ADC Telecommunications, Inc. ___% Convertible Subordinated Notes due 2015 ___% Convertible Subordinated Notes due 2017 UNDERWRITING AGREEMENT
Exhibit 1.1
$
ADC Telecommunications, Inc.
___% Convertible Subordinated Notes due 2015
___% Convertible Subordinated Notes due 2017
_______, 2007
Credit Suisse Securities (USA) LLC
Xxxxxx Xxxxxxx Xxxxxx,
Xxx Xxxx, X.X. 10010-3629
Xxxxxx Xxxxxxx Xxxxxx,
Xxx Xxxx, X.X. 10010-3629
Xxxxxx Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, XX 00000
0000 Xxxxxxxx
Xxx Xxxx, XX 00000
As Representatives of the Several Underwriters,
Dear Sirs:
1. Introductory. ADC Telecommunications, Inc., a Minnesota corporation (“Company”), agrees
with the several Underwriters named in Schedule A hereto (“Underwriters”) to issue and sell to the
several Underwriters U.S.$ principal amount of its ___% Convertible Subordinated Notes due
2015 (the “2015 Notes”) and U.S.$ principal amount of its ___% Convertible Subordinated Notes
due 2017 (the “2017 Notes”) (collectively, “Firm Securities”), and also agrees to issue and sell to
the Underwriters, at the option of the Underwriters, an aggregate of not more than U.S.$
additional principal amount of the 2015 Notes and U.S.$ additional principal amount of the
2017 Notes (collectively, “Optional Securities”) as set forth below. The 2015 Notes and the 2017
Notes are herein collectively referred to as the “Securities.” All of the 2015 Notes are to be
issued under an indenture, dated as of ___, 2007, and all of the 2017 Notes are all to be issued
under a separate indenture, also dated as of ___, 2007. Both such indentures (each an
“Indenture” and collectively the “Indentures”) shall be between the Company and U.S. Bank National
Association, as Trustee. The Firm Securities and the Optional Securities are herein collectively
called the “Offered Securities”.
2. Representations and Warranties of the Company. The Company represents and warrants to,
and agrees with, the several Underwriters that:
(a) Filing and Effectiveness of Registration Statement; Certain Defined Terms. The
Company has filed with the Commission a registration statement on Form S-3 (No. 333-___),
including a related prospectus or prospectuses, covering the registration of the Offered
Securities under the Act, which has become effective. “Registration Statement” at any
particular time means such registration statement in the form then filed with the
Commission, including any amendment
thereto, any document incorporated by reference therein and all 430B Information, if
applicable, and all 430C Information with respect to such registration statement, that in
any case has not been superseded or modified. “Registration Statement” without reference
to a time means the Registration Statement as of the Effective Time. For purposes of this
definition, 430B Information shall be considered to be included in the Registration
Statement as of the time specified in Rule 430B.
For purposes of this Agreement:
“430B Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430B(e) or retroactively deemed to be a part
of the Registration Statement pursuant to Rule 430B(f).
“430C Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430C.
“Act” means the Securities Act of 1933, as amended.
“Applicable Time” means :00 pm (Eastern time) on the date of this
Agreement.
“Closing Date” has the meaning defined in Section 3 hereof.
“Commission” means the Securities and Exchange Commission.
“Effective Time” of the Registration Statement relating to the Offered Securities
means the time of the first contract of sale for the Offered Securities.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Final Prospectus” means the Statutory Prospectus that discloses the public offering
price, other 430B Information and other final terms of the Offered Securities and otherwise
satisfies Section 10(a) of the Act.
“General Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is intended for general distribution to prospective investors, as evidenced by its
being so specified in Schedule B to this Agreement.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as
defined in Rule 433, relating to the Offered Securities in the form filed or required to be
filed with the Commission or, if not required to be filed, in the form retained in the
Company’s records pursuant to Rule 433(g).
“Limited Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not a General Use Issuer Free Writing Prospectus.
“Rules and Regulations” means the rules and regulations of the Commission.
“Securities Laws” means, collectively, the Xxxxxxxx-Xxxxx Act of 2002
(“Xxxxxxxx-Xxxxx”), the Act, the Exchange Act, the Trust Indenture Act, the Rules and
Regulations, the auditing principles, rules, standards and practices applicable to auditors
of “issuers” (as defined in Xxxxxxxx-Xxxxx) promulgated or approved by the Public Company
Accounting Oversight Board to the extent such principles, rules, standards and practices
apply to the “issuer” as opposed to the auditor, and, as applicable, the rules of the New
York Stock Exchange and the NASDAQ Stock Market (“Exchange Rules”).
“Significant Subsidiaries” means ADC Connectivity Solutions LLC (Minnesota), ADC
Wireless Solutions LLC (Minnesota), ADC Telecommunications Sales, Inc. (Minnesota), ADC
International OUS, Inc. (Minnesota), ADC Communications
(UK) Holding Ltd., (UK) ADC EMEA Holding
GmbH (Germany), Fiber Optic Network Solutions Corporation (Massachusetts), ADC Gmbh
(Germany), ADC Telecommunications (Scotland) Limited (Scotland).
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“Statutory Prospectus” with reference to any particular time means the prospectus
relating to the Offered Securities that is included in the Registration Statement
immediately prior to that time, including all 430B Information and all 430C Information
with respect to the Registration Statement. For purposes of the foregoing definition, 430B
Information shall be considered to be included in the Statutory Prospectus as of the actual
time that form of prospectus is filed with the Commission pursuant to Rule 424(b) or
Rule 462(c) and not retroactively.
“Trust Indenture Act” means the Trust Indenture Act of 1939.
Unless otherwise specified, a reference to a “rule” is to the indicated rule under the
Act.
“Underlying Shares” shall mean shares of the Company’s common stock, par value $0.20
per share, into which the Securities are convertible.
Any reference to any preliminary prospectus or the Final Prospectus shall be deemed to refer
to and include any documents filed under the Exchange Act and incorporated by reference in such
preliminary prospectus or Final Prospectus, as the case may be, as of the date of such preliminary
prospectus or Final Prospectus, as the case may be. Any reference to any amendment or supplement
to any preliminary prospectus or the Final Prospectus shall be deemed to refer to and include any
documents filed after the date of such preliminary prospectus or Final Prospectus, as the case may
be, under the Exchange Act, and incorporated by reference in such preliminary prospectus or Final
Prospectus, as the case may be; and any reference to any amendment to the Registration Statement
shall be deemed to refer to and include any annual report of the Company filed pursuant to Section
13(a) or 15(d) of the Exchange Act after the effective date of the Registration Statement that is
incorporated by reference in the Registration Statement.
(b) Compliance with Securities Act Requirements. (i) (A) At the time the
Registration Statement initially became effective, (B) at the time of each amendment
thereto for the purposes of complying with Section 10(a)(3) of the Act (whether by
post-effective amendment, incorporated report or form of prospectus) and (C) at the
Effective Time relating to the Offered Securities, the Registration Statement conformed and
will conform in all material respects to the requirements of the Act, the Trust Indenture
Act and the Rules and Regulations. (ii) (A) At the time the Registration Statement
initially became effective, (B) at the time of each amendment thereto for the purposes of
complying with Section 10(a)(3) of the Act (whether by post-effective amendment,
incorporated report or form of prospectus), (C) at the Effective Time relating to the
Offered Securities and (D) on the Closing Date, the Registration Statement did not and will
not include any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading.
(iii) (A) On its date, (B) at the time of filing of the Final Prospectus pursuant to
Rule 424(b) and (C) on the Closing Date, the Final Prospectus will conform in all respects
to the requirements of the Act, the Trust Indenture Act and the Rules and Regulations and
will not include any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The first sentence of this
Section 1(b) does not apply to (i) that part of the Registration Statement which
constitutes the Statement of Eligibility and Qualification (“Form T-1”) of the Trustee
under the Trust Indenture Act or (ii) statements in or omissions from any such document
based upon written information furnished to the Company by any Underwriter through the
Representatives specifically for use therein, it being understood and agreed that the only
such information is that described as such in Section 8(b) hereof.
(c) Automatic Shelf Registration Statement. (i) Well-Known Seasoned Issuer Status.
(A) At the time of initial filing of the Registration Statement, (B) at the time of the
most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the
Act (whether such amendment was by post-effective amendment, incorporated report filed
pursuant to Section 13 or 15(d) of the Exchange Act or form of prospectus), and (C) 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
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relating to the Offered Securities in reliance on the exemption of Rule 163, the
Company was a “well known seasoned issuer” as defined in Rule 405, including not having
been an “ineligible issuer” as defined in Rule 405.
(ii) Effectiveness of Automatic Shelf Registration Statement. The
Registration Statement is an “automatic shelf registration statement,” as defined
in Rule 405, that initially became effective within three years of the date of this
Agreement.
(iii) Eligibility to Use Automatic Shelf Registration Form. The Company has
not received from the Commission any notice pursuant to Rule 401(g)(2) objecting to
use of the automatic shelf registration statement form. If at any time when
Offered Securities remain unsold by the Underwriters the Company receives from the
Commission a notice pursuant to Rule 401(g)(2) or otherwise ceases to be eligible
to use the automatic shelf registration statement form, the Company will (i)
promptly notify the Representatives, (ii) promptly file a new registration
statement or post-effective amendment on the proper form relating to the Offered
Securities, in a form satisfactory to the Representatives, (iii) use its best
efforts to cause such registration statement or post-effective amendment to be
declared effective as soon as practicable, and (iv) promptly notify the
Representatives of such effectiveness. The Company will take all other action
necessary or appropriate to permit the public offering and sale of the Offered
Securities to continue as contemplated in the registration statement that was the
subject of the Rule 401(g)(2) notice or for which the Company has otherwise become
ineligible. References herein to the Registration Statement shall include such new
registration statement or post-effective amendment, as the case may be.
(iv) Filing Fees. The Company has paid or shall pay the required Commission
filing fees relating to the Offered Securities within the time required by Rule
456(b)(1)(i) without regard to the proviso therein and otherwise in accordance with
Rules 456(b) and 457(r).
(d) Ineligible Issuer Status. (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 Offered Securities and (ii) at the date
of this Agreement, the Company was not and is not an “ineligible issuer,” as defined in
Rule 405, including (x) the Company or any other subsidiary in the preceding three years
not having been convicted of a felony or misdemeanor or having been made the subject of a
judicial or administrative decree or order as described in Rule 405 and (y) the Company in
the preceding three years not having been the subject of a bankruptcy petition or
insolvency or similar proceeding, not having had a registration statement be the subject of
a proceeding under Section 8 of the Act and not being the subject of a proceeding under
Section 8A of the Act in connection with the offering of the Securities, all as described
in Rule 405.
(e) General Disclosure Package. As of the Applicable Time, neither (i) the General
Use Issuer Free Writing Prospectus(es) issued at or prior to the Applicable Time and the
preliminary prospectus, dated ___, 2007 (which is the most recent Statutory
Prospectus distributed to investors generally), and the other information, if any, stated
in Schedule B to this Agreement to be included in the General Disclosure Package, all
considered together (collectively, the “General Disclosure Package”), nor (ii) any
individual Limited Use Issuer Free Writing Prospectus, when considered together with the
General Disclosure Package, included any untrue statement of a material fact or omitted to
state any material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The preceding sentence does
not apply to statements in or omissions from the General Disclosure Package, any Statutory
Prospectus or any Issuer Free Writing Prospectus in reliance upon and in conformity with
written information furnished to the Company by any Underwriter through the
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Representatives specifically for use therein, it being understood and agreed that the
only such information furnished by any Underwriter consists of the information described as
such in Section 8(b) hereof.
(f) Incorporated Documents. The documents incorporated by reference in the General
Disclosure Package and the Final Prospectus, when they became effective or were filed with
the Commission, as the case may be, conformed in all material respects to the requirements
of the Exchange Act; such documents, when they became effective or were filed with the
Commission, as the case may be, on the date of the Final Prospectus and on the Closing
Date, did not and will not include an untrue statement of a material fact or omit to state
a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; any further documents so filed and incorporated
by reference in the General Disclosure Package and the Final Prospectus or any further
amendment or supplement thereto, when such documents become effective or are filed with the
Commission, as the case may be, will conform in all material respects to the requirements
of the Exchange Act; and any such documents when they become effective or are filed with
the Commission, as the case may be, on the date of the Final Prospectus and on the Closing
Date, will not include an untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
(g) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the public offer and sale
of the Offered Securities or until any earlier date that the Company notified or notifies
Credit Suisse Securities (USA) LLC (“Credit
Suisse”) and Xxxxxx Xxxxxxx & Co. Incorporated as described in the next sentence, did
not, does not and will not include any information that conflicted, conflicts or will
conflict with the information then contained in the Registration Statement. If at any time
following issuance of an Issuer Free Writing Prospectus there occurred or occurs an event
or development as a result of which such Issuer Free Writing Prospectus conflicted or would
conflict with the information then contained in the Registration Statement or as a result
of which such Issuer Free Writing Prospectus, if republished immediately following such
event or development, would include an untrue statement of a material fact or omitted or
would omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, (i) the Company
has promptly notified or will promptly notify the Representatives and (ii) the Company has
promptly amended or will promptly amend or supplement such Issuer Free Writing Prospectus
to eliminate or correct such conflict, untrue statement or omission.
(h) Good Standing of the Company. The Company has been duly incorporated and is
validly existing and in good standing under the laws of the State of Minnesota, with power
and authority (corporate and other) to own its properties and conduct its business as
described in the General Disclosure Package; and the Company is duly qualified to do
business as a foreign corporation in good standing in all other jurisdictions in which its
ownership or lease of property or the conduct of its business requires such qualification,
other than where the failure to be so qualified or in good standing would not, individually
or in the aggregate, result in a material adverse effect on the condition (financial or
otherwise), results of operations, business or properties of the Company and its
subsidiaries taken as a whole (“Material Adverse Effect”).
(i) Subsidiaries. Each of the Company’s Significant Subsidiaries has been duly
incorporated and is validly existing and in good standing under the laws of the
jurisdiction of its incorporation (where such concept is recognized under such laws or
under the equivalent standards where such concept is not recognized under such laws), with
power and authority (corporate and other) to own its properties and conduct its business as
described in the General Disclosure Package; and each subsidiary of the Company is duly
qualified to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification, other than where the failure to be so qualified or in good
5
standing would not, individually or in the aggregate, have a Material Adverse Effect;
all of the issued and outstanding capital stock of each Significant Subsidiary of the
Company has been duly authorized and validly issued and is fully paid and nonassessable;
and the capital stock of each Significant Subsidiary owned by the Company, directly or
through subsidiaries, is owned free from liens, encumbrances and defects. The Significant
Subsidiaries include all “significant subsidiaries” of the Company, as such term is defined
in Rule 1-02(w) of Regulation S-X, as promulgated by the Commission.
(j) Execution and Delivery of Indentures, Offered Securities. Each of the Indentures
has been duly authorized and has been duly qualified under the Trust Indenture Act; the
Offered Securities have been duly authorized and, when the Offered Securities are delivered
and paid for pursuant to this Agreement on each Closing Date, each of the Indentures will
have been duly executed and delivered, such Offered Securities will have been duly
executed, authenticated, issued and delivered, will conform to the information in the
General Disclosure Package and to the description of such Offered Securities contained in
the Final Prospectus, and the Indentures and such Offered Securities will constitute valid
and legally binding obligations of the Company, enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights and to
general equity principles.
(k) Underlying Shares. When the Offered Securities are delivered and paid for
pursuant to this Agreement on each Closing Date, such Offered Securities will be
convertible into the Underlying Shares of the Company in accordance with the terms of the
applicable Indenture; the Underlying Shares initially issuable upon conversion of such
Offered Securities have been duly authorized and reserved for issuance upon such
conversion, conform to the information in the General Disclosure Package and to the
description of such Underlying Shares contained in the Final Prospectus; the authorized
equity capitalization of the Company is as set forth in the General Disclosure Package; all
outstanding shares of capital stock of the Company are, and when issued upon conversion the
Underlying Shares will be validly issued, fully paid and nonassessable; the stockholders of
the Company have no preemptive rights with respect to the Offered Securities or the
Underlying Shares, and none of the outstanding shares of capital stock of the Company have
been issued in violation of any preemptive or similar rights of any security holder.
(l) No Finder’s Fee. Except as disclosed in the General Disclosure Package, there are
no contracts, agreements or understandings between the Company and any person that would
give rise to a valid claim against the Company or any Underwriter for a brokerage
commission, finder’s fee or other like payment as a result of any transactions contemplated
by this Agreement.
(m) Registration Rights. Except as disclosed in the General Disclosure Package, there
are no contracts, agreements or understandings between the Company and any person granting
such person the right to require the Company to file a registration statement under the Act
with respect to any securities of the Company owned or to be owned by such person or to
require the Company to include such securities in the securities registered pursuant to a
Registration Statement or in any securities being registered pursuant to any other
registration statement filed by the Company under the Act (collectively, “registration
rights”), and any person to whom the Company has granted registration rights has agreed not
to exercise such rights until after the expiration of the Lock-Up Period referred to in
Section 5 hereof.
(n) Listing. The Underlying Shares have been approved for listing on the NASDAQ
Global Select Market, subject to notice of issuance.
(o) Absence of Further Requirements. No consent, approval, authorization, or order
of, or filing or registration with, any person (including any governmental agency or body
or any court) is required for the consummation of the transactions contemplated by this
Agreement or either of the
6
Indentures in connection with the offering, issuance and sale of the Offered
Securities and Underlying Shares by the Company except such as have been obtained, or made
and such as may be required under applicable state securities laws or blue sky laws.
(p) Title to Property. Except as disclosed in the General Disclosure Package or such
as do not and would not, individually or in the aggregate, have a Material Adverse Effect,
the Company and its subsidiaries have good and marketable title to all real properties and
all other properties and assets owned by them, in each case free from liens, charges,
encumbrances and defects and, except as disclosed in the General Disclosure Package or such
as do not and would not, individually or in the aggregate, have a Material Adverse Effect,
the Company and its subsidiaries hold any leased real or personal property necessary to
their business under valid and enforceable leases with no terms or provisions that would
interfere with the use made or to be made thereof by them.
(q) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of each of the Indentures and this Agreement, and the issuance and
sale of the Offered Securities and Underlying Shares and compliance with the terms and
provisions thereof will not result in a breach or violation of any of the terms and
provisions of, or constitute a default or a Debt Repayment Triggering Event (as defined
below) under, or result in the imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any of its subsidiaries pursuant to, (i) the charter
or by-laws of the Company or any of its Significant Subsidiaries, (ii) any statute, rule,
regulation or order of any governmental agency or body or any court, domestic or foreign,
having jurisdiction over the Company or any of its subsidiaries or any of their properties,
or (iii) any agreement or instrument to which the Company or any of its subsidiaries is a
party or by which the Company or any of its subsidiaries is bound or to which any of the
properties of the Company or any of its subsidiaries is subject , except, with respect to
clauses (ii) and (iii) of this paragraph only, such breaches, defaults, liens, charges,
encumbrances or violations that would not result in a Material Adverse Effect; a “Debt
Repayment Triggering Event” means any event or condition that gives, or with the giving of
notice or lapse of time would give, the holder of any note, debenture, or other evidence of
indebtedness (or any person acting on such holder’s behalf) the right to require the
repurchase, redemption or repayment of all or a portion of such indebtedness by the Company
or any of its subsidiaries.
(r) Absence of Existing Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is in violation of its respective charter or by-laws or in default (or with
the giving of notice or lapse of time would be in default) under any existing obligation,
agreement, covenant or condition contained in any indenture, loan agreement, mortgage,
lease or other agreement or instrument to which any of them is a party or by which any of
them is bound or to which any of the properties of any of them is subject, except such
defaults that would not, individually or in the aggregate, result in a Material Adverse
Effect.
(s) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.
(t) Possession of Licenses and Permits. The Company and its subsidiaries possess, and
are in compliance with the terms of, all adequate certificates, authorizations, franchises,
licenses and permits (“Licenses”) necessary or material to the conduct of the business now
conducted or proposed in the General Disclosure Package to be conducted by them, except
where the failure to possess such Licenses would not have a Material Adverse Effect, and
have not received any notice of proceedings relating to the revocation or modification of
any Licenses that, if determined adversely to the Company or any of its subsidiaries, would
individually or in the aggregate have a Material Adverse Effect.
7
(u) Absence of Labor Dispute. No labor dispute with the employees of the Company or
any of its subsidiaries exists or, to the knowledge of the Company, is imminent, except as
would not have a Material Adverse Effect.
(v) Possession of Intellectual Property. Except as would not, individually or in the
aggregate, have a Material Adverse Effect, the Company and its subsidiaries own, possess,
license or have other rights to use, on reasonable terms, all patents, patent applications,
trade and service marks, trade and service mark registrations, trade names, patent rights,
copyrights, licenses, inventions, trade secrets, technology, know-how and other
intellectual property (collectively, the “Intellectual Property”) necessary for the conduct
of the Company’s business as now conducted or as described in each of the General
Disclosure Package and the Final Prospectus. Except as set forth in the General Disclosure
Package and as would not, individually or in the aggregate, have a Material Adverse Effect,
(A) there are no rights of third parties to any of the Intellectual Property owned by the
Company or its subsidiaries other than non-exclusive licenses granted in the ordinary
course of business; (B) there is no infringement by third parties of any such Intellectual
Property owned by or exclusively licensed to the Company or its subsidiaries; (C) there is
no pending or, to the knowledge of the Company, threatened action, suit, proceeding or
claim by others challenging the Company’s or any subsidiary’s rights in or to any
Intellectual Property; (D) there is no pending or, to the knowledge of the Company,
threatened action, suit, proceeding or claim by others challenging the validity or scope of
any such Intellectual Property, (E) there is no pending or, to the knowledge of the
Company, threatened action, suit, proceeding or claim by others that the Company’s business
as now conducted infringes or otherwise violates any patent, trademark, copyright, trade
secret or other proprietary rights of others, and (F) none of the Intellectual Property
used by the Company or its subsidiaries in their business has been obtained or is being
used by the Company or any of its subsidiaries in violation of any contractual obligation
binding on the Company or any of its subsidiaries in violation of the rights of any
persons.
(w) Environmental Laws. Except as would not, individually or in the aggregate, result
in a Material Adverse Effect, (A) neither the Company nor any of its subsidiaries is in
violation of any federal, state, local or foreign statute, law, rule, regulation,
ordinance, code, policy or rule of common law or any judicial or administrative
interpretation thereof including any judicial or administrative order, consent, decree or
judgment, relating to pollution or protection of human health, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata) or wildlife, including, without limitation, laws and regulations relating to the
release or threatened release of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum or petroleum products (collectively, “Hazardous
Materials”) or to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials (collectively, “Environmental
Laws”), (B) to the Company’s knowledge, neither the Company nor any of its subsidiaries
owns, occupies, operates or uses any real property contaminated with Hazardous Materials,
(C) neither the Company nor any of its subsidiaries is conducting or funding any
investigation, remediation, remedial action or monitoring of actual or suspected Hazardous
Materials in the environment; (D) the Company and its subsidiaries have all permits,
authorizations and approvals required under any applicable Environmental Laws and are each
in compliance with their requirements, (E) there are no pending or, to the Company’s
knowledge, threatened administrative, regulatory or judicial actions, suits, demands,
demand letters, claims, liens, notices of noncompliance or violation, investigation or
proceedings relating to any Environmental Law against the Company or any of its
subsidiaries and (F) to the Company’s knowledge, there are no events or circumstances that
might reasonably be expected to form the basis of an order for clean up or remediation, or
an action, suit or proceeding by any private party or governmental body or agency, against
or affecting the Company or any of its subsidiaries relating to Hazardous Materials or any
Environmental Laws.
8
(x) Tax Matters. The Company and its consolidated subsidiaries have filed all federal,
state, local and non-U.S. tax returns that are required to be filed or have requested
extensions thereof (except in any case in which the failure so to file would not have a
Material Adverse Effect); and the Company and its subsidiaries have paid all taxes
(including any assessments, fines or penalties) required to be paid by them, except for any
such taxes, assessments, fines or penalties currently being contested in good faith or as
would not, individually or in the aggregate, have a Material Adverse Effect.
(y) Accurate Disclosure. The statements in the General Disclosure Package and the
Final Prospectus under the headings “Material U.S. Federal Tax Consequences”, “Description
of Notes” and “Description of Capital Stock”, insofar as such statements summarize legal
matters, agreements, documents or proceedings discussed therein, fairly present and
summarize the matters referred to therein.
(z) Absence of Manipulation. The Company has not taken, directly or indirectly, any
action that is designed to or that has constituted or that would reasonably be expected to
cause or result in the stabilization or manipulation of the price of any of the securities
of the Company to facilitate the sale or resale of the Offered Securities; provided,
however, that this paragraph shall not apply to any stabilization activities conducted by
the Underwriters.
(aa) Internal Controls and Compliance with the Xxxxxxxx-Xxxxx Act. Except as set
forth in the General Disclosure Package, the Company, its subsidiaries and, to the
Company’s knowledge, the Company’s Board of Directors (the “Board”) are in compliance with
Xxxxxxxx-Xxxxx and all applicable Exchange Rules. The Company maintains effective internal
controls over financial reporting and effective disclosure controls and procedures, each as
defined in Rule 13a-15 under the Exchange Act and a system of internal controls over
accounting matters (collectively, “Internal Controls”) that are sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with U.S. Generally Accepted Accounting
Principles and to maintain accountability for assets, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Internal
Controls are overseen by the Audit Committee (the “Audit Committee”) of the Board in
accordance with Exchange Rules. Since the date of the latest audited financial statements
included in the General Disclosure Package and the Prospectus, there has been (i) no
material weakness in the Company’s internal control over
financial reporting (whether or not remediated) and (ii) no change in the Company’s internal control over financial reporting that
has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.
(bb) Litigation. Except as disclosed in the General Disclosure Package, there are no
pending actions, suits or proceedings (including any inquiries or investigations by any
court or governmental agency or body, domestic or foreign) against or affecting the
Company, any of its subsidiaries or any of their respective properties that, if determined
adversely to the Company or any of its subsidiaries, would reasonably be expected to
individually or in the aggregate, have a Material Adverse Effect, or would materially and
adversely affect the ability of the Company to perform its obligations under this Agreement
or either of the Indentures, or which are otherwise material in the context of the sale of
the Offered Securities; and no such actions, suits or proceedings (including any inquiries
or investigations by any court or governmental agency or body, domestic or foreign) are, to
the Company’s knowledge, threatened.
9
(cc) Financial Statements. The financial statements included in the Registration
Statement and the General Disclosure Package present fairly in all material respects the
financial position of the Company and its consolidated subsidiaries as of the dates shown
and their results of operations and cash flows for the periods shown, and such financial
statements have been prepared in conformity with the generally accepted accounting
principles in the United States applied on a consistent basis and the schedules included in
the Registration Statement present fairly the information required to be stated therein.
(dd) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the latest audited financial
statements included in the General Disclosure Package (i) there has been no change, nor any
development or event involving a prospective change, in the condition (financial or
otherwise), results of operations, business or properties of the Company and its
subsidiaries, taken as a whole that is material and adverse, (ii) except as disclosed in or
contemplated by the General Disclosure Package, there has been no dividend or distribution
of any kind declared, paid or made by the Company on any class of its capital stock and
(iii) except as disclosed in or contemplated by the General Disclosure Package, there has
been no material adverse change in the capital stock, short-term indebtedness, long-term
indebtedness, net current assets or net assets of the Company and its subsidiaries taken as
a whole.
(ee) Investment Company Act. The Company is not, and after receipt of payment for the
Offered Securities and the application of the proceeds thereof as contemplated under the
caption “Use of Proceeds” in each of the Statutory Prospectus and the Final Prospectus will
not be, required to register as an “investment company” within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company Act”).
(ff) Ratings. No “nationally recognized statistical rating organization” as such term
is defined for purposes of Rule 436(g)(2) (i) has imposed (or has informed the Company that
it is considering imposing) any condition (financial or otherwise) on the Company’s
retaining any rating assigned to the Company or any securities of the Company or (ii) has
indicated to the Company that it is considering any of the actions described in Section
7(c)(ii) hereto.
(gg) No Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to
the knowledge of the Company, any director, officer, agent, employee or affiliate of the
Company or any of its subsidiaries is aware of or has taken any action, directly or
indirectly, that would result in a violation by such persons of the FCPA (as defined
below), including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA and the
Company, its subsidiaries and, to the knowledge of the Company, its affiliates have
conducted their businesses in compliance with the FCPA and have instituted and maintain
policies and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith. “FCPA” means Foreign Corrupt Practices Act of
1977, as amended, and the rules and regulations thereunder.
(hh) Compliance with Money Laundering Laws. 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
10
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.
(ii) Compliance with OFAC. Neither the Company nor any of its subsidiaries nor, to
the knowledge of the Company, any director, officer, agent, employee or affiliate of the
Company or any of its subsidiaries is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the
Company will not directly or indirectly use the proceeds of the offering, or lend,
contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity, for the purpose of financing the activities of any
person currently subject to any U.S. sanctions administered by OFAC.
3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the several Underwriters, and each of the Underwriters agrees, severally and not
jointly, to purchase from the Company, at a purchase price of — % of the principal amount
thereof plus accrued interest from to the First Closing Date (as hereinafter
defined) the respective principal amounts of Firm Securities set forth opposite the names of the
Underwriters in Schedule A hereto.
The Company will deliver the Firm Securities to or as instructed by the Representatives for
the accounts of the several Underwriters in a form reasonably acceptable to the Representatives
against payment of the purchase price by the Underwriters in Federal (same day) funds by wire
transfer to an account at a bank acceptable to Credit Suisse drawn to the order of ADC
Telecommunications, Inc. at the office of Xxxxx Xxxx & Xxxxxxxx, 0000 Xx Xxxxxx Xxxx, Xxxxx Xxxx,
XX 00000, at 10:00 A.M., New York time, on , or at such other time not
later than seven full business days thereafter as the Representatives and the Company determine,
such time being herein referred to as the “First Closing Date”. For purposes of Rule 15c6-1 under
the Exchange Act, the First Closing Date (if later than the otherwise applicable settlement date)
shall be the settlement date for payment of funds and delivery of securities for all the Offered
Securities sold pursuant to the offering. The Firm Securities so to be delivered or evidence of
their issuance will be made available for checking at the above office of Xxxxx Xxxx & Xxxxxxxx at
least 24 hours prior to the First Closing Date.
In addition, upon written notice from the Representatives given to the Company from time to
time not more than 30 days subsequent to the date of the Final Prospectus, the Underwriters may
purchase all or less than all of the Optional Securities at the purchase price per principal amount
of Securities (including any accrued interest thereon to the related Optional Closing Date) to be
paid for the Firm Securities. The Company agrees to sell to the Underwriters the principal amount
of Optional Securities specified in such notice and the Underwriters agree, severally and not
jointly, to purchase such Optional Securities. Such Optional Securities shall be purchased for the
account of each Underwriter in the same proportion as the principal amount of Firm Securities set
forth opposite such Underwriter’s name bears to the total—principal amount of Firm Securities
(subject to adjustment by the Representatives to eliminate fractions) and may be purchased by the
Underwriters only for the purpose of covering over-allotments made in connection with the sale of
the Firm Securities. No Optional Securities shall be sold or delivered unless the Firm Securities
previously have been, or simultaneously are, sold and delivered. The right to purchase the Optional
Securities or any portion thereof may be exercised from time to time and to the extent not
previously exercised may be surrendered and terminated at any time upon notice by the
Representatives to the Company.
Each time for the delivery of and payment for the Optional Securities, being herein referred
to as an “Optional Closing Date”, which may be the First Closing Date (the First Closing Date and
each Optional Closing Date, if any, being sometimes referred to as a “Closing Date”), shall be
determined by the Representatives but shall be not later than five full business days after written
notice of election to purchase Optional Securities is given. The Company will deliver the Optional
Securities being purchased
11
on each Optional Closing Date to or as instructed by the Representatives for the accounts of
the several Underwriters in a form reasonably acceptable to the Representatives against payment of
the purchase price therefor in Federal (same day) funds by wire transfer to an account at a bank
acceptable to the Representatives drawn to the order of ADC Telecommunications, Inc., at the above
office of Xxxxx Xxxx & Xxxxxxxx. The Optional Securities being purchased on each
Optional Closing Date or evidence of their issuance will be made available for checking at the
above office of Xxxxx Xxxx & Xxxxxxxx at a reasonable time in advance of such Optional Closing
Date.
4. Offering by Underwriters. It is understood that the several Underwriters propose to offer
the Offered Securities for sale to the public as set forth in the Final Prospectus.
5. Certain Agreements of the Company. The Company agrees with the several Underwriters that:
(a) Filing of Prospectuses. The Company has filed or will file each Statutory
Prospectus (including the Final Prospectus) pursuant to and in accordance with
Rule 424(b)(2) (or, if applicable and consented to by the Representatives subparagraph (5))
not later than the second business day following the earlier of the date it is first used
or the execution and delivery of this Agreement. The Company has complied and will comply
with Rule 433.
(b) Filing of Amendments; Response to Commission Requests. The Company will promptly
advise the Representatives of any proposal to amend or supplement the Registration
Statement or any Statutory Prospectus at any time and will offer the Representatives a
reasonable opportunity to comment on any such amendment or supplement; and the Company will
also advise the Representatives promptly of (i) the filing of any such amendment or
supplement, (ii) any request by the Commission or its staff for any amendment to the
Registration Statement, for any supplement to any Statutory Prospectus or for any
additional information, (iii) the institution by the Commission of any stop order
proceedings in respect of the Registration Statement or the threatening of any proceeding
for that purpose, and (iv) the receipt by the Company of any notification with respect to
the suspension of the qualification of the Offered Securities in any jurisdiction or the
institution or threatening of any proceedings for such purpose. The Company will use its
best efforts to prevent the issuance of any such stop order or the suspension of any such
qualification and, if issued, to obtain as soon as possible the withdrawal thereof.
(c) Continued Compliance with Securities Laws. If, at any time when a prospectus
relating to the Offered Securities is (or but for the exemption in Rule 172 would be)
required to be delivered under the Act by any Underwriter or dealer, any event occurs as a
result of which the Final Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading, or if it is necessary at any time to amend the Registration Statement or
supplement the Final Prospectus to comply with the Act, the Company will promptly notify
the Representatives of such event and will promptly prepare and file with the Commission
and furnish, at its own expense, to the Underwriters and the dealers and any other dealers
upon request of the Representatives, an amendment or supplement which will correct such
statement or omission or an amendment which will effect such compliance. Neither the
Representatives’ consent to, nor the Underwriters’ delivery of, any such amendment or
supplement shall constitute a waiver of any of the conditions set forth in Section 7
hereof.
(d) Rule 158. As soon as practicable, but not later than 16 months, after the date
of this Agreement, the Company will make generally available to its securityholders an
earnings statement covering a period of at least 12 months beginning after the date of this
Agreement and satisfying the provisions of Section 11(a) of the Act and Rule 158.
12
(e) Furnishing of Prospectuses. The Company will furnish to the Representatives
copies of the Registration Statement, including all exhibits, any Statutory Prospectus, the
Final Prospectus and all amendments and supplements to such documents, in each case as soon
as available and in such quantities as the Representatives reasonably request. The
Company will pay the expenses of printing and distributing to the Underwriters all such
documents.
(f) Blue Sky Qualifications. The Company will cooperate with the Underwriters, to
qualify the Offered Securities for offering and sale under the applicable securities laws
of such states and other jurisdictions (domestic or foreign) as the Representatives may
designate and to maintain such qualifications in effect for as long as may be necessary to
complete the distribution of the Offered Securities; provided, however, that the Company
shall not be obligated to file any general consent to service of process or to qualify as a
foreign corporation or as a broker or dealer in securities in any jurisdiction in which it
is not so qualified or to subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject.
(g) Reporting Requirements. During the period of three years hereafter, the Company
will furnish to the Representatives and, upon request, to each of the other Underwriters,
as soon as practicable after the end of each fiscal year, a copy of its annual report to
stockholders for such year; and the Company will furnish to the Representatives (i) as soon
as available, a copy of each report and any definitive proxy statement of the Company filed
with the Commission under the Exchange Act or mailed to stockholders, and (ii) from time to
time, such other information concerning the Company as the Representatives may reasonably
request. However, so long as the Company is subject to the reporting requirements of
either Section 13 or Section 15(d) of the Exchange Act and is timely filing reports with
the Commission on its Electronic Data Gathering, Analysis and Retrieval system (“XXXXX”),
it is not required to furnish such reports or statements to the Underwriters.
(h) Payment of Expenses. The Company will pay all expenses incident to the
performance of its obligations under this Agreement, including but not limited to any
filing fees and other expenses (including fees and disbursements of counsel to the
Underwriters) incurred in connection with qualification of the Offered Securities for sale
under the laws of such jurisdictions as the Representatives designate and the preparation
and printing of memoranda relating thereto, any fees charged by investment rating agencies
for the rating of the Offered Securities, costs and expenses relating to investor
presentations or any “road show” in connection with the offering and sale of the Offered
Securities including, without limitation, any travel expenses of the Company’s officers and
employees and any other expenses of the Company including the chartering of airplanes, fees
and expenses incident to listing the Underlying Shares on the NASDAQ Global Select Market,
fees and expenses in connection with the registration of the Offered Securities under the
Exchange Act, and expenses incurred in distributing preliminary prospectuses and the Final
Prospectus (including any amendments and supplements thereto) to the Underwriters and for
expenses incurred for preparing, printing and distributing any Issuer Free Writing
Prospectuses to investors or prospective investors. Except as provided in this Agreement,
including, without limitation, Section 5, Section 8 and Section 10 hereof, the Underwriters
shall pay their own expenses, including the fees and disbursements of their counsel.
(i) Use of Proceeds. The Company will use the net proceeds received in connection
with this offering in the manner described in the “Use of Proceeds” section of the General
Disclosure Package and the Final Prospectus and, except as disclosed in the General
Disclosure Package and the Final Prospectus, the Company does not intend to use any of the
proceeds from the sale of the Offered Securities hereunder to repay any outstanding debt
owed to any affiliate of any Underwriter.
(j) Absence of Manipulation. 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,
13
stabilization or manipulation of the price of any securities of the Company to
facilitate the sale or resale of the Offered Securities provided, however, that this
paragraph shall not apply to any stabilization activities conducted by the Underwriters.
(k) Restriction on Sale of Securities. For the 90-day period immediately following
the date hereof (the “Lock-Up Period”), the Company will not, directly or indirectly, take
any of the following actions with respect to any securities of the Company substantially
similar to the Offered Securities, the Company’s common stock or any securities convertible
into or exchangeable or exercisable for any of its Common Stock (“Lock-Up Securities”):
(i) offer, sell, issue, contract to sell, pledge or otherwise dispose of Lock-Up
Securities, (ii) offer, sell, issue, contract to sell, contract to purchase or grant any
option, right or warrant to purchase Lock-Up Securities, (iii) enter into any swap, hedge
or any other agreement that transfers, in whole or in part, the economic consequences of
ownership of Lock-Up Securities, (iv) establish or increase a put equivalent position or
liquidate or decrease a call equivalent position in Lock-Up Securities within the meaning
of Section 16 of the Exchange Act or (v) file with the Commission a registration statement
under the Act (except for a registration statement on Form S-8 with respect to plans in
effect on the date hereof and disclosed in the General Disclosure Package) relating to
Lock-Up Securities, or publicly disclose the intention to take any such action, without the
prior written consent of the Representatives, provided, however, that the foregoing shall
not apply to (A) the issuance and sale of the Securities under this Agreement or the
issuance of the Underlying Shares, (B) the grant of options or other equity-based awards
for common stock pursuant to employee benefit plans (including, without limitation, any
stock option, stock bonus, stock purchase or other stock plan or arrangement) existing on
the date of this Agreement and disclosed in the General Disclosure Package, (C) the
issuance by the Company of shares of its common stock upon the exercise of an option or
warrant in the ordinary course of business or the conversion of a security outstanding on
the date of this Agreement or issued in accordance with clause (B), or (D) the issuance by
the Company of shares of its common stock, or options or warrants to purchase shares of its
common stock, in exchange for the assets of, or a controlling equity interest in, another
entity in connection with the acquisition by the Company of such entity, provided, with
respect to (D), that (i) no such issuance shall take place prior to the date that is 30
days after the date hereof, and (ii) prior to the issuance of such shares, options or
warrants, each recipient of such shares, options or warrants enters into a lock-up
agreement to be agreed to by the Representatives that is substantially similar to the
lock-up agreement attached as Annex A hereto.
(l) Available Shares. The Company will reserve and keep available at all times, free
of preemptive rights, shares of Common Stock for the purpose of enabling the Company to
satisfy any obligations to issue shares of its Common Stock upon conversion of the
Securities.
6. Free Writing Prospectuses. (a) Issuer Free Writing Prospectuses. The Company
represents and agrees that, unless it obtains the prior consent of the Representatives, and
each Underwriter represents and agrees that, unless it obtains the prior consent of the
Company and the Representatives, it has not made and will not make any offer relating to
the Offered 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 with the Commission. Any such free writing prospectus
consented to by the Company and the Representatives is hereinafter referred to as a “Permitted
Free Writing Prospectus.” The Company represents that it has treated and agrees that it
will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,”
as defined in Rule 433, and has complied and will comply with the requirements
of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus, including timely
Commission filing where required, legending and record keeping. The prior consent of the
Company and the Representatives shall be deemed to have been given in respect of the
Issuer Free Writing Prospectuses included in Schedule B hereto.
14
(b) Term Sheets. The Company will prepare a final term sheet relating to the Offered
Securities, containing only information that describes the final terms of the Offered
Securities and otherwise in a form consented to by the Representatives, and will file such
final term sheet within the period required by Rule 433(d)(5)(ii) following the date such
final terms have been established for all classes of the offering of the Offered
Securities. Any such final term sheet is an Issuer Free Writing Prospectus and a Permitted
Free Writing Prospectus for purposes of this Agreement. The Company also consents to the
use by any Underwriter of a free writing prospectus that contains only (i)(x) information
describing the preliminary terms of the Offered Securities or their offering or (y)
information that describes the final terms of the Offered Securities or their offering and
that is included in the final term sheet of the Company contemplated in the first sentence
of this subsection or (ii) other information that is not “issuer information,” as defined
in Rule 433, it being understood that any such free writing prospectus referred to in
clause (i) or (ii) above shall not be an Issuer Free Writing Prospectus for purposes of
this Agreement.
7. Conditions of the Obligations of the Underwriters. The obligations of the several
Underwriters to purchase and pay for the Firm Securities on the First Closing Date and the Optional
Securities to be purchased on each Optional Closing Date will be subject to the accuracy of the
representations and warranties of the Company herein (as though made on such Closing Date), to the
accuracy of the statements of Company officers made pursuant to the provisions hereof, to the
performance by the Company of its obligations hereunder and to the following additional conditions
precedent:
(a) Accountants’ Comfort Letter. The Representatives shall have received letters,
dated, respectively, the date hereof and each Closing Date, of Ernst & Young LLP
confirming that they are an independent registered public accounting firm within the
meaning of the Securities Laws and substantially in the form of Schedule C hereto (except
that, in any letter dated a Closing Date, the specified date referred to in Schedule C
hereto shall be a date no more than three days prior to such Closing Date).
(b) Filing of Prospectus. The Final Prospectus shall have been filed with the
Commission in accordance with the Rules and Regulations and Section 5(a) hereof. No stop
order suspending the effectiveness of the Registration Statement or of any part thereof
shall have been issued and no proceedings for that purpose shall have been instituted or,
to the knowledge of the Company or any Underwriter, shall be threatened by the Commission.
(c) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or event
involving a prospective change, in the condition (financial or otherwise), results of
operations, business or properties of the Company and its subsidiaries taken as a whole
which, in the judgment of the Representatives, is material and adverse and makes it
impractical or inadvisable to market the Offered Securities; (ii) any downgrading in the
rating of any debt securities of the Company by any “nationally recognized statistical
rating organization” (as defined for purposes of Rule 436(g)), or any public announcement
that any such organization has under surveillance or review its rating of any debt
securities of the Company (other than an announcement with positive implications of a
possible upgrading, and no implication of a possible downgrading, of such rating) or any
announcement that the Company has been placed on negative outlook; (iii) any change in
U.S. or international financial, political or economic conditions or currency exchange
rates or exchange controls the effect of which is such as to make it, in the judgment of
the Representatives, impractical to market or to enforce contracts for the sale of the
Offered Securities, whether in the primary market or in respect of dealings in the
secondary market; (iv) any suspension or material limitation of trading in securities
generally on the New York Stock Exchange, or any setting of minimum or maximum prices for
trading on such exchange; (v) or any suspension of trading of any securities of the Company
on any exchange or in the over-the-counter market; (vi) any banking moratorium declared by
any U.S. federal or New York authorities; (vii) any major disruption of settlements of
securities, payment, or clearance services in the United
15
States or any other country where such securities are listed or (viii) any attack on,
outbreak or escalation of hostilities or act of terrorism involving the United States, any
declaration of war by Congress or any other national or international calamity or emergency
if, in the judgment of the Representatives, the effect of any such attack, outbreak,
escalation, act, declaration, calamity or emergency is such as to make it impractical or
inadvisable to market the Offered Securities or to enforce contracts for the sale of the
Offered Securities.
(d) Opinion of Counsel for Company. The Representatives shall have received an
opinion, dated such Closing Date, of Xxxxxx & Xxxxxxx LLP, counsel for the Company,
substantially in the form of Schedule D.
(e) Opinion of Counsel for Underwriters. The Representatives shall have received
from Xxxxx Xxxx & Xxxxxxxx, counsel for the Underwriters, such opinion or opinions, dated
such Closing Date, with respect to such matters as the Representatives may 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.
(f) Officer’s Certificates. (i) The Representatives shall have received a
certificate, dated such Closing Date, of the Vice President and Secretary
of the Company, substantially in the form of Schedule E. (ii) The Representatives shall
have also received a certificate, dated such Closing Date, of an executive officer of the
Company and a principal financial or accounting officer of the Company in which such
officers shall state that: the representations and warranties of the Company in this
Agreement are true and correct; the Company has complied with all agreements and satisfied
all conditions on its part to be performed or satisfied hereunder at or prior to such
Closing Date; no stop order suspending the effectiveness of the Registration Statement has
been issued and no proceedings for that purpose have been instituted or, to their
knowledge, are threatened by the Commission; and, subsequent to the respective dates of the
most recent financial statements in the General Disclosure Package, there has been no
material adverse change, nor any development or event involving a prospective material
adverse change, in the condition (financial or otherwise), results of operations, business
or properties of the Company and its subsidiaries taken as a whole except as set forth in
the General Disclosure Package or as described in such certificate.
The Company will furnish the Representatives with such conformed copies of such opinions,
certificates, letters and documents as the Representatives reasonably request. The Representatives
may in their sole discretion waive on behalf of the Underwriters compliance with any conditions to
the obligations of the Underwriters hereunder, whether in respect of an Optional Closing Date or
otherwise.
8. Indemnification and Contribution. (a) Indemnification of Underwriters. The Company will
indemnify and hold harmless each Underwriter, its partners, members, directors, officers,
employees, agents, affiliates and each person, if any, who controls such Underwriter within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, an “Indemnified Party”),
against any and all losses, claims, damages or liabilities, joint or several, to which such
Indemnified Party may become subject, under the Act, the Exchange Act, other Federal or state
statutory law or regulation 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 any material fact contained in any part of the Registration Statement at any
time, any Statutory Prospectus as of any time, the Final Prospectus or any Issuer Free Writing
Prospectus, or arise out of or are based upon the omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not misleading, and will
reimburse each Indemnified Party for any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or defending against any loss, claim, damage,
liability, action, litigation, investigation or proceeding whatsoever (whether or not such
Indemnified Party is a party thereto), whether threatened or commenced, and in connection with the
enforcement of this provision with respect to any of the above as such expenses are incurred;
provided, however, that the Company will not be liable in any
16
such case to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement in or omission or alleged omission from
any of such documents in reliance upon and in conformity with written information furnished 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 any Underwriter consists of the
information described as such in subsection (b) below.
(b) Indemnification of Company. Each Underwriter will severally and not jointly indemnify
and hold harmless the Company, each of its directors and each of its officers who signs a
Registration Statement and each person, if any, who controls the Company within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act (each, an “Underwriter Indemnified Party”),
against any losses, claims, damages or liabilities to which such Underwriter Indemnified Party may
become subject, under the Act, the Exchange Act, other Federal or state statutory law or regulation
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 any
material fact contained in any part of the Registration Statement at any time, any Statutory
Prospectus as of any time, the Final Prospectus, or any Issuer Free Writing Prospectus, or arise
out of or are based upon the omission or the alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written information furnished
to the Company by such Underwriter through the Representatives specifically for use therein, and
will reimburse any legal or other expenses reasonably incurred by such Underwriter Indemnified
Party in connection with investigating or defending against any such loss, claim, damage,
liability, action, litigation, investigation or proceeding whatsoever (whether or not such
Underwriter Indemnified Party is a party thereto), whether threatened or commenced, based upon any
such untrue statement or omission, or any such alleged untrue statement or omission as such
expenses are incurred, it being understood and agreed that the only such information furnished by
any Underwriter consists of the following information in the Statutory Prospectus and the Final
Prospectus furnished on behalf of each Underwriter: the concession and reallowance disclosure
appearing in the fourth paragraph under the caption “Underwriting” and the information relating
to stabilizing transactions, syndicate covering transactions and
penalty bids contained in the eleventh paragraph under the caption “Underwriting.”
(c) Actions against Parties; Notification. Promptly after receipt by an indemnified party under
this Section 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 subsection (a) or (b) above,
notify the indemnifying party in writing of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve it from any liability that it may have under subsection (a) or
(b) above except to the extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided further that the failure to notify
the indemnifying party shall not relieve it from any liability that it may have to an indemnified
party otherwise than under subsection (a) or (b) above. In case any such action is brought against
any indemnified party and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the indemnifying
party will not be liable to such indemnified party under this Section for any legal or other
expenses subsequently incurred by such indemnified party in connection with the defense thereof
other than reasonable costs of investigation. 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 fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel with a conflict of
interest, (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
17
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 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. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened action in respect of which
any indemnified party is or could have been a party and indemnity could have been sought hereunder
by such indemnified party unless such settlement (i) includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter of such action and
(ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act
by or on behalf of an indemnified party.
(d) Contribution. If the indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then each
indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above
(i) in such proportion as is appropriate to reflect the relative benefits received by the Company
on the one hand and the Underwriters on the other from the offering of the Offered Securities or
(ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company on the one hand and the Underwriters on the
other in connection with the statements or omissions which resulted in such losses, claims, damages
or liabilities as well as any other relevant equitable considerations. The relative benefits
received by the Company on the one hand and the Underwriters on the other shall be deemed to be in
the same proportion as the total net proceeds from the offering (before deducting expenses)
received by the Company bear to the total underwriting discounts received by the Underwriters. The
relative fault of the Company on the one hand and the Underwriters on the other shall be determined
by reference to, among other things, whether any such untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information
supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The amount
paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any action or claim which is the subject of this subsection (d). Notwithstanding the
provisions of this subsection (d), no Underwriter shall be required to contribute any amount in
excess of the amount by which the total price at which the Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any damages which such
Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d)
to contribute are several in proportion to their respective underwriting obligations and not joint.
The Company and the Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 8(d) were determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to in this Section 8(d).
9. Default of Underwriters. If any Underwriter or Underwriters default in their obligations
to purchase Offered Securities hereunder on either the First or any Optional Closing Date and the
aggregate principal amount of Offered Securities that such defaulting Underwriter or Underwriters
agreed but failed to purchase does not exceed 10% of the total principal amount of Offered
Securities that the Underwriters are obligated to purchase on such Closing Date, the
Representatives may make arrangements satisfactory to the Company for the purchase of such Offered
Securities by other persons, including any of the Underwriters, but if no such arrangements are
made by such Closing Date, the non-defaulting Underwriters shall be obligated severally, in
proportion to their respective commitments hereunder, to purchase the
18
Offered Securities that such defaulting Underwriters agreed but failed to purchase on such
Closing Date. If any Underwriter or Underwriters so default and the aggregate principal amount of
Offered Securities with respect to which such default or defaults occur exceeds 10% of the total
principal amount of Offered Securities that the Underwriters are obligated to purchase on such
Closing Date and arrangements satisfactory to the Representatives and the Company for the purchase
of such Offered Securities by other persons are not made within 36 hours after such default, this
Agreement will terminate without liability on the part of any non-defaulting Underwriter or the
Company, except as provided in Section 10 (provided that if such default occurs with respect to
Optional Securities after the First Closing Date, this Agreement will not terminate as to the Firm
Securities or any Optional Securities purchased prior to such termination). As used in this
Agreement, the term “Underwriter” includes any person substituted for an Underwriter under this
Section. Nothing herein will relieve a defaulting Underwriter from liability for its default.
10. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or its officers and of
the several Underwriters set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation, or statement as to the results thereof, made by or on
behalf of any Underwriter, the Company or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment for the Offered
Securities. If the purchase of the Offered Securities by the Underwriters is not consummated for
any reason other than solely because of the termination of this Agreement pursuant to Section 9
hereof, the Company will reimburse the Underwriters for all out-of-pocket expenses (including fees
and disbursements of counsel) reasonably incurred by them in connection with the offering of the
Offered Securities, and the respective obligations of the Company and the Underwriters pursuant to
Section 8 hereof shall remain in effect. In addition, if any Offered Securities have been
purchased hereunder, the representations and warranties in Section 2 and all obligations under
Section 5 shall also remain in effect.
11. Notices. All communications hereunder will be in writing and, if sent to the
Underwriters, will be mailed, delivered or telegraphed and confirmed to the Representatives: c/o
Credit Suisse Securities (USA) LLC, Xxxxxx Xxxxxxx Xxxxxx, Xxx Xxxx, X.X. 10010-3629, Attention:
LCD-IBD and c/o Morgan Xxxxxxx & Co. Incorporated, 0000 Xxxxxxxx, Xxx Xxxx, XX 00000, Attention:
Legal Department, or, if sent to the Company, will be mailed, delivered or telegraphed and
confirmed to it at 00000 Xxxxxxxxxx Xxxxx, Xxxx Xxxxxx, XX 00000-0000, Attention: General Counsel;
provided, however, that any notice to an Underwriter pursuant to Section 8 will be mailed,
delivered or telegraphed and confirmed to such Underwriter.
12. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers and directors and controlling persons
referred to in Section 8, and no other person will have any right or obligation hereunder.
13. Representation of Underwriters. The Representatives will act for the several
Underwriters in connection with this financing, and any action under this Agreement taken by the
Representatives jointly or by Credit Suisse will be binding upon all the Underwriters.
14. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all such counterparts shall together constitute one
and the same Agreement.
15. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) No Other Relationship. The Representatives have been retained solely to act as
underwriters in connection with the sale of Offered Securities and that no fiduciary, advisory or
agency relationship between the Company and the Representatives has been created in respect of any
of the
19
transactions contemplated by this Agreement or the Final Prospectus, irrespective of whether
any Representative has advised or is advising the Company on other matters;
(b) Arms’ Length Negotiations. The price of the Offered Securities set forth in this
Agreement was established by the Company following discussions and arms’-length negotiations with
the Representatives and the Company is capable of evaluating and understanding and understands and
accepts the terms, risks and conditions of the transactions contemplated by this Agreement;
(c) Absence of Obligation to Disclose. The Company has been advised that the Representatives
and their affiliates are engaged in a broad range of transactions which may involve interests that
differ from those of the Company and that the Representatives have no obligation to disclose such
interests and transactions to the Company by virtue of any fiduciary, advisory or agency
relationship; and
(d) Waiver. The Company waives, to the fullest extent permitted by law, any claims it may
have against the Representatives for breach of fiduciary duty or alleged breach of fiduciary duty
in connection with transactions described herein and the process leading thereto and agrees that
the Representatives shall have no liability (whether direct or indirect) to the Company in respect
of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in
right of the Company, including stockholders, employees or creditors of the Company.
16. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
The Company hereby submits to the non-exclusive jurisdiction of the Federal and state courts
in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby. The Company irrevocably and
unconditionally waives any objection to the laying of venue of any suit or proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby in Federal and state
courts in the Borough of Manhattan in The City of New York and irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such suit or proceeding in any
such court has been brought in an inconvenient forum.
20
If the foregoing is in accordance with the Representatives’ understanding of our agreement,
kindly sign and return to the Company one of the counterparts hereof, whereupon it will become a
binding agreement between the Company and the several Underwriters in accordance with its terms.
Very truly yours,
| ADC Telecommunications, Inc. | ||||||
| By: | ||||||
| Title: | ||||||
The foregoing Underwriting Agreement is hereby
confirmed and accepted as of the date first
above written. |
||||||
| Credit Suisse Securities (USA) LLC | ||||||
| By: | ||||||
| Title: | ||||||
| Xxxxxx Xxxxxxx & Co. Incorporated | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
Acting on behalf of themselves
and as the Representatives of
the several Underwriters.
|
||||||
SCHEDULE A
| Principal | ||||||||
| Amount of Firm Securities | ||||||||
Underwriter |
2015 Notes | 2017 Notes | ||||||
Credit Suisse Securities (USA) LLC
|
$ | $ | ||||||
Xxxxxx Xxxxxxx & Co. Incorporated |
||||||||
X.X. Xxxxxx Securities Inc. |
||||||||
Bear, Xxxxxxx & Co. Inc. |
||||||||
Total
|
$ | 200,000,000 | $ | 200,000,000 | ||||
SCHEDULE B
1. General Use Issuer Free Writing Prospectuses (included in the General Disclosure Package)
“General Use Issuer Free Writing Prospectus” includes each of the following documents:
1. Final
term sheet, dated
,
a copy of which is attached hereto.
2. Other Information Included in the General Disclosure Package
The following information is also included in the General Disclosure Package:
None.
SCHEDULE C
[Form of Ernst & Young Comfort Letter]
SCHEDULE D
[Form of Company Counsel Opinion]
SCHEDULE E
[Form
of Officer’s Certificate]
ANNEX A
[Form of Lock-up Agreement]
Credit Suisse Securities (USA) LLC
Xxxxxx Xxxxxxx & Co. Incorporated
As Representatives of the Several Underwriters
to be party to the Underwriting Agreement
to be party to the Underwriting Agreement
c/o
|
Credit Suisse Securities (USA) LLC | |
| Xxxxxx Xxxxxxx Xxxxxx | ||
| New York, NY 10010-3629 | ||
| Xxxxxx Xxxxxxx & Co. Incorporated | ||
| 0000 Xxxxxxxx | ||
| New York, NY 10036 |
Dear Sirs:
The undersigned understands that Credit Suisse Securities (USA) LLC (“Credit Suisse”) and
Xxxxxx Xxxxxxx & Co. Incorporated (“Xxxxxx Xxxxxxx”) propose to enter into an Underwriting
Agreement (the “Underwriting Agreement”) with ADC Telecommunications, Inc., a Minnesota corporation
(together with any successor (by merger or otherwise) thereto, the “Company”), providing for the
public offering (the “Offering”) by the several Underwriters named in Schedule A to the
Underwriting Agreement, including Credit Suisse and Xxxxxx Xxxxxxx (the “Underwriters”), of
Convertible Subordinated Notes due 2012 and Convertible Subordinated Notes due 2015 (collectively,
the “Securities”). As an inducement to the Underwriters to execute the Underwriting Agreement, the
undersigned hereby agrees that during the period specified in the following paragraph (the “Lock-Up
Period”), the undersigned will not offer, sell, contract to sell, pledge or otherwise dispose of,
directly or indirectly, any shares of common stock, par value $0.20 per share, of the Company (the
“Common Stock”) or securities convertible into or exchangeable or exercisable for any shares of
Common Stock, enter into a transaction that would have the same effect, or enter into any swap,
hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of
ownership of the Common Stock or such other securities, whether any such aforementioned transaction
is to be settled by delivery of the Common Stock or such other securities, in cash or otherwise, or
publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter
into any such transaction, swap, hedge or other arrangement, without, in each case, the prior
written consent of Credit Suisse and Xxxxxx Xxxxxxx on behalf of the Underwriters. In addition,
the undersigned agrees that, without the prior written consent of Credit Suisse and Xxxxxx Xxxxxxx
on behalf of the Underwriters, it will not, during the Lock-Up Period, make any demand for or
exercise any right with respect to, the registration of any Common Stock or any security
convertible into or exercisable or exchangeable for Common Stock.
The Lock-Up Period will commence on the date of this Agreement and continue through the close
of trading on the date 60 days after the public offering date set forth on the final prospectus
used to sell the Securities pursuant to the Underwriting Agreement.
Any Common Stock received upon exercise of options granted to the undersigned will also be
subject to this Agreement.
This Agreement shall not apply to: (a) transactions relating to shares of Common Stock
acquired in open market transactions after the completion of the Offering, so long as such
transactions that are sales are not required to be reported or are voluntarily reported under
Section 16(a) of the Securities Exchange Act of 1934, as amended, during the Lock-Up Period, (b)
bona fide gifts to charities not in excess of an aggregate of
500 shares of Common Stock for all such gifts by the undersigned, (c) other bona fide gifts,
provided that the recipient thereof agrees in writing to be bound by the terms of this Agreement,
(d) dispositions of Common Stock to a family member or to a trust, provided the transferee agrees
in writing to be bound by the terms of this Agreement prior to such transfer, (e) dispositions to
any beneficiary of the undersigned pursuant to a will or other testamentary document or applicable
laws of descent, provided the recipient agrees in writing to be bound by the terms of this
Agreement; or (f) other dispositions of Common Stock not in excess of an aggregate of 75,000 shares
of Common Stock. Further, this Agreement shall in no way be interpreted to prohibit or in any way
limit the undersigned from entering into a Rule 10b5-1 selling plan, provided that the undersigned
does not sell or otherwise dispose of Common Stock (whether in connection with the exercise of
stock options or otherwise) pursuant to such Rule 10b5-1 selling plan during the Lock-Up Period.
In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby
authorized to decline to make any transfer of shares of Common Stock or securities convertible into
or exercisable for Common Stock if such transfer would constitute a violation or breach of this
Agreement.
This Agreement shall be binding on the undersigned and the successors, heirs, personal
representatives and assigns of the undersigned. This Agreement shall lapse and become null and
void if (i) the Underwriting Agreement between you and the Company relating to the Offering has not
been executed and delivered and (a) the Company notifies you in writing that it does not intend to
proceed with the Offering, (b) the registration statement filed with the Securities and Exchange
Commission with respect to the Offering is withdrawn, or (c) the final prospectus used to sell the
Securities shall not have been filed on or before March 31, 2008 or (ii) for any reason, the
Underwriting Agreement between you and the Company relating to the Offering is terminated prior to
the Closing Date (as defined in the Underwriting Agreement). This agreement shall be governed by,
and construed in accordance with, the laws of the State of New York.
| Very truly yours, | ||||
