Exhibit 1.1
EXECUTION COPY
Snap-on Incorporated
$300,000,000
$150,000,000 5.500%
Notes Due 2017
$150,000,000 Floating
Rate Notes Due 2010
Underwriting Agreement
New York, New York
January 9, 2007
To the
Representatives named in
Schedule I hereto of the several
Underwriters named in
Schedule II hereto
Ladies and Gentlemen:
Snap-on
Incorporated, a corporation organized under the laws of Delaware (the
“Company”), proposes to sell to the several underwriters named in
Schedule II hereto (the “Underwriters”), for whom you (the
“Representatives”) are acting as representatives, the principal amount of its
securities identified in Schedule I hereto (the “Securities”), to be issued
under an indenture (the “Indenture”) dated as of January 8, 2007, between the
Company and U.S. Bank National Association, as trustee (the “Trustee”). To the
extent there are no additional Underwriters listed on Schedule II other than you, the
term Representatives as used herein shall mean you, as Underwriters, and the terms
Representatives and Underwriters shall mean either the singular or plural as the context
requires. Any reference herein to the Registration Statement, the Base Prospectus, any
Preliminary Prospectus or the Final Prospectus shall be deemed to refer to and include the
documents incorporated by reference therein pursuant to Item 12 of Form S-3
which were filed under the Exchange Act on or before the Effective Date of the
Registration Statement or the issue date of the Base Prospectus, any Preliminary
Prospectus or the Final Prospectus, as the case may be; and any reference herein to the
terms “amend”, “amendment” or “supplement” with respect to
the Registration Statement, the Base Prospectus, any Preliminary Prospectus or the Final
Prospectus shall be deemed to refer to and include the filing of any document under the
Exchange Act after the Effective Date of the Registration Statement or the issue date of
the Base Prospectus, any Preliminary Prospectus or the Final Prospectus, as the case may
be, deemed to be incorporated therein by reference. Certain terms used herein are defined
in Section 20 hereof.
1.
Representations and Warranties. The Company represents and warrants to,
and agrees with, each Underwriter as set forth below in this Section 1.
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(a)
The Company meets the requirements for use of Form S-3 under the
Securities Act and has prepared and filed with the Commission an automatic
shelf registration statement, as defined in Rule 405 (the file number of which
is set forth in Schedule I hereto) on Form S-3, including a related
Base Prospectus, for registration under the Securities Act of the offering and
sale of the Securities. Such Registration Statement, including any amendments
thereto filed prior to the Execution Time, became effective upon filing. The
Company may have filed with the Commission, as part of an amendment to the
Registration Statement or pursuant to Rule 424(b), one or more preliminary
prospectus supplements relating to the Securities, each of which has previously
been furnished to you. The Company will file with the Commission a final
prospectus supplement relating to the Securities in accordance with Rule
424(b). As filed, such final prospectus supplement shall contain all
information required by the Securities Act and the rules thereunder and, except
to the extent the Representatives shall agree in writing to a modification,
shall be in all substantive respects in the form furnished to you prior to the
Execution Time or, to the extent not completed at the Execution Time, shall
contain only such specific additional information and other changes (beyond
that contained in the Base Prospectus and any Preliminary Prospectus) as the
Company has advised you, prior to the Execution Time, will be included or made
therein. The Registration Statement, at the Execution Time, meets the
requirements set forth in Rule 415(a)(1)(x).
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(b) On
each Effective Date, the Registration Statement did, and when the Final
Prospectus is first filed in accordance with Rule 424(b) and on the
Closing Date (as defined herein), the Final Prospectus (and any supplement
thereto) will, comply in all material respects with the applicable requirements
of the Securities Act, the Exchange Act and the Trust Indenture Act and the
respective rules thereunder; on each Effective Date and at the Execution Time,
the Registration Statement did not and will not contain any untrue statement of
a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein not misleading; on
the Effective Date and on the Closing Date the Indenture did or will comply in
all material respects with the applicable requirements of the Trust Indenture
Act and the rules thereunder; and on the date of any filing pursuant to
Rule 424(b) and on the Closing Date, the Final Prospectus (together with
any supplement thereto) will not include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that the Company makes no
representations or warranties as to (i) that part of the Registration
Statement which shall constitute the Statement of Eligibility and Qualification
(Form T-1) under the Trust Indenture Act of the Trustee or (ii) the
information contained in or omitted from the Registration Statement or the
Final Prospectus (or any supplement thereto) in reliance upon and in conformity
with information furnished in writing to the Company by or on behalf of any
Underwriter through the Representatives specifically for inclusion in the
Registration Statement or the Final Prospectus (or any supplement thereto), it
being understood and agreed that the only such information furnished by or on
behalf of any Underwriter consists of the information described as such in
Section 8 hereof. |
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(c)
As of the Execution Time, the Disclosure Package, as amended or supplemented as
of the Execution Time, does not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. The preceding sentence does not apply to information contained in
or omitted from the Disclosure Package in reliance upon and in conformity with
information furnished in writing to the Company by any Underwriter through the
Representatives specifically for use therein, it being understood and agreed
that the only such information furnished by or on behalf of any Underwriter
consists of the information described as such in Section 8 hereof.
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(d) Since the date of the most recent financial statements of the Company included
or incorporated by reference in the Registration Statement, the Disclosure
Package and the Prospectus, (i) there has not been any material change in the
capital stock of the Company, any change in the long-term debt of the Company
or any of its subsidiaries or development that in either case would reasonably
be expected to have a Material Adverse Effect; (ii) neither the Company nor any
of its subsidiaries has entered into any transaction or agreement that is
material to the Company and its subsidiaries taken as a whole or incurred any
liability or obligation, direct or contingent, that is material to the Company
and its subsidiaries taken as a whole; and (iii) neither the Company nor any of
its subsidiaries has sustained any loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance,
or from any labor disturbance or dispute or any action, order or decree of any
court or arbitrator or governmental or regulatory authority that is material to
the Company and its subsidiaries, taken as a whole, except in each case as
otherwise disclosed in the Registration Statement, the Disclosure Package and
the Prospectus.
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(e) (i) At the time of filing the Registration Statement, (ii) at the time of the
most recent amendment thereto for the purposes of complying with Section
10(a)(3) of the Securities Act (whether such amendment was by post-effective
amendment, incorporated report filed pursuant to Sections 13 or 15(d) of
the Exchange Act or form of prospectus), (iii) at the time the Company
or any person acting on its behalf (within the meaning, for this clause only,
of Rule 163(c)) made any offer relating to the Securities in reliance on
the exemption in Rule 163, and (iv) at the Execution Time, the Company was, is
or will be, as the case may be, a Well-Known Seasoned Issuer.
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(f) (i) At the earliest time after the filing of the Registration Statement that
the Company or another offering participant made a bona fide offer
(within the meaning of Rule 164(h)(2)) of the Securities and (ii) as of the
Execution Time (with such date being used as the determination date for
purposes of this clause (ii)), the Company was not and is not an Ineligible
Issuer (as defined in Rule 405), without taking account of any determination by
the Commission pursuant to Rule 405 that it is not necessary that the Company
be considered an Ineligible Issuer.
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(g) Each Issuer Free Writing Prospectus and the final term sheet prepared and filed
pursuant to Section 5(b) hereto does not include any information that conflicts
with the information contained in the Registration Statement, including any
document incorporated therein by reference and any prospectus supplement deemed
to be a part thereof that has not been superseded or modified. The foregoing
sentence does not apply to information contained in or omitted from any Issuer
Free Writing Prospectus in reliance upon and in conformity with information
furnished in writing to the Company by any Underwriter through the
Representatives specifically for use therein, it being understood and agreed
that the only such information furnished by or on behalf of any Underwriter
consists of the information described as such in Section 8 hereof
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(h) Each of the Company and the Significant Subsidiaries is validly existing as a
corporation in good standing under the laws of the jurisdiction in which it is
chartered or organized with full corporate power and authority to own or lease,
as the case may be, and to operate its properties and conduct its business as
described in the Disclosure Package and the Prospectus, and is duly qualified
to do business as a foreign corporation and is in good standing under the laws
of each jurisdiction which requires such qualification, except where failure to
be so qualified would not have a Material Adverse Effect.
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(i) All the outstanding shares of capital stock of each of the Significant
Subsidiaries have been duly and validly authorized and issued and are fully
paid and nonassessable, and except for directors’ qualifying shares and as
otherwise set forth in the Disclosure Package and the Prospectus, all
outstanding shares of capital stock of the Significant Subsidiaries are owned
by the Company either directly or through wholly owned subsidiaries free and
clear of any perfected security interest or any other security interests,
claims, liens or encumbrances.
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(j) There is no franchise, contract or other document of a character required to be
described in the Registration Statement or Prospectus, or to be filed as an
exhibit thereto, which is not described or filed as required (and the
Preliminary Prospectus contains in all material respects the same description
of the foregoing matters contained in the Prospectus); and the statements in
the Preliminary Prospectus and the Prospectus under the heading “Material
U.S. Federal Income Tax Considerations” insofar as such statements
summarize legal matters, agreements, documents or proceedings discussed
therein, are accurate and fair summaries of such legal matters, agreements,
documents or proceedings.
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(k) This Agreement has been duly authorized, executed and delivered by the Company.
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(l) The Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the
Disclosure Package and the Prospectus, will not be an “investment
company” as defined in the Investment Company Act of 1940, as amended.
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(m) No consent, approval, authorization, filing with or order of any court or
governmental agency or body is required in connection with the transactions
contemplated herein, except such as have been obtained under the Securities Act
and the Trust Indenture Act and such as may be required under the blue sky laws
of any jurisdiction in connection with the purchase and distribution of the
Securities by the Underwriters in the manner contemplated herein and in the
Disclosure Package and the Prospectus.
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(n) Neither the issue and sale of the Securities nor the consummation of any other
of the transactions herein contemplated nor the fulfillment of the terms hereof
will conflict with, result in a breach or violation of, or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any
of its Significant Subsidiaries pursuant to, (i) the charter or by-laws of the
Company or any of its Significant Subsidiaries, (ii) the 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 Significant Subsidiaries is a party or bound or
to which its or their property is subject, except where such conflict, breach
or violation would not have a Material Adverse Effect, or (iii) any statute,
law, rule, regulation, judgment, order or decree applicable to the Company or
any of its Significant Subsidiaries of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority having
jurisdiction over the Company or any of its Significant Subsidiaries or any of
its or their properties.
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(o) No holders of securities of the Company have rights to the registration of such
securities under the Registration Statement.
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(p) The
historical financial statements and the related notes thereto of the Company
and its consolidated subsidiaries included or incorporated by reference in the
Registration Statement, the Disclosure Package and the Prospectus comply as to
form in all material respects with the applicable requirements of the
Securities Act and the Exchange Act, as applicable, and present fairly in all
material respects the financial position of the Company and its subsidiaries as
of the dates indicated and the results of their operations, stockholders’ equity
and cash flows for the periods specified; such financial statements have been
prepared in conformity with generally accepted accounting principles applied on
a consistent basis throughout the periods covered thereby, except as may be
otherwise stated therein and except to the extent that certain information
normally disclosed in financial statements and related notes may be omitted or
condensed in the quarterly financial statements of the Company and its
consolidated subsidiaries if done so pursuant to the rules and regulations of
the Commission; the supporting schedules included or incorporated by reference
in the Registration Statement, Disclosure Package and the Prospectus present
fairly in all material respects the information required to be stated therein;
and the other historical financial information of the Company and its
subsidiaries included or incorporated by reference in the Registration
Statement, the Disclosure Package and the Prospectus has been derived from the
accounting records of the Company and its subsidiaries and presents fairly in
all material respects the information shown thereby; and the proforma financial information and the related notes thereto included or
incorporated by reference in the Registration Statement, the Disclosure Package
and the Prospectus have been prepared in accordance with the applicable
requirements of the Securities Act and the Exchange Act, as applicable, and the
assumptions underlying such proforma financial information are
reasonable and are set forth in the Registration Statement, the Disclosure
Package and the Prospectus; and the pro forma adjustments have been properly
applied to the historical amounts in the compilation of those statements.
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(q) No action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property is pending or, to the knowledge of the
Company, threatened that (i) could reasonably be expected to have a material
adverse effect on the performance of this Agreement or the consummation of any
of the transactions contemplated hereby or (ii) could reasonably be expected to
have a Material Adverse Effect, whether or not arising from transactions in the
ordinary course of business, except as set forth in or contemplated in the
Disclosure Package and the Prospectus (exclusive of any supplement thereto).
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(r) Neither the Company nor any of its Significant Subsidiaries is in violation or
default of (i) any provision of its charter or bylaws, (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant or instrument to
which it is a party or bound or to which its property is subject, or (iii) any
statute, law, rule, regulation, judgment, order or decree of any court,
regulatory body, administrative agency, governmental body, arbitrator or other
authority having jurisdiction over the Company or such Significant Subsidiary
or any of its properties, as applicable, except, with respect to clauses (ii)
and (iii) only, for such violations or defaults as would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.
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(s) Deloitte & Touche LLP, who have certified certain financial statements of
the Company and its consolidated subsidiaries and delivered their report with
respect to the audited consolidated financial statements included or
incorporated in the Disclosure Package and the Prospectus, are independent
public accountants with respect to the Company within the meaning of the
Securities Act and the applicable published rules and regulations thereunder.
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(t) The Company and its subsidiaries have paid all material federal, state, local
and foreign taxes, other than taxes that are being disputed in good faith by
the Company or any of its subsidiaries to the extent any of the foregoing is
due and payable, and have filed all material tax returns required to be paid or
filed to the extent any of the foregoing is due; and except as otherwise
disclosed in the Registration Statement, the Disclosure Package and the
Prospectus, there is no tax deficiency that has been, or could reasonably be
expected to be, asserted against the Company or any of its subsidiaries or any
of their respective properties or assets that could reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.
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(u) No labor problem or dispute with the employees of the Company or any of its
subsidiaries exists or is threatened, and the Company is not aware of any
existing or threatened labor disturbance by the employees of any of its or its
subsidiaries’ principal suppliers, contractors or customers, that could in
any such case have a Material Adverse Effect, whether or not arising from
transactions in the ordinary course of business, except as set forth in or
contemplated in the Disclosure Package and the Prospectus (exclusive of any
supplement thereto).
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(v) The Company and its Significant Subsidiaries are insured by recognized,
financially sound and reputable institutions with policies in such amounts and
with such deductibles and covering such risks as the Company believes are
adequate for its business. The Company has not received notice that any
material policy of insurance insuring the Company or any of its Significant
Subsidiaries or their respective businesses, assets, employees, officers and
directors are not in full force and effect; the Company and its subsidiaries
are in compliance with the terms of such policies and instruments in all
material respects; and there are no material claims by the Company or any of
its Significant Subsidiaries under any such policy or instrument as to which
any insurance company is denying liability or defending under a reservation of
rights clause, except where any such claims would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
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(w) No Significant Subsidiary of the Company is currently prohibited, directly or
indirectly, from paying any dividends to the Company, from making any other
distribution on such subsidiary’s capital stock, from repaying to the
Company any loans or advances to such subsidiary from the Company 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 by
the Disclosure Package and the Prospectus (exclusive of any supplement
thereto).
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(x) The Company and its subsidiaries possess all licenses, certificates, permits
and other authorizations issued by all applicable authorities necessary to
conduct their respective businesses, except where any failure to have such
license, certificate, permit or authorization would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, and
neither the Company nor any such subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would reasonably be expected to have a
Material Adverse Effect, whether or not arising from transactions in the
ordinary course of business, except as set forth in or contemplated in the
Disclosure Package and the Prospectus (exclusive of any supplement thereto).
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(y) The Company in respect of itself and its subsidiaries maintains a system of
“internal control over financial reporting” (as defined in Rule
13a-15(f) of the Exchange Act) that complies with the requirements of the
Exchange Act. To the knowledge of the Company, since December 31, 2005 and
except as disclosed in the Disclosure Package and the Prospectus, no material
weaknesses or significant deficiencies in the Company’s internal control
over financial reporting have been identified.
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(z) The Company in respect of itself and its subsidiaries maintains a system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of
the Exchange Act) that is designed to ensure that information required to be
disclosed by the Company in reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported within the time periods
specified in the Commission’s rules and forms, including controls and
procedures designed to ensure that such information is accumulated and
communicated to the Company’s management as appropriate to allow timely
decisions regarding required disclosure. The Company has carried out
evaluations of the effectiveness of its disclosure controls and procedures as
required by Rule 13a-15 of the Exchange Act.
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(aa) Except
as would not otherwise reasonably be expected to have a Material Adverse Effect
and except as otherwise disclosed in the Disclosure Package and the Prospectus,
the Company and its subsidiaries (i) are in compliance with any and all
applicable foreign, federal, state and local laws and regulations relating to
the protection of human health and safety, the environment or hazardous or
toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their
respective businesses, (iii) are in compliance with all terms and conditions of
any such permit, license or approval, and (iv) are not subject to any claims or
liabilities arising out of the release of or exposure to wastes, pollutants or
contaminants and are not aware of any facts or circumstances which would form a
reasonable basis for any such claim.
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(bb) 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 in
all material respects with any provision of the Xxxxxxxx-Xxxxx Act of 2002 and
the rules and regulations promulgated in connection therewith, including
Section 402 relating to loans and Sections 302 and 906 relating to
certifications.
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(cc) Neither the Company nor any of its subsidiaries has taken any action, directly
or indirectly, that would result in a violation by such persons of the Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder (the “FCPA”), to the knowledge of the Company, no
director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries has taken any action on behalf of the Company or its subsidiaries,
directly or indirectly, that would result in a violation by such persons of the
FCPA, and the Company and its subsidiaries have conducted their businesses in
compliance in all material respects with the FCPA and have instituted and
maintain policies and procedures designed to ensure, and which are reasonably
expected to continue to ensure, continued compliance therewith.
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(dd) The operations of the Company and its subsidiaries are and have been conducted
at all times in compliance in all material respects with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes
of all applicable jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines issued, administered or
enforced by any governmental agency (collectively, the “Money Laundering
Laws”), and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company
or any of its subsidiaries with respect to the Money Laundering Laws is pending
or, to the knowledge of the Company, threatened.
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(ee) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or
any of its subsidiaries in respect of matters relating to the Company or any of
its subsidiaries is currently subject to any sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
and the Company will not directly or indirectly use the proceeds of the
offering of the Securities, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or
entity, for the purpose of financing the activities of any person currently
subject to any U.S. sanctions administered by OFAC.
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(ff) Except as set forth in the Disclosure Package and the Prospectus, to the
Company’s knowledge, the Company or its subsidiaries own or possess the
right to use all patents, trademarks, service marks, trade names, copyrights,
patentable inventions, trade secrets and know-how used by the Company or its
subsidiaries in the conduct of the Company’s or its subsidiaries’ business
as now conducted or as proposed in the Disclosure Package and the Prospectus to
be conducted and material to the Company and its subsidiaries taken as a whole
(collectively, the “Intellectual Property”). Except as set forth in
the Disclosure Package and the Prospectus, there are no material legal or
governmental actions, suits, proceedings or claims pending or, to the Company’s
knowledge, threatened against the Company (i) challenging the Company’s
rights in or to any Intellectual Property, (ii) challenging the validity or
scope of any Intellectual Property owned by the Company, or (iii) alleging that
the operation of the Company’s business as now conducted infringes or
otherwise violates any patent, trademark, copyright, trade secret or other
proprietary rights of a third party.
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(gg) Except as disclosed in the Registration Statement, the Disclosure Package and
the Prospectus, the Company (i) does not have any material lending or other
relationship with any bank or lending affiliate of the Representatives and (ii)
does not intend to use any of the proceeds from the sale of the Securities
hereunder to repay any outstanding debt owed to any affiliate of the
Representatives.
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certificate signed by any officer of the Company and delivered to the Representatives or
counsel for the Underwriters in connection with the offering of the Securities shall be
deemed a representation and warranty by the Company, as to matters covered thereby, to
each Underwriter.
2. Purchase and Sale. Subject to the terms and conditions and in reliance
upon the representations and warranties herein set forth, the Company agrees to
sell to each Underwriter, and each Underwriter agrees, severally and not
jointly, to purchase from the Company, at the purchase price set forth in
Schedule I hereto the principal amount of the Securities set forth
opposite such Underwriter’s name in Schedule II hereto.
3. Delivery and Payment. Delivery of and payment for the Securities shall be
made on the date and at the time specified in Schedule I hereto or at such
time on such later date not more than three Business Days after the foregoing
date as the Representatives shall reasonably designate, which date and time may
be postponed by agreement between the Representatives and the Company or as
provided in Section 9 hereof (such date and time of delivery and
payment for the Securities being herein called the “Closing Date”).
Delivery of the Securities shall be made to the Representatives for the
respective accounts of the several Underwriters against payment by the several
Underwriters through the Representatives of the purchase price thereof to or
upon the order of the Company by wire transfer payable in same-day funds to an
account specified by the Company. Delivery of the Securities shall be made
through the facilities of The Depository Trust Company unless the
Representatives shall otherwise instruct.
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4.
Offering by Underwriters. It is understood that the several Underwriters
propose to offer the Securities for sale to the public as set forth in the
Final Prospectus.
5. Agreements of Company. The Company agrees with the several Underwriters
that:
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(a) Prior to the termination of the offering of the Securities, the Company will
not file any amendment of the Registration Statement or supplement (including
the Final Prospectus or any Preliminary Prospectus) to the Base Prospectus
unless the Company has furnished you a copy for your review prior to filing and
will not file any such proposed amendment or supplement to which you reasonably
object. The Company will cause the Final Prospectus, properly completed, and
any supplement thereto to be filed in a form approved by the Representatives
with the Commission pursuant to the applicable paragraph of Rule 424(b)
within the time period prescribed and will provide evidence reasonably
satisfactory to the Representatives of such timely filing. The Company will
promptly advise the Representatives (i) when the Final Prospectus, and any
supplement thereto, shall have been filed (if required) with the Commission
pursuant to Rule 424(b), (ii) when, prior to termination of the
offering of the Securities, any amendment to the Registration Statement shall
have been filed or become effective, (iii) of any request by the
Commission or its staff for any amendment of the Registration Statement, or any
Rule 462(b) Registration Statement, or for any supplement to the Final
Prospectus or for any additional information, (iv) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement or of any notice objecting to its use or the institution or
threatening of any proceeding for that purpose and (v) of the receipt by
the Company of any notification with respect to the suspension of the
qualification of the Securities for sale in any jurisdiction or the institution
or threatening of any proceeding for such purpose. The Company will use its
reasonable best efforts to prevent the issuance of any such stop order or the
occurrence of any such suspension or objection to the use of the Registration
Statement and, upon such issuance, occurrence or notice of objection, to obtain
as soon as possible the withdrawal of such stop order or relief from such
occurrence or objection, including, if necessary, by filing an amendment to the
Registration Statement or a new registration statement and using its reasonable
best efforts to have such amendment or new registration statement declared
effective as soon as practicable. The Company agrees to pay the fees required
by the Commission relating to the Securities within the time required by Rule
456(b)(1) without regard to the proviso therein and otherwise in accordance
with Rules 456(b) and 457(r).
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(b) To prepare a final term sheet, containing solely a description of final terms
of the Securities and the offering thereof, in the form approved by you and
attached as Schedule IV hereto and to file such term sheet pursuant to Rule
433(d) within the time required by such Rule.
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(c) If, at any time prior to the filing of the Final Prospectus pursuant to Rule
424(b), any event occurs as a result of which the Disclosure Package would
include any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein in the light of the circumstances
under which they were made or the circumstances then prevailing not misleading,
the Company will (i) notify promptly the Representatives so that any use of the
Disclosure Package may cease until it is amended or supplemented; (ii) amend or
supplement the Disclosure Package to correct such statement or omission; and
(iii) supply any amendment or supplement to you in such quantities as you may
reasonably request.
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(d) If, at any time when a prospectus relating to the Securities is required to be
delivered under the Securities Act (including in circumstances where such
requirement may be satisfied pursuant to Rule 172), any event occurs as a
result of which the Final Prospectus as then supplemented would include any
untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein in the light of the circumstances
under which they were made at such time not misleading, or if it shall be
necessary to amend the Registration Statement, file a new registration
statement or supplement the Final Prospectus to comply with the Securities Act
or the Exchange Act or the respective rules thereunder, including in connection
with use or delivery of the Final Prospectus, the Company promptly will (i) notify
the Representatives of any such event, (ii) prepare and file with the
Commission, subject to the second sentence of paragraph (a) of this Section 5,
an amendment or supplement or new registration statement which will correct
such statement or omission or effect such compliance, (iii) use its reasonable
best efforts to have any amendment to the Registration Statement or new
registration statement declared effective as soon as practicable in order to
avoid any disruption in use of the Final Prospectus and (iv) supply any
supplemented Final Prospectus to you in such quantities as you may reasonably
request.
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(e) Upon the request by the Underwriters, as soon as practicable, the Company will
make generally available to its security holders and to the Representatives an
earnings statement or statements of the Company and its subsidiaries which will
satisfy the provisions of Section 11(a) of the Act and Rule 158; provided that
this covenant shall be deemed satisfied as long as the Company is required to
file reports pursuant to Section 13 or 15(d) of the Exchange Act and has filed
its report or reports on Form 10-K, Form 10-Q or Form 8-K, or has supplied to
the Commission copies of the annual report sent to security holders pursuant to
Rule 14a-3(c), containing such earning statement or statements.
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(f) The Company will furnish to the Representatives and counsel for the
Underwriters, without charge, signed copies of the Registration Statement
(including exhibits thereto) and to each other Underwriter a copy of the
Registration Statement (without exhibits thereto) and, so long as delivery of a
prospectus by an Underwriter or dealer may be required by the Securities Act
(including in circumstances where such requirement may be satisfied pursuant to
Rule 172), as many copies of each Preliminary Prospectus, the Final Prospectus
and each Issuer Free Writing Prospectus and any supplement thereto as the
Representatives may reasonably request. The Company will pay the expenses of
printing or other production of all documents relating to the offering of the
Securities.
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(g) The Company shall cooperate with the Representatives and counsel for the
Underwriters to qualify or register the Securities for sale under (or obtain
exemptions from the application of) the state securities or blue sky laws of
those jurisdictions designated by the Representatives, shall comply with such
laws and shall continue such qualifications, registrations and exemptions in
effect so long as required for the distribution of the Securities. The Company
shall not be required to qualify to transact business or to take any action
that would subject it to general service of process in any such jurisdiction
where it is not presently qualified or where it would be subject to taxation as
a foreign business.
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(h) The Company agrees that, unless it has or shall have obtained the prior written
consent of the Representatives, and each Underwriter, severally and not
jointly, agrees with the Company that, unless it has or shall have obtained, as
the case may be, the prior written consent of the Company, it has not made and
will not make any offer relating to the Securities that would constitute an
Issuer Free Writing Prospectus or that would otherwise constitute a “free
writing prospectus” (as defined in Rule 405) required to be filed by the
Company with the Commission or retained by the Company under Rule 433, other
than a free writing prospectus containing the information contained in the
final term sheet prepared and filed pursuant to Section 5(b) hereto; provided
that the prior written consent of the parties hereto shall be deemed to have
been given in respect of the Free Writing Prospectuses included in Schedule III
hereto. Any such free writing prospectus consented to by the Representatives or
the Company is hereinafter referred to as a “Permitted Free Writing
Prospectus.” The Company agrees that (x) it has treated and will treat, as
the case may be, each Permitted Free Writing Prospectus as an Issuer Free
Writing Prospectus and (y) it has complied and will comply, as the case may be,
with the requirements of Rules 164 and 433 applicable to any Permitted Free
Writing Prospectus, including in respect of timely filing with the Commission,
legending and record keeping.
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(i) The Company will not, without the prior written consent of the Representatives,
offer, sell, contract to sell, pledge, or otherwise dispose of (or enter into
any transaction which is designed to, or might reasonably be expected to,
result in the disposition (whether by actual disposition or effective economic
disposition due to cash settlement or otherwise) by the Company or any
affiliate of the Company or any person in privity with the Company or any
affiliate of the Company), directly or indirectly, including the filing (or
participation in the filing) of a registration statement with the Commission in
respect of, or establish or increase a put equivalent position or liquidate or
decrease a call equivalent position within the meaning of Section 16 of the
Exchange Act, any debt securities issued or guaranteed by the Company (other
than the Securities) or publicly announce an intention to effect any such
transaction, until the Business Day set forth on Schedule I hereto.
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(j) The Company will not take, directly or indirectly, any action designed to or
that would constitute or that might reasonably be expected to cause or result
in, under the Exchange Act or otherwise, stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the
Securities.
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(k) The Company will pay all costs, fees and expenses incurred in connection with
the performance of its obligations hereunder and in connection with the
transactions contemplated hereby, including without limitation (i) all
expenses incident to the issuance and delivery of the Securities (including all
printing and engraving costs), (ii) all necessary issue, transfer and
other stamp taxes in connection with the issuance and sale of the Securities to
the Underwriters, (iii) all fees and expenses of the Company’s
counsel, independent public or certified public accountants and other advisors
to the Company, (iv) all costs and expenses incurred in connection with
the preparation, printing, filing and distribution of the Registration
Statement (including financial statements, exhibits, schedules, consents and
certificates of experts), each Issuer Free Writing Prospectus, the Preliminary
Prospectus and the Prospectus, and all amendments and supplements thereto, and
this Agreement, the Indenture and the Securities, (v) all filing fees,
reasonable attorneys’ fees and expenses incurred by the Company or the
Underwriters in connection with qualifying or registering (or obtaining
exemptions from the qualification or registration of) all or any part of the
Securities for offer and sale under the state securities or blue sky laws, and,
if requested by the Representatives, preparing a “Blue Sky Survey” or
memorandum, and any supplements thereto, advising the Underwriters of such
qualifications, registrations and exemptions, (vi) the filing fees
incident to, and the reasonable fees and disbursements of counsel to the
Underwriters in connection with, the review, if any, by the NASD of the terms
of the sale of the Securities, (vii) the fees and expenses of the Trustee,
including the reasonable fees and disbursements of counsel for the Trustee in
connection with the Indenture and the Securities, (viii) any fees payable
in connection with the rating of the Securities with the ratings agencies, (ix) all
fees and expenses (including reasonable fees and expenses of counsel) of the
Company in connection with approval of the Securities by the Depositary for
“book-entry” transfer, and (x) all other fees, costs and
expenses incurred by the Company in connection with the performance of its
obligations hereunder for which provision is not otherwise made in this
Section. Except as provided in this Subparagraph and in Section 7 and
Section 8 hereof, the Underwriters shall pay their own expenses, including
the fees and disbursements of their counsel.
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5A. Agreements
of Underwriters. Each Underwriter agrees with the Company that:
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(a) It has not and will not use, authorize use of, refer to, or
participate in the planning for use of, any Free Writing Prospectus (which
term includes use of any written information furnished to the Commission
by the Company and not incorporated by reference into the Registration
Statement or any press release issued by the Company) other than a Free
Writing Prospectus that (i) is not an “issuer free writing prospectus” (as
defined in Rule 433) and (ii) contains only (A) information describing the
preliminary terms of the Securities or their offering, (B) information
permitted under Rule 134 or (C) information that describes the final terms
of the Securities or their offering and that is included in the final term
sheet of the Company contemplated in Section 5(b); provided that the
Underwriters may use a term sheet substantially in the form of Schedule IV
hereto without the consent of the Company.
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(b) It will not offer, sell or deliver any of the Securities, directly
or indirectly, or distribute the Final Prospectus or any other offering
material relating to the Securities, in or from any jurisdiction except
under circumstances that will, to the knowledge and belief of such
Underwriter, result in compliance with the applicable laws and regulations
thereof and that will not impose any obligations on the Company except as
set forth in this Agreement.
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(c) It is not subject to any pending proceeding under Section 8A of the
Securities Act with respect to the offering of the Securities (and will
promptly notify the Company if any such proceeding against it is initiated
during the Prospectus Delivery Period). “Prospectus Delivery Period” means
such period of time after the first date of the public offering of the
Securities as in the opinion of counsel for the Underwriters a prospectus
relating to the Securities is required by law to be delivered (or required
to be delivered but for Rule 172 under the Securities Act) in connection
with sales of the Securities by any Underwriter or dealer.
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(d) It will, pursuant to reasonable procedures developed in good faith,
retain copies of each Free Writing Prospectus used or referred to by it,
in accordance with Rule 433.
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6. Conditions to the Obligations of the Underwriters. The obligations of the
Underwriters to purchase the Securities shall be subject to the accuracy
of the representations and warranties on the part of the Company contained
herein as of the Execution Time and the Closing Date, to the accuracy of
the statements of the Company made in any certificates pursuant to the
provisions hereof, to the performance by the Company of its obligations
hereunder and to the following additional conditions:
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(a) The Final Prospectus, and any supplement thereto, have been filed in
the manner and within the time period required by Rule 424(b); the
final term sheet contemplated by Section 5(b) hereto, and any other
material required to be filed by the Company pursuant to Rule 433(d),
shall have been filed with the Commission within the applicable time
periods prescribed for such filings by Rule 433; and no stop order
suspending the effectiveness of the Registration Statement or any notice
objecting to its use shall have been issued and no proceedings for that
purpose shall have been instituted or threatened.
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(b) The Company shall have requested and caused Xxxxx & Xxxxxxx LLP,
counsel for the Company, to have furnished to the Representatives their
opinion, dated the Closing Date and addressed to the Representatives, to
the effect that:
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(i) the Registration Statement is an “automatic shelf registration
statement” as defined under Rule 405 of the Securities Act that has
been filed with the Commission not earlier than three years prior to the
date of the Underwriting Agreement; the Indenture has been qualified under
the Trust Indenture Act; each Preliminary Prospectus and the Prospectus
was filed with the Commission pursuant to the subparagraph of Rule 424(b)
under the Securities Act specified in such opinion on the date specified
therein; and no order suspending the effectiveness of the Registration
Statement has been issued, no notice of objection of the Commission to the
use of such Registration Statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act has been received by
the Company, and no proceeding for that purpose or pursuant to Section 8A
of the Securities Act against the Company or in connection with the
offering of the Securities is pending or, to the knowledge of such
counsel, threatened by the Commission; the Registration Statement and the
Final Prospectus (other than the financial statements and other financial
and statistical information contained therein, as to which such counsel
need express no opinion) comply as to form in all material respects with
the applicable requirements of the Act, the Exchange Act and the Trust
Indenture Act and the respective rules thereunder.
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(ii) each of the Company and each of its Significant Subsidiaries is
validly existing as a corporation in good standing under the laws of the
jurisdiction in which it is chartered or organized, with full corporate
power and authority to own or lease, as the case may be, and to operate
its properties and conduct its business as described in the Disclosure
Package and the Final Prospectus, and is duly qualified to do business as
a foreign corporation and is in good standing under the laws of each
jurisdiction which requires such qualification, except where such failure
to be so qualified would not have a Material Adverse Effect;
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(iii) the Securities and the Indenture conform in all material respects to
the description thereof contained in the Disclosure Package and the Final
Prospectus;
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(iv) the Indenture has been duly authorized, executed and delivered, and
constitutes a legal, valid and binding instrument enforceable against the
Company in accordance with its terms (subject, as to enforcement of
remedies, to applicable bankruptcy, reorganization, insolvency, moratorium
or other laws affecting creditors’ rights generally from time to time
in effect and to general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair
dealing, regardless of whether considered in a proceeding in equity or at
law); and the Securities have been duly authorized and, when executed and
authenticated in accordance with the provisions of the Indenture and
delivered to and paid for by the Underwriters pursuant to this Agreement,
will constitute legal, valid and binding obligations of the Company
entitled to the benefits of the Indenture;
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(v) to such counsel’s knowledge, there is no pending or threatened
action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property, of a character required to be
disclosed pursuant to Item 103 of Regulation S-K in the Company’s
periodic reports filed under the Exchange Act which is not adequately
disclosed in any Preliminary Prospectus and the Final Prospectus, and
there is no franchise, contract or other document of a character required
to be described in the Registration Statement or Final Prospectus, or to
be filed as an exhibit thereto, which is not described or filed as
required, and to the extent that they constitute matters of law, summaries
of legal matters or legal conclusions, the statements set forth in the
Prospectus under the caption “Material U.S. Federal Income Tax
Considerations” are accurate in all material respects and fairly
present the information provided;
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(vi) this Agreement has been duly authorized, executed and delivered by
the Company;
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(vii) the Company is not and, after giving effect to the offering and sale
of the Securities and the application of the proceeds thereof as described
in the Disclosure Package and the Final Prospectus, will not be an “investment
company” as defined in the Investment Company Act of 1940, as
amended;
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(viii) no consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or
regulatory authority is required to be obtained by the Company in
connection with the transactions contemplated herein, except for the
registration of the Securities under the Securities Act, the qualification
of the Indenture under the Trust Indenture Act and such consents,
approvals, authorizations, orders and registrations or qualifications as
may be required under the blue sky laws of any United States jurisdiction or
the securities laws of any foreign jurisdiction in connection with the
purchase and distribution of the Securities by the Underwriters;
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(ix) neither the execution and delivery of the Indenture, the issue and
sale of the Securities, nor the consummation of any other of the
transactions herein contemplated nor the fulfillment of the terms hereof
will conflict with, result in a breach or violation of, or imposition of
any lien, charge or encumbrance upon any property or assets of the Company
or its Significant Subsidiaries pursuant to, (i) the charter or
by-laws of the Company or 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 known to such counsel to which the Company or its
Significant Subsidiaries is a party or bound or to which its or their
property is subject (except for any such breach, violation or default that
could not adversely affect in a material respect the ability of the
Company to perform its obligations under this Agreement, or would
otherwise be material in the context of the sale of the Securities), or
(iii) any statute, law, rule, regulation, judgment, order or decree
applicable to the Company or its Significant Subsidiaries of any court,
regulatory body, administrative agency, governmental body, arbitrator or
other authority having jurisdiction over the Company or its Significant
Subsidiaries or any of its or their properties; and
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(x) to such counsel’s knowledge, no holders of securities of the
Company have rights to the registration of such securities under the
Registration Statement.
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Such
counsel shall also state that they have participated in conferences with representatives
of the Company and with representatives of its independent accountants and counsel at
which conferences the contents of the Registration Statement, the Disclosure Package and
the Prospectus and any amendment and supplement thereto and related matters were discussed
and, although such counsel assumes no responsibility for the accuracy, completeness or
fairness of the Registration Statement, the Disclosure Package, the Prospectus and any
amendment or supplement thereto (except as expressly provided above), no facts have come
to such counsel’s attention that cause such counsel to believe that at the Effective
Date immediately preceding the Execution Time the Registration Statement contained any
untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, that the
Disclosure Package, at the Execution Time, contained any untrue statement of a material
fact or omitted to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading or that the
Prospectus or any amendment or supplement thereto as of its date and the Closing Date
contains any untrue statement of a material fact or omits to state a material fact
necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading (other than, in each case, the financial statements,
related schedules and other financial data included or incorporated by reference therein,
as to which such counsel need express no belief). |
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In
rendering such opinion, such counsel may rely (A) as to matters involving the
application of laws of any jurisdiction other than the State of Delaware or the Federal
laws of the United States, to the extent they deem proper and specified in such opinion,
upon the opinion of other counsel of good standing whom they believe to be reliable and
who are reasonably satisfactory to counsel for the Underwriters and (B) as to matters
of fact, to the extent they deem proper, on certificates of responsible officers of the
Company and public officials. References to the Final Prospectus in this
paragraph (b) shall also include any supplements thereto at the Closing Date. |
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(c) The Representatives shall have received from Shearman & Sterling
LLP, counsel for the Underwriters, such opinion or opinions, dated the
Closing Date and addressed to the Representatives, with respect to the
issuance and sale of the Securities, the Indenture, the Registration
Statement, the Disclosure Package, the Final Prospectus (together with any
supplement thereto) and other related matters as the Representatives may
reasonably require, and the Company shall have furnished to such counsel
such documents as they request for the purpose of enabling them to pass
upon such matters.
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(d) The Company shall have furnished to the Representatives a
certificate of the Company, signed by the Chairman of the Board or the
President and the principal financial or accounting officer of the
Company, solely in their respective capacities as such, dated the Closing
Date, to the effect that the signers of such certificate have carefully
examined the Registration Statement, the Disclosure Package, the Final
Prospectus and any supplements or amendments thereto and this Agreement
and that:
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(i) the representations and warranties of the Company in this Agreement
are true and correct on and as of the Closing Date with the same effect as
if made on the Closing Date and the Company has complied with all the
agreements and satisfied all the conditions on its part to be performed or
satisfied at or prior to the Closing Date;
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(ii) no stop order suspending the effectiveness of the Registration
Statement or any notice objecting to its use has been issued and no
proceedings for that purpose have been instituted or, to the Company’s
knowledge, threatened; and
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(iii) since the date of the most recent financial statements included or
incorporated by reference in the Final Prospectus and the Disclosure
Package (exclusive of any supplements thereto after the Execution Time),
there has been no Material Adverse Effect, except as set forth in or
contemplated in the Final Prospectus and the Disclosure Package (exclusive
of any supplements thereto after the Execution Time).
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(e) The Company shall have requested and Deloitte & Touche LLPshall
have furnished to the Representatives, at the Execution Time and at the
Closing Date, letters (which may refer to letters previously delivered to
one or more of the Representatives), dated respectively as of the
Execution Time and as of the Closing Date, in form and substance
reasonably satisfactory to the Representatives, confirming that they are
independent accountants within the meaning of the Securities Act and the
Exchange Act and the respective applicable rules and regulations adopted
by the Commission thereunder and that they have performed a review of the
unaudited interim financial information of the Company for the nine-month
period ended September 30, 2006, in accordance with Statement on
Auditing Standards No. 100,and stating in effect that:
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(i) in their opinion the audited financial statements and pro forma
financial statements included or incorporated by reference in the
Registration Statement, the Preliminary Prospectus and the Final
Prospectus and reported on by them comply as to form with the applicable
accounting requirements of the Securities Act and the Exchange Act and the
related rules and regulations adopted by the Commission;
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(ii) on the basis of a reading of the latest unaudited financial
statements made available by the Company and its subsidiaries; their
limited review, in accordance with standards established under Statement
on Auditing Standards No. 100, of the unaudited interim financial
information for the nine-month period ended September 30, 2006, the
Preliminary Prospectus and the Final Prospectus; carrying out certain
specified procedures (but not an examination in accordance with generally
accepted auditing standards) which would not necessarily reveal matters of
significance with respect to the comments set forth in such letter; a
reading of the minutes of the meetings of the stockholders, directors and
auditcommittee of the Company; and inquiries of certain officials
of the Company who have responsibility for financial and accounting
matters of the Company and its subsidiaries as to transactions and events
subsequent to December 31, 2005, nothing came to their attention
which caused them to believe that:
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(1) any unaudited financial statements of the Company included or
incorporated by reference in the Registration Statement, the Preliminary
Prospectus and the Final Prospectus do not comply as to form with
applicable accounting requirements of the Securities Act and with the
related rules and regulations adopted by the Commission with respect to
financial statements included or incorporated by reference in quarterly
reports on Form 10-Q under the Exchange Act; and said unaudited
financial statements are not in conformity with generally accepted
accounting principles applied on a basis substantially consistent with
that of the audited financial statements included or incorporated by
reference in the Registration Statement, the Preliminary Prospectus and
the Final Prospectus;
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(2) with respect to the period subsequent to September 30, 2006,
there were any changes, at January 8, 2007, in the long-term debt of the
Company, in the common stock of the Company or decreases in the
stockholders’ equity of the Company or decrease in consolidated net
current assets of the Company as compared with the amounts shown on the
September 30, 2006 consolidated balance sheet included or
incorporated by reference in the Registration Statement, the Preliminary
Prospectus and the Final Prospectus, or for the period from November 26,
2006 to January 8, 2007 there were any decreases, as compared with the
corresponding period in the preceding year; in consolidated net revenues
or in total or per share amounts of net income of the Company, except in
all instances for changes or decreases set forth in such letter, in which
case the letter shall be accompanied by an explanation by the Company as
to the significance thereof unless said explanation is not deemed
necessary by the Representatives; and
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(iii) they have performed certain other specified procedures as a result
of which they determined that certain information of an accounting,
financial or statistical nature (which is limited to accounting, financial
or statistical information derived from the general accounting records of
the Company and its subsidiaries) set forth in the Registration Statement,
the Preliminary Prospectus and the Final Prospectus, agrees with the
accounting records of the Company and its subsidiaries, excluding any
questions of legal interpretation; and
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(iv) on the basis of a reading of the unaudited pro forma financial
statements included or incorporated by reference in the Registration
Statement, the Preliminary Prospectus and the Final Prospectus (the “pro
forma financial statements”); carrying out certain specified
procedures; inquiries of certain officials of the Company who have
responsibility for financial and accounting matters; and proving the
arithmetic accuracy of the application of the pro forma adjustments to the
historical amounts in the pro forma financial statements, nothing came to
their attention which caused them to believe that the pro forma financial
statements do not comply as to form in all material respects with the
applicable accounting requirements of Rule 11-02 of Regulation S-X or
that the pro forma adjustments have not been properly applied to the
historical amounts in the compilation of such statements.
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References
to the Final Prospectus in this paragraph (e) include any supplement thereto at the
date of the letter.
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(f) The Company shall have requested and KPMG LLPshall have
furnished to the Representatives, at the Execution Time and at the Closing
Date, letters (which may refer to letters previously delivered to one or
more of the Representatives), dated respectively as of the Execution Time
and as of the Closing Date, in form and substance reasonably satisfactory
to the Representatives, stating in effect that:
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(i) in
their opinion the combined audited financial statements of ProQuest Business
Solutions Inc. and Related Entities as of and for the year ended December
31, 2005 included or incorporated by reference in the Registration
Statement, the Preliminary Prospectus and the Final Prospectus and
reported on by them comply as to form with the applicable accounting
requirements of the Securities Act and the Exchange Act and the related
rules and regulations adopted by the Commission;
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(ii) they
have read the 2006 minutes of meetings of the stockholders and the board of
directors of ProQuest Business Solutions Inc. and have carried out other
procedures as follows:
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(1) with
respect to the 39 week period ended September 30, 2006, on the basis of
reading the unaudited condensed combined balance sheet of ProQuest
Business Solutions Inc. and Related Entities as of September 30, 2006, and
the unaudited condensed combined statement of operations and cash flows of
ProQuest Business Solutions Inc. and Related Entities for the 39 week
period ended September 30, 2006, included or incorporated by reference in
the Registration Statement, they have agreed the amounts contained therein
with the accounting records of ProQuest Business Solutions Inc. and
Related Entities as of September 30, 2006, and for the 39 week period then
ended;
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(2) with
respect to the 39 week period ended September 30, 2006, on the basis of
inquiries of certain officials of ProQuest Business Solutions Inc. who
have responsibility for financial and accounting matters whether the
unaudited condensed combined financial statements referred to in (ii): (A)
are in conformity with generally accepted accounting principles applied on
a basis substantially consistent with that of the audited combined
financial statements included or incorporated by reference in the
Registration Statement, and (B) comply as to form in all material respects
with the applicable accounting requirements of the Act and the Exchange
Act and the related rules and regulations adopted by the SEC, they
confirmed that those officials stated that the unaudited condensed
combined financial statements (I) are in conformity with generally
accepted accounting principles applied on a basis substantially consistent
with that of the audited combined financial statements, and (II) comply as
to form in all material respects with the applicable accounting
requirements of the Act and the Exchange Act and the related rules and
regulations adopted by the SEC; and
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(iii) with respect to the pro forma financial information included or
incorporated by reference in the Registration Statement, they have
compared the columns containing the unaudited condensed combined balance
sheet as of September 30, 2006, and the unaudited condensed combined
statements of income for the year ended December 31, 2005 and the 39 week
period ended September 30, 2006 of ProQuest Business Solutions Inc. and
Related Entities, with the respective unaudited combined financial
statements of ProQuest Business Solutions Inc. and Related Entities
included or incorporated by reference in the Registration Statement and
found them to be in agreement.
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References
to the Final Prospectus in this paragraph (f) include any supplement thereto at the
date of the letter.
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(g) Subsequent to the Execution Time or, if earlier, the dates as of which
information is given in the Registration Statement (exclusive of any amendment
thereof after the Execution Time ), the Final Prospectus (exclusive of any
supplement thereto after the Execution Time other than those to which the
Underwriters have not objected or have consented, as applicable, pursuant to
Section 5 hereof) or any Issuer Free Writing Prospectus (exclusive of any
supplement thereto after the Execution Time), there shall not have been (i) any
change or decrease specified in the letter or letters referred to in paragraph
(e) of this Section 6 or (ii) any change, or any development involving a
prospective change, in or affecting the business, financial condition or
properties of the Company and its subsidiaries on a consolidated basis the
effect of which in any case referred to in paragraph (e)(i) or (ii) of this
Section 6 is, in the reasonable judgment of the Representatives, so material
and adverse as to make it impracticable or inadvisable to proceed with the
offering or delivery of the Securities as contemplated by the Registration
Statement (exclusive of any amendment thereof after the Execution Time), the
Final Prospectus (exclusive of any supplement thereto after the Execution Time)
and any Issuer Free Writing Prospectus (exclusive of any supplement thereto
after the Execution Time).
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(h) Subsequent to the Execution Time, there shall not have been any decrease in the
rating of any of the Company’s debt securities by any “nationally
recognized statistical rating organization” (as defined for purposes of
Rule 436(g) under the Securities Act) or any notice given of any intended
or potential decrease in any such rating or of a possible change in any such
rating that does not indicate the direction of the possible change.
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(i) Prior to the Closing Date, the Company shall have furnished to the
Representatives such further information, certificates and documents as the
Representatives may reasonably request.
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If
any of the conditions specified in this Section 6 shall not have been fulfilled when
and as provided in this Agreement, or if any of the opinions and certificates mentioned
above or elsewhere in this Agreement shall not be reasonably satisfactory in form and
substance to the Representatives and counsel for the Underwriters, this Agreement and all
obligations of the Underwriters hereunder may be canceled at, or at any time prior to, the
Closing Date by the Representatives. Notice of such cancellation shall be given to the
Company in writing or by telephone or facsimile confirmed in writing.
The
documents required to be delivered by this Section 6 shall be delivered at the office
of Shearman & Sterling LLP, counsel for the Underwriters, at 000 Xxxxxxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx, on the Closing Date.
7. Reimbursement of Underwriters’ Expenses. If the sale of the
Securities provided for herein is not consummated because any condition to the
obligations of the Underwriters set forth in Section 6 hereof is not
satisfied, because of any termination pursuant to Section 10 hereof or
because of any refusal, inability or failure on the part of the Company to
perform any agreement herein or comply with any provision hereof other than by
reason of a default by any of the Underwriters, the Company will reimburse the
Underwriters severally through [the Representatives] on demand for all expenses
(including reasonable fees and disbursements of counsel) that shall have been
incurred by them in connection with the proposed purchase and sale of the
Securities.
8. Indemnification and Contribution. (a) The Company agrees to indemnify and
hold harmless each Underwriter, the directors, officers, employees and agents
of each Underwriter and each person who controls any Underwriter within the
meaning of either the Securities Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any
of them may become subject under the Securities Act, the Exchange Act or other
Federal or state statutory law or regulation, at common law or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the registration statement for the
registration of the Securities as originally filed or in any amendment thereof,
or in the Base Prospectus, any Preliminary Prospectus or any other preliminary
prospectus supplement relating to the Securities, the Final Prospectus, any
Issuer Free Writing Prospectus or the information contained in the final term
sheet required to be prepared and filed pursuant to Section 5(b) hereto and the
Disclosure Package, or in any amendment thereof or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and agrees to reimburse each such indemnified party, as
incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company will not be liable
in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
any Underwriter through the Representatives specifically for inclusion therein.
This indemnity agreement will be in addition to any liability which the Company
may otherwise have.
22
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(b) Each
Underwriter severally and not jointly agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers who signs the
Registration Statement, and each person who controls the Company within
the meaning of either the Securities Act or the Exchange Act, to the same
extent as the foregoing indemnity from the Company to each Underwriter,
but only with reference to written information relating to such
Underwriter furnished to the Company by or on behalf of such Underwriter
through the Representatives specifically for inclusion in the documents
referred to in the foregoing indemnity. This indemnity agreement will be
in addition to any liability which any Underwriter may otherwise have. The
Company acknowledges that the statements set forth in the last paragraph
of the cover page, in the paragraph under the heading “Underwriting
– Offering Price, Concessions and Reallowances” and in the
paragraph under the heading “Underwriting – Price Stabilization” relating
to stabilization activities in any Preliminary Prospectus or the Final
Prospectus constitute the only information furnished in writing by or on
behalf of the several Underwriters for inclusion in any Preliminary
Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus,
and the Representatives confirm that such statements are correct.
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(c) Promptly
after receipt by an indemnified party under this Section 8 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 8, 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 of the
indemnifying party’s choice at the indemnifying party’s expense
to represent the indemnified party in any action for which indemnification
is sought (in which case the indemnifying party shall not thereafter be
responsible for the reasonable fees and expenses of any separate counsel
retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be satisfactory to the
indemnified party. Notwithstanding the indemnifying party’s election
to appoint counsel to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel
(including local counsel) and the indemnifying party shall bear the
reasonable fees, costs and expenses of such separate counsel (it being
understood, however, that the indemnifying party shall not be liable for
the expenses of more than one separate counsel (other than local counsel)
for all indemnified parties) if (i) the indemnified party shall have
reasonably determined that use of counsel chosen by the indemnifying party
to represent the indemnified party would present such counsel with a
conflict of interest, (ii) the actual or potential defendants in, or
targets of, any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably
concluded that there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those
available to the indemnifying party, (iii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party
to represent the indemnified party within a reasonable time after notice
of the institution of such action or (iv) the indemnifying party shall
authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party. An indemnifying party will not, without the
prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not
the indemnified parties are actual or potential parties to such claim or
action) unless such settlement, compromise or consent includes an
unconditional release of each indemnified party from all liability arising
out of such claim, action, suit or proceeding.
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23
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(d) In
the event that the indemnity provided in paragraph (a) or (b) of this Section
8 is unavailable to or insufficient to hold harmless an indemnified party
for any reason, the Company and the Underwriters severally agree to
contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with
investigating or defending same) (collectively “Losses”) to
which the Company and one or more of the Underwriters may be subject in
such proportion as is appropriate to reflect the relative benefits
received by the Company on the one hand and by the Underwriters on the
other from the offering of the Securities; provided, however, that in no
case shall any Underwriter (except as may be provided in any agreement
among underwriters relating to the offering of the Securities) be
responsible for any amount in excess of the underwriting discount or
commission applicable to the Securities purchased by such Underwriter
hereunder. If the allocation provided by the immediately preceding
sentence is unavailable for any reason, the Company and the Underwriters
severally shall contribute in such proportion as is appropriate to reflect
not only such relative benefits but also the relative fault of the Company
on the one hand and of the Underwriters on the other in connection with
the statements or omissions which resulted in such Losses as well as any
other relevant equitable considerations. Benefits received by the Company
shall be deemed to be equal to the total net proceeds from the offering
(before deducting expenses) received by it, and benefits received by the
Underwriters shall be deemed to be equal to the total underwriting
discounts and commissions, in each case as set forth on the cover page of
the Final Prospectus. Relative fault shall be determined by reference to,
among other things, whether any untrue or any alleged untrue statement of a
material fact or omission or alleged omission to state a material fact
relates to information provided by the Company on the one hand or the
Underwriters on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent
such alleged untrue statement or omission. The Company and the
Underwriters agree that it would not be just and equitable if contribution
were determined by pro rata allocation or any other method of allocation
which does not take account of the equitable considerations referred to
above. Notwithstanding the provisions of this 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. For
purposes of this Section 8, each person who controls an Underwriter within
the meaning of either the Securities Act or the Exchange Act and each
director, officer, employee and agent of an Underwriter shall have the
same rights to contribution as such Underwriter, and each person who
controls the Company within the meaning of either the Securities Act or
the Exchange Act, each officer of the Company who shall have signed the
Registration Statement and each director of the Company shall have the
same rights to contribution as the Company, subject in each case to the
applicable terms and conditions of this paragraph (d).
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24
9. Default
by an Underwriter. If any one or more Underwriters shall fail to purchase
and pay for any of the Securities agreed to be purchased by such Underwriter or
Underwriters hereunder and such failure to purchase shall constitute a default
in the performance of its or their obligations under this Agreement, the
remaining Underwriters shall be obligated severally to take up and pay for (in
the respective proportions which the principal amount of Securities set forth
opposite their names in Schedule II hereto bears to the aggregate
principal amount of Securities set forth opposite the names of all the
remaining Underwriters) the Securities which the defaulting Underwriter or
Underwriters agreed but failed to purchase; provided, however,
that in the event that the aggregate principal amount of Securities which the
defaulting Underwriter or Underwriters agreed but failed to purchase shall
exceed 10% of the aggregate principal amount of Securities set forth in
Schedule II hereto, the remaining Underwriters shall have the right to
purchase all, but shall not be under any obligation to purchase any, of the
Securities, and if such nondefaulting Underwriters do not purchase all the
Securities, this Agreement will terminate without liability to any
nondefaulting Underwriter or the Company. In the event of a default by any
Underwriter as set forth in this Section 9, the Closing Date shall be postponed
for such period, not exceeding five Business Days, as the Representatives shall
determine in order that the required changes in the Registration Statement and
the Final Prospectus or in any other documents or arrangements may be effected.
Nothing contained in this Agreement shall relieve any defaulting Underwriter of
its liability, if any, to the Company and any nondefaulting Underwriter for
damages occasioned by its default hereunder.
10. Termination.
This Agreement shall be subject to termination in the absolute discretion of
the Representatives, by notice given to the Company prior to delivery of and
payment for the Securities, if prior to such time (i) trading in the Company’s
Common Stock shall have been suspended by the Commission or trading in
securities generally on the New York Stock Exchange shall have been suspended
or limited or minimum prices shall have been established on such Exchange, (ii)
a banking moratorium shall have been declared either by Federal or New York
State authorities, or (iii) there shall have occurred any outbreak or
escalation of hostilities, declaration by the United States of a national
emergency or war or other calamity or crisis, the effect of which on financial
markets is such as to make it, in the sole judgment of the Representatives,
impracticable or inadvisable to proceed with the offering or delivery of the
Securities as contemplated by any Preliminary Prospectus and the Final
Prospectus (exclusive of any supplement thereto after the Execution Time).
25
11. Representations
and Indemnities to Survive. The respective agreements, representations,
warranties, indemnities and other statements of the Company or its officers and
of the Underwriters set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation made by or on behalf
of any Underwriter or the Company or any of the officers, directors, employees,
agents or controlling persons referred to in Section 8 hereof, and will survive
delivery of and payment for the Securities. The provisions of Sections 7 and 8
hereof shall survive the termination or cancellation of this Agreement.
12. Notices.
All communications hereunder will be in writing and effective only on receipt,
and, if sent to the Representatives, will be mailed, delivered or telefaxed to
the Citigroup Global Markets Inc. General Counsel (fax no.: (000) 000-0000)
and confirmed to the General Counsel, Citigroup Global Markets Inc., at 000
Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, Attention: General
Counsel; and Credit Suisse Securities (USA) LLC (fax no.: (000)000-0000) and
confirmed to Credit Suisse Securities (USA) LLC, at Xxxxxx Xxxxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx, 00000, attention: Transactions Advisory Group; and X.X. Xxxxxx
Securities, High Grade Syndicate Desk (fax no.: (000) 000-0000) and confirmed
to X.X. Xxxxxx Securities Inc. at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000
Attention: High Grade Syndicate Desk — 8th floor; or, if sent to the
Company, will be mailed, delivered or telefaxed to (262) 565-4762and
confirmed to it at 0000 00xx Xxxxxx, Xxxxxxx, Xxxxxxxxx, 00000,
attention of the Legal Department.
13. Successors.
This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers, directors, employees,
agents and controlling persons referred to in Section 8 hereof, and no other
person will have any right or obligation hereunder.
14. No
Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and
sale of the Securities pursuant to this Agreement is an arm’s-length
commercial transaction between the Company, on the one hand, and the
Underwriters and any affiliate through which it may be acting, on the other,
(b) the Underwriters are acting as principal and not as an agent or fiduciary
of the Company and (c) the Company’s engagement of the Underwriters in
connection with the offering and the process leading up to the offering is as
independent contractors and not in any other capacity. Furthermore, the Company
agrees that it is solely responsible for making its own judgments in connection
with the offering (irrespective of whether any of the Underwriters has advised
or is currently advising the Company on related or other matters). The Company
agrees that it will not claim that the Underwriters have rendered advisory
services of any nature or respect, or owe an agency, fiduciary or similar duty
to the Company, in connection with such transaction or the process leading
thereto.
15. Integration.
This Agreement supersedes all prior agreements and understandings (whether
written or oral) between the Company and the Underwriters, or any of them, with
respect to the subject matter hereof.
16. 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.
26
17. Waiver
of Jury Trial. The Company hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.
18. Counterparts.
This Agreement may be signed in one or more counterparts, each of which shall
constitute an original and all of which together shall constitute one and the
same agreement.
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.
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“Base
Prospectus” shall mean the base prospectus referred to in paragraph 1(a) above
contained in the Registration Statement at the Execution Time.
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“Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a
day on which banking institutions or trust companies are authorized or obligated by law
to close in New York City.
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“Commission”shall
mean the Securities and Exchange Commission.
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“Disclosure
Package” shall mean (i) the Base Prospectus, (ii) the Preliminary Prospectus used
most recently prior to the Execution Time, (iii) the Issuer Free Writing Prospectuses, if
any, identified in Schedule III hereto, (iv) the final term sheet prepared and filed
pursuant to Section 5(b) hereto, if any, and (v) any other Free Writing Prospectus that
the parties hereto shall hereafter expressly agree in writing to treat as part of the
Disclosure Package.
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“Effective
Date” shall mean each date and time that the Registration Statement and any
post-effective amendment or amendments thereto became or becomes effective.
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“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.
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“Execution
Time” shall mean the date and time that this Agreement is executed and delivered by
the parties hereto.
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“Final
Prospectus” shall mean the prospectus supplement relating to the Securities that was
first filed pursuant to Rule 424(b) after the Execution Time, together with the Base
Prospectus.
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“Free
Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405.
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“Issuer
Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in
Rule 433.
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27
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“Material
Adverse Effect” shall mean a material adverse change or any development that would
reasonably be expected to result in a material adverse change, in or affecting the
business, financial condition, results of operations, properties or management of
the Company and its subsidiaries, taken as a whole.
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“Preliminary
Prospectus” shall mean any preliminary prospectus supplement to the Base Prospectus
referred to in paragraph 1(a) above which is used prior to the filing of the Final
Prospectus, together with the Base Prospectus.
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“Registration
Statement” shall mean the registration statement referred to in paragraph 1(a)
above, including exhibits and financial statements and any prospectus supplement relating
to the Securities that is filed with the Commission pursuant to Rule 424(b) and deemed
part of such registration statement pursuant to Rule 430B, as amended on each Effective
Date and, in the event any post-effective amendment thereto becomes effective prior to
the Closing Date, shall also mean such registration statement as so amended.
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“Rule
158", “Rule 163", “Rule 164", “Rule 172", “Rule
405", “Rule 415", “Rule 424", “Rule 430B” and
“Rule 433” refer to such rules under the Securities Act.
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“Securities
Act” shall mean the Securities Act of 1933, as amended and the rules and regulations
of the Commission promulgated thereunder.
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“Significant
Subsidiary” shall mean a subsidiary, including its subsidiaries, of the Company
which meets any of the following conditions:
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|
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• |
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The Company’s and its other subsidiaries’ investments in and advances to the
subsidiary exceed 10% of the total assets of the Company and its subsidiaries consolidated
as of the end of the Company’s most recently completed fiscal year; or |
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|
• |
|
The Company’s and its other subsidiaries’ proportionate share of the total
assets (after intercompany eliminations) of the subsidiary exceeds 10% of the total assets
of the Company and its subsidiaries consolidated as of the end of the Company’s most
recently completed fiscal year; or |
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|
• |
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The Company’s and its other subsidiaries’ equity in the income from continuing
operations before income taxes, extraordinary items and cumulative effect of a change in
accounting principle of the subsidiary exceeds 10% of such income of the Company and its
subsidiaries consolidated for the Company’s most recently completed fiscal year. |
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“Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, as amended and the rules
and regulations of the Commission promulgated thereunder.
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“Well-Known
Seasoned Issuer” shall mean a well-known seasoned issuer, as defined in Rule 405.
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28
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.
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Very truly yours, |
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Snap-on Incorporated |
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By: /s/ Xxxxxx X. Xxxxx |
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Name: Xxxxxx X. Xxxxx |
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Title: Senior Vice President-Finance and Chief Financial Officer |
29
The foregoing Agreement is
hereby confirmed and accepted
as of the date specified in
Schedule I hereto.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
X. X. Xxxxxx Securities Inc.
By: Citigroup Global
Markets Inc.
By: /s/ Xxxxx X. Xxxxxxxxx
Name: Xxxxx X. Xxxxxxxxx
Title: Director
By: Credit Suisse
Securities (USA) LLC
By: /s/ Xxxxxx Xxxxxxx
Name: Xxxxxx Xxxxxxx
Title: Director
By: X. X. Xxxxxx
Securities Inc.
By: /s/ Xxxxxx Xxxxxxxxx
Name: Xxxxxx Xxxxxxxxx
Title: Vice President
For themselves and the other
several Underwriters, if any,
named in Schedule II to the
foregoing Agreement.
SCHEDULE I
Underwriting Agreement
dated January 9, 2007
Registration Statement No.
333-139863
Representative(s): Citigroup Global
Markets Inc., Credit Suisse Securities (USA) LLC, X. X. Xxxxxx Securities Inc.
Title, Purchase Price and Brief
Description of Securities:
Title: |
Floating Rate Notes due 2010 |
5.50% Notes due 2017 |
|
|
|
Principal amount: |
$ 150,000,000 |
$ 150,000,000 |
|
|
|
Purchase price (include accrued interest or |
$ 149,475,000 |
$ 148,978,500 |
amortization, if any): |
|
|
|
|
|
Redemption provisions: |
Redeemable at 100% beginning |
Make Whole Call |
|
January 14, 2008 |
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Closing Date, Time and Location:
January 12, 2007 at 10:00 a.m. at Shearman & Sterling LLP, 000 Xxxxxxxxx Xxxxxx, Xxx
Xxxx, XX 00000
Type of Offering: Non-delayed
Date referred to in Section 5(i)
after which the Company may offer or sell debt securities issued or guaranteed by the
Company without the consent of the Representative(s): February 12, 2007
SCHEDULE II
Underwriters |
Principal Amount of
Floating Rate Notes
due 2010 to
be Purchased |
Principal Amount of
5.50% Notes due 2017 to
be Purchased |
|
|
|
Citigroup Global Markets Inc. |
|
|
$ | 50,500,000 |
|
$ | 50,500,000 |
|
X. X. Xxxxxx Securities Inc. | | |
| 50,500,000 |
|
| 50,500,000 |
|
Credit Suisse Securities (USA) LLC | | |
| 27,500,000 |
|
| 27,500,000 |
|
Barclays Capital Inc. | | |
| 4,000,000 |
|
| 4,000,000 |
|
ABN AMRO Incorporated | | |
| 2,500,000 |
|
| 2,500,000 |
|
BBVA Securities, Inc. | | |
| 2,500,000 |
|
| 2,500,000 |
|
Fifth Third Securities, Inc. | | |
| 2,500,000 |
|
| 2,500,000 |
|
Xxxxx Xxxxxxx & Co. | | |
| 2,500,000 |
|
| 2,500,000 |
|
RBC Capital Markets Corporation | | |
| 2,500,000 |
|
| 2,500,000 |
|
SG Americas Securities, LLC | | |
| 2,500,000 |
|
| 2,500,000 |
|
The Xxxxxxxx Capital Group, L.P. | | |
| 2,500,000 |
|
| 2,500,000 |
|
|
|
|
Total | | |
$ | 150,000,000 |
|
$ | 150,000,000 |
|
|
|
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SCHEDULE III
Schedule of Free Writing
Prospectuses included in the Disclosure Package
None.
SCHEDULE IV
PRICING TERM SHEETS
Term Sheet for
Floating Rate Notes due 2010
Snap-on Incorporated
Issuer: |
Snap-on Incorporated |
Principal Amount: |
$150,000,000 |
Interest Rate Basis: |
3-month USD LIBOR |
Spread: |
Plus 13 basis points |
Initial Base Rate: |
3-month USD LIBOR, as determined on January 10, 2007 |
Maturity Date: |
January 12, 2010 |
First Call Date: |
January 14, 2008 |
Change of Control: |
Put at 101% of principal plus accrued interest |
Price to Public: |
100.000% |
Interest Payment Date: |
Quarterly on January 12, April 12, July 12 and
October 12 commencing on April 12, 2007 and
ending on the Maturity Date |
Settlement Date: |
T+3; January 12, 2007 |
Expected Ratings: |
Xxxxx'x: A3 S&P: A- |
Joint Book-Running Managers: |
Citigroup Global Markets Inc. |
|
Credit Suisse Securities (USA) LLC |
|
X.X. Xxxxxx Securities Inc. |
Co-Managers: |
Barclays Capital Inc. |
|
ABN AMRO Incorporated |
|
BBVA Securities, Inc. |
|
Fifth Third Securities, Inc. |
|
Xxxxx Xxxxxxx & Co. |
|
RBC Capital Markets Corporation |
|
Societe Generale |
|
The Xxxxxxxx Capital Group, L.P. |
The security ratings above are not a
recommendation to buy, sell or hold the securities offered hereby. The ratings may be
subject to revision or withdrawal at any time by the assigning rating organization. Each
of the security ratings above should be evaluated independently of any other security
rating.
The issuer has filed a
registration statement (including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should read the prospectus in that
registration statement and the other documents that the issuer has filed with the SEC for
more complete information about the issuer and this offering. You may get these documents
for free by visiting XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the
issuer, any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at
0-000-000-0000, Credit Suisse Securities (USA) LLC at 1-800-221-1037 or X.X. Xxxxxx
Securities Inc. collect at 0-000-000-0000.
Term Sheet for 5.50%
Notes due 2017
Snap-on Incorporated
Issuer: |
Snap-on Incorporated |
Principal Amount: |
$150,000,000 |
Maturity Date: |
January 15, 2017 |
Treasury Benchmark: |
4.625% due November 15, 2016 |
US Treasury Yield: |
4.654% |
Spread to Treasury: |
Plus 85 basis points |
Interest Payment Dates: |
Semi-annually on January 15 and July 15 commencing on July 15, 2007 and ending on the Maturity Date |
Make-whole Call: |
At any time at a discount rate of Treasury plus 15 basis points |
Change of Control: |
Put at 101% of principal plus accrued interest |
Settlement Date: |
T+3; January 12, 2007 |
Expected Ratings: |
Xxxxx'x: A3 S&P: A- |
Joint Book-Running Managers: |
Citigroup Global Markets Inc. |
|
Credit Suisse Securities (USA) LLC |
|
X.X. Xxxxxx Securities Inc. |
Co-Managers: |
Barclays Capital Inc. |
|
ABN AMRO Incorporated |
|
BBVA Securities, Inc. |
|
Fifth Third Securities, Inc. |
|
Xxxxx Xxxxxxx & Co. |
|
RBC Capital Markets Corporation |
|
Societe Generale |
|
The Xxxxxxxx Capital Group, L.P. |
The security ratings above are not a
recommendation to buy, sell or hold the securities offered hereby. The ratings may be
subject to revision or withdrawal at any time by the assigning rating organization. Each
of the security ratings above should be evaluated independently of any other security
rating.
The issuer has filed a
registration statement (including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should read the prospectus in that
registration statement and the other documents that the issuer has filed with the SEC for
more complete information about the issuer and this offering. You may get these documents
for free by visiting XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the
issuer, any underwriter or any dealer participating in the offering will arrange to send
you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at
0-000-000-0000, Credit Suisse Securities (USA) LLC at 1-800-221-1037 or X.X. Xxxxxx
Securities Inc. collect at 0-000-000-0000.