXX & XXXXXXXX LLP |
||||
B-4
EXHIBIT C
[ __], 2006
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
and the other several
Underwriters named in Schedule I
to the Underwriting Agreement
referred to below
Xxxxxx Brothers Inc.
UBS Securities LLC
and the other several
Underwriters named in Schedule I
to the Underwriting Agreement
referred to below
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
We have acted as counsel to Chart Industries, Inc., a Delaware corporation (the “Company”), in
connection with the purchase by you of an aggregate of 12,500,000 shares of Common Stock, par value
$0.01 per share (the “Shares”), of the Company, pursuant to the Underwriting Agreement dated
___, 2006 between the Company and you (the “Underwriting Agreement”).
We have not independently verified the accuracy, completeness or fairness of the statements
made or included in the Registration Statement on Form S-1 (File No. 333-133254) (the “Registration
Statement”) filed by the Company under the Securities Act of 1933, as amended (the “Securities
Act”), the Company’s prospectus, dated ___, 2006 (the
C-1
Xxxxxx Xxxxxxx & Co. Incorporated |
||||
Xxxxxx Brothers Inc. |
||||
UBS Securities LLC, Et. Al.
|
[ ], 2006 |
“Prospectus”), filed by the Company pursuant to Rule 424(b) of the rules and regulations of
the Securities and Exchange Commission (the “Commission”) under the Securities Act, the Company’s
preliminary prospectus, dated ___, 2006 (the “Preliminary Prospectus”), included in the
Registration Statement immediately prior to the time the Registration Statement became effective
under the Securities Act or the pricing information listed on Schedule II to the Underwriting
Agreement (such scheduled pricing information, together with the Preliminary Prospectus, the
“Pricing Disclosure Package”), and we take no responsibility therefor, except as and to the extent
set forth in numbered paragraph 3 of our opinion letter to you dated the date hereof.
In connection with, and under the circumstances applicable to, the offering of the Shares, we
participated in conferences with certain officers and employees of the Company, representatives of
Ernst & Young LLP, counsel to the Company, your representatives and your counsel in the course of
the preparation by the Company of the Registration Statement, the Pricing Disclosure Package and
the Prospectus and also reviewed certain corporate and other records and documents furnished to us
by the Company, as well as the documents delivered to you at the closing. Certain of such
corporate and other records and documents were not in English or were governed by the laws of
jurisdictions other than the United States and, accordingly, we necessarily relied upon directors,
officers and employees of the Company and its subsidiaries and other persons in evaluating such
corporate and other records and documents.
C-2
Xxxxxx Xxxxxxx & Co. Incorporated |
||||
Xxxxxx Brothers Inc. |
||||
UBS Securities LLC, Et. Al.
|
[ ], 2006 |
Based upon our review of the Registration Statement, the Pricing Disclosure Package and the
Prospectus, our participation in the conferences referred to above, our review of the corporate and
other records and documents as described above, as well as our understanding of the U.S. federal
securities laws and the experience we have gained in our practice thereunder:
| (i) | we advise you that the Registration Statement, as of the date it became effective under the Securities Act, and the Prospectus, as of ___, 2006, appeared, on its face, to be appropriately responsive, in all material respects, to the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder, except that in each case we express no view with respect to the financial statements or other financial or statistical data contained in, or omitted from, the Registration Statement or the Prospectus; and | ||
| (ii) | nothing has come to our attention that causes us to believe that (a) the Registration Statement, as of the date it became effective under the Securities Act, contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading, (b) the Pricing Disclosure Package, as of pm on ___, 2006, 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 the circumstances under which they were made, not |
C-3
Xxxxxx Xxxxxxx & Co. Incorporated |
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Xxxxxx Brothers Inc. |
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UBS Securities LLC, Et. Al.
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[ ], 2006 |
| misleading, or (c) the Prospectus, as of ___, 2006 or as of the date hereof, contained or contains any untrue statement of a material fact or omitted or omits 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, except that we express no belief in any of clauses (a), (b) or (c) above with respect to the financial statements or other financial or statistical data contained in, or omitted from, the Registration Statement, the Pricing Disclosure Package or the Prospectus. |
This letter is delivered to you in connection with the above-described transaction. This
letter may not be relied upon by you for any other purpose, or relied upon by, or furnished to, any
other person, firm or corporation.
| Very truly yours, XXXXXXX XXXXXXX & XXXXXXXX LLP |
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C-4
EXHIBIT D
[________], 2006
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxxx Brothers Inc.
UBS Securities LLC
and the other several
Underwriters named in Schedule I
To the Underwriting Agreement
Referred to below
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxxxxx Brothers Inc.
UBS Securities LLC
and the other several
Underwriters named in Schedule I
To the Underwriting Agreement
Referred to below
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: Chart Industries, Inc.
Ladies and Gentlemen:
I am the Vice President, General Counsel and Secretary of Chart Industries, Inc., a Delaware
corporation (the “Company”), and have acted as counsel for the Company and those direct and
indirect subsidiaries of the Company listed on Annex I attached hereto (collectively, the
“Significant Subsidiaries”) in connection with the purchase by you of an aggregate of
12,500,000 shares (the “Shares”) of the Company’s Common Stock, par value $0.01 per share
(the “Common Stock”), from the Company pursuant to the Underwriting Agreement, dated
[___], 2006, between you and the Company (the “Underwriting Agreement”). Unless
otherwise defined herein, terms defined in the Underwriting Agreement are used herein with the same
meaning.
This opinion is delivered to you pursuant to Section 7(a)(ii) of the Underwriting Agreement.
Concurrent with the delivery of this opinion Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, special counsel to the
Company is delivering to you separate opinions to which you are referred for further information
regarding legal matters arising under the Underwriting Agreement.
In arriving at the opinions express below, I or the attorneys, paralegals and other
professionals under my supervision or direction (with whom I have consulted) have examined and
relied on the following documents:
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Xxxxxx Brothers Inc. |
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UBS Securities LLC, Et. Al.
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(i) an executed copy of the Underwriting Agreement;
(ii) copies of each of (i) the respective certificates of incorporation or similar
organizational documents of the Company and the Significant
Subsidiaries (other than Chart Biomedical Limited and Chart Ferox
a.s. (collectively, the “Foreign Subsidiaries”)), each as amended to
the date of this letter and certified by the Secretary of State of Delaware and (ii) the
respective bylaws or similar organizational documents of the Company and the Significant
Subsidiaries (other than the Foreign Subsidiaries), each as amended to the date of this letter and certified by an officer of the
Company to be true and correct on the date of this letter (together, the “Organizational
Documents”);
(iii) the Registration Statement on Form S-1 (File No. 333-133254) (the
“Registration Statement”) filed by the Company under the Securities Act of 1933, as
amended (the “Securities Act”), as it became effective under the Securities Act;
(iv) the Company’s preliminary prospectus, dated [___], 2006 (the “Preliminary
Prospectus”), included in the Registration Statement immediately prior to the time the
Registration Statement became effective under the Securities Act;
(v) the Company’s prospectus, dated [___], 2006 (the “Prospectus”), filed by
the Company pursuant to Rule 424(b) of the rules and regulations of the Securities and
Exchange Commission under the Securities Act;
(vi) the pricing information included on Schedule A hereto (such scheduled pricing
information, together with the Preliminary Prospectus, the “Pricing Disclosure
Package”); and
(vii) such other documents as I or the attorneys, paralegals and other professionals
under my supervision or direction (with whom I have consulted) have deemed necessary or
appropriate as a basis for the opinions set forth below.
In addition, I or the attorneys, paralegals or other professionals under my supervision or
direction (with whom I have consulted) have examined and relied upon the originals, or duplicates
or certified or conformed copies, of all such corporate records, agreements, documents and other
instruments and such certificates or comparable documents of public officials and of officers and
representatives of the Company and its subsidiaries and have made such other investigations of fact
and law, as I have deemed relevant and necessary in connection with the opinions hereinafter set
forth.
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Xxxxxx Brothers Inc. |
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UBS Securities LLC, Et. Al.
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[ ], 2006 |
In such examination, I have assumed the genuineness of all signatures, the legal capacity of
natural persons, the authenticity of all documents submitted to me as originals, the conformity to
original documents of all documents submitted to me as duplicates or
certified or conformed or translated copies
and the authenticity of the originals of such latter documents.
My
opinion set forth in paragraph 6 below with respect to the ownership of the outstanding
shares of capital stock of the Significant Subsidiaries is based solely upon my review of the stock
ledgers of the Significant Subsidiaries or such comparable documents
of the Foreign Subsidiaries certified to me by representatives of the
Foreign Subsidiaries. The identification of the outstanding shares of the
Company’s Common Stock, for purposes of my opinion in paragraph 5 below, is based solely upon my
review of the stock ledgers of the Company.
Based upon the foregoing and subject to the qualifications and limitations stated herein, I am
of the opinion that:
1. The Company has the power and authority to own or lease, as the case may be, and to
operate its properties and conduct its business as described in the Registration Statement,
the Preliminary Prospectus and the Prospectus.
2. The Company has the corporate power and authority to execute, deliver and perform
the Underwriting Agreement and has taken all corporate action necessary to authorize the
execution, delivery and performance of the Underwriting Agreement.
3. The Company is duly qualified to do business as a foreign corporation and is in good
standing under the laws of each jurisdiction which requires such qualification, except to
the extent that the failure to be so qualified or in good standing would not reasonably be
expected to have a Material Adverse Effect.
4.
Each Significant Subsidiary (other than the Foreign Subsidiaries, as
to which I express no opinion) has been duly incorporated, is
validly existing as a corporation in good standing under the laws of the State of Delaware,
has the corporate power and authority to own or lease its property and to conduct its
business as described in the Registration Statement, the Preliminary Prospectus and the
Prospectus and is duly qualified to transact business and is in good standing in each
jurisdiction which requires such qualification, except to the extent that the failure to be
so qualified or be in good standing would not reasonably be expected to have a Material
Adverse Effect.
5. All shares of the Company’s Common Stock outstanding prior to the issuance of the
Shares have been duly authorized and validly issued and are fully paid and non-assessable.
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Xxxxxx Brothers Inc. |
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UBS Securities LLC, Et. Al.
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6.
All the outstanding shares of capital stock of each Significant Subsidiary
(other than the Foreign Subsidiaries, as to which I express no
opinion) have been duly authorized, validly issued and are fully paid and
non-assessable, and all the outstanding shares of capital stock of each Significant
Subsidiary other than the Chart Ferox a.s., and approximately 95.7%
of the outstanding shares of capital stock of Chart Ferox a.s. are owned by the
Company either directly or through wholly owned subsidiaries, and
such ownership is, to my knowledge, free and clear of any security interest, claim, lien or encumbrance (other than liens,
encumbrances and restrictions imposed in favor of the lenders under the Company’s senior
secured credit facility described in the Preliminary Prospectus and the Prospectus or
permitted thereunder).
7. The Company’s authorized equity capitalization is as set forth in the Preliminary
Prospectus and the Prospectus.
8. To my knowledge, there are no pending or threatened actions, suits or proceedings by
or before any court or governmental agency, authority or body or any arbitrator to which the
Company or any of its subsidiaries is a party or to which any of the properties of the
Company or any of its subsidiaries is subject that are required to be described in the
Registration Statement, the Preliminary Prospectus or the Prospectus and are not so
described.
9. None of the execution and delivery of the Underwriting Agreement or the offering and
sale of the Shares will, as of the date of this letter and after giving effect to the
offering and sale of the Shares and the application of the proceeds thereof as described in
the Preliminary Prospectus and the Prospectus, conflict with, or result in a breach or
violation or imposition of any lien, charge or encumbrance upon any property or assets of
the Company or any of its subsidiaries pursuant to, (i) the Organizational Documents of the
Company, (ii) any Applicable Contract, or (iii) any Applicable Law, other than in the case
of clauses (ii) and (iii), such conflicts, breaches, violations, liens, charges or
encumbrances that would not reasonably be expected to have a Material Adverse Effect, and
provided that I express no opinion, in the case of clause (ii), with respect to financial
ratios or tests or any aspect of the financial condition or results of operations of the
Company to the extent the determination of such breach or violation requires quantitative
determination.
10. The use of facsimile signatures, affixed in the name and on behalf of National City
Bank, as transfer agent and registrar, as applicable, on stock certificates evidencing
shares of the Company’s Common Stock (i) is permitted under the General Corporation Law of
the State of Delaware (the “DGCL”); (ii) will be valid and effective under DGCL; and
(iii) is not inconsistent with any provision of the Company’s Amended
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Xxxxxx Brothers Inc. |
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UBS Securities LLC, Et. Al.
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[ ], 2006 |
and Restated Certificate of Incorporation or Amended and Restated Bylaws, as amended to
date.
As used in this letter, (i) “Applicable Laws” means those laws, rules or regulations
of the United States of America and the State of Ohio, which a lawyer in the State of Ohio
exercising customary professional diligence would reasonably be expected to recognize as being
applicable to transactions of the type contemplated by the Underwriting Agreement, but excluding
any securities laws of any jurisdiction and the rules and regulations of the National Association
of Securities Dealers, Inc. and (ii) “Applicable Contract” means any agreement or
instrument to which the Company or any of its subsidiaries is a party which are filed as an exhibit
to the Registration Statement pursuant to Item 601(b) (4) or (10) of Regulation S-K.
I have not independently verified or checked the accuracy, completeness or fairness of the
statements made or included in the Registration Statement, the
Preliminary Prospectus, the Pricing Disclosure Package and the
Prospectus and I take no responsibility therefor.
In connection with, and under the circumstances applicable to the offering and sale of the
Shares, I or attorneys, paralegals and other professionals under my supervision or direction (with
whom I have consulted) have participated in conference calls and meetings with certain officers and
employees of the Company and its subsidiaries, representatives of Ernst & Young LLP, outside
counsel to the Company and its subsidiaries and your counsel in the course of the preparation by
the Company of the Registration Statement, the Pricing Disclosure
Package and the
Prospectus. I or attorneys, paralegals and other professionals under my supervision or direction
(with whom I have consulted) also have reviewed certain records and documents of the Company and
its subsidiaries furnished to me, as well as the documents delivered
to you at the closing. Certain of such records and documents were not
in English or were governed by the laws of jurisdictions other than
the United States and, accordingly, I necessarily relied upon
directors, officers and employees of the Company and its subsidiaries
and other persons in evaluating such records and documents. Based
upon our review of the Registration Statement, the Pricing Disclosure
package and the Prospectus, our
participation in the conference calls and meetings referred to above and our review of the records
and documents as described above, no facts have come to my attention that cause me to believe that
(i) the Registration Statement, at the time it became effective
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 in order to
make the statements therein not misleading, (ii) the Pricing Disclosure Package, as of [___] p.m.
on [___], 2006, contained any 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 or (iii) the Prospectus, as of its date or
as of the date of this letter, contained or contains any 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, except that I express no
view or belief in any of clauses (i), (ii) or (iii) above with respect to the financial statements, schedules or other financial or
statistical data, including any pro
D-5
Xxxxxx Xxxxxxx & Co. Incorporated |
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Xxxxxx Brothers Inc. |
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UBS Securities LLC, Et. Al.
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[ ], 2006 |
forma financial information, contained in or omitted from the Registration Statement, the Pricing Disclosure Package and the Prospectus.
I am admitted to practice law in the State of Ohio, and do not express any opinion herein
concerning any law other than the laws of the United States of America, the State of Ohio and the
DGCL. To the extent that any of my opinions set forth above are
governed by the laws of any jurisdiction other than the State of Ohio, the DGCL or applicable federal law, I have assumed the laws of all such jurisdictions which
may govern the Underwriting Agreement or otherwise are identical in all respects to the laws of the
State of Ohio.
This letter is rendered only to the addressees hereof and is solely for their benefit in
connection with the above-described transaction. This letter may not be relied upon, used,
circulated, quoted or otherwise referred to by you for any other purpose, or relied upon by, or
furnished to, any other person, firm or corporation without my prior written consent, except that
National City Bank, as transfer agent and registrar of the Company, may rely upon the opinions set
forth in paragraphs 5 and 10 above, subject to the assumptions, qualifications and limitations set
forth herein relating to such opinions.
| Very truly yours, Xxxxxxx X. Xxxxxx |
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D-6
ANNEX I
Significant Subsidiaries
Chart Inc.
Chart Energy & Chemicals, Inc.
Chart Biomedical Limited
Chart Ferox a.s.
Chart Energy & Chemicals, Inc.
Chart Biomedical Limited
Chart Ferox a.s.
D-7
